DEBT MANAGEMENT

The statute of limitations on debt is there as a protective measure for you. It may be one of the only things that I can think of that the government has done in the interest of fairness to the consumer. It certainly would not be fair for a lender of credit card company to sit around and not enforce collection action at the time the debt incurred, and then, thirty years later, come knocking on your door with brass knuckles. A person should not have to live a life of anxious stress, wringing their hands, harboring a worry about an old debt for the next 60 or 70 years. Imagine if your best friend from sixth grade showed up and started putting the squeeze on you for the $10 you borrowed at the movies many years ago. My reaction would most likely be, “Are you nuts?” Allowing debt collectors to come after you forever would be nuts too, which is why the statute of limitations exists to create an expiration date.

Sometimes creditors ignore the expiration date, and may decide to sue you for an old debt even if the statute of limitations has run out. Don’t worry! All you have to do is go the judge and request that the case be dismissed because the statute of limitations has run out. That is why the financial lending industry does not want you to know what they are up to! If you know their dirty secrets, you will be able to escape their grimy grasp. In fact, very often the creditor or collection agency will contact you near the end of the statute period. They know that time is ticking so they get very adamant with you, saying that unless you pay right away; you’ll be slammed with a lawsuit. They hope the fear factor works; they want to get a buck out of you before the hourglass runs out.