Debt collection is one of the worst financial positions to keep up with, which is why it’s one of the biggest things people avoid. However, there are laws on the books that can not only help protect you from unfair practices but possibly avoid paying what’s owed in full altogether.
As there are certain rules for when a lender is allowed to report a debt versus when the lendee admits it’s theirs, there are strategies you can use to alleviate your debt payments, as well as avoid getting duped into being liable for debts from years ago. That’s why we’ve compiled a few helpful tips to consider below:
What Do You Need To Pay Off?
The first question you need to ask yourself is what exactly needs to be paid off. Depending on your state’s laws, sometimes debt claims aren’t valid without the proper steps and documentation. For example, if a small debt got bought by a debt collector almost five years after your last payment, you run the chance of having it forgiven (as long as you don’t answer/contact them about the debt). Although a tricky balance, there are certain debt collectors that try to be sneaky or circumnavigate the law, which you should use to your advantage to get ahead on paying off what you owe.
How Long Has The Debt Existed?
As we noted above, the ability to collect on a debt can expire. Depending on the steps a collector took versus when/if you admitted to owing or not, your debt could possibly have expired by now. While it might sound harsh, if nonpayment won’t affect your credit score, does it really matter what threats a debt collector expels? Take the time to study the statute of limitations for debt in your state, as this could save you quite a bit of money in the long run.