melodicart
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On the Suze Orman show (she's a professional financial advisor) she said that the debt is erased after 7 years if you make no payments and do not make a promise to pay. |
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Studly
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Geez, so many terrible answers!
The truth is...yes, no, sometimes, sort of, not always,.......
LOL...it all depends on certain conditions. Read the link below please, and ignore the nonsense in the previous replies.
What you are dealing with is two issues. The reporting period of the credit reporting agencies, and the your legal obligetion to pay according to your states Statute of Limitation laws (SOL).
For credit reporting, the report lasts for 7 years, starting with the day you defaulted on the loan. It's NOT the last transaction date as reported by many responders here. I will be happy to point out exactly in the law where it says that. Look at the Fair Credit Reporting Act.
Many times, a creditor may try to change this date, and bump up the reporting period. It's illegal, and if you can prove it you can easily file a small claims suit and get $1000 rewarded to you for violation of the FCRA. I'm doing that right now, and it's fairly easy.
Now, regarding the SOL....each state has a certain time period. Michigan, for example, is 6 years. The starting time for this is the day of default. However, if you are not extremely carefull, you could "restart the clock" if you make a payment on the debt. This is a little trick called "reaffirmation" of the debt. But I'm finding many cases where consumers have fought this in court and won. But to play it safe, don't offer or pay any past due debts.
Once the SOL has run out, you no longer have an obligatio to pay the debt. If they sue you, you simply invoke the SOL defense and the judge will dismiss the case immediately.
However, you this does NOT remove your obligation to pay the debt, nor the right of the creditor to try and collect. It just means you don't legally have to pay it. So the collector can still pester you forever, if they want.
Read the link below, it's all there. Good luck. |
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fedelca
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The debt is not erased but the statute of limitations may run out which means they cannot force you to pay or foreclose any assets. Your bad credit history will remain though. |
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margaretswett@sbcglobal.net
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Believe me it won't. Creditors will continue to seek payment and will occupy their every hour trying to make contact and commitment from you. It is not until you actually do something such as bankruptcy that they are legally required to stop harassing and at that point 7 years after the bankruptcy everything is gone. But until then you will have really bad credit. |
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WindowLicker
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the debt remains. Your credit report just won't reflect the default. |
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tinytracy1
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The best way to find that out is to get a yearly credit report. Also if you apply for anything that you need credit for if you get denied you can look at the report and see what is on there and stoppping you from getting credit or why you have a bad credit report. |
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tree8588
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Maybe if you can keep the credit card companies from filing criminal charges against you, which they most likely will do if you don't pay. You may be the one in 10 million that sneaks by. Pretty bad odds |
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Trader
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No. The truth is that any marks on your credit report can last 7 years. IF you file bankruptcy, or have an account closed and sent to collection, they could last up to 10 years.
Your credit is not something you want to mess with. It could have an effect on your job, on your car insurance, and many future events. Take care of your credit. |
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amosunknown
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they will hound you, as your debt becomes sold and resold to different collection agencies who will threaten, dog and otherwise nag you to pay back the money you owe, you will eventually be hauled off to court when you refuse to pay where you will have to either pay fines, go to jail, or have your finances reviewed and take the option to file for bankrupcy. they have changed the laws on filing though, i dont believe you can as easily as before. |
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Rappel_Welch
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No, it is not necessarily the case. Your credit card debt can be reattached to your credit record at the discretion of the debtor. Also, depending upon the debtor type, your debt can be sold and/or transfered, in which case a new debtor or a collection agency can attach to your credit report. You can't get away with much when it comes to avoiding your debt. If you are having problems paying off credit cards, go to a credit counsellor, and have them attempt to refinance or pay off your current debt. |
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cent188
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Yes.....But it starts from the last date the company receives your payment. Not from the date you open the account. Once you make another payment on the account the cycle starts all over again. |
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chuck_jax
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Not true. Credit companies are buying and selling bad debt and re-issuing the dates. It can run much longer this way. |
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deanna
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Susan Whatsit is an idiot. If you don't pay your credit cards they will compound the interest making your debt even higher. Then they will seek a judgement against you to garnish your wages, take your tax returns and make sure it's all reported on your credit. Without credit you can't buy a car or house. Even if you should be able to get away with it somehow without them taking 1/3 of every paycheck from you, if you ever do want to buy a house that debt will have to be settled before you will ever be considered for a home loan. Like I said, she's wrong. |
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dodgeman84401
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NO WAY!! |
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krash2_4
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No. The negatives on your credit report stop showing up on all resolved defaults. If you don't stop paying, you are in default until it is paid (or settled in court). Seven years from that date, it will no longer appear on your credit report. |
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misspage75@sbcglobal.net
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baby don't believe that i am a living witness, because i am 31 years old and i am still Dealing with it. so pay your credit card bills or pay them off and cut them up. |
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THE HALO MASTER!
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no, i do not think so |
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antiqueyouth
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Doubtful, I'm pretty sure even if you never pay those, your kids will end up having to pay them. The more you put it off, the more interest fees you wind up with... |
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rhiannoncallisto
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no not really, but it will affect your credit score even if you don't pay it off. Don't forget a credit card is not free money. Someone else is extending their money to use and you have to agree to pay it back as per what the agreement is from the credit lender. If you don't pay it is still a debt and therefore affects your future ability to get more credit. Which means no mortgage, no car leases etc. Same with if you default on any kind of loan or similar money lending issue.
You would then need to get one of those "secured" credit cards to rebuild your credit. Which means you pay a security deposit to a lender which allows them to extend you credit for that amount and you MUST pay that or else you lose the privilege of the use of that card and will not be able to receive credit elsewhere. |
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scorpion
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in a couple of years they will be like, hey if you pay half we will forget the rest, but your credit will be shot for a very long time |
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farrahann2727
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i wish that that is true |
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talithamayfield
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no way. Nice thought though |
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