Friday, February 18, 2011

Debt Problems?

Here's some useful info about debt that you probably didn't know about. Let's say you're $10,000 in debt, and you don't know how to get rid of it. Your job sucks, you're stressed about everything, and the last thing you need is to accrue more debt. There's a simple way to get rid of it over time that's as easy as pie.



DON'T PAY IT.


See, there's this thing called the statute of limitations. Basically it limits the time frame in which legal action can be taken. Say for example, you happen to fight some guy back in high school and messed him up pretty badly. He can't come before you 30 years later and threaten to sue you or bring you to court. All legal action will expire within a certain time frame. This also works the same for debt. Let's say you lent $10.00 to a friend in middle school, and 30 years later he knocks on your door asking you where that $10.00 is. Ridiculous right? Ok. Going back to $10,000 in debt, all you have to do is figure out your states statute of limitations on debt collections. (*will post a link at the bottom for that) Creditors will only hassle you for a few months of delinquent payments before they throw the towel in and sell your debts off to a collections agency for pennies on the dollar. Creditors see that they can't get you to pay them, so they'll get what they can out of third party collectors. So at that point, it's just you and the collection agency. Of course, they hassle the hell out of you, calling your cell, calling your work, sending you mail, but don't respond to anything. The moment you admit or pay anything to these collectors, your statute of limitations goes back to square one. So the most important thing here is to not say a thing. 

Let's say your statute of limitations is 4 years and it's already been 5 years since your last  payment or obligation to your creditor. You're done! They can't hassle you anymore, and best of all, you don't owe anyone anything! If at this point, a collector still tries to get money out of you, all you have to do is state that they've reached the statute of limitations and they have no right to collect the alleged funds from you and if they continue to hassle you press charges, or something like that. Now, you have no hassle! It's a pretty simple process. Get debt, don't pay, wait for statute of limitation to expire, no more debt. Amazing huh? This is great especially for people who are thousands of dollars in debt. After everything expires, you're on your way to building back your credit. How many times have you heard your friends tell you about how much debt they're in? Just tell them this, and they'll be on their way to a debt free life. 


the link to state statute of limitations:

25 comments:

  1. the statue of limitations saved my ass

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  2. I wonder why this isn't more widely publicized around debt circles?

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  3. great advice, going to check out how long it takes here in austria

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  4. Daaamn I gotta do this. Free money if you're good at dodging creditors.

    Great blog by the way, this post really made me smile.

    Followed.

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  5. Wow, this is a very informative post. I had know idea that the statute of limitations could be so short. I assumed it would take 50+ years for something like that. I'm going tell this to my sister.

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  6. you forgot something. while this may be valid for small debts, and its likely if you have small debts that they are really not that much of a concern. However, if you owe $30000 its likely that a creditor will obtain a judgment to garnish your wage or freeze assets or your bank account. when this occurs the statute of limitations may be extended till they receive their balance and your credit reflects all that. Not to mention you're S.O.L.
    Be careful and make sure you ensure to take this into consideration before you tell your creditors to eat a dick. if you have taken it into consideration and covered your bases on the other hand, go for it. And feel free to enjoy your moment :)

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  7. Debt free wince 2006...it's the only way to live!

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  8. This only applies to nonsecure debt tho... if it were secure, all they had to do is put a lean on any of your property.

    This is only if you have an extensive loan...

    Either way, if you are in this situation, dont get sued before the times up.

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  9. Ha, I did this once with a couple thousand dollars I owed to an apartment complex. Seven years have passed, and it's no longer on my credit report! =D

    Other commenters have had very valid points though.

    I have to agree with LifeHacks, living debt-free is great!

    I just started a new daily blog, you should check it out!
    technicolortypecastdaily.blogspot.com

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  10. Hmmmm I dont think debt could go away just like that...

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  11. @Major.Mack

    yeah thats right. it was a hypothetical figure, $30,000. $10,000 would be more correct. At around $30k creditors will set bank levies and file lawsuits, but there are still ways out if it. the system always has loopholes.

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  12. @metalpark_73189

    if you look into it more extensively, you'll see that it can.

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  13. I learned about this in my business law class. Thanks for posting!

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  14. brb taking out loans and moving out of country only to return 30 years later :D

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  15. this thing works outside the US? for example... Mexico? because i know someone who its in that situation and if it works here as well im sure going to tell her that

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  16. @tony

    not sure man, ill have to check that out myself.

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  17. My mom had to file bankruptcy last year. :c Wasn't fun.

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  18. yeah, bankruptcy is not fun at all. but at least you have another shot at it. my mom was pretty far in the hole and had to do that too. hard times

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  19. wow, brilliant stuff. i should show this to the people i know in debt...
    followed!

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  20. if i ever get into debt, ill follow this advice.

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  21. i cant wait to do this with my student loans

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  22. Don't most companies take legal action before the statute of limitations is up? Well this is still really useful information. Thanks bro.

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  23. Informative :D

    Check out my blog at http://thinkfeed.info

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