Don't Reactivate That Debt!

Have you ever gotten into a debt that you did not pay for a long amount of time and it became delinquent?

Well, if you did you need to get educated on your responsibilities pertaining to that debt. When you get contacted by a company over phone about a debt you had in the past it is natural to assume that debt is still valid. As you talk on the phone with the debt collector you might even be shocked to learn that they will let you repay the debt at only $25 a month or $100 a month. However, what that debt collector is not going to tell you is that by submitting your payment of $25 to the debt collection agency you may be reactivating the statute of limitations on the debt!

The statute of limitations is the maximum amount of time after an event within which legal proceedings may be initiated. In other words, it is entirely possible that the alleged debt the debt collector is trying to get you to pay is completely legally unenforceable! However, if you did send that $25 payment now the debt is legally enforceable because you just reactivated the statute of limitations. The debt collector is also not going to tell you over the phone that they bought your debt for pennies on the dollar and are trying to collect on a debt that you never originally even had with them.