Statute of Limitation is Defense Against Pesky Creditors

March 11, 2009 - PRLog -- At a time where you need credit the most, the recession is making it tougher for the growing amount of people who are classified as having bad credit scores. This is not a good sign and it proves what reports have been saying all along: the credit crunch is making American life difficult for even people with good credit.

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Until Congress and credit companies figure out a solution to revamping the credit system, many people in the United States will have to decrease their dependence on credit and learn how to pay off their debt more responsibly. Unfortunately, whether it is by job lay-offs, insurmountable debt loads, bankruptcy or foreclosure, there is an increase in the number of people who do not have the funds or income to pay off their debts. Corresponding to that increase is the rise of calls from creditors threatening to sue if consumers do not pay up.

If more consumers knew about their debts’ statute of limitations, they would be able to counter argue any potential faults in the amount of debt they owe to creditors. This is because the allotted time for a statute of limitation, usually between seven to 10 years, is often skewed by the debt collector’s bureaucracy, so consumers are allowed to question if their debt forfeited. However, that in itself takes time, patience and a risk for the creditors to actually sue.

People who are using credit should not wait for their statute of limitations to expire. If they ask for help from a debt management agency or a credit counselor, they will be able to reduce their debt long before they have to really investigate their debt’s expiration date. It is a safe bet in assuring themselves financial freedom.

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