Credit Report Repair: Are You Responsible for Your Debt? When You May Not Be

Dec. 19, 2010 - PRLog -- The vast majority of consumers don't know much about the laws of credit, especially those that govern when and how long a creditor can sue. Following is a brief overview. Knowing your rights is one of the first steps you should take when trying to do credit report repair on your own.

Credit Report Repair: Why It's Important to Know Your State's Statute of Limitations

You just might find that there are some items on your credit report that you don't have to deal with because Father Time has taken care of it. And that's why it's important to know your state's statute of limitations.

Credit Report Repair: How Many Years Have Elapsed Since You Incurred Your Debt?

Every state has a limit on the amount of time a past creditor can come after you. Even though it may be hard to believe when you are in the thick of trying to repair your credit, the laws in the. U.S. are designed to give debtors a fresh start - eventually.

The statute of limitations as they apply to unsecured debt (eg, credit card debt) varies from state to state. It ranges from a low of three years in Delaware on up to 15 in Ohio. Most states have statute of limitations in the five to six year range.

Credit Report Repair & Residency: "I've Moved, So Which State's Statute of Limitations Apply to Me?"

Usually, the laws in the state in which you currently reside apply to you. This is true even if you racked up the debt (ie, entered into a credit agreement) in another state.

Again, hit the web and do some research on the laws as they relate to your state. A great place to start is the website of the National Association of Consumer Advocates.

Credit Report Repair: How You Can Inadvertently Hurt Yourself by Extending the Statute of Limitations

When trying to repair their credit, many debtors - in their efforts to do the right thing and pay their debt - can actually wind up hurting themselves by extending the statute of limitations.

This usually happens when they contact a creditor -- or a creditor, usually a collection agency by this time - contacts them. The debtor shoots him/herself in the foot by entering into a repayment plan with the creditor. When this is done, what it does is acknowledge the debt - and starts the statute of limitations all over again.

Note: The above is a general overview, laws vary from state to state when it comes to how/why/when a statute of limitations can be extended.

When conducting credit report repair, no one is telling you NOT to pay your debts. But, like any situation that has financial/legal consequences, you want to do what's right for you not only today, but for years down the line.

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At http://Repair-Credit-Easily.info, get the FREE report, "6 Credit Repair Myths and 6 Specific Ways to Raise Your Credit Score. Get on the road to repairing your credit today and find out more credit repair rules that can hurt you when trying to fix your credit. By getting the right information and taking the right steps, you can have good credit again.