If you have finally decided to work on settling your debts. Then, congratulations. It's hard work, however it can be done. However, if some of your debt involves junk debt, take the time to think about some of the following debt consolidation strategies.
First of all, while you begin to tackle some of the old debts that appear on your credit history, validate your debt. Debt validation means that you ask the collector to prove that you owe your debt, and for how much. Since older debts is going to be less easy to remember and verify, the onus is about the collector. Write a letter requesting documentation, and keep a duplicate. Should you receive no response, write another letter proclaiming that you cannot be responsible for this unproved debt, and send it by registered mail.
For older debt settlement, check out the statutes of limitations (SOL). Although different states have different SOLs, it's important to find your state's definition. For example, most states enforce a Four to six year time limit on business collection agencies. Quite simply, if the original loan company has not collected your financial troubles within that point period, they no more can. So, when you determine precisely what your state's statute says, it might be that you simply no longer have to repay the borrowed funds. However, this does not mean that this bad debt won't still appear on your credit report. Credit agencies may report on any credit card debt for up to 7 years.
If you feel morally obligated to repay old debts, do so. However, remember that after you have started a repayment schedule, your debt becomes reactivated. In other words, a debt that could have expired in 6 months will now remain open and active for an additional 4-6 years once you start repayment.
Always determine whether the present bill collector cited on your credit history is the original or from the collection agency that bought the debt. If it is not the original financial institution, then as a consumer you have added protection under the Fair Debt Collection Practices Act (FDCPA).
Despite many of these great hints about settling junk debt, still it often pays to make contact with a creditable debt settlement company that may do all of the hard and time intensive work for you. These businesses don't charge a great deal, and the've a lot of expertise.
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Final Tip: By researching and comparing the best debt settlement services in the market, you will determine the one that meets perfectly your very specific financial situation.
You are very welcome to visit the Debt Settlement USA website - where you can see the best rated firms for settling debt.
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