Find out your state’s statute of limitations on debt

Find out your state’s statute of limitations on debt. It may be four years. If you make a payment or agree to a payment plan it will extend it. And not only does it extend the statute of limitations, if you agree to send a payment or make one, the statute of limitations starts all over again from day one.

I am also a newbie and have been lurking for a few days trying to find a spot to jump in. So here it goes. What do I need to do if I have anything on my credit report past the statue of limitations? TIA !

What I’ve done is dispute any old addresses on all 3 credit reports. once that is complete, I dispute all negative entries as “not mine”. The way the credit bureaus verify with the creditors is through a match with your address and the address the creditor has on file. If your old addresses tied to those old debts don’t match up with what’s now on the credit reports, usually the credit bureaus will delete those trade-lines. The one that you may have problems with is Experian; you can ask to delete your old addresses until your are blue in the face, and they still won’t budge.

How do you dispute old address? They are valid so how do you get them to go away. I have some from long ago where I only lived there for 2 months at the most.

Write to all 3 credit bureaus requesting that all (with the exception of your current address) be deleted. To be even sneekier (if you are hiding from collectors or creditors), open up a PO Box and begin getting your mail there. DO NOT request a change of address from the USPS as the USPS, come to find out, sell your info to, but not limited to, collectors, etc. After you get a new address, contact the credit bureaus to delete all the other addresses listed. Then immediately after that, write to them again disputing bad accounts/collections/etc.

On the subject of addresses, though, someone mentioned that the USPS will report address changes to various companies. I made an address change with Capital One (to a PO Box) and they told me that I could do that but they would keep my street address on file. Would that reflect on a credit report? Just curious.

I appreciate the good advice shared on gaining control of consumer debt. I have an observation on Robert’s suggestion below. I realize he is advising someone on how to overcome bad debt records. But if a person actually is responsible for a bad debt in the past, there must be better ways to deal with them than by trying to dispute them after having addresses erased out of a credit bureau report and challenging past bills by claiming they must be wrong because I did not live at such an address. Isn’t the spirit of the group to learn how to work out a solution that will work for both the creditors and the debtors, rather than finding a way of making the bad accounts disappear? Isn’t honesty important? The approach recommended here sounds like running from reality and could get a person into serious legal problems, in my opinion.

Many banks have accounts for kids

Many banks have accounts for kids that have no minimum balance. After my divorce I started requiring my kids to save a minimum of 10% of all cash they get. They didn’t like it at first, less money in their pockets to spend, but when that first bank statement came (3 months later) they got excited about how those little amounts plus interest added up. Being kids they aren’t willing to save much else beyond that yet but I hope that changes as they get older and have the change to earn more money.

I just started taking a couple of classes earlier this month and I’m paying for it with my own money. Believe me, I’m putting a whole lot more effort into the classes and the homework because it’s my money at risk. If the classes aren’t passed then I’ll have to put up the same amount if not more to repeat them.

Don’t know if this will help but i went through Orchard Bank ( and got a secured credit card with a $200 limit. I try my best to just use it for gas and groceries and pay if off every month except for once but even then I paid half of what had been charged and didn’t use it at all for the next month. I feel exactly like you do and that is why we are trying to pay off the debts and help our daughter with her tuition. But once again it is the end of the month and payday is not until the 31st and we are below zero in the account. Life just stinks.

From what I can tell the credit companies still only get a percentage of what you owe in a bankruptcy. It seems to me that it would still be in their best interest to negotiate with you directly and not the courts. They will get more and quicker.

How do you find the extra money

We looked at our monthly forevers and decided what we could do without for awhile…cable was one. We borrowed videos through the libray and intra library loan.

look for places you can let go of spending money …It is addictive though its fun to find those spots.My husband stopped smoking saved many thousands of dollars that way…you have to feel your own way through this…

Check to see if you can get a lower interest rate loan on your House mortgage 2 or 3 interest points lower is good.Make sure you have the loan officer check what your payments would be if it was a 25,15,10 ect year loan sometimes their is only a 20 to 50 dollar difference monthly between them. It is better to go for the lowest years you can .Also make sure there isn’t a prepayment penalty.

House insurance; do some comparisons….we found a company called Maine Mutual to be the cheapest for car and house ins.if you are under 50.

if you are 50 or older aarp can cut your car insurance bill in half but their house insurance was triple ours from Maine Mutual for the same coverage.

Ebay things you don’t use

yardsale anything you can

Our Credit card debt

Our credit was actually fairly good as dh paid mortgage and credit cards but nothing else… everything else was years and months behind….

so we would roll over our credit card debt to lower interest or non credit cards when the low or free interest time was about to be up he rolled it over to another low or no interest card and so forth.We always paid more on the cards each month.When we would get a sum of money in our hands we would call the credit card companies and make a deal… they settled for less because we would pay a lump sum payment which would pay off that card. It went on our credit report for 7 years as bad debt but since we had no plans of using credit we didn’t care of course all that has cleared up…. We did this till all credit cards were paid off…

other options:

if your credit is bad and your interest rates on your credit cards are high.Call the company and let them know that your are considering bankruptcy…..they will usually lower the interest and help you get straightened out. Very important to get the interest down……

We had personal loans and paid the minimums until they reached the top of the list.Paid it off and rejoice!!!!!!!

Any other debts you pay the minimum until it comes to the top of the list…

The morgage was paid off by coming to the top of the list and we took the monthly payment plus all the extra we had been paying on the other bills slapped it on there till it was paid off. .We also recieved some extra money during that time and all but 10 percent went to the debt.

This did not go off without a hitch…we had many major financial challenges but we stuck with the plan and it worked….

set your chin like flint….and you can do it!!!!!!!!!!!!!!!!!!!!!!!!!!!

any questions?

I got out of debt one step at a time

financial strategyWe had 3 young children at the time also.

Decide you are willing to do what it takes to live debt free.

Think of it as a game….and you are going to win it!

Steps: this is very different for each person.

I am a christian so I prayed first.

Secondly, since our income was so meager and we had bounced check fees all at once that could have paid for a whole month of food we decided it was cash living for us……closed my bank accounts.Paid by money order or cash………. We also began titheing 10 percent to our church. Those that are not christian could give to their favorite charities first.

Dire circumstances calls for extreme measures and that is where we were at.

Organize your debt into categories monthly, loans, credit card, medical – all debt into a category

Look at the crises debt,mortgage,heat,elect..gotta have those

Evaluate your income

mobilize income from work,money in the bank..wherever you have income

use it to pay that crises debt… have to have a place to live…

you will need some money for gas and food…..but pay off the over due rent or mortgage…

at this point people do many things

debt consolidation is one of them. I did not do this.I know others who have and in some ways it does make sense…

but for me I just wanted to pay off the debt one debt at a time…..that worked for me very well…

People who have done debt consolidation often go back into debt again….

Not always for those of you who have suceeded with debt consolidation and have stayed out of debt….

here is what we did:

created a budget and lived by it and still do live by it.

What do you put on your monthly budget?

First you have to know:

The difference between debt and the monthly forevers!

Monthly forever bills are bills you will pay monthly forever electricity,gas,insurance ect

Debts are all the extras that you owe…….

Create a budget putting both the monthly FOREVERS and the DEBTS you owe.

Organize your monthly forevers first. Then the debts

Reevaluate your debt and organize the debt you owe from the least owed to the debt you owe the most on….

Pay minimums on everything except the first debt. Plan on being a DEBTBREAKER for that first debt….pay the minimum plus every extra penny you can come up with.When that debt is paid off roll over that payment for the first debt plus the minimum payment for the second debt you were already paying: Keep doing this until all debt is paid. Remember to rejoice over each paid debt. I did!

Early payment and credit score

Someone told me that it improves your credit score/rating if you pay bills earlier than the due date. For example if your credit card bill comes in on the 1st first, is due on the 25th, and you pay it on the 5th (20 days early) rather than the 25th (due date) it improves your score/rating. That this is the same for mortgages, car payments, etc.

I always pay mine on the due date or a day or two before. I thought it was good cash management. Not that I have a lot of cash to manage…

Does anyone know for a fact if this is true?

I wouldn’t bet my house on it, but I want to say that I heard once that it doesn’t reflect early payments, only that the payments were made as agreed. Sometimes it’s even beneficial to apply for one of quick cash loans online to pay your bill on time. Also, I’m pretty sure, your report won’t reflect if you pay more than the amount due – only, again, that it was paid as agreed, or “within terms”.

As for me, I do pay up early, and I add another payment in the middle of the month. It keeps it going down and down and down…..

There’s more to reality than what is said in the Bible

And for what is not there, you have to use your heart and mind and your conscience.

My mother and father were educated at a religious college. My father also had a masters from a seminary. When it came time for me to decide about college, because I would not go to a religious college, as I did not want a religious occupation, they refused to help me with college at all and told me they would not even let me live at home if I attended the local community college. I was expected to go to religious college, marry a minister and that would be my life. Did I want to live my life with another domineering, authoritarian man? They made my childhood hell and I’d rather have died than to spend my whole life that way. So I was cut off when I was 16, nearly 17.

I got married, had a child, divorced and spent many years struggling at lower-level jobs while I raised my daughter. When it came time for her to go to college, all I could offer was free rent. She went to work and school for a while, got her AA degree, worked some more, then went into the military and did her 4 years, came home, went to the local University and with her military benefits and loans and part-time work, finally got her degree last Spring. She is 36 this year, not married and no children. It has been a long hard road. If I had been able to help her earlier, she would not have had to risk her life in the military. If I had been able to help her earlier, she may have already been on her career path and might have already started a family. Sometimes better late than never does not completely apply. Sometimes you just lose out on parts of your life you should have had.

I deeply regret that I wasn’t able to help her more. I would have been able to help her more if my parents had been willing to help me get my college education. I know it is not always possible, but it is my heartfelt belief that there is nothing more important a person can do for their children than making sure they complete their education as far as their capabilities and interest go. It is not a legal obligation but a gift of love and many people are willing to sacrifice for that so that their children and hopefully future grandchildren will not have to struggle as much.

You are on the right track

If you start planting seeds now with your two year old daughter then when the time comes for her to go to college she will be expecting to take care of that responsibilty and won’t think a thing of it.Encourage her to start saving a percentage of her money that is given to her for birthdays ect and all the jobs that she earns money at through her youth….I did that with my children and they had some money when they turned 18 to do what they wished to do with it.You could even take it another step and start planning to invest her money now and watch it grow…..there are places to invest small amounts of money.It will be a great education for you and her.

No one is criticizing a person’s decision to pay or assist in paying for a child’s college when the have the money. But, many do not believe it is smart for parents to go deeper in debt in the process. It is just not good business sense. The same would go for paying for a daughter’s wedding.

I know the government hold the kids hostage to the parent’s income, but it is not the government’s responsibility to pay either. When I finally went back to college, I had made too much the year before, but there is also another form that can be filed that basically says circumstances have changed. That did help secure a student loan and more grant money.

Thank you. I hope I’m able to convince her to save her money and not spend it on every little thing like I did and really still do. Even though my dad would tell me to save I didn’t and I never learned how to. Of course telling someone what to do and actually showing them are 2 different things.

My DH and I really going to try and buckle down this year and not spend every little cent we have on frivolous things for 2 reasons our mortage amount has gone up almost $500/mo and we really need to make repairs on our house so we can sell it. Thanks again for your support.

You are going to upset me on the matter

You are going to upset me on the matter because I totally agree with you. My DH and I have one child right now, she is only 2 but we haven’t been able to save one cent for her college. We can’t even save for ourselves and I’m sorry but I’m not going to eat cat food so that I can pay for her to go to college. If I’m able to help her then I will do that but I feel if she wants to go to college and hopefully she will then it should be her responsibility to pay for it. It may seem selfish but I know she will understand. And I think by her paying her own way she will work harder to make good grades knowing if she doesn’t she is wasting her money.

My daughter works 2 jobs and I have worked at the HS guidance center and have spent many hours researching the way for her to pay the tuition. Since she has no credit she can’t get a loan unless her parent co signs it and since we are already in debt why put more for us to pay? SHe as and is doing all that is possible for the family. The government keeps telling us that we owe so much money towards the family contribution and that is where the problem starts since ths school use that as the foundation for financial aid. Its rally not the financial aid office that tells you how much you pay. Its really the government when you fill out the FAFSA form They don’t take into account your life, just what you manke and what they can get from you.

My daughter has a frined that has divorced parents. THe mother doesn’t work and had custody BUT the father makes $150,000 year and she get the money from hime to stay at school at a cost of $10,000/year. But her $25,000 tuition she just pays $4,000. NOT FAIR but the FAFSA is under the mom and there is no income but the little that the daughter makes over the summer. Wish I could know how to llie but well……..

I’ve sort of avoided responding to this but your BTW inspired me. I have no idea what financial aid offices look at when it comes time to determining grants, etc. And I have said many times, I have no idea where the money goes. I teach part time at the University of San Francisco and my salary for the year is equal to the tuition of 1.25 students. There are 10,000 students in the school and far less than 7500 employees. 😎

This is a real tough topic for everyone to agree upon. I was a great student (3.95 in high school; 3.88 in college) but my parents’ petty bickering when they were divorced left me on the lurch. Since they did not pay for my education, I (to this day) figured they didn’t really care. But that was because they were too selfish and it wasn’t the case of wanting me to appreciate the expense of college which I did.

Then I have students now who are in the perpetual party mode. I’d love to have a chat with their parents and tell them they could just hand me the $24K in tuition and it would go to a much better purpose than it is for their son’s or daughter’s education (and don’t get me started on the jeweler’s daughter comparing Beverly Hills fashions with another student LOL).

How to handle a child’s education is really a very personal and individual issue and no one should be criticized for their decisions in this regard.

What would you do if you had about 13,000 in cc debt?

What would you do if you had about 13,00 in cc debt and a child that is going to a $25,000/yr school. She has taken out as many loans as she can and has received a $8000 yr scholarship. She is always on the deans list and also works 2 jobs and pays for most things herself. That leaves us with a monthly school payment of over $700 plus our other bills. With an income of 10,000 for me which all goes to school my husbands $60,000 is what is left. And no we don’t go on vacations and spend anything that is not necessary on ourselves. I have clothes that are now coming back into style and Walmart is the place I buy my clothes. How would you do a budget with this and still have money to pay the CC debt. Most of the debt was from having to put the downpayment on the school so we could afford the monthly payments. Any help is appreciated greatly.

Parents don’t need to go into debt for their childrens college fund. There are scholarships, grants and student loans out there. You just gotta do your homework to locate them. There are also scholarships aimed directly at certain union members children, African American and Native American children. Many organizations will also target various neighborhoods. There’s also the good old fashioned WORK your way through school.

I am new and am glad to see this blog available.. My husband took ill and when he did all our bills were years and months behind. While my husband was recovering from a major heart attack that almost killed him. I was coming home to 3 children under 10 and shut off notices for everything. My dh never shared with me what was happening. He had a fine job we were poor money managers.He has never been able to go back to work since. Through God’s help and with no income at times… mostly we survied on 20,000 a year social security with a mortgage. We became totaly debt free including the house.I homeschooled my kids took care my dh and we got out of debt. I left so much out but it was an incredible time for us. I felt like I was playing a game and winning it financially. We have stayed out of debt 7 years and are looking forward to prosperity. Time to move forward. I am now starting to teach others how to get out of debt.I am so looking forward to all of your advice…..and suggestions as I have only my limited experience to go by.

Do those PLUS loans have deferred payments, like student loans? I think those PLUS loans were for parents. I can’t believe how expensive school is now. When I went, it was only a few thousand a year for a Cal State school, not including books and rent, etc. I know it’s not good to take on additional debt, but if it would help alleviate some of the pressure off of you now, it might be something to consider. Your girl is obviously a hard worker and my hat is off to her because I never worked that hard in the beginning. You must be a very proud mom!

Also, here is a video on balance transfer:

BTW, don’t you love how the financial aid office always tells parents how much they are expected to contribute? My mom was a single working parent of my 2 younger siblings, barely stretching her paychecks and there was no way she could help pay for college. They’re like “Oh, you make this much money….. no, no, we don’t want to look at your list of outgoing monthly expenses”.

Our goal also is to be debt free

What killed us is that we had to place a $4000 school downpayment onto a credit card. That was our last resort or daughter couldn’t go to school last fall. She has student loans out but this was part of what the government said we can afford. Funny thing is they count my income (10,000) a year as income when they take out of us $13,000 over the 10 month school period. The only option we have is a parent loan and how are we supposed to pay for that? So for 2 more years we have to suffer and then there is a 1 year time off and then the next child will be in school.

One company that has a great transfer offer is Discover. I transferred all my balances at lifetime 0% interest. the only catch is that you have to perform 2 transactions per billing period to keep the rate. No minimun charge. So what i do is twice per month I buy something for $1.00 and i pay off the extra $2.00 at the end of the month. You have to be diligent. For me it was great because i was coming off cards with 25% interest.

This is probably not Politically Correct and may really upset several people, but would someone please show me where it is written in either the Bible or the law that parents must pay for their kids college? My parents supported me going to college, they were always patting me on the back and encouraging me to go, but they did not have the money. I was only able to afford one semester and did not finish until 10 years later, working 3 part-time jobs with a wife and 2 kids. When my oldest graduated HS, we did not have the money either. When his college got through calling me everything lower than whale dung, they found more scholarship money. Like some of you, I made too much on paper for him to be entitled to any government handouts. My other son is currently working his way through his senior year of college and will graduate with no student loans and no money from me either, though he does live at home rent free.

This is not a bragging story, this is reality. My wife and I have been struggling like many of you and we refused to go into debt for out kids college.

Just my two cents worth.

collegesI am, in no way, coming down on those who pay college tuition for their child, it is a personal decision, but here is my tiny little 2 cents on the subject…

Even if I had the money to send him to school, we would still make him pay his way through college. When my dad was paying for me to go to school, I did not appreciate it and I didn’t work hard. I was having too good a time to study. I ended up leaving school my second year. Several years later, I had to put myself through school, with student loans and grants. When I had to work my way through college, yes it did take me longer, but I appreciated it much more. I knew if I failed a class and had to retake it, that was more money I had to pay for additional semesters.

Now, if my son graduates with a good GPA and he worked his behind off, we will probably pay his school loans off so that he doesn’t start his adult life with both feet stuck in quicksand.

My aunt just went through this with her son. He was goofing off, failing classes and I told her to cut him off because he needed to learn to appreciate an education. This advice comes from my own personal experience. I knew several people whose parents were fully paying tuition, rent, books, spending cash. I always felt jealous of them at the time (almost 20 years ago), but now I realize that I don’t want to pay for a 4 year long party.

Some things to think about before doing a balance transfer

We just had this exact discussion in Financial Peace Univ last night (the Dave Ramsey class). Check out his books, they are GREAT!!

Here are some things to think about before doing a balance transfer:

  1. If you already have a balance on the card you are transferring to, every payment you make will go to the lower interest rate part first and the higher interest rate principal will not go down and will continue to accrue interest quickly!
  2. How long is the lower interest offer? Can you pay off the entire balance by then? If not, check what the rate will go up to. It could be even higher than what you have now.
  3. Make sure you do NOT miss a payment or are late. If you are, then the rate will go up immediately and other credit card rates may go up too. There is a new law that states other cards can raise their rates if you are late on another card.
  4. Remember if the interest rate is lower, then the minimum payment will be lower and it will take you longer to pay if off, so eventually you will pay about the same amount of interest. I would only do a balance transfer if you intend to continue slamming as much money as you can find onto that card to get it paid off quick! Don’t get complacent and pay only the minimum, this will take you 20 years to pay off.
  5. The ultimate goal is to pay it off and not charge anymore. If you balance transfer, then make a commitment to cut up and close the card that you transferred it off of.

The biggest thing to becoming financially independent is to live within your means and save. You would be surprised at how quickly you can accumulate wealth in a good money market or mutual fund. If you google “compound interest” you will find many amazing stories about how money grows without having to do anything. If you charge things on a credit card, you are essentially paying the bank instead of the bank paying you. Wouldn’t you rather have the money??

As long as you keep your balance(s) in check.

Transferring balances to lower-rate cards (assuming the fees are reasonable) will result in lower monthly payments, and paying with one of those checks instead of a personal check would mean a very-short-term relief on your wallet.

But, if the balances go up on several cards, the offers are bound to stop coming in (not to mention that your available credit on those cards with the “low rate balance transfer” offers would be getting lower and lower in such a situation).

Other than that, all the credit card banks care about is that they get something that represents a timely payment–they don’t care if it’s a balance transfer check from another bank’s card, an electronic balance transfer, or a check from your own checking account.

What we need is a low interest for about 1 yr and we will have it set up with our bank to have auto pay directly to them. Want to clean up the debt and do it ASAP. Tired of all the credit cards and the companies tricks. Know of any good cards that we can apply for or anyother way to cklean up our credit let me know. Afraid if we do the debt consolidation thing that it would end up hurting us more. Any opinions appreciated.

Question about transferring a balance

Many times I will receive an application about 0% interest for six-twelve months on a transferred balance. If I have, let’s say $3000.00 of debt on a loan at 10% interest, would it be worth my while to see about getting it transferred to the 0% interest offer? Has anyone ever done this? What would be the benefits to me?

I transfer balances so that I pay less interest while I pay it off. The key is to not run the original card back up otherwise you’re worse off than you started.

What helps to determine if I transfer is what is the interest rate after the intro period is up. What is the transfer fee ( I would never pay more than $75.00)? If the interest rate after the intro period is higher than my original interest rate (before I transferred), can I pay it off before the intro rate expires?

I usually don’t transfer unless the term is 12 months or longer and I know I can pay it off within that year. Currently, all my accounts have been transferred. I have 2 at 0% until April (both will be paid off by then), one is at 0% until November, when it will also be paid off. The others are at 3.9% or 4.9% for the life of the balance. Oh, but one is at 9.9% (came from a 17% card) and I am determined to have that paid off by the end of the year.

A lot of people don’t think it’s a good idea to transfer balances, but if I can pay it off at 3.9% instead of 17%, why not?

I believe there are balance transfer calculators on line somewhere that can help you and show how much interest you would be saving.

So, definitely worth transferring the balance! You will save yourself some $$$. You just have to make sure you do pay the $3000 during this offer of 0%. Most of those offers jack up the rate to 15%+ once the period is over.

Is there anything wrong with constantly transferring a balance to a lower rate until it is paid off?

Before making the transfer, get your paper,pencil and a calculator.

  1. Check to see if there are any transfer fees. If no, go for it.
  2. If there are fees, is it MORE than what you would pay in interest on the original card?

It wouldn’t make sense to pay for a transfer fee if the original interest would total out to be less than the fee. I’ve seen people get caught up in this. The ad spinmasters do a good job of smoke and mirrors.

IF you end up paying more in fees, than yes it’s “wrong”…. suppose there are no fees and the interest rate is lower, it’s usually an into.rate which will end. The card companies are counting on you to forget that end date and happily charge along.Vicious cycle.

I am aksing if it is wise to transfer 2 high balance credit card balances to 2 other cards that offer a 0% or just a lower interest than the original cards. Sorry abiout the confusion

No, as long as you keep receiving those great offers. The only catch I could find when I was doing that was the timing. Sometimes, it took a lot longer to make the transfers than I thought. And some companies count that as a payment, some don¹t. So you might find that you have a month where you have to pay the card with the high balance and the card with the transfer. Does that make sense?