What happens if I ignore old debt?

You could face legal action, wage garnishments, property liens, and account levies. In some cases, if you owe a small amount, the creditor may choose not to pursue payment after a certain amount of time passes.

How long can creditors collect old debts?

Creditors face a time limit to bring legal action, but there is no limit on how long a creditor can pursue payment of a debt. As long as the debt collector follows the law, they can communicate with you regarding old debts indefinitely. You have the right to initiate a “Do Not Contact,” which limits a creditor’s ability to contact you.

Can creditors collect a debt after seven years?

The seven-year mark relates to reporting adverse events on your credit file, not a creditor’s ability to communicate with you regarding an old debt. There is no deadline on how long a creditor may contact you regarding past due accounts. However, state laws restrict the time a creditor has to sue.

August 2021

28 Aug

What Happens If You Ignore Old Debts?

Posted Under: Blog , Debt Collection , Financial Education

Creditors have different responses to missed payments. Factors that impact what actions a creditor is likely to take include the...

21 Aug

What Happens to Debt When You Die?

Posted Under: Blog , Financial Education

Dealing with debt collection calls after the death of a loved one is the last thing you want. Yet, 73%...

15 Aug

Can You Qualify for Debt Forgiveness from a Creditor?

Posted Under: Blog , Credit Counseling , Financial Education

Debt forgiveness sounds like an excellent route when facing large amounts of high-interest debt that continuously keeps you poor. As...

09 Aug

Debt Collection Dates That Matter

Posted Under: Blog

The problem with debt is that it requires you to pay for yesterday's expenses with today's dollars, leaving you with...

02 Aug

7 Creative Ways to Wipe Out Credit Card Debt

Posted Under: Blog , Credit Cards , Debt Settlement

Today, using credit cards is as much a part of the American experience as baseball and apple pie. The trouble...

REPRESENTATIVE EXAMPLE OF APR

For example, a $30,000 loan with a 4.99% APR over 5 years (60 months) would result in a monthly payment of $566, with total interest paid amounting to $3,959.97. This could save you thousands in interest compared to higher-rate debt.

ANNUAL PERCENTAGE RATE (APR)

Annual Percentage Rate (APR) represents the annualized interest rate you are charged for borrowing. It is the combination of the nominal interest rate and some additional costs such as fees involved when incurring debt. Our lender offers APRs for personal loans, cash advance loans, installment loans and debt consolidation loans from 4.99% to 35.99%. Since New Start Capital does not directly issue loans, we cannot deliver any specifics or guarantee the APR you will be offered. The APR depends solely on your lender’s decision, based on various factors including your credit score, credit history, income, and some other information you supply in your request. For more information regarding the APR contact your lender.