How to Make an Old Debt Disappear

Every day, thousands of people get out-of-the-blue calls from collection agencies that tell them they owe money from a debt they don't even remember. Sadly, many of these people are tricked into paying old debts that are not legally enforceable. You can stop these collection efforts and dispose of an old debt for good simply by checking your credit and drafting a letter.

Instructions

1

Know what the debt is from. If you don't know what the debt is from, why should you believe someone who calls you and tells you that you owe it? Many scams are based on this exact practice. So, gather as much information as you can on the company that is calling you and the original owner of the debt. Don't be too surprised if the collector doesn't know. The older the debt, the better your outlook. Unless the collector can demonstrate where the debt originated, you don't have to pay a dime.

2

Check the statute of limitations for debt collection in your state. You want to know for sure that the debt is outside statute of limitations and that you cannot be sued for it. Collection agencies sue people every day over time-barred debts. Most people end up with default judgments because they do not show up in court, even though the statute of limitations has passed. If you show up and demonstrate the debt is outside the state's statute of limitations, it doesn't matter if you once owed it or not, the case will be dropped.

3

Pull your credit reports. Most debt can only appear on your credit reports for 180 days plus seven years from the date of last activity. The date of last activity is the date on which the account first went delinquent. If you find that a debt is listed on your report that is older than seven-and-a-half years, you need to immediately call the reporter of that debt and demand that it be removed. You may also find that the date is "fudged" to keep the debt on your report for longer. In these cases, you need to immediately file a report with the Federal Trade Commission and the credit reporting agency that is reporting the invalid debt. Whatever you do, do not ignore it.

4

Once you know that the debt is outside the statute of limitations for your state and that it isn't hanging around on your credit report, you need to send the collection agency contacting you a full cease and desist letter. A cease and desist letter merely states that the collection agency is in no way, form or fashion to contact you again via any medium. It cannot telephone or send mail or email.

5

Inform them of the law. Along with your cease and desist letter, you should make it known that the debt is outside the statute of limitations for your state and is, therefore, time barred. Because of this, if the collector sells the debt to another collection agency, transfers the debt or attempts to report to your credit report over the debt, you will not hesitate to seek legal counsel and file a lawsuit.

6

Sign up for a credit monitoring service. If you can afford it, its a good idea to do this for at least six months following a brush with a time-barred debt. Make sure, however, to use one of the credit monitoring services offered through the credit reporting agencies as those tend to be the most legitimate. These services will alert you anytime someone attempts to post anything to your credit report.