These Are Some Of The Ways To Reduce Credit Card Debt

It is quite important for a person in debt to think of ways of coming out of it as early as possible. When debt is allowed to accumulate, it becomes a nuisance to the debtor. Therefore, the debtor should look for ways to repay debts as soon as they realize that they are in a financial crisis. Too much debt can cause one to be declared bankrupt. This damages the credit worth of such a person.

There are so many consequences of having a poor financial history. Among the ways open for the debtor to regain the confidence of lenders is to reduce credit card debt. People who choose to reduce their card debt can do this through consolidation. This will give the debtor a chance of paying their debts at a lower interest rate. This is also a viable solution for people who have a bad financial report to their name.

When the debtor decides to reduce the card debt, they will have the chance of rebuilding their name with the credit bureaus. There are many ways in which this can be done. A person in this situation should seek the advice of a financial counselor who can advice appropriately on how this can be achieved. The most common way to lower expenditure is to stop using the card completely.

This is because the more one continues using the card, the higher the debt becomes and the longer it will take in repaying it. The debtor can also train on using the card only for emergencies. This way, the debtor will avoid impulse using of the card on things that may not be of help at the end of the day.

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How long dose a credit card company have to collect on a delinquent card?

I just received a letter form Capital One at my parent’s house on a credit card that I have not made any payments on since early 2003. I live in Michigan and thought that after 6 years that debit is no longer collectable. I have a copy of my credit report from June 2010 and this account did not show up. Can anyone give me advice as to how I should handle this?

Thanks
It is not a collections agency that is sending me the info. It was Captial One this is why i am confused as to what is happening. Dose this still fall under the the 6 year rule?

Answer
The SOL in MI is 6 years....the debt is time barred. Technically, a debt collector can come after you forever for defaulted debt...however, once the statute of limitations is up, which it has in your case...they've lost the power to successfully take legal action. Per the Fair Debt Collection Practices Act, you can send them a "cease communications" letter and that will be all that you need to do. Per this law they must cease collection activity.

Send the collection agency a letter via Certified Mail + Return Receipt (NOT regular mail) stating:

Per the Fair Debt Collection Practices Act, cease all communications with me about this alleged debt. This letter has been mailed via Certified Mail with Return Receipt. Receipt of this letter is being officially time stamped.
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To speed things up, fax this same letter to the collection agency. Free fax service at: http://www.myfax.com/free/

If the debt collector calls back, tell them that you have officially sent a certified letter to them to cease communications with you per the Fair Debt Collection Practices Act. If the phone harassment continues....next time they call, read the following statement:

Be advised that this call is being recorded. If you do not consent to being recorded, you need to terminate this call. Continuation of this phone call after officially being informed that it is being recorded implies consent to be recorded. This recording will be used to pursue Fair Debt Collection Practices Act violations in a court of law.

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