3 Debt Myths That You Should Avoid
Getting free advice on how to deal with debt can hardly be worth the price you usually pay for it, considering how many myths there are that people buy into.
And dealing with these myths is what helps avoid a lot of headache and stress in the process.
So, with that said, here are 3 myths that you can consciously avoid:
#1: Paying old debt increases your credit score
This applies only if the debt on your report is seven years or younger. If it is older than the aforementioned figure, then by law, it should be taken off your credit report. Alternatively, if the debt is lesser than seven years and not on your credit report, then paying will lower your credit score.
#2: Paying old debt removes it from your credit report
Unfortunately this isn’t true since it will continue to be reported on your credit report with the status of being paid or settled. Of course, as mentioned earlier, if the debt is more than seven years old, it will be removed from your credit report altogether.
#3: Creditors cannot sue you if the statute of limitations on debt collection is passed
While you might have no legal obligation to pay for a debt that has passed the state statute for forced collection. However, that will not stop creditors from suing you and for which you have no choice but to appear in court in order to clarify that the statute of limitations has expired.