Bringing Expired Debt Back to Life

3 01 2012

Sourcehttp://finance.yahoo.com/news/bringing-expired-debt-back-to-life.html

When a debtor agrees to make even one payment on any expired debt, the clock restarts the old debt obligation.  This process is called “re-aging.” 

Let’s rewind, if a person has not made payments on their debt, they receive negative hits on their FICO Score (read more about FICO Scores here, here, here).  However, eventually the statute of limitations frees up their debt obligation.  But when paying on the old debt this clock begins when that old debt is repaid one’s credit report will show “settled” which will also negatively affect your FICO Score because it wasn’t noted the account was paid as agreed.

Pay attention to the fine print before opening any stream of credit.

Advertisements

Actions

Information

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: