January 8, 2024
The Debt Time Bomb: What Happens When You Stop Paying Old Credit Card Bills
The letter addresses a reader struggling with old credit card debt and wondering about the consequences of stopping payments on closed accounts. The key takeaway is that while debt collectors can’t sue you after the statute of limitations (typically 3-10 years, varying by state) has passed, they can still report the debt to credit bureaus and contact you. Making payments resets the statute of limitations. While non-payment carries risks like potential lawsuits, negative credit reporting, and accruing interest, the author suggests it
