If you’ve stopped making payments on a debt balance, your lender or a debt collection agency will likely start actively trying to collect within a handful of months. But states have instituted a statute of limitations on debt, which can help protect you from old debts.
Debt consolidation is an umbrella term that includes many different approaches to paying off debt. For example, many debt settlement companies advertise themselves as debt consolidation companies, even if they don’t use traditional consolidation programs.
Collection accounts can hurt your credit to the point where it can be difficult to qualify for a loan or credit card. Over time, though, the negative impact of a collection account can diminish.
When you borrow money from a creditor, you have a legal obligation to repay it. As a result, having unpaid credit card debt can lead to a lawsuit.
Owning a business often comes with many ebbs and flows. Sometimes your cash flow hits a snag or unexpected expenses come up suddenly. These situations can leave you strapped for cash, which can make paying your bills difficult.
Should You Use Savings to Pay Off Debt? Having a healthy savings account is always a good idea. It helps financially protect you from the unexpected and can help you reach financial goals. But if you’re also sitting on some debt, you may consider using your savings to pay it off.
Whenever you borrow money, you have a legal obligation to repay it in full. Settling debt for less than you owe is a possibility. But because it means you’re not completely fulfilling your obligation, there may be tax consequences.
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I just wanted to thank your entire staff at The Law Offices of Leslie H. Tayne, for helping me get out of debt. If it wasn’t for your firm, I would have never been able to resolve my $13k worth of debt in less than 3 years. Your staff did a great job, I was finally able to buy myself a brand new car without using a cosigner. I can’t tell you again how happy I am. I would recommend your services to anyone.
L.C. Client 2007-2009
I sleep like a baby at night now because of the work that you and your office have done. Rest assured that I will refer anyone I know to your office with conditions that are similarly circumstanced.
R.S. Client 2012-2014
You have been very helpful at first directing me in the right direction when I had no clue how to go about handling everything, I really appreciated all your advice and help and hope we can work something out. Thanks again for all your help and kind words, and patience.
D.M. Client 2009-2012