How to Deal with Old Unpaid Credit Card Debt

Old unpaid credit card debt can come back to haunt you. However, according to the law, if the debt has gone unpaid for seven years, you are no longer obligated to pay. Debt collectors may still call you, and this can lead to a sticky situation. Knowing how to properly handle debt collectors and old unpaid credit card debt can save you tons of money down the road, and help you keep your credit report clean once the statute of limitations is up.

Difficulty: Moderately Easy

Instructions

1. 
    

   Say as little as possible when debt collectors call you about old unpaid credit card debt. Do not acknowledge the debt or agree to make a partial payment. If it's been several years, you are probably in the clear, so it's best not to say anything at this point.

2. 
    

   Find out the statute of limitations on your debt. Seven years is standard, and this is the time it takes for old unpaid credit card debt to be removed from your credit report. However, some states have shorter statutes of limitations on credit card debt. If it's over four years, find out for sure before admitting to the unpaid credit card debt to a collector.

3. 
    

   Don't make a payment on old unpaid credit card debt. If it's been longer than seven years, the debt will be erased from your credit report, and you're in the clear. However, making a payment on this old debt is the same as admitting that you owe, and can make the debt new again by restarting the statute of limitations. If you really want to pay, see step 3.

4. 
    

   If you want to settle old unpaid credit card debt, pay in one lump sum. Because debt collectors want the money so badly, they will often settle for much less than you actually owe. This could even cut your unpaid credit card debt in half, so if you're determined to pay, negotiate first.

5. 
    

   Write a letter to debt collectors informing them that you know the debt is time-barred, and that according to the Fair Debt Collection Practices Act, you can cease contact with the debt collectors. Be firm and let them know that you don't want to hear from them again regarding your old unpaid credit card debt.
   NOTE: This step is only applicable if the statue of limitations has run out on your unpaid credit card debt.

Tips & Warnings

• Contact a consumer attorney in your area to find out the statute of limitations on unpaid credit card debt in your state.
• Send any correspondence to debt collectors via certified mail and keep a copy for yourself. This way, you'll have records in case you ever need them.