When Not Paying Off Old Debts Can Hurt
It hurts to not pay off any debt, but some old debts can be pursued by a credit card company through legal action. Look at a credit report to see how unpaid debts are affecting credit scores with help from the owner of a debt negotiation company in this free video on debt and money management.
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Hi. My name is Peter Repak. I'm the owner of Clear Financial LLC, a debt negotiation company. When not paying off old debts can hurt. Well, it depends how old it is. First of all, not paying off debts itself can hurt. It's not a good thing not to pay off debts. So what you have to do is you pay it off. If it's over a certain amount of time, than things change. Let's say, just simply you were irresponsible and you didn't pay off your debt. And that's more than seven years. There's nothing too much anyone can do. If it's an unsecured debt, it's pretty much gone. However, if it's less than that, than everything changes. Credit card companies can actually pursue the debt. Even legally, they can pursue the debt. It is not really a position to be in. So what you really want to do, is you don't really want to have old debt. Again, it depends how old it is. If it's over seven years, I wouldn't worry about it so much. However, what you really want to do, is you want to pull your credit report and take a look at it. What is it that you have, and how negatively it's affecting your score. Again, having debt in the first place is a bad thing. So what you want to do, is you want to keep your commitment and pay it off. But if you get into trouble, you need to give us a call. My name is Peter Repak, the owner of Clear Financial LLC, a debt negotiation company. Thank you for watching.