Maybe it’s due to the horrendous natural disasters Florida, Texas and California must endure, or the fact the everyone feels good by all that Vitamin A provided by the sun but boy oh boy do those States look out for you if you owe someone money!

There are four categories of debt that each state decides the length it is collectible for: Oral Agreements (I agree, sounds rather worthless but they carry a bigger punch than one would assume); Written Contracts (where your typical collection would be located, like a medical debt); Promissory Notes (Installment loans like your mortgage or student loan); and Open-Ended Account (Your revolving accounts like a credit card). Check out this sweet table HERE if you want to know your States statutes of limitations for a particular debt. The difference between legally owing someone for 3 years compared to 15 years is a crazy difference.

Just remember one thing (a story we get every other minute), when you hear someone boast to you of a tremendous story that they negotiated a debt for pennies on the dollar, it’s because the debt was probably outside the States collectible period and therefore paying anything was far too much. Not to mention they could be looking at that same collection for another 7 years on their credit report due to reactivity. Just because a debt is not enforceable in court doesn’t mean the collector still cannot try to fool you in paying in what they believe is still owed. I hope you enjoyed this information, don’t hesitate to get your own credit fixed by calling (800) 580-3914.