What Can Restart the Clock on an Old Debt?

We live in a world where almost everyone has some sort of debt. Some debt is from going to school or purchasing a home. Other debits include missed payments on credit cards or medical bills. While many people pay on time, sometimes not everyone can. This is especially true for someone who is or was going through a rough financial patch. As these debts age, we have the choice to pay them and bring them current or wait for them to fall off our credit. For those who chose to let it fall, you need to know what can restart the clock on an old debt.


Be aware of the debt clock. It starts ticking when you first miss a payment. When it stops depends on your state laws and credit contract. The time limit could be as little as three years or as long as ten. The time limit, in terms of delinquent status on your credit report, is seven years. After seven years, be sure to get the debt wiped from your report. This will help your credit score go up and wipe out any delinquent status in relation to the specific debt.

Communicating with the Debt Collector

Communicating with the collection agency can reaffirm your debt. You have to watch what you say to them when you communicate. Acknowledging that you owe the debt, or agreeing to make partial payments to clear it can restart the debt clock. If a debt collection agency harasses you with calls, or you do not wish to talk with them, tell them to stop. If the statute of limitations runs out on the collection of debt and the collection agency tries to collect anyway you have other options. After asking them to stop contacting you, without acknowledging the debt, you can speak to a lawyer. They will get involved and help stop the collection agency from further running your credit.

There are only a few ways you can restart the clock on an old debt. Be sure to avoid them by knowing your rights.


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