Business & Finance Credit

Credit Card Offers From Past - Unpaid Creditors Should Be Avoided

Creditors are always looking at new and innovative ways to get debtors to repay past due debt.
No matter how sneaky those ways may be.
Here is one of the best and sneaky methods I have seen to date.
You receive a credit offer from one of your past creditors that you have never repaid.
The credit offer seems attractive at first glance.
The sales pitch seems too good to be true.
Not only will the creditor approve you for a $500 line of credit, but will roll over your past due balance on to the new line of credit.
On top of that, they will report the new line of credit to the credit-reporting agency, giving you a 'fresh start'.
Moreover, the interest rate is unbelievably low.
Well, if you so happen to accept this 'boob' of a deal, here is what you could get in return.
The 'old debt' clock gets to re-start all over again as it relates to the statute of limitations.
Any attorney fees and collection costs can be added to the outstanding debt.
Oh, and lets not forget about the continuing accruing interest that never stopped on the old debt in the first place.
And buried somewhere in the fine print, there you will find most times a stipulation that explains that if you are late just one time, your low interest introductory offer will increase to an unbelievable amount.
Therefore, by accepting this so-called new line of credit you have given the creditor great advantage to come after you all over again.
My advice to anyone receiving such an offer from a creditor that you owe past due money too is to rip it up and evaluate your position.
If the statute of limitations is nearing, you might be better off 'waiting it out'.
If the statute of limitation is still far off, approach the creditor on your own re-payment terms but do so in writing and do not accept any verbal agreements.
It's universal.
Bad things happen to good people.
Just don't let the bad things cloud your thinking.
Being in debt can make some people feel vulnerable and helpless.
This should absolutely not be the case.
Face your debts, be prepared, get a plan and execute the plan.
Stay focused and disciplined.
There is a solution to every problem.
Some solutions come with great sacrifice.
But In the end, you may find that it was all worth it.

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