2 Reasons Not to Delay Debt Relief
By R.C. Bai

There are many reasons you don't want to let your debt linger for to long, but there are two in particular you need to be aware of. The game of debt and debt collecting is changing and it's not in your favor to delay debt relief. Read further to find out more.

With personal debt mounting and people confused about what to do, lenders and collectors are taking advantage of this confusion.

There are two good reasons for you to resolve your debt problems sooner than later.

1. Interest & Penalties - more than before your lender is quick to react in raising your interest rates. Until there is a change in the laws this bump-up will continue. Also, penalties are accumulating faster, the longer you avoid the problem the more these fees are mounting. When these debts are passed on to a collection agency, that agency has no problem waiting for better times. The accumulation of interest and penalties is a much better return on their money than 2% in the bank.
2. Time - the statue for collections in general is 7 years. One trick the collectors try to do especially when the 7 years time limit is approaching is use fear. They will say "just send in one payment and that will suffice for a while". The truth is if you send in one payment thinking this will keep them off your back, what you just did is extend the statue for another 7 years. In the eyes of the court you just agreed to renew the original contract and that means another 7 years to collect.

If 7 years is the statue limit in your state, then your off the hook if they don't take you to court.

So, the sooner you get into debt relief the sooner you can stop the penalties and interest hikes and you won't have to worry about collectors tricking you into another 7 years of hell.