Do you tend to be late in paying your credit card bills? Is your pile of notices from creditors getting higher and higher? Do you fear you might lose your properties because you can’t pay off your credit card debts?
I have heard banks talk about a moral obligation to pay the debt. Maybe to the original creditor (and that’s a strong maybe), but certainly not to the junk debt buyer. If the original creditor or Debt Collection Agency Scotland owed you money, but the statute of limitations had run, do you think they would pay you? This isn’t about morality, it’s about the law.
You need to carefully scrutinize credit counselors before you consult them for help with repairing your credit. Many may have ulterior motives, so make sure you are not being duped. You’ll find that other ones are just scams. You should research any counseling service you are considering prior to initiating communications with them.
If you are 60 days late, many creditors will treat you just the same as if you made a payment 30 days late, but some will report it to the credit bureaus. You should find out if your creditor(s) file a report at the 30-, 60-, or 90-day marker.
Can they prove they bought this debt? They need to prove that you lawfully owe this debt, that they lawfully purchased this debt, and that the debt was lawfully transferred to them. They would need to prove this in court if they filed a lawsuit, unless you ignore it and they get a default judgment against you.
There are other paths you can take in dealing with debt relief. Getting the collector to validate and verify the debt can be an effective tool for you. There are also ways to make them stop calling you. Both of these topics are discussed on our website.
However, in the final analysis, a debt settlement that is full and final clears your debt totally, even though it is significantly below the amount you owe. That’s far better than going bankrupt, coming to an IVA or even, in Scotland, a Protected Trust Deed. You can leave with head held high, having cleared all your debts and even feel proud that you have done so and paid a lot less than you owe.