Connect with us

CBS News

When will my credit card debt become uncollectible?

Avatar

Published

on


Stressed young woman has financial problems credit card debt to pay crucial
Knowing the timeline for uncollectible credit card debt matters.

Getty Images


Many Americans struggle with credit card debt, with the average credit card user carrying a balance of $6,329. “[The current] economy, with its high interest rates and job insecurity, has led many to rely on credit cards [for basic expenses],” says Vonda Copeland, co-owner of Copeland Insurance Agency. Unfortunately, this often leads to falling behind on payments.

Copeland points out that loss of income, medical emergencies and poor financial literacy are common causes of debt problems. They can spiral out of control, leading some to wonder: What happens when credit card debt becomes overwhelming? Is there a point where it’s no longer collectible?

We spoke with four financial experts to determine when, exactly, credit card debt becomes uncollectible. Below, they share the implications and how you can take control of your financial future with effective debt relief strategies.

Find a solution to your credit card debt here.

When will my credit card debt become uncollectible?

The process of credit card debt becoming uncollectible begins when payments stop. 

According to James Lambridis, founder and CEO of DebtMD, creditors sell unpaid debt to collection agencies after three to six months. These agencies will then “attempt to recoup the debt, but only 20-40% of the original balance,” he explains. If it remains unpaid, the debt becomes uncollectible after several years. The exact timeframe varies by state.

Let’s examine how debt becomes uncollectible, why your location matters and what happens when it does.

Start tackling your expensive card debt now.

How credit card debt becomes uncollectible

Credit card debt can become uncollectible through several routes. Kristy Kim, CEO and co-founder of TomoCredit, outlines three main paths: 

  • Expiration of the statute of limitations
  • Bankruptcy filings
  • Creditor’s decision to write off the debt

The most common path involves the statute of limitations. When a borrower stops making payments, creditors start collection efforts through calls and letters.

“If the debt remains unpaid for the duration specified by the statute of limitations — usually between three to ten years depending on the state — the creditor loses the legal right to sue for repayment,” Kim says. 

At this point, the debt becomes “time-barred” and legally uncollectible.

Alternatively, when someone declares bankruptcy, their debt might be wiped out completely — depending on the bankruptcy type they filed. In some cases, creditors may eventually write off the debt as a loss if they deem collection efforts futile.

Location-specific considerations

Where you live affects when your credit card debt becomes uncollectible. 

“The federal government doesn’t legislate [statute of limitations], which means it falls to each state to decide,” says Howard Dvorkin, CPA and chairman at Debt.com. For example, “if you live in New Hampshire, [the statute of limitations is] only three years … but if you live in Kentucky, it [extends to a full decade].”

What happens when credit card debt becomes uncollectible?

When debt becomes uncollectible, creditors lose their legal right to sue or garnish wages. This can bring relief to borrowers as they’re no longer obligated to pay.

However, Kim notes there’s a catch. “The debt may still appear on [your] credit report for up to seven years,” Kim says. 

This can hurt your credit score and make it harder to get new credit. And while creditors can’t pursue legal remedies, they may still attempt to contact you and collect the debt.

Debt relief strategies to consider

Below are six “debt relief do’s” to address credit card debt before it becomes uncollectible, according to the financial experts we interviewed:

  • Create a detailed budget: Track your income and expenses to find areas where you can cut costs and allocate more money toward debt repayment.
  • Use debt repayment methods: Try the snowball method (paying off small balances first) or the avalanche method (tackling debts with the highest interest rates first) to reduce your debt.
  • Pursue credit card debt forgiveness: Many creditors are willing to work with customers in financial distress. Negotiate lower interest rates or a more manageable payment plan before defaulting.
  • Consider debt consolidation: A debt consolidation loan can help lower your monthly payments and interest rates.
  • Seek debt relief help: If you’re overwhelmed, consult a nonprofit credit counseling agency for guidance and support.
  • File for bankruptcy: In last-resort cases, bankruptcy can give you a fresh start. But only consider this after exhausting all other options.

The bottom line

Knowing the timeline for uncollectible credit card debt matters, but taking action before you reach that point is the real key to financial health. Stay proactive by monitoring your payment history and knowing your state’s debt laws.

Starting to miss payments or see your balances creep up? Don’t wait for collection notices to take action. Reach out to financial advisors or credit counselors at debt relief companies now to weigh your options. They can help you create a plan that fits your unique situation.



Read the original article

Leave your vote

Continue Reading

CBS News

Renowned scientist’s ashes dropped into eye of Category 5 Hurricane Milton as lasting tribute

Avatar

Published

on


As an award-winning scientist, Peter Dodge had made hundreds of flights into the eyes of hurricanes — almost 400. On Tuesday, a crew on a reconnaissance flight into Hurricane Milton helped him make one more, dropping his ashes into the storm as a lasting tribute to the longtime National Oceanic and Atmospheric Administration radar specialist and researcher.

“It’s very touching,” Dodge’s sister, Shelley Dodge, said in an interview Thursday with The Associated Press. “We knew it was a goal of NOAA to make it happen.”

The ashes were released into the eye of the hurricane Tuesday night, less than 24 hours before Milton made landfall in Siesta Key near Sarasota, Florida. An in-flight observations log, which charts information such as position and wind speed, ended with a reference to Dodge’s 387th — and final — flight.

“He’s loved that aspect of his job,” Shelley Dodge said. “It’s bittersweet. On one hand, a hurricane’s coming and you don’t want that for people. But on the other hand, I really wanted this to happen.”

Hurricane Milton Ashes Weather
 A NOAA crew on a reconnaissance flight, Tuesday, Oct. 8, 2024, into the eye of Hurricane Milton in the Gulf of Mexico, gather before dropping a package containing the ashes of Peter Dodge, an award-winning scientist who made almost 400 hundred flights into the eyes of hurricanes, as a lasting tribute to the longtime radar specialist and researcher. 

Sim Aberson / NOAA via AP


Dodge died in March 2023 at age 72 of complications from a fall and a stroke, his sister said.

The Miami resident spent 44 years in federal service. Among his awards were several for technology used to study Hurricane Katrina’s destructive winds in 2005.

He also was part of the crew aboard a reconnaissance flight into Hurricane Hugo in 1989 that experienced severe turbulence and saw one of its four engines catch fire.

“They almost didn’t get out of the eye,” Shelley Dodge said.

Items inside the plane were torn loose and tossed about the cabin. After dumping excess fuel and some heavy instruments to enable the flight to climb further, an inspection found no major damage to the plane and it continued on. The plane eventually exited the storm with no injuries to crew members, according to NOAA.

A degenerative eye disorder eventually prevented Dodge from going on further reconnaissance flights.

Shelley Dodge said NOAA had kept her informed on when her brother’s final mission would occur and she relayed the information to relatives.

“There were various times where they thought all the pieces were going to fall in place but it had to be the right combination, the research flight. All of that had to come together,” she said. “It finally did on the 8th. I didn’t know for sure until they sent me the official printout that showed exactly where it happened in the eye.”

Dodge had advanced expertise in radar technology with a keen interest in tropical cyclones, according to a March 2023 newsletter by NOAA’s Atlantic Oceanographic and Meteorological Laboratory announcing his death.

The newsletter said colleagues were “saddened by the sudden and tragic loss of one of its longtime meteorologists,” who died peacefully on March 3. 

He collaborated with the National Hurricane Center and Aircraft Operations Center on airborne and land-based radar research. During hurricane aircraft missions, he served as the onboard radar scientist and conducted radar analyses. Later, he became an expert in radar data processing, the newsletter said. He received a Department of Commerce Bronze Medal, two NOAA Administrator Awards and the Army Corp of Engineers Patriotic Civilian Service Award.

Dodge’s ashes were contained in a package. Among the symbols draped on it was the flag of Nepal, where he spent time as a Peace Corps volunteer teaching math and science to high school students before becoming a meteorologist.

Hurricane specialist Michael Lowry shared a photo on social media of the NOAA log noting the ashes were dropped calling it a “beautiful tribute.”

An avid gardener, Dodge also had a fondness for bamboo and participated in the Japanese martial art Aikido, attending a session the weekend before he died.

“He just had an intellectual curiosity that was undaunted, even after he lost his sight,” Shelley Dodge said.





Read the original article

Leave your vote

Continue Reading

CBS News

Obama campaigns for Harris while candidates hit swing states

Avatar

Published

on


Obama campaigns for Harris while candidates hit swing states – CBS News


Watch CBS News



Former President Barack Obama hit the campaign trail Thursday in Pittsburgh for Vice President Kamala Harris. He made an impassioned plea, focusing his attention on Black men voters, a group Harris has struggled to gain support from. Meanwhile, Trump campaigned in Detroit while Harris was in Arizona.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

Mark Harmon guides new chapter for Agent Gibbs as producer for “NCIS: Origins”

Avatar

Published

on


Mark Harmon, widely known for playing Special Agent Leroy Jethro Gibbs on the hit CBS drama “NCIS,” is stepping behind the camera as the executive producer and narrator of a new spin-off prequel, “NCIS: Origins.”

After nearly two decades in the role, Harmon is now helping bring to life the early years of Gibbs, with actor Austin Stowell portraying a young version of the iconic character.

“You come in and audition here for years and years, and all of a sudden, you’re presented with a badge with your name on it,” Stowell said about now working on the Paramount lot.

The show’s set features scenes at Camp Pendleton, including locations like Daley’s Tavern, a bar just off-base. For Stowell, it is a role of a lifetime.

“I felt very confident in what I could bring to the character, and then the second you walk in the room, that all goes out the window,” Stowell said.

Casting the role of young Gibbs in “NCIS: Origins” was a significant decision for the team, as it meant finding someone to take on the character that Harmon made iconic. The prequel, set in 1991, explores Gibbs’ early days as a rookie agent.

Harmon saw the project as an opportunity to dive deeper into the character’s backstory, introducing a Giibbs that has never been seen before in the original series.

“This is a chance to really kind of dig into it,” said Harmon

The role also brings a more personal and emotional storyline for Gibbs, one that explores his grief after the loss of his wife and child.

“He’s in rough shape,” Harmon said.

Stowell has drawn on his personal experiences to portray Gibbs’ pain. His father died by suicide four years ago.

“Loss is something we all deal with and for Gibbs, this is something that has cracked him to his core, said Stowell.

Harmon has been a steady presence on set, offering guidance to Stowell and the rest of the cast.

“From day one, Mark has been available,” Stowell said. “He’s so good at allowing the people who are on this show to feel like they are supported.”

Harmon made it clear that this new chapter of “NCIS” belongs to the younger cast.

“I’m there to help and to talk to them or to tell them what I remember from being in this for a while. But this is their thing,” Harmon said. 



Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.