At that point, the delinquency stops affecting your credit. Your credit suffers tremendously in the meantime, and since you’re still legally obligated to pay the debt, a debt collector can pursue you until the statute of limitations runs out in the state where you live.
Some people consider credit card debt bad and mortgage or student loan debt good.
But the option we want to discuss here is paying off debt.
You may have heard that some creditors are willing to settle your debt for pennies on the dollar.
Debt consolidation companies like National Debt Relief and Freedom Debt Relief offer to help you through the process for a fee (eating into your savings).
They will instruct you to stop paying your bills, which leaves you open to lawsuits by your creditors.