Hannathy said:
Wow is all I can say I can not believe all the people who say it is all right to not pay back debt, No wonder there is so much financial problems in this country. I guess I am old but I was taught and I believe you pay your debt no matter the circumstances. Other people have had hardships, bad marriages but did not use these as excuses to not pay. So keep flaming me I still believe you should pay your debt and did not know about a SOL (which I think is wrong)
I don't think that anyone is implying that it's ok to default on a debt. When I was in a terrible financial situation, I did everything I could to pay back my debts. However, it's not as cut and dried as that. Let's say I had a credit card that, due to extenuating circumstances {i.e.-overwhelming medical bills, loss of employment, etc}, I had trouble paying. I call the card issuer and try to explain that I can't meet the minimum right now, but I will pay whatever I can, as a good faith measure, until I get back on my feet. Well, for alot of issuers, that is just not acceptable and even if you DO make whatever payment you can, if it's not at least the minimum, it goes as a 30 day late on your credit report. That tanks your FICO. So, eventually, they sell the account to a collection agency for pennies on the dollar and they also report on your credit reports and they hound you for payment. The original creditor has washed his hands of the debt and the collection agencies try to strong-arm you into paying a debt that you do not owe them. Your credit is shot, all because of circumstances beyond your control. OK, so years pass and the statute of limtations runs out, making the debt legally uncollectable. That's not to say that you can't still pay it, if you feel you have a moral obligation to do so. What happens now? Once it's paid, it goes back onto your credit reports {the original listing must come off within a specified number of years, depending on the state}. So now, your credit is tanked AGAIN, just for doing the right thing. You may say, "if one is in credit card debt, he shouldn't worry about his/her FICO score, because they don't don't need more credit that thy can't handle". Well, it doesn't just affect credit cards and loans. With bad credit, you are charged higher insurance premiums, can't can't get cable, your home alarmed, get a checking/savings account, etc. If it was just as easy as paying back the money to whomever it is owed, that would be nice. But, there is so much more to it, so rather than putting someone down for looking for answer, it's always good to know what the results of paying will be.
One more thing that these collection agencies do-they buy debts that are past SOL in a gamble that the consumer won't know about the SOL law and then try to collect money on the consumer's ignorance.
Dh and I both went to college as non-traditional (aka older) students. A month after we enrolled, our mailbox was being stuffed full of credit card offers with huge interest rates. For the first week of every new quarter, the quad would have tables set up with credit card companies hustling students. I'm all for capitalism and personal accountability, but come on! They target a certain demographic that they know can't pay. 
