Hi everyone I'm Laura Adams and you're listening to the Money Girl

Podcast. This is the show that brings you the best content, ideas, tools, and resources to help you

live a richer life.

Today, we're going to cover a somewhat depressing topic, which is what happens when you get into financial trouble

and can't pay a debt.

If you've ever been in this situation, or maybe you know someone who struggled with debt, you know how terrible it is.

But what you may not know is that the statute of limitations on debt gives you certain protections

from getting into legal trouble.

In this episode I'll explain what the statute of limitations on debt is and why you must understand

it before paying any amount of old debt.

I'll also review four options to consider if you're not sure how to handle an unpaid debt.

The statute of limitations is a legal term that refers to the time period when some legal action may be taken.

In other words, it's a strict deadline for filing a lawsuit.

When it comes to your personal finances, there's a statute of limitations for how long a debt

collector or creditor can bring legal action against you to recover certain

types of unpaid debts.

It varies depending on the state where you live, what's specified in your credit contract, and the type of debt you have.

For example, the statute of limitations for credit card debt may be as long as 10 years

in a few states, but most are in the range of three to six years.

And some types of debts, such as federal student loans and income taxes,

don't have a statute of limitations because you're actually never

off the hook for them. After the statute of limitations on a debt expires it's

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