Debt over 5 years old and the truths you need to know
Who else is having to deal with debt? Come explore with us one of the aspects that most intrigues Brazilians: debt that is more than 5 years old.
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Debt can keep anyone up at night. If you’re one of those people, you’re far from the only one who’s losing sleep over debt.
Recent research has shown that almost 78% of the Brazilian population considers itself in debt
And when it comes to debts and having your name negatively listed, it is impossible to escape one of the biggest 'urban legends' that has been created around this topic: debts that are more than 5 years old and what happens to them after this period.
To clarify this topic and keep all our readers informed about what this practice involves, we had the idea of creating this material!
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In today's content, you will understand a little more about what is part of debt over 5 years old and the main truths you need to know about the subject.
Debt over 5 years old and the truths you need to know
One of the main questions people with a negative credit rating have is what happens to a debt that has been active for more than 5 years.
In fact, you don't even need to have a negative credit history to have heard the old story that these debts have a certain validity period and that they cease to exist.
While the vast majority of people believe that this debt “expires” over time and ends up ceasing to exist, others believe that the debt remains there, firm and strong, “dirtying” the name of those who default on their payments.
But after all: what happens to a debt over 5 years old?
Unlike what the vast majority of consumers think, this story of debt that “expires” is yet another one of the famous fake news that begin to emerge over time and gain more and more strength among the public.
In fact, this statement is not only unfounded, but the debt – or debts – in question can indeed be collected after this period.
What caused all this confusion is that after 5 years the creditor removes the debtor's name from its collection list.
This is what ends up giving the impression that the debt is in the past and no longer exists.
But what happens is that your name may even come off the dreaded negative list, but your debt will probably remain there, awaiting payment.
This happens precisely because this debt represents part of the agreement that was made between the creditor and the debtor. And since this agreement was not properly fulfilled, the debt still remains “haunting” the consumer in question.
What happens after a debt that has existed for more than 5 years has an “anniversary”?
Once the debt has been paid for 5 years, the consumer can no longer have their name negatively impacted because of it. However, collection can still be carried out.
Even if the debt has expired, the charges financial Informal payments can still be made. That is, you may still receive calls, letters and other forms of communication requesting payment of this debt.
What is better: waiting for the debt to complete 5 years or paying it off?
After learning more about this issue of debt, many people may think that leaving the debt behind and waiting for this period to pass is the best option, but that's not how it works.
Just like any other debt, these debts – whether from credit cards or banks – have interest rates that can make any consumer's hair stand on end!
And if they are not controlled as quickly as possible, these debts have the incredible – and destructive – potential to become a huge snowball.
And this messes up any kind of financial planning a consumer might have.
Therefore, the tip is: don't wait for this period to pass. Pay off your debts as quickly as possible.
How to deal with this type of debt?
We know that having to deal with these common everyday debts and still having money to pay off these previous debts is not an easy task.
And the agencies responsible for credit regularization also understand this consumer need. And that is exactly why events aimed at paying off these debts were created.
An event that is becoming increasingly well-known and is held to serve this segment of the population is the Feirão Serasa Limpa Nome.
In it, Serasa – the company that is a reference for credit analysis in the country, gathering data sent by stores, banks, financial institutions and the like – organizes special campaigns in several cities across the country.
The purpose of these efforts is to help consumers leave their debts behind once and for all, pay off their debts and clear their names more easily.
With the number of indebted consumers growing, these events tend to attract a lot of interested parties.
After all, this is a great opportunity for those who are in debt and want to resolve their financial situation.
And all this success happens for a reason: in most cases, these campaigns offer excellent discounts and special conditions for paying off old debts.
This ultimately makes debt repayment more accessible to everyone.
Conclusion
As you can see, having a “clean name” is something that we must give due importance and attention to.
And although a large part of Brazilians are experiencing this situation – as we mentioned at the beginning of the text – it is important to know how to deal with this type of default.
So, the tip is: do you have any debt of the type that caused your name to be blacklisted?
Try to contact the companies and bodies responsible to resolve your situation as quickly as possible.
This way, in addition to avoiding potential headaches due to old debts, you keep your name clean in the market.
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