Does debt expire or prescribe ? This doubt is very common and even more, there is wrong understanding about one thing and another. Having debt in itself is lousy and can have serious consequences even after the 5 year period of name inscribed in the SPC and Serasa. Let’s understand what it is to expire or prescribe and how it works in practice.
Debt expires: Understand what it is
Debt expires is a well-known term associated with the end of the 5 years of the dirty name in the square. However, there are some points that you need to understand in order to know better what is and the consequences of not having negotiated and paid one or more outstanding debts.
The debt decays, also called expired, when the creditor does not issue the release for discharge within five years. In practice, if you do not know about the debt in this period established by law, the debt ceases to exist and the consumer is not charged for it, it actually does not exist.
What about the debt you prescribe?
In relation to the debt that it prescribes, it can be understood as follows. The creditor states the default of the consumer and does not collect the debt within the stipulated period. If no one charges, after 5 years, the debt prescribes and the customer can not be charged.
And what is myth or truth?
In relation to prescribed debt there are two important points that people usually confuse with myth or truth. It is true that the debt expires after 5 years in the dirty name list of the SPC or Serasa the name is cleared and the person returns to have access to the credit.
This cleanup occurs automatically after this time. It is a myth that debt does not disappear. After this period, the company may continue to charge you on the outstanding amount.
Debt continues in the bank and credit card
If your debt is with the bank or the credit card, know that they continue and the billing as well.
There are cases where financial institutions sell the debts to collections offices and they try to solve the problem. However, depending on the value, the legal costs to enter any action or process can be much higher, which does not end up compensating for the institutions.
Believe. They can and will continue to charge you and have no expired debt!
The advantages of debt negotiation
Negotiating is very advantageous than letting the debt roll and this entails a number of issues involving your present and future. The main advantage of negotiating is to leave the name clean and this allows you to have access to credit, can borrow car or house financing, and get loans.
Besides, you can not stop saying that your past may or may not condemn you. Despite 5 years after the name is denied, your purchase and non-payment history is recorded and this can prevent you from getting credit, especially from the lender you did not receive.
The negative name, duly registered with the SPC or Serasa, is automatically cleaned after five years, according to the Consumer Protection Code.
Follow the terms of the negotiation
More than settle any dispute with lenders, is to keep the negotiation done. Before you go out making debt deals, it is ideal to take some care and organize yourself well not to fall on a cold.
The first tip is to analyze the debt values and the interest that are being placed on top. Normally, Procon can help you negotiate if the interest is abusive. In addition, most banks and institutions have online debt negotiation systems, which is great and makes life easier for the client.
Before making the agreement, already considering payment details and amounts, including fees, put everything on paper. Have your full budget for the month, do not want to commit more than 30% of your salary. If you do the math and conclude that you can settle the debt, then negotiate.
From now on the secret is to keep the agreement up to date so as not to cause major problems, such as loss of trading and anticipation of all subsequent installments.
If you feel better, also consult a lawyer and remember that in addition to money, we are talking in agreement with the bank or creditor and this involves the legal aspect as well. So, forget about this debt-expired story.