economy
Which states have the shortest statutes of limitations on credit card debt?
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TL;DR
- Credit card debt nationwide is nearly $1.3 trillion, with many people relying on short-term borrowing due to economic challenges.
- The statute of limitations is a legal deadline for creditors to sue borrowers for unpaid credit card debt, varying by state.
- Most states have statutes of limitations between three and six years, depending on how credit card agreements are classified.
- Arkansas, Delaware, Mississippi, and North Carolina have some of the shortest statutes, typically three years.
- Once the statute of limitations expires, creditors generally cannot sue to recover the debt, but they can still request voluntary payment.
- Making a payment or acknowledging a time-barred debt can, in some states, restart the statute of limitations.
- The statute of limitations is separate from credit reporting timelines, which can extend up to seven years.