How long can delinquent credit card debt be collected?

Credit card delinquencies in the United States saw a concerning rise in the second quarter of 2024, with nearly 9% of cardholders falling behind on their payments. While there are likely numerous reasons for this uptick, one factor playing a role is today's record-high credit card interest rates, which average over 23% currently. Rates that high make it challenging for cardholders to balance everyday expenses alongside their escalating credit card bills, leaving many vulnerable to missed payments and compounding debt.

But falling behind on credit card payments can have serious repercussions on your finances. Missed payments are generally reported to credit bureaus after 30 days, causing a drop in your credit score. If the delinquency extends past 90 days, the impact on your credit score deepens further, as it signals a more severe financial problem. Late fees also add up and interest continues to accrue, making the debt harder to pay off with each passing month. 

If your credit card debt remains delinquent for an extended period, it can have long-lasting effects, damaging your creditworthiness for years. At some point, though, this type of debt will stop affecting your credit score. This raises an important question: How long can delinquent credit card debt be collected and when will it stop influencing your financial standing?

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How long can delinquent credit card debt be collected on?

The timeline for collecting credit card debt is more complex than many realize. The Fair Credit Reporting Act (FCRA) mandates that most negative information, including delinquent credit card debt, remains on your credit report for seven years from the date of your first missed payment. However, this only limits how long it can appear on your report — not how long creditors can attempt to collect it.

Each state has its statute of limitations for collecting debt and most states allow creditors to pursue credit card debt for longer periods. That typically spans between three to 10 years, though some states permit collection for up to 15 years. After this period, a creditor cannot take legal action to force payment, but they may still attempt to collect the debt voluntarily. Even after the statute of limitations expires, some creditors may try to contact you or sell your debt to collection agencies. 

In fact, delinquent debt can be sold and resold multiple times, which can result in the collections process stretching indefinitely — albeit without the legal force to compel payment once the statute has run its course. When the original creditors give up on collecting, they often sell the debt to collection agencies for pennies on the dollar. These agencies can then resell the debt to other collectors. Each new owner may make fresh attempts to collect, though they must still operate within state-specific statutes of limitations.

Some of the key factors that affect collection timelines include:

• The state where you resided when opening the account
• Whether the creditor has obtained a court judgment
• Any partial payments made (which can restart the statute of limitations)
• State-specific laws regarding debt collection practices

If a creditor obtains a court judgment, the collection timeline often extends significantly. Many states allow judgments to be renewed repeatedly, potentially keeping the debt legally collectible for decades.

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What to do about your delinquent credit card debt now

If you're dealing with delinquent credit card debt, addressing it sooner rather than later can help you avoid long-term financial consequences. Fortunately, there are several debt relief options available to help manage or reduce what you owe:

• Debt consolidation: A debt consolidation program or loan can combine multiple high-interest debts into a single, manageable monthly payment, often at a lower interest rate than your credit cards. 
• Credit counseling: Credit counseling agencies offer guidance and create a structured debt management plan to help you manage your payments and reduce interest charges. These programs often work with creditors to reduce interest rates and fees, making repayment more manageable over time.
• Debt forgiveness: If you're facing significant financial hardship, debt forgiveness might be a viable option. In this case, you or a debt relief company negotiates with creditors to accept a reduced amount of the total debt as payment in full. 
• Bankruptcy: If you're unable to manage your debts even with consolidation or settlement, bankruptcy may offer a legal path to eliminate or restructure what you owe. While it has serious implications for your credit, it can be a fresh start for those facing insurmountable debt.

The bottom line

If you are behind on credit card payments, you may be tempted to wait out the collections process, but it's important to take action promptly to avoid escalating efforts and further damage to your credit. By exploring the debt relief options that align with your situation, you may be able to reduce your financial burden and work toward a more stable future. While delinquent debt may ultimately stop impacting your credit at some point, taking control now can prevent additional stress, financial strain and potential legal issues down the road.