The right thing to do is pay the debt. You took the wheels, so you need to pay for them. You could probably scratch together $1,100 and make this whole thing go away. I’m pretty sure a lot of legal and collection costs, as well as interest, have been added over the years. But at this point, you can probably get them to settle for the original amount owed.
Now, can they still chase you under the statute of limitations? That’s a matter of state law, and since I’m not an attorney, I’m not up to speed on every law from state to state. Besides, I don’t like the idea of using that kind of argument to get someone out of debt.
Honestly, this is the real world we’re talking about, Brian. You’re going to have to deal with this, because even if there is a statute of limitations, most collectors will still try to chase you to the ends of the earth. And for $1,100 you can get them out of your life and erase a big black mark from your credit. It’s always better to have a transaction listed as “bad debt that has been settled” rather than simply “bad debt.”
But at this point, I wouldn’t run out and buy another policy. If you’re getting it free of charge, let your employer handle the work. Then, if you ever sense things are going downhill at your job, you can start shopping for a long-term disability policy at that point. Right now, there’s no reason to pay out of pocket or have a second one.
* Dave Ramsey is America’s most trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover andEntreLeadership. The Dave Ramsey Show is heard by more than 5 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
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