Dave Ramsey to 21-Year-Old Father of Two: 'You Have to Become a Person of Extreme Integrity'

"When you get your $250,000, you write a check and you pay the people that you owe because you screwed them, correct? Now we have $180,000."

"The statute of limitations on debt is the legal window during which a creditor can sue you to collect. For auto loans, most states set this window between three and six years."

"The statute of limitations does not erase the debt. The lender can still contact him, sell the debt to a collection agency, and report the delinquency."

"A large personal injury settlement is exactly the kind of event that prompts a creditor to pursue a judgment before the statute of limitations expires."

A 21-year-old father owed $70,000 on a car loan and planned to wait for the debt to fall off due to the statute of limitations. He was about to receive a $250,000 settlement after being shot. Dave Ramsey advised him to pay off the debt immediately with the settlement funds. The statute of limitations does not erase the debt, and creditors can still pursue collection. Receiving a large settlement makes him a target for creditors, making it crucial to settle debts promptly.

Read at 24/7 Wall St.