The Statute of Limitations on Debt in Ohio

Anyone with debt faces the possibility of a creditor coming to collect at any time. Three sections of the Ohio Revised Code provide protection for Ohioans who have collectors calling on old debt: 1303.16, 2305.06 and 2305.07.

Written Contracts

Ohio Revised Code Section 2305.06 states that actions on any debt incurred as part of a written contract must come within 15 years of the last activity. Section 2305.07 says that a collection upon a debt that is part of a non-written contract, such as a credit card, must come within six years.

Other Debts

Section 1303.16 addresses other debts. Actions on debts that have a definite due date must occur within six years after that date. Collection on a debt that is payable on demand must come within six years after a payment demand is made or within 10 years after the last payment on the debt's principal or interest if no demand has been made. An action on a rejected check must be brought within three years after a demand for payment has been made.

Resetting the Clock

Ohio Revised Code Section 2305.08 says that if a payment, or a promise to pay, is made by the individual who owes the debt, the statute of limitations can be reset.

Collection of an Expired Debt

The Federal Trade Commission says collection of "time-barred" debts, another term for debts past the statute of limitations, is not prohibited by the federal Fair Debt Collection Practices Act. A debt collector, however, cannot threaten to sue you over an expired debt, and if you are sued, you can have the suit dismissed by informing the court that the debt is past the statute of limitations.

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How to Calculate Credit Card Payoff Date

Developing a monthly payoff plan is a great way to get on track to being debt-free. By calculating the amount owed, plus the interest rates of various debts, you'll be able to determine when you will be out of debt. Here's how to find that payoff date.

Instructions

1

Gather all of your credit card information. For each credit card, gather the paper statement or open the window to the online banking interface on your computer.

2

Input the balance of each credit card into a credit card debt calculator. The calculator will have a space for the "balance" of each card.

3

Add the interest rate for each credit card. The calculator will have a column for the associated interest of each card. Add it in and hit calculate.

4

Add the payments for each card. The calculator will ask you how much you want to pay for each card per month. Input that amount and hit "calculate."

5

View your credit card payoff month. Once calculated, the calculator will tell you what month you will be debt free if your payments, balances and interest rates do not change. To figure out the actual day, look to your credit card statements and determine which due date is latest in the month. If you pay according to that schedule, then the last payment due in the month will be the actual day you are debt free!

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How to Recover a Defaulted Student Loan

Defaulting on a student loan can do serious damage to your credit and can lead to wage garnishment and other negative consequences. Fortunately, borrowers who are in default have the option of rehabilitating their loans. Not only does loan rehabilitation stop collection activity on the loan, but it also offers borrowers the opportunity to have negative information removed from their credit report.

Instructions

Rehabilitating a Direct Loan

1

Check and see whether your loan is actually in default. Contact your loan servicing agency, or the U.S. Department of Education, at 1-800-433-3243 to make sure you are actually in default.

2

Explain to your lender that you want to enter into loan rehabilitation.

3

Come to an agreement on a payment that you can afford and that is acceptable to the lender.

4

Make nine payments within 20 days of their due date over a 10 month period. After this, your loan will be rehabilitated.

Rehabilitating a Federal Family Education Loan (FFEL)

5

Make sure your loan is actually in default. Contact the guarantee agency that is servicing your loan to find out. If you don't know which guarantee agency is servicing your loan, call the U.S. Department of Education at 1-800-433-3243 to find out.

6

Tell the guarantee agency that you want to enter into a loan rehabilitation program.

7

Negotiate with your guarantee agency for a payment that is both acceptable to the agency and that you can afford.

8

Make nine payments of the agreed-upon amount over a period of 10 months. All payments should be made within 20 days of their due date.

Rehabilitating a Perkins Loan

9

Check with your school to make sure that your loan is actually in default. Only loans that are in default can be rehabilitated.

10

Explain to your school that you want to enter into a loan rehabilitation program.

11

Work with your school to determine a payment that is both acceptable to the school and that you can afford.

12

Make nine on-time monthly payments, after which your loan will be rehabilitated.

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How to Fix Damage to Credit From Late Payments

Late payments for mortgages, student loans, credit cards or other bills can damage your credit. Your credit report outlines your borrowing, charging and repayment activities, and all of these things combined create your credit score. Unfortunately there is no quick fix to repair damaged credit, however, there are things you can do to improve your credit over time.

Instructions

1

Check your credit report and credit score so you know where you stand. Review your credit history to see how often you were late with payments and how much your credit score was lowered. Credit scores range from 300 to 850, with anything above 720 usually referred to as "excellent." Save this information to compare later on once you begin to repair your credit.

2

Start paying your bills on time as this is one of the most important factors in improving your credit. Late payments stay on your credit for seven years, but the more time that passes with on-time payments the less damaging previous problems can be.

3

Keep at least one of your credit cards, even if you have the urge to cut them all up. Using and paying off credit cards each month shows you can manage credit responsibly and may favorably impact your credit in the long term.

4

Create a budget for yourself so you don't spend beyond your limits. Make sure your income can cover all of your expenses each month. If you find it does not, reduce your expenses.

5

Set up payment reminders to help prevent you from being late with payments in the future.

6

Check your credit report and credit score at least once a year to monitor the improvement over time and compare with where you started.

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Different Standards of Financial Problems

Money management problems may arise for numerous reasons. Proper financial planning requires that you take steps to minimize these risks. Learn to evaluate the scope of your financial difficulties, prior to moving ahead.

Identification

Financial problems arise from being unable to effectively balance your personal income with expenses. Minimal and negative cash flow levels may force you to take on debt to meet expenses. Of course, debt carries interest charges that increase your financial burden.

Features

Financial problems may be a consequence of either lifestyle choices or extenuating circumstances. Lifestyle choices may contribute to spending habits that outstrip your earnings power and ability to save. Extenuating circumstances include medical ailments, accidents and natural disasters that are costly events--without adequate insurance coverage.

Considerations

Credit rating agencies, such as Experian, calculate credit scores to gauge your ability to make payments. The credit score takes debt levels and your prior payment history into account. You may access one free credit report per year through annualcreditreport.com. Credit scores, however, must be purchased.

Misconceptions

Financial difficulties rarely disappear overnight. Stable wealth creation often requires long-term reversals in personal values.

Risks

People struggling with financial difficulties are targets for scams. Check references and perform basic online searches to verify information prior to entering into any business deals.

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Can Collection Agencies Garnish Your Wages Without Any Notice?

Garnishment is one of the most effective strategies available for collecting a debt. Bank garnishment allows a debt collector to freeze a person's bank account while withdrawing money electronically for the debt. Wage garnishment allows debt collectors to receive a certain percentage of the debtor's paycheck each pay cycle. Laws governing garnishment do not require the debt collector to give advance notice of the action.

Considerations

The element of surprise is a key part of a debt collector's garnishment strategy, especially with bank garnishment. The debt collector seeks to tap into the debtor's bank account before the debtor can close the account or transfer all funds to another bank. The surprise factor isn't critical in wage garnishment because the employer must comply with a court order for garnishment.

Process

Debtors paying attention to their affairs should know when garnishment is possible. To proceed with garnishment, debt collectors must file a lawsuit and collect a monetary judgment signed by a judge. A debtor properly managing his financial affairs will know about the judgment and the possibility of garnishment to collect the debt. The debtor can do nothing to avoid wage garnishment if the debt collector wins a garnishment order from the judge, decides to proceed with garnishment and knows where the debtor works. However, some debtors fearful of bank garnishment remove money from bank accounts and have paychecks deposited onto prepaid debit cards.

Default Judgments

Some debtors learn about garnishment only after merchants decline their debit card because of insufficient funds or they receive bank notices about bounced checks, which happens sometimes after so-called "default judgments." Some people stressed out over debt refuse to read or respond to court notices, forcing a judge in the case to award an automatic victory to the debt collector. That's the only move the judge can make if a debtor fails to appear in court for a debt lawsuit. After the default judgment, a debt collector may quickly request garnishment.

Soultions

Debtors with court judgments, debt lawsuits and garnishment should consult with a consumer affairs attorney and prepare to move on to a bankruptcy attorney if the problems are severe. Meeting with a consumer affairs attorney is a good place to start. Depending on the situation, a consumer affairs attorney can file a legal motion to temporarily set aside a default judgment pending a hearing before the judge. The attorney can also contact debt collectors directly to negotiate payment plans or settlements. Bankruptcy becomes a consideration when the debtor is unable to meet daily living expenses because of garnishment and debt collectors are not willing to agree to affordable payment plans or settlements.

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Can My Wages Be Garnished for Alimony in South Carolina?

If you do not make alimony or spousal support payments as required by a South Carolina court, you may be held in contempt of court. This may result in imprisonment for up to one year. However, in most cases, your wages cannot be garnished for failure to make alimony payments in South Carolina.

Wage Garnishment Exemption

South Carolina is one of only four states -- Pennsylvania, North Carolina and Texas are the others -- that does not allow wage garnishment in most cases. Only debts for unpaid child support and taxes may be recovered through wage garnishment. This means that if a South Carolina court has ordered alimony payments in a divorce case, the court cannot use wage garnishment to force the debtor to make his alimony payments.

Court Orders from Other States

Although South Carolina law generally prohibits wage garnishment issued by a South Carolina court, it typically permits wage garnishment for court orders issued by other states. If you are required to make alimony payments by a court in another state, South Carolina may permit garnishment of your wages to satisfy your unpaid alimony. However, garnishment is limited to a maximum of 25 percent of your post-tax earnings under federal law.

Bank Garnishment

South Carolina does not provide the same exemption for bank account balances as for wages. If you owe unpaid alimony in South Carolina, the court may execute an order on your bank to freeze your bank account and transfer the funds in your account to the court for payment of your alimony debt.

Other Earnings

In addition to wages, most other types of earnings are protected from garnishment under South Carolina law. Although federal law permits garnishment of Social Security benefits for unpaid alimony, South Carolina provides a complete exemption for this type of income. South Carolina also provides exemptions for workers' compensation payments, unemployment benefits, retirement and pension distributions, disability benefits and public compensation for crime victims.

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What Is a Consumer Reporting Agency in Regard to the Fair Credit Reporting Act?

The use of credit enables many consumers to finance their education, home, car and many other necessities and luxuries. The information tracked on consumers and their credit habits provides useful insight to many organizations, and protecting this information has become paramount so consumers do not become unknowing victims of predatory schemes or other unfortunate events. Consumers have a right to know what information resides in their credit file, so they can manage it and have it protected.

Consumer Reporting Agencies

The Fair Credit Reporting Act (FCRA) regulates consumer reporting agencies. These agencies, also known as credit bureaus, function as private companies that collect information about consumers and assemble it into a credit report and credit score. The information gets collected from banks, public records, taxing authorities and various companies and creditors. The three main credit bureaus are Experian, Equifax and TransUnion.

Fair Credit Reporting Act (FCRA)

Although the FRCA is a complex piece of legislation, knowing some of the key points is helpful when consumers seek to understand how to protect their credit information and score from mistakes, unscrupulous users or outdated information. Generally, the FCRA serves as federal legislation that regulates how people's information gets used by the credit reporting agencies.

Control of Information

The FCRA requires consumer reporting agencies to limit access to a person's information by only sharing data for permissible purposes, such as loan or credit applications or for a service or employment screening. The agencies also must obtain an individual's consent before giving her information to an existing or potential employer. Additionally, the agencies must allow victims of identity theft to place a fraud alert on their credit record, and they must allow military personnel to place "active duty" alerts on their credit record when serving in a location different from their usual duty station.

Accurate Information

Consumer reporting agencies have a requirement to correct inaccurate information. If the data is disputed by the consumer and is not verifiable, the agency must delete it from the consumer's record. The agency has no obligation to remove any accurate data, unless it becomes outdated.

If a consumer reviews her credit report, finds inaccurate information and files a dispute, the credit reporting agencies have the obligation to investigate the issue promptly. The agency will follow up with the original provider of the disputed information, and if the matter is not resolved to the consumer's satisfaction, the consumer can add an informative statement to his credit file with an explanation of the situation.

The credit reporting agencies must also remove negative information that has become outdated. Information more than seven years old qualifies as outdated, except for bankruptcies, which stay on a credit record for 10 years.

Free Credit Reports

The agencies have the obligation to disclose an individual's credit file to them on request if proper identification is provided. Each individual has the right to obtain a free copy of one credit report every 12 months from each of the three main credit-reporting agencies. The only company authorized to provide these reports to consumers at no cost is AnnualCreditReport.com. Consumers may also contact the company via phone at 1-877-322-8228. A copy of your credit report also can be obtained through the mail. To request a credit report, you must complete a printed form from the company's website and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. The credit report does not include a credit score, although the score is based on information in the report. Credit scores usually can be obtained from the credit reporting bureaus and other outlets for a fee or as part of subscription package.

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How to Add a Rental History to a Credit Report

If you are currently a renter, then consider adding your rental history to your credit report. There are a variety of items that a person can rent for an extended period of time, such as an apartment, vehicle, furniture, electronics, jewelry, office space and so on. Making regular on-time payments on your rental account can definitely improve your credit score. Learn how to properly add rental history to your credit report.

Instructions

1

Order a copy of your credit report from the three major credit bureaus--TransUnion, Equifax and Experian. You can obtain a free copy of your credit report online by visiting AnnualCreditReport.com. Please note that you cannot order your credit report online if you currently have a fraud alert or security freeze on your file--or if the credit bureaus cannot properly verify your identity. In that case, you will have to order your credit report over the telephone with each credit bureau or via postal mail.

2

Review your credit reports. Confirm that your rental history has not been reported to the credit bureaus. Be sure to read your entire credit report a couple of times to ensure that you do not overlook important details.

3

Contact your creditor about your rental account. You will need to ask your creditor to add your rental account details and payment history to your credit report. Let the creditor know that your rental payments are an important part of your credit history and you would very much appreciate it if he would report your account information to the three credit bureaus.

4

Give the creditor time to submit your account information to the credit bureaus. Wait at least 30 days before you check your credit report for updates.

5

Verify that your rental history has been added to your credit reports. Order a copy of your credit report from the three credit bureaus and make sure that your rental history has been added to each credit report. Visit Transunion.com, Equifax.com and Experian.com to order your credit reports.

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Does Using a Debt Consolidation Service Negatively Affect Your Credit Score?

People who use debt consolidation programs need to be aware of the potential impact such methods have on your credit report and credit score. Like any other loan you take out, a debt consolidation loan or service can have different impacts on your credit rating depending on the nature of the loan and how you behave as a credit consumer.

Debt Consolidation

In its simplest form, debt consolidation is a new loan you use to pay off two or more other loans. If you use a debt consolidation service or program, you obtain money from a new lender to pay off your other creditors. By using the new loan in this way, you consolidate your previous loans into one loan, allowing you to make a single payment each month, sometimes at an interest rate that is lower than that of the consolidated loans.

Credit Score

Any time you obtain a new loan, apply for a loan or make payments on your loans, your behavior as a credit user impacts your credit report and credit scores. Positive behavior, such as paying your bills on time and not using all the credit available on your credit cards, generally increases your credit rating, while negative behavior, such as defaulting on your loans or using a high percentage of your available credit, generally lowers your credit rating.

Positive Impact

If you use a debt consolidation program or service to effectively address your debt problems, this generally has a positive impact on your credit score. For example, if you previously had three loans you had trouble paying on time, you're late payments hurt your credit score. If you use your debt consolidation loan to enable you to make monthly payments on time each month, your score will usually improve, because timely payments are a key factor in your credit score.

Negative Impact

A debt consolidation program does not do anything to decrease the amount of money you owe your creditors. Often, these programs extend the terms of the loan and end up costing you more money in the long run while charging you less per month. Like other loans, if you fall behind on your payments or default on the consolidation loan, this will seriously harm your credit score regardless of how poorly or responsibly you use your other lines of credit.

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Can You Garnish a Co-signer?

When an individual takes out a loan or credit account, there is a possibly that he will default or fail to pay back the debt. Lenders look at the credit history of potential borrower to help determine the likelihood that they will fail to make payments. Risky borrowers may be able to convince lenders to give them money by getting co-signers to guarantee their loans. Lenders can potentially garnish the wages of co-signers if borrowers fail to pay their loans.

What is Loan Co-Signing?

Loan co-signing is a process where a third party agrees to accept responsibly for a debt if a primary borrower fails to pay it. Loan co-signers are typically people with good credit whom lenders trust to pay back debts if risky primary borrowers fail to pay. Co-signers are often parents or family members of young people with short credit histories. The U.S. Federal Trade Commission says that in some cases, lenders can attempt to collect debts from co-signers before trying to collect from the primary borrower.

Wage Garnishment

Wage garnishment is a way that creditors can attempt to collect on debts like loans, alimony, child support and overdue taxes. Under wage garnishment, an employer holds back a portion of an employee's pay and sends it to creditors until debts are satisfied. The Federal Trade Commission says that co-signers may be subject to garnishment if a lender wins a judgment against a co-signer in court.

Limitations on Garnishment

While garnishment reduces the amount of pay a debtor receives, there are limitations on the amount of money a lender can garnish. The U.S. Department of Labor states that the most a creditor can garnish in a workweek is the lesser of 25 percent of disposable earnings or the amount by which disposable earnings exceed 30 times the federal minimum wage. Disposable earnings are wages that remain after accounting for certain legal deductions such as amounts paid toward state and local taxes, Social Security and unemployment insurance.

Considerations

Co-signers should consider the dangers of co-signing carefully before agreeing to guarantee a debt for someone else. According to the Federal Trade Commission, co-signers often end up paying for debts and lenders might even be able to take ownership of the co-signer's property to fulfill the debt.

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How to Dispute an Account When the Credit Accounts Are Sold

A credit account is any debt that you accrue through credit alone, without having to provide collateral. Two common types of credit debts are credit card debt and medical debt. If you stop making payments on a credit account for long enough, the creditor will eventually sell the account to a collection agency. A collection agency will then add fees and attempt to collect the debt. Collection agencies also make negative notations on your credit report that remain for seven years from the date the debt first went six months delinquent. A successful dispute against a collection agency will result in the negative information being removed from your credit file.

Instructions

1

Pull your credit reports and check the age of the debt. The older the debt is, the less likely a collection agency is to still have the original paperwork for the debt. This gives you a higher chance to successfully dispute the report.

2

Write a dispute letter to the collection agency requesting that the debt be validated. The Fair Debt Collection Practices Act states that every consumer who requests one is entitled to a debt validation and that collection activity cannot resume until a validation is provided.

3

Send your dispute letter certified mail and request a return receipt. Someone from the collection agency must then sign for the letter when it arrives. The signature card will be mailed back to you. Keep the card for your records.

4

Wait for the collection agency to provide you with a legitimate validation. A legitimate validation should constitute copies of your original agreement to pay the debt, complete with your signature. A legitimate validation may also be a copy of the collection agency's agreement with the original creditor to purchase and collect the debt. A simple printout containing your name and the amount you owe does not constitute validation.

5

Send the collection agency a second dispute letter if you are not provided with legitimate validation. Remind the collection agency that unless it can provide you with proper documentation proving that the debt belongs to you, the negative notation must be removed from your credit report and all contact with you must cease.

6

Mail a copy of your original dispute letter, the signature card from the dispute, copies of your credit reports (with the collection agency notation highlighted), and a letter explaining the situation to each of the credit bureaus that are currently reporting the debt. Explain that you are requesting a full investigation be conducted into the validity of the debt. Due to guidelines set forth in the Fair Credit Reporting Act, the credit bureaus are legally obligated to investigate any disputed items.

7

Wait for the results of the credit dispute. The Fair Credit Reporting Act gives each credit bureau 30 days to investigate the validity of a disputed debt and provide the consumer with the results of the investigation. If your dispute is successful, you will receive an updated copy of your credit report with the negative information removed.

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Factors for Credit Card Debt Forgiveness

Large credit card debts can take years to pay off, and if the amount owed becomes overwhelming, bankruptcy may be an attractive option. But before taking such a serious step, many credit card users and credit card issuers try to work out a debt forgiveness agreement. The credit card company agrees to settle the account for a percentage of the balance, and the card user usually must close her accounts. While debt forgiveness can give you the financial fresh start you need without going through bankruptcy, the process can damage your credit and increase your tax liability.

Credit Card Settlements

If you are having difficulty making the minimum payments on your credit card balance, you may be able to get the card issuer to forgive part of your balance. In fact, some credit card companies may approach you about forgiving some of your debt, as they stand to make more money from a settlement than if they have to write off your account or you file for bankruptcy. While each credit card company sets its own rules for settling debts, your card company will take your credit history, income and current repayment status into account when making a settlement offer.

Charged-Off Accounts

If your credit card account goes unpaid for six months, the card issuer writes off the account as a bad debt for accounting purposes. This process, also called a charge-off, doesn't eliminate your responsibility to pay the debt, but usually means that the credit card company will sell the debt to a collection agency. Collection agencies that purchase debts normally pay pennies on the dollar for charged-off accounts. Because they invest so little in the debt, they are usually even more agreeable than credit card companies about settling for less than the amount owed. However, a charged-off account that goes to a collection agency will leave a serious stain on your credit report. If your goal is to preserve your credit, try to negotiate with the credit card company before letting your card get charged off.

Tax and Credit Consequences

There are some downsides to credit card debt forgiveness. The first is tax-related: The IRS treats forgiven debt as taxable income. If a card issuer charges off or settles a debt of more than $600, it will send you a 1099-C form with the amount of the forgiven or charged-off debt. You'll have to report this forgiven debt as income on your tax return. The second problem with debt forgiveness is that a creditor may report the account as "settled for less than the amount owed," which can damage your credit score.

While there isn't much you can do about IRS regulations, you can negotiate with a creditor to prevent the fact that you settled your debt from appearing your credit report. Before agreeing to settle a debt, ask your creditor to report the account as "paid in full." Be sure to get this agreement in writing before sending the company any money.

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Long-Term Vs. Short Term Debt to Protect Credit

When you are trying to rebuild your credit, it is important to choose the best types of credit that will impact your credit score. Long-term versus short-term credit is one of those decisions.

History

FICO scores have been around for decades, and how they translate your credit has changed little since their creation. They are standard for determining your credit worthiness.

Function

The purpose of a credit score and credit report is to examine your credit history and determine your credit worthiness. Long-term and short-term debt are two aspects of your credit score.

Short Term

Short-term debt is considered the items that can be paid off quickly and whose balances fluctuate on a regular basis, such as credit cards.

Long Term

Long-term debts are those loans that have many payments over several years and are graduated so the balance decreases over time. These include mortgages and car loans.

Comparison

Long-term debt is valued more than short-term debt because it allows them to see how you do on a regular scheduled payment. When you are rebuilding credit, it will protect your credit better to have a long-term loan that you can pay on time.

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Must a Child Pay His Dead Parent's Debt

Many parents and children worry about who will be responsible for any remaining debt when the parent passes away. Parents do not want to pass on debt and any financial mistakes they have made to their children. There are specific laws regarding debt and death. Debt cannot be passed down to children, but it may affect the amount of inheritance they receive.

Debts and Death

Debt does not get passed down after someone dies. However, any assets that the deceased owned must stand good for the debt before they can be passed on to the heirs. For example, if your mother had $10,000 in credit card debt and owned a home worth $50,000, then the home would need to be sold and the debt paid before the rest of the money would be divided among any remaining children. If there is more debt than assets, the remaining debt will be forgiven. However, if a child or a friend is a cosigner on a loan or a credit card account, the responsibility of the remaining debt automatically shifts to that person.

Settling Debts and Dividing the Estate

The executor of the estate is responsible for settling the estate. He will need to send a copy of the death certificate to each creditor and explain that he will contact them once the estate is settled. Then he will liquidate any assets, such as cars, houses, bonds or stocks. The money will need to be divided equally among the creditors. Any assets with a lien attached, such as a home or car, will have the proceeds from the sale go directly to pay off that loan. The remaining assets should be divided by the same percentage going toward each debt.

Working With Creditors

The executor should send each creditor a letter with the final payment. The letter should explain that this is the final payment and that the estate is considered settled and the account should be closed. If there was not enough money to pay the debt off in full, the letter should explain that as well. The creditor should then close the account and forgive any remaining debt. Generally, creditors like to see proof that the estate has been completely liquidated and divided among the creditors.

Life Insurance Vs. Inheritance

Life insurance is not considered a part of the estate. If parents are looking for a way to leave someone an inheritance but have a large amount of debt they are working to pay off, life insurance can solve this problem. Parents of young children should have enough life insurance to provide for the care and education of their children. Older parents may choose to have enough to pay for burial costs or additional insurance to give to their children upon the parents' death.

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How to Donate Eggs for Money in Chicago

Fertility clinics in Chicago, and throughout the United States, that offer in vitro fertilization (IVF) typically pay healthy donors for their eggs. The Cash For Donating website lists the payment range between $5,000 and $15,000. According to Advanced Fertility Center of Chicago, the compensation for being an egg donor at their location in Chicago is $7,000 as of October 2010. Not just anyone can be an egg donor because there are certain qualifications that must be met.

Instructions

1

Evaluate yourself to make sure that you meet the qualifications to be an egg donor in Chicago. Requirements from Advanced Fertility Center of Chicago including being a non-smoker between the ages of 20 and 29, having a body mass index under 30 and live within 40 miles of their clinic. Requirements can vary between the different egg donation clinics.

2

Use the IHR website to identify egg donation clinics in Chicago. You can use the contact details on that page to contact the clinic to let them know your interest and to schedule an initial appointment.

3

Visit the clinic for your initial appointment. At this appointment, you will need to undergo medical tests, such as blood tests and a psychological test, and provide a full medical history. If approved for egg donation, you will be given a medication that will temporarily stop your menstrual cycle, as well as medication that produces multiple eggs in one cycle. You will be given a follow-up appointment for the harvesting of the eggs.

4

Arrive at the clinic on the scheduled day and time for the harvesting of the eggs. This minor outpatient procedure typically takes around 30 minutes. You should bring someone to drive you home. After the procedure, you may be placed on restricted activity for three to five days for recovery. Once the harvesting is complete, you will be paid your donor fee.

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How Can I Have My Ex-Wife's Debts Removed From My Credit Report?

Many life events can affect a person's finances, and divorce is no exception. In fact, divorce can have a devastating impact on an individual's credit score if one or both spouses acted irresponsibly with their credit. When a husband and wife separate, it's important for both parties to review his and her credit reports and decide how to deal with any joint accounts that might exist. Only joint accounts should be listed on both party's credit reports. To remove an ex-spouse's account from your credit report, you will most likely need their cooperation.

Instructions

1

Verify with the creditor that your name is not jointly attached to the account listed on your credit report. Joint accounts obtained during a marriage are valid on credit reports and cannot be easily removed. Dispute the item on your credit report only if it is listed on your report and you are not a joint owner of the account according to the credit card company.

2

Contact your spouse and ask her to have your name removed from any joint accounts. Lending companies can and will transfer the entire debt on an account to the name of the person who will be responsible for it upon request from both parties. They can also close the joint account and divide the amount of the balance into separate, new accounts for each individual.

3

Consult with an attorney familiar with consumer law or debt collection practices. Consider threatening legal action against your ex-spouse to have your name removed from joint accounts. Use an attorney as a mediator between you and your ex-spouse to close joint accounts.

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Free Government Loans for Debt Help

Time are tough. Unemployment continues to rise, and people are seeking help as they are increasingly having trouble paying their bills. And with the government implementing programs to help people pay their mortgages and receive cash for trading in their old cars for more fuel-efficient ones, people naturally wonder if there might be any government assistance available to help them alleviate their debts.

Financial Assistance

The government offers a number of programs to help people who are struggling financially. Most are familiar with Social Security, but those benefits are not available until people reach retirement age. Also, the government has the Medicaid and Medicare programs to offer financial assistance to those who need help paying for health care. In addition, many states offer social services with the goal of helping needy individuals by assisting them with things like foods stamps, day care and in-home health care. For more, see Resources.

Grants

Grants are types of financial aid issued by federal or state governments that don't have to be repaid. The U.S. government does issue grants, but usually they are earmarked for people who need help paying for their education, starting a business or buying a home. There are no government grant programs specifically for people who need help getting out of personal financial debt. To explore whether you qualify for grants, check out the links in References. You might also consider visiting the following websites for assistance with financial aid: UncleSamsMoney grant directory (http://www.unclesamsmoney.com/?hop=lukyouz3) or the FederalGrantSource (http://www.federalgrantsource.org/offer/?hop=lukyouz3) directory.

Loans

The government expects you to pay back loan money, usually with interest. The most common types granted to individuals are student and small business start-up loans. Students loans are issued mostly to help people seeking a college education. For more information about where to get student aid for college and university students, see Resources. Along with student loans, the government tries to assist people who want to start small businesses. For more help in this area, click the SBA link in Resources.

So as you can see, the government does issue financial help to people who need it, but not necessarily for those who want to pay off personal loans or debts.

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Debt Collecting Laws in New York State

If you owe a significant amount of debt, you might soon begin receiving phone calls from collection agencies hired by your creditors. If you're a resident of New York State, though, you have certain rights under state law when it comes to debt collection agencies. For your own protection, you should familiarize yourself with these rights. Otherwise, you won't know if the debt collection companies contacting you are acting illegally.

Intimidation

New York law prohibits debt collection agencies from harassing, threatening, or lying to debtors in an effort to collect the money that they owe. Collection agency officials are not allowed to swear at debtors or threaten to harm them or their property. They also can't tell debtors that they'll go to prison if they don't pay their debts. Misrepresentation is illegal, too; collection agency callers can't falsely claim that they represent a government agency or are an attorney.

Calls

Debt collectors operating in New York are not allowed to call at any unusual time, which means that they can't call debtors before 8 a.m. or after 9 p.m. They are also not allowed to call them at their place of employment if your employer prohibits or disapproves of such calls. They can't call debtors, either, if these debtors have hired attorneys to represent them in connection with the money they owe.

Communicating With Others

Debt collectors in New York state are only allowed to speak directly to debtors or the attorneys representing them. They can't call friends, co-workers or family members of the person who owes money. When debt collectors are trying to find debtors, they can talk to acquaintances of the person who owes money. But they can't say why they are looking for the person or that the person owes money.

Privacy Issues

When communicating with debtors through the mail, collection agencies are not allowed to send postcards or any pieces of mail that identify the senders as being debt collectors. This is an effort to protect the privacy of individuals who owe money.

Proper Notice

Within five days of contacting debtors, collection agencies must send individuals who owe money a written notice. This notice must spell out how much money the debtor owes, the name of the creditor to whom the debtor owes this sum and a statement that if the debtor doesn't dispute the debt within 30 days that the collection agency will consider the amount to be valid.

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How Does a Credit Card Settlement Affect My Credit Score?

Some consumers believe that settling a credit card debt is a great way out of debt. While debt settlement can eliminate some of the debts you owe, it is looked on unfavorably by creditors and will harm your credit score no matter what. Talk to a credit counselor or financial adviser before you decide to try to settle your credit card debts.

Credit Score

A credit score is a numerical representation that some companies calculate to represent your credit worthiness. Creditors consider people with a high credit score a safer debtor over those with a lower score. Multiple factors affect how high or low your score is, but paying back your debts regularly and not carrying too much debt at any time are keys to keeping a good score.

Credit Card Debt Settlement

When you settle a credit card debt, you and your creditor agree to terms that allow you to pay off a smaller portion of the total amount of debt you owe in return for the creditor forgiving the remainder. While this sounds quite appealing as it means you have to pay less money than you actually owe, from a creditor's perspective this can be the kiss of death. Once your current and potential new creditors learn you are unable to pay back your debts, your chances of getting a new loan are significantly lowered.

Score Impact

Each company that calculates credit scores does so with its own formulas and considerations, so it is very difficult to know exactly what impact a single credit card debt settlement will have on your score. However, Yahoo! Finance reports that a single debt settlement can lower your FICO score, one of the most commonly used credit scores, by anywhere from 45 to 160 points. However, this bad impact does not last forever, and the longer the settlement remains on your report, the less impact it will have on your score; the precise numbers differ from case to case.

Low Credit Score

When your credit score gets lowered because of a settled credit card debt, it will be much harder for you to get new loans or favorable terms. For example, according to Bankrate.com, the best credit cards available to those with bad credit scores as of March 2011 had interest rates ranging between 7.9 percent and 19.9 percent. People with bad credit will likely only have the option of the highest interest rates on any new loan.

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If I Have No Assets How Can I Get a Debt Consolidation Loan?

You can get a debt consolidation loan without offering assets for collateral. Unsecured debt consolidation loans do not require collateral and are available from banks, credit unions and other lending institutions. Unsecured loans are guaranteed only by your signature and promise to pay. Examples include unsecured signature loans and unsecured personal lines of credit. The website Bankrate reports that people with good credit scores and a record of on-time payments on their current debts are the most likely to be approved for unsecured loans. Others may still qualify but could be forced to accept a high interest rate.

Instructions

1

Get a copy of your credit report from Annual Credit Report (see Resources). The Federal Trade Commission reports that Annual Credit Report is the only website authorized by the government to offer completely free reports under the terms of the Fair Credit Reporting Act. You're entitled to one free credit report every 12 months from major credit bureaus TransUnion, Equifax and Experian. After receiving your report, order your credit score separately, for a fee, by following instructions on the report.

2

Review your credit report for past-due or delinquent items that may be affecting your score. Privacy Rights Clearinghouse, a nonprofit consumer information company, reports that credit scores range from 300 to 850, with 620 considered the cutoff for "good" credit. A credit score of 720 or higher is considered excellent, according to the agency.

3

Make payments to bring all your open accounts current, if necessary. Also contact creditors or bill collectors to resolve old debts, such as credit card accounts that were closed for nonpayment. Find the contact information listed on the credit report with the accounts. Wait about 60 days for the updates to be reflected on your credit report and in your credit score.

4

Gather billing statements for the accounts you wish to consolidate. Total the amount needed and apply for a loan at a bank or credit union. Apply in person, online or by telephone. Supply all requested information, including the balances and account numbers of the bills you wish to consolidate. Also offer other information, if asked, such as pay stubs and tax statements. Try another lender if you are turned down.

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Mezzanine Debt Structure

Businesses raise capital from several different sources, most notably debt and equity. Debt financing occurs when businesses issue bonds and sell them to investors or take out loans from banks to fund projects. Equity financing is the result of selling shares to investors who are buying portions of ownership in the company itself. However, businesses may have reasons to avoid both these options to some degree. Debt financing can create serious financial burdens in the future, while equity financing dilutes company ownership. A common solution to this issue is a mezzanine debt structure.

Definition

Mezzanine refers to a layered, or multi-platformed, structure. In this case, it means that the business uses multiple types of financing for its projects. A mezzanine structure allows for more than just debt and equity options. It also makes a middle ground by using a combination of the two types; this allows the company to raise funds from various hybrid debt instruments that have characteristics in common with both equity and debt tools.

Types

There are several types of mezzanine instruments that companies have created in this complex structure. One of the most common is preferred stock, which is sold like common stock but does not have the same attached voting rights. It does, however, guarantee a certain amount of dividends according to the company's plan, which makes it as much like a bond as a share of stock. If the company fails and there is any money leftover, investors with preferred stock are paid before holders of common stock. Companies also use convertible bonds, which start out as bonds but allow investors to change them into stock in the future.

Subordinated Debt

Mezzanine is classified as subordinated debt, or debt that holds second place to important senior debts that tend to be larger, secured by assets and made by major institutions. The terms may be interchangeable. Typically, any type of subordinated debt is considered mezzanine debt as well. Because this type of debt is risky for lenders and investors, businesses tend to offer higher interest rates and better returns in order to finance these instruments.

Purpose

Mezzanine debt provides an ideal middle ground. When a company does not want to sell more stock for fear of giving up control of the company, it can use preferred stock to continue financing without the same dangers. Likewise, mezzanine debt is often possible when the company has maxed out its senior debt limits but still needs funding in order to fund growth or expansion.

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What Happens If You Get Turned Into a Collection Agency?

If you are unable to pay a bill and cannot work out the situation with your creditor, your account may be sent to a collection agency. If you are turned into a collection agency, you can expect frequent communications from them as they try to collect your debt.

Collection Tactics

Many collection agencies will try and contact you both by phone and by mail. The collection agency will likely call whatever telephone numbers it has for you, which may include your work and cell phone. If you speak to the bill collector on the phone, she will probably try to get you to pay your bill right then and there, either by using a credit card or an electronic bank draft.

Credit Report

Bill collectors can also put information about your debt on your credit report. Collection accounts can have a very detrimental affect on your credit score, and can affect your chances of getting credit, being approved for rental housing or even being hired for a job.

Your Rights

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects debtors against abusive collection tactics, such as calling you in the middle of the night or threatening you with jail time. The FDCPA also gives you the right to dispute the validity of your debt with a collection agency and requires the agency to stop calling you at work if you tell them that your employer does not permit such calls.

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How to Reduce Credit Card Debt With a Few Simple Techniques

Credit card debt has become so commonplace, some people despair of ever escaping, resigned to their fate. However, it is eminently possible to greatly reduce your debt. It is simply a matter of living strategically, relentlessly committed to this goal. Become intentional about this and you can begin to pay off your bills and reduce your credit card debt.

Instructions

1

Make your payments a week in advance to avoid any late fees. If you can't make a payment, notify your credit card company. Many companies will allow you extra time without a fee, if you provide advance notice.

2

Pay your savings account as you make each credit card purchase. Thus, when your bill comes due, you will already have the money set aside to pay. This tactic will prevent you from purchases you cannot afford and will ensure you are able to pay everything off.

3

Seek creative ways to make payments. Divert other regular expenditures into an extra payment. For example, if you tend to eat out weekly, make the commitment to eat out every other week instead. Thus, you can make a payment with the resulting savings.

4

Start looking at credit card debt assistance. Ask your credit card company for an interest rate reduction. If you are denied, then consolidate your credit card debt. If you have several credit card balances, consolidate them all onto one credit card that offers a lower interest rate. This will save you money on interest. Many credit cards offer a 0 percent interest rate for the first six months.

5

Sell things you no longer need on eBay or craigslist and use the money to make another payment on your debt.

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Ways to Avoid Identity Theft

Having your personal information stolen creates a host of problems. Thieves can open credit accounts in your name and run up huge debts. If the problem goes unnoticed for long, identity theft can destroy your credit rating. Yet, there are ways to protect your personal information and safeguard your credit score.

Get a Paper Shredder

Thieves go to extremes to acquire your personal information. There's a technique called "Dumpster diving," in which thieves rummage through large trash bins or trash cans left on the street in search of documents containing your name and account numbers. Once thieves have this information, they can try to open new lines of credit in your name---auto loans, mortgages and credit cards. And since they have no intention of paying these loans, your name and your credit score suffers. But you can protect yourself by investing in a paper shredder. These electronic devices shred documents and make it virtually impossible for thieves to get your information this way.

Recognize Phishing Scams

Some thieves forgo rummaging through garbage bins and instead prey on the inexperienced or naive. They'll pretend to represent a legitimate business, perhaps your credit card company or other reputable company. They contact you by email or telephone and request personal information "to verify your account." Some even go as far as to create websites and 1-800 numbers that mimic real corporations. However, a legitimate company will never request your personal information by email or phone, and you should never relinquish this information, especially if you didn't initiate the call. If you receive a suspicious call from a company that purports to be legitimate, hang up the phone and contact the company. Use the number listed on your statements if it's a company you do business with.

Computer Privacy

It takes more specialized skill for someone to hack into your computer to retrieve account information. Reduce your chances of becoming a victim by installing anti-spy and antivirus software on your computer. In addition, make sure your computer's firewall is turned on. Firewalls protect your computer from unauthorized access. If you lack computer knowledge, seek help from an experienced computer user or technician. You can also ensure the safety of your personal information by assigning a password to your computer; don't use something as obvious as your child's or pet's name. Remove your Social Security number from personal checks if it's on there. And if you're denied credit for any reason, order a copy of your credit report to check for signs of identity theft.

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Can My Bank Account Be Frozen by a Collection Agency if Two People Are on the Account?

When a person owes money to a creditor and refuses to pay after repeated requests for payment, the creditor may take the debtor to court. If the creditor wins his cases, the judge hearing the case will likely award him damages, called a civil judgment. When a creditor has a civil judgment, he can motion the judge to freeze the debtor's bank account. This includes joint bank accounts.

Debt Collection

A person who owes a debt to a creditor is the only person from whom the creditor can seek payment. A creditor is not allowed to attempt to collect payment from any other person besides the person who owes him the money -- and, in the case of a civil judgment, the person named in the civil judgment. However, a creditor may go after assets that are jointly held by the debtor and another party.

Bank Account Seizure

After a civil judgment has been issued, if the debtor still won't pay, the judge may allow the creditor to seize the person's funds held within a checking account. Before the funds are seized, the account will be frozen, meaning the debtor cannot take money out of it. The debtor is allowed to deposit money in this account, but is forbidden from making withdrawals.

Joint Bank Accounts

A debtor may have a joint account with another person, such as a business partner or a spouse. Just because a debtor holds a joint account with another person does not mean this account cannot be frozen. Otherwise, a debtor would have an easy way to hide assets; he would merely have to place another person's name on the account as a joint account holder.

Considerations

While a freeze can be applied to a joint bank account, it cannot freeze assets that belong solely to the account holder who is not the debtor. If a person can show he controls assets in the account that do not belong to the debtor, a judge must remove a portion of the frozen assets from the freeze and allow the account holder not involved in the debt to have access to those funds.

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Classes on How to Get Out of Debt

Americans owe more than $800 billion in revolving debt such as credit cards or home- equity lines of credit, according to the Federal Reserve's January 7, 2011 Statistical Release. If what you owe is causing you concern, taking a class in managing and reducing your debt may help you regain your financial footing and take more control of your finances.

Benefits

Taking classes on how to get out of debt will equip you with the skills you need and specific strategies for paying off your obligations, understanding your spending patterns and learning long-term financial strategies. By sharing your knowledge and understanding of debt management with your family, you can set a good example for your children or even your parents.

Topics Covered

Look for a debt-management class that offers more than just debt-payment strategies. It is important to learn to analyze the reasons you have accumulated an excessive amount of debt to avoid falling back into the same situation. Attend a class that teaches you to examine your spending habits and how to develop a family budget. A good debt-management class will also cover how to reduce your monthly expenses, pay off your debts faster, give you the pros and cons of consolidation or home equity loans, and teach you strategies for increasing your income.

Types

You can find a debt-management class to suit your personality and needs. Classes offered by your local university's extension office may last for several sessions and cover a different set of topics each time. Check with community colleges, churches and community centers to see what kind of financial classes they may offer. A single class may be offered by a credit-counseling agency or a financial institution. Online debt-management classes enable you to read through the materials on your own schedule and may include an email contact form so you can ask specific questions. Well-known financial counselors often offer their debt-management classes for purchase in the form of a video or DVD.

Considerations

If you take a class through a debt-counseling agency, select one approved by the U.S. Department of Justice's Trustee Program. Research the cost and time commitment involved before signing up for a fee-based class. If you are taking an online class, find one that offers you the opportunity to be part of a support group and one-on-one counseling via email or phone support. Avoid classes that promise to reduce your debt only after you pay a fee.

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How to Become Debt Free by Visualizing

Using "the secret" to get out of debt has become a popular method. Just sit back and think positive thoughts and you can become debt-free by visualizing. However, it's not quite as simple as that. While you can increase wealth and get rid of debt with the law of attraction, you also have to realize that part of the process is making things happen. Be prepared to jump when opportunities present themselves to improve your success.

Instructions

1

Create the right mindset. You need to send the right message to the universe if you want to get out of debt. Remember that the universe does not hear the negatives in your sentences. If you focus on the phase "become debt-free," you may attract more debt. Instead, you should focus your thoughts on "increasing wealth."

2

Visualize money flowing into your life. Think about the ways that you can picture more money in your life. Perhaps you receive more checks in the mail or envision yourself with a fat wallet. Choose an image that is powerful for you and really feel that it is occurring.

3

See your debt decreasing. Take the most recent statements for your debt and locate the portion that shows your current balance. Use a "whiteout" type of product to erase that balance and write zeros over top. Place this altered statement in a prominent position so that you can see it every day.

4

Make a vision board to help you focus on your debt-free life. A vision board is a collection of pictures that help inspire you. You should make this personal to your own desires. For example, you can include images of money, of your dream house or a new car that you want to buy...with cash. These images will help you to focus on your goals.

5

Take action. The more you visualize money coming into your life, the higher your chances of actually receiving it. However, it's important that you take action. Money will not magically appear -- it may come in ways that actually take work, such as a new job opportunity or a business idea. This is the universe answering your problems. Be prepared to take action. Use all extra money that comes your way to pay off debts.

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Line of Credit Modification

A line of credit is typically a one-year interest-only loan in which a bank or other lender approves funds for a borrower's use. The borrower can use these funds as necessary and, upon repayment, the credit line is replenished. A line of credit can theoretically be renewed for years at a time. During the life of the loan, circumstances of the borrower, the lender, or both may necessitate a modification. There are several aspects of a line of credit that can be modified.

Credit Limit

The most common type of modification is an increase or a decrease to the credit limit. Typically, an increase is voluntary, while a decrease is mandated based on financial capability. To be approved for an increase, you must exhibit the capacity to pay the line even if it is fully extended. You must also have sufficient collateral coverage based on the bank's advance rate. For example, a bank may advance 80 percent of the value of an owner-occupied property, but only 70 percent on an investment property. Banks typically review lines of credit on an annual basis. If they discover that a borrower is lacking in capacity or collateral, they may reduce the line to fall within policy guidelines.

Rate

Lines of credit are most often based on a variable rate. The most common rate index is the prime rate as published in the Wall Street Journal (WSJ). The rate will float on a daily basis. This means that the rate will change when a new prime rate is published in the WSJ. So if prime is 3.25 percent on Jan. 1 and 3.5 percent on Jan. 2, the rate will change accordingly. Most rates also carry a spread. For example, if the rate is prime plus 1 percent, the 1 percent is the spread. Common rate modifications are increasing or decreasing the spread or adding a floor. A floor is the lowest rate a line of credit can carry. For example, if your rate is prime plus 1 percent with a floor of 5 percent and prime is 3.25 percent, your rate will not go below 5 percent, even though prime plus 1 percent equals 4.25 percent. Banks typically modify lines to add floors in declining rate environments.

Extension/Renewal

A line of credit is usually a one-year loan with an annual review. At closing, the borrower will sign a loan agreement in which she agrees to provide updated financial information each year. Upon receipt of this information, the bank will review the line and modify the maturity date accordingly. Typically, it will extend the loan for an additional year. If financial information is not available at maturity, the bank may approve a temporary extension of anywhere from 30 to 120 days to give the borrower time to compile the necessary documentation. A borrower in good standing will typically go through this modification process each year.

Term Out

A term out is usually imposed by the bank rather than the borrower. When a borrower has a line of credit that is fully extended without principal reduction, it is considered "evergreen." When a line reaches evergreen status, the bank will modify the loan from an interest-only one-year loan to an amortizing multi-year loan. The rate, term and other conditions will vary based on the borrower's situation. Alternatively, a borrower may no longer find the line of credit necessary and request the modification to a term loan to avoid paying the entire principal balance at once.

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How to Find a Debtor's Address

Debtors are individuals that owe money to companies or organizations, which are called the creditors. Creditors need updated addresses for debtors to ensure that the debtors receive mailings from the creditors, such as statements and payment notices. Oftentimes, creditors may not have a current address for a debtor, so it is important that the creditor gets a current address for the debtor. There are several methods creditors can use to obtain current addresses.

Instructions

How to Find an Address for A Debtor

1

Search directory websites online. The Internet has grown to be a popular search tool for addresses. Websites, such as switchboard or white pages, can be helpful in finding addresses for debtors using their name or phone number. You can also use skip trace websites such as Insight Collect, which is an advanced search engine where you can search for addresses by inputting the debtor's Social Security number.

2

Skip trace by pulling credit reports and calling other creditors. As a creditor, you may have the ability to pull a credit report to find a current address, since this information is public and reported to credit bureau agencies. If not, the credit report can show other creditors that the debtor also owes. The phone numbers of these creditors are on the credit report, so call them and ask them for the address they have for the debtor.

3

Contact the post office. If you do not have a current address for the debtor and you have been mailing information to the debtor, the post office may receive the mailings back if the address is incorrect. Oftentimes, debtors may file a forward of address with the post office so that mail is forwarded to them. In this case, you, as a creditor, should receive a notice from the post office.

4

Contact the landlord of the debtor. As a creditor, you may have obtained information regarding whether the debtor is renting or buying his or her home. If renting, you may be able to contact the landlord for information on whether the debtor has moved. If he or she has moved, the landlord may know current whereabouts of the debtor.

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How to Reduce Debt Payments

Monthly debt payments can take a huge chunk of your income, leaving you financially strapped each month. Getting rid of debt will not only improve your financial footing but also improve your credit score--lowering the cost of borrowing. Unfortunately, eliminating debt from credit cards and other loans is easier said than done. Even so, there are practical and effective ways to lower your debt payments and save money each month. The key is knowing how to negotiate and how to manage your finances better.

Instructions

1

Create a plan. Retrieve credit card statements and other loan balances and calculate your debt. Subtract monthly expenses from your income to identify your extra income. Establish a debt elimination plan and set a realistic pay off date. For example, you can pay off a $2,400 credit card balance in one year by paying $200 a month.

2

Communicate with creditors. If unable to afford your monthly debt payments, call you creditors and ask for a lower monthly payment. Student loan lenders often adjust payments to accommodate debtors, and several mortgage companies offer loan modifications to assist distressed borrowers.

3

Lower your interest rates. According to The Motley Fool.com, you can negotiate a lower interest rate on your existing credit cards by suggesting that you will have to cancel your card and transfer your balance to a a credit card with a lower interest rate. Don't by shy about mentioning the rate you would be willing to accept. Decreasing the rate results in lower minimum payments and will also allow you to put more toward principal.

4

Transfer your credit card balances. Research credit card offers and apply for a low-rate credit card. Transfer your high-interest balances to the new card to save money each month. Be aware that applying for a new credit card places an inquiry on your credit report and may reduce your score by a few points.

5

Consider bill consolidation. Use personal property as collateral and apply for a secured debt consolidation loan or a home equity loan to combine your high interest debts. These loans typically offer lower interest rates, which lowers your monthly debt payments.

6

Increase your income and/or cut back on expenses. Temporarily seek second employment or cut back on unnecessary expenses to increase disposable income and pay off debts completely. Activities and expenses to cut out include eating out, shopping, vacations, cable services or any other expense you can forgo.

7

Refinance loans. Consider a mortgage or auto loan refinance to extend your loan term and reduce monthly payments.

8

Reduce credit card use. Remove credit cards from your wallet and place them in a lock box or ask a trusted relative to hang onto the cards for you. Use cash to avoid new charges and only use credit cards for absolute emergencies.

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Can an Unpaid Credit Card Company Garnish Pay Checks?

If you have unpaid credit card debt, the credit card company can garnish your wages. The credit card company has to sue you in court and a judge has to find in their favor before the garnishment can begin. Regular wage garnishments are subject to federal laws under Title III of the Credit Consumer Protection Act. In addition to wage garnishment, credit card companies can also garnish your state income tax refund to collect on your unpaid debt.

Wage Garnishment Lawsuit

A credit card company sues you by filing a Request and Writ for Garnishment at your local county courthouse. Your local sheriff or court process server serves you with the lawsuit papers that will include the details of your debt, the total amount you owe and a court date. Your court papers also give you a certain amount of time to respond to the suit. Response times vary by state, but can range from between 10 and 21 days.

Garnishment Percentages

Wages you earn that are greater than 30 times the federal minimum wage are subject to garnishment. The amount you earn that is equal to or below 30 times the federal minimum wage is exempt from garnishment. Title III of the Credit Consumer Protection Act limits creditor garnishment amounts to 25 percent of your disposable income or after-tax wages. The only time you can have more than 25 percent of your disposable income garnished is if you owe back taxes or are behind in child support or spousal support payments.

Multiple Garnishments

It is possible for two different credit card companies to garnish your wages at the same time. In this case, the combined wage garnishment percentages have to be less than 25 percent of your disposable income. If the first wage garnishment order is already taking the maximum 25 percent, the second garnishment cannot begin until you pay the first garnishment off. However, if the first garnishment is taking less than 25 percent, the second garnishment can begin. For example, if you have two garnishments and the first one is taking 15 percent of your disposable income, the second garnishment can take up to 10 percent. The percentage of both garnishments combined equals the 25 percent maximum.

State Tax Refund Garnishment

When you overpay on your state income taxes during the year and expect a refund, that money is subject to garnishment. For this to happen, the credit card company must file a Writ for Garnishment (Income Tax Refund/Credit). Title II of the Credit Consumer Protection Act does not limit the amount of money that credit card companies can garnish from your state income tax refund. Credit card companies cannot garnish your federal income tax refund.

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Debt Consolidation Facts & Figures

Chris Viale of Cambridge Credit Corporation states in a Bankrate report that 70 percent of Americans who take out a home equity loan or other type of loan to consolidate credit card debt end up with the same or higher debt load in two years. Debt consolidation does not always lead to debt solutions, because the habits that led to the debt problems are still present.

Not a Quick Solution

Debt consolidation is not a quick and easy solution to your debt problems. It may not hasten the process of escaping debt, and you may not save money either. Often, debt consolidation loans extend the terms of the loan to provide lower monthly payments, and these longer terms mask what may be higher interest rates on these loans to reflect the higher risk these loans can present to lenders. Consolidation to pay off debt will probably be a long-term plan.

Converting Unsecured Debt

You may consider refinancing your home to take cash out and pay off other debts. You can also borrow on a home equity loan to consolidate your bills. These may allow you to have a lower interest rate than what the debts charge individually or the rates you could find on an unsecured debt consolidation loan. However, refinancing and home equity loans are secured by your residence. If you cannot make the payments, you could lose your home to foreclosure. With an estimated 1.2 million foreclosures in 2010, according to Market Watch, this risk must be taken seriously.

Develop a Budget

By developing a personal budget, you may be able to pay off your debt quicker than if you use a debt consolidation loan. Many families can find about 10 percent more money that they were just wasting before they began budgeting regularly. One method is to list your debts, from smallest to largest, and allocate any extra money toward paying off the smallest balance. When you have that paid off, move on to addressing the next one. Others advocate paying off the debt with the highest interest rate first. With a budget, you will have more control over your finances and understand what is going on with your money.

Bankruptcy

Over 1 million people filed for federal bankruptcy protection in 2008, according to the Total Bankruptcy website. By filing a Chapter 7 bankruptcy, these people discharge most, if not all, of their consumer debt. With a Chapter 13 bankruptcy, they develop a court-supervised repayment plan. This is similar to a consolidation, although debtors have less control and may have to pay back only a portion of the debt over a five-year period before it is discharged. If you are deep in debt and having trouble paying your bills, bankruptcy may be your best solution, although it should be a last resort because bankruptcy does major damage to your credit rating.

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How to Get Loan Companies to Remove Negative Items From Credit Report

Loan companies are creditors that lend money to consumers with an agreement that the money will be repaid. However, consumers often default on the agreement, which prevents the loan company from recovering the money they loaned to the customer. If the loan is paid poorly or not paid at all, the loan companies will reflect the bad credit standing with the credit reporting agencies. The poor credit remarks left on your individual credit report may affect your ability to obtain credit from other loan companies when you need it.

Instructions

1

Request a payment for deletion. If you propose this type of agreement to the loan company, it may be willing to accept a one-time payment from you, and in exchange its will remove the entire account, as well as any collection account, related to the debt from your credit file. You can obtain third party services to obtain a payment for deletion, or you may choose to draft the proposals yourself and mail them to the creditor. Upon receipt of the agreement signed by the creditor, you will need to remit payment. The credit must then remove the account from your credit file or you may send in the agreement with proof of payment to the credit report to have the loan company account removed from your credit.

2

Settle the account. You may be successful in obtaining a settlement, if you can not pay the account in full. Depending upon how recent the account is, the loan company may go ahead and remove the credit account from your file. If not, you can dispute the settlement account electronically through the credit reporting agencies. The loan company will not be able to verify you owe the debt, since you settled it, and they must remove the credit account from your file.

3

Assume payments on your account with the loan company. The company may agree to remove negative marks reported on your credit file if you assume regular payments on your loan. You will need to get an agreement in writing from the loan company and you must hold up your bargain of the agreement. If the loan company does not remove the marks, you can send in the documentation to the credit bureau agencies so that the negative marks can be removed.

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How to Get Collections Off Your Credit Report

Individuals fall behind in their payments for a variety of reasons. In the current market, this is becoming a more common occurrence. Identity fraud is also a prevalent problem and can wreck havoc on a person's credit.

Regardless of the cause for collection activity, there are some steps that can be taken to help minimize the negative effects on a credit report.

Do not be fooled by companies promising to "fix your credit report" for a fee. You can do exactly the same thing as they for no fee, and sometimes with better results.

I worked for a major financial institution in their collections department. I am familiar with what can and can not be done.

Instructions

1

OBTAIN A COPY OF YOUR CREDIT REPORT: Obtain a recent copy of your credit report. You will see for certain exactly what your credit report is stating about your credit, and where you need to focus your attention in resolving the damage.

2

DETERMINE IF THE ACCOUNT(S) WENT TO COLLECTIONS DUE TO YOURSELF OR BY IDENTITY FRAUD: If you suspect that someone may have gotten a hold of your personal information and opened up accounts in your name without your knowledge, you need to contact the creditor immediately. They will require that you file a police report and submit it to them for the record. The creditor will do their own internal investigation. Once it is determined that the account is indeed involved in identify fraud, they will report the account to the credit bureaus as involved in identity fraud and will fix any damaging collection activity as well. In this situation, it is best for you to notify the three credit bureaus yourself and request that a permanent memo be placed on record stating that you have been a victim of identity theft.

If an account(s) were not involved with identity theft, then go to step three.

3

DETERMINE HOW BAD IS THE DAMAGE: The required steps necessary to take to resolve the damage depends upon how delinquent the account(s) were/are. An account which has gone one or two payments behind is handled differently then one which has "charged off" or has gone six payments or more past due.

If the account is currently past due by one payment or even a few, it is to your benefit to obviously get current as quickly as possible. If you are unable to pay more then the minimum, contact the financial institution and explain the situation. See if they would be willing to bring the account current if you continue to make the minimum payments. Mortgages will often place the late payments at the "end of the mortgage" and bring the account current. Credit card companies will often do this after three minimum payments have been made. In a situation like this, there is nothing a financial institute can do to change your collection's reporting history (stating that you were/are late on payments). It is the law and they must report the account late if the payments are/were late. Whether you pay someone with the hope of "fixing" how the account is/was reported, it can not be done so don't waste your money.

For those accounts which are considered "charged off" or six or more payments behind, the damage is excessive. The only way of hoping to improve this status on a credit report is by either paying it completely off or by offering the creditor a settlement. Obviously, it is to your benefit to pay it in full since the account will then state on the credit report as "Paid in Full" with a zero balance. If you and the creditor agree so pay a certain percentage of the balance, it will be reported as "Settled in Full" with the remaining balance remaining on the account, though no further collection activity will take place. Either one of these options are certainly better then allowing the balance and the "charged off" status to remain. Remember that the account may be considered "charged off" by the creditor, but collection activity will continue. There is virtually no way you'll ever get any type of loan on your own with such an account status. Being granted a "Paid in Full" or "Settled in Full" status allows for the possibility of future loans.

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What Shouldn't Be On Your Credit Report

Your credit report should be an accurate portrayal of how you use credit and manage your money. If old, inaccurate or misplaced information shows up on your report, federal law gives you the right to request its deletion.

Old Information

The Fair Credit Reporting Act limits the amount of time negative information can stay on your credit reports. Negative information is supposed to drop off your reports after about seven years, though bankruptcy information can stay on for 10 years and unpaid judgments can linger until the state statute of limitations on judgment collection passes. An exception to this rule exists for credit reports pulled for loans and lines of credit over $150,000 or employment offers that pay over $75,000 per year. In such cases, there is no time limit on how long negative information can stay on the report.

Wrong Information

Sometimes creditors and credit bureaus get things wrong. For example, a creditor might post that you missed a payment when you really didn't or a credit bureau might fail to update your report with the information that you paid off a balance. When you carefully and regularly monitor your credit reports, you can spot bad information and get it corrected.

Someone Else's Information

There are couple of situations in which someone else's information might end up on your credit report. The first is identity confusion. This happens when credit information belonging to somebody who shares your name or who has a similar Social Security number ends up on your credit report. The second is identity theft, in which someone takes out credit in your name, leaving you to deal with the consequences. In both cases, you need to contact the credit bureaus and explain the situation. Ask for a security flag or freeze on your credit reports and dispute all erroneous information in writing.

Correcting Your Credit Reports

To correct your credit reports, request a copy from all three major credit bureaus. You can do this for free once a year at annualcreditreport.com. Read them over and identify errors. Then dispute the errors by either sending a written request to each credit bureau or using their online dispute reporting systems. Follow up with each credit bureau: they have 30 days to investigate your disputes. If they can't verify the information you dispute, they must remove it from your report.

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How Do Consolidation Loans Effect a Credit Rating?

Although a consolidation loan itself doesn't create a huge impact on your credit score, your actions following approval of the loan will determine how your score is impacted. If you do your best to continue paying down the loan while making every effort to avoid using more credit, you will see your score rise. If you continue to grow your debt, your score will be even worse than it was when you took out the loan.

Definition

A consolidation loan is usually an equity loan, meaning your home or something else you own is used as collateral for the money that the lender gives you. If you choose to use a consolidation loan, it will wipe out your balances and you will make just one monthly payment toward the loan rather than payments to multiple accounts.

Pros

If you can find a consolidation loan with a lower interest rate than your current credit cards and loans, and if you are fully committed to paying your debt off, a consolidation loan may help you get out of debt for less money. This creates a positive impact on your credit score in two ways. First, making on-time payments is one of the biggest factors in determining your credit score, so if you pay the lump sum each month your credit will get a boost. Also, once you've paid down your debt, you will positively impact your debt-to-credit ratio, which also adds points to your credit score.

Cons

You must be fully dedicated to paying off your debt and keeping it paid off, or else you will damage your debt further. Of people that take out debt consolidation loans, 70 percent end up with the same amount or more debt within two years, according to Chris Viale, a representative with Cambridge Credit Corporation nonprofit credit counseling agency. This phenomenon occurs because your debts are wiped out by the loan, freeing up credit. By spending more, the debt-to-credit ratio rises, you may fall behind on payments and you could find yourself spiraling deeper into debt. All of these actions force your credit score to sink lower and lower.

Considerations

When you apply for any kind of loan---consolidation loans included---the lender typically submits an inquiry into your credit report. This can create a small negative mark against your credit score. However, if you use the consolidation loan effectively by paying it on time each month and avoiding further contributions to your debt, the boost in your score will outweigh the inquiry.

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What Is Non-Consumer Debt?

Americans are no strangers to debt -- MSN Money reports that households with one or more credit cards carry an average of $10,700 in credit card debt. While credit cards and irresponsible consumer purchases gain notoriety in the minds of Americans, many overlook the mass of non-consumer debt that plagues the nation as well. Between student loans, steep medical bills and pricey business financing, many people carry around as much if not more non-consumer debt as they do consumer debt.

About

Non-consumer debt is easily identified by the purpose it serves. Most non-consumer debt acts as an investment in the quality of life of an individual, as opposed to consumer debt, which refers to purchases such as automobiles, clothing, vacations and other consumer goods. Non-consumer debt loans typically carry lower interest rates as well. In most instances, non-consumer debt includes expenses for starting or running a business, necessary medical bills, capital and real estate investments, state and federal taxes and student loans.

Credit Effects

Both consumer and non-consumer debt creditors report your payment habits to the three major credit bureaus. This means that if you default on a medical bill for lack of funds or have a foreclosure on an investment property, you will experience poor credit reporting, collection attempts and likely a low credit score. On the other hand, if you keep your accounts in good standing, non-consumer debt can also improve your credit history. Though credit reports list both types of debt the same way, potential employers may exercise more caution hiring someone with high consumer debt as opposed to someone with high non-consumer debt.

Bankruptcy

When you file for bankruptcy, excess non-consumer debt may help you qualify to file for Chapter 7 bankruptcy, in which a judge erases most of your qualifying debts without requiring you to repay your creditors. Your non-consumer debt liabilities influence the amount of money you can reasonably afford to repay your creditors each month as required under a Chapter 13 bankruptcy, and passing the means test may give you a fresh financial start faster than failing the test and filing for a Chapter 13 repayment plan. The judge presiding over your bankruptcy case can use his discretion to determine which of your debts qualify as non-consumer debts, and are thus exempt from the means test. Your bankruptcy case may even eliminate some of your non-consumer debts, such as medical bills and business expenses, whereas debts owed on student loans and taxes typically do not qualify for discharge in bankruptcy.

Considerations

Ultimately debt is debt, regardless of who you owe it to or what you have to show for it. Though non-consumer loans often finance lifetime investments, it may not be wise to finance your purchase if you can afford to pay for all or part of it upfront. Remember that a non-consumer loan will leave you with a financial obligation to pay your lender, just as a consumer loan or line of credit does.

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Debt Reduction & Assistance

Consumers who are drowning in a sea of debt and are seeking assistance will be relieved to know here are several places to turn for help. From do-it-yourself debt reduction to nonprofit debt management services to consolidation loans, there are many options to consider, especially if you are considering filing for bankruptcy. The keys to successful debt reduction are doing homework in advance, hard work and being honest with yourself.

Doing It Yourself

When there are a stack of unpaid bills on your desk, it may feel like your creditors want you to fail. The opposite is true: creditors are anxious to work with you to get your loans repaid. Start by making a list of your debts, including balances, interest rates, minimum payments and telephone numbers. Call each customer service department and ask if they'll reduce your interest rate: agents are often authorized to adjust rates over the phone. If possible, keep paying the same amount even if your minimum payment is reduced, because more of your money will be applied to your principal balance, and your debt will be paid off faster.

"Pushing" your payments is a terrific way to reduce debt quickly. Instead of spreading out your payments over multiple bills, put as much money as possible toward your highest-rate bill, while paying only the minimums on the rest. When the first bill is paid, apply that payment to the next highest rate, continuing until you are debt-free. The website Vertex 42 offers several free downloadable debt reduction worksheets to help you on your way.

Debt Management Plans

If you are behind on your payments or about to fall behind, consider credit counseling and debt management. Contact the National Foundation for Credit Counseling. The NFCC will give you a one-hour consultation with a certified agent, free of charge. If you are eligible, the counselor will enroll you in a debt management plan.

In a "DMP," you will make a combined monthly payment to the credit counseling organization for up to five years. The organization will disburse funds to your creditors on your behalf. A DMP is not a loan, and your accounts will be closed. In exchange, the counselor may be able to reduce your interest rates, eliminate fees, and lower your payment. The counselor also works with creditors so your credit history of on-time payments is reestablished.

Debt Consolidation Loans

Debt consolidation loans are effective but very tricky. If your debt problem is the result of a temporary job loss or medical bills and not overspending, consolidation loans can offer low interest rates and initiation fees. Home equity loans, a very common type of consolidation loan, are often tax deductible. It's also possible to refinance your car loan to pay off debt. More scarce are unsecured debt consolidation loans (meaning, the loan is not tied to an asset, like a house or a car.) Be wary, as these loan terms are not likely to be friendly.

Risks

The best case scenario is that you're able to make on-time payments and have the means to "push," as described above. If not, be advised that debt management plans can be reported to credit bureaus, which could lower your credit score. Keep this in mind if you need to apply for a loan in the near future. A DMP looks better than late payments, however.

Although debt consolidation loans may not affect your credit as harshly, realize that you are securing debt by your home or car. If you default, the asset could be seized. If you are not financially disciplined, simply acquiring a new loan to pay off the old means the behavior hasn't changed. If you ring up more debts, you'll be in deeper water and at much greater risk of default.

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