How to Make a Debt Chart

If you want to manage your money wisely, learning how to keep track of personal debt is a worthwhile endeavor. It's easy to owe more than you make without realizing it if you don't have a system in place to manage your spending habits. One way to monitor your expenses is through visual means. You can make a debt chart to have a clear picture of how much you owe your creditors and how long it will take to bring your balances to zero. In addition to helping you stay organized, a debt chart can also provide a source of encouragement as you see your balance shrink with each payment. There are many ways to create a debt chart; choose the one you're most comfortable with and that visually resonates with you.

Instructions

1

Calculate how much debt you owe. Write down -- in a notebook or using your computer -- the name of the creditor, the amount of debt owed and the number of months you want to pay down the expense. This may (and, if possible, should) exceed the minimum amount required by the creditor. Calculate the amount of your monthly payment per creditor.

2

Lay the poster board on the floor or on a table in front of you. Determine the number of rows you need to create a chart; use one row per creditor. Measure equal distance between the rows and draw a straight line across with your pencil.

3

Cut the red and green construction paper into squares that number the amount of months you want to pay off your debt. Make sure the squares are of equal size by first measuring with your ruler and marking with your pencil. Write on each red square the words "Owe" followed by the monthly payment amount. Write on each green square "Paid" followed by the monthly payment amount, the name of the month and the year. Do this for each creditor.

4

Label the top of each row with the name and brief description of the creditor. For example, "Main Street Bank credit card." Also include the total amount you owe, such as "$5,000. Glue the red squares along the corresponding rows until you have one continuous red line.

5

Glue a green square over a red square with each payment you submit. If you pay more than the monthly amount you allotted in your budget, write the difference between the increase and the monthly payment below the regular payment line. Do this for each creditor each month to have a debt chart in which you can easily see your debt obligations disappear.

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Annual Credit Report Laws

The website Annualcreditreport.com reports that a credit file disclosure---better known as a credit report--details all of your information held by consumer reporting agencies that may be provided to a third party via consumer report. Mortgage lenders, auto financing lenders or credit cards may request a copy of your credit report to see if you are a credit risk.
Your credit file also lists all companies who have received copies of your credit report, certain medical information, pre-approved credit offers and credit and insurance company reviews. (References 1)

Free Annual Credit Report

Thanks to the Fair Credit Reporting Act (FCRA) , you are entitled by law to receive a free copy of your credit report from each of the three national consumer reporting agencies on an annual basis. The companies are Equifax, Experian, and TransUnion. You can obtain individual reports or all three reports at once by visiting the Annual Credit Report website. (References 2) Additionally, some states require credit reports be made available to consumers at no charge. These states are Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont. (References 1)

The Federal Trade Commission says consumers should take advantage of the free annual credit report so they can fully understand their credit. You should review your report to ensure all information is correct, current and complete, especially if you plan to apply for a loan or a job. Credit reports also allow you to monitor if anyone has used your personal credit information illegally. (References 2)

Other Free Credit Report Requirements

The FTC notes that according to federal law, consumers are eligible to receive a free credit report if a company denies your credit application, insurance application or your employment application on the basis of your credit. You must request the report within 60 days of receiving notice of such an action; the notice will have all contact information for the credit reporting agency involved.

Other provisions entitling you to a free credit report include unemployment (as long as you plan to seek employment withing 60 days), reporting inaccuracies because of fraud or identity theft and being on welfare. (References 2)

Credit Report Disputes

The FCRA requires consumer reporting agencies and information providers to correct any inaccurate or incomplete information listed on your credit report. If you see an error, it is your responsibility to inform both the credit agency and the information provider in writing and request a correction.

Unless it can classify the dispute as frivolous, the consumer reporting agency must investigate your claim and submit its findings to the information provider. At that point, the information provider is obligated to investigate and review the information in dispute, then report back to the credit agency. If your dispute is successful, the information provider is required to notify all three consumer reporting companies. The credit reporting agency must then send you written results and a free copy of your credit report.

If your dispute is not successful, you may request that a statement of your dispute be included in both your credit file and with your future credit reports. If you inform an information provider that an item is under dispute, it must include that information when it reports to a credit agency. (References 2)

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What Is Credit Card Debt Counseling?

If your credit card debt has gotten out of control, credit card debt counseling can be a beneficial alternative to more drastic actions, such as bankruptcy. Credit card debt counseling through reputable organizations helps you to understand your financial situation in detail, as well as what steps you can take to get and keep yourself out of debt in the future.

Choosing a Counselor

Many different organizations offer credit card debt counseling services, but not all of them are working in your best interest. Even when they claim to be a nonprofit organization, some charge high fees that take money away from what you could be paying on your credit card bills each month. Look for credit card counselors that are certified in credit card debt counseling. Any counselor you choose should also be affiliated with a recognized professional organization, such as the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

Getting Counseled

Counseling may take place in person, via telephone or online. No matter which route you choose, a counselor will ask you for specific details about your income and expenses, and will help you draw a realistic budget. This will help you track where your money goes, as well as identify areas where you should concentrate on changing your habits. While a credit card debt counselor is not qualified to offer legal opinions, she will discuss your available options with you. Information discussed with your counselor is kept confidential, and counselors may suggest follow-up meetings in the future to track your progress.

Debt Management Plans

One option that a credit card debt counselor may offer you is enrollment in a debt management plan (DMP). Under such a plan, a credit card debt counselor contacts creditors that hold your unsecured debt and negotiates waived fees, lower interest rates and sometimes different due dates for your payments. You then agree to make one lump sum payment to your credit card debt counselor each month, which the counselor then disburses to your creditors on your behalf. If you can stick to a strict budget, do not wish to negotiate terms with creditors yourself and do not wish to file for bankruptcy, a DMP can be a useful solution.

Considerations

As with other forms of counseling, you will get out of credit card debt counseling what you put into it. Additionally, as personal finance expert Liz Pulliam Weston notes, many people wait until they have gotten too far into debt to seek credit card debt counseling. Other options, including bankruptcy, may be faster ways to wipe out your debt and move on with your life. However, if you haven't waited too long and can stick to the advice your credit card debt counselor gives you, it may be the right solution for you.

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How to Write a Pay for Delete Letter

Cleaning up your credit history can prove challenging if you have collection accounts or charge-offs on your credit file. Creditors and lenders report both items after nonpayment on an account after several months. Paying off these old bills doesn't result in an automatic deletion of the item. If you want to pay off the debt and improve your personal score, write a pay-for-delete letter. This involves a creditor or collection agency agreeing to delete a negative item upon receipt of full payment.

Instructions

1

Get the name of the company that owns the debt. Creditors and lenders tend to sell old debts to collection agencies. Contact your creditor or lender first to see if it owns the debt. If not, get the name and address of the collection agency that purchased the account.

2

Check your finances. You can offer to pay the full balance in return for a deletion, or offer to settle the debt for less than you owe. The more you pay toward the debt, the better the odds of a creditor or collection agency granting your request.

3

Draft your letter. Start the letter by mentioning your name and account number. Mention your plans to pay or satisfy the unpaid balance, if the company agrees to immediately remove the negative item from all three of your credit reports. State how much you can afford to send the company -- either the full amount or a settlement.

4

Do not acknowledge owing the debt in your letter. Admitting that you owe a debt can restart the statue of limitations for creditors to collect on a debt. Mention in your letter that you're not acknowledging the validity of a debt. Rather, you're agreeing to pay in order to clean up your credit report.

5

Ask for confirmation in writing: Conclude your letter by asking the company to agree to your terms and delete the negative item upon receipt of your payment. Ask the company to put the agreement in writing using a company letterhead and send it to you, signed.

6

Send your letter by certified mail: To ensure that a creditor or collection agency receives your letter, use certified mail. Someone from the company must sign for the letter, and you will then receive a return receipt.

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How Can I Break My Apartment Lease in a Medical Emergency?

Medical emergencies can lead to bills totaling thousands of dollars, making it difficult or impossible to continue paying rent for an apartment. Breaking the lease and perhaps moving in temporarily with a friend or relative can help with finances. However, getting out of a lease because of a medical emergency is not easy. The lease is a contract that typically doesn't include early termination clauses for medical reasons. The New York Times reports that it is very difficult to break a lease without penalty unless you negotiate with the landlord. This is true, even in a medical emergency.

Instructions

1

Review your payment history with the landlord to confirm that your rent is current. Breaking the lease with the rent current could make for an easier negotiation.

2

Consult with a real estate attorney. Take proof of your medical emergency, such as hospital bills, to the meeting. Ask the real estate attorney to write a letter to the landlord indicating that you are struggling financially because of a medical emergency and must break your lease. Instruct the attorney to ask that the landlord terminate the lease without penalty because of your medical problems.

3

Write your own letter to include with the letter from the attorney. Indicate that because of your medical emergency you have no choice but to move out of the apartment in 60 days and that you are hoping for a fair resolution of the lease agreement.

4

Send the letter by certified mail for impact and documented proof of notice to vacate. Giving the landlord 60 days notice gives the landlord time to find a new tenant. The letter from the attorney will indicate that you have thought this through carefully and that you are ready for a legal battle if necessary.

5

Follow up in four days with a phone call to the apartment manager if she has yet to reach out. The letter is a tactical move to determine if the landlord plans to hold you to the terms of the lease agreement.

6

Remind the landlord about the letter and tell her you are sorry that you must move out in 60 days because of issues stemming from the medical emergency. Ask the landlord if she is willing to let you out of the lease without penalty because of your special circumstances.

7

Break the lease by negotiating with the landlord. Get your attorney involved if necessary to reach a settlement on the remaining months on the lease if necessary.

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How to Stop Connecticut Unemployment Claims Online

The Connecticut Department of Labor processes requests and inquiries regarding unemployment benefits via the TeleBenefits Line and Connecticut Department of Labor website. If you are currently receiving unemployment benefits in Connecticut and secure a new job, you must stop your current unemployment claim. While this can be done by mail with your claim form, you may have already sent it in before you got the new job. If so, you can take care of stopping your Connecticut unemployment benefits on the Web.

Instructions

1

Visit the Connecticut Department of Labor's Unemployment Insurance Online Claim Center website (ctdol.state.ct.us). Click on "Perform Claim Inquiry."

2

Click on "Create An Account" if you do not already have an account. You need to enter your name, address, phone number, date of birth, Social Security number, email address and security questions to create the account.

3

Log into the account with your user ID and password.

4

Select "Perform Claim Inquiry" from the available options once you are logged in. In the text box that appears, enter in your request to stop your unemployment claims benefits. Click "Send Inquiry" when you are done and it will be sent to the claims center. The processing time for inquiries is two to three business days. Once your request has been received and processed, you will get a response letting you know it has been taken care of.

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Louisiana Garnishee Laws

Garnishment is the process by which a creditor obtains a court order to intercept part of an employee's paycheck and use it to satisfy an outstanding debt. Though federal law acts as the ultimate legal authority that provides Big Picture guidance to the garnishment process, Louisiana also has well-developed rules that function to make sure all parties are being served as fairly as possible. The process of garnishment begins when a creditor declares in court that he is owed a valid debt and has exhausted other options for collection.

Exempt Income

While the creditor and debtor are the initial two parties to garnishment proceedings, there is a good chance that a third party, know as the garnishee, will be forced to become involved, especially if the debtor is employed. As garnishee, an employer is bound by law to collect and remit the portion of income earned by a debtor that is legally at risk. However, the garnishee should be aware that certain kinds of income, such as retirement benefits and pensions, as well as most types of accident, disability or health insurance payouts are not subject to garnishment.

Garnishment Limit

Garnishees also should be aware of the legal limit, imposed by federal and state statutes, on the portion of paycheck that can be held by court order. There are two controlling limits in Louisiana. The employer should use whichever method results in a lessor payment. The first method states that 25 percent of an employee's paycheck can be taken, while the second method allows the harvest of any amount earned in a week that exceeds 30 times the federal minimum wage.

Court Order

A garnishee should never begin taking earnings and remitting them to a creditor without having in his possession a Writ of Garnishment. For a garnishment to proceed in Louisiana, there first must be a judgment in place from the court that decrees the debt valid. After that, the creditor must ask for the issuance of a Writ of Garnishment. Only with such a writ in hand and believed to be valid should the employer begin holding back wages.

Legal Help

The garnishee, unfortunately, finds himself stuck in the middle of what can be an uncomfortable situation, especially if he has a good working relationship with an employee who is being garnished. If at any point during the process he is unclear about his legal obligations, it would be a great idea to consult with an attorney who is familiar with the law and who could offer guidance.

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