Advantages of Credit Cards for Teenagers

Getting a credit card is a sign of maturity, and must be handled in a mature way. Credit cards can help teenagers learn skills that will be useful later in life. They also run a risk of teaching poor financial management practices if the teenagers fail to make payments on time. Having a credit card when living at home allows teenagers the responsibility of owning the credit card, while still receiving guidance from their parents. Sign of Maturity Allowing teenagers to own a credit card is a way to show that as parents you feel they are...

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Nonprofit Debt Relief Organizations in California

Credit counseling organizations advise consumers on managing their personal finances and debt. These organizations have trained counselors that explain financial matters and work with clients to develop personalized plans and budgets for debt relief. According to the United States Federal Trade Commission (FTC), consumers should use caution when selecting any type of debt relief organization. The FTC recommends selecting agencies that have received...

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How Long Will Debt Consolidation Damage Credit?

The damage to your credit comes not from consolidating your debt, but mainly from how you handle the consolidation. While both consolidation loans and debt management plans cause a small initial negative impact on your credit score, those may be outweighed by the positive impact of paying off your debt and keeping it paid off. However, often people fall further into debt as a result of consolidation because they don't learn the lesson of becoming financially responsible prior to taking on the consolidation. Consolidation Loans When you...

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About Refinancing Credit Card Debt

If you are carrying balances on high interest rate credit cards, you may benefit from refinancing your credit card debt. Instead of making minimum payments on credit card balances that only seem to get larger each month, it is much better to move credit card balances to financing options with terms that allow more of the money you pay to go toward reducing the actual principal of the debt you owe. Significance Since credit card interest rates tend to be quite high, often refinancing credit card debt is the best solution for paying off balances...

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Help for Renters Forced Out Due to Foreclosures

Contacting a lawyer is the first thing you should do if you've been forced out of your rental home by foreclosure. State laws may give you the legal right to remain in the rental home until your lease expires --- despite the foreclosure. The federal Protecting Tenants at Foreclosure Act offers similar protection. It may not be too late to get back into your home or sue for damages if you were illegally forced from your rental home during a foreclosure. Tenant Rights Massachusetts Poverty Law Advocates, a nonprofit legal-aid organization,...

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How Do I Qualify for a DMP?

If you're having a hard time paying your debts, you may want to consider enrolling in a debt management program (DMP), which can help you negotiate more affordable monthly payments. DMPs are usually set up through a third-party group. Debt-management companies work with your lenders to negotiate different payment terms, lower interest rates and the elimination of late charges, to ease your financial burden. The catch is that not everyone qualifies...

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The Best Debt Management Programs

The Federal Trade Commission and most consumer advocate groups state that the majority of debt management and credit repair companies are scams that do more harm than good. There is no quick fix to get rid of debt or manage it effectively overnight. A good debt management program focuses on the long term, forcing people to make lifestyle changes in which they learn and practice efficient budgeting and maintain a disciplined plan of consistent debt...

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How to Lower the Interest Rate on HFC Loans

HFC, or Household Finance Company, is a now-defunct lender. The former HFC was a subsidiary of HSBC Bank, a British banking conglomerate. However, HFC is still servicing its open loans. In order to reduce the interest rate on an HFC loan, you'll have to do one of two things; file for a hardship or refinance elsewhere. Instructions 1 Calculate your debt-to-income ratio to determine your eligibility for a hardship loan. In order to qualify,...

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Nonprofit Help for Foreclosures

A variety of nonprofit credit help is available for avoiding foreclosure. The U.S. Department of Justice and the U.S. Department of Housing and Urban Development maintain lists of nonprofit credit counselors across the country. The agencies are experts in foreclosure avoidance and can contact your lender directly to stop foreclosure proceedings. Making Home Affordable The Making Home Affordable Program is directed by the U.S. Department of Treasury and the U.S. Department of Housing and Urban Development. The program was created to provide...

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How Does a Credit Repair Agency Work?

What's a Scam and What Isn't Radio and television commercials for credit repair agencies abound. However, these businesses are often fronts for fraudulent activity, misleading desperate consumers who don't know better. Commons claims are that they can repair debt with no money down, remove legal judgments and create a new identity with a clean credit record. The Federal Trade Commission warns that "the fact is there's no quick fix for creditworthiness....

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Quick Debt Reduction

It's an unfortunate fact of life that it's always easier to get into debt than to get back out of it. While there are ways to quickly reduce the amount of debt you owe, it's often at the risk of your credit score or your financial well-being. Dumping debt into another loan, debt settlement or bankruptcy may get you out of debt, but it often comes at a price. Switching Credit Cards One reliable method for reducing your debt quickly is to transfer high-interest credit card balances to a low- or no-interest card. The good news is you reduce...

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How to Contest a Credit Report Error

Even one negative entry on your credit report can significantly damage your credit. That being said, if there is anything on your credit report that can leave a serious dent in your good credit, it is in your best interest to get rid of it. If the problem in question is an error, this will make it even simpler to remove the dent in your credit score, but you still will need to work to get it done. Instructions 1 Gather any evidence you have that the problem on your report truly is an error. This could be in the form of anything such as a...

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How to Increase Your Credit Score With One Short Phone Call

Credit bureaus compute your credit score using a combination of factors: your debt to income ratio, the number of late or missed bill or credit payments on your report, the composition of your debts, and the length of your credit history. Not all of these factors can be improved with one phone call, but creditors can be surprisingly forgiving if you just contact the relevant companies. Nothing will damage your credit score more than avoiding communication...

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Responsibility for Credit Card Debt After the Death of a Spouse in Ohio

The sluggish economy in 2011 has led to difficult financial times for many families, and, in some cases, debts have piled up quickly. If your spouse passes away in the state of Ohio while still having outstanding credit card debts, the possible responsibility for that debt could create additional stress. In most cases, a surviving spouse is not liable for her husband's credit card debt when he passes. Instead, the assets of his estate should pay those debts in full. Credit card debt and death laws vary from one state to another, and community...

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How to Understand the Truth-In-Lending Disclosure Statement

The truth-in-lending disclosure is a federal law that requires lenders and financial institutions to make a full disclosure to consumers regarding the various fees, charges, terms and conditions of a contract. Some information must be set apart in bold print so that a consumers attention is alerted to the information. This act stops credit card companies from mailing out credit cards to customers who did not apply for them, according to Bankruptcy-Law...

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What Happens to Your Unsecured Debt After You Die?

If you are not financially capable of paying off your unsecured debts prior to your death, the courts take over responsibility for sorting out your affairs. A variety of factors, such as your assets, your state's probate laws and if you share payment responsibility with another individual, contribute to when and how your creditors get paid. In certain situations, however, unsecured creditors do not receive payment at all. Facts Unsecured...

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Can My HOA Place a Lien on My House Without Notification?

A homeowners' association (HOA) can take steps against a delinquent member to collect past-due assessments he might owe. In doing so, the HOA has a right to place a lien on the member's property that will secure payment of the debt. Before it can place a lien, the association must inform the homeowner of its intent in writing. according to the HOA Institute. What is a Property Lien? A lien is a legal claim on a property that secures a payment of debt. A lien holder may sell the property to satisfy the outstanding debt. A homeowners' association...

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Difference Between Restructuring & Bankruptcy

If you are faced with mountains of bills that you cannot pay, you're probably wondering what your options are. Two terms you've probably heard are restructuring and bankruptcy, both of which will help you to reduce or even eliminate your debt. Knowing the difference between the two can help you to decide which option works best for you. Bankruptcy Filing for bankruptcy means going to court to have your debts discharged. Personal bankruptcy is filed as either a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. In Chapter 7 bankruptcy (also...

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What Is a Charge Off to Bad Debt?

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