How to Get Rid of Debt Without Paying

Numerous unofficial advertisements and infomercials promise to help you pay off your debts with no money out of your pocket and without having to repay the funds. They often promise government grants or "free money." The truth is the government is not going to hand you free money just because you need it and only a limited number of people qualify for grants. No government grants exist specifically for paying off personal debts. Government grants are generally offered for objectives like education, health care, job training and nutritional assistance,...

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How a Bounced Check Affects Your Credit Report

Sometimes mistakes happen and you spend more money than you have deposited in your account. When you do not have sufficient funds to cover the amount of a check, it is referred to as a bounced check. Some banks will return the check without paying the amount while others will cover the amount of the check but charge a non-sufficient funds transaction fee. While this type of mistake can be costly, it does not directly impact your credit score as long...

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How Debt Management Provides Advice

The way a debt-management or credit-counseling company provides advice to its clients is an indication of whether its services are effective. Among other things, people who are seeking debt-management advice should note whether counselors offer a personalized financial plan to their clients, before they decide to work with a company. Personalized Financial Plan Credit and debt-counseling services should offer debt-management programs as an option amid other financial assistance. According to the U.S. Federal Trade Commission, counselors...

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Credit & Debt Settlement Help

Lenders sometimes offer settlements when you fall behind, or you can try to negotiate with them if you know you cannot pay. Debt settlement companies offer paid negotiation help if you are uncomfortable dealing with with creditors yourself. Mike Schiano of the Military Money website warns that, while a good negotiator can reduce your debt significantly, your credit rating often takes a beating. Definition Credit and debt settlement means reaching agreements with your creditors to pay off your accounts at less than the original owed amounts....

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The Right to a Credit Report

You have the right to review your personal credit report free each year. Regrettably, some consumers never review the contents of their credit history. Failing to monitor credit activity can result in surprise rejections when applying for loans and credit cards. What is a Credit Report Credit reports contain a complete listing of all your credit accounts -- past and present. Creditors and lenders pull individual reports before issuing loan approvals and use this information to determine a person's credit pattern. While lenders and creditors...

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Can My Wages Be Garnished in Pennsylvania?

When a person won't pay a debt, the creditor may attempt to extract payment by force. This can be accomplished in a number of ways, with one of the most effective being the garnishment of a person's wages. Most laws related to the garnishment of wages are made at the state level. In Pennsylvania, a creditor can only garnish for certain kinds of debts. Debt Collection The first step in garnishing a debt in Pennsylvania is to have the debt recognized by a civil court. This can only be done after a civil suit has been brought by the creditor...

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How Does Debt Relief Without Bankruptcy Affect Your Credit Rating?

When you feel you are in debt beyond help, what do you do? Where do you go? It would seem that at such a time, all doors are closed and you have only two options: debt relief and/or bankruptcy. Both can have massive impacts on your credit score, but at least this could be a beginning of the long journey back to a debt-free status and a positive credit score. The first option, debt relief, offers a better way out. How does it work? You need the assistance of a very reliable and reputable debt relief organization, and you need to enroll...

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How to Report to Credit When Living Abroad

With the advancements of modern technology, one may think that your credit report is something that may be easily maintained no matter where you live. This is unfortunately not the case. When living overseas, your U.S. credit report will not apply in most cases and if left inactive can cause credit woes when you return. Therefore, you will want to ensure that you are able to keep your credit rating manageable by following a few easy steps. Instructions...

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How to Prove SOL Debt

The acronym "SOL" is used to describe debt that is beyond state statute of limitation laws. Statute of limitation laws regulate how long debt collectors can use lawsuits to collect unpaid debts. Laws vary by state, but the average for unsecured debt such as credit cards is about six years. A debt collector can still file a lawsuit after expiration of the statute of limitation, but a judge in the case will dismiss the lawsuit if the defendant argues that the debt is too old for consideration by the courts. Instructions 1 Get a copy of your...

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Can a Creditor Garnish Your Wages If You Pay Child Support?

When a person owes a creditor money, the creditor has a number of different methods by which it can attempt to collect on the debt. One way is to petition a court to garnish the debtor's wages. When wages are garnished, the debtor's employer withholds a portion of the debtor's wages and sets them aside for the creditor. Garnishment laws vary by state; in all states, only certain people are eligible for wage garnishment. Wage Garnishment A creditor can garnish an individual's wages only after two conditions have been satisfied. First, the...

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How To Replace a High Interest Rate Credit Card With a Low Interest Rate Card

Many consumers sign up for a specific credit card because they were offered an attractive introductory interest rate. The problem with introductory rates is that they eventually increase. Before you know it, you are paying off a balance at 19 percent rather than 1.9 percent. Many new cardholders and college students fall victim to signing up for credit cards that have high rates from the get-go. This often happens because the consumer is enticed...

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How to Establish a Credit Line

It seems like an impossible task---establishing credit when you have no credit history. It is difficult, but it can be done, according to Liz Pulliam Weston, personal finance columnist for MSN Money. Weston recommends that you start to establish a line of credit long before you expect to actually need it. The general idea is to create a record that shows how responsible you are with money. Instructions 1 Start small by having the utilities---electricity, gas, telephone and cable---put in your name. Then make sure you pay the bills on time....

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Where to Find a Small Loan for Low Credit Scores

Bad credit can hurt your ability to get a loan and make the loans you get more expensive from high interest and user fees. Still, you have to start rebuilding your credit someplace. A small loan is a good place to start. Keep some things in mind when looking for that small starter loan. Go With Who You Know A bank where you already have an account is the best place to start when looking for a loan with bad credit. The bank spent money attracting you as a customer and will go out of the way to keep you. Also, the bank has your account balance...

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Tips to Repair Bad Credit

Sometimes a long period of financial hardship can lead to a bad credit score. The first thing you want to do when you have bad credit is to repair your credit so you can qualify for the financing you will need to purchase a home or car in the future. Repairing bad credit takes time, but it is not as difficult as it may sound. Take Care of Current Debt The first step to repairing your credit is to make sure your current debt is under control. Consolidate your credit cards into one account by using a consolidation loan or transferring your...

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Should I Use Savings to Pay a Line of Credit?

Deciding how to pay off credit cards is an important decision. Savings Are an Important Safety Cushion If you have savings set away, you are probably hesitant to decimate your nest egg, even for as good a cause as paying down credit card debt. It is important to have a safety cushion of savings, in case of emergencies such as unemployment, medical bills or car repairs, and even to keep you from going deeper into debt. Credit...

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When Do Collection Agencies Report to the Credit Bureau?

Collection agencies are responsible for collecting unpaid debts that an original lender has either been unable to collect or has given up on collecting. Often these companies buy unpaid debt from lenders at a wholesale value (usually at a drastically lower price than the dollar amount owed) and attempt to make a profit by collecting the debt in full from the borrower. A consumer should know the laws--especially those concerning reporting to credit bureaus--in order to remain informed if he or she ever faces collection calls. Time Frame ...

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How Do Credit Scores Work?

About Credit Scores Credit scores have been likened to report cards for adults. It's true in as much as they reflect an individual's financial decisions and level of responsibility over a period of time. However, until relatively recently, credit scores were a closely guarded secret of the lending industry. It wasn't until the age of the Internet that credit scores became easily obtainable and that national legislation was passed to protect...

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Analysis of Debt to Total Assets

An assessment of an individual's or business's financial status can be made by comparing the amount of debt (liabilities) to total assets. If your debt is greater than your assets you may be experiencing some financial stress. Insolvent When your debts exceed your assets, you are considered insolvent. There is probably a lot of financial uncertainty surrounding your credit and debt. You may not be able to meet your monthly obligations. Debt Management When your debt far exceeds your assets, you may need to seek help from a consumer...

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Credit & Debt Consolidation Programs

The causes of financial crisis can range from overspending to medical bills to the loss of a job. Whatever the cause, credit and debt consolidation is one of several solutions available to help you gain control over your financial situation. While it is not appropriate for everyone, credit and debt consolidation is a good option for those committed to sticking to a budget and refraining from credit card use. How Consolidation Programs Work When an individual decides to use a credit and debt consolidation program, she acquires a loan for...

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The Effect of Debt Management on Credit

If you watch any television at all, you have probably seen advertisements from companies claiming they can help get you out of debt by working with the credit card companies on your behalf. These companies specialize in debt management. The programs they offer may be the solution if you're over your head in debt. However, one of the mysteries about debt management programs is how they affect your credit. Credit Basics Your credit file is one of the most important pieces of information associated with your identity. Good credit gives you...

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Does Paying My Credit Early Hurt My Credit Score?

Your three-digit FICO score is used by potential creditors to determine your creditworthiness. The higher the score, the more likely you are to be issued credit and receive lower interest rates. Some factors, such as paying late and carrying high outstanding balances in relation to your total available credit, hurt your score. Paying early generally has no negative impact. Early Monthly Payments According to credit reporting agency Experian, paying credit card bills early each month won't hurt your credit, but it won't necessarily help...

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How to Get Florida to Enforce Child Support

Florida handles child support services through the Department of Revenue. If your child's other parent defies the child support payment order, apply for services through the Department of Revenue and ask them to locate the parent and enforce the order. Florida Child Support Services may enforce child support orders through both civil and criminal sanctions against the parent. Instructions 1 Open a case with the Florida Department of Revenue. Apply online for Child Support Services through the Department of Revenue. You can fill out the application...

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State Laws on Debt Collections in California

Each state has its own set of laws that companies must follow when collecting debts from residents living in that state. California has consumer protection laws that prevent creditors from participating in unethical or abusive collection activity, but it also grants creditors considerable debt recovery options when a debtor refuses to meet his financial obligations. Creditor Conduct The Fair Debt Collection Practices Act (FDCPA) is a set of federal laws governing the debt collection industry. The law prohibits such behavior as using foul...

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Can a Credit Card Company Foreclose on My House?

Technically, it is possible for a credit card company to foreclose on your home because you stopped paying on a credit card. However, such foreclosures almost never happen, according to Bills.com. State laws make the process difficult, resulting in too much hassle for the card companies. Bills.com notes that homes can be voluntarily handed over during a bankruptcy liquidation, but that's usually because the homeowner is looking to get rid of all debts, including the mortgage. The Foreclosure Process A credit card company trying to foreclose...

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Can a Bill Collector Debit a Bank Account Without Permission?

Being harassed by a debt collector is stressful, and confusion about what the collection agency can and can't do to get its money can make a bad situation worse. Knowing your rights is a crucial part of dealing with the collection process. When it comes to your bank account, bill collectors need to satisfy some requirements before they can debit your account. Pre-Judgment Collections If your account is in collections, but the bill collectors...

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How to Dispute an Old Credit Report Entry

Credit agencies keep thorough records on all American consumers who use credit. Some debts can legally remain on a credit report for as long as 10 years. If you are struggling with an old debt on your report, you can take action to try and remove it. To do this, though, you need to determine what the account is, where it began, whether it has a balance and if it is incorrect. Instructions 1 Collect any supporting documents if the old account...

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Is My Spouse or Family Liable for My Debt?

The common denominator in the question of debt liability shared within a family structure is twofold: one, the act of mutual consent/signature; and two, the applicable law as set down in the state where the family resides. Mutual consent/signature In the vast majority of cases, if both spouses sign a debt agreement contract, both are held jointly liable to the creditor. However, a spouse or family member could, unknowingly (and inadvertently), assume liability, if the issue took place in a "community property" state. Community Property...

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Does Paying Off Collection Accounts Raise Credit Scores?

A collection account appearing on credit reports is very harmful to credit scores. It indicates that a debtor failed to pay an account as agreed, forcing the creditor to close the account and list it as charged off. After that, the creditor transferred or sold the account to a debt collector, resulting in an update to credit reports noting the new status as a collection account. It is impossible to maintain an excellent credit score with active collection...

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Ethical Credit Solutions

Ethical credit solutions are available from respected sources such as government-approved credit counselors. Reputable credit advisers focus on basic credit fundamentals to create long-term strategies for credit repair or financial growth. The Federal Trade Commission warns that you should stay away from questionable credit solutions offered by so-called credit repair specialists, foreclosure rescue experts and debt settlement agencies. The FTC acknowledges that some of the firms are legitimate, but many others are scams. Nonprofit Credit Counseling...

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Credit Line Vs. Number of Credit Cards

Every credit card you use affects your ability to get new forms of credit and can raise or lower your credit score. Creditors want to know how well you can manage your credit, and using your cards unwisely results in a lower credit score and a more difficult time in getting credit. You should always know exactly how many cards you have at any time, as well as the associated credit limits that come with them. Credit Line A credit line is the amount you are allowed to charge on each of your credit cards. Also known as a credit limit, each...

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Wage Garnishment Rules for Tax Liens

Wage garnishment law applies uniformly in most circumstances. When a person defaults on a debt, the creditor to whom he owes money can obtain a judgment and a writ of garnishment to collect money owed by garnishing the debtor's wages. Owing back-taxes is no different. If a debtor owes taxes --- whether state or federal --- wages can also be garnished to pay for taxes owed. Federal Law The Consumer Credit Protection Act (CCPA) is a federal...

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What Is Primary Consumer Debt?

Primary consumer debt is a financial term for the type of debt consumers accrue by purchasing basic items for daily life. It describes the costs to individual consumers, not businesses or governments. Common Types of Debt The most common types of primary consumer debt are in the form of credit card debt and personal loans. These are often at a higher interest rate than a long-term loan, such as a mortgage. Fun Fact With the total amount...

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Debt Options for Low Income People

If you earn a low income and are in debt, there are a options available to help you become debt free. Seeking help from debt counseling services, negotiating with creditors or taking out a personal loan are some options. By repaying a little each month, you will be able to get out of debt. Learning how to better manage your income or finding a higher-paying job are ways to ensure you don't end up in debt in the future. Debt Counseling Services...

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Can Wages Be Garnished From a Student Loan?

Student loans have helped millions of low- and middle-income students earn a college degree. Student loans, particularly those issued or guaranteed by the federal government, require recipients to begin paying back the debt six months after graduating or leaving school. Although the U.S. Department of Education offers several mechanisms for avoiding default, if a borrower is unable or unwilling to pay back the loan, the federal government can garnish wages to help pay down the debt. Loan Terms Student loans issued or guaranteed by the government...

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How to Find Out My Debt to Income

Your debt to income ratio is a calculation used by lending institutions to determine your ability to pay off new debts each month. It evaluates your current debt vs. your current income. The lower the ratio, the more likely you are to be able to afford new debt. For example, a mortgage company might require you to have a 30 percent or less debt to income ratio before your new loan and a 50 percent or less debt to income ratio after your new loan. Instructions 1 Add up all of your current monthly debt payments. This includes all of your minimum...

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When Should I Try to Settle Bad Credit Card Debt?

A bad credit card debt can be reported on your record for up to seven years. But there may be some life changes that come up inside of those seven years that would require you to settle the debt with your credit card company immediately. Even though you may be in a desperate situation, when you do decide to settle your credit card debts, don't let the creditor know exactly why you have had a change of heart. That could give you a disadvantage in negotiations. When Trying to Buy or Rent a Home When you have bad credit card debt listed on...

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Can the Credit Card Company Give a Debt Collection Agency Original Documentation for a Lawsuit?

Collection agencies collect debts consumers did not pay off. Credit card companies utilize both in-house and third-party collectors during the debt recovery process. If a debtor does not work with his original creditor or the collection agency to resolve his payment obligations, the collection agency has the right to sue him, but may need documentation from the original creditor -- in this case, the credit card company -- to prove its case to the judge. Debt Documentation A collection agency that sues you must send you a legal summons before...

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