About Consumer Credit Counseling Agencies

When someone finds themselves in debt and they just don't know where to turn, they can find some much needed help by visiting a credit counseling agency. There are thousands of these agencies across the country and finding the right one is the key to you getting out of debt and staying that way. Considerations Being in debt can be very stressful and sometimes so overwhelming you don't know what to do. Fortunately there is help out there....

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The Average Debt of MBA Students

Getting an MBA prepares students for the rigors of life and gives them the skills necessary for a career in the business world. According to Forbes Magazine, the richest people in the world tend to be business people who have learned to invest wisely and run businesses effectively. Aspiring MBA students may assume that the costs associated with getting their degree are negligible relative to the potential payout. Total Debt According to FinAid.org, as of 2010, the average MBA graduate has accrued $41,676 in student loan debt (for loans...

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How to File a Complaint Against a Creditor Who Has a Cease & Desist Letter Against Them

If you have a creditor that is calling you relentlessly at home and work, you can send a cease and desist letter to the business. Once you send this letter to a creditor, the creditor must stop its contact efforts. While contact by mail is typically permissible, this means that the creditor should no longer try to contact you by phone to collect a debt. Despite this letter, sometimes a credit continues to contact you, which is when you can file a complaint against the creditor with the Federal Trade Commission and your state Attorney General. ...

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Truth About Creditors & Debt Settlement Agencies

Advertisements advocating debt settlement programs make settling debts you cannot afford to pay seem like a safe and simple process. In reality, paying your creditor less than you owe to settle your debts is a risky undertaking and one you should only consider after familiarizing yourself with the potential consequences of debt settlement. How It Works A creditor settles a debt when it accepts less than the debtor owes as full payment, writing off any balance that remains. You can attempt to settle outstanding debts with creditors on your...

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Consumer Rights Involving Debt Collectors

If debts are not paid in a certain amount of time, debt collectors have the right to contact the debtor and take legal action to collect the debt. However, debtors have rights, too. Debt collectors cannot harass them, threaten them or otherwise act unfairly toward them to collect the debt, and debtors have the right to secure representation from an attorney regarding the debt. Fair Debt Collection Practices Act The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in unfair, deceptive or manipulative practices...

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How to Pay Off Credit Card Debt with Micropayments

A micropayment system can help you pay down your credit card debt faster. Most people pay their bill monthly, which allows more interest to accrue because companies compute that on an average daily balance. However, making several payments each month as money becomes available enables you to lower your average daily balance, thereby lowering interest. As you pay off accounts through this micropayment system, more money becomes available to accelerate...

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How to do College Loan Consolidation

College loan consolidation is a relatively simple process that may save you money and improve your credit at the same time. By consolidating your student loans, you can free up more of your monthly income to pay off extra principal each month. Consolidating these loans will also improve your credit score. Instructions College Loan Consolidation 1 Learn the basic requirements for consolidating your student loan debt. You must have at least...

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Wage Garnishment Procedures

One of the most dreaded debt collection procedures is wage garnishment. In wage garnishment, your employer deducts a previously agreed-upon portion of your wages and pays it to the requesting creditor. Wage garnishment procedures must be followed precisely for the order to be valid. If you suspect improper wage garnishment procedures, you can contest them in a court of law. Beginning Garnishment Your creditor first seeks a court order, or...

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Non-Profit Debt Consolidation Companies

If you're feeling overwhelmed by bills, you may be considering using the services of a non-profit debt consolidation company. You will have no trouble finding a company to handle the process for you, but evaluating all of the companies and determining which is the best for your situation will take some time. Before you sign anything, there are some things you should know about non-profit debt consolidation. Function Non-profit debt consolidation...

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Who Pays Debts When You Die?

Dying while in debt is a common occurrence. Many people remain in debt their entire lives. Yet when you die, your family members do not inherit your debt like they inherit your assets. If a debt also belongs to someone else in addition to you, that person is responsible for payment. Some family members prefer to pay the outstanding debt of the deceased because they feel it is the right thing to do, yet rarely are they legally required to do so....

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How Do I Get Rid of Over 100K in Credit Card Debt?

You'll need an aggressive plan to get rid of $100,000 in credit card debt. The mounting finance charges will make it virtually impossible to pay off the cards by making the minimum payment each month. At an overall interest rate of 18 percent, a $100,000 debt would increase by more than $18,000 over the course of a year. Instructions 1 Get a home equity loan. Not everyone will qualify for a $100,000 loan, but you should explore this option...

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How to Use Superannuation to Pay Debts

Superannuation funds (more commonly called pension funds in the United States) are one of the most tax-advantaged retirement accounts, but they're available from certain companies only. In most cases, you're not allowed to withdraw from a superannuation without paying a penalty in taxes and other fees. Company-managed pension funds are subject to the rules of the company that owns them. Contact your company's human resources department about whether there are any hardship exceptions for early withdrawal from the pension fund. Instructions ...

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How to Fix Bad Credit in Canada

Being laid off is difficult, and so is a debilitating illness. Whatever problem you may have, it could cause you to pay bills late, if at all, and that will have a devastating effect on your credit score. Most Canadian lenders will look at your credit score to see if you pay your bills on time before granting you credit. So a bad score will dictate whether you get the loan or not. Instructions 1 Get credit reports from Equifax Canada Inc....

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Colorado State Laws on Collecting Debts

Debt collectors are bound by the law, which in Colorado is defined by the Fair Debt Collection Practices Act. The act sets aside rules for what creditors and debt collectors can do in the attempt to get money from you. It applies even to out-of-state companies trying to collect from Colorado residents. Finding You If a debt collector tries to find you through other people, she cannot tell anyone she interviews that you owe a debt or send them letters with any language or symbols that would indicate she works for a debt collector. She can...

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What Happens If I Don't Pay My HELOC Before the Call Date?

A home equity line of credit, or HELOC, is an alternative source of credit for homeowners. The bank extends a line of credit based on the fair market value of the residential property and the owner's credit score. A HELOC serves as a revolving credit line without many of the rules that credit cards or loans carry. The interest rate on a HELOC is usually substantially lower than that on a credit card. Features A bank offers a HELOC based on a percentage of a home's appraised value. Using a predetermined calculation of value based on property...

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How to Resolve Credit Card Debt

Despite your best efforts, it's not always easy to get rid of debt. High interest rates and little income can impact your ability to reduce your debts. What's more, continuing to use credit cards or repeatedly applying for new lines of credit can hinder any attempts to live debt-free. Fortunately, debt doesn't have to enslave you forever. There are practical and effective ways to resolve debt and alleviate financial stress. Instructions 1 ...

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What Is a "B" Credit Rating?

Within a credit score, an additional letter grade is often assigned to further identify a customer's trustworthiness when it comes to credit. These ratings resemble letter grades received in school (A, B, C and D) with "A" being the highest grade and "D" being the lowest. Significance Credit ratings are based on a customer's credit score to further categorize credit valuation. The most widely accepted credit rating model is FICO (Fair Isaac...

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Questions to Ask About Equity Lines of Credit

Home equity lines of credit provide you with a revolving credit capability. In exchange for certain fees and interest payments, you can can repeatedly draw up to the maximum amount of the credit line, pay it down and draw again. Taking out an equity line of credit with your house as collateral for the debt can facilitate new business ventures or allow you to pay off high interest credit card debt with low interest debt. To do this, you need to open...

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Bankruptcy Court & Credit Counseling

Bankruptcy discharges a person's debts or forces creditors to accept a court-approved repayment plan, depending on the type of filing, according to the Federal Trade Commission (FTC). A 2005 law called the Bankruptcy Abuse Prevention and Consumer Protection Act imposed a counseling requirement on consumers. They must get special credit counseling before they can file a bankruptcy case. Description Pre-bankruptcy credit counseling is done through a government-approved organization, the FTC explains. The session includes a budgeting discussion,...

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How to Negotiate to Settle a Hospital Bill

Medical bills can be devastating, especially for the uninsured. Treatment for a serious injury or illness can easily top $10,000. One point in your favor is that medical debt is unsecured, meaning there is room for negotiation. Unsecured debts, which also include credit cards, are not backed by collateral. Secured debts, such as mortgage loans and automobile loans, allow the lender to take the property if you cannot pay. Medical bills can be settled for less than the full amount owed, and you can handle the negotiations yourself. Instructions...

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Tennessee Credit Freeze Laws

A credit freeze prevents release of information on a person's credit report without his authorization, and is an action people may take to prevent or respond to identity theft. A credit freeze requires a lender or creditor to contact an applicant to verify his information prior to granting credit. Failure to verify the applicant's identity results in denial of credit. In 2007, the state of Tennessee signed the Credit Security Act to allow residents...

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Collection Agent Tips

When you fall behind on your debts, you may soon start to be contacted by a collection agent. While there is nothing wrong with being called by a debt collector, it can be a frustrating experience. If you find yourself in this situation, you need to keep a few tips in mind. Communicating With the Agent When you first are to receive calls or letters from a debt collector, it is generally a good idea to try to communicate with him. Many people make the mistake of avoiding collection agents, which usually leads to even bigger problems like...

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Does Making Late Credit Card Payments Ruin Your Credit Score?

Banks and credit card companies notify the major credit reporting bureaus each time a debtor misses a payment on a credit card. Missing credit card payments may not ruin a credit score outright, but will make it difficult to maintain a high score. Credit scores range from 300 to 850, and scores 720 or higher are considered superb. At that level people rarely miss a credit card payment or pay late. This helps them qualify for easy approval on most...

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Definition of Conduit Debt

Conduit debt is a bond marketed by public entities such as states, counties and cities on behalf of a private entity. Common issuers of conduit debt include businesses, hospitals and educational institutions. The public entity does not have any obligation to repay--the debt is assumed by the private issuer. Tax Treatment Normally, conduit obligation bonds are taxed like municipal bonds: Interest received on these bonds is free of federal...

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What Gives Junk Debt Buyers the Right to Report to Credit Bureaus?

Companies who purchase bad or delinquent consumer debt from credit card companies acquire the same legal rights under the terms of the credit card agreement as the original card company. Since the junk debt buyer now owns the account, it has the status of any other creditor and can report account information to the various credit bureaus. Third-Party Purchasers Of Bad Debt Credit card companies will frequently sell their non-performing or delinquent credit card accounts to businesses that specialize in purchasing bad debt. Most of the delinquent...

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How to Get Rid of a Current Mortgage

Aggressively trying to get rid of your mortgage while the payments are still current gives you some flexibility. Without the pressure of a looming foreclosure you have time to consider all of your options, including voluntarily surrendering the house to your bank or mortgage company. The good thing is that you don't have to be behind in your payments to talk with your mortgage company about a solution. Instructions 1 Sell your house. This...

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How to Report Payments to a Credit Bureau

Credit-reporting agencies track data shared by creditors that define a company's experience with a consumer. But creditors are not required to report information, and in some instances cannot. Creditors must subscribe to credit bureau services to report payment histories, according to Experian. In addition, some states prohibit some types of payments---including utilities, cellular services or rental payments, for example. You can contact your creditors...

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What Is Fiscal Consolidation?

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Can a Debt Management Program Stop Wage Garnishment?

Sometimes, creditors will attempt to pursue the collection of a debt through methods more aggressive than simply calling or writing letters. In some states, a creditor is allowed to garnish a person's wages or seize his bank account. Some debtors may attempt to get out of debt through the use of a debt management program. Use of this program, however, will not guarantee that a person can stop the garnishment. Debt Collection When a creditor seeks the collection of a debt, he will often choose to sue the debtor in court, which is his right,...

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Can Wages Be Garnisheed if You Are Sued in Texas?

Individual state debt collection laws tend to favor either the consumer or the creditor who sues him for money he owes. Texas law favors the consumer. If you're unable to pay a credit card balance or an auto loan and your creditor gets a judgment against you, Texas limits its options to use it. This doesn't mean that your creditor can't collect from you, just that it can't garnishee your wages, with a few exceptions. Child Support Not only...

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How to Negotiate Interest

Many banks are willing to negotiate interest rates on credit cards, mortgages, and personal loans. Working with a big bank can be intimidating, as many are inundated with customer service requests, and it can be challenging to have a conversation with someone authorized to reduce the interest rate. In general, banks are only willing to negotiate interest rates with borrowers that either have excellent credit ratings or those that are having significant...

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Can You Get Denied for a Car Repossession?

If you're like many people, you need a car to get to work and earn money. After a lender repossesses your vehicle, you might be frantic to replace it so you can continue to pay your other bills and prevent a bad situation from becoming even worse. Your best option is to try to avoid the repossession, if at all possible. But if it happens, it doesn't necessarily mean that no company will ever extend you credit again. How Long It Hurts You ...

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How to Negotiate With a Collection Agency

Debt-collection agencies can strike fear into the hearts of consumers, but you shouldn't be afraid to negotiate with them. If you know your rights, remain calm and go into the negotiation process with reasonable expectations, you might be surprised at how willing the agency is to work with you. You may even be able to settle the debt for less than you owe and preserve your credit history in the process. Instructions 1 Review your budget and figure out the maximum amount you can pay monthly to reduce the debt. 2 Learn your rights when...

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How to Reduce Debt to Reduce Stress

Many people are in debt because of student loans, being out of a job or making a bad business deal. Debt can cause a lot of stress, making it difficult to sleep or function properly in daily life. When figuring out how to get out of debt, sometimes it can feel like an uphill climb. Reducing debt is possible if you are willing to work hard and take positive steps towards debt freedom. Instructions 1 Obtain lower interest rates. If you have...

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Grants for Low-Income Families in Credit Card Debt

There is no simpler way to say it: there is no grant -- either private, government or corporate -- that helps a borrower pay off credit card debt, regardless of the individual's income. However, that doesn't mean there isn't help available. Low-income families have excellent opportunities for aid. Learning to recognize a scam when you see it and realizing that there's no easy way out of your financial situation are your first steps toward financial...

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Can I Have an Unrequested Credit Check Removed From My Report?

Every person who has taken out a form of credit is given a credit report. This report includes information about the person's lending activity and forms the basis for the individual's credit score. The report can be consulted by lenders and other parties with a legitimate business interest in knowing a person's credit history. If a company checks on a person's credit, it is noted in the report. These checks cannot be removed. Credit Checks Whenever an outside party checks an individual's credit, this check is noted on the credit report...

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Can Debt Collectors Get Your SSI Check?

If you default on a debt, the creditor may sue you. Upon winning a lawsuit, the creditor can ask the court to garnish your wages or levy your bank account. However, Social Security income is usually exempt from garnishment as of 2011. This includes Supplemental Security Income, or SSI, which the Social Security Administration pays to low-income disabled, blind or elderly people each month. Thus, debt collectors can't take your SSI check to satisfy a debt under most circumstances. Protected Property SSI checks and other Social Security checks...

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The Statute of Limitations for Revolving Debt in Texas

The statute of limitations in Texas for revolving debts is in place to provide creditors a certain amount of time to pursue you for money owed. After the time limit expires, creditors become limited in what actions can be taken to legally force payment. If you communicate with creditors, including answering phone calls or responding to letters, the clock on the statute of limitations resets. Revolving Debt Definition A debt is considered revolving when it has an open term of repayment, monthly payments based on the percentage of the balance...

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