What Are the Rights for a Breach of Contract on a Credit Card?

When an individual signs a credit card agreement he enters into a legally binding and enforceable contract with the credit card company. The terms and conditions of the contract are elaborated within the card agreement including repayment terms and the incidents that will give rise to a default or breach of the contract. Breach of Contract If the cardholder fails to remit payments pursuant to the terms of the credit card agreement, once the account is in default, the card company has the right to sue the debtor for breach of contract. The...

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Which Debt Should Be Paid Off First?

Picking a debt repayment strategy depends on the nature of your debts, including debt sizes and interest rates. There are two main debt repayment strategies: the high- interest-first method and the debt-snowball method. Each debt repayment method has its advantages and the ideal method may differ from person to person. Highest Interest First Most debts have an interest rate on the principal outstanding balance. This principal balance grows as any interest accrued during the lifetime of the debt is added to the outstanding amount. Some people...

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Statute of Limitations to Enforce a Debt

A statute of limitations refers to a legal limit on the amount of time someone can be held legally liable for a specific circumstance. Civil and criminal offenses have statutes of limitations imposed on them by both federal and state law, as do debts of various types. Debts are largely regulated by state law and thus every state has different statutes of limitations applying to various types of debt. Reasons for Statutes of Limitations The idea behind a statute of limitations for a crime or a debt is two-fold. First, it is in the general...

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Debt Coaching

Debt coaching -- also referred to as money coaching -- teaches you how to budget and manage household finances. Along with improving your money management skills, debt coaching can help you reach your financial goals, whether they be accumulating savings, paying off debts or learning how to invest. A money coach offers advice and can help guide you in making the right financial choices for your personal situation so you can get your finances in order....

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What Is a Credit Card Buyout?

A credit card buyout can be one of various that help credit card holders by alleviating their credit card debt. Such buyout options can be useful when recurring credit card bills have become too much for the card holder to handle. However, a card holder should proceed with caution. Debt Settlement When a credit card holder has an excessive amount of debt on his card, he may be able to work out a deal with the credit card company to pay off...

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Should I Pay Off Debt or Increase My Savings?

Money decisions can be the hardest. Pay Off Debt Many financial experts believe it is best to pay off debt rather than increase savings because most debts are at a higher interest rate than interest earned in savings. Paying off debts will save money that is currently wasted paying interest and make it available for greater savings in the future. Increase Savings Some money experts contend it is necessary to have some...

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How to Stop a Garnishment of Wages While Living in Iowa and Working in Nebraska

When you're strapped for cash and finding it hard to pay basic living expenses, an order for garnishment of wages can be the kiss of death for your already overloaded budget. If you're living in Iowa and working in Nebraska and are served with a garnishment of wages order for an unpaid debt, there are a few ways you can legally stop the garnishment. But it won't be easy. Instructions 1 Prove that the garnishment is more than 25 percent of...

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How Does a Write off Affect Your Credit?

There are more than a few reasons to maintain a strong credit score. High scores help you qualify for a loan at a good interest rate, lower insurance premiums and even help you get a job. But if you have negative items, such as charge-offs or a write-off, on your credit report, this can hinder your rating. What is a Write-Off? Creditors send letters and make calls to collect an unpaid debt for approximately six months. Borrowers who can't or don't want to pay typically ignore these collection attempts. After months of non-payment, creditors...

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Can an Unsecured Creditor Garnish Wages in the State of Georgia?

An unpaid creditor has a right to collect on the debt through legal action. An unsecured creditor, such as a credit card company, can sue the debtor and secure a judgment for the unpaid debt. One way the creditor can collect on the judgment is to garnish the wages of the debtor. Such wage garnishments in Georgia are subject to federal and state laws. Wage Garnishment A wage garnishment describes a legal action used by a creditor who's owed...

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How to Fix My Credit in Texas

Texas law provides provisions and limitations for revolving credit accounts, judgments and other potentially negative items that can adversely affect your credit file. Such provisions protect you against abuses such as improper collection of debts and uncapped interest fees. If a past due or delinquent line of credit has triggered a drop in your credit rating, act with swift determination and take advantage of the public, private and state resources available to help you restore your credit file. Instructions 1 Request and print your credit...

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Reasons for Income Inequality

Few will deny that income inequality is rising in America. As of 2010, corporate CEOs make almost 300 times what the average worker makes, up from 30 times back in the 1970s. The top 10 percent of wage earners make almost 45 percent of total income today, up from only 27 percent in the late 1960s. The causes of this and other examples of inequality are many and remain complex and controversial. Education A consistently useful measure of income potential is education. Since the 1970s, education has grown as a reason for income disparities....

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Can Hospital Debt Put a Lien on Inherited Property?

If you haven't paid your medical or hospital bills you may face the unpleasant prospect of having a lien placed on your property regardless of whether you inherited it. In general, any unsecured creditor can acquire a lien after it sues you in court and wins a judgment. Lien laws differ among states, so consult with a qualified attorney in your area for legal advice. Hospital Debt If you've received services from a hospital but have not paid the bills, the hospital can take a variety of actions against you as your creditor. Hospital debt...

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Statute of Limitations for Overdue Debt

A statute of limitations, sometimes called a "statute of repose," bars lawsuits filed after the expiration of a time limit set forth in the statute. In debt collection cases, a defendant can sometimes raise the statute of limitations to beat the lawsuit even if the underlying debt is otherwise valid. As most debt collections cases are based upon state law, however, the specific limitations period will vary from state to state. Length of Limitations...

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Can Your Paycheck Be Garnished for a Foreclosure?

It is possible that your paycheck could be garnished as a result of a foreclosure, but if it happens at all it could take years to begin. CNN reports that losing a home to foreclosure doesn't necessarily end your financial responsibility for the mortgage. In most states, banks and mortgage companies can file lawsuits to recover money lost when selling foreclosed homes at auction. Such a lawsuit could lead to a court judgment and garnishment of your paycheck. Foreclosure Auction Foreclosed homes sold at auction are often sold for less than...

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Staute of Limitations on Debt in Nevada

Nevada's statute of limitations on debt reduces the options that creditors and lenders have for collecting delinquent debts after a certain amount of time. Yet the statute doesn't relieve consumers of paying legitimate debts. Still, Nevadans need to know debt-collection restrictions to protect themselves from overzealous collectors who may violate laws to settle delinquent accounts. Statute of Limitations The statute of limitations on debt in Nevada varies based on the debt involved. The statute restricts the amount of time a creditor or...

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Laws in Texas for Credit Card Debt for the Deceased

When a person dies in the United States, the state they were a resident of initiates a probate court process. Each state has variances in specific probate laws, and in states that have community property laws, things can get quite complicated. Texas is a community property state and has a very stringent process that must be followed for probate. When in doubt about how to proceed with your estate planning or with handling a death in the family, consult with a professional Texas probate attorney. Texas Probate Court The Texas probate system...

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How to File for Bankruptcy on Gambling Debts

Gambling debts can be eliminated, or discharged, through bankruptcy. The debts are treated as unsecured debts, making them eligible for Chapter 7 bankruptcy and Chapter 13 bankruptcy--the two most popular forms of personal bankruptcy according to the Federal Trade Commission. In 2010, the Wall Street Journal reported on a famous--but retired and unemployed--professional basketball player who filed for personal bankruptcy after racking up $1.27 million in gambling debts. All debts must be included in a bankruptcy, meaning that you cannot file on...

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Expense of Bad Debt Recovery

It can be very costly when a lender makes bad loans. These loans eventually turn into bad debt accounts, and to collect cash from them a company has to utilize a variety of resources. Identification A bad debt account is an account in which a payment has not been made in 180 days. These accounts are turned over to collection agencies for further collection activity. Fees/Expenses Some collection agencies will charge anywhere from 25 to 50 percent of the balance collected. If the account is forwarded to an attorney or legal action...

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Can You File Bankruptcy If You Already Have Judgments Against You?

Filing for bankruptcy provides you with the most powerful protection available from judgments. A judgment is a legal decision ordering you to pay a specific amount of money after losing a lawsuit. However, if you file for bankruptcy, you do not have to pay the judgment while a federal bankruptcy court reviews your case. The bankruptcy may eliminate the judgment entirely or establish a court-ordered payment plan. It is possible to file for bankruptcy before or after a judgment. The Automatic Stay A provision in bankruptcy called the automatic...

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Is it Okay to Max Out a Credit Card?

Maxing out a credit card refers to charging a credit card up to the maximum credit limit. So, if you have a credit limit of $500, and you charged $500 on that credit card, you have maxed it out. This behavior can cost you a lot of money. First, you may incur late fees or over-the-limit fees. Second, if you do not pay off the maxed-out credit card, you pay back a great deal more than you originally borrowed. Third, you may hurt your credit score, so any future money you borrow could be at a higher interest rate. What Does It Mean to Max Out...

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How to Get Rid of Your Credit Card Debt Without a Settlement Company

While some debt settlement companies may actually help you get out of debt, many charge high fees and cannot deliver on their promises. If you want to reduce your debt without the help of a settlement company, you do have a few options. The best path for you may vary depending on the depth of your financial situation. For example, if you are in good financial health and simply want to reduce your balances, the way you structure your payments may be your best option. If you cannot afford to make even your minimums, you may prefer to consider bankruptcy....

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How to Find Out Who Owns Debt

Debt is sold on a regular basis. Finding out who owns debt is necessary to pay it off and clear your credit record. Because of the frequency of debt sales, finding the owner of a particular debt can be difficult and require a large investment in time. It is best to know the original amount of your debt so when the new debt owner tells you how much you owe you will be able to determine the amount of fees added by the buying and selling of your debt. Instructions 1 Request a copy of your credit report from all three major credit bureaus. You...

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Is It Best to Pay Multiple Loans All at Once or One at a Time?

If you're responsibly managing your credit, it's a given you'll make all scheduled payment amounts on time. If you can budget payments beyond the minimum scheduled amount, you may save interest charges by contributing excess amounts to loans. Determining which repayment strategy, such as devoting all your funds to paying down one balance or tackling all loans at once, is essential for maximizing the benefits in your repayment plan. Basic Loan Repayment Strategy Although it may be tempting to seek a moral victory and pay off your loan with...

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Can I File Small Claims in Bankruptcy?

Collecting on all of your outstanding debts is a good business practice, but certain legal issues can make the matter more complex. When a debtor files for bankruptcy, a creditor must stop pursuing a lawsuit in small claims and file that debt with the bankruptcy court handling the case. If a creditor attempts to collect the debt in other ways, he may be subject to penalties or even a lawsuit. Automatic Stay Automatic stays are one of the protections that bankruptcy proceedings afford a debtor who has filed for bankruptcy. Once an automatic...

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Strategies of Collection Letters

Creditors depend upon consumers paying their debts in order to maintain a profitable business model. When customers fail to make their payments as agreed or default on their debts entirely, creditors often turn to collection letters to convince debtors to pay what they owe. Collection letters range from respectful to threatening depending on the company sending them. Companies employ different collection letter strategies for different types of accounts. Friendly Reminder One form of collection strategy that numerous businesses utilize...

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Tips for Online Debt Consolidation

Consolidating your debt into a lower payment with less interest is a smart way to save both time and money. Because consolidation usually involves securing debt with an asset, typically real estate, it is important to understand the logistics of the new loan, especially if you are doing it online. Many companies offer online debt consolidation. Speak With A Non-Profit Credit Counselor Talk with nonprofit consumer credit advisers. They can...

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Does Debt Management Hurt My Credit?

Signing up for a debt management plan can help you lower your interest rates and get a more affordable monthly payment. If you sign up for this kind of help, you may be worried about what it can do to your credit profile. The effect that it has on your credit will depend on your situation. No Impact Simply signing up for a debt management plan will have no direct effect on your credit score. FICO is the company that creates the formula for calculating credit scores and they do not subtract any points from your credit score if you sign-up...

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Is a Judgment the Same As a Lien & Which One Is Worse?

When you find yourself in debt, creditors can use a number of tactics to try to collect the balance that you owe. In this situation, you may hear the terms "judgment" and "lien" used frequently. While these terms are related to one another, they do not mean the same thing. Getting a Judgment A judgment is an order from a court to pay money to another individual or company. To obtain a judgment, a creditor must first file a lawsuit against you. He then will present a case against you in court. If you cannot prove that the debt was issued...

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Myths of Student Debt

Many students go off to college every year without a real understanding of student loans and, as a result, find themselves deep in debt once their education career is over. In some cases, loans are necessary for students to get an education, but if other funding is available, avoid taking out loans as much as possible. Students and their parents should inform themselves about the details of student loans and the myths that can potentially set individuals...

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How to Open a Debt Consolidation Business

A debt consolidation or credit counseling business has helped millions of people get out of debt. Acquiring too much debt is easy. Unfortunately, eliminating debt is hard and some people need help. If youre looking for a business venture thatll help people, consider opening your own debt consolidation business. Instructions 1 Decide whether youll offer credit counseling along with debt consolidation services. As a debt consolidation business owner, your primary responsibility is to manage your customers debts, speak with their creditors...

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Notification Of Debt

Debt notifications come in many forms. Sometimes it's a statement; other times it's a debt collector's "validation notice." Either way, the notification must include the name of the creditor, how much you owe, and instructions on what to do if you don't owe the debt. And while lenders and collectors may also contact you via telephone and email, they must abide by the rules set forth by the Fair Debt Collection Practices Act. The Fair Debt Collection...

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How to Use PayPal for a Prepaid Visa

To encourage members to keep money in their PayPal account, the company issues PayPal MasterCards that can be used at most ATMs and retailers. The card functions as a prepaid card; a user can only spend what is in her account. Once the funds in the account are depleted, a user will need to add funds. PayPal members can add funds manually or schedule automatic transfers into their PayPal account. Instructions Schedule a Manual Transfer 1 Log...

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The Advantages of Financing a Vehicle

If you are in the market for a vehicle, and you have the funds available to purchase the vehicle outright, you may wonder if you should purchase the vehicle with cash or opt for financing. Financing a vehicle requires careful research -- you'll need to find out how much you'll pay in interest, loan fees and other financing costs. However, opting for financing can offer several advantages. Maintaining Savings Choosing to finance a vehicle...

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How Can a Debt Counselor Help?

If you find yourself living from paycheck to paycheck, you are not alone. Millions of Americans are struggling with financial debt. If you cannot seem to find a solution to mounting financial debt, consider the services of a debt counselor. Some credit counseling services even offer their services for free. A debt counselor may be able to help you find a workable solution to your financial problems. What To Expect After taking the first step...

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What Makes Bad Credit?

Bad credit can keep you from owning a home, buying a new car and even getting a job. However, bad credit can easily be avoided if you know what actions negatively affect your credit score. Paying Bills Late If you notoriously make your credit card, loan and mortgage payments long after their due dates, your credit score will be much lower than if you made your payments on time. Maxing Out Your Credit Cards If you owe more than 80 percent...

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About Credit Card Debt Elimination

Credit card debt potentially creates financial problems lasting years. Finance charges and other fees make it impossible to pay credit card debt quickly through minimum monthly payments. That prompts some people to search for faster alternatives. Several options are available, with some more extreme than others. Credit card debt elimination can harm credit scores, but most people with excessive credit card debt already have poor credit or are willing to accept lower scores as a trade-off. Debt Management Plans Debt management plans are...

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How to Keep Collection Activity From a Credit Report

If you do not pay an unsecured debt, your creditor has nothing to repossess to recover the balance. To procure a payment, the creditor will often charge off the debt and sell the account to a collection agency. Collection agencies frequently report their ownership of consumer accounts to the credit bureaus. An entry on your credit report from a collection agency is always derogatory. It will not only lower your credit score, but it will appear within your credit file for seven years. There are actions you can take, however, to prevent a debt that...

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