About Credit Card Debt Loans

Debt consolidation loans are another name for what is commonly thought of as credit card debt loans, because that is their primary purpose--to help people consolidate and rectify the debt that accumulates from personal spending. Significance The difference between debt consolidation loans (or loans in general) and credit card debt is that one is secured and the other is not. Essentially, a loan is usually secured against your assets, while...

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Can Creditors Close a Good-Standing Account?

Consumers who keep their credit cards in good standing may assume they're not at risk of having their accounts canceled by their card issuer. However, a credit card company and a cardholder have competing interests when it comes to protecting their finances, which can cause some cardholders to lose their accounts. Regulations The U.S. Equal Credit Opportunity Act (ECOA) gives credit card companies the right to close accounts that cardholders aren't using. Furthermore, the ECOA doesn't require card issuers to give cardholders advance notice...

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Debt Repair Programs

The simplest way to repair your debt is simply to pay it off. Consider ranking your debts starting from the smallest to the largest, and paying them off one by one, even if that means taking a second job or cutting back on unnecessary expenses. If that doesn't work for you, several other options are available, but most will require that you pay back at least some of what you owe, and the process could take several years to complete. Bankruptcy...

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How to Compose a Financial Hardship Letter Template

A financial hardship letter template is a tool to help you draft a proper explanation of your inability to keep payments. This letter template can help stop foreclosure on your home or restore credit if you have suffered a financial hardship. Instructions 1 Choose a sample format to pattern your letter template. You can use sample letters of financial hardship found on the internet or create your own in a word document program. 2 List...

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Illinois Money Lender Requirements

The Illinois Attorney General's Office has the legal authority to investigate consumers' complaints filed against creditors who violate the Illinois anti-predatory loan acts. Lenders, consumer credit agencies and collection agencies face criminal and civil penalties for violating the Illinois consumer protection laws. Furthermore, the federal Fair Debt Collection Practices Act, the Illinois Consumer Fraud and Deceptive Practices Act and the Illinois Collection Agency Act establish the legal rights Illinois consumers have against deceptive debt...

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How to Avoid Paying Late Fees

Late fees are never fun to pay. Think of all the shoes, dinners, movies and computer games you could have purchased with money that, instead, has gone toward late fees over the years. Being charged late fees on bills that are overdue is like adding insult to injury. Not only do you have to pay a bill, but you now have a late fee and it could have an adverse affect on your credit. Instructions 1 Store your bills in a visible place that you...

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What Do I Do When a Collection Agency Won't Settle With Me?

Debt settlement serves as a staple of the collection industry. Each collection agency, however, employs different policies. Some collection agencies do not offer consumers debt settlement agreements on recently defaulted debts or debts that fall beneath a pre-set amount. Fortunately, you have options if a collection agency refuses to settle your unpaid debt. Wait It Out The older a debt is, the harder it becomes for debt collectors to recover...

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How Debt Consolidation Hurts Your Credit Score

Debt consolidation programs can seem like a great deal at first. The prospect of bunching up all your loan payments into a single payment, plus paying less each month, make these deals seem too good to believe. Unfortunately, they often are. In the long run, debt consolidation can be more harmful than helpful, and can end up damaging your credit score. Credit Score Factors A credit score is a number that represents your potential risk as...

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Employer Garnishment

If you think ignoring a debtor erases your debt, please think again. Creditors may file a civil suit against you in the court of law, and if the judge rules in its favor, the creditor may come after your wages to collect on the debt. Once the court orders your employer to garnish your wages, an employer must deduct from your earnings until the debt has been paid in full. Types Different types of debts that you may be garnished. Student loans, child support, bank loans, car loans, credit card accounts and utility accounts are some debts...

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Tips to Get Out of Credit Card Debt

Credit card debt can take years to pay off, especially if you are only making the minimum monthly payment. If you can't even make the minimum payment, your credit score will drop significantly, making it difficult for you to get credit for many years. With careful financial planning and an aggressive payment plan, you can get yourself out of debt more quickly and avoid paying thousands of dollars in interest. Stop Charging Even if you are making monthly credit card payments, your debt can get even more substantial if you are still using...

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Credit, Debt and Financial Counseling Help

Debt is not always a bad thing. Loans and credit cards allow you to purchase big-ticket items like homes, cars or boats that you cannot afford to pay for in a lump sum. You build up your credit history by borrowing and repaying money. Sometimes, consumers get into trouble with excessive use of credit and cannot repay the debt, but financial counseling gives options to put them back on track. Description Credit-counseling firms provide financial counseling for people struggling with their bills. The counseling entails looking at your income,...

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How to Fix a Low Credit Report

Having a low credit score can affect your chances of obtaining additional credit to purchase major items, such as a house or a car. Past credit problems can also hinder you from attaining employment in certain fields. It's important to know what it is in your credit file so you can take the necessary steps to clean up and improve your overall credit. Cleaning up your credit is not an overnight process--it will take some effort on your part--but in the end, you will have accomplished something that will open doors that might have been closed to...

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The Best Debt Reduction Programs

As debt reduction programs go, there are bad companies who take your money and further wreck your credit and there are good companies who help you find a way out of your debt. This might include credit counselors or bankruptcy attorneys. Then there are software programs that help you find your own way for free. Which program is best partly depends on how deeply in debt you are and how fast you need to get out. Software Programs One way to reduce debt is to launch your own debt reduction program with the help of a budget software. Many of...

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How to Get Rid of a Charge Off

Charge offs can appear on your credit report once a creditor or lender concludes that you have no intentions of paying a delinquent balance. Typically, lenders and creditors submit charge-off information after six months of non-payment. The consequences of a charge off include a drop in credit score and difficulties getting a new credit account or loan. Charge offs tend to remain on reports for seven years. But paying off an account can persuade...

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What Happens if Wages Are Garnished?

Definition When people have their wages garnished, this means that a portion of the money that they are earning from their employers is automatically deducted and goes to pay off outstanding debts that they have accrued. In most cases this is done as a result of a court order, where the person whose wages are being garnished has been taken to court and ordered to undergo this process to pay off her debts. In certain cases (owing federal taxes...

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The Impact of Debt Settlement

Taking advantage of a debt settlement arrangement offered to you by a creditor can impact you in both positive and negative ways. Although the stress level of owing a debt may be lessened, the settlement itself can have an adverse effect on your credit score. You can take action ahead of time to reduce the negative impact a debt settlement can have on your credit history by negotiating with your creditor. The Facts Debt settlement occurs...

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Should I Use My 401(k) to Pay Off Debt?

Many people in tough economic times get pressured by collection agents to pay off their debts with their 401(k) or similar retirement vehicles. While the funds can be used for this, should they? Retirement of Debt or Retirement? Why do you have a 401(k)? The simple answer is retirement. For that purpose, the government lets you take money OUT of your taxable income to save for your retirement. The money is not taxed at the current rate, but at the rate it will be some years hence. If you break up your 401(k) today to pay existing debts,...

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Information on Debt Reduction

If you have an abundance of credit card debt you may want to investigate methods of debt reduction. Reducing your debt can make your budget more manageable and help you become debt-free. Lower Rate If you want to reduce your debt, you should contact all of your credit card companies and negotiate lower rates of interest. When you make your payments, a larger portion of the payment will go toward the balance, resulting in faster debt reduction. Settlements Call your credit card company and negotiate a settlement of the balance. Credit...

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Define Line of Credit

Individuals may borrow against a line of credit to make purchases. When the borrower makes payments on his line of credit, he frees up additional credit that he can again use to make purchases. Thus, lines of credit are categorized as "revolving" debt. Home equity loans and credit cards are two common types of credit lines. Facts Each line of credit carries a credit limit. The borrower may make purchases against the line of credit, but cannot...

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Can a Debt Collector Use Information From a Check I Paid Them With to Garnish My Bank Account?

If a debt collector or creditor garnishes your wages or places a levy on your bank account, your ability to pay bills or afford basic necessities can be hindered. So it's smart to be diligent when paying back your overdue debts. Creditors gather your personal information by various means, and they can remove funds from your bank account once they gain access to your account number. Definition Bank account garnishments involve a creditor taking action to collect on an overdue debt. After several collection attempts, creditors can file a...

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The Cheapest Way to Fast Credit Repair

If your credit is damaged, then repairing it can lead to a higher credit score, a number which is used by creditors to determine financial risk. With a higher score, your chances of getting approved for a loan improve, allowing you to secure a loan for a favorable interest rate. Importantly, a strong credit score improves your chances of getting a job, as many employers will check your credit worthiness before considering you for employment. Quickly repairing your credit is in your best interest, and doing it cheaply is essential to your financial...

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How to Turn a Second Balloon Mortgage Into a Fixed Rate

Reworking your home loan to eliminate a balloon payment on a second mortgage could help you avoid a bind. You could find yourself facing foreclosure if the balloon payment comes due and you don't have the money. Contact the lender on your first mortgage, as soon as possible, about reworking your loan, especially if the balloon payment is coming up soon. Even if you have the money for the balloon payment, you should explore alternatives. A new loan may save you money and allow you to keep the balloon payment in the bank. Instructions 1 Contact...

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Tips to Qualify for Financial Aid if You Already Owe

You might still be eligible for various forms of financial aid if you owe money on other financial aid you received in the past. Depending on your individual circumstances, you can still get student loans, grants or scholarships. Avoiding and rectifying loan and grant repayment default is important to qualify for new financial aid. Default If you are in default on any student loan, you typically cannot receive any new financial aid. This is true of financial aid in the form of grants and loans from the federal government. Other financial...

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Can a Government Job Repay My Student Loans?

Many college students take out student loans to help defray the high cost of tuition, student fees, housing and books. Unlike scholarships and grants, student loans must be repaid with interest. This can create financial hardship for recent college graduates trying to pay rent, car insurance and other living expenses on salaries from entry-level jobs. If you're wondering whether a government job can repay your student loans, the short answer is yes....

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Bad Debt Advice

Everywhere you turn these days, financial advisers are telling you how to save money and how to deal with your debt. If you listen to the wrong source, you could find yourself worse off than you were. Some debt options might not be the best route to take to get out of debt. Always trust your gut and, if it sounds too good to be true, it probably is. Consider a few options to help solve your debt problem. Negotiate Your Rates One of the first steps to reduce your debts is to list them. While this is intimidating at first, it helps you to...

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Credit Card Debt Negotiation & Reduction

With consumer credit counseling agencies, there are programs in place that can help you negotiate and settle your debt---and even pay less than what you owe. However, many of these programs charge a fee for their service. Luckily, it's possible to negotiate credit card debt and obtain a debt reduction on your own, as long as you understand how the system works. How to Negotiate Debt The first step in negotiating to reduce your debt and pay less than what you owe is to stop making payments. Creditors only negotiate when they want to avoid...

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Credit Card Debt Removal

Every day, people are inundated with credit card offers, and most Americans have at least one credit card in their wallets. This doesn't necessarily mean that credit cards are a good thing, however---it's much easier to get into credit card debt than it is to remove it. Needing a little help when it comes to digging out financially is normal. With the right strategies, you can get back on your feet. Why Repayment Is Difficult Unlike cash,...

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How to Negotiate Credit Card Debt Reduction

It can be almost too easy to get yourself in over your head with credit card debt. If you are swimming in credit card debt and you need help, youll find a variety of services available for helping you manage your debt. The Federal Trade Commission warns consumers to be careful when hiring a debt settlement firm to negotiate with creditors because there is no guarantee that the firm will be successful and you may encounter high fees for these services....

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Where Can I Get Credit Help When I Would Like to Rebuild My Credit?

When it's time to start rebuilding your credit, several resources can help. A wise first step is asking your bank or credit card company about ways to repair your history. Credit Unions Credit unions are nonprofit organizations that offer their members deposit accounts, credit cards and loans, as well as financial education. Their service is more personalized and flexible than major banks, and they tend to be more lenient with their lending...

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Can a Credit Card Close My Account for Lack of or Non-Use With a Balance?

Although credit card companies are generally interested in providing more lines of credit to more people, most have the legal right to close a line of credit at any time. A company may do this for many reasons, such as if you fail to use your card frequently enough or at all. The company can close an account whether there is a balance on it or not. If a balance does exist, you still have to pay it. Credit Cards A credit card allows a person access to a credit line that is controlled by the company that issued the individual the credit card....

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Four Laws of Debt Free Prosperity

"The Four Law of Debt Free Prosperity" is a book written by Blaine Harris and Charles Coonradt. The book follows the financial woes of Paul Smith, a man drowning in debt. He eventually meets Mary Sessions, a former IRS officer with $20 million in the bank. She convinces him to move into her house and learn the four laws of living debt-free. Enticed by her offer of $2 million dollars, Paul agrees and learns how to create a financially secure life....

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What Do You Need From Someone to Cosign for a Credit Card?

It is generous of you to lend your good-credit status to a family member or friend by cosigning on a credit card. Be aware, however, that when you cosign on any loan or credit arrangement, you are entering into a binding legal agreement with a creditor, and your signature means you agree to be held responsible for the entire debt. Think first before you agree to cosign for a credit card and then think again. Consider demanding some assurances up...

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How Do Credit Advisers Work?

Credit advisers help when you cannot straighten out your finances on your own. Credit counseling companies employ advisers to assess your individual situation and explain your options. Many credit counseling firms are nonprofit, offering free or affordable advice. Credit advisers work with clients through face-to-face meetings, online or on the phone, making their services convenient to access. Counseling Your best option to get out of debt depends on your individual financial situation, including bills owed, income, savings and other factors....

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How to Track Debt

Failing to keep track of financial debt will create loads of problems down the road. If you do not pay close attention to financial transactions, debt will become out of control and difficult to reduce. CNN Money states, "If you want to get your debt under control, start by figuring out your spending patterns and identifying unnecessary expenses." Diligently tracking financial debt will not only make you aware of spending habits, but it will put...

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Debtor's Rights for Garnishment in Oklahoma

Oklahoma residents who are facing wage garnishment from a creditor should be aware of their rights under Oklahoma law. Both state and federal laws limit the amount that can be garnished from your paycheck. If the garnishment is for child support or unpaid taxes, the allowable amounts can exceed the federal limit. Debt Garnishment Garnishment laws for debt collection in Oklahoma follow federal law. The garnishment can be no more than 25 percent of your weekly pay, and you must have at least 30 times the federal minimum wage left. If your...

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