Consolidating Credit Vs. Not Consolidating Credit

Credit debt can sometimes get out of control and consumers are forced to consider their debt management options. One option is debt consolidation. Consumers who are not familiar with the process of consolidation may not consider taking advantage of it. Understanding the process of consolidating credit versus not consolidating credit will assist consumers in making that financial decision. Taxes You can help your tax situation when you consolidate...

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Tennessee Consumer Rights When Sued by a Collection Agency

The Consumer Credit Protection Act protects the rights of a consumer sued by a debt collection agency in Tennessee and other states across the country. This law caps the amount of money a collection agency or creditor may pursue through wage garnishment, allowing a consumer to keep funds necessary to meet living expenses. Each state, including Tennessee, also sets a statute of limitations providing a set amount of time a creditor has to legally collect. Statute of Limitations The statute of limitations for debt collection in Tennessee is...

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What Can You Use As Collateral for Personal Loans in Texas?

State laws govern commercial and personal loan transactions. In Texas, the Office of the Consumer Credit Commissioner enforces the state's lending laws protecting consumers from deceptive lending practices. The unique homestead laws in Texas prohibit personal loan lenders from taking exempt homestead property as collateral. Lenders cannot collect certain types of personal and real property from borrowers who default on their personal loans. Homestead...

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A Plan to Pay Off Debt

Creating an effective plan to pay off debt requires carefully evaluating your debt and finances, and choosing a path that's right for your situation. There are clear advantages to eliminating debt, such as a higher credit score and easier loan approvals. You didn't accumulate debt overnight, so don't expect quick results. Be patient and stick with your plan to gradually reduce balances. Start With the Lowest Balance There are several methods...

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What Can Happen if I Have a Warrant for an Unpaid Loan in Oklahoma and I Don't Pay It?

When a person owes money to a creditor, the creditor has the right to take the person to court, as long as the statute of limitations on the debt has not expired. However, according to U.S. federal law, a person cannot be arrested for failing to pay a loan. That said, if a person in Oklahoma, as in other states, violates a judge's directives in a case, he can be arrested or have a warrant issued for his arrest. Unpaid Debt When a person fails to pay a debt, the creditor has the legal option of suing him for breach of contract. When a person...

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The Debt Relief Options When Debt Settlement Is a Better Option Than Bankruptcy

Consumers who find themselves deep in debt and unable to pay their bills need a solution to their debt problems. Daily, non-stop phone calls from collectors or pending lawsuits or judgments against you can create crippling stress levels. You could look to bankruptcy for relief, but debt management may be a better option. Circumstances Bankruptcy allows a debtor to discharge their debts under the supervision of the bankruptcy court, in exchange for the surrender of all non-exempt property for sale with a Chapter 7 bankruptcy, or submitting...

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How to Get a Garnishment Removed From My Checking Account

Your checking account can be frozen and garnished by creditors looking to collect on owed debts. The creditor obtains a court order permitting the removal of funds from your checking account to satisfy a money judgment, tax debt or support order. The order is served on your bank, freezing your account. You cannot access your money while the account is frozen, and once the time dictated by state law has passed for you to challenge the action, the money owed is removed from your account. Your checking account can be brought down to zero or a negative...

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How to Settle Credit Card Debt for 50 Percent

Settling your credit card debt for 50 percent of your total balance is possible, but the degree of difficulty will vary depending on the individual situation. For example, someone who appears to be in good financial condition will have a hard time convincing the credit card company to settle the debt for 50 percent. However, if they feel they may lose the entire debt to a bankruptcy or charge off, the company may be willing to work with you. Instructions 1 Begin saving every spare dime you can to pay off your debt. Credit card companies...

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How Often Can I Petition for Bankruptcy?

Job loss, divorce or illness can reduce income, and if you're unable to pay your bills, you may consider bankruptcy as a solution to overwhelming debts and creditor harassment. However, there are consequences to filing bankruptcy and limits to how often you can petition the courts for help. Definition Consumers can file either a Chapter 7 or Chapter 13 bankruptcy. Both types of bankruptcies help with debt management. Under a Chapter 7 bankruptcy, debtors can possibly have debts eliminated or discharged by a court, whereas a Chapter 13 bankruptcy...

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Acceptable Consumer Debt Ratio

The acceptable consumer debt ratio is an elusive number, with no real agreement amongst experts as to how much debt, if any, a person should carry. American society has also become enamored with debt, and people justify high debt loads in many different ways. Personal finance is personal, and you must make your own decisions as to what is acceptable with the help of solid guidelines, and by ignoring other people's foolish decisions. Credit Utilization Consumers interested in having the highest FICO credit score possible need to either carry...

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5 Positive Uses for Credit

Many people have lines of credit, whether in the form of loans or credit cards. Many, however, fail to use such lines of credit wisely. But lines of credit can work to your advantage. In some circumstances, a line of credit is the only way to increase your net worth or get yourself out of risky situations. Home Purchases When purchasing a home, credit comes in the form of a mortgage. Not only does owning a home remove the obligation of paying rent, but it also gives you your own piece of collateral that can be used for future financial...

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How to Get a Debt Discharged

As time goes by, an unpaid debt will age. Although a statute of limitations is present in each state that regulates the amount of time an individual or company has to file a lawsuit against you to recover the debt, that does not change the fact that you still owe it. The only true way to legally discharge an outstanding debt is to have that debt included in a Chapter 7 bankruptcy. If you file bankruptcy on your debt, the court may dispose of your legal liability to repay what you owe. Instructions 1 Find out if the debt is eligible to be...

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Can Unemployment Garnish My Federal Taxes?

When a person is laid off from his job, he will often, if eligible, choose to receive unemployment benefits from his state government. These benefits are used to pay basic bills. However, if the person is awarded benefits incorrectly or through fraud, he may owe the state money, which can be collected through garnishment. Unemployment Benefits Unemployment benefits are only eligible to certain workers, namely people who have been laid off for reasons that were not their fault. These benefits are free -- a person does not have to pay any...

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How to Avoid Creditors Seizing Your Bank Account

If a creditor threatens to seize or levy your bank account, take action. You have several options for protecting your funds, including working out a payment plan, segregating protected funds and proving financial hardship to the court. As a last resort, you can also file for bankruptcy, which stops all collection activity, including asset seizures. Instructions 1 Contact your creditor directly to work out a payment plan or negotiate a settlement. Ideally, you should do this before the creditor files a lawsuit, as most creditors must win...

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Negatives of Debt Negotiation

If you have extremely high credit card balances and interest rates, negotiating with your creditors to force a settlement seems like a logical path to save money and solve your financial woes. However, merely suggesting to a creditor that you wish to negotiate your outstanding debt can cause problems, and the impacts can become even more severe in the future. Whether you choose to negotiate with the creditors yourself or with the fee-based assistance of a third party, the negative consequences of this approach are far-reaching. Account Closure...

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How Do I Lower My Credit Card Bills?

The average household credit-card debt in the United States stood at $8,329 at the end of 2008, according to the 2009 Nilson Report. That figure is all the more incredible when you consider that it includes households that don't have any credit cards at all. If your credit-card debt has spiraled out of control, don't panic; there are steps you can take to lower these bills. Change the way you pay Your credit-card company would like you to pay the same way every month, by sending in your minimum payment once every billing period. Problem...

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Does the Debt Have to Be All Mine For a Debt Consolidation Loan?

Generally a debt consolidation loan allows you to pay off only debts that you are responsible for. However, a variety of loans can be used for debt consolidation that offer more flexibility. Debt consolidation helps reorganize finances, but it is important to note that your personal debt level increases if you use a consolidation loan to pay someone else's debts. Home Equity Loans Home equity loans are often used for debt consolidation loans and allow you to determine how the money is spent. You can pay off your own debts as well as the...

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Does a Judgement Have to Be Repaid?

A judgment is created when someone takes you to court, sues you and wins. A judgment is expected to be paid and can be collected by alternative means if you don't willingly pay it yourself. Significance A judgment can be collected by various means, including wage and bank account garnishment. Wage garnishments are limited to a certain percentage of your income, which varies by state. People who don't have a bank account and who don't hold a regular job may be able to escape these collection methods. Time Frame Each state has a statute...

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Can Debt Collection Agencies Send You a Summons to Appear in Court?

Your inability to pay off your collection accounts does not negate the debt collection agency's right to recover the unpaid balance you owe. In an effort to collect your debt, the collection agency can file a lawsuit against you. A summons serves as a formal notification of the impending lawsuit directing you to appear in court on the hearing date. Summons Delivery Collection agencies have the right to sue you for any unpaid balance you owe if you do not pay the debt voluntarily. Upon filing a lawsuit, the company must notify you of the...

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How to Keep Your Home When Financial Problems Arise

There are a number of options for keeping your home when financial problems arise, but it is important to stay in touch with your mortgage company and honestly explain your situation. Some homeowners make the mistake of remaining silent about their problems until foreclosure is imminent. By then the homeowner may have fallen behind by several mortgage payments and is battling other financial problems as well. A lack of flexibility at that point could make it impossible to prevent a foreclosure. Instructions 1 Contact your lender about a...

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How Many Points Does Moving a Collections Account Count Towards My Credit Score?

Collection accounts are considered part of your payment history by credit scoring formulas. Payments are a heavily weighted area that makes up 35 percent of your overall score, according to Fair Isaac, a leading credit score provider. Your score goes up significantly if you move collection accounts off your Experian, Equifax and TransUnion credit reports because they no longer count toward your score. Definition A collections account is a delinquent bill that was turned over to a debt collector. Some lenders hire collectors, while others...

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How to Register My Prepaid Visa Debit Gift Card

Visa prepaid debit cards are used by many different people for many different reasons. It has become a way to budget money, have a form of payment for those that do not have a bank account and even a great way to give a cash gift. The prepaid Visa debit card also offers security for card holders. By registering your prepaid Visa debit card you protect yourself and your money in case of a lost or stolen card. Registering your card is an important...

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How to Self-Check Your Credit History

The Federal Trade Commission (FTC) advises checking your credit at least once a year to guard against informational errors and identity theft. Incorrect or suspicious activity can alert you if something is afoot. Federal law requires each of the three credit reporting bureaus--Experian, Equifax and TransUnion--to provide you with your credit report, free of charge, once a year. Instructions 1 Determine the method you would like to use to obtain...

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When Do Credit Card Balances Impact Credit?

Credit card balances can negatively impact credit scores, and maintaining a higher FICO credit score involves keeping your balances in check and using credit cards responsibly. Smart credit habits open the door to finance opportunities, such as mortgage loans and lower premiums on insurances. Do your homework and understand how credit card balances can reduce credit scores. Balances and Scoring Credit scores range from 300 to 850, and several factors contribute to maintaining a high score. Some consumers are unaware of the relationship...

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Can a Salary Be Garnished From a Credit Card After Many Years?

Because credit cards carry fees and high interest rates in the event of late payment, it is relatively easy to rack up a large amount of debt. Credit card companies generally have the right to sue for recovery of the money charged against a card. However, the company must file the lawsuit before the state's statute of limitations runs out. If the lawsuit is filed, garnishment may be an option. Credit Card Debt A credit card company is allowed to sue for the recovery of a debt that stems from the use of a credit card. Generally, these lawsuits...

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Cheapest Way to Consolidate Debt

If you have borrowed money through credit cards or personal loans and do not have the ability to pay them back, you may be at the mercy of high interest rates and finance charges that never allow you to be free of the debt. A debt consolidation loan can help you pay off your debts faster by making small monthly repayments to only one lender. This is a popular strategy for consolidating your debt at a low cost and can give you more flexibility with your finances. Heres how to get started on the loan consolidation process: Instructions 1 ...

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Can a Hospital Go After My IRA to Pay Medical Bills?

Medical expenses can be a severe hardship. Even for those with medical insurance, a course of treatment for cancer can run up to more than $100,000. If you have an 80/20 plan -- also known as "20 percent coinsurance," that can still leave you with a $20,000 bill at the end of the year, plus a deductible. A 2005 Market Watch survey found that medical expenses contributed to 17 percent of all bankruptcies in America. However, Congress recognizes that while bills need to be paid, you also need to provide for yourself in retirement. Congress has therefore...

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Does Getting a Debt Consolidation Loan Mess Up Your Credit?

Some people get a debt consolidation loan to try to rebuild their credit scores or to help deal with debt problems. While a debt consolidation loan can help in both areas, it also can hurt your finances and credit scores in some cases. How you handle your debt consolidation loan is the key factor in determining how the loan will impact your credit. New Loans Anytime you take out a new loan, you're likely to experience at least a slight drop in your credit score. Credit scores are based on various factors, one of which is the number of new...

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Credit Counseling Through Employers

Employers do not directly counsel employees who are having debt management problems, but they often help workers find appropriate credit counseling assistance. Many non-profit credit counseling companies help you get a handle on your debt for free or at affordable rates, but some charge excessive fees or try to push you into inappropriate programs, the Federal Trade Commission warns. Employers make referrals to legitimate counselors. Referrals Start with your company's human resources department for a credit counseling referral. The department...

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Texas Debt Elimination Programs

Texas residents who are struggling with debt have access to debt elimination programs to help them turn their financial situations around. If you need assistance regaining control of your finances, you can select an available program through a non-profit or for-profit credit counseling agency or company to help you meet your goals. You can check with the Texas Office of the Consumer Credit Commissioner to locate licensed agencies in your area. ...

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Can Creditors Come After a Son After the Death of His Mother?

The sole purpose of many creditors and collection agencies are to try and recuperate late payments or losses. In the event of a death, creditors may try to hold the surviving children of the deceased responsible for the debts owed by parents. Depending on the type of account and originating loan, some creditors may be accurate in trying to collect from other parties. However, there are instances where the children of the creditors are not liable...

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What Are the Advantages to Paying Off a Car Loan in Full?

Paying off a car loan in full over a relatively short period is an excellent way to reduce costs and overall personal finance risks. Auto loans differ significantly from other secured loans like mortgages in that the asset by which the loan is secured constantly depreciates. If the car is involved in an accident, the value of that asset can decline even more precipitously. Repaying the auto loan faster than necessary reduces the pressure on the owner...

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Debt to Savings Ratio

It can sometimes be confusing to figure out all the "appropriate" ratios for your finances. You may often hear terms such as "income to debt ratio" or "debt to savings ratio." Knowing what those terms means and how to apply them to your personal financial situation can be the difference between financial success and failure, especially if something happens unexpectedly and you need some quick cash. What is Savings? While this may seem like an elementary question, savings is the amount of money you have in the bank that you can easily access...

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Can Pell Grant Funds Be Garnished?

If you have a judgment against you or you have defaulted on a debt, your creditors have a right to garnish your wages and seize your assets to pay off the debt. Should your bank account be subject to seizure, any funds deposited at the time will be frozen and unavailable to you, unless the source of the funds is exempt income. Many federal benefits, such as educational assistance, qualify as exempt income. Pell Grants A Pell Grant is a federal program that provides financial assistance to low-income undergraduates, and some postgraduates,...

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I Need Help Paying for a Judgment

When a creditor takes you to civil court for a debt and you lose the case, the judge awards a judgment against you. The judgment orders you to pay the creditor what's owed, in addition to court costs and filing fees. Certain states, including Tennessee, allow you to file a slow-pay motion to reduce the monthly amount you have to give the creditor. The Hearing A judgment against you is a court order to pay a debt. Ignoring the order to pay...

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How to Reduce Debt on Credit Card Loans

There are a number of things that you can do to reduce your credit card debt. Reducing credit card debt can get you on track to eventually becoming completely free of credit card debt and not having to worry about getting late or over-the-limit fees. Instructions How to Reduce Credit Card Debt 1 Stop charging items on your credit card. By not charging any more items to your cards, you will stop incurring debt on them. Instead, pay for everything with cash, and if you don't have the cash to pay for something, then wait to purchase it when...

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Credit Score Procedures

Credit scores help lenders determine whether you are a worthy borrower. Your credit score is derived from information obtained from your credit report each month. Creditors submit information to credit bureaus related to your payment history and current balance. Individuals looking to improve their credit scores should learn credit scoring procedures so they can find areas to make the biggest impact. Percentages Credit scores are determined by many factors, but there are five primary categories. Each category carries a different weight...

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Debt Collection Laws and Limitations in Ohio

Like all states, Ohio regulates the actions creditors can take to collect a debt. If you default on a debt, you may receive calls or letters from creditors or collection agencies, and they may eventually file lawsuits against you. However, the law prohibits creditors from harassing you. Your Rights If a debt collector calls you, he must send you a letter describing the debt within five days of the call. He must allow you 30 days to request...

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