Does Credit Card Debt Affect Credit?

Understanding credit When people talk about their credit, what they actually mean is their credit rating. A consumer's credit rating is an estimate of the creditworthiness of an individual, that is, her ability and willfulness to pay back her debtors. If you've got a credit card and you've got an outstanding balance on that card, you can expect it to affect your credit. Actually even a credit card without an outstanding balance can still affect...

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Hardship Information for Credit Issues

If you are experiencing a hardship such as unemployment, serious illness, the birth of a child, death of a loved one or excessive credit card or medical debt, it can create havoc with your finances. Many creditors will work with you and make some adjustments or amendments to your credit accounts. Significance You can contact your credit card companies and let them know you are experiencing a hardship and they may be able to get the interest reduced on your credit cards as well as a reduction in your monthly payments. Considerations ...

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Credit Cards to Improve Credit Rating

Understanding the elements that make up your credit score will help to build your confidence about using your credit cards appropriately. Creditors are looking for consumers who know how to handle their finances responsibly. By using your credit cards wisely, you'll see a boost in your credit ratings and you'll feel in control of your money. Opening a Credit Card For those who don't have a credit card, opening an account helps to add to credit...

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Is a Gambling Loss a Tax Write-off?

Unlike many aspects of the U.S. tax code, the sections that deal with gambling losses are relatively straightforward. To the Internal Revenue Service (IRS), nonprofessional gamblers can write off losses, but only if they keep records and itemize deductions. Professional gamblers may deduct their losses as long as they show their activities are full-time. Failure to follow these basic strictures may result in audits, fines and penalties that can easily...

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How Is My Future Damaged by Filing Bankruptcy?

There are numerous valid reasons to file for bankruptcy protection. But prior to contacting an attorney and filing the necessary papers with your local court system, consider the damages and consequences that result from a bankruptcy. Based on this information, determine whether you can or should avoid the bankruptcy process. Purpose of Bankruptcy As an individual debtor you can file either Chapter 13 or Chapter 7 bankruptcy protection from creditors. Applying for and obtaining loans and credit cards involves an agreement to repay these...

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Does Debt Come Off My Credit in 7 Years?

Credit reports are easy to damage and hard to fix. You can spend years steadfastly making payments on time only to have financial catastrophe wipe out years of credit building. Negative items on your credit report stay on your report for varying lengths of time, but the range is from seven to 10 years. Items Your credit report is a file that lenders and public institutions use to report information about your financial obligations. It's maintained by three credit reporting organizations: Equifax, TransUnion, and Experian. Your credit report...

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How to Establish a Credit File

Opening credit accounts is relatively easy, but establishing good credit isn't. As Shakespeare said, "Aye--there's the rub." It's easy to feel free about spending when you have a few credit cards in you wallet, so treat your credit with caution, and avoid too much debt. Shakespeare also said, "neither a borrower, nor a lender be," but today, if you don't borrow, you can't establish credit. And without a healthy credit file, modern life is challenging....

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Mortgage & Closing Help

Once you get to your mortgage closing, the rest of the process is fairly straightforward. Just shake hands with your lender and sign the final loan paperwork she's prepared. Though most of the process is complete, you still might have a few final details to tie up before you close on your new mortgage. Seller's Assistance Some mortgage lenders allow you to get what is called seller's assistance from the seller of the home to help you close the loan. The seller's assistance covers a percentage of the closing costs -- usually up to 6 percent...

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What Type of Agreement Are Credit Cards?

American consumers owned about 609.8 million credit cards, according to The 2008 Survey of Consumer Payment Choice developed by the Federal Reserve Bank of Boston, which is enough for about two cards for every man, woman and child in the country. Credit cards, as a form of credit, are subject to various state and federal laws, some of which are based on the categorization of credit cards as open accounts and not as written contracts. Credit Card...

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Can Debt Be Forgiven Due to Financial Hardship?

Most consumers take out loans or incur other forms of debt with the intention of repaying the debt. However, the debt load can grow over time and become unmanageable. Creditors may be able to work with the debtor, depending on the circumstances. Often, a debtor must demonstrate some form of financial hardship to qualify for relief. Financial Hardship A number of things can constitute financial hardship. Often, it results from an involuntary reduction in income or an unexpected and unavoidable expense. Examples of involuntary reductions...

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Will a Bank Consolidate Credit Cards?

When you consolidate credit cards, you take out a loan to pay off the current balances you owe to each credit card. By doing this, you transfer multiple debts to the lender who gave you the consolidation loan. Many consumers use bank loans of one kind or another to consolidate credit cards, though you should consider the loan terms carefully before agreeing to take on more debt. Bank Loans To consolidate your credit cards, you need to find a lender willing to give you a loan. Whether the lender is a bank, another credit card company or...

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Is There an Amount Your Credit Card Debt Has to Be Before the Creditor Gets a Judgment Against You?

A judgment in a credit card case cannot be granted until a lawsuit is reviewed in court. In theory, a credit card company could sue you and win a judgment for any amount -- even a few dollars. However, from a business standpoint it isn't practical for card companies to sue for small amounts as it could incur several hundred dollars in expenses pursuing you in court. The card companies make individual decisions regarding when to sue, and there is no published standard. Payment Arrangements Ignoring a delinquent credit card debt and hoping...

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Step-by-Step Foreclosure in Maryland

The foreclosure process in Maryland can start as soon as you miss a payment, but actual eviction can take more than six months. The foreclosure doesn't necessarily end the previous owner's financial responsibility, however. The lender has up to three years to file for a deficiency judgment against the former owner if the house is sold at auction for less than the outstanding balance due on the loan. A deficiency judgment allows the lender to collect the difference in the auction price and the sales price at auction. Instructions 1 Confirm...

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Nonprofit Debt Consolidation Help

Many consumers have plans of paying off their consumer debts and improving their personal finances. Unfortunately, debt elimination is easier said than done. With high interest rates and high monthly minimums, paying off debt can prove challenging. Using a nonprofit debt consolidation company can help eradicate your debt. Nonprofit vs. Profit There are two types of debt consolidation companies -- nonprofit companies and for-profit companies....

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Christian Credit Help

The Bible is filled with references of how Christians should handle debt and finances. Paul writes in Romans 13:8, "Let no debt remain outstanding." Sobering words for Christians who find themselves drowning in debt. Achieving financial freedom means gaining spiritual freedom as well. To that end, many companies now offer debt relief with Christian themes and philosophies. Credit Counseling Credit counselors review income and debt to get...

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Free Credit Reports Under the Fair Credit Reporting Act

Whether you are applying for a job, looking to purchase a new home or attempting to finance a college education, the information on your credit report says a lot about you. It provides lenders with information about how you handle money and how you handle your financial responsibilities as they pertain to debt and credit. Reviewing your credit report regularly helps alert you to possible identity theft and credit reporting inaccuracies that can influence lenders' decisions. Background Enforced by the Federal Trade Commission (FTC), the...

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Are Bankruptcy Filings Public Information?

Increased numbers of bankruptcy filings mean that the social stigma once attached to bankruptcy is fading. However, bankruptcy filings are still public information, meaning anyone has access to information about debtors who have filed. Process Bankruptcy is filed through federal courts. Debtors who file must turn over all financial information--income and debts- to the court as part of the bankruptcy process. This information becomes part of the court record, which is available to the public. Location A bankruptcy court is included...

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How to Wipeout Credit Card Debt Without Going Bankrupt

Faced with rising debt and uncertain economic conditions, some people consider bankruptcy as a way to alleviate their financial pain. However, bankruptcy can affect other aspects of life, including finding future credit or loans, and possibly finding a job. Whatever your financial situation, there are alternatives to bankruptcy that you can consider to help you wipe out credit card debt. Instructions Instructions 1 Determine the amount of your monthly income and expenses, including your credit card debt. If you have excess income, or find...

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What to Say to Help Reduce Your Credit Card Debt

Credit cards let both unemployed and employed individuals manage cash flow and survive times of financial hardship. However, the price for this convenience is debt. Often, when coupled with proper debt management techniques such as budgeting and expense tracking, contacting your credit card company reduces the credit card debt you have. When you contact credit card companies to reduce debt, approach the credit card company with the right data and...

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What Security Problems Come With Using Credit Cards?

Credit cards offer convenience when shopping online or in person. They can help you with personal security by allowing you to purchase goods and services without having to carry cash. But credit card fraud can occur for months without the credit card owner even realizing it, according to the Federal Trade Commission (FTC). You should understand the security problems posed by credit card use. Credit Card Fraud One of the most basic security...

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Can Unsecured Creditors Garnish SSI, SSDI or Social Security Benefits?

When a person owes a creditor, he faces the prospect of having his income garnished by the creditor. This means that the creditor siphons off a percentage of the debtor's income until the money that the debtor owes is paid off. Garnishment is more often applied to unsecured loans, as secured loans --- loans in which the debtor offers collateral --- can be paid off with the collateral. Private creditors cannot, however, garnish government benefits. Garnishment When a creditor seeks to garnish a person's income, he must first take the debtor...

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How to Compare Fixed Personal Loan Rates

There are not a lot of choices to choose from when comparing fixed-rate personal loans. A fixed personal loan is an installment loan. The monthly payments are fixed over the life of the loan, and the proceeds from the loan are given to you in a lump sum when the loan is approved. You are not allowed to draw additional money from the loan. In that way the installment loan is somewhat similar to other loans. A mortgage loan can offer a fixed interest rate, but it is not considered a personal loan. The same is true for an auto loan, which also can...

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How to Bring Your Credit Score Up

Your credit score could spell the difference between owning and renting, and determine the interest rate you're given when you make a large purchase. Because of this, it's important that you maintain a good credit score and consistently find ways to improve it. There are some general rules that should be followed in order to improve a low credit score. Instructions 1 Start by building credit. For too many people, the fact that they have no credit score is often more damaging than having a poor one. You should start building your credit as...

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What Happens to Credit Card Debt When You Die in Texas?

Credit card debt is one of the most common types of debt Americans carry aside from their mortgage. When you pass away, your spouse, heirs or estate administrator must take on the task of informing all outstanding creditors and arranging to pay off any remaining balances. The asset value of your estate may be enough to pay off unsecured debts, but in Texas, your spouse could potentially be held liable if your estate cannot pay off the credit card...

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Strategies for Decreasing Debt

Decreasing debt helps increase disposable income, and once you've paid down your debt, your credit rating will slowly increase. Several strategies help reduce debt. By employing these techniques in your life, you can eliminate your debt and improve finances. Cash Only Many people use credit cards to buy items that they otherwise couldn't afford. And when they can't pay off the charge, charges pile up and debt gets out of control. Reversing debt problems caused by the overuse of credit cards starts with putting plastic away and relying on...

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The Best Ways to Organize Bills

Your bills come each month whether you want them to or not. Setting them aside and dealing with them later can lead you to forget about their due dates. When this happens you end up having to pay a late fee. If you are willing to get organized, you can get your bills paid on time and never have to worry about incurring a late fee. This may take some time to set up, but only a few extra minutes per week to maintain. Opening the Bills Open...

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How to Do a Simple 623 Dispute

Section 623 of the Federal Credit Reporting Act gives you the right to protest items that show up on your credit report. The basic idea is that you have the right dispute your credit tradelines directly with the furnisher. You can request to see the documentation that supports the way your credit is reported. A Section 623 dispute is a dispute submitted to the original creditor. Instructions 1 Once you see an erroneous entry on your credit...

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What Happens If You Cannot Pay Your Medical Bills?

Medical bills resulting from a catastrophic injury or an unexpected illness can be financially crippling. This problem can be exacerbated if you have no health insurance. You can employ several strategies to make your medical bill payments more manageable and allow you pay them down over time. If your medical bills are too large, you may be forced to explore bankruptcy options to alleviate the debt. Negotiate Debt Negotiating medical bills is actually quite common, according to "The New York Times." Hospitals and doctors prefer to get paid...

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Federal Consumer Credit Laws

Consumer credit accounts include personal loans and credit cards. A number of federal laws govern consumer credit, including but not limited to credit reporting guidelines and billing disputes. Also, federal bankruptcy codes allow financially struggling consumers to liquidate or reduce their debts in extreme circumstances. Some states have additional laws regarding credit, but federal laws apply everywhere in the United States and its territories. The Fair Credit Billing Act The Fair Credit Billing Act provides customers and companies a...

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Rules Debt Collectors Must Follow

When you owe creditors money, you have rights under the Fair Debt Collection Practices Act, which the Federal Trade Commission enforces. This act protects you if you owe money to family members or other individuals, credit card companies, health care providers and loan companies. The debt collection act, however, does not apply to debt collectors attempting to recover debts related to a business you may own. Information Gathering and Appropriate Contacts If a debt collection agency does not know how to get a hold of you, it may contact...

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Can Credit Card Collectors Garnish Tax Checks?

The purpose of a garnishment is for a creditor to intercept wages or money paid to you to satisfy a court judgment. The garnishment order is delivered to the party issuing you the money, like your employer. Some creditors can garnish your tax refund from the IRS or your state, but civil creditors, like a credit card company, are not permitted to do so. Features A credit card company must file a lawsuit against you in court to obtain a money judgment for a debt you owe. Once the creditor receives the judgment, he can use the collection enforcement...

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Does Spending More With a Credit Card Increase the Credit Score or Limit?

You might think that spending more means you have more experience handling debt and could entice your credit card company to increase your limit, but this is not always the case. Actually, credit card debt is usually a bad thing for credit scores and overall financial health. Effect on Credit Score Spending more on your credit card will always lower your credit score. Credit bureaus factor in your "credit utilization," or how much of the...

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Can Social Security Disability Be Used to Obtain Credit?

Credit is the lifeblood of the U.S. economy. The ability of businesspeople to borrow capital or consumers get credit enables the economy to grow. Obtaining credit is based significantly on your income, so make sure to list all sources, including pensions, medical benefits, and Social Security retirement or disability benefits when making an application. Social Security Disability Social Security disability is an insurance program for workers. All workers in the U.S. have their Social Security insurance premium deducted from each paycheck,...

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Virginia Debt Relief Laws

If you are a Virginia resident overwhelmed by unpaid credit card accounts, medical bills and other debts, you potentially qualify for informal or formal debt relief. Paying your debts on time or making alternative arrangements is important, because Virginia law 8.01-246 allows most creditors to sue you for unpaid debt. Generally, creditors have from three to 10 years to sue you, depending on the type of debt incurred and any contracts you signed. Credit Counseling A number of non-profit credit counseling services offer debt relief for Virginians....

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Can You Be Garnished for Charged Off Credit Cards?

If you do not make your credit card payments when due, your creditor will typically attempt to contact you by mail or telephone to try to compel you to pay your past-due amount. After your account becomes 180 days or more delinquent, the credit card company may charge off your balance, which means that it declares the balance a business loss. A charge-off does not mean that the creditor forgives the debt. It may continue to pursue collection activities, which may include garnishment. Obtaining a Judgment A credit card company must obtain...

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What Is the Best Debt Management Program?

Tempting promises from debt management relief companies frequently cause otherwise savvy consumers to quickly part ways with much-needed funds. Doing advance homework is critical, since not all organizations are legitimate. An organization also may not provide all the services you need, such as bankruptcy or housing counseling, for example. Springboard Nonprofit Consumer Credit, accredited by the National Foundation for Credit Counseling, offered...

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Can You Have Your Wages Garnished If You Live in Michigan?

Michigan law permits creditors to seek wage garnishments to satisfy an outstanding debt judgment. The state sets clear rules about how a creditor may obtain a garnishment and what types of income are exempt from collection. Garnishments authorized by a Michigan court are unrelated to wage garnishments issued by the U.S. Department of Education to recover defaulted student-loan debt. Garnishment Levels Federal law protects the first $154.50...

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