The Definition of Debt Deflation

Debt deflation seems like a dense term you might hear in your Economics 101 class, something that you must study but has no relevance in real life. However, debt deflation can have serious consequences on your investments and has real relevance both in history and in modern everyday life. Definition Debt deflation, according to the Contrary Investing Report, occurs when there is an abundance of outstanding debt that goes unpaid. Values of...

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Why Pay Debt Collectors?

Debt collectors purchase a variety of debts from companies that cannot collect, such as hospitals and credit card companies, and attempt to recover those debts themselves. The debt collection agency profits by purchasing accounts for far less than the value of the debt and then collecting the full balance. There are several valid reasons consumers pay debt collectors. Avoiding a Lawsuit Debtors sometimes agree to pay off their collection...

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What Does Being Turned Down for a Credit Card Do to Your Credit?

Being turned down for credit is often disappointing but causes little damage to your credit score unless you apply repeatedly. An inquiry is added to your credit report each time a creditor reviews your file, with excessive inquiries causing your credit score to drop. A single inquiry usually has little effect. Credit Bureaus TransUnion, Equifax and Experian are three major credit bureaus providing credit reports to banks, mortgage companies and other lenders. Credit reports contain detailed information about your credit, including the...

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How to Recover From Debt

It seems like your world is over. You are in so much debt that you're not sure what to do with yourself or even where to start. While it's not going to happen overnight (unless you win the lottery), it is possible to recover from debt with a little planning. After you are finished reading this article, you will have plenty of ideas of how to get yourself out of debt which will lead to a much healthier and happier you. Instructions How to Recover...

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How to Get a Loan for Daycare With Bad Credit

If you want to start a daycare business but are discouraged by the potential effects of your bad credit, you should know that there are still ways to get a loan. Even if you have bad credit, there are certain lenders who can step in and help, even if they are not able to provide the best terms available. By getting a loan, you will have the potential to make money and rebuild your credit to improve your current situation. In order to get a loan for a daycare with bad credit, follow these steps. Instructions 1 Improve your credit. Although...

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How to Negotiate Interest Rates With Debt Collectors

Between harsh phone calls, bills in the mail and threats to garnish your paycheck or take you to court, you may feel unequipped to negotiate with debt collectors. Additionally, your stress may double if sky-high interest rates are keeping you from making headway on your payments. However, if you take the time to develop a proposal, you may be able to convince your debt collector to reduce your interest rates -- which can significantly reduce the time it will take you to repay your debt, and help you to finally cut all ties with the collections...

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Should I Pay Extra on My Mortgage or My Credit Cards?

If you have extra money to pay creditors, analyze where the money would be most effective. The answer lies within your personal finances. Assessing the situation will help you decide whether to pay extra on your mortgage or credit cards. Considerations Extra money indicates you are managing to live within your means. Financial consultants recommend a savings account with six months of living expenses, according to Bank of America. This savings account is a priority for your protection in case you lose your income source or become ill. Once...

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What Happens to Your Credit Score When You Get Sued in Circuit Court?

If you do not pay a debt, your creditor will typically respond by sending you letters and calling you to compel you to bring your account current. However, if you avoid your creditor or refuse to negotiate a repayment arrangement, the creditor may sue you for the debt. Most debt lawsuits are handled by county municipal or magistrate courts. However, if the debt meets a certain monetary threshold as determined by state law, the creditor may file the lawsuit in civil court in some states. A debt lawsuit filed in circuit court can severely damage...

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Can I Be Sued in a Credit Card Debt Settlement Program?

When people borrow money using their credit cards, they are legally required to pay this money back. Failing to pay this money back according to the repayment terms in their credit card agreement places the person in breach of contract. A debtor can, in some cases, be sued by his credit card company. A person can be sued even if he is enrolled in a debt settlement program, although it may be less likely. Credit Card Debt A person incurs credit card debt by borrowing money against the card's line of credit. If a person doesn't pay the money...

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Can Canceling Credit Cards Help My Debt Ratio?

Your instincts might tell you that it's best to close a credit card after you've paid it off. However, if you're concerned about your debt-to-credit ratio, it's actually better to leave unused accounts open. Credit scoring companies don't care whether your accounts are active or inactive. Even if your lender eventually closes your card due to inactivity, this won't hurt your score any more than if you'd closed it yourself --- and in the meantime,...

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How to Get Rid of Loans

Getting rid of loans could help you become debt free. However, not all loans are easy to eliminate. Secured loans such as mortgage loans and automobile loans are backed by collateral. You must pay these loans off in full or forfeit the house, car or other collateral. Even then you could still be held responsible for a portion of the loan after the property is sold at auction, according to CNN. Unsecured loans, which do not require collateral, are easier to eliminate. Instructions 1 Make separate lists of your secured loans and unsecured...

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What Does Account Update Mean on a TransUnion Credit Report?

TransUnion is one of the three main credit reporting agencies that maintain and sell consumer credit information. The types of information listed on a TransUnion credit report include personal contact information, employment history, public records and individual credit accounts. An account update on a TransUnion report means that new information is reported. TransUnion uses codes to describe account information and updates; reading a TransUnion requires code translation. Types of Accounts TransUnion indicates the type of account with single...

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What Happens if You Have a Lien & No Job?

Sometimes having a lien and no job can go hand-in-hand. A creditor can only get a lien against you after filing a lawsuit, something that usually doesn't happen until you are months behind on your payments. If you have no job, this could easily happen as you divert your resources to other expenses. While a lien may not directly affect you while you have no job, you will usually have to pay it off eventually. Liens If you owe a creditor money, that creditor cannot simply decide to file a lien against you. A creditor must win a judgment in...

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Can a 1099 Be Garnished in Indiana?

Many people do not earn their income working regular 9 to 5 jobs. Rather, these people may instead do contract work for various companies. So, instead of being paid under a regular W-3 classification, in which the individuals have their salary withheld from their paychecks, they are paid under 1099 status, as contractors. These payments can be garnished in Indiana, as well as in other states. 1099s A 1099 is a classification of worker, one who is not a regular employee, but a contractor. There are many differences between contractors and...

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How to Manage Credit Card Debt with a Simple DIY Plan

Although financial advisers and debt management businesses provide services to help individuals handle their debt, you should first try managing your debt on your own. That way, all of your money can go toward paying your debt rather than paying the professionals. All credit card debt management strategies come down to one major principle: paying more than the minimum on your bills. This accelerates your credit card debt payment and cuts down on how much interest you have to pay. Instructions 1 Call each of your credit card companies and...

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Can You Offer Settlement for Wage Garnishment?

Wage garnishment is extremely harmful to personal finances and can create significant embarrassment for the person whose wages are garnished. Wage garnishment allows a creditor to receive a percentage of a person's paycheck each pay period. It is possible to offer a settlement to end garnishment, but the creditor does not have to agree. A debtor seeking to end garnishment through a settlement should be willing to settle for the full amount in a lump sum -- or agree to pay more than than the amount due as part of a payment plan. Taxes The...

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Information on Online Bankruptcy

Filing bankruptcy is a process that can help you get out of debt and get your financial life back under control. One of the ways that you can do so is to use an online bankruptcy filing service to help with the process. This can provide you with some benefits, like lower costs, but you may not get the personal service that you need. Online Service Even though you might work with an online bankruptcy service, this does not necessarily mean that you can do everything online. To file bankruptcy, you will have to go to your local bankruptcy...

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How to Build Credit for the First Time

No matter how great your sense of humor is, how much education you have or how well you can cook, all a lender is going to see to make a judgment about you is your credit history. This is why it is vital that you build a good credit history early on in life. Your credit impacts more than just your interest rates on credit cards and loans. Poor credit can cause you to be turned down for an apartment, cell phone or the job that you want. Unfortunately,...

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How To Avoid Judgments

A judgment occurs when a creditor who is owed money for a legitimate debt has been trying to collect and has been unsuccessful. As a last resort, the creditor will go to the court and ask for a judgment against the person or entity who owes them money. A judgment is filed by the court against the debtor for the amount of the debt, where it goes in county records and is put on the debtor's credit report. Judgments, even when paid, stay on your credit report for 12 to 20 years and can seriously affect your ability to get a loan or buy a home. There...

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About Student Loan Payments

College is expensive, and for this reason alone, many college students rely on federal and private student loans. Qualifying for a student loan is relatively simple, and government loans don't involve credit checks. Thus, people with bad credit or no credit history can obtain a student loan. And the best part, federal and private student loan lenders offer flexible repayment plans to accommodate borrowers. Function Federal and private student loans are extremely useful. Without them, many people would be unable to attend a college or university....

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How to Fight Home Foreclosures

When the reality of losing your home hits, it can be easy to think that there is nothing you can do to fight foreclosure. Depending on how far along in the process it is, there are specific steps you can take to ensure you keep your home. Instructions Fighting a Home Foreclosure Early in the Process 1 Renegotiate your loan with the bank. No one wins in a foreclosure situation and your bank may be willing to renegotiate payment terms. Your options include asking for a payment holiday, making partial payments until you get back on your feet,...

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Can a Creditor Take My Car?

Creditors can take your car, your house, your bank accounts, your boat and anything else of value that you own. Of course, to accomplish this, the creditor needs a judgment issued against you by a court for the seizure. If the creditor is the loan holder for the car and you default on the loan, the circumstances are different and different laws apply. In this case your car would be termed repossessed instead of seized. The Process If you owe a debt to a company, they can sue you to recover what you owe. If the creditor wins the lawsuit,...

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How to Help My Husband Rebuild His Credit

When one or both members of a couple has bad credit, it can increase stress on the marriage. Managing your credit and debt is a good way to take a step toward financial freedom and a happier marriage with fewer worries. If you want to help your husband rebuild his credit, the most important thing to remember is to stay positive. When people have bad credit or a lot of debt, they often feel overwhelmed by the entire process of rebuilding their credit. This is, of course, the perfect time for a loved one to step in and offer help. Instructions...

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Can Collectors Freeze My Checking Account?

Many consumers have questions about the debt collection process creditors may use. Often, they are confused about what a collector can and cannot do in order to legally collect a debt. The collection process can lead to a creditor seeking your assets, and that includes your checking account under certain circumstances. Court Orders A debt collector must first win a lawsuit in court before they can freeze an asset like your checking account. Even after that, they must get an order from the judge in the case specifically allowing them to...

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How Bad Debt Affects Your Credit Score

Your credit score is an estimate, made available to lenders and other financial services companies, of the likelihood that you will pay off a new loan. The scores are developed by credit report agencies, which collect information on your financial history and enter it into a formula, calculating your creditworthiness. When you fail to pay back a loan according to its terms, this makes you appear less creditworthy and lowers your score. Beginning Scores According to the Fair Isaac Corporation, people with higher credit scores will actually...

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How Can I Get a Title From the Bank Used as Collateral?

Titles to property, such as boats, recreational vehicles and automobiles, are often held by banks as collateral for loans. The bank establishes a value for the property through an appraisal and compares the value to the loan request. Loan approval is possible if the value of the titled property exceeds the requested loan amount. The bank will release the title after receiving all payments on the loan. Instructions 1 Confirm that the title and loan are in your name. It is not possible for you to obtain the title if the loan is not yours....

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Debt Reduction Planning

Some people come to the realization that they have too much debt before they get in over their heads, while others may reach a financial breaking point first. Getting into debt is easy, getting out is extremely tough. Too much debt is unsustainable, and it prevents you from reaching many financial goals in your life. With a bit of planning, effort and consistent work however, you can begin your personal path to debt reduction. Stop Creating Debt...

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Can a Collection Agency Legally Add on Extra Fees?

If you have unpaid bills, you may find yourself receiving phone calls and correspondence from a collection agency. This is certainly not something you want to disregard; it is sufficient cause for concern. One important detail that may alarm you is the addition of interest fees and other charges to the amount you owe. While this may seem outlandish, a collection agency may be well within its rights to add on these fees, depending on your original...

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Statute of Limitations on Debt Collection in Oregon

A statute of limitations is a law that limits the amount of time in which a legal procedure may be enacted. After this period expires, the debt may not be legally challenged in a court. All states have a stature of limitations regarding debt collection, all with different lengths of time. The statute of limitations of debts in Oregon depends on what kind of debt is outstanding. Judgments A judgment is a result of a court case, both civil...

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How Can I Freeze My Credit to Prevent Credit Fraud?

Credit fraud and identity theft are two of the fastest growing crimes in the world today, according to USAToday.com. While both of these crimes affect your bottom line, they take different routes to that end. The difference lies in whether the information stolen is to be used to charge illegal purchases on an existing card or if personally identifiable information will be used to open new credit in the victim's name. Credit History Protection Placing a freeze on your credit report prevents creditors, employers and others from accessing...

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Can You Apply Mortgage Accelerator Principle to Credit Card Payments?

Using a mortgage payment trick, you can cut the time it takes to pay off your credit card by months and even years. The mortgage accelerator principle is not unique to real estate, it just relies on the fact that paying a bill as soon as possible is the fastest method to eliminate a debt. Also, this method forces you to pay down a credit card you might otherwise let sit. Mortgage Acceleration The mortgage accelerator principle states that you should make a payment on your account every two weeks instead of one payment a month. Some months...

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Can You Get Unemployment for Reduced Pay?

Unemployment benefits help support workers who have been laid off while they search for new work. These benefits help them maintain an adequate lifestyle while they line up another job. Although unemployment benefits are mainly meant for those who have lost their jobs altogether, workers who have had a drastic cut in pay or hours sometimes qualify for partial unemployment. Reduction of Hours If your employer drastically reduced your hours, you may be able to get unemployment even though you are still working. Each state's laws are slightly...

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Utah Garnishment Laws

Utah saw 8,906 bankruptcy filings in the first 10 months of 2010 alone, according to statistics from CreditCards.com. While incomplete, this shows a picture of the debt crisis in Utah, where the bankruptcy rate of 6.4 per 1,000 people is among the highest in the nation. Utah's garnishment laws are part of the blame for the high bankruptcy rate, according to a Brigham Young University study cited in the "Daily Herald." The laws offer little protection for debtors, according to the study, so more folks are motivated to file for bankruptcy in order...

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About Home Equity Loans & Credit Card Debt

Some people will use a home equity loan to pay off large credit card debts. The thinking is that they can save money by consolidating debt into a lower interest rate loan. If equity loans are standing at low interest rates--around 5%, that is true. However, you do need good credit to get low-interest equity loans. Most people that have a lot of credit card debt will not be able to get a home equity loan, because their credit score is low. If you have good credit, and still have a lot of credit card debt (which is possible), a home equity loan might...

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What to Do When There is Too Much Debt?

Lowering debt can provide a measure of peace and, in the long run, paying down balances increases FICO credit scores. There are several tips for dealing with too much debt. Some people ignore their debt and continue to accumulate balances. Smart consumers, however, understand the importance of careful debt management and keeping debt low. Personal Sacrifices Not everyone has extra income to pay down balances quickly, which is one reason consumer...

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Will a Student Loan Deferment Affect a Credit Score?

Student loans can be a gift and a curse. Many students are unable to afford college without the help of loans, but after graduation learn that monthly loan payments may be higher than they can afford. Luckily, there are deferment options available depending on your personal circumstances. Student loan deferments can help or harm your credit score, depending on how the debt is managed. Deferments Student loan deferments happen for a variety of reasons, including military service, unemployment or economic hardship. During a period of deferment,...

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How to Respond to a Writ of Garnishment in Maryland

If you fail to repay a debt, your creditor can sue you in civil court to recover what is owed. If the court issues a judgment against you, the creditor can then take steps to garnish your wages or bank account. In the state of Maryland, writs of garnishment are issued by the district court. If you've been served with a garnishment order, learn how to respond properly, while protecting your rights. Instructions 1 Carefully read the writ of...

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