Help With Secured & Unsecured Debt

Loans and credit agreements can be differentiated into two key groups: secured and unsecured. A secured loan is one in which a creditor has a legal interest in your property, while an unsecured loan is not. Knowing the difference between these two types of loans is key for consumers who are considering any kind of loan. Unsecurd Loans You've probably got an unsecured loan in your wallet right now. Most credit cards are unsecured loans. If you don't pay your credit card bill, your creditor cannot repossess your car to make up for the debt....

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Can Debt on Credit Keep You From Getting a Job?

When you apply for a job, you may be required to undergo a credit check. Negative information found in the check may impact whether you get the job or not. Positions that require you to handle money are especially sensitive to scrutinizing your credit history. You may not agree to have a background or credit check, however, this will most probably eliminate you as a job candidate. Debt Does Matter The amount of debt you owe, the number of...

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How to Refinance with Credit Problems

Sometimes you need to refinance your credit card debt or mortgage to be able to make payments. If you have a low credit score, it might be hard to get the refinancing you need. It isn't impossible, though, as there are ways to perhaps improve your credit and talk to lenders to help you make payments. Instructions 1 If you haven't yet, check your credit report for errors. Write to the credit bureaus and fix these to help improve your score. 2 Talk to a credit counselor who can help with credit repair and improve the look of your credit...

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Can a Repo Man Stalk You and Harass You at Work?

Work is stressful enough without dealing with harassment from a collection agency. Although creditors are allowed to use the services of collection agencies to resolve legitimate debts, the Federal Trade Commission (FTC) has limits on the tactics that collectors may use. Whether the debt is legitimate or not, it is illegal for a repo man to relentlessly stalk and harass you at work. Fair Debt Collection Practices Act The Fair Debt Collection Practices Act (FDCPA) regulates the types of contact that collection agencies and repo men can...

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How do I Establish Credit in Middle Age?

Establishing credit can be a very important step to self-sufficiency. Establishing a positive credit history opens the door to qualifying for many types of financial assistance by lending institutions. The type of lending you may qualify for with an established credit history ranges from home mortgages, personal lines of credits, and personal credit cards. Without establishing a credit history, a lender will be unlikely to give you access to the...

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Does Using Rent-to-Owns Help Build up Your Credit?

Rent-to-own arrangements can provide an opportunity for you to use an item prior to full payment and in many cases end your month-to-month rental agreement. Not to be misunderstood with a lease, such as an auto lease or a home that offers a lease with the option to buy, many rent-to-own plans can end at any time. Typically, your agreement ends when you return an item or if you stop making your required payments. Rent-to-own agreements that you fulfill...

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How to Eliminate Unsecured Credit Cards

Eliminating unsecured credit cards is a key to getting out from under debt. It also is a great way to rebuild credit and budget your finances. High-balance credit cards with high interest rates can dramatically lower a credit score. Cards with more than 50 percent of the balance used make a negative impact on your credit score. Therefore, ridding yourself of these types of credit cards should greatly improve your credit score. Instructions 1...

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How to Determine the Statute of Limitations on Credit Card Debts

State statute of limitation laws regulate how long credit-card companies and debt collectors have to sue you for an unpaid credit-card debt. The length of time varies by state, but the average is about six years. The Federal Trade Commission reports that credit-card debt that is beyond the statute of limitations is considered "time-barred" -- meaning it cannot be collected with the help of the court system. Instructions 1 Get a copy of your credit report from Annual Credit Report (see Resources). The site offers credit reports for free under...

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How to Locate Accounts Owed to Collection Agencies

Ignoring a debt can have severe consequences. Missing payments to your creditors damages your credit rating and may result in your debt being remanded to a collection agency (See References 1). Not only will the collection agency add its account to your credit report, but if you owe more than $100, a collection account causes additional damage to your credit score (See References 2). The Federal Trade Commission warns consumers to make payment arrangements with collection agencies to avoid lawsuits that can result in a bank levy or wage garnishment...

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Tips for a Debt Consolidation Plan

When you face the repayment of a large amount of debt, you may wish to pursue a debt consolidation plan to help with the process. By consolidating your debt, you can focus on a single payment and potentially lower your interest rate. When consolidating debt, you need to keep a few tips in mind. Negotiate Interest Rates When you enter into a debt consolidation plan, you may be able to lower the amount of interest that you pay your creditors. This is especially true if you have a significant amount of credit card debt. Most credit cards charge...

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Online Debt Information

Consumers who need advice on managing credit card debts, dealing with debt collectors or paying their taxes can find all of that information online and more. Consumer and government websites can help people unravel complicated credit and debt regulations, or find an attorney who specializes in consumer protection to handle various debt problems. Consumer Sites Consumer websites can be a good source of information about regulations intended to protect consumers in their dealings with creditors and lenders. For example, the website of National...

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Collections & the Impact on Credit Scores

Using a credit card is a simple way to pay for an item. Taking out a loan may be your only option when buying a car, house or any large purchase. The interest rate can be steep and affect you financially. However, your credit score also may be negatively impacted if you fail to make your payment on time and your debt is sent to collections. Collections Definition When you default on a debt payment, your creditor transfers your account to a collection agency that either works in the same company or is hired to collect debt on its behalf....

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How to Get Help Paying Back a Student Loan If You Can't Afford It

Because of the high cost of college and post-graduate education, recent graduates might find themselves unable to afford their student loan payments. For example, payments on $40,000 of student debt to be repaid over 10 years at 6.8 percent interest are $460.32 per month. In many situations, recent graduates will be paying more each month for their student loans than for their portion of an apartment's monthly rent. Lenders that offer student loans provide graduates with resources and alternate repayment plans to help them make student loan payments....

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Does Credit or Debit Automatically Take the Money Out?

Some debit cardholders can use their cards in ways that are similar to credit card users, but the payment process is significantly different. Credit card users usually have about 30 days to pay for purchases. Debit cardholders don't have that length of time to pay for their purchases. However, there is a delay in withdrawals from debit card accounts when debit card users sign for their purchases. PIN vs. Signature Debit cardholders usually...

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Can a Collection Agency Take Money Out of Your Check for a Home Foreclosure?

When you go through the foreclosure process, your personal assets are at risk. If the lender decides to pursue a case against you at the end of foreclosure proceedings, a garnishment order can be signed against you. However, because court cases are expensive, many lenders do not pursue this type of judgment. Significance When your house goes through the foreclosure process, it is typically sold to the highest bidder to settle the debt owed...

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How to Manage Consumer Debt

The ability to manage debt properly doesn't come easy for some consumers. As a result, many consumers accumulate a heavy debt load, which creates a major financial burden. Whether you have a little or a lot of debt, there are techniques to help you manage debt. Proper management can lead to a better credit score, and you're likely to pay off your debt sooner. Instructions 1 Determine how much you can afford to spend on debt. Get rid of debt...

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How to Clean a Credit Report With a Default Judgment

A judgment on a credit report is bad news. Potential lenders will look at this as a serious blemish. Any judgment means that you failed to pay an obligation--probably after repeated attempts to collect the debt--and thus the original lender charged-off that debt. A charge-off means a lender has given up hope on collecting and has taken the debt as a loss. Cleaning up judgments can be simple; but for old debt, it can be a struggle. Instructions Cleaning a Credit Report With a Default Judgment 1 Pull a copy of your credit report. The federal...

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5 Things You Need to Know About Your Credit Score

A number of factors affect credit scores --- even consumers who consider themselves financially responsible may inadvertently be lowering their scores. However, one of the biggest credit myths is that consumers only have three scores generated by three major credit-reporting companies. Consumer credit scores actually vary among creditors and lenders. Scoring Models You may have any number of credit scores, depending on how creditors and lenders handle their credit checks. Consumers often check their scores with three well-known credit-reporting...

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What Is a Secured Checking Account?

In addition to the financial difficulties of paying off overdue loans, bad credit can make it difficult for a borrower to develop any type of positive credit history. Once deemed a credit risk, many lenders and banks avoid transactions with customers with a history of bad credit. Secured financial services such as checking accounts -- sometimes called second-chance accounts -- allow customers with poor credit access to a checking account. Secured...

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What Happens When Creditors Put a Lien on Your Home?

If a creditor, or collection agency, cannot compel you to bring your account current through letters and telephone calls, and it believes that you have available assets to pay your debt, it may decide to sue you for the debt you owe. If you cannot prove that you have already paid the debt, the court will typically grant a legal judgment to the creditor. After issuing a judgment, the court places a lien on your real estate property, including your primary home. Public Record When a creditor places a judgment lien on your home, the lien is...

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The Right Credit Card to Debt Ratio

Your credit score is an important tool for your financial endeavors. A high credit score helps you obtain a mortgage or other loan at favorable interest rates. Credit card companies consider your credit score when deciding your interest rate and credit limit. One of the factors used to determine a credit score is your debt-to-credit ratio, which is the amount of debt you carry relative to your credit limit. The Magic Number According to MSN Money, you should aim to keep your debt levels to no more than 30 percent of your available credit...

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Can You Add Secured Personal Loans to Debt Relief Programs?

When you enter a debt relief program, your credit counselor will likely attempt to move all of your debts through the program. Even personal debts can be added to the debt relief program, but it is not always in your best interest to take this step. While debt relief can save your credit and reduce your total debt, it can also be very costly in the long run. Function The goal of a debt relief program is to move you out of debt quickly. This is accomplished by paying off your existing loans with new loans, typically issued by the debt relief...

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Financial Help to Clear Up Personal Credit Issues

Personal credit issues can negatively impact your finances. Poor payment habits and high debts lead to low credit scores. The consequences include loan rejections and higher interest rates. Fortunately, you can clear up common credit issues by learning better ways to manage your finances and credit. Managing Accounts Online Signing up for online account management programs to pay your creditors doesn't require exceptional computer skills. You can set up your monthly bills so that creditors automatically deduct the money from your personal...

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How to Apply Government Grants to Help You Consolidate Debt

If you have found yourself in a situation were you are having trouble paying your monthly credit card bills then you should look into the many options that are available to you so that you can consolidate your debt. A Government Grant can be a great way to get help with eliminating your debt so that you do not have to have the added stress of credit card bills.It is hard now for many people to keep up with the increasing price of food and gas so...

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How to Pay Off a Huge Amount of Credit Card Debt in Six Months?

A large amount of credit card debt can be overwhelming, especially if you are dealing with defaulted interest rates, late and over limit fees and finance charges larger than your minimum payment. Paying off credit card debt requires a solid budget plan and a bit of math to figure out the order in which to pay your credit cards off. Instructions 1 Write a list of your credit card accounts, credit card balances and interest rates for all of your cards. 2 Call the credit card company that issued you the lowest interest rate card. Ask if...

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Can Wages Be Garnished for Medical Bills?

Medical bills are considered unsecured debt, meaning that there is no collateral to cover them. As with debt incurred with credit cards or personal loans, an unsecured creditor must first sue and win a win a judgment before it can take action to collect the debt. However, once they obtain a judgment, medical bill creditors can garnish wages, but they must adhere to the regulations and procedures governing all other unsecured creditors. How Garnishment Works After a medical creditor sues and wins a judgment, your employer receives a notification...

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How to Identify Debt Settlement Fraud

Settling your debts for a fraction of what you owe sounds tempting, but companies that promise to help you do this are often fraudulent, consumer advocacy website Debt Settlement Fraud warns. Settlement company salespeople make impossible promises to lure you in and earn a commission, and some firms collect up-front fees from you, even though the law prohibits advance payment, then fail to negotiate settlements. You might be mislead about the consequences of debt settlement on your credit bureau reports. Avoid these issues by being alert for debt...

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How to Prove Unreported Income Through Bank Deposits

There is a variety of reasons for wanting to prove unreported income through bank deposits. A parent seeking an increase in child support payments may suspect that the other parent is not making truthful statements about income. Or, a divorce court could ask for complete information about a person's finances. Also, mortgage companies often require proof of money in bank accounts as part of the credit approval process. Instructions 1 Obtain records from your bank if you are voluntarily providing proof of income that is unreported yet documented...

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How to Get Out of Minor Debt

There are numerous money experts on TV and the Internet, each with their own prescriptions for debt reduction. There's the Snowball Plan, the Bucket Method, the Debt Diet and at least half a dozen other plans designed to separate you from even more of your money. Getting out of debt, especially minor debt, takes common sense, which is sometimes hard to find when you are constantly worrying about your bills. If you have minor debt, with just a little effort on your part, you can whittle that debt down to nothing. There are some free, easy, relatively...

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How to Get Debt Free Without Filing Bankruptcy

Filing for bankruptcy is a stressful process that may not leave you debt free. Your creditors have the right to contest being included in a bankruptcy filing. In addition, a bankruptcy can remain on your credit report for up to 10 years. As a derogatory entry, a bankruptcy will severely damage your credit score and impede your ability to do everything from finance a new home to procure a cell phone contract. There are ways to become debt free on your own without filing for bankruptcy, but you must be willing to make sacrifices to pay off the...

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Debt Sustainability Indicators

Lenders look at two key ratios when determining whether you can handle new debt with mortgage, auto or personal loans: your debt-to-income ratio and front-end ratio. Lenders also consider your three-digit credit score when determining whether you're likely to default on your new loan payments. Debt-to-Income Ratio Before lending you money, financial institutions want to make sure that you'll be able to make your loan payments on time. To determine this, they look at the amount of monthly debts with which you're burdened and the size of...

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How to Make Your Ex-Spouse Liable for His Debts

The separation of financial debts and assets is one of many difficult aspects involved in getting a divorce, particularly when a couple holds joint assets. Courts and creditors alike consider several factors before making a former spouse solely liable for financial debts, including the circumstances surrounding a divorce, individual state laws and who signed the credit contract. Although a divorce agreement can not legally change who is liable for...

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How to Charge-Off Less Than the Full Balance of a Credit Card

A partial charge-off is an action taken by a consumer loan lender. Full charge-offs occur when a lender deems an account "uncollectible" and either writes the account off as a loss or sells the account at a lesser value to a collection agency. Both situations do not relieve you of the debt. However, in some extraordinary cases, partial charge-offs are awarded on consumer loans. Instructions 1 Review all of your bills and your income. Do a...

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Laws on Multiple Garnishments in California

If you owe money to a creditor and are a resident of California, your income may be subject to garnishment. This means your paycheck or bank account, or both, could be garnished. If you owe more than one debtor, your income can be garnished by more than one garnishment order as long as the total amount garnished does not exceed the maximum allowable under federal and state laws. Garnishment Procedure Before anyone can garnish your bank account or your wages, they must first obtain a court order to do so in most cases. The only exception...

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Government Debt Relief Services

Government debt relief services include the federal bankruptcy process for individuals and businesses, as well as payment plans for delinquent federal and state tax liabilities. Not everyone qualifies for bankruptcy assistance or a tax payment plan and in some cases a debtor should hire an attorney for help. Tax Assistance Failure to pay your taxes can lead to liens against your assets and in extreme cases jail time, warns the Internal Revenue Service. Tax bills incurred less than three years ago must go through the taxation agency and...

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The Consolidation of Marital Debt in a Divorce

Debt consolidation refers to rolling multiple debts into one single account, ideally with a lower interest rate or monthly payment than the original debts taken collectively. If parties to a divorce had significant debt before, the problem can only grow in divorce, thanks to attorney fees, child support and the addition of a new set of living expenses. But debt consolidation is not always possible for every party. Marital Debt Division All...

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How to Raise Money to Get Out of Debt

Millions of Americans are in debt and are working over time just to pay the debt down. If you have a burning desire to get out of debt, then you can do it. Here's some tips on how to get out of debt. Instructions 1 Have a garage sell and sell stuff around the house. You can probably raise a few thousand just by holding a garage sell. This is the fastest way to pay off your debt and you can even get rid of the junk around your house. 2 ...

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How to Remove Evictions From Your Credit Report

Lease agreements are legally binding contracts between an individual and a property owner. When one party breaks the agreement, typically the renter, an eviction will occur. The property owner will often report this breach of contract to credit-reporting agencies, which will negatively impact your credit report and credit score. While the negative information cannot immediately be removed from your credit report, after seven years, the information can be removed. Often, the renter will have to request the information be withdrawn following this...

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Can a Payday Loan in Virginia Be Prosecuted As a Bad Check?

When a person takes out a payday loan, he is often required to cut the payday loan lender a postdated check. When the loan and any interest fees attached to it come due, the lender cashes the check. If the check bounces, the person who issued the check may be required to pay additional fees. However, in Virginia, he won't be criminally prosecuted for passing a bad check. Payday Loans Payday loan lenders charge high rates of interest for loans that must be paid back shortly after they are taken out. If a borrower fails to pay back the money,...

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What Is a Split Credit Report?

If you pull your credit report and notice that prominent accounts are missing from your file, you may have a split credit report. Should your credit file be split by a credit bureau, take steps to correct the information as soon as possible. Facts A split credit report occurs when a credit bureau has so much information on you that your credit file is split by the bureau's computer system. Another cause of a split credit file is if a creditor...

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