Does a Judgment Mean You Will Be Garnished?

Wage garnishment is one possible result after long periods of delinquency. Once the court awards your creditor a judgment, garnishment often occurs. Since the process is costly and time consuming to a creditor, it may be open to alternatives. However, if the proceedings have progressed to this stage, garnishment may be inevitable. Judgment Your creditor begins to assess late charges once you are 10 to 15 days late on your payment. After 30 days, the creditor reports the delinquency to the credit bureaus. After 90 to 120 days, the debt is...

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How to Receive Unemployment

If your hours have been cut to part time, or if you have already lost your job, you may qualify for unemployment benefits in your state. The specific amount of money that you need to have made in the past 18 months before unemployment varies by state, but each state has the same basic qualifications for getting unemployment compensation. The amount of weekly compensation you will receive also varies by state. Instructions 1 Lose your job or have your hours reduced to part-time. If you have either of these things happen and it is not your...

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Interest Rates Vs APR

Many people assume that the interest rate and APR (annual percentage rate) on a loan are the same thing. The truth is that the APR is the real cost of your debt, while the interest rate is more of an estimation. You should ask your creditors about the APR that you will be paying before closing or signing papers for a new debt account. Interest The interest on a debt is the cost of doing business with a creditor or lender. It is pretty much synonymous with "profit" for the creditor. Misconceptions APR is not the same thing as the...

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How Do I Take Someone to Court to Collect a Debt?

Loaning money to an individual is always risky. No matter how careful you are about who you loan to or how sincere the individual may be about wanting to pay you back, circumstances beyond his control may result in the debt going unpaid. Should this happen to you, you have the right to legal recourse. By taking the debtor to court, you can attempt to obtain a court judgment that forces him to pay you what he owes. Instructions 1 Verify that...

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How to Erase Dispute Items on a Credit Report

Accurate credit reports are incredibly important because credit reports are used in so many financial matters. If youre thinking of buying a house, applying for certain jobs or making a big financial decision, check your report for errors. Dispute errors so that your report doesnt hurt your credit history. Under the Fair Credit Reporting Act, you have a right to an accurate report. Instructions 1 Identify errors on copies of your credit reports....

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How to Stop Bill Collectors from Calling My Place of Work

Creditors, such as the bank you have borrowed money from or the department store where you purchased a plasma TV on credit, may sell your account to a collection agency if they decide that you are unlikely to pay your bills without legal action. Once the sale is complete, the collection agency assumes the legal right to receive all debt payments, as well as late fees and, depending on the circumstances, legal costs. Collection agencies have a variety...

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How to Use Balance Transfers to Get Out of Debt

Being in debt can be quite overwhelming. In fact, it can sometimes feel as if you will never be out of debt again. While there are many strategies that can be used to help you get out of debt, one of the best involves taking advantage of balance transfers and using special rates to your advantage. With this step-by-step guide, you will learn how to use balance transfers to help you get out of debt. Instructions 1 Add up all of your current credit card debt. Make sure to include all of your credit cards, including those that are from...

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What Debts to Pay Off First

Bills arrive in your mailbox every month, all demanding payment. Each one is important, and you know creditors will call if you don't pay them on time. High-priority debts should always be paid before everything else. After that, you must tackle all your other debts. How you choose to do this depends on whether you prefer to pay less interest over time, or to have more consistent rewards over the course of repayment. High-priority Debts Most people have certain crucial debts that must be paid prior to other debts. Crucial debts include...

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How Much Does Your Available Balance Affect Credit Scores?

The FICO score is shrouded in mystery. Nobody other than the people at The Fair Isaac Corporation, the inventors of the FICO score, knows how to calculate this three-digit number that is based on information in a person's credit report. People routinely try to arrange their lives around the known factors that affect their credit scores, one of which is how much available credit a person has. Effects Of Credit Utilization Even though the formula for the FICO score is not published, The Fair Isaac Corporation does allow people to know the...

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Credit Card Remediation Programs

Credit card remediation, or debt relief programs, enable Americans with serious financial troubles to get out of debt faster, according to the Federal Trade Commission. But before entering any private credit card remediation program or enrolling for federal bankruptcy protection, the consumer should thoroughly study his options and also accept that debt relief may not necessarily help his credit rating. Self-Help If you have regular income and can implement better financial habits, you may be able to get yourself out of serious credit card...

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How Is the Interest Rate on a Line of Credit Determined?

A line of credit is the amount of money that a bank or other lender is willing to let a person or business have at any one time. A line of credit is generally backed by a form of a collateral, such as the equity on a property. A holder of the line of credit is not obligated to borrow the money, but can draw funds as he needs to. Features Unlike home equity loans, which are issued at fixed interest rates, home equity lines of credit have variable rates of interest. The interest rate that a borrower will pay on any loans drawn on the line...

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What Is National Debt Relief?

The commercials for national debt relief make some very appealing claims. "President Obama recently signed legislation that will extend relief to main street," one advertisement states with authority. "If you are a consumer struggling with $10,000 worth of credit card debt, you may qualify for the national debt relief program. We may be able to reduce your debt by up to 50 percent. Call us now for a free consultation." For many consumers struggling...

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Creditors Calling at Work

Getting calls from creditors or collection agencies at work can be irritating, not to mention embarrassing. But it can be difficult, if not impossible, to get them to stop. Luckily, all consumers are protected by the Fair Debt Collection Practices Act, which offers guidelines for what creditors and collectors can and cannot do legally. This act can help you prevent creditors from calling your workplace. Legal Considerations The federal Fair Debt Collection Practices Act states that creditors or collection agencies have the right to call...

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How to Get Rid of Student Debt

Graduating college with tens of thousands of dollars of debt can be a burden. College is expensive, and unfortunately, most students need financial aid to complete their education. As a result, many begin their adult years with debt. Although student loan lenders can be flexible and offer low monthly payments for 15 years, you may prefer to get rid of your debt sooner. Fortunately, there are ways to accomplish this. Instructions 1 Look into...

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Can You Garnish Someone's Income Tax for Restitution?

When a person commits a crime, he will often be ordered to make a payment to one or more person's injured by his crimes. This compensation is known as restitution. This payment of restitution constitutes a legal obligation. If a person fails to make good on it, then the state has -- in most cases -- the right to seek garnishment of the offender's wages. Restitution Restitution payments are issued at the time that an offender is incarcerated. However, the payments are generally not made until the offender has been released from jail or prison....

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How to Show Proof of No Work to Get Financial Help

Help from public and private organizations is often available for people suffering from unemployment. Direct financial assistance ranges from grants to donations, depending on the organization. Indirect financial assistance is also available for those who qualify. Examples include free or subsidized food programs, temporary or government-subsidized housing and medical care at certain health clinics. Virtually all of the programs require proof of unemployment, and possibly other information about assets and debts and the applicant's current living...

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Debt Help for Low-Income Families

For a variety of reasons, many families find themselves facing financial difficulties at some point. These circumstances can also result in the accumulation of debt. Fortunately, when paying rent or mortgage payments, and buying food, clothes, and other essential items becomes difficult, there are many different resources available for low-income families seeking debt relief and help. State Programs Every state has a variety of resources and programs designed to help low-income families. These programs range from temporary assistance with...

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Credit Counseling & Repair

You hurt your credit if financial problems cause you to run up big loan and credit card balances and pay your bills late, but credit counseling and repair may help you get back on track and salvage your credit score. First, find a legitimate counseling firm and choose your best option with the counselor's help. Then focus on credit repair to improve your credit reports as much as possible while you pay down your debt. Definition Credit counseling refers to the process of working with a professional agency when you cannot handle your debt...

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How to Reduce Credit Card Payments Without Damaging Credit

When your minimum credit card payments are too high for you, do not just stop making the payments. This will lower your credit score when the credit card company reports the late payments. Enrolling in a debt management program or debt settlement program can also lower your credit score because the company might mismanage your debts and charges you fees that slow down your progress toward reducing your balances. Instead, try a few different ways to lower your monthly payment so you can keep up with it and maintain your credit history. Instructions...

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How to Legally Clean Your Credit

The economic conditions of 2010 have helped to fuel demand for credit cleaning services. Some people experience late payments, repossessions, foreclosures and bankruptcies. These incidents can lower your credit score considerably. Good credit is important for borrowing money, applying for a job and being offered affordable insurance rates. Over time, you can legally clean up errors on your credit report and take actions to improve your credit score. Instructions 1 Get a copy of your current credit report from all three credit reporting agencies:...

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Non Profit Debt Reduction

Non-profit financial counseling services can help you reduce debt, set up a personal budget and get smarter about managing credit and debt on a day-to-day basis. Some organizations also help with debt reduction by negotiating with creditors for you and provide additional financial management services based on your personal needs. Keep in mind that just because the debt reduction service is through a non-profit organization, that does not mean the...

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Why Pay off Collection Accounts on Your Credit Report?

If you get behind on your payments, some of your accounts may be turned over to a collections agency. At that point, you may be unsure of whether you should pay off this debt or leave it alone. While you could potentially avoid paying it, it would most likely be to your advantage to pay it off so that you can avoid future problems. Avoid Lawsuit If you refuse to pay off your credit accounts once they are turned over to a collections agency, you might find yourself on the wrong end of a lawsuit. If the amount is very small, the collections...

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What to Do If You Received a Letter From a Collection Agency?

It can be stressful to receive a letter from a collection agency, but it does not mean irreparable damage to your credit rating. Collection letters often are not a surprise to those receiving them. It can be a matter of wanting to pay, but debt responsibilities exceed your ability to keep up with payments. A letter from a collection agency should prompt you to re-evaluate finances and prepare a new personal budget. Reassess Your Finances You need to start by examining your budget and finding areas where you can cut corners and find alternative...

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How to Avoid Foreclosure in Florida

Foreclosure--when a mortgage lender takes back a home--occurs after a Florida homeowner stops making mortgage payments; usually after three to six months of payments have not been received. The lender can then file a foreclosure lawsuit in the Florida courts, asking for the house to be returned to the lender to sell, usually at auction. In addition to losing the home, a foreclosure can ruin credit ratings, limiting the purchase of a future home....

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How Long Can a Charge-Off Affect Your Credit?

Creditors and lenders extend loans and lines of credit. In exchange, they expect account holders to make timely payments each month to repay funds. But occasionally, account holders fall behind and stop paying their lenders and creditors. After several months of nonpayment, creditors and lenders may charge-off or write-off the debt. Definition of Charge-Off Original creditors and lenders make several collection attempts before charging-off a debt. This occurs after a creditor concludes that a debtor has no intentions of repaying a debt--usually...

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Medical Debt in Collections

Most debts, including medical bills, can go into collections if you refuse to pay them. The original creditor might hire a collection agency or write off the bill as a bad debt, then sell it to a third-party collection agency to recoup some of the lost money. Doctor, lab and hospital bills hurt your credit rating if you neglect them long enough to get them sent to a debt collector. Credit Reports Your credit reports show a lot of your financial information, but medical debts are not typically reported to the Equifax, Experian and TransUnion...

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How to Monitor Credit Cards

There are several reasons why consumers should regularly monitor their credit cards: interest rates, identity theft and financial responsibility. Many consumers sign up for credit cards at an introductory rate. However, after your zero percent rate expires, you could unknowingly be subject to a rate hike of 20 percent or more. Regular monitoring may allow you to cancel the card before a rate hike occurs and pay off the balance at the introductory...

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Is It Illegal for a Collection Agency to Do a Pay for Delete?

Collection agency reports can have a devastating effect on credit scores. The Fair Credit Reporting Act notes that these reports can legally remain a part of a consumer's credit record for seven years. Individuals wishing to remove collection accounts early sometimes offer to pay off the debt if the collection agency will voluntarily remove its notation from their credit files. This process is known as a "pay for delete." Each collection agency has its own guidelines regarding the process. Legal Issues Any company that can make reports...

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What Happens When Credit Cards Go to Collection?

The Basics Cash flow has always been a problem that producers, merchants and consumers resolve by trusting the other party to honor a debt. Where the charge plates of an earlier era allowed a consumer to use credit to buy at a specific retailer or producer with a promise to pay within a certain period of time, "revolving-credit," introduced by general-use "bank" cards, allowed consumers to buy anywhere and make partial payments over time. The...

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How to Delete Derogatory Accounts on Credit Report

If you have any derogatory debt on your credit report, it will have a significant impact on your credit score. Your first thought may be to pay it off as soon as possible. However, this will not erase it from your report. The only way it will be erased is if the lender does this on your behalf. Instructions 1 Contact the lender to whom you owe the money. This may be a collection agency or the original lender. 2 Tell the lender that you will pay off the debt in full if it promises to remove the derogatory account from your credit report....

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Repayment Assistance Programs for Law Schools

The American Bar Association, or ABA, states that the average law school graduate incurs a debt of $80,000. Coupled with undergraduate loans, the total debt for new lawyers can run as high as $120,000. Loan Repayment Assistance Programs, or LRAPs, are a way to relieve law school debt. Participants in LRAPs can have loans forgiven, interest rates lowered or payments postponed. LRAPs are administered by states, law schools and employers. Law School...

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Is a Debt Settlement for Credit Cards a Good Thing or Not?

Credit card debt burdens can weigh down a person's financial stability with excessive interest rates, enormous fees and the ever-present threat of having to file for bankruptcy. A large number of people find themselves buried under too much credit card debt at some point in their lives, but there are a number of things consumers can do to climb out of debt. Debt settlement is a popular option for dealing with credit card debt, but this technique...

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How to Check to See If a Collection Agency Can Collect in Your State

A common misconception among consumers is that all states require collection agencies to obtain a state license in order to conduct collection activity in that state. While no federal regulations exist requiring debt collectors to obtain a license in each debtor's state of residence, some states enforce specific rules regarding collection activity. Minnesota, for example, requires collection agencies to register with the state, pay a licensing fee and pass a screening process in order to collect from Minnesota residents. If a collection agency...

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Steps for Settling Debt

If you are struggling with high levels of credit card and other high-interest debt, it can be all but impossible to get out from under that burden without renegotiating the terms of your repayment agreement. Fortunately, it is often possible to negotiate more favorable terms with your creditors, since it is in the best interest of those creditors to keep you out of the bankruptcy courts. Instructions 1 Make a list of all your debts, including...

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Can I Settle a Wage Garnishment?

If you fail to repay a debt you owe, and you do not attempt to work with the creditor, the creditor may choose to sue you in civil court to obtain a judgment against you for your debt. Once a creditor has obtained a judgment, most states permit the creditor to execute a wage garnishment order, which forces your employer to withhold a portion of your wages for repayment of the judgment debt. However, in certain cases, you may be able to settle with the creditor to end wage garnishment. Definition A settlement is an agreement between you...

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What Is the Statue of Limitations on Credit Card Debt in North Carolina?

If you live in North Carolina and are worried about old credit card debt, you should be aware that it may be uncollectible under statute of limitations laws. These laws allow you to ask that a lawsuit filed against you by a credit card company be dismissed because of the age of the debt. You should also be aware, however, that just because a debt is outside the statute of limitations, a creditor or bill collector can still attempt to get you to pay...

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How to Use Credit Cards for Security Deposits

Security deposits are used to provide a landlord some financial protection and security in case you terminate the lease early, fail to pay your rent, or cause damage to the property. A security deposit is usually equal to one month's rent but can be more or less in certain cases. A landlord establishes the required deposit and decides on other factors, such as when the deposit is due and how he will accept the payment. Instructions 1 Ask the...

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What Is the Purpose of a Line of Credit?

A line of credit is a ready source of funds from a bank or lending institution. It can be used for a variety of purposes, including unplanned expenses, family vacations, auto repairs and college tuition. A Pre-Approved Loan The line of credit costs nothing until withdrawals are made. After that, it can be repaid in monthly installments or all at once. Another Credit Source Some borrowers like the line of credit because it allows them to use their credit cards for day-to-day purchases, while reserving the line of credit for big-ticket...

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