Debt Management Guidelines

Debt limits what you can do with your finances. Instead of using money to build your wealth you are paying interest payments on loans to someone else. Debt payments also make it difficult to start your own business or to save money for a down payment on a home or a dream vacation. Learning to manage your debt and pay it off will free up your income for the things you want to spend it on. Assess Where You Are It is important to know exactly...

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Can a Debt Collector Levy?

When you enter into a debt agreement, your creditor has the right to sue you for the amount you owe if you do not pay. Creditors sometimes use a levy to collect the funds. This involves seizing property owned by the debtor. Suing for a Judgment Creditors cannot just take your property without going through the proper channels. The first part of the process is filing a lawsuit against you in civil court. At that point, the creditor will appear in court and show that the debt is valid. If you cannot prove otherwise, then the court may give...

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Should You Go to an Arbitration Hearing Over Bad Debt Without an Attorney?

If your bills have gotten the best of you but bankruptcy seems too drastic, debt arbitration may be the answer. Arbitration allows you to negotiate a lower payoff amount for your debt with fewer credit hassles than bankruptcy. However, while debt arbitration might save you from the consequences of bankruptcy, it is still a legal proceeding and you need to go in prepared. Having a lawyer by your side can make a difference in the kind of settlement...

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Can I Claim Child Support Arrears From Social Security?

If you owe back child support, there's a good chance your case has been referred to the Office of Child Support Enforcement (OCSE). This office was established to ensure that families receive the child support to which they are entitled. In 2007, OCSE's largest group of clients were former welfare recipients. Federal involvement streamlines collection efforts across state lines and enables states to seize federal benefits, with the federal government acting as an agent. TOP Program The TOP program, or Treasury Offset Program, has the authority...

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Different Stages of Collection Letters

The federal Fair Debt Collection Practices Act (FDCPA) was adopted in 1977 to protect both consumer debtors and creditors in the debt-collection process. In a 2003 report, the State of California Department of Consumer Affairs writes the FDCPA requires that debt collectors exhibit "honest, fair and reasonable" debt-collection practices. The process by which debt collectors attempt to collect a debt, both written and verbal, are addressed by this...

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How to Stop Phone Calls From Credit Card Companies

If your phone is ringing at all times of the day because of overdue credit card bills, it's time to make the calls stop. Unlike a debt collector, a credit card company is the primary creditor; as such, it's under no obligation to follow any laws that govern debt collection. However, there are ways to stop a credit card company from ringing constantly. Some of these methods may not be convenient, but they'll bring the harassing calls to an end. ...

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Consumer Credit and Debt Help

If you feel like your credit situation is like quicksand and you're sinking further and further into debt, you must create a plan of action to dig yourself back to financial freedom. You must first come face-to-face with the reality of your credit situation, and then formulate a strategy of paying off your credit cards by allocating more money toward your debt each month. Once you figure out your own methods of paying down your debt, you must commit...

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How Can a Mortgage Company Take Money From a Personal Bank Account?

When a home buyer takes out a mortgage from a lender, he agrees to pay back the money according to the terms of the mortgage contract. However, many mortgages end in foreclosure -- the seizure of the property after the borrower has failed to pay back the home loan as required. In some cases, a lender may attempt to withdraw money from the borrower's bank account but only after the property has been foreclosed on. Foreclosure A home loan is considered a secured loan, meaning that loan is secured by collateral. In the event that a secured...

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How to Settle a Disputed Invoice

As a customer, you can dispute an invoice received from a company or creditor. Companies and creditors can make mistakes, and they may inadvertently charge you for items not purchased. Rather than ignore wrong information on an invoice and risk lawsuits and additional charges, talk with creditors to settle disputes. Instructions 1 Write a letter to the company disputing an amount. Within days of receiving an incorrect invoice, send a written request to the company or creditor asking them to validate or verify the amount owed. This requires...

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The Percentage of Debt to Income

Debt-to-income ratios give lenders a picture of how much additional credit or debt you can manage. Not every creditor measures debt-to-income the same way. The amount of debt you can have relative to your income is based on the type of loan you pursue. In all cases, the lower your debt, the better your chances of approval for new credit accounts or loans. Mortgage Loans Debt-to-income ratio is a major determinant when applying for a mortgage loan. Mortgage lenders assess your debt to income ratio with and without consumer debt. The amount...

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Florida State Laws on Cash Flow Notes

A cash flow note is a contract between two parties memorializing a loan agreement. Generally, the terms of the cash flow note include payment schedules, interest rates, final payment dates, and occasionally various types of penalties or fees. The common law and Uniform Commercial Code of Florida are the two bodies of law that regulate the bulk of cash flow note legal issues in the State of Florida. Usury Usury is a legal term used to describe...

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Can You Get a Judgment If You Are Sending the Company Money?

A judgment is entered against you when you owe creditors and ignore their requests for payment on past-due balances. There are many ideas on how to avoid judgments. Some believe paying at least a dollar on past-due balances keep creditors from entering a judgment against you. Communicate with your creditors. Avoid judgments by generating a payment plan that works within your budget. Origin Judgments are issued under a variety of circumstances....

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How to Find Out What Debts You Owe

Every American has a personal record of the debts they owe. If you want to find out which specific debts you owe, you can easily pull your own credit report for free and check it out. Credit reports detail all of your revolving credit, loan history, payment history and outstanding debt. This can be both good and bad. Having good credit with relatively little debt will allow you to open bank accounts, take out loans, apply for a home mortgage, lease...

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Signs That You May Need Professional Credit Counseling

Feeling overwhelmed by debt and monthly bills is not an unfamiliar experience to the average American. Fortunately, there are places you can get professional credit counseling to help you get your finances under control and become debt-free. However, many people do not know the signs that indicate that they would benefit from professional credit counseling. Minimum Payments If you are only making the minimum payments on your debt, either because that's all you can afford or you are spending the rest of your disposable income on non-essentials,...

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The Best Way to Clean Credit Report

Cleaning your credit report requires waiting for a long time or some spare cash to pay off any creditors that you have late or delinquent accounts with. Paying off your debts in full will also restore your credit rating, but settlements can get you the same result for a lower cost. Monitor your credit report as well, so you can dispute any errors that may come up and be made aware of any accounts that may be late. Paying Obligations Paying your debts in full is one of the best methods to clean up your credit report quickly, but it is the...

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How to Calculate Yield Maintenance

Yield maintenance is an additional fee that some lenders charge to borrowers if they choose to pay off their loan early. Lenders charge this fee in order to ensure that they still make the expected revenue from the loan regardless of when it is paid back. Knowing how to calculate yield maintenance will allow you to make more informed decisions regarding major financial decisions such as whether to refinance your mortgage. Instructions 1 Gather...

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Credit Reports & Foreclosures

The setbacks of foreclosure are great. Once you lose your home, an avalanche of financial and legal woes appear. Foreclosure is a long-term stain on your credit report and your score can take years to rebuild after the process ends. Finding help in advance of the foreclosure process can help mitigate your loss. Help Seek help from a Housing and Urban Development-certified foreclosure counselor as soon as you receive a foreclosure notice. Counselors can help you determine solutions for keeping your home or prepare for foreclosure if there...

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What Are the Advantages of a Debt Management Plan?

Debt management plans (DMPs), also called debt repayment programs, are programs enacted by consumer credit counseling services on your behalf. When you enroll in one, a counselor will look at your current financial situation, including all income, expenses and debts owed. They will then help you draw up a budget to get you back on track financially, without the need to file for bankruptcy -- and that's just one benefit. Fiscal Counselors for services that offer DMPs negotiate with your creditors on your behalf to lower your interest rates....

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How to Resolve Financial Problems

Financial problems plague just about everyone at one point or another. From attempting to properly manage credit to figuring out how to pare down debt, resolving financial issues can be more than challenging. For some, it may seem like a completely insurmountable goal. However, there are ways to resolve financial issues, many of which start with proper budgeting and discipline. Instructions 1 Write down everything going out and coming in. This is the only way that you will have a clear picture of where your finances are and where you are...

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Methods to Destroy Credit Cards

When you get a new credit card in the mail you will need to destroy your old one. According to CreditCards.com, if you do not properly destroy your old credit card, you could become a victim of identity theft. There are several effective methods to destroy credit cards. Scissors A reliable pair of scissors can do the job of destroying your old card for you, according to CreditCards.com. When you cut your credit card, be sure to cut your signature...

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Savings Accounts Vs. Paying Off Debt

Many people face two distinct but competing goals. If you are saddled with high-interest rate debt, you want to get out from under that debt as soon as possible. At the same time, you want to start building savings and a cushion you can rely on in an emergency. In many cases it is smart to use a combination strategy that allows you to meet both of these vital financial goals. Interest Rates When deciding whether it is better to focus on paying...

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Bankruptcy and Credit Scores

Your credit score is a quantitative measure of your financial history. Calculated by three major institutions who use slightly different techniques and scales, these scores are the single most important factor determining how much you can borrow and what interest rate you will pay. A bankruptcy is the most damaging event for your credit and will significantly drag down your score. It will also be reported for a full decade on your financial report...

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Does Florida Let Creditors Put a Lien on Your Home?

Florida wont allow a creditor to place a judgment lien against your home, but not all creditors know that. Some that do might try anyway. Although theres no law that prevents them from putting a lien against your property, both Article VII, Section 6 and Article X, Section 4(a) of the Florida Constitution let you easily remove it if a creditor is successful. Qualifying Factor A catch exists in Floridas laws protecting your home from creditors....

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How to Get a Brinks Fire Safe Key

Brinks has fire-proof safes with dual lock security systems, requiring both a combination and a key to open them. Though Brinks no longer manufactures safes, First Alert, a home security company, reissues keys and combinations for Brinks safes for a fee. The replacement fees are set in the instruction manual that came with the safe. First Alert will respond to certified requests for new keys from the safe owner that include a check or money order....

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Disadvantages of Debt Management Plans

As of 2010, 43 percent of Americans spend more money than they earn annually, according to MSN. In addition, nearly every household in America holds more than $8,000 in credit card debt alone. The average debt per family in America is more than $18,000, excluding mortgages and living expenses. With increasing debt, the number of people seeking the aid of credit counseling agencies and debt management plans has increased. Debt management plans do...

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Will Paying Off Debt Improve My Credit Score?

Paying off current debt and keeping your account balances down is a great strategy for improving your credit. On the other hand, settling old debts for less than what you owe can sometimes hurt your credit score. Current Debt Your account balances determine 30 percent of your FICO score, a credit scoring system used by many lenders in the United States. Lowering your current account balances by paying them off is a good credit score boosting...

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Refinance Options for Bad Credit

Using assets to restructure debt is the most viable way to improve a poor credit rating for homeowners. Mortgage loans can be refinanced at lower interest rates to consolidate debts and pay off bills by borrowing against the equity in a home. This allows borrowers to use a lower-rate loan to pay off high-interest debt. Credit Scores Poor credit score can mean unfavorable loan terms Credit scores are ranked by FICO to help lenders assess...

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Pros & Cons of Concentrated Debt

Concentrated debt might help you climb out of debt, but it can also hurt your credit score in the process. How much benefit you receive from concentrating debt depends on the specific method of debt consolidation you choose. A debt consolidation loan or debt management plan are the most popular forms of debt concentration available. One Monthly Payment Concentrating your debt in once place through a consolidation loan or debt management plan allows you to make payments on all your debts by making one monthly payment. This can make your...

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Can a Credit Card Company Debt Become a Mortgage?

If you don't pay your credit card debt and your credit card company obtains a judgment against you, your credit card debt can take on some characteristics of a mortgage. This is because your creditor can acquire a lien on your house and has the power to conduct a foreclosure. Judgment If your credit card account is seriously delinquent, for example if you have not made a payment in six months, your lender may decide to go to court and obtain...

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How Long Do Collections Stay on Credit Reports?

The Fair Credit Reporting Act sets legal guidelines for how long a collection account can remain on your credit report. After the reporting period has expired, the collection account will be removed from your credit file by the credit bureau that is reporting the debt. Time Frame A collection account can only remain on a credit report for seven years from the date the debt first went 180 days delinquent. After this time period, the original creditor's account and any subsequent collection accounts that have resulted from the debt going...

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Can Not Paying Business Credit Cards Affect Personal Credit?

Business credit can open or close doors to financial resources. Creditors use your payment history to assess whether you are a safe or risky borrower. Paying your business credit card late negatively impacts your business credit score. This may also have an impact on your personal credit score depending on how your business is structured. Application When you apply for a business credit card, you have the option of entering your Social Security number if your business does not have substantial credit history. New business owners are usually...

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How to Get a Co-signer Released From a Sallie Mae Student Loan

Many private student loan companies, including Sallie Mae, require students to have co-signers to obtain loans. This is because students do not have the credit history to support the risk the lender would take in issuing the loan. To solve this, the co-signer agrees to repay the loan if the student fails to pay. A co-signer release removes the student loan from the co-signer's credit report and removes all liability the co-signer had for the loan. Sallie Mae has provisions to allow the co-signer to be released from the obligation as soon as one...

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How to Find a Local Collection Agency

For a business, customers with unpaid debts can be a real problem. When a business's unpaid accounts receivable mount, that business is not able to pay its expenses. That, in turn, can cause the business to suffer or even fail. When this happens, it becomes necessary to hire a third-party collection agency to collect the unpaid debts. It is easy to find a reputable local collection agency that will soon have your business back on track. Instructions 1 Look in a local phone book to see if any collection agencies are listed. Local collection...

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What Do the Scores on a Credit Card Represent?

Credit scores are an indicator of your level of credit risk. Lenders, landlords and even some employers use your credit score as a predictor of whether you'll be able to handle new responsibilities. Therefore, it's important to know what elements make up your score. Payments Whether you make on-time payments makes up 35 percent of your credit score, according to Smart Money. Because this part of your score accounts for such a large chunk,...

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How Does Credit Work When Moving to Canada From the U.S.?

Credit management is as important in Canada as it is in the United States. Most large U.S. banks also have branch offices in Canada. All three major credit bureaus--TransUnion, Equifax and Experian--operate in Canada. If a consumer moves from the U.S. to Canada, his credit history will absolutely follow him. Most new citizens in Canada will need to reapply for loans and mortgages, but these loans will be based on their United States credit histories....

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How to Cancel a READYdebit Card

A READYdebit card is a prepaid Visa card issued by Ready Financial designed for rebuilding damaged credit. You can receive a READYdebit card by completing an online application at readydebit.com. Use the READYdebit card to complete any transaction that accepts Visa debit cards. The Ready card is nontransferable and allows you to cancel at any time without prior notice. Canceling your card is not a difficult task. Instructions 1 Locate the...

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What Happens if I Make a Deal With a Collection Agency?

Collection agencies use a variety of methods to attempt to collect past-due debts. Initially, collection agencies usually attempt to collect the debt in full but in some situations, collection agencies strike deals with debtors in which the debtor can settle the debt for a fraction of the outstanding balance. If you make such a deal with a collection agency, it usually signals the end of your dealings with that firm. Collection Agencies Collection agencies often buy bad debts from lenders. The collection agency pays a nominal fee to the...

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How to Convert a Secured Credit Card to Unsecured

Secured credit card issuers generally require cardholders to make a cash deposit to a savings account that serves as collateral if cardholders don't pay off the charges on their cards. The amount of the deposit usually establishes a cardholder's credit limit as well. Secured credit card users rarely have say in converting their secured accounts to unsecured accounts. The card issuers make such decisions based on the cardholder's account activity. Instructions 1 Pay your secured card bill on time each month. This may result in your card issuer...

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