What Is Debt Refinancing?

When a person takes out a loan, the loan usually is issued with specific terms, such as the rate of interest the person must pay on the principal and when the loan must be repaid. Similarly, a bill may also carry interest or have a specific repayment schedule. If the debtor chooses to replace this debt with another debt -- one with different terms -- this process is known as refinancing. Refinancing A debt is considered to be refinanced when the debtor's current debt is paid off and the debtor takes on a new, replacement debt. Often, a...

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Financial Consolidation Methods

If your monthly budget is being pushed to the limit due to high-interest credit card accounts, then you will want to consider consolidating that debt and paying it off. There are several financial consolidation methods that consumers can use themselves. The advantages to consolidating your own debt is that you save money on the service charges paid to debt consolidation firms, and you gain firsthand experience in managing your money. Borrow From...

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What Happens to Your Debt If You Leave the Country?

While you shouldn't move out of the country because you're in debt, there are times when you can't help it. For example, if your job takes you out of the country and you have built up some debt, the situation is unavoidable. What you do about it is up to you, but you have several options. Debt Repayment You have the option of continuing to pay the debt, of course. If you decide that you want to honor your agreement with the lenders, you simply...

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South Carolina Credit Card Debt Collection Law

If you do not pay your credit card bills on time, the lender has the legal right to turn the debt over to a collection agency. But several South Carolina state laws, as well as the federal Fair Debt Collection Practices Act, protect your rights even if you owe a credit card company many thousands of dollars. Wage Garnishments Credit card companies, their collection agencies and other consumer-oriented lenders cannot legally garnish your wages if you live in South Carolina. State code 37-5-104 bars this practice. Thus, if a collector threatens...

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How to Collect Debt From the Deceased

Debt does not die with the debtor, and you can attempt to collect what is owed to you after someone is deceased. This is done by filing your claim with the probate court or executor overseeing the deceased estate. The executor of the estate must pay all debts owed by the deceased before the beneficiaries can receive a penny. This means there is a good chance that you will receive your money, unless the estate was deeply in debt with few assets. Instructions 1 Request a statement of claim from the probate court overseeing the deceased's estate....

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Is Debt Ever Wiped From Your Record?

Getting accurate information removed from your credit report is no easy feat. Over time, however, information about most debts will drop off your credit record, making it easier for you to get credit at decent interest rates. Debt and Credit Reporting Unpaid debts and late payments can show up on your credit report and stay there for up to seven years, though if you request a loan over $150,000 or apply for a job that makes over $75,000 per year, credit bureaus can continue reporting negative information indefinitely. There are two ways...

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What Happens to Your Home Equity Line of Credit If You File Bankruptcy

Your bank will close your home equity line of credit to further charges or withdrawals if you file for bankruptcy. You must disclose all debts and credit lines during the bankruptcy application, and the official notice of your bankruptcy filing will be sent to all of your creditors, including the lender on the home equity line. During bankruptcy you may have options for eliminating any balance on your home equity line while keeping your home and first mortgage. Protecting The Bank A lender aware that you are filing for bankruptcy will move...

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What Happens to My Car Insurance After Getting Sued?

Sometimes, after a person has been involved in a car accident, particularly one in which he was at fault, he will be the object of a lawsuit by people who have been injured or had their property damaged. While the person's insurance should cover a person up to a certain amount of damages, the person will have to pay out of pocket for additional damages and will likely see a hike in premiums. Car Insurance Basic liability auto insurance provides an individual with financial compensation in the event they are liable for damages caused through...

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How Do Collection Agencies Work?

How They Get Your Account Collection agencies can be found in two different forms: in-house collection and third-party collection. The in-house collection agencies are most often the billing department for a credit agent or large firm which offered time payments. These are used to collect money while keeping the collection costs low and within the company. Most often this will be the first collection attempt you will come across. Third-party, or outside, agencies are those which are hired by a firm to collect a past due amount. These...

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Financial Debt Recovery

Recovering after falling into a large amount of debt can be difficult for anyone. Debt is a major problem that people have to deal with every day. Even though debt can hamper your financial situation, it doesn't have to take control of your life. There are steps that you can take to recover from debt and eliminate it. Payments When you're trying to recover from a large amount of debt, it's important to always make your monthly payments on time. Even if you can only afford to make the minimum payments on your credit cards and other accounts,...

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Percentage of Debt That You Have in Relation to Your Income

You might hear news reports or read articles that talk about how consumers carry too much debt. But how much is too much? What is it measured against to determine if the level is acceptable or not? The most common measurement is called a debt-to-income ratio. Financial lenders use two variations of this ratio to determine whether your debt as a percentage of your income is at an unacceptable level. The Percentage The generally accepted percentage of debt to income is 36, meaning that your monthly debt payments should make up not more than...

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Debt Consolidation Vs. Credit Counseling

Debt consolidation and credit counseling are just two of many options availabe for those who need help managing their debt. If you're seeking a debt solution, consider the pros and cons of each. Definition Debt consolidation refers to combining debts into a single monthly payment to save money on interest and fees. Credit counseling refers to a group of services involving money and debt management. How It Works -- Debt Consolidation ...

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Can a Lien Be Placed on Your Property for Unpaid Medical Bills?

Medical debt is one of the primary financial issues that plague many families today. When you get into medical debt, the medical provider can take a number of steps to try to get the money back from you. The creditor could file a lien on your property, but not without going through the proper channels first. Lien on Property When a medical provider places a lien on your property, it does not mean that it owns the property or that you have to move out. A lien on your property is simply a claim to that property by a creditor. When you sell...

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I Need Help Refinancing My Home With Bad Credit

A low credit score and bad credit can make it difficult for you to get approval on a loan, even when it comes to refinancing your home. Refinancing can help lower your interest and monthly payments, which could help you keep your home during difficult financial times. Though many lenders hesitate when it comes to refinancing a mortgage loan when you have bad credit, you do have a number of options available to you. Instructions 1 Send for a free copy of your credit report from one of the three approved credit reporting companies: Experian,...

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What Is the Statute of Limitations on Back Child Support?

Child support doesn't always stop when your child reaches the age of majority, a legal term meaning the threshold of adulthood. If you got behind on your payments at any point during the years you were paying, the arrears -- or past due payments -- don't go away when your obligation to pay child support ends. Some states will allow your child's other parent to try to collect back child support indefinitely. The statute of limitation for your child's...

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Credit Cards & Property Rights

Personal property is not collateral for credit card debt. Credit card debt is handled in married couples based on whether or not they live in a community property state. Credit card debt must be paid before family members can inherit remaining property left by the deceased. Property Rights in Marriage "For richer or poorer" includes credit card debt. In community property states, credit card debt acquired during marriage belongs equally...

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How Far Back Does the Bank Search Your Credit Report for a Loan Application?

When you ask your bank for a loan, it pulls your credit report as part of its decision-making process. While federal law restricts the length of time that negative information can appear on your credit report, there are exceptions to these rules, especially if you apply for a large loan. Credit Reporting Your credit reports are your personal history of applying for and using credit. Creditors use your credit report to make decisions about offering you credit or lending you money. While the credit bureaus that publish your credit reports...

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What Is Credit Like After Bankruptcy Discharge?

While a bankruptcy stays on your credit file for 10 years, you are able to get new credit before that period is over. However, getting credit after a bankruptcy discharge, which signals the end of a bankruptcy, is not easy. Secured Credit Card Once your bankruptcy has been discharged, you should attempt to reestablish your credit. Wait two months after the bankruptcy and then apply for a secured credit card with a bank. A secured credit card requires a deposit, and the amount of your credit limit is determined by the amount of money you...

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How Often Will a Credit Limit Increase?

Credit limit increases do not happen at specific times for every credit card holder. Some banks decrease credit limits for certain customers, even if the accounts are in good standing. Increases are sometimes predictable if you know the criteria on which lenders base them. You can request an increase, although this affects your credit score, and there is no guarantee you will get a bigger credit line. Definition A credit limit increase means...

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How to Refinance My Car to Lower Payments

Refinancing your car to achieve lower monthly payments could provide your budget with some flexibility. Lowering your car payment by $50---or even more than $100---could free up enough money to help with gasoline costs or a utility bill. However, refinancing for lower payments can often cost you more in the long run, as the bank or credit union will add additional months to the loan to lower your payments. That could result in total finance charges that would be higher than you would have paid on the original loan. Instructions 1 Check your...

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Can a Collection Agency Attempt to Collect a Debt With No Judgement?

Collection agencies do not need a judgment to attempt collecting a debt. A judgment is the result of a civil lawsuit for an unpaid debt. Usually it is the debt collector's final option for collecting. Debtors who refuse to pay a debt until a court orders a judgment are taking unnecessary risks. Judgments can lead to garnish of the debtor's bank account or wages, with some people forced into bankruptcy by multiple judgments. Resolving the debt before court action is a better option. Effects Court judgments appear in public court records...

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Rights of a Surety Against the Creditor

A surety is often used when a person requires a bond, either for court-related matters or as part of a business contract. A surety essentially guarantees another person's debt or obligations. When the person defaults on the debt or obligation, the surety becomes liable to the creditor. While the surety is liable, the extent to which that liability extends is not infinite. A surety has rights against a creditor; however, the precise rights will vary somewhat by state. Purpose of a Surety A surety is a person who agrees to take on your debt...

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How to Borrow Money Without Proof of Income

Borrowing money without providing proof of income is significantly more challenging than the typical path of providing bank records and pay stubs to demonstrate an ability to meet the obligations of the loan contract. This process is easier if you have an excellent credit rating or are willing to provide significant security for a loan, such as a down payment or a major asset like a house or car. So-called "no-documentation" loans, particularly mortgages,...

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How to Access Credit Scores

It is essential to know your credit score when you plan to buy something on credit. This three-digit number tells creditors the likelihood of your repaying credit if it is extended to you. Not knowing this score can cost you when you negotiate the terms of a loan. Higher scores indicate a good credit risk while low scores indicate more of a credit risk. A low credit score typically means higher payments, terms and interest rates. You can access...

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How to Rapidly Build Credit

To get the lowest interest rates on an unsecured credit card or on a loan for a car or home, you must have a healthy credit score--typically 700 or above. If you've never used credit, prospective lenders have no history on which to gauge your trustworthiness in paying back debt; in fact, the length of time you've been using credit weighs in at 15 percent of your overall credit rating. The Consumer Federation of America and Fair Isaac Corp. say that...

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How Does Bill Consolidation Work?

What is Bill Consolidation? Bill consolidation is converting several smaller bills into one larger bill. Bill consolidation is usually done with loan bills, such as bills for credit cards, car loans and student loans. When debts are consolidated, a lender buys out several debt obligations of an individual to offer her a single larger loan. The consumer begins by finding a consolidator, then the two work together to form the terms for a new loan based on the debtor's existing loans. If and when an agreement is reached, a contract is signed,...

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Define Financial Hardship

Many people are no stranger to financial troubles. If you are in financial hardship, you can qualify for a lot of assistance such as suspended payments on your credit cards, but if you don't really know what financial hardship is, you may not be aware that real help is out there. Identification Financial hardship involves a severe lack of finances due to life circumstances. There are two reasons why a person may want to prove he has financial...

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How to Solve Credit Card Debt

If you have credit card debt, you are certainly not alone. But, if you have a monthly debt that is 15 to 20 percent of your income, you have too much debt, according to CNN Money. Additionally, when you don't pay off your credit cards, depending on your interest rate, much of your money could be going to pay interest. It may seem like an insurmountable task, but you can create a workable plan to solve your credit-card debt. Instructions 1 ...

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How to Stop Paying Unsecured Debt

It's easy to stop paying unsecured debt, but that doesn't mean the debt vanishes. Some people make a strategic financial decision to stop paying their unsecured debt in hopes of eventually settling the debt for less than the full balance. That can be a tricky proposition, although The New York Times, in a Jan. 2, 2009 story by Eric Dash, reported that some banks will settle delinquent unsecured debt for as little as 30 percent of the balance. So-called...

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Does Overdraft Affect Credit Rating?

Overdrafting your checking account can lead to a financial crisis if you're not careful. Constant overdraft fees and playing catch-up with your bank create a troubling spiral that can leave you unable to meet your current financial obligations. A common question when dealing with overdrafts whether they have any impact on your credit rating. Overdraft Basics When you attempt to spend money you don't have, either by using your debit card or by withdrawing cash from an ATM, your account is considered to be in overdraft. As a result, you can...

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How to Make an Old Debt Disappear

Every day, thousands of people get out-of-the-blue calls from collection agencies that tell them they owe money from a debt they don't even remember. Sadly, many of these people are tricked into paying old debts that are not legally enforceable. You can stop these collection efforts and dispose of an old debt for good simply by checking your credit and drafting a letter. Instructions 1 Know what the debt is from. If you don't know what the debt is from, why should you believe someone who calls you and tells you that you owe it? Many scams...

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What Is a Reasonable Debt?

Owing creditors money can improve your chances of getting a loan, but only if it's what creditors consider a reasonable amount of debt. A reasonable amount is one that allows you to make payments on time and in full in addition to managing your other expenses. Creditors primarily use three calculations to determine whether this is possible in your financial situation. Debt-to-Income Ratio The amount of money you have to cover regular expenses is a fair indication to creditors of how much money you can spare on new debt payments. So, they...

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What Are the Dangers of Consumer Credit?

Borrowing money is a way of life in America. Consumers take out loans for mortgages, credit cards, car loans and student loans. Revolving consumer credit, like a credit card, is used for everything from renting a car to booking a flight online. The proper use of credit can be beneficial to a consumer's financial life, but there are risks to using credit that consumers should be aware of. Too Much Debt According to USA Today, consumer spending...

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What Can I Do When My Debit Card Is Charged & I Don't Know Who Did it?

An unauthorized charge showing up from a debit card can be a stressful situation for a consumer. Unlike a credit card charge, a debit card charge draws directly from a consumer's bank account and may cause the consumer to overdraw the account or simply not have the money needed to pay bills or other living expenses. Consumers who find a charge on their account that they did not authorize need to take prompt action. Report the Charge When...

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What Are Debt Collection Agency Procedures in Texas?

Like many states, Texas law spells out what procedures debt collectors must follow when trying to get money from you. Unlike the federal Fair Debt Collection Practices Act, which applies only to collection agencies and to attorneys hired to collect debts, Texas law also applies to creditors trying to collect on a personal, family or household debt. Procedures If you live in Texas and someone's trying to collect money from you, their collection procedure must avoid harassment, unfair practices or false statements. Harassment includes threats...

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The Process for an HUD Insured Foreclosure

The process for an HUD insured foreclosure will differ depending on the state where the homeowner lives. There are general guidelines for a foreclosure process but you should read your states foreclosure laws (see Resources for different state laws). The Beginning As a general rule, a lender will start the HUD foreclosure process three to six months from the first missed mortgage payment. After 30 days from the mortgage payment date passes...

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Consumer Rights Regarding Credit Collection Agencies

If you cease to pay a debt, you will likely discover that your account has been transferred to a collection agency, which will attempt to collect the debt. Even though you owe a debt, that does not give debt collectors the right to collect the debt from you by any means necessary. The Law The Fair Debt Collection Practices Act was established to combat increasingly abusive debt collection practices. If a collection agency violates the guidelines...

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