How to Negotiate Paying Defaulted Credit Cards

Negotiating payment of defaulted credit cards requires patience. You and the debt collectors will have opposing goals: Debt collectors want to collect as much of the debt as possible, and you should pay as little as possible. Experienced debt collectors are unlikely to accept a rock-bottom offer during the first round of negotiations. That means reaching an agreement could take some time, even months. You must decide how much you can afford to pay on a specific account and not budge past that point. Instructions 1 Call the credit card company...

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How to Report One Account to Credit Bureaus and Landlords

If you have a new or less-than-satisfactory credit profile, you can improve your credit by adding an account to your credit report. Additionally, landlords may accept proof of a satisfactory account to establish credit. To add an account to your credit report, submit proof of the account to the credit bureau or directly to the landlord. Instructions 1 Collect billing statements and copies of both sides of the canceled checks used to pay the account for a 12-month period for the account you want to add to your credit bureau or use to establish...

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Help With Writing a Financial Hardship Letter

Good communication with your creditors can mean reduced interest rates and fees. To remain in good standing, inform your creditors when you are experiencing financial hardship. A simple letter of explanation can help you avoid collection calls, and sometimes late fees, when you fall behind in paying on your accounts. How Much You Can Pay Creditors are generally detail oriented. Stating that you are having financial trouble is not enough information. Always get specific. Give creditors a date when you hope to regain financial stability....

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How to Close a Line of Credit

A line of credit allows you to borrow money, up to a set limit, on an as-needed basis. Lines of credit differs from loans, which immediately provide you with the full amount of borrowed money up front. With a line of credit, you only pay interest on the outstanding balance. The most common lines of credit are home equity lines of credit, which are secured by your home; some banks also offer personal lines of credit. Instructions 1 Review your line of credit agreement. Specific instructions for closing the line might be contained within...

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Can I Get a Personal Loan to Move?

Personal loans are available for virtually any purpose--including moving. You can borrow a few hundred dollars to move across town or a few thousand dollars to move across the country. Your credit score will largely determine exactly how much you can borrow, with some professional movers possibly arranging loans through third-party financial institutions Beware of Interest Rates Unsecured personal loans such as signature loans and credit cards don't require collateral. That makes the loans easier to qualify for but much more expensive than...

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Can Poor Credit Keep You From Getting a Police Job?

Police officers are responsible for a wide range of public safety and investigative duties and are given broad powers to ensure these duties are carried out. While each police department has different standards it uses to determine who can become an officer, most, if not all, departments look at a person's credit history to evaluate the candidate. Bad Credit When you apply for a position as a police officer, agencies typically require that...

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How to Get Out of Consumer Debt Without Taking Bankruptcy

Bankruptcy is an option if you cannot handle your bills any other way, but you may be able to handle your consumer debts without that drastic step. Even though bankruptcy either cancels your debts or provides an affordable repayment arrangement, it also brings down your credit score and appears on your credit reports for a decade. Other debt relieving arrangements often have less negative impact on your ability to get future loans and accounts, and...

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What Are the Effects of Bad Credit History?

A bad credit history can affect your financial future in several ways. You may pay high interest rates for many years because of low credit scores, especially if you never improve your credit rating. A poor credit history also can affect the type of job you can get, which could hamper the possibility of receiving higher salaries. Delinquencies One of biggest problems for people who have bad credit histories is that the negative information in their credit files remains there for several years, even if they have paid off bad debts. Delinquent...

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Do Creditors Report a Bankruptcy to Equifax?

Bankruptcy is a court action that affects your creditors. Banks, credit card issuers and other companies that loaned you money may get some of it back, or the debt might get wiped out entirely, depending on which type of bankruptcy you file, according to the Federal Trade Commission website. This negative court action makes its way to your files with Equifax and the other credit bureaus. Definition Equifax is one of the three national credit bureaus, according to the Federal Reserve Bank of San Francisco website; the other two are TransUnion...

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What To Do When You Can't Make Payments on a Credit Card

Occasional late payments may temporarily harm your credit score, but are not serious if they only happen once in awhile. However, if you reach the point where you are completely unable to make payments, reaching out to your creditor may actually help. If you're past the point where your creditor is willing and able to help you, you may need to consider other options. Notify Your Creditor As soon as you realize that making payments on your credit card is presenting more financial strain than you can handle, call your creditor and notify...

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Legitimate Reasons for Canceling a Credit Transaction

One of the reasons consumers use credit cards and other similar credit arrangements is that they have consumer protection built in. In certain situations, you can cancel a credit transaction without any negative consequences. While you cannot always cancel for any reason, you may be able to discontinue the transaction for legitimate reasons. Item Not As Described One of the most common legitimate reasons for canceling a credit transaction is that the item you purchased is not as it was described by the seller -- for example, you buy a toaster...

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Percentage of Debt That Collection Agencies Accept

It is impossible for anyone to exactly predict how much a debt collection agency will accept during a negotiation over delinquent debt. All negotiations are different, and debt collection agencies are independent companies. That means one debt collector could accept a certain percentage, with another insisting on a different percentage. SmartMoney reports that generally, debt collectors will negotiate settlement of unsecured debt such as credit cards for 20 to 70 percent of the balance. Considerations Debt collection agencies sometimes...

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Jobs to Get Out of Debt

When you have accumulated a lot of debt you may need to increase your income to pay off the debt more quickly. Depending on the amount of debt you have you may need to take a two-step approach, finding a temporary second part-time job and finding a new job that will earn you more money. Before looking for jobs, have a budget in place and stop using your credit cards to make your hard work pay off. Part-time Jobs A part-time job that you work...

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About Foreclosure Resources

Foreclosure resources can help you avoid losing your home because of missed payments. Help is available in virtually every community and can include credible advice from housing counselors approved by the U.S. Department of Housing and Urban Development (HUD). The counselors are an ideal starting point for people looking for foreclosure avoidance solutions. Getting Counseling The Federal Trade Commission strongly recommends that you meet with a government-certified housing counselor if you are about to start missing payments or have already...

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How to Learn Loan Modification

Learning about loan modification could help you become more knowledgeable about ways to avoid foreclosure. Loan modification changes the terms of your mortgage to make the payments more affordable. According to Zillow.com, loan modification is also known as mortgage modification, a workout plan, or a mortgage restructuring. The goal of loan modification, according to Zillow, is to help people who are working through a financial hardship and are struggling to pay their mortgages. Lenders agree to help by making permanent changes to the loan, including...

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Process to Notify Potential Credit Card Creditors of Divorce

When a couple divorces, they need to separate their finances, including jointly-held credit cards. The process of informing credit card companies of a divorce may require spouses to contact the creditors more than once, particularly if the couple has difficulty settling their finances, one or both parties changes an address multiple times or a spouse changes a last name after the divorce becomes final. Discovery and Disclosure The first step in dividing credit card debt and notifying creditors of a debtor's change in marital status is...

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Indiana's Statute of Limitations for Debt

When a statute of limitations expires, creditors can no longer win a case involving legal action in a court of law. Indiana's statute of limitations for debts varies depending on the type of account involved. Types There are four types of debt accounts that a statute of limitations can apply to in Indiana: oral, written, promissory note and open-ended account. Oral contracts are based on a handshake. Written contracts include the repayment terms between a borrower and lender on a document. Promissory notes include the number of payments...

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How to Request a Proof of Debt Letter

Requesting a proof of debt letter from a collection agency helps validate the fact that you owe money. Collection agencies may purchase an old debt from lenders and creditors and attempt to collect these past due funds. But oftentimes, collection agencies can't provide proof that a consumer owes the money. Requesting a validation letter requires action from agencies, and if they can't supply this letter, they must stop contacting you. Instructions 1 State your reason for challenging the alleged amount. Refer to the account number listed...

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When Can You Arrange a Settlement With Credit Cards?

Setting up a debt settlement with one of your credit cards could help you avoid paying a large percentage of what you owe. But even if you are interested in pursuing a debt settlement, your credit card company may not want to negotiate with you yet. Finding the right time to go after a debt settlement is important. When Is Debt Settlement an Option? When you accumulate a large amount of debt on a credit card, you may want to pursue a debt settlement, but most of the time, you have to be late on your credit card payments before the credit...

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Is a Husband Responsible for His Wife's Medical Bills in Texas?

Whether a spouse is jointly liable for marital debts depends on whether he lives in a community property or equitable distribution state. In community property states, such as Texas, spouses are jointly liable for marital debt if the debts were incurred during the marriage. However, Texas law also provides residents with prescriptive homestead rights allowing them to shield their personal and real homestead property from creditors. Community Property Texas is only one of a few minority states following the doctrine of community property;...

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Guidelines for Revolving Credit Cards

Credit cards are both friend and foe, and to play the game of credit you need to control your credit card spending carefully. The key to getting your credit cards under control is understanding how they impact your overall credit. Since your credit is the basis for lenders, landlords and even employers to make big decisions regarding your life, it's vital to keep your credit cards in order. Credit Cards All credit cards are considered revolving...

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Definition of Gross Public Debt

According to Robert C. Pozen, senior lecturer at Harvard Business School, a likely $14.3 trillion gross public debt in the U.S. (by the end of 2010) will have serious future effects on the country. Such a high number is likely to cause a higher interest rate, slower economic growth and serious problems to federal entitlement programs such as SSI. Gross Public Debt Gross public debt is the total dollar amount of public and private financial...

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Can Military Wages Be Garnished by a Creditor?

Members of the military may have wages garnished by creditors seeking payment for a variety of debts including commercial debts, orders for spousal support, back taxes and child support payments. Even retired members of the military are subject to these regulations. Exceptions to these rules apply only to active-duty members of the military deployed in combat areas of the world. Deployed Military Members Federal law restricts most creditors from suing a member of the military who is in the field on active deployment. Creditors must wait...

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What Happens If You Don't Pay Hospital Bills?

Hospital billing departments send medical bills to insurance companies for payment, but if your insurance company refuses to pay or you lack health insurance altogether, paying the debt becomes your responsibility. Like any debt, if you ignore hospital bills, this can pose a threat both to your credit score and your future financial stability. Facts Most hospitals will notify you as soon as your insurance company turns down payment of your...

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Can Taxes Be Held for Judgements?

Owing delinquent taxes to the Internal Revenue Service can cause a problem for your other creditors. The federal tax agency typically jumps to the front of the line when recouping debts, meaning your other creditors must wait longer to receive payment. Any judgments the IRS wins against a debtor can also run simultaneously with a bank levy or tax lien, allowing the agency to claim an even larger portion of a debtor's finances and assets. Creditor Debt Priority The court assigns priority to each creditor in terms of recouping debts owed...

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Is There a Statute of Limitations for Collecting on a Judgment?

Statute of limitations laws restrict the collection of all types of debts, including court judgments. If the judgment is not collected within the time frame prescribed by law, the creditor may never realize the amount of money awarded by the court. Judgment Collections Courts issue judgments, but don't act as collection agencies. The creditor must pursue its judgment just as it would any other debt. Judgments do, however, make it easier for creditors to actually collect what they are owed through asset seizure and garnishment. Statute...

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How to Report Harassment Credit Card Calls

The Federal Fair Debt Collection Practice Act of 1978 prohibits companies from using abusive or dishonest tactics to collect a debt. For instance, credit card companies can call their customers only between the hours of 8 a.m. and 9 p.m. They cannot harass your employer or threaten family members to obtain personal information about you. If you feel harassed by a credit card company or its collectors, you can report their behavior in a variety of...

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What Is the Statute of Limitations on a Personal Loan in Virginia?

The statute of limitations precludes a plaintiff from filing a lawsuit after a period of time has elapsed from the date of his cause of action. Virginia, like other states, has limitations periods for various causes of action, such as negligence, fraud and actions to recover debt based on a personal loan. Virgina Statute of Limitations As of the date of this article's publication, Virginia has two relevant statute of limitations periods for personal loans. If the loan contract was in writing, the Code of Virginia Procedure 8.01-246(2),...

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The Difference Between Credit Cards & Debit Cards

Debit cards and credit cards have some things in common. Both are used to access money for purchases; and both are used instead of cash as a method of convenience. The biggest difference between a debit card and a credit card is who owns the money which is being used. The next biggest difference is the limits placed on these types of cards. Here are a few more differences. Financial Debit and credit cards are linked to financial accounts which are handled differently. Debit cards are tied directly to an account at a bank; while credit...

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Does Debt Affect Your Spouse?

The fact that you're conscious of how you spend your money and don't accumulate a lot of debt doesn't necessarily ward off money and debt problems. Being married to someone who carries high balances on credit cards or takes out several loans can have an impact on your finances and credit. Co-Borrowing or Co-signing It's not unusual for a person to help his spouse get financing for a loan. The spouse applying for financing may not have the...

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Does Your Credit Debt Disappear When You Die?

Credit debt does not disappear once you die. If you die and leave behind a sizable amount of debt, your estate will need to cover those costs. No one likes to think about what may happen to unpaid debt at the time of their death. Planning for it in advance may make the process easier for your estate administrators. Talk to your estate planner to put in place a plan of action so your family does not need to worry about repaying credit card debt after your death. Debts do not, however, transfer to your family or heirs to repay. Account Owners...

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Credit Repair Training

Training in credit repair can help a person through their personal debt, as well as aid in working as a financial consultant or counselor. Many debt consolidation/elimination companies will train employees in the basics of repairing clients' credit scores. As personal debt becomes larger, consumers are in need of repairing their credit score and standing. The Credit Score One of the first skills a person in credit repair must have is the...

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How to Pay Off Your Home Loan Faster

There are arguments both for and against paying off your home loan faster than its 15-year to 30-year term. While doing so may not always make financial sense, the emotional impact of ridding yourself of 15 to 30 years worth of mortgage payments can be a factor as well. Whatever your reasons, the process starts by understanding how the process works and applying it to your situation. Instructions 1 Review your mortgage amortization schedule to determine the remaining principal balance of your loan, the number of monthly payments needed to...

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Can I Sell Something if It Is Part of a Secured Loan?

When you use property to secure a loan, you are placing that property down as collateral. The lender puts a lien on the property, meaning the lender has a claim on the property until the loan is paid off. You cannot sell something if it is part of a secured loan unless you have satisfied the terms of the loan and had the lien removed. Typically, this happens at the time of sale. Procedure A common example of selling property that is part...

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Can a Renter Garnish Wages for Rent in Georgia?

When a person rents a property, he will generally sign a contract in which he agrees to pay a set amount of money over a set period of time. If the person fails to do this, then the creditor can go to court and seek the issuance of a judgment against him. In Georgia, landlords can theoretically receive a garnishment order against a debtor, although this rarely happens. Renting When a person agrees to rent a space, she also agrees to pay the landlord a set amount of money over a set period of time. If the tenant fails to uphold her end of...

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Can a Judgment in California Enforce a Wage Garnishment for a Person in Another State?

In California, the first step to garnishing someone's wages is to have a court confirm that the debtor owes you money so the court can award a judgment . The next step is to have the court issue a writ of execution. If you present the writ to the county sheriff where the debtor lives, the sheriff will direct the debtor's employer to begin the garnishment. If the debtor lives out of state, garnishment may still be possible, but it's more complicated. State Law Your ability to garnish your debtor's wages may be limited by the other state's...

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Personal Credit Card Debt Negotiating Tips

When you have personal credit card debt problems, they can be overwhelming. However, the sooner you begin negotiating with your creditors and telling them you want to make good on your debts, the sooner they won't be a problem any longer. At first, you may feel nervous, particularly if you are not used to negotiating. But negotiating will become easier with practice. Call Your Creditors If your debts are particularly overwhelming, this seemingly...

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