Can They Take Your House If You Have Debt?

When you fail to make regularly scheduled debt payments, you fall into default. If you default on an unsecured debt or a debt tied to property other than your home, the creditor has no claim on your property and therefore cannot seize your home. However, if a creditor secures a debt by placing a lien on your home, then you can lose your home if you fall behind on your debt payments. Home Loans Most instances of foreclosure involve mortgage companies foreclosing on delinquent borrowers. If you fail to make a mortgage payment within 30 days...

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How to Get a Garnishment Reduced

A garnishment is a legal order that gives a debt collector the right to take your property or rights to property to fulfill a debt you owe. The Internal Revenue Service calls a garnishment a levy. A wage garnishment is one of the most common tools debt collectors use to recover debts. Federal law limits the amount an employer can withhold for a wage garnishment in a single pay period to 25 percent of disposable income. If the garnishment is causing...

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How to Deny a Breach of Contract With a Debt Collector

Typically, the complaint that a debt collector uses when suing you over an unpaid debt is breach of contract. It will claim that when you failed to make your payment, you reneged or breached your contract with the creditor. After making initial contact with you regarding the debt, the collector may sue you to collect the money it says you owe. If it sues, you will receive a summons from the court containing the collector's complaint. You must file an answer with the court within the time specified in the summons to deny the allegations. Instructions...

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Collection Agency Techniques

When you get behind on your payments, there is a strong chance that a debt collection agency will be in touch with you soon. Collection agencies are hired by companies to facilitate the collection of their outstanding accounts. If you are behind on your bills, here are some of the techniques that a collection agency might use. Phone Calls One of the most common ways that collection agencies try to contact you is over the phone. They could potentially call your home phone, your cell phone or even your work phone. Collection agencies are...

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How to Create a New Credit File Fast

If your credit history has taken some hits, starting over with a new credit file can seem like a good solution. However, it's not that easy to sweep old mistakes under the rug. And there's no way to create a completely new credit file, especially in a short time. However, this reality doesn't stop businesses from trying to sell a fast, easy solution to desperate consumers. To start fresh and bring new life to a dinged credit record, there are...

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How Long Do You Have to Wait to Refinance a Mortgage?

Very few, if any home mortgage agreements disallow refinancing. They can, however, require prepayment penalties for early payoff. The right amount of time before you refinance depends on what type of loan you currently have, what type of new loan you want and your personal situation. Often, just because you can refinance your mortgage doesn't mean you should. Current Mortgage Read your current mortgage note. When you closed your last mortgage, your title company or attorney should have given you a copy of everything you signed. Your mortgage...

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Can a Collection Agency Put Things on My Credit Report That Are Not From the Original Creditor?

A credit report lists items from original creditors and collection agencies along with identifying information and public information. Three credit reporting agencies are responsible for compiling and maintaining the information in your credit report. Consumers are responsible for monitoring their credit report to ensure accuracy. Consumers can dispute inaccuracies with the reporting agency. If the item is deemed incorrect, it will be removed from the credit report. Definition A third-party collection agency takes over delinquent account...

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Debt Reduction Worksheets

Debt-reduction worksheets are available free online, but they can only be useful to people who are committed to putting their spending in check. Spending control is as big a part of debt reduction as is paying off bills. That's why debt-reduction worksheets usually require people to list their debts so that they can get a realistic picture of how much they're spending. Snowball Strategy Consumer Counseling Centers of America, CCCA, offers two free debt-reduction worksheets on its site that can be used with Microsoft Excel or an OpenOffice...

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How to Get My Name Off of a Cosigned Education Loan

Many education loans from private lenders require student borrowers to have a cosigner. As a cosigner, you vouch for the student by putting your own money and credit on the line. If the student makes late payments, these appear on your credit report. If the student defaults on the loan, the lender will pursue you for repayment. Because your agreement to cosign is a legally binding contract, the lender has no obligation to remove your name from the loan. However, there are a few ways to do this with the cooperation of the student borrower and the...

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How to Make Money With Credit Repair

Credit plays such an important part in our lives today that poor credit can hinder us from finding employment, an apartment, buying a home, buying a car or even taking out an insurance policy. Credit repair has become a big business, and if you are a credit repair expert, than you can make money with credit repair services. Instructions 1 Counsel clients per hour or half hour. During a counseling session, teach your clients the importance of credit repair and explain the steps needed to take in an effort to repair their credit. Do some research...

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Can I Make an Agreement After I Got Sued for Credit Card Debt?

Some consumers ignore credit card debt until a creditor files a lawsuit. But even after being sued for credit card debt, you can make an agreement with the creditor in which you promise to pay the debt. Agreeing to pay credit card debt after being sued prevents a creditor from taking further action to collect the debt, such as garnishing your wages or levying your bank account. Avoid a Lawsuit A creditor or debt collector may threaten a lawsuit...

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Facts & Figures on Debt

At the time of publication, the total outstanding debt of the United States government is $14,215,744,197,688.26 -- or roughly $14.2 trillion. That represents the equivalent of $46,000 per person living in the U.S.; $121,000 per household; and $303,000 for each household that pays more federal taxes than it receives in federal benefits. American consumers appear to be following suit, but they are getting into debt just to keep food on the table,...

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How Much Interest Do You Have to Pay on a 10,000 Dollar Loan?

When you borrow money, not only do you have to gradually pay back the money you borrowed, the principal, but you also owe interest, which can make up a significant portion of your repayment. The amount of interest you will have to pay on a loan of $10,000 depends on a few factors. Interest Rate The single most important factor in calculating how much interest you have to pay is the interest rate. The interest rate expresses the percent of your principal balance that you owe in interest each year. Your interest rate varies, depending on...

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How to Keep a Credit Score in Good Standing

A credit score is the tool used to measure your financial trustworthiness. Good credit scores mean that you will be able to get a loan or credit card at a better interest rate than if you have a bad score. A high credit score shows banks, department stores and other creditors that you are less of a financial risk. Having a bad credit score may make it difficult for you to get a loan, mortgage, rent an apartment or purchase a new vehicle. It is important...

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The Advantages of Credit Card Usage

It seems no matter where you go these days some merchant, bank or retail company is asking you to sign up for a new credit card. Some waive the application fee while others eliminate yearly fees altogether. Before you sign up for a new credit card, or decide to get rid of the ones you already have, it's time to learn what makes credit card use advantageous. Fraud Protection Credit cards offer consumers protection under the Consumer Credit...

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How to Reduce Student Loan Rates

For some, student loans are a necessity. While you're still in school, the amount you have to pay back later doesn't seem like much, but when you're facing your first bill on an entry-level salary, you'll start to wonder how you'll ever pay it all back. There are now several ways to reduce your rates on student loans, and even your payments, just by taking a couple of hours to do a little research and make some phone calls. Soon you'll be facing...

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Process of Buying a Leased Car

When you first sign your car lease agreement, it may have a special condition included called a buyout option that allows you to purchase the vehicle at lease-end if you wish. So if you grow attached to the vehicle during the lease period, you can start the process of buying it from the dealership instead of turning over the keys. Lease Terms The first step in the process of buying a leased car is to review the original lease. Determine the residual value listed, which is likely the amount the dealer will use to propose the final sales...

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What Are the Benefits of a Consolidated Credit Counseling Service?

According to the Index Credit Cards website, the average person has $3,752 of credit card debt, while the average household has $7,394 of credit card debt. Other debt includes student loans or personal loans. Some people find themselves burdened with debt payments, unable to escape financial trouble. Consolidating debt with the assistance of a credit counseling service offers the beleaguered consumer a variety of benefits. One Monthly Payment...

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Can Creditors Garnish Wages for Money?

If a person is in debt, he risks having this debt collected forcibly, through the garnishment of his wages by a creditor. Garnishment happens when a creditor gets a civil judgment against the debtor and then asks a judge to enforce this debt through the imposition of a garnishment, in which the debtor's assets are seized from the person's employers. Garnishment can happen in only some cases, though. Lawsuits All garnishment must be authorized legally through the permission of a judge. No garnishment can be conducted unless a judge first...

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How to File a Labor Lien in Oklahoma

Every state, including Oklahoma, has a law allowing contractors to place a lien against the property they are working on to secure payment for services rendered. This legal practice is referred to as a "construction lien," "labor lien" or a "mechanic's lien." Filing for a labor lien is a relatively straight-forward process. Instructions 1 Prepare a pre-lien notice. The notice must say it is a pre-lien notice and contain the following information: your name, address and telephone number; the date(s) you supplied labor, materials or other...

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How to Buy a Computer Online With Financing for Bad Credit

In this day and age, having a computer is vitally important. Not only are they useful for surfing the web or checking email, you can use special programs to develop a budget, write your resume or research a project. Without a personal computer you would have to do these task at the library or an Internet cafe where security is not as tight. But what if you have credit trouble? Chances are your won't be able to afford a computer outright, so you'll need some financing. But your choices may be limited due to bad credit. Not to fear. With...

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How Can I Get a Loan or Grant if I'm Unemployed?

Getting a loan or grant while unemployed depends a lot on your overall financial situation. People with other forms of regular income, such as monthly retirement pay, may easily qualify for loans while unemployed. However, people relying solely on unemployment may not qualify for most loans because of insufficient income. Community-based grants are sometimes an option for unemployed people who are suffering from extreme hardships, but the help isn't widespread. Government grants are usually not an option. As of 2011, local, state and federal governments...

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Can Financial Aid Returns Be Garnished?

Financial aid distributions arrive at a student's educational institution first, where the funds are applied to tuition and other fees required for attendance at the school. The remainder of the financial aid funds are then distributed to the student by check or electronic deposit. Federal law offers protection against the garnishment of financial aid distributions. Garnishments Defined A garnishment is a legal order that instructs an employer or financial institution to withhold a certain portion of a person's money. The writ of garnishment...

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Debt Reduction Compared to Consolidation

Debt consolidation involves taking out a low-interest loan and using that to pay off your higher-interest obligations. Essentially, with debt consolidation you're moving all of your debt to a single low-interest creditor to reduce your monthly payments. While consolidation can help you get out of debt faster, it has to be seen as one part of a complete debt management strategy -- not as a magic bullet that will take care of all of your financial...

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What Does a "Credit Line" Mean on a Credit Card?

Whenever you get a credit card, you essentially enter into a loan agreement in which you determine how much money you borrow from the creditor by making purchases. It is up to the creditor to determine how much money it allows each individual borrower to borrow; this is typically referred to as a credit line or credit limit. Credit Lines All credit cards come with a credit limit --- a specific dollar amount the credit card issuer allows the...

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In Debt: Please Help!

Having too much debt in your life is stressful. If the debt is substantial it can cause you to feel overwhelmed or hopeless about ever getting it under control. By acknowledging that you are in over your head with debt and deciding to take steps to take charge of your finances, you can begin to fix the problems and improve your situation. Evaluate Your Debt Get a complete picture of how much debt you have by creating a list. Write down every...

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How Does an LLC Affect a Credit Report?

Establishing a limited liability company (LLC) does not have a direct impact on the owner's credit report. The debts of an LLC are only reported on an individual's credit report if they are the personal guarantor. Features An LLC requires applying for a tax identification number, as well as filing articles of organization with the state in which business is conducted. This creates a legal entity that is separate of the individual owners. Benefits By establishing a separate legal entity, the personal assets of the LLC owners are protected...

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Will Credit Card Companies Negotiate a Lower Pay Off?

Credit card debt is a serious problem for many people, but the amount owed can be negotiated in some circumstances. However, consumers need to know the consequences of settling debt and ensure that it is done properly. Willingness to Negotiate Credit card companies are most willing to negotiate pay offs with consumers who are behind on payments. As an account becomes past due, credit card companies begin to worry that the balance will not be paid and may be willing to accept a lump sum payment for less than the amount owed. Documentation...

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Wage Garnishment & Insurance

Wage garnishment occurs when a court order has been filed that requires your employer to hold a portion of your earnings. The earnings are used to pay toward a debt owed, such as child support or unpaid student loans. If you pay insurance monies, portions of the money may be protected from garnishment. Features If a judgment is made against you, a judge may release a Writ of Garnishment to your employer. The employer is then required to report...

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How to Handle Bill Collectors on the Phone When the SOL Has Passed

When you fail to pay a debt, bill collectors have the right to contact you to request payment. In many cases, these creditors are persistent and call you frequently in an attempt to collect on the debt. However, in each state, there is a statute of limitations, or SOL, after which the bill collector can no longer collect on the debt. This SOL begins from the date of your last payment. While a bill collector has no right to collect the debt from you...

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How do I Settle Credit Card Dept?

Credit card debt can bring down your credit score and cost you much more in interest and fees than the amount you originally charged. Some credit card companies are open to settling delinquent debt and credit card debt that has been sent to collections. Some companies may even negotiate with you before your credit card account is delinquent in order to avoid the cost of collection. Instructions 1 Make a list of your credit card accounts, their phone numbers, the amount owed on each card and their interest rates. 2 Ask creditors if they...

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Do Civil Judgments Appear on a Credit Report?

A civil judgment is a legal affirmation that you are responsible for paying a debt. A creditor typically seeks a judgment as a last resort after making numerous attempts to compel you to pay your debt. Incurring a judgment as a debtor can cause significant financial problems, and can also negatively affect your credit score. Credit Reporting After a county or district court issues a judgment against you in favor of a creditor, the county...

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How Can I Get My Ex's Debt Off My Credit Report?

Untangling your financial affairs from your ex-spouse's can be difficult after a divorce. Many couples have joint credit cards or other accounts that must be severed; failure to do so can affect your credit if your ex uses the account without paying the bill. If possible, work out a financial agreement with your ex during the divorce and close all of your joint accounts. Experian, one of the three major credit bureaus, also recommends both spouses taking out a loan to pay their portion of past debts to help sever financial ties. Joint Accounts...

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How to Ask Credit Card Companies to Reduce Your Balances

If you do not pay your credit card debt, it will eventually be charged off by the credit card company. In July 2009, credit card companies were forced to charge off over 10 percent of the balances they were owed, according to Moody's. Because of the large amounts of money that are lost through charge-offs, many credit card providers are opting to negotiate with consumers to lower their balances. You can negotiate lower credit card balances yourself without enlisting the aid of a company to do it for you. Instructions 1 Organize your finances...

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The Best Way to Repair Credit and Raise a Credit Score

Tweaking your credit report and building your credit score presents a host of opportunities. If you apply for a loan, your credit score will likely be used to determine the interest rate, and some employers review an applicant's credit history before offering a position. There's no secret trick to repairing credit and raising a credit score. Oftentimes, it's simply a matter of using credit wisely and managing your finances carefully. Instructions...

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How to Get Out of Credit Card Debt in 7 Steps

The benefits of getting out of debt can include a higher credit score, better interest rates on loans and increased personal savings. While many people wish to pay off their credit card balances and get out of debt, achieving this milestone is often challenging. Eliminating credit card debt requires a plan of action. Several techniques can put you a step closer to paying off your credit card debt. Instructions 1 Put credit cards in a safe,...

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ABCs of Getting Out of Debt

Many people find themselves struggling to eliminate debt in their personal budgets. These debts may occur as a result of job layoffs, unplanned medical expenses or living beyond their means. Debt payments require the consumer to forgo purchasing other items they may need or want. By following their ABC's, these consumers can find their way out of debt and into financial freedom. Acknowledge The Debt Acknowledge their debt. Many consumers prefer to make their monthly payments and ignore the impact the debt has on their budget. These consumers...

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Is Debt Consolidation Good for Your Credit?

In some circumstances, debt consolidation loans can be a good way to patch up your damaged credit. However, turning to a credit consolidation company in desperation probably won't yield the most ideal circumstances. If you're behind in your payments or at the limit of your credit, you may not receive the best offer from any lender. Before you enter into a debt consolidation loan, know and understand the terms of your agreement. Paying Off Debts In some circumstances, a debt consolidation loan may help improve your credit score. By transferring...

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What to Do After a Credit Card Company Seizes My Account?

When you fail to make payments on a credit card, your credit card company may opt to get the money through seizure of your bank accounts. Account seizure is incredibly disrupting, as you can't use the accounts to pay for so much as a stick of gum until the debt is paid. Thus, when account seizure happens due to credit card debt, you must take steps to protect your assets and remove the debt you owe as quickly as possible. Stop Direct Deposits...

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How to Prevent Social Security Benefit Garnishment

Federal statute exempts Social Security benefits from garnishment of any kind by private creditors, such as credit card companies and other lendors of unsecured debt. However, your Social Security benefits may be inadvertently garnished, if a creditor obtains a judgment against you in a court of law. Here's how to avoid Social Security garnishment before it even begins, and what to do if your benefits have been garnished. Instructions 1 Know the law. Federal statute exempts Social Security benefits from garnishment by private creditors,...

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