Laws on Consumer Debt in Kansas

Consumers who acquire debts in Kansas are protected by specific laws that not only limit when a creditor can sue you, but also limits how long a creditor has to collect money from you and how it must behave as it does so. You should speak with a Kansas attorney if you need legal advice about the consumer debt laws that apply to you or need assistance with a debt issue in Kansas. Types of Debts Consumer debts are generally placed into four main categories: oral contracts, written contracts, promissory notes and open accounts. A written contract...

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Debt Settlement & Repair

Debt settlement is a popular debt management and credit repair strategy. It is considered an alternative to bankruptcy and allows you to pay off delinquent credit accounts for less than the full balance. The strategy works well with unsecured credit accounts such as credit cards. Secured accounts, such as automobile loans and mortgages, cannot be resolved through debt settlement. Those loans are secured by the automobile or home, which serves as collateral. Rather than negotiate a settlement the lender will repossess or foreclose on the property....

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How to Reduce Interest Rates on Credit Card Debt

High interest rates on credit cards are a reality for many consumers who have been late on even a single payment, had promotional rates expire or had the card issuer raise the rate as part of a standard account review. Higher interest rates make it more difficult to pay down credit card balances. Fortunately, these high default rates or notices of interest rate hikes do not have to be accepted. Instructions 1 Ask. Sometimes, obtaining a lower...

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How Are Credit Ratings Being Affected by the Economic Crisis?

United States consumers' credit ratings have been affected by two key developments: the Credit Card Accountability Responsibility and Disclosure Act of 2009 and the national economic crisis that began the recession in December 2007. The economic recession, which has caused more than $75 billion in foreclosure actions, has also hurt individual credit ratings, with the rate of individuals seeking employment lingering around 10 percent, while the...

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Can a Lien Be Placed on the Property of Unsecured Debit Cards?

Although unsecured debts are defined as those that don't give a lender the right to confiscate property if the borrower doesn't pay the loan back, the reality is that a judgment lien can be placed against the property of the borrower. Liens are frequently placed against property, and although the lender won't be paid until the borrower attempts to sell or refinance, the borrower must pay off the lien before he can do so. Liens: Slow But Effective...

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Goals for Getting Out of Debt

Even though debt is the norm in the United States, you do not need to be obligated to creditors forever. The key to getting out of debt is formulating goals, because goals permit you to measure your financial success. However, sometimes people aren't sure what goals they should have or what is reasonable. Everyone's situation is different, but some basic goals apply to everyone. Goal 1: Set Up Plans Your first goal in eliminating your debt...

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How to Find Out the Original Collection Date on a Collection Account

The original collection date on a collection account is known as the date of last activity. This date marks the beginning of the statute of limitations for debt collection in every state and the reporting period of the debt on your credit report. Although the reporting period for collection accounts is set by The Fair Credit Reporting Act at seven years for any debt, the statute of limitations is different depending on your state of residence. If a collection agency attempts to sue you after the statute of limitations on the debt expires, you...

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What Documents Do I Need to Dispute Items Off My Credit Report?

Mistakes on your credit report can happen for a variety of reasons. While disputing accurate information on your report won't get it removed, you may be able to get an item removed or amended if there is a real mistake. Depending on what the error is, there are several types of documents you might need to effectively question it. By law a credit reporting agency must dispute an error on a credit report within 30 days of being notified. Dispute...

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How to Stop a Debt Collection Agency

If debt collection agencies are calling non-stop and sending you letter after letter on official-looking stationary, you can make them stop. If you don't have the money to pay your bills, someone constantly harassing you isn't going to make the money suddenly appear. However, the original creditor sold your debt to a collection agency that is now hot on your trail. You have the right to tell them to "Stop Contact" and leave you alone. By writing...

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How to Calculate a Loan Payment at 7 Percent Per Annum

Calculating a 7-percent per annum loan rate is easy to do. It involves converting the interest rate to a decimal and then multiplying that figure times the value of the loan. Loan Value as Number Write the loan value as a number. For example, a $50,000 loan should be written as 50,000. Decimal Conversion Change the 7-percent per annum rate to a decimal by writing it as 0.07. Annual Interest Multiply 0.07 times 50,000 to...

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Can I Deduct a Loan Made to a Family Member to Start a Business?

Most financial professionals recommend people avoid giving loans to family members. Relationships become messy when the borrower misses a payment or does not pay the loan back. However, many people do give loans to family. The family member who provides a loan to someone to start a business should treat it like an investment. This should be a business decision made after the person lending the money writes out the terms of the loan in a contract. The IRS may require this documentation if the investor has to write off the losses from that debt....

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How to Contact the National Credit Bureau

There are three national credit bureaus. These institutions monitor and track the credit standing for all Americans with active credit reports. There is no one "National Credit Bureau," but getting in touch with the three major bureaus -- Equifax, Experian and TransUnion -- is relatively simple. Instructions 1 Determine the reason for the contact. If you have general questions relating to creditworthiness, borrowing history, FICO scores and codes, you can contact each bureau by mail (the preferred method for non-urgent inquiries). Each mailing...

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Iowa Garnishment Laws: Can Your Checking Account Be Garnished?

Creditors may use a variety of strategies to collect from Iowa debtors who've fallen behind on payments. In most cases, if you haven't made your debt payments as agreed, your creditor will attempt to collect by phoning your residence or workplace, or by sending collection letters to your home address. If you don't respond or can't bring your account current, Iowa law permits more aggressive strategies, including garnishment of your bank accounts. Authorization A creditor cannot garnish a bank account belonging to an Iowa debtor without...

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Can Creditors Garnishee My Short Term Disability Checks?

Disability payments enjoy larger protections against creditor wage garnishment orders than other sources of income, including wages from working and gains from investments. A debtor's short-term or long-term disability payments are usually exempt from garnishment except in cases involving the federal government or a state government as the creditor. A government agency has the power to garnishee just about any source of income, including disability or retirement pay. Unsecured Creditor Garnishments Federal and state laws bar a creditor...

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The Effects of Credit Card Debt on Students

Credit card debt is the accumulation of unsecured consumer debt that is accessed through credit cards. Debt can accrue in this way via interest and penalties and there can be major credit score repercussions and interest rate increases for defaulting on the debt. Students who build up a credit card debt during college must deal with several repercussions with regard to their spending habits and payment neglect. Potential Employment According...

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How to Fill Out a Statement With Late Fees

Businesses providing goods or services often sell to their customers on account. This means their customers receive a product or service now and pay for it at a later date. The terms of credit sales vary by businesses and customers. Credit lines also vary based on businesses and creditworthiness. When a sale is made, the company sends an invoice to the buyer stating the amount due and the due date. If a customer does not pay, the business...

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What Happens When a Loan Balance Is Charged Off?

A charge-off on a loan balance is very damaging to your credit. The creditor will list the charge-off on your credit report by sending the information to major credit bureaus such as TransUnion, Exquifax and Experian. As a result, your credit score could fall, and other creditors may reject your applications for new credit or charge high interest rates because of the charge-off. Timing Creditors such as credit card companies will usually close accounts and list them as charged off after the loan account is six months past due. Some charge-offs...

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Can Collecting Unemployment Affect Your Credit Rating?

If you lost your job, you probably have a lot on your mind. One bit of good news, though, is that unemployment doesn't show up on your credit report. Receiving unemployment benefits can even put you in a better position to negotiate with your creditors. Still, it's important to keep an eye on your credit report, as potential employers often use credit reports in their hiring decisions. Credit Report According to Maxine Sweet, vice president of public education at Experian, your credit report does not include the fact that you are receiving...

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How to Pay a Collection Agency

Dealing with a collection agency is rarely easy and it is certainly never fun. If you ever find yourself communicating with a collection agency, knowing how to handle it will help make your life easier. Working with a collection agency does not always have to be stressful or time consuming. Instructions How to Pay a Collection Agency 1 Document all of your monthly expenses prior to speaking to the collection agency. You do not want to be pressured into agreeing to a repayment plan that you will not be able to maintain. Knowing your expenses...

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How to Request a Loan Extension

Its not unusual to have lean times when you cant quite make ends meet. When you need some breathing room from creditors, a proactive approach is most effective for resolving your financial struggles. Request a loan extension from the creditor connected with the loan. Most financial institutions have a process in place for helping customers request additional time for paying back a loan. Read the small print in any additional agreements you make to...

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How to Repair Your Credit in Six Months

Negative entries on your credit report hinder your ability to get credit cards, a mortgage or a car loan. With bad credit, you pay a higher interest rate on the credit you get. The credit repair process is not quick, but with some hard work your credit score can rise in six months. If negative entries are accurate, you may have to charm your creditor into removing the information from your report. When the account goes to collection, you'll have...

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Should I Use Savings to Pay Down a Mortgage or Pay Off Debt?

Having debt can be overwhelming at times. When you are paying high interest rates on credit cards and getting only a 2 or 3 percent return on investment from your savings account or certificate of deposit, it seems logical to pay off debts rather than put money aside. However, according to Liz Pulliam Weston an author and finance columnist for MSN Money, while the impulse to own your home outright is strong, paying off your mortgage early might not be in your best financial interest. First Steps Before deciding what to do with your savings,...

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How to Find an Apartment With Bad Credit

When you apply for credit, potential lenders look for certain things in your credit report in order to assess the risk you present as a borrower. Landlords have a somewhat different set of priorities. When a landlord sends your information to a tenant checking service, your rental history is checked as well as your credit record. Most landlords place more emphasis on rental history. For many people this makes it much easier to find an apartment with bad credit. Instructions 1 Know what landlords look for when they check your credit. Most...

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Stopping a Savings Account Lien

If you do not repay a debt, a creditor can legally place a lien on your savings account. The creditor must first go to court and sue you for the unpaid debt and win the case. The creditor may then place a lien on your bank account and seize the funds directly from it, to cover the unpaid debt. If you currently owe a debt and you have a savings account in your name, there is a way to protect your funds from being garnished. Learn the proper way to stop a savings account lien. Instructions 1 Contact the creditor to discuss your options. Try...

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Help to Manage Debt

Having a lot of debt can be overwhelming, but there are practical steps to climbing out of debt. You need to become educated about approaches to debt, get tools that help you organize your finances and plan a strategy for getting out of debt, and work on self discipline. There are many online tools, software and counseling agencies to help you. Online Resources There are a lot of online resources: advice and calculators for people who need...

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What Is the Meaning of a Credit Rating Score?

Modern economies run on credit; that is, the forwarding of money for investment or consumption on the basis of the borrower's ability to be productive and repay the debt. Lenders need to be certain the people who are borrowing from them have a good credit history and are most likely to pay the lender back with interest. The result of this need for assurance is the credit score. Features A credit score is a statistical summary. Its maximum is 850, but a good credit score is roughly 700 to 750, according to Kiplinger's financial magazine....

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Proper Credit Management

Proper credit management is key to building and keeping the best credit score possible. Credit scores determine approvals for different types of financing. People who practice good credit management often receive lower insurance premiums. Know the factors that affect credit and then take steps to improve your habits. Pay More Than the Minimum Credit card debt can impact personal finances and credit approvals. Debt accumulation can follow compulsive shopping or cash-flow problems. Even with past mistakes, you can conquer credit card debt...

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How to Deal With a Collection Agency Regarding a Hospital Bill

A hospital bill can put you in debt fast. If your health insurance doesn't cover it all, or if you don't have insurance, you can be facing an enormous bill that you have no idea how to pay. If your hospital bill goes to a collection agency, don't panic. Follow some logical steps to work with the collection agency in a fair and reasonable way, and get the bill paid,. Instructions 1 Respond to calls from the collection agency. The debt won't go away by you ignoring it. If your account has gone to a collection agency, you've probably already...

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What is the Average Debt of the American Family?

Debt is calculated by adding up all of a person's assets (cars, property, real estate) and subtracting the total of all outstanding loans. Americans generally owe one or more types of debt. Household Debt The average American's household debt is nearly $118,000, according to VisualEconomics. This is figured by adding the amount of money they have in the bank to their home's value along with any other property they own and subtracting the...

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The Statute of Limitations on Debt Collection in Maryland

The statute of limitations for debt collection in Maryland gives creditors a finite window of time to file formal legal action against you to obtain payment. Once the statute of limitations expires, creditors may only continue informal collection practices in accordance with the Fair Debt Collection Practices Act and Maryland Commercial Law. Informal collection practices may include contacting you by phone, through the mail or via email. Civil Actions In Maryland, creditors retain the right to sue you in civil court to collect payment for...

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Is a Judgment Creditor a Secured Creditor?

A creditor is "secured" when it holds an interest in an asset that belongs to a debtor. The asset the secured creditor owns a security interest in is called "collateral." A mortgage lender is just one example of a secured creditor because it has the legal right to foreclose on the borrower's property if he leaves his loan unpaid. Although not traditionally secured creditors, judgment creditors can secure an individual's debts in certain situations....

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How to Pay Off Bills With Bad Credit

Paying off debt is a difficult task for everyone these days. Gas prices keep rising. Groceries are costing us more. In fact, just about every bill that consumers have is rising to new levels of "ouch." How is someone supposed to pay off their bills with bad credit attached to their name? No lender wants to extend any more credit to them. The interest charges on existing debts, especially credit cards, keep going higher and higher. And there is no end in sight. Fortunately, a few simple strategies, painful as they might be, can readily help someone...

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Steps to Correcting Mistakes on a Credit Report

Mistakes on your credit report can have devastating consequences on your ability to obtain credit to purchase a car, a house or even to find employment. Credit report inaccuracies may range from a minor mistake on a credit card bill to crippling activity due to identity theft. It is important to be proactive when keeping your good name and your good credit in the best possible standing. Obtain a Copy of Your Credit Report Obtain a free copy of your credit report by completing a request form on www.annualcreditreport.com. By law, you are...

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Virginia Credit Card Laws

Virginia has a number of laws that apply directly to credit cards and card users. These laws govern both civil and criminal issues, and they can affect anyone using a credit card. You should speak to a Virginia attorney if you need legal advice about the state's credit card laws, especially if you're facing a credit card lawsuit or criminal prosecution for a credit card crime. Statute of Limitations Like all other states, Virginia has laws that limit how long a creditor has to sue you for a credit card debt on which you've defaulted. This...

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How Credit Approvals Work

Obtaining credit is necessary in a number of areas in everyday life. You may need to borrow money to buy a house, to purchase a car or even to buy smaller items on a credit card. Before you can gain access to credit, you must go through a credit approval process. This process involved determining whether you have the potential to be a solid borrower. Apply for Credit Before you can be approved for some type of credit, you must first apply for it. This involves filling out an application for the credit. When applying for credit, you will...

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How to Fix Government Bank Errors

Bank errors are a serious problem that can lower credit scores or even result in home foreclosures. The bank's coding puts in the wrong code for an individual, resulting in an error. When there are errors caused by the bank, fixing the problem is a necessary part of keeping a home or credit score. Instructions 1 Contact the government bank and inform them of the problem. In many cases, the problem is technical in nature, resulting in an error...

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Credit & Debt Help

Many people believe that they are supposed to go into debt so that they can build their credit. With a good credit rating, you're able to acquire more debt in the form of credit cards, a new car or a mortgage. Unfortunately too much debt quickly becomes overwhelming and you may find yourself struggling to make ends meet. One of the best ways to address a credit and debt problem is to re-evaluate your spending habits and make plans to begin paying...

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