Emergency Debt Relief Options

When you are struggling with debt, every month gets harder and harder to make those ever-increasing minimum payments. Do you have any options? Is bankruptcy your only choice? If you are facing a debt emergency, it is time to learn about emergency debt relief options and how they may apply to your situation. Types If you find yourself in a debt emergency, which is a situation where you absolutely cannot pay the minimum payments on your debts,...

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Alternative Debt Solutions

Often you can develop and follow a debt repayment plan to solve your debt problems. This involves budgeting and selling some of your assets to cover your debt over a certain period of time. If you can't afford to repay your debt, you may have to explore alternative solutions. Debt Management Some organizations offer debt management programs that provide professional help in solving your debt problems. This involves enlisting the aid of a counselor to review your debts and other financial detail. After the review, the counselor may try to...

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How Much Credit Card Debt Can I Be Sued For?

When a person takes out a credit card account, he is taking out a line of credit with a finance company. In all cases, the debtor will be required to sign a contract outlining the terms under which the contract is taken out and how the debt is required to be repaid. If the debtor fails to abide by these terms and the debt becomes delinquent, the company may choose to sue the debtor for the amount owed. Credit Cards Credit cards allow an individual to draw against a line of credit to pay for purchases. When an individual pays for a purchase...

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Credit History & Background Checks

A person's credit history and background information may affect his ability to borrow money, and sometimes even to obtain a job he is interested in. Understanding what information is contained in their credit history and background report and how it is recorded will help people improve their credit and overall financial situation. Function A person's credit history is made up of information about money she has borrowed in the past as well...

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What Can Happen to Your Credit If You Have a Late Fee on a Credit Card?

If you are late in paying your credit card bills, you may get hit with late fees. Even worse, the credit card company can report your late payments to the credit bureaus, lowering your credit score. Late Payments and Fees If you are late in paying your credit card bill, your credit card company may charge you a late-payment fee. This fee will increase both your balance and your next monthly card payment. Credit Reporting While the...

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Credit Score Calculation and Debt Reduction

Any consumers who have used credit have a credit score. Various companies calculate credit scores, and each uses its own formula. While there is no precise way to calculate your score without knowing the exact formulas used, you can get an approximation of how debt influences your score by reviewing the factors used to calculate credit scores. Credit Scores and Debt The purpose of a credit score is to provide current and potential creditors a means to gauge the risk you represent. Lower scores mean you are more likely not to repay a debt,...

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How to Start to Clean Up My Credit Report

Cleaning up a credit report requires patience and effort, and it can take several months to notice an increase in your credit rating. The contents of your credit report affect your rating, and certain factors such as late payments or debt can lower your credit score. Boosting your rating involves fixing or improving the information reported to the credit bureaus. This entails a measure of responsibility and learning how to manage credit better. Instructions 1 Go online to request a free credit report. Reading your credit report is the only...

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Can a Creditor Change the Terms After Closing an Account?

A consumer retail or revolving credit card account is a legally binding contract between the consumer and the issuing card company. When a consumer opens a credit card account, he signs a customer or account agreement that defines the essential and material terms of the contract between the parties. When the card company closes the account, it cannot unilaterally change any of the material terms and conditions of the original agreement. Elements of a Contract With common law three essential elements are required for the formation of a binding...

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Do Creditors Need to Contact the Collection Agency If You Paid?

Dealing with collection agencies is seldom a pleasant experience, but it is often unavoidable if a consumer owes an old debt. However, once a consumer pays off the creditor, the collection activities should stop. While a creditor should contact a collection agency to notify it that the consumer paid the debt, this does not always happen. If the collection agency's calls and letters continue, a consumer needs to take action to make certain the creditor properly reported the payoff of the debt and to get the collection activities to cease. Check...

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How to Fix Your Credit to Buy a Home

When you begin shopping around for a mortgage loan, potential lenders will each review your credit report to determine if you are eligible for a mortgage and, if so, what interest rate you should pay on the loan. If your credit score is too low, it may be nearly impossible to secure financing to buy a home. There are, however, basic methods of credit repair that you can use to successfully improve your credit score and qualify for a mortgage. Instructions 1 Pull your credit reports. You can do this by visiting annualcreditreport.com and...

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How to Get Caught Up on Payments

Falling behind on your payments can put you into a dangerous cycle, with late fees and interest charges making it even more difficult to get caught up. Failing to get current on your bills may cause the company to cut you off, or you may even lose your home. It's important not to turn away from your problems, even if you fear the worst. Doing so will only dig you deeper into the hole. Instructions 1 Gather all of your monthly statements to...

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How to Avoid Being The Victim of a Fraud

No one is invincible to fraud, and if you're not careful, someone can get a hold of your personal information and steal your identity. Regrettably, some victims aren't aware of a problem until they're turned down for a loan due to credit issues. Rather than delay a loan process to clear your name, take steps now to protect your identity and avoid fraud. Instructions 1 Run bill statements and other documents through a shredder. Anyone can easily obtain your credit card bills and bank statements if you toss them in the trash. Destroy items...

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Are Social Security Payments Attachable Assets in a Lawsuit?

Once you reach the age where you become eligible for Social Security benefits, you start receiving a monthly check that will help supplement your income. If you're involved in the lawsuit and a judgment goes against you, the Social Security benefits that you receive typically won't be compromised by your creditors. Typical Creditors If you're sued in a civil lawsuit by a creditor, the money from your Social Security benefits shouldn't be subject to attachment. For example, if you don't pay your credit card bill and the credit card company...

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What Happens When You Are Overdue on Payday Loans?

If you find yourself in need of money between pay periods, a payday loan could help you bridge the gap. Payday loans are high-interest loans that span a short period of time -- typically two weeks or less. You must pay off any payday loans you take out when you receive your next paycheck. Neglecting to pay your payday loan balance on time carries considerable financial consequences. Paying Late When you apply for a payday loan, most payday...

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How to Get Help To Pay Bills

There is financial help available for families and individuals to help buy food, pay overdue mortgages, housing costs, emergency home repair, utilities, transportation, medical expenses, student loan payments and old debt that is piling up. Instructions 1 The fist thing to do if you need help to pay a mortgage is to try to contact the lender before your payment becomes overdue or at least within a reasonable amount of time. A mortgage lender given a heads-up might defer a payment. 2 Housing assistance programs are available through...

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The Disadvantages of Refinancing

There are clear advantages to a mortgage refinance, such as the possibility of acquiring a lower interest rate and a lower monthly payment. But before contacting your mortgage lender and completing a home mortgage refinance application, it is wise to consider the possible disadvantages of a refinance. Qualifying for a New Mortgage Loan You can choose to refinance with your current lender or select a new lender for your mortgage loan. However,...

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What to Do When IRS Drafts Your Bank Account

Refuse to pay your federal income taxes and the IRS can obtain a court order to draft or levy funds from your bank account. A bank draft for unpaid taxes can cripple your personal finances, and these drafts can continue until the IRS recovers the owed funds. What is a Bank Levy? Not to be confused with tax liens, which place a claim on personal property such as a bank account, IRS tax levies involve the agency actually removing funds or seizing funds from your account to satisfy past due or unpaid tax bills. The IRS notifies your bank of...

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How to Manage and Pay an Orchard Bank Credit Card Bill Online

The Orchard Bank online website was created to help users manage their credit card information and pay their bills. The online bill-pay service uses state-of-the-art features to protect its online customers. The features include SSL, which guarantees that your information and connection are secure from outside viewing. It also uses encryption to make sure the information is not readable as it passes over the Internet. Using OrchardBank.com to access...

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Statute of Limitations for Debts on a Phone Bill

The statute of limitations for debts on a delinquent phone bill refers to the time limit that a creditor may file a lawsuit. Each state has its own time frame, ranging from 3 to 10 years for open account debt. Legal Judgments Damages may include extra charges for late fees, interest and collection costs. If a legal judgment is awarded against you for the nonpayment of your phone bill, the total damages, depending upon the state of your...

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Unsecured Credit Cards to Rebuild Bad Credit

Most consumers who have a credit card have an unsecured credit card. An unsecured credit card is one in which the lender does not require the borrower to provide a security interest, such as collateral or security deposit. People with bad credit usually have a much more difficult time of getting an unsecured card, though having such a card can help you increase your credit score. Unsecured Credit If you're like most Americans with credit...

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Will Fraud Alert Affect My Ability to Get Credit?

If you have reason to believe that you may be the victim of identity theft and you live in the U.S., you can place a fraud alert on your credit report via any of the three nationwide credit reporting agencies. Creditors who attempt to access your report will be informed that they must contact you to confirm your identity before extending credit. Types Two types of fraud alerts exist, as of January 2011. When you suspect fraud and call a credit reporting agency, an initial 90-day fraud alert appears on your credit report. At the end of those...

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What Will Debt Counseling Do?

Consumer credit counseling agencies help people find a way out of their overwhelming debt situations. Seek out agencies connected with the Association of Independent Consumer Credit Counseling Agencies or the National Federation for Credit Counseling for services, because counselors must be accredited and must offer service regardless of clients' ability to pay, among other reasons. These agencies take information about your income, expenses, debts...

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What Happens When You Borrow Money on Credit?

Remaining debt-free in today's society is almost impossible for most people. Homes, automobiles and other expensive items cost more than the typical person can afford without acquiring a loan. There are positive and negative consequences when you finance purchases. You can mitigate negative consequences by only borrowing what you need, and by paying your bills on time. Borrowing Money Affects Your Credit Report Lenders typically report your loans to the credit bureaus. Credit bureaus keep files on individuals, which provide information...

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Should I Pay Off My Credit Card Debt First or Save Money?

Rainy Days Happen. A savings account is useful when people are faced with an emergency, such as unemployment, unexpected car repairs or costly medical bills. Having money in savings in these circumstances helps people survive the crisis and keeps them from relying on credit cards to bail them out. Debt Accumulates Fast. Consumers pay interest on credit card debt and earn interest on their savings. However, these two types of interest don't come close to canceling each other out. Interest rates on credit cards are far higher than savings...

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How to Stop Wage Garnishing

Some creditors are relentless in their attempts to collect on an unpaid debt, and some pursue lawsuits against debtors in order to garnish their wages. Wage garnishments can severely impact your personal finances. If a sheriff presents your employer with wage garnishment papers, your employer has the obligation to deduct payments from your check. However, you can stop a wage garnishment. Instructions 1 Contact the creditor and discuss plans to pay off the debt in full. Write a check payable for the full balance owed, and then make a copy...

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How Can I Garnish Someone's Wages in the State of Texas?

Under Texas law, you can't garnish an individual's wages. The state makes exceptions for unpaid child support and student loan debts, but if you're suing someone over a credit card or medical bill, or a personal loan, you're out of luck. You do have two possible alternatives, however; you can garnish a bank account or other source of money, or go after earned wages through another state. Even then, circumstances may make it hard to collect. Instructions 1 Calculate the elapsed time of the debt. The Texas statute of limitations for debts...

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How Long Do Charge-Offs Stay on a Credit Report?

A charge-off occurs when a creditor, usually a credit card company, removes an unpaid debt from its accounting ledger. After charging off bad debts, a creditor has the option to write the debt off as a tax loss or sell the debt to a collection agency. Charged-off debts appear on your credit report and damage your credit rating. Time Frame The Fair Credit Reporting Act notes that charge-offs can remain a part of your credit file for seven...

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How to Clear Your Name After Identity Theft

Once an identity theft occurs, it can be difficult to pick up the pieces of your financial life. The resulting damage can affect your chances of getting credit, cost you more in interest rates and even cost you money directly. After you are the victim of an identity theft, take the necessary steps to build your reputation and good name back up again. While it may take time and effort, it is possible to get things back to normal. Instructions 1 Contact each of the three major credit bureaus to place a fraud alert on your credit reports. You...

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How to Divide Credit Card Debts in a Divorce in the State of Missouri

Dividing assets in a divorce can be complicated. Dividing debt can be just as complicated and sometimes even more unpleasant. Missouri is an "equitable distribution" state. In Missouri, the court attempts to distribute marital property in a manner that is fair and just. The court will try to determine who is responsible for the debt, including credit card debt. Credit card debt will be taken from the marital assets after they are divided. If the...

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How Much Credit Card Credit Should You Carry?

How much credit you should carry depends on how you use it. More Credit Means More Flexibility Many people use credit cards to pay for emergency car repairs, medical or veterinary treatment or any number of unplanned expenses. Even if you have an emergency fund for these events, it is often more convenient to pay with a credit card than to access your savings account. Less Credit Helps You Manage Debt Carrying a small...

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How to Budget for Debt Reduction

If you find yourself overwhelmed by the amount of debt you have, it may be time to start budgeting more closely so you can allocate more money toward debt reduction. Debt can be incredibly costly, with interest charges alone on a debt of $10,000 at 12 percent interest costing $100 per month. If you have the discipline to create a budget and stick to it until your debts are paid off, you will be rewarded with a surplus of income to put toward things that matter to you, like a retirement account or a special vacation. Instructions 1 Calculate...

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How to Protect Yourself From Wage Garnishment

Wage garnishment can put a huge dent in your finances, often making it difficult for you to get by and make ends meet. Many people often find their wages attached after failing to pay back a debt, when the attachment could have been avoided. Wage attachments can go beyond a deduction from your paycheck and may result in liens against your personal property until the debt is satisfied. There are ways you can protect yourself from a wage garnishment, but you must take action immediately. Instructions 1 Pay the debt off immediately. Coming...

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How Do I Properly Pay a Debt Collector?

Regardless of what type of debt you owe, if you neglect to make regular payments to your creditor, it has the right to sell the debt to a debt collector to make up for the loss. Debt collectors buy debts that creditors cannot collect and then try to collect the debts themselves. A debt collector has a variety of tools in its arsenal to convince you to pay, such as credit damage, the threat of a lawsuit and incessant phone calls. If you decide to...

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Will Debt Consolidation Programs Hurt My Credit Score?

Many consumers turn to debt consolidation programs after struggling with payments and drowning in debt. These consumers usually have a damaged credit score already, so getting help is the first priority, not saving the credit scores. If credit score is a concern for you, then it is best to carefully review each program and ask how the payments are reported to the credit agencies. Debt Consolidation Agencies Consolidation agents work to find...

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Maximum Garnishment of Wages

Wage garnishment is a process used by a creditor to collect on a debt. Once a court judgment is obtained, the creditor can go to court to obtain a wage assignment, or garnishment. A wage assignment summons is sent to your employer, who must complete the information and withhold the maximum amount of money allowed by law. This money is held until your next court appearance during which you can respond to the garnishment. Federal Law Wage garnishment regulations are contained in Title III of the Consumer Credit Protection Act and are administered...

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Pros & Cons of Low Interest Rates

When the economy stumbles, the government can use interest rates to spur growth. During a recession, the government may lower interest rates significantly to encourage businesses to borrow and consumers to spend more money. But lowering interest rates can have some negative consequences as well, including poor returns on savings. Easier Borrowing Lowering interest rates makes borrowing more affordable for both individuals and businesses....

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Is a Debt Negotiation Agreement Practical?

By negotiating the terms of your current debt agreements, you can save money and get out of debt quicker. Provided that you take the necessary precautions to ensure that your credit rating is not damaged in the process, a debt negotiation agreement is always a practical solution to help ease your financial burden. The Facts A debt negotiation agreement is a contract between an individual and a creditor in which the creditor agrees to modify...

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How Long Must You Wait After Bankruptcy Until You Can Get Credit?

It may be possible to get credit within just a few months after receiving a discharge of bankruptcy. No rules specifically exist to stop lenders from offering credit to bankruptcy filers. It is up to lenders to determine if you meet requirements to obtain credit. Bankruptcy does hurt a credit score, but it does not stop consumers or lenders from establishing new lines of credit. Qualifying for Credit To get credit, have steady employment....

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