Negative Effects of Settling Debt

If circumstances have made it impossible for you to keep up with your debt obligations, there are a number of options you can weigh. You might simply walk away from the situation and accept whatever fallout may come. You can file for bankruptcy. You can take a second or third job, applying every bit of your pay to your debts. Another option is to negotiate with your creditors to settle your debts for less than you owe. While debt settlement can provide...

Read More

Can a Creditor Send to Collection Agency If Disputed?

An original creditor, such as a bank or credit card company, can sell or assign a delinquent account to a collection agency -- even if the consumer disputes the accuracy of the account. However, there are provisions under federal law to challenge the account once a debt collector begins the collection process. Timeline Original creditors usually close accounts after they fall six months behind, although some lenders may take the action sooner. Creditors list a closed account as a "charge-off," which is a very negative credit event usually...

Read More

Debt Management Definition

Debt management is a term that applies to any act of trying to get your debt under control and become responsible for repaying your obligations. You can develop your own debt management plan, or you can hire a financial professional. Monthly Budget One of the ways to manage your debt is to create a monthly budget that allows you to compare your income to your bills. Prioritize your bills by due date, and tailor your spending to meet your...

Read More

How to Negotiate With a Credit Bureau

Credit bureaus are agencies that track and report consumer behavior. There are three major agencies: TransUnion, Experian and Equifax. It is the responsibility of these companies to accurately and fairly report all consumer transactions. These companies do make mistakes and can be influenced, however. But negotiating with a credit bureau takes some savvy. Instructions 1 Pull an undated copy of your credit report. Visit Annual Credit Report...

Read More

Can I Be Arrested for a Default on a Payday Loan?

Payday loans are short-term loans issued by private companies to individuals. The duration of the loan is usually short --- generally under two weeks --- with interest rates that are exceedingly high, sometimes approaching 400 percent annually. While a person who defaults on a payday loan may face higher interest rates and a slew of fines, he can't be arrested and put in jail. Features Typically, people who take out payday loans have the loan deposited in a checking or savings account. The person then agrees to pay back the loan by the...

Read More

How to Apply for Charitable Help

Just about everyone needs help at some point in life. All it takes is one major illness or losing a job to throw finances into chaos and leave a household in a state of distress. Fortunately, there are often one or more charitable organizations in the area that can offer temporary assistance while you get back on your feet. Here are some ways to go about finding the help you need. Instructions 1 Assess your current condition. This means taking a long hard look at what bills are currently due and how much money you have on hand. Make a list...

Read More

Advice and Help for Credit and Debt

The American society has been inundated with credit and debt instruments for so long that as of January 2010, Americans have approximately 1.2 billion bank and retailer issued credit cards. Many Americans are able to manage their debt in a responsible fashion; others, however, seem to be unable to handle credit and debt instruments responsibly. Create An Emergency Fund Emergencies are a major reason that credit cards are used. From unexpected...

Read More

Do Credit Card Companies Have a Right to Take Your Checks?

Credit card companies cannot arbitrarily take your paper paycheck but they can garnish your wages or bank account with a court order. Wage garnishment allows credit card companies to receive a percentage of your pay before the employer issues your paycheck. Bank garnishment freezes your checking account, allowing the credit card company to withdraw money for an unpaid credit card debt. Numerous steps are necessary by the card company before garnishment begins. Lawsuits The filing of a lawsuit is the first step leading to possible bank or...

Read More

Refinance Vs. Restructure Mortgage

Refinancing and restructuring are each popular options for dealing with a problematic mortgage that is creating debt payments borrowers can no longer make. Sometimes refinancing is used to get better mortgage terms, even though there is no danger of defaulting. If borrowers are struggling and must choose between the two, refinancing is typically a better option. But the choice depends on specific financial information, and can vary based on the borrower. Refinancing Refinancing replaces the first mortgage with a new mortgage. The old home...

Read More

How to Access Business Credit

When you start a new business, you may want to explore options for getting business credit. You can either use your own funds to start up and maintain your company or use "other people's money" to get things up and running. If you go the latter route, you will have to handle some preliminary details in order to access business credit. Instructions 1 Improve your own personal credit history and scores. When you start making plans to start a new business, it's important to take steps to boost your own individual credit scores. You can do this...

Read More

Government Approved Debt Management Plans

If you're in debt, you're not alone. The average credit-card carrying household carries $16,700 in debt. This kind of debt can be crippling. You feel trapped, unable to make headway or plan for the future. There are debt management programs that can help, but you have to be careful because there are a lot of scams out there, too. If you are considering bankruptcy, laws require you to work with a government-approved credit counselor first. A complete...

Read More

Can Bill Collectors Go Into a Bank Account?

Bill collectors can draw from a bank account if granted permission by a judge. The process is called bank garnishment, and it can occur after the debt collector wins a debt lawsuit. Credit card companies file lawsuits in small claims court to collect unpaid debts, and other types of creditors may file lawsuits as well. Judgments Debt collectors that win debt lawsuits receive monetary judgments signed by a judge. The legal order requires the person sued to pay a specific amount for the account balance, court fees and legal fees. Judgments...

Read More

Can a Durable Power of Attorney Pay Debts After the Death of a Person?

If you want your spouse, a relative or a close friend to handle your financial affairs if you become incapacitated, you must file a durable power of attorney giving him permission to do so. You can give rights to your durable power of attorney immediately or specify that he only has these rights if you become unable to handle your own affairs because of injury or illness. Durable Power of Attorney Ends at Death Nolo.com says that durable power of attorney ends when you die. Your durable power of attorney has the right to make financial...

Read More

Surviving Spouse & Credit Card Debts in New York State

The state of New York is not a community property state. That means assets and liabilities, such as credit card debts, are not shared jointly by the man and the wife in marriage. When either party in the marriage passes away, the surviving spouse is generally not held responsible for the decedent's remaining credit card debts. Joint Accounts If a husband and wife hold joint credit card accounts in New York, then the surviving spouse could be responsible for repaying all of that debt even after her husband dies. In some cases, even if the...

Read More

Should You Redo a Mortgage to Pay Off Credit Card Bills?

When credit card bills begin to stack up, some people consider borrowing money to consolidate the debt into a single monthly payment. One method of doing this is to refinance a mortgage and borrow extra money with which to pay off the credit card bills. While this strategy allows you to lower your overall monthly payments and consolidate your debt, you must make sure that you don't end up creating more financial problems in the end. Consolidation...

Read More

What Happens If You Cash a Check That Is a Fraud?

A check is considered fraudulent when the person who wrote it either intentionally falsified information on the document or else issued the check knowing it would not clear (for example, because the account has no money in it). Sometimes, the person who tries to cash a fraudulent check is not the person who wrote the check. In many cases, the holder of the check may have received it as payment for a good or service. If the person tries to cash the check, several outcomes may occur. The Check Goes Through In some instances, the vendor who...

Read More

Can You Get a New Job While Being Garnished?

A wage garnishment is a collection strategy that a creditor may use in most states after obtaining a judgment against you for an unpaid debt. This strategy involves directing your employer to withhold part of your earnings for payment against your judgment debt. Not only does a wage garnishment reduce your take-home pay, it may also affect your ability to find a new job. Judgment In most cases, a wage garnishment can only follow a civil judgment. Except for cases involving unpaid alimony, taxes or child support, creditors must file and...

Read More

How Can I Get Consolidation Loans Without Using My House?

A consolidation loan involves taking out one loan to pay off multiple loans. Homeowners often take out a home-equity loan to pay off debt. However, using your home as collateral is risky, as you could lose your home if you become unable to make payments on the loan. If you have bills that would like to consolidate but don't want to risk your home ownership, you have multiple options. Instructions 1 Take out an unsecured loan. You don't need...

Read More

About College Students Misusing Credit Cards

College offers great opportunity, including learning about new subjects, meeting friends, cooperating with gifted professors, completing internships and studying abroad. But the college experience isn't free; in fact, it can become quite expensive when tuition, books, housing, food, transportation and recreation are factored in. Some students may come to rely on credit cards to bridge the gap between expenses and financial resources. While learning...

Read More

How to Reduce Consumer Debt

Consumer debt from credit cards, installment loans and other types of financing can take a large percentage of your income each month. And if you owe a considerable sum on credit cards, the consequences can result in a lower credit rating. It isn't always easy to pay down or reduce consumer debt. High interest rates and insufficient income can lead to lingering debt. But there are ways to deal with consumer debt. Instructions 1 Pay for items with cash. Ban credit cards from your wallet and get into a routine of only carrying cash. Freeze...

Read More

How to Get a Free Copy of an Instant Credit Report

The Fair Credit Reporting Act entitles you to free copies of your credit report. The reports are available instantly through the Annual Credit Report website. The three major credit bureaus -- Experian, Equifax and TransUnion -- operate the website, according to the Federal Trade Commission. Other sites on the Internet also market free credit reports, but only Annual Credit Report is authorized by the U.S. government to offer credit reports that are completely free. Instructions 1 Navigate to Annual Credit Report. Enter your state on the...

Read More

How Does a Debt Collector Go About Collecting Money?

Collection Agencies A debt collector is employed by a collection agency. This type of business specializes in working with defaulting debtors to achieve a repayment of an entire outstanding debt or at least a partial amount. The collection agency receives a percentage of the collected funds in payment for their services. The initial contact a debt collector will make with a debtor is a dunning letter. The is essentially a bill that details...

Read More

Is Debt Settlement Legal?

No one wants to count pennies and wonder where his next dollar is coming from. If you are severely in debt and in need of debt settlement, you can legally settle outstanding debt---as long as your creditor is willing to accept a debt settlement offer. There is no law that requires a creditor to accept a debt settlement offer. Identification Debt settlement affords a consumer a legal option for repaying outstanding debt at a lesser value....

Read More

Responsibility for Unsecured Debt Upon Death

Over the next 50 years, trillions of dollars will be inherited by baby boomers and their children. However, according to Liz Pullman Weston of MSN, Money Central, a good portion of these inheritances might be eaten up by medical bills, inadequate insurance, taxes and debts. Unsecured debt after death is a complicated issue. State laws and the type of debt play a large role in how unsecured debts are handled after death of the account holder. ...

Read More

Debt Settlement Pitfalls

When faced with credit card balances and interest fees that are spiraling out of control, you may be inclined to pay attention to the television commercials that offer to help you reduce your debt by enrolling in their debt settlement program. These firms negotiate lower payoffs on your credit card accounts. In many cases, the programs do succeed in obtaining a favorable settlement on your behalf, but often with consequences that are not as desirable. Program Costs Debt negotiation groups help you obtain settlements on your credit card...

Read More

Can Home Foreclosure Affect Social Security Income?

People normally cannot afford to buy a home outright, so they go to mortgage lenders, take out loans and use the loan funds to purchase the home. They then pay the mortgage lender back the amount of the loan, plus interest. Sometimes homeowners are not able to meet the terms of their loan agreements, however. Homeowners in this predicament often are Social Security recipients, which raises the issue of the impact of foreclosure on these benefits....

Read More

Can You Garnish a Joint Account in Florida?

When a creditor sues a borrower and secures a court-ordered judgment, the creditor may collect its funds by garnishing the borrower's bank account. However, several factors affect whether a creditor is allowed to garnish a joint bank account. In Florida, while asset-protection laws recognize the theory of tenancy by the entirety, the delinquent borrower should contact an attorney to determine the legality of the lender's threatened garnishment. ...

Read More

How to Donate a Repairable Car in Minnesota

If you have a car that is in need of a little work in Minnesota, you may not be able to get much for it if you try to trade it on a new car or sell it on your own. Instead of taking a fraction of its worth, you can instead donate your car to a charitable organization in Minnesota. While not all charities accept cars that are not in top condition, you will find some organizations that do take cars that are in need of repair. Instructions 1 Download and complete the duplicate title form from the Minnesota Department of Public Safety website...

Read More

How to Get a Credit Card Company to Forgive Debt

Credit card companies realize that members often face drastic changes in their circumstances, which cause them to fall behind on their payments. Others may be unable to continue make any payments at all. If you find yourself in such a position, don't give up. There's hope. Fortunately, credit card companies are often willing to settle, or forgive, a portion of your debt. The good news is that you don't have to pay hefty fees for a service to handle...

Read More

Credit Report Safety

In the 21st century, your credit report has a major affect on your financial life. It naturally affects your ability to get credit---the original purpose. In addition, prospective employers, landlords and insurance companies may also check your credit report to get an idea of your level of responsibility and how you handle obligations. Guarding your credit report can be as important to your well-being as guarding your home valuables. Credit Card...

Read More

How to Fix Your Own Credit With Do it Yourself Credit Repair Counseling

Many companies advertise they can repair an individual's credit for a fee, but the reality is, anyone can take steps to repair his or her own credit for much less and without the risk of scam. According to the Federal Trade Commission, no one can legally remove accurate and timely negative information from a credit report, but it is possible to remove inaccurate information and to take steps to improve creditworthiness. However, it takes time, effort,...

Read More

Does a Bankruptcy Keep Me From Working for a Bank?

For many whose debts are too much and too deep to pay, bankruptcy is a viable option to getting started back on the path to a clean credit history. However, filing for bankruptcy has its drawbacks, one of which can affect your employability. Seeking employment at financial institutions, such as banks, can be challenging and, in some cases, tougher because bankrupt individuals must work with money, creating the perception of high risk by these institutions. The Answer If you file bankruptcy, you are not automatically precluded from working...

Read More

A Creditor Is Not Responding to a Debt Settlement Letter

Escaping the crushing weight of debt can be a challenge that requires planning and organization. One option is attempting to settle your debts with your creditors by negotiating new terms. While there is no guarantee that a creditor will be receptive to a settlement proposal, nothing prevents you from trying. Requirements There is no legal requirement that your creditors renegotiate the terms of your debt or enter into a debt settlement agreement. Your ability to settle your debt is based entirely on you and your creditor's willingness...

Read More

Debt Cures They Don't Want You to Know About

An educated consumer in financial trouble might be one of a lender's worst nightmares, especially when it comes to dealing with collection agencies. With a little research and willingness, even the most cash-challenged debtor can find alternative ways to handle debt and avoid nasty consequences such as lawsuits and wage garnishments. Credit Counseling Credit counseling is one of the debt cures they don't want you to know about. It basically allows a representative of a firm to negotiate on behalf of a consumer and get lowered interest rates,...

Read More

Tips & Advice on Debt Consolidation

Debt is a fearsome presence in many people's lives, especially in a tough economy. As creditors tighten the noose by charging higher interest rates and ramping up minimum payments, it becomes more difficult to get out of debt. For many, debt consolidation is a real solution that can help them pay off debt faster by lowering their payments. There are a few things to keep in mind when considering debt consolidation. Definition Debt consolidation...

Read More

What Is a Certificate of Debt?

A certificate of debt, also known as a bond, is a written promise issued by a government or company in order to raise money. It states the duration of the loan, the amount of principal and the fixed interest rate. Types Whether they are issued by companies, or by local or national governments, all bonds are classified by the length of time before maturity. Those maturing in less than a year are known as bills, those maturing in one to 10...

Read More

Credit Card vs. Fixed Interest Loan Payments

Both credit cards and fixed interest loan payments can be used to pay down debt, but there is a substantive difference between the two. With credit cards, the terms and agreements can change from time to time; fixed interest loan payments don't change during the life of the loan. In pursuing your financial goals, you can benefit by comparing the two to see which is the most cost-effective. Interest Rate If you have a credit card, your interest rate can change at any ,even if you have a fixed rate. The credit card company must notify you...

Read More