How to Set Up a Payment Plan With a Debt Collector

A debt collector knows you wouldn't be speaking to them if you could simply pay off your debt. They're usually willing to set up a payment plan to lower your monthly payments or forgive part of your debt because they know they could risk getting even less if you file bankruptcy. If you offer enough, the collector might be willing to wipe your slate clean and withdraw negative information they've put on your credit report. Though settling a debt through...

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How to Reduce a Home Equity Line of Credit

Home equity lines of credit can be used like credit cards. Credit is available when you need it -- but the easy availability can lead to excessive spending. The Federal Trade Commission reports that you should use home equity lines only for really important purposes, such as college tuition for your children or emergency medical expenses for which you are uninsured. Instructions 1 Review the credit limit on your home equity line by checking your statement after it arrives in the mail. Or access your statement from the lender's website. ...

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How to Use a Line of Credit to Pay Off Your Mortgage

Using a line of credit to pay off your mortgage works like any other cross-application of credit. Depending on your lender, you can set up a direct transfer of balance or get funded and pay off the mortgage yourself. Instructions 1 Confirm that the terms of your line of credit are advantageous in comparison to the terms of your mortgage. Consider most seriously interest rates and term of payment. In many cases, the line of credit terms will be a much worse deal than your mortgage. 2 Ask the lender for your line of credit if they arrange...

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A Personal Loan With a Bad Credit History

When a person takes out a loan, the lender will want some assurance the person will be paying him back. This is because, if the borrower does not pay the lender back, then the lender may lose money on the transaction. This can complicate taking out a personal loan for a person with a bad credit history -- a person who has a history of not paying loans back on time. Bad Credit History There term "bad credit" is relative. Credit is usually measured by credit score, a numerical grade issued by credit reporting agencies to borrowers that indicates...

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How to Reduce Credit Card Debt Responsibly

Smart, responsible decisions about paying credit cards can result in thousands of dollars in savings over a lifetime. Making only the minimum payment on credit cards can lead to a lifetime of debt. For example, the University of Illinois reports that paying $50 a month on a $3,000 balance at 18.9 percent interest would require you to make payments for 15 years and six months, with $6,279.85 in finance charges. But increasing the payment by just $10...

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Debt Relief & Cures

When you're in debt, you may feel like digging yourself out is an impossible task. However, there are several methods for eliminating debt -- which method you choose depends largely on how much debt you have and how you have been able to handle it up to this point. No matter which debt elimination method you choose, you must be completely committed to keeping your debt paid off to avoid ending up in the same situation down the road. Debt Consolidation...

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How to Fight Old Debt Recovery

Debt collectors may attempt to collect on a debt regardless of how old it is. Because of this, it is possible to receive collection calls on a debt that is ten or even fifteen years old. Although debt collectors may attempt to recover a debt at any time, you may not still be legally liable for the amount they say you owe. It is important that you fight old debt recovery efforts rather than ignore them lest you be sued or suffer damage to your credit history. Instructions 1 Call your state attorney general's office and ask what the statute...

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Can Bank Accounts Be Frozen Over Medical Bills?

Medical bills are an unsecured debt, just like credit cards or personal loans. If you don't pay them, or attempt to work out payment terms with the person or organization that you owe the money to, they will probably turn your account over to a debt collector. Debt collectors typically follow a process to give them the best chance to collect the debt, which may eventually end with frozen bank accounts. In House Collections The collections process with credit card and other debt starts with letters and phone calls from the collections department...

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Do You Have to Put All Unsecured Debt Into Debt Management or Can You Choose?

Deciding to participate in a credit counselor's debt management plan is a prudent step in the right direction toward financial stability. Although it's tempting to consider keeping one credit card to use in case of emergencies, the likelihood of the agency approving that course of action is slim. However, you may be allowed to keep a corporate card if losing the card materially affects your ability to work. The Debt Management Plan The debt...

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How Long Does it Take to Switch My Student Loan Payments From Standard to Income Contingent?

One way to reduce the monthly payment on your student loans is to switch to a different repayment plan. The income contingent repayment plan usually caps your monthly payments at 20 percent of your discretionary income, based on last year's tax return. If your family is close to the poverty level, you will have little discretionary income and very low payments. However, the process of switching repayment plans is not instant. Timeframe Most loan servicing companies will take less than two months to switch you from a standard repayment plan...

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Tips to Get Out of Debt Fast

Debt can easily and quickly overpower a family's budget. While it is easy to get into debt, it can be hard to get out of it. With a combination of discipline, budgeting and planning, a family can get out of debt and get back on the road to financial stability. Not every method will work for every family. Each family should tailor debt reduction tips to fit their financial needs. Reduce Expenses The first and most important step in the debt...

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What Effect Does Being a Cosigner Have on My Credit Report?

In some situations, a cosigner may be required in order to approve an application for a loan or line of credit. You may need a cosigner if you do not have established credit that would allow you to qualify for a loan. You may also be asked to act as a cosigner for someone else if you have good credit. Either way, being a cosigner can have both positive and negative effects on your credit. Negative Credit Marks One major factor in making the...

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How to Negotiate a Bank Payoff

A good step toward becoming debt-free is to reduce your interest payments by negotiating the payoff of your bank accounts. Perhaps you are trying to pay off your mortgage or car or other lines of credit. Maybe you are receiving a lump sum payment to satisfy this debt, losing a job or will be experiencing a reduction in income or facing a divorce and want to settle your bank account as a means of reducing your debt load. You can negotiate with your...

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How to Remove Negative Information From a Credit Report

If you have negative information on your credit report, you know that it makes it harder to get a mortgage or other types of loans. You will probably have to pay higher interest costs on any money you borrow, including on credit cards. Don't let negative information cost you money. Identify that negative information, get if off your report and start replacing it with favorable information so you can enjoy the advantages of a good credit report. ...

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How to Pay Off Bills and Credit Card Debt

A large amount of debt and overdue bills can be overwhelming, especially if you are struggling to make minimum payments each month. However it is possible to pay off your bills and your credit card debt. It is essential to create a plan that will pay off your debts and follow a budget if you want to succeed. The budget will help you find extra money and track your expenses. The only way to stop the debt cycle is to be in control of your money. ...

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Common Debt Traps

Every day, people are bombarded by messages from banks, consultants and private businesses promising to help reduce their debt. While these promises may sound attractive on the surface, many are indeed debt traps that can drag your credit rating down and add more debt to your financial burden. Other debt traps result from poor choices people make for themselves. Know how to avoid debt traps by being an informed consumer. Low/No Interest Rate...

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How to Write a Free Debt Settlement Letter Sample

Writing a debt settlement letter can free you of your debt situation and correct your credit rating when negotiated properly. These free ideas will help you write a proper debt settlement letter sample. Instructions 1 Write in your name, address, and zip code followed by today's date at the top. 2 Put the collectors name, address, and zip below followed by your account number for reference. 3 Address the letter to the person...

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Am I Responsible for Marital Debts That I Am Not the Co-Signer on in Colorado?

Colorado's statutes include an antiquated law, on the books since the late 19th century, that makes a husband responsible for his wife's separate premarital debt once they purchase property together. But according to Andrew Oh-Willeke, a Denver attorney, the law has never been called into play, and one spouse is not usually liable for the separate debts of the other if he didn't co-sign for them. Loopholes exist, however. Creditors If your...

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Do You Have to Pay Back a Charge-off From Creditors?

If you have an account that's been charged-off, it doesn't mean that you don't owe the debt; it only means that the lender now considers your loan a business expense instead of an asset. Charged-off accounts are usually turned over to collection agencies, which then will contact you repeatedly for repayment. Having a permanent charged-off account damages credit severely, so making good will keep your score respectable. Instructions 1 Call the lender or collector and ask for a debt validation letter. The debt validation letter will contain...

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The Best Credit Repair

One mishap can destroy your credit rating and stop you from getting a mortgage, credit card or auto loan. But there are ways to quickly repair your credit and achieve an A-plus credit rating. With any credit repair strategy, patience and effort are key to success. You can't add 200 points to your credit score in days or weeks, but you can reverse a bad rating in as little as six months to one year. Don't Ignore Reporting Errors One mistake on your credit report can decrease your personal rating, and some lenders won't approve you for a...

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How to Calculate an Outstanding Balance

Calculating the outstanding balance on a loan is necessary for those who are trying to understand how much more principal they need to pay on the loan before it is paid off. When calculating the outstanding balance, you do not need to factor in the amount of interest paid or the amount of interest that will be paid in the future. The outstanding balance refers to principal only. Instructions 1 Write down the initial amount of the loan. For...

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Wisconsin Statute of Limitations for Debt Collection

Collection agencies sometimes buy old debts for a fraction of their value in hope that they can persuade debtors to pay, or settle, the account. However, if a debt is past the statute of limitations, and the collector tries to file a lawsuit, you can ask the judge to dismiss the case. Types Wisconsin law sets the statute of limitations on collecting most consumer debt, such as credit cards and written contracts, at six years. If a creditor...

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The Way to Be Debt Free

Consumers struggling to make bill payments, find a home loan or those facing foreclosure can feel as if they will never be able to get free from the crushing weight of debt payments. While getting out of debt requires planning and discipline, there is nothing that prevents you from developing your own debt payment plan and sticking to it. Finances To become debt-free, you must first have a good understanding of your financial position. You...

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What Is the Best Way to Eliminate Debt?

Dealing with large amounts of debt can be stressful. Debt takes a toll not only on your consumer credit file, but also on your wallet. You lose money every time the majority of your minimum monthly payment goes toward interest instead of principle. When eliminating debt, start with a plan of action and continue your efforts until you are debt free. Interest Rates One of the best ways to eliminate debt is to pay off higher interest credit accounts first. Financial expert Suze Orman suggests putting your credit accounts in descending order...

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How to Stop Junk Mail and Credit Card Offers

Some companies sell consumer mailing lists to advertisers, so your address likely circulates among businesses many times over. That's why getting your name off mailing lists to stop junk mail and credit card offers may take significant effort. Magazine subscriptions, club memberships and phone book listings can trigger a company mailing of information you don't want. Therefore, you need to use several sources to stop junk mail and credit card offers....

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How Debt Reduction Companies Work

The Basics Debt reduction companies are firms that specialize in helping clients lower their debts without bankruptcy. These businesses, also known as credit counselors, work closely with their clients to help them develop new strategies for managing their debts. They aid them in creating a new budget they can live by, and also work directly with their creditors to reach an amicable resolution for debt repayment that does not require bankruptcy. The Process A representative of a debt reduction company calls each of the creditors on...

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When Is the Best Time to Check My Credit Report?

Regularly monitoring your credit report can help you to detect potential fraud, identity theft and errors that could harm your credit. To avoid delays and disappointments, check your credit right before you make a major purchase, try to rent an apartment, or apply for a job. Don't worry: You won't damage your credit score by checking your own credit. Checking Your Credit Report Under the Fair Credit Reporting Act, you have the right to check your credit and other specialty consumer reports (such as tenant screening or comprehensive background...

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How to Opt Out of Preapproved Credit

Creditors can purchase lists of consumer information that meet a certain credit criteria from the credit bureaus. The creditor will use these lists to contact the people with offers of preapproved credit. While some people may find this of value, others find this an invasion of their privacy and would prefer their names not be provided to any creditor. The Fair Credit Reporting Act (FCRA) gives you the legal right to opt out. In doing so, the law...

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Consumer Debt Vs. Spending

The overall health of the economy depends on many factors. These include government spending, inflation, interest rates and export levels. Consumer spending and borrowing trends are also among the most important economic indicators as they represent billions of dollars and give a window into the economic behavior of millions of individuals. Definitions Consumer spending represents the money that individuals spend on personal needs. It doesn't include government spending, taxes individuals pay, investments or business expenditures. Consumer...

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How to Cancel Credit Cards to Reduce the Debt-to-Income Ratio

Your "debt-to-income ratio" is a numerical description of how easy it is for you to pay off your debt. Reducing your overall amount of debt by canceling and paying off credit cards will improve your DTI ratio and help to improve your credit score. Instructions 1 Examine your most recent statements from each credit card. Write down your total amount of debt from each card, along with the interest rate and credit limit. 2 Add up your monthly...

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Can You Pay Off a Credit Card With Another Credit Card for a Cheaper Interest Rate?

If you have a good credit score, you likely qualify for low interest rate credit cards. After getting a new, lower interest credit card, you can transfer the balance from your higher interest credit card to your new card. About Interest When it comes to debt, the higher the interest rate, the more you pay over time. High interest also means it takes longer to pay down the principal balance of your credit card debt because much of your payment...

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What Happens If You Do Not Pay Credit Cards in California?

Contact creditors if you are unable to make your monthly credit card payment. Ideally, you should contact the company before you miss a payment. Generally, credit card companies will work with you to create a temporary payment plan. Unpaid debt will follow you, and creditors can sue, resulting in wage or bank garnishment and other collection options. California is a community property state, and your spouse may be equally liable for the debt. ...

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Letters to Remove Collection Accounts From Credit Reports

Writing letters to the credit bureaus can help remove collection accounts from your credit report -- but only in certain circumstances. The Fair Credit Reporting Act -- a federal law -- offers strict guidelines about the reporting of consumer debt, and the credit bureaus are expected to follow the rules to maintain the integrity of the credit reporting system. Pay-for-Delete The Bankrate website reports that you may be able to negotiate a "pay-for-delete" arrangement by writing a letter. Pay for delete allows you to have a charged-off or...

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What to Do When Parents Die With Unsecured Credit Card Debt in Tennessee?

In Tennessee, a probate court case must be opened when a person passes away, so that the decedent's estate can be settled and all debts paid. Tennessee probate cases take an average of about one year to settle in full, and a number of specific steps must be taken during that time frame. A decedent's children and heirs are not responsible for his debt, his estate pays off all outstanding debts instead. Open a Probate Case Open a probate case with the appropriate court in the county where your parents lived or owned their home. Probate processes...

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How to Obtain Grants for Renewable Energy

Grants for renewable energy are becoming more popular as individuals and organizations work to make positive changes for our planet. If you're interested in getting a grant for renewable energy, there are many ways in which you can receive a grant to accomplish your wishes. Below, you will find some more information on how to obtain grants for renewable energy. Instructions 1 Ask Your electric company. In some places, electric companies...

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How to Get Out of Medicaid Debt

If you are the heir to a family member who died or is expected to die owing money to Medicaid, you should understand that the estate may be subject to attempts by the state to recover its costs. This is because under the Tax Equity and Financial Responsibility Act of 1982, Medicaid becomes the first lienholder on many assets that otherwise would pass to heirs unencumbered. Each state runs its own Medicaid program, so state laws vary on specific Medicaid...

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What Is Meant by the Phrase "Consolidating Credit Card Debt"?

You may have heard a lot of promises from companies offering to consolidate your credit card balances. While they offer rock-bottom interest rates and slashed payback balances, in reality you may not qualify for those rates and the consequences of taking on consolidation may not be worth the initial advantages. Make an educated decision about whether to consolidate so that you are fully committed to your plan to get out of debt. Consolidation...

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Can Companies Buy Old Debts to Collect on Them?

Some companies specialize in buying old consumer debts to profit off debts they manage to collect. Some of these debt buyers use illegal practices to make their money. Your liability for paying an old debt is partly linked to how you respond to a debt collector. You can help protect yourself from unfair collection practices by contacting your state Attorney General's Office for information on debt-collection practices in your state. Statute of...

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How to Rebuild Credit

Your credit score can tank in a matter of months. While it is very easy for your credit score to go down, rebuilding credit can take years of hard work. You have to prove that you can handle credit responsibly and pay on time. Follow these steps to learn how to rebuild your credit. Instructions Rebuilding Your Credit 1 First, get new credit. Although it may be hard to get approved by the major financial institutions, you may have luck with...

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