Can I Get Credit After Completing a Consumer Proposal?

A consumer proposal is an agreement between creditors and the debtor to consolidate loans into a payment plan that lasts five years or less--usually resulting in repaying less than what the debtor owed. It is possible to get credit after a consumer proposal. Time Frame Consumer proposals harm your credit rating a little less than a bankruptcy. Also, they only stay on your credit report for three years. After this three years, creditors will...

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Statute of Limitations to Collect Payday Loans

Payday loans are a type of short-term debt that could help you come up with cash on a moment's notice. In an emergency, these loans can be very helpful. If you cannot afford to repay them, the lender can take collection actions against you. However, the lender has to act within the statute of limitations when collecting this debt. Payday Loans Payday loans are a type of short-term loan that involves borrowing against your future earnings. With this type of loan, you typically write a check for the amount you are borrowing and the finance...

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Guide to Credit Debt Consolidation

Consolidating credit and debt provides a means of simplifying monthly finances and acquiring a lower interest rate on debts. Lower rates allow you to pay off the balance quicker, because you'll spend less money on interest. There are several ways to consolidate debt, and you don't have to own a home to take advantage of consolidation methods. Credit Card Options Assume you have three credit cards with interest rates of 20 percent or higher. This results in three monthly payments, and your minimum payments probably are expensive because...

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Consumer Credit Laws in Texas

According to a 2010 article from MSN Money, How Does Your Debt Compare?, Americans spend 43 percent more than they actually earn and carry at least $1,000 in credit card debt on average. In Texas, the Office of Consumer Credit Commissioner (OCCC) regulates credit card practices and provides information to citizens on consumer credit. Usury Laws Usury is defined as excessive interest rates for loans and credit card instruments charged by a...

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Can a Lien Be Put on Your Property for Credit Debt?

The ramifications of defaulting on credit card debt and other credit accounts can be significant. Creditors who follow the correct procedures can put a lien on your property, garnish your wages, take money from your bank account and seize any personal property that is not exempt. Each state has specific guidelines and timelines that creditors must follow to collect credit debt. Judgments The lender that initially issued the credit account or a third-party collection agency can file a lawsuit against you for unpaid debt on the account....

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Is it Better to Pay Off a High-Interest Loan Before a Low-Interest Loan?

When paying off your debt, there are only a few scenarios in which it is better to pay off a low-interest loan before a high-interest loan. Most of the time, it is a good idea to pay off your high-interest loans before your low-interest loans due to the amount of money you save in interest payments. Which loans you pay off first depend on the amount of the loan and the loan's terms and conditions. Understanding Interest Payments The interest you pay on a loan is compound interest. This means the lender applies the interest rate on your...

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How to Review Your Debt Management Plan

Debt management plans come in all shapes and sizes. Some are Spartan, listing tenets such as allocating every penny of your disposable income to hacking away at your credit card debt. Others offer some degree of flexibility, allowing you to splurge on a vacation to Europe before your car is paid. Though some plans get rid of your debt faster than others, you must choose the plan that fits best with your lifestyle and income. Reviewing your debt management plan ensures that your financial decisions are best for your unique financial situation. ...

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How Do I Deal With Paying My Debt?

If left unchecked, debt can grow old with you. Financial restrictions caused by debt often lead to increased tension and anxiety. However, the negative impacts of debt can be overcome. Creating a plan for paying your outstanding balances in full is the best way to deal with your debt. Seeing the light at the end of the tunnel releases you from uncertainty over your financial future and helps you practice better spending habits. Debt repayment strategies...

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Does the Bank Have the Right to Make Me Pay My Long-Term Loan in Full?

Failing to make timely payments on a long-term loan -- including a mortgage, student loan or deed of trust -- can cause your bank to write the debt off. Your bank may demand payment in full for the debt before writing the loan off as a bad debt. This is well within your lender's rights though is often not exactly what your lender is looking for in terms of a settling your delinquency. Demanding Payment in Full Your bank may demand payment in full for a long-term loan, including a mortgage, if the loan is about to default or if the bank...

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Pros & Cons of a Credit Freeze

According to Bankrate, it is possible for anyone to ask the credit bureaus to freeze his or her credit report. This means that your report can't be accessed by third parties without your consent, according to the Virgina government website. While a credit freeze does have its pros, it also comes with a list of cons--some of which can be very frustrating and time-consuming to a credit-active consumer. These cons may be less so for consumers who choose...

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Tips for Building a Credit History

Your credit score determines whether you will be approved to borrow money, and it determines the interest rate you are charged for borrowing money. Credit scores range from 300 to 850, with higher scores being preferable to lower scores. The majority of Americans have scores in the 600s or 700s, according to WhatsMyScore.org. The difference between a low credit score and a high credit score can mean many thousands of dollars over the course of your lifetime, so it is important to understand how to build a credit history properly to achieve a high...

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Is Settling Credit Cards Bad for Credit?

Credit reports can be considered adult report cards. Loans, employment and rental agreements are based on your credit score. The ability to pay off a credit card shows your reliability to pay back other loans. Sometimes settling a credit card debt is the only alternative. Before you settle a credit card you should understand the effect it could have on your credit standing. Facts Having a account as "Settled" or "Settled was 30 Days or...

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Can I Write a Letter to Creditors After a Judgment Has Been Made?

If you don't pay a debt, your creditor can go to court and ask for entry of a judgment in a certain amount. Once the judgment is entered, the creditor has the right to use various methods to get its money back -- for example, by taking the funds in your bank accounts or retaining a portion of your wages. Even after the judgment, you can still write a letter to your creditor to negotiate. Process Before you start negotiating with your creditor,...

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Nonprofit Credit Repair

Individuals who are deep in debt or have less-than-perfect to poor credit scores often seek out professional advice from nonprofit credit repair agencies. These organizations provide debt repayment plans, budgeting help, credit raising advice and creditor mediation services to financially embattled persons, often at low cost. While several legitimate credit counselors exist, the Federal Trade Commission says many so-called credit repair agencies engage in deceptive practices and outright scams. When Credit Repair is Required Individuals...

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What Debts Can Be Reported to a Credit Bureau

Credit bureaus are agencies that monitor someone's overall credit history. Banks, creditors or lenders can report a delinquent debt to a credit bureau for most types of debts, including credit cards, mortgage or rent payments or a variety of other loans. When a delinquent debt is reported to a credit bureau, the person who owes that debt takes a negative hit on his credit report. He can fix the negative mark by paying off the debt or becoming current...

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What Is a Secured or Unsecured Loan?

A loan is an amount of money you receive from another person with the understanding that you will pay the money back. You can receive a loan from a bank, a corporation or another human being. Secured loans and unsecured loans are two basic types of loans; they are different in that the lender has different remedies available if you miss payments. Unsecured Loans An unsecured loan is a loan that a lender gives you without asking for anything in return except your promise to repay. Debt you incur by using your credit card is unsecured debt....

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How to Repair Horrible Credit

Credit history has a direct affect on your credit score, says Entrepreneur Magazine in an article about personal finance. Employers, insurance companies and lenders use credit scores to evaluate application materials. Even if you have horrible credit, there are steps you can take to repair it. Cleaning up credit won't happen over night. However, making a few changes will repair horrible credit over time. Instructions 1 Request a copy of...

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How to Reduce Payment Letters to Creditors

Struggling to keep up with payments on debt is a common problem in today's economic environment. Fortunately, creditors will reduce payments in certain circumstances. It is best for a debtor to put the request in writing, explain the situation that warrants a reduction in payment, outline a proposed payment plan and provide any other information that is useful to the creditor in making a decision. Creditors will sometimes take reduced payments if they are confident you will default on the debt anyway. Instructions 1 Send a letter to the...

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Debt Relief Guide and Information

While getting into debt can seem devastating, there are options available to help you through the difficult times. Although there are legitimate companies that will assist you in getting out of debt, there are also bogus businesses trying to make money from your misfortune. Being cautious when dealing with any company is in your best interest. Fees When it comes to finding a way to get relief from your debt, it's important to do your homework....

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Can You Divorce Your Wife to Save Her From Filing for Bankruptcy?

Debts that one or both spouses can't repay create stress in a relationship, and divorce and bankruptcy may be inevitable conclusion. Whether it is better to file for bankruptcy before or after divorce depends on your personal financial circumstances, the laws of your state and the other issues looming in your divorce. Divorcing your wife may not save her from filing bankruptcy, depending on the disposition of your marital debts. Jointly Held...

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Will a Good Income Get Me a Bank Credit Card?

When you apply for a bank credit card, you are essentially applying for a loan with a flexible, also called revolving, line of debt. To qualify for this loan, you have to prove to the bank that you are a low-risk borrower. Though banks use different methods to determine how credit-worthy you are as a borrower, most will start with your income as a primary factor. Income When you apply for a bank credit card, the bank typically asks you to...

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The Dangers of Excessive Debt

Debt impacts individuals' lives in a myriad of ways and can ruin relationships just as fast as credit ratings. Excessive or unmanageable debt can claim your earnings, ruin your credit score, prevent you from accessing money in the future and potentially result in foreclosure or bankruptcy. Furthermore, debt impacts individuals' emotional health and is a leading cause of divorce. Fees and Your Credit Score Excessive debt can grow through late...

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Credit Card Limitations

Credit cards give consumers the flexibility to make purchases with money they don't have. Some credit card companies even offer cards with promotional periods of zero percent interest, which can allow you to put off paying for purchases for several months at no extra cost. Despite the convenience they offer, credit cards are subject to several important limitations that can reduce flexibility and increase costs. Credit Limits Credit cards have maximum balance limits that govern how much you spend. The balance limit on your credit card can...

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Why You Should Only Carry One Credit Card

You would be surprised how much money, hassle and worry you save yourself with a one-credit card rule. More cards add themselves to your wallet every day, from bank to store loyalty program cards, and cutting back can make your life easier to manage. Curbs Spending The more cards you have with you, the easier overspending becomes. Buying an expensive item you don't need is sometimes more" acceptable" when you have several credit cards to...

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Negatives of Settling Debt

Borrowers who find themselves unable to meet their obligations may consider settling their debts with their lenders. Debt settlement is a process whereby you negotiate with your creditors an amount to pay them to satisfy the loan. The amount that you are able to negotiate depends on your lender, but can be as little as 50 percent of the amount you owe. Settlement is generally an option for unsecured debt, such as credit cards and personal loans,...

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What Does DFD Mean on a Credit Report?

Credit reports have a number of notations with each account. Some notations are completely written out, but others are left as abbreviations, and you might not be able to tell what the credit report actually means. These abbreviations are entered by the credit reporting agency or the creditor itself, depending on the credit report that you are reading. Credit Report Your credit report is a collection of information supplied by your creditors, collection agencies and public records to credit reporting agencies. These reporting agencies use...

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Spouse Relief From Student Loans

Student loan debt is almost a rite of passage in America. With increased college enrollment and skyrocketing higher education costs, many students come out of undergraduate and graduate programs with overwhelming debt. At times, lenders will try to pass off these debts, if in default, to spouses and family members. There are clear restrictions, and you should take swift action if you are a victim of harassment. Obligated Parties Before making any moves, double-check all loan paperwork to determine the obligated parties on the promissory...

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How Do I Make a Payment on the Salute Credit Card?

Salute credit cards are unsecured accounts with the capability for cash advance. These cards historically were designed for borrowers with poor or no credit payment history. As of August 2010, however, Salute is no longer issuing new credit accounts. However, the company obviously is still accepting payments on open accounts. If you have an open Salute card with a balance, you have several payment options: pay by mail with a statement, pay by phone...

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How to Stop Creditors Without a Lawyer

Stopping creditors from calling and sending threatening letters is not as complicated as the credit repair lawyers and other fee-based businesses would have you believe. There are simple ways to stop creditors without the use of a lawyer. These steps are things you can do on your own, without spending large sums. Instructions The Concept Of Collections 1 Do not talk to creditors via the telephone. They are using scare tactics and bullying to get you to pay them. Tempers and issues can best be handled via the mail. 2 Understand how the...

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Minnesota Statute of Limitations on Wage Garnishment

When a debtor fails to pay his debt obligations, creditors can seek a garnishment judgment against him. Once a creditor obtains a garnishment judgment, the creditor has a prescribed period of time within which to collect the debt. There is a limit on the amount a creditor can collect during a work week or pay period. Regarding limits on the amount a creditor can garnish, Minnesota's laws are more favorable to debtors than Title III of the Consumer...

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What Does a Credit Card Company Do If a Bill Is Not Paid?

Credit card companies have specific policies and procedures for customers whose bills are past due, ranging from late fees to wage garnishment. Late Fees The first thing credit card companies will do is apply a late fee to the account. Late fees are levied once per billing cycle. Limit Freeze Some credit card companies will freeze the credit limit on your card, and you may be unable to use the card until the past due amount is paid....

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What Is the Installment Debt?

Installment loans are debt that is given from a financing company that allow you to make regular payments based on agreed-upon terms until the entire principle and any interest is paid in full. Many consumers at some point may apply for an installment loan if they cannot afford to pay the entire amount of the item in full. Debtors must take into consideration how much they can truly afford and have the resources and income to repay the loan. ...

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Can a Creditor Sue Me for Unsecured Debt?

An unsecured creditor grants you a loan or line of credit based on your income, credit rating and the amount of debt you carry. Unsecured debts don't require that you use your assets as collateral. This process is riskier for the lender since it cannot seize your assets should you fail to pay what you owe. Although the creditor cannot seize your assets, it has the legal right to sue you for any unsecured debt you leave unpaid. Time Frame ...

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Balance Transfers and Credit Scores

Transferring credit card balances to a new card or an existing one can be effective way to manage your credit card debt and minimize interest payment. However, each new credit card application will have a negative effect on your credit score that must also be managed. Dropping Score Opening a new credit line for a balance transfer will lower your credit score immediately. The formula used to calculate a credit score considers new lines of credit as an indicator that the person may be taking on more debt, which would increase a lender's...

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What Is a Guarantor Signature?

When trying to get a loan or some other type of credit, the lender will evaluate your credit history to make sure that you are a potentially good borrower. If you do not have a sufficient amount of credit history or you have a poor credit history, getting a guarantor could help your chances. When a guarantor signs a document, he guarantees that he will pay the debt if you default. Guarantor A guarantor is an individual who signs a loan or lease document in addition to the primary borrower. If the primary borrower defaults on the obligation,...

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Do Satisfied Credit Judgements Need to Be Removed to Improve Your Credit Score?

Your credit score is determined using positive and negative items on your credit report. The more positive items and the fewer negative items you have, the higher your score will be. Having a judgment issued against you will cause your credit score to go down. However, paying off this debt after the judgment will raise your score, although it will not be raised to the point it was before the judgment was issued. Credit Report Credit reports contain information that credit reporting bureaus believe have bearing on your creditworthiness....

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Why Is it a Bad Idea to Do a Cash Settlement?

Many people who have excessive debt decide to do a debt settlement. These can turn out to be bad in certain cases. You need all the facts before you negotiate with a creditor for a settlement. Credit Score When you do a debt settlement it lowers your creditor score anywhere from 45 to 125 points. This information remains on your credit report for seven years. It will be difficult to get credit in the future with favorable terms. Taxable Income You may have to pay taxes on debt that is forgiven. If you have a debt of $8,000 and you...

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