How to Settle a Bank Debt

Debt settlement is popular with some people drowning in debt that hope to avoid bankruptcy. Settling with your bank for less than the full amount owed on your unsecured loan or credit card will stop the collection calls and end the possibility of being sued on that particular account. The savings can be significant, with banks commonly settling for about the half the balance and sometimes for as little as 20 percent, according to The New York Times....

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Is it Smart to Use a Home Equity Line of Credit to Pay Off a Credit Card?

Sometimes it is smart to use a home equity line of credit, otherwise known as a HELOC, to pay off a credit card, and sometimes it is not. If you have equity built up in your home, taking out a HELOC is certainly an option to pay off credit card debt, but first consider the pros and cons. Identification A HELOC works like a credit card, only you use your home as collateral. Homeowners typically qualify for 75 percent of the home's appraised value minus the balance you owe. So, for example, if your home is valued at $300,000, 75 percent of...

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How to Determine Debt Collection Statute of Limitations

If you've got an aged credit card debt or loan that you've failed to repay, it's helpful to know that debt collections agencies may be unable to sue you for the amount if the statute of limitations has expired on the amount you owe. Because the statute of limitations (SOL) varies widely depending on the state where you acquired the debt or the type of account, for example, it's vital to know where your debt falls. Consider these tips to determine...

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How to Get a Settlement for Default Student Loans

A student loan is any loan that is intended to help you finance your education. It may be financed by the government or awarded by private lenders. A federal student loan will fall into default after nine months of missed payments. Private student loans, however, may fall into default status immediately after you stop paying the debt. A defaulted student loan continues to accrue interest until it is paid off. Should the debt be transferred to a collection...

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How to Save Money and Pay Off My Credit Cards

Living beyond your means and incurring debt is stressful. But with a little savvy saving and a debt payment plan, you can still live well while also being financially responsible. Here are tips for saving money and paying off credit card debt. Instructions What is Your Financial State Now 1 Take a good look at your current financial situation. You can't get where you want to go without knowing where you are now. So pull out your bank statements and determine how much money you have coming in and how much is going out. Group your expenses...

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Does Bankruptcy Clear Medical Debt?

Being overwhelmed with debts is no fun --- particularly when that debt is compounded by medical issues. A recent study by Harvard University found that as many as 46 percent of personal bankruptcies had medical debt as a contributing factor. Not all debts are dischargeable in bankruptcy. But as long as there was no evidence of fraud, and the creditor is not the federal government, bankruptcy can potentially discharge medical debts. Whether filing bankruptcy is worth it or not, however, is another matter altogether. Liquidation Versus Reorganization...

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How to Dispute Collection Accounts on Credit

A collection account on your credit report drags down your credit score and looks bad to lenders, employers, rental managers and insurance companies that may pull and review your credit. If you notice a collection account appearing on your credit report that doesn't belong to you or that contains incorrect information, you can dispute the account with both the collection agency reporting the debt and the credit bureaus. Federal law prohibits information providers and credit bureaus alike from knowingly maintaining incorrect information. Instructions...

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The Differences Between Preapproved and Prequalified

Whether buying a house, car, furniture or another big-ticket item, an individual has two main options: pay the entire amount out of pocket or obtain a loan. Obtaining a loan involves working with lenders. To avoid the disappointment of having your loan application denied, you can find out ahead of time how much you can afford to borrow. Prequalification and preapproval are different from each other, but both are ways to determine the amount of borrowing...

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Credit Card Consolidation Limits

Combining many loans into one for the purposes of lowering interest and total payments is known as debt consolidation. For those looking to simplify and improve their financial lives, consolidation can provide relief for the mind as well as the wallet. Don't count on being able to consolidate your debts onto one credit card, because loans always come with limits. However, there are many ways to consolidate debt, and there is a solution for you. ...

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Credit Card Debt Relief Options

Excessive credit card debt can easily lead to financial ruin. Carrying large balances while struggling to make even the minimum payments can lead to debt that could literally take decades to pay off. You can avoid that by taking advantage of various credit card debt relief programs. The programs can help you through a temporary hardship--or end your credit card debt all at once. Hardship Plans Credit card hardship plans are designed to help...

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Are Debt Settlement Companies a Good Option?

Debt settlement companies offer consumers a way to eliminate their debt for less than what is owed. These companies have advantages and disadvantages, and these should be weighed carefully before contracting their services. Services Debt settlement companies contact your creditors on your behalf and attempt to negotiate settlement agreements for your oustanding debt. Cost Debt settlement companies typically charge a flat rate fee, usually a percentage of the balance owed or of the forgiven debt. They may also charge an initial signup...

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How to Set a Credit Bureau Fraud Alert

Fraud alerts on consumers' credit files prevent other people from opening a new credit or loan account in their name or charging items to a credit card without their authorization. Creditors, lenders and others who see fraud alerts on a consumer's credit file should verify that person's identity before allowing any financial transactions. There are three types of fraud alerts offered by the three major credit-reporting companies, which are Equifax, Experian and TransUnion. Fraud alerts processed at one company automatically go on the corresponding...

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Do Credit Card Companies Ever Lower Your Amount of Debt?

Only in debt settlement do credit card companies lower your level of debt. However, to qualify for debt settlement, you must already be in dire financial circumstances. By understanding all your debt relief options, you may be able to get out of debt while saving yourself from rejection for new credit in the future. Debt Settlement When a credit card company agrees to lower the amount of the balance you need to pay off, it's called debt settlement....

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How to Avoid Getting Your Credit Card Cancelled

A credit card company may cancel a card for many reasons, including non-use, excess debt, a lowered credit score and even an increase in credit that exceeds the amount the company is comfortable with. A cancelled credit card can cause considerable problems, especially in an emergency such as needing gas or a hotel room on short notice. A few easy steps, applied on a regular basis, can help avoid an unnecessary cancellation. Instructions 1 ...

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Does Bad Credit Affect Student Debt Consolidation?

Student loans are one area of lending where bad credit does not necessarily preclude you from consolidation your accounts to take advantage of lower rates. Whether bad credit hinders your application depends largely on what type of student loans you own. Federal student loans usually offer guaranteed consolidation, while private loans are much harder to consolidate. Identification If you have a federal student loan, you automatically qualify for federal student loan consolidation as long as you are not in school. In 2010, the Department...

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Advice to Pay Off Credit Card Debt

If you're deep into credit card debt, it might seem like there's no way out. However, that isn't the case. No amount of debt is insurmountable, but you need the right plan in order to climb your way out of your debt hole. Stop Using Credit If you're in a huge debt hole and you aren't already maxed out, odds are good that you soon will be. Cut up your cards immediately and stop making the problem worse. Living without credit is a scary thing, but it's necessary to start paying down your debts. If you're worried about making ends meet, it's...

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How Long Can a Company Try to Collect a Bad Debt?

A company may try to collect valid debt indefinitely. However, the lengths a company can go to collect the debt are governed by state laws and the federal Fair Debt Collection Practices Act. Specifics In most states, there is a statute of limitations on individual debt. Debt beyond that point is not erased and companies can attempt to collect until the account is in good standing. However, a company cannot sue you in court beyond that time,...

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Can Credit Card Judgements Come After Home Equity?

Good credit is essential to your financial health. Maintaining consistent payments on your credit cards proves to lenders that you can manage your debts. Credit card judgments show that you are in financial trouble and hinder attempts to get further credit. While you will not be able to get a home equity loan with credit card judgments, you can find yourself with judgments after you get a home equity loan. Credit Card Judgments When you are issued a credit card, you must repay your purchases in monthly installments with interest. If you...

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Identity Theft Help & Information

Identity theft occurs when someone uses your personal information and assumes your identity. Identity theft can take many forms such as someone making purchases on one of your credit cards to opening an account in your name. If you find that you are the victim of an identity theft, you can take steps to reclaim your identity. Identifying Crime Many times, one of the problems that people have with identity theft is finding out that they have become a victim. To determine if you have been the victim of identity theft, you may need to look...

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Define Composition Settlement

A composition settlement is an agreement between a debtor and a creditor stating that the creditor will accept as settlement a payment from the debtor that amounts to less than what is owed in full. Benefits A composition settlement with creditors can be an alternative to bankruptcy. However, debtors are not released from making payments until they have fulfilled the payment provisions that both parties agreed to. Logistics Creditors are sometimes reluctant to agree to a composition settlement. However, if the request is from a small...

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Can You Change Your Mortgage Terms After a Divorce?

One of the most difficult aspects of divorce is deciding what to do with the house. When one spouse decides to keep the house, the family court may end up deciding who is going to pay for the house and how, but when it comes to the mortgage, the family court's decision means little. The terms are rarely negotiable. Transferring Interest In the instance of a divorce in which one spouse decides to keep the house, the spouse who no longer wants any interest in the home will often sign a quitclaim deed or interspousal transfer grant, giving...

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What Are the Statutes of Limitations on Credit Card Fraud?

As many as 78 percent of consumers have a credit card, according to the CreditCards.com website. Although credit cards can be valuable when properly used, some card holders will face credit card debt they cannot pay. Occasionally, this debt is the result of fraud. Your credit card company and legal authorities may try to take you to court to collect the debt, but statutes of limitations apply to credit card fraud cases. Factors Affecting Statutes...

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What Is a Person's Credit Score When They Have No Credit?

A credit score is a numerical value based on the information on a person's credit report, which includes data from mortgage loans, credit cards, lines of revolving credit, student loans and other forms of credit and borrowed money. Credit scores range from 300 to 850, with low numbers indicating bad credit and high numbers indicating good credit. Credit Score Number A person with no credit history -- that is, no information on his credit report for the past six months -- has a credit score of "zero," which some lenders and credit specialists...

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How to Broker Delinquent Debt

When a credit card account or a medical bill goes 60 days past due, it is generally considered to be a delinquent account. Some credit card companies and medical billing services will keep the collection effort in-house for up to 3 to 6 months, at which time the account is sent to a third-party collector. If you receive a notice of a delinquent account, you can broker it yourself. Instructions 1 Verify the debt. If the delinquent account is...

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Cars & Credit Assistance

Purchasing a car on credit at a competitive interest rate requires a good credit score. Credit scores are three-digit numbers ranging from 350 to 850. People with scores of 720 or higher usually receive the best deals on financing, including special offers for waiving finance charges over a a certain period. Auto credit is also available to people with lower credit scores, but at higher interest rates. Sources Banks and credit unions usually...

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What Does it Say on Your Credit Report When You Make a Settlement?

Debt settlement allows you to resolve a delinquent account by paying less than the full amount owed. After the payment, your account is updated to show that it has been "settled" or "settled for less than the full balance." Both terms mean the same, but "paid in full" is used to indicate an account whose entire balance was paid. Impact on Credit Settling a credit account will get debt collectors off your back but don't look for a spike in your credit score. Experian, one of the major credit reporting bureaus, reports that any update to...

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How to Make a Payment on My Federal Student Loan in Texas

Federal student loans are government programs, such as Stafford or Perkins loans, that help students pay for the costs associated with college. Though these are federal programs, loans are distributed by private lenders. When you leave school, you have a six- to nine-month grace period before payments are due depending on the type of loan you obtained. Payments are made directly to the lender unless you are considered in default. In Texas, defaulted student loans are turned over to the Texas Guaranteed Student Loan Corporation. Instructions ...

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Laws on Collecting a Debt After a Judgment

When a court awards a creditor a civil judgment after a collection lawsuit, the court does not work to recover the debt for the creditor. New collection options, such as wage garnishment, become available to creditors following the lawsuit, but it remains the creditor's responsibility -- not the court's -- to pursue the debtor and collect the debt after receiving a civil judgment. Enforcing a Judgment Creditors can enforce their judgment collection rights only for the period of time the debtor's state sets for judgment enforcement. Different...

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What Do I Need to Do to My Bank Account to Defer a School Loan?

Deferring a student loan allows you to free up the money you would normally make on your student loan so you can use it for something else. Many people defer student loans when they lose a job or face a hardship such as a serious illness. Federal student loans allow you to go into deferment, while private student loans may be more reluctant to do so. There are a limited number of months for which you can put your loan on deferment. Putting Your...

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How to Consolidate Bills With a Very Low Credit Score

Health issues, job loss and other financial struggles can leave consumers with very low credit scores. A low credit score makes the cost of financing expensive. Consumers who have large amounts of debt may reduce monthly payments through debt consolidation loans. However, with a low credit score, these consumers need to know where to find these loans. Instructions 1 Assemble all current bills. Make a list of each debt obligation balance and...

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Statute of Limitations on Judgments in Idaho

Once a judgment is granted by the court, a creditor has the right to collect the money via wage garnishment, tax return garnishments or garnishing your bank account. Each state has specific laws governing how long a judgment is good for and how much interest can be charged. Once the statute of limitations on judgments time frame has passed, the judgment is no longer legally collectible. What is a Judgment When a consumer defaults on a loan,...

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Ways to Lower My Credit Card Payoff

Millions of Americans are saddled with credit card debt. Seventy-eight percent of American households--about 91.1 million people--had one or more credit cards by the end of 2008, according to the April 2009 Nilson Report. At that time, Americans' credit card debt reached $8,329 per household, including those without credit cards. The United States Congress' Joint Economic Committee reported in May 2009 that U.S. revolving consumer debt was about $950 billion and was made up mostly of credit card debt. Payoff in a Lump Sum If you want to...

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What Type of System Do Credit Bureaus Use to Gather Information?

The information each credit bureau collects makes up your credit report for that particular bureau. In turn, the information on each bureau's credit report determines your credit score with that bureau. Your credit report information and the scores each bureau holds for you may vary. The credit bureaus utilize several different information gathering methods to ensure that each has as much pertinent financial data on you as possible. Reporting Contracts Much of the information that appears on your credit report has been inserted there directly...

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How do I Write a Report Detailing the Reasons for Granting or Denying a Loan?

The Equal Credit Opportunity Act was passed to ensure that no lender turns down a credit or loan application due to an applicant's race, color, religion, national origin, sex, marital status or age. To help enforce the law, the U.S. government often looks at a lender's reports detailing reasons for credit approval and denial. If too many applicants are being rejected, the lender might need to revise its lending standards. Instructions 1 List all of the categories that will appear on the report. These can include but are not limited to the...

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Can Anyone Turn in an Account to a Collection Agency If You Are Paying on That Account?

When you cannot afford to pay off a debt, your account could eventually be turned over to a collections agency in an attempt to collect the money you owe. While this is common if you are not making payments, in some cases, your account can be turned over even if you are making regular payments. Lower Than Minimum Payment Just because you are making a payment, that does not necessarily mean the creditor won't turn you over to collections. For example, if you have a minimum payment of $100 on your credit card statement and you only send in...

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How Will Debt Consolidation Affect Your Credit Score?

Debt consolidation is just one of many potential solutions for your credit card debt. However, as with all other options, it's important to understand the impact that debt consolidation can have on your credit score. Depending on your level of discipline, debt consolidation can either help improve your score, or it can help to destroy your score. Debt Consolidation Debt consolidation is a way to get all of your different credit card bills combined into one monthly payment. In debt consolidation, you take out a loan -- usually a home equity...

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Whom Do I Ask Questions About My Credit Score?

The chorus of financial advice in the media can quickly turn into a cacophony. It comes at you from all directions, and without proper knowledge, separating the wheat from the chaff can be very difficult. Properly evaluating credit advice requires a sound understanding of the limitations of what credit consulting agencies can do for you and resources provided by state and federal government. Limitations The credit advice market has become...

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Consumer Credit Report Assistance

Some companies offer credit report services to consumers that range from providing identity theft protection to fixing credit report errors. However, there is credit report advice available free online that shows consumers how to get copies of their reports, how to read them and how to correct errors with credit-reporting companies. Free Reports An Associated Press report says identity theft was the top consumer complaint filed with the U.S. Federal Trade Commission for the eleventh year in a row in 2010. The AP article, titled "Fighting...

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