Debt Recovery Solutions

When it comes time to turn your commitment to financial freedom into action, you may be confused about where to start. The answer is different for everyone, depending on each person's specific financial situation. However, everyone attempting to get out of debt must begin at the same starting point: getting on a budget. Budgeting Any way you go about recovering from debt, you need to create a budget. A successful budget measures your income...

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What Are the Statute of Limitations for Business Debt in Missouri?

Borrowing money to help you open your business can be risky. If your business doesn't make enough to pay back its debts, your creditors can take action against the business and, in some cases, against you personally. You and your business may have to file for bankruptcy to end the financial stress due to your business debts. In Missouri, the statute of limitations on either business or personal debt is five to 10 years, depending on the type of loan. Type of Debt As of 2011, Missouri's statute of limitation on debts depends on the type...

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Debt Repayment Options

Consumers who find themselves deeply in debt may feel that repaying the amount they owe is impossible--especially if interest charges and fees continue to accrue on the debt. Struggling to make minimum payments, while only making minimum progress on paying down the debt, isn't the only option consumers have to meet their obligations and regain their financial freedom. Chapter 13 Bankruptcy When an individual files for Chapter 13 bankruptcy, he must present a repayment plan to the court. His repayment plan must include a viable way for him...

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Debt Reduction Vs. Debt

It's easy to find things you would rather spend money on each month than your debt, but if you don't reduce your debt, your interest payments will end up costing you precious money that you could use to meet your financial goals. By choosing a method of debt reduction and sticking with it, you will pay off your debt in a far shorter period of time, freeing your future income for things you really want to invest in. Debt If you allow your...

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Statute of Limitations on Credit Owed According to the Fair Credit Reporting Act

Prior to 1970, consumers were on their own with respect to the information provided to almost anyone by credit bureaus and credit reporting agencies. In 1970, Congress enacted the Fair Credit Reporting Act with the primary objective of protecting consumers against the release of inaccurate information by these agencies. Since that time, lawmakers have revisited and enhanced the FCRA, fine-tuning its fundamental principles to ensure even more protection...

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How to Stop Creditor Harassment in Writing

Creditors are often relentless in their debt collection efforts. They may telephone you several times a day, leave threatening voice message and send countless correspondences. Paying a debt is the best way to get them off your back. But if you don't owe a particular debt, or if you simply want the harassment to stop, writing a letter can produce results. According to the Fair Debt Collections Practices Act, bill collectors must stop calling upon your request. Instructions 1 Get the name and address of the creditor. Keep copies of correspondences...

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Does Getting a Cosigner Help Your Credit?

If you have poor credit or have not established a credit history, you may need to obtain a cosigner to obtain a line of credit, car loan or other form of credit. A cosigner is a person named on the loan who is responsible for repayment if you cannot make your payments, but typically does not directly benefit from the loan. This can help you obtain the items you need to obtain on credit, but it can also help you build or rebuild your credit. Access to Credit Obtaining a cosigner can help you qualify for a loan that you might not otherwise...

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Direct Debt Ratios

When you're applying for a mortgage loan, auto financing or personal loans, your lender will look at your direct debt ratios to determine whether you have enough money coming into your bank accounts every month to afford your loan payments. If you have too much debt and too little income, most financial institutions won't want to lend you money. Debt and Income Lenders look at both your monthly debt obligations and your gross monthly income when determining whether you can afford the payments on the loan for which you are applying. Your...

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Can Wages Be Garnished in the State of Texas for Nonpayment of a Debt?

If you are a Texas resident and you have failed to make payments as agreed on a debt, your creditor may file a lawsuit against you in a Texas court. Unless you can demonstrate that the creditor filed the lawsuit wrongfully or that you paid the debt, the court will grant a judgment to the creditor. But In most cases, a judgment creditor in Texas cannot garnish your wages. Prohibition of Wage Garnishment Texas is one of only four states -- South Carolina, Pennsylvania and North Carolina are the others -- that do not permit garnishment for...

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Debt Cures and the Government

There are many government programs available for those who want assistance in paying off their debt. Depending on your situation, you will find programs that can help make paying off credit card debt a little easier, relief from having to pay taxes on a foreclosure and repayment options for student loans. Government and state grants are also available for those in dire financial trouble. Credit Card Debt Relief The Credit Card Act of 2009 includes new regulations in credit card billing procedures. Under the new regulations, credit card...

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Is it Good Financial Practice to Consolidate With an Unsecured Loan?

A consumer choosing to use debt consolidation faces a variety of choices. While there is no easy answer as to what kinds of debt consolidation loan is best for everyone, choosing an unsecured loan does have advantages and disadvantages. You should speak to a credit counselor or financial advisor if you need specific advice about choosing the appropriate loan for you. Secured vs. Unsecured Loans are typically divided into two main classes:...

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How to Negotiate a HELOC Collection

A home equity line of credit (HELOC) is financing secured by the equity in your home. For example, if the home's market value is $300,000 and you owe $250,000 on the home, you have $50,000 equity in the home. Since the financing is secured by your home, it's important to settle default situations right away. Otherwise, the lender has a right to foreclose on the home. Working with the lender to get caught up on payments and make future payments more...

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How to Get Rid of Credit Card Bills

Credit card bills can quickly pile up and, without a plan, debt can accumulate and ruin your personal finances. Getting rid of credit card debt is possible. However, this usually requires some sort of sacrifice. The disadvantages of high credit card bills include higher interest rates on future loans, decreased credit score and lack of disposable income. However, with patience and diligence, you can erase credit card bills and fix your finances. Instructions 1 Stop hiding from your debt. Pull out a calculator and all your credit card bills...

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Can a Collection Agency Charge Interest?

Often a creditor will choose to either hire a collection agency to help him collect on his outstanding debts or, in some cases, sell his debt to the agency outright. In such cases, the agency has all of the rights that were given to the original creditor. This means that the agency can charge any interest called for in the debt contract but cannot charge any additional interest, such as for the costs it incurs. Collection Agencies A collection agency legally enjoys the exact same rights as the creditor to whom a debtor owes money. In effect,...

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What Can Creditors Legally Do When Collecting From a Deceased Spouse?

When your spouse dies leaving behind debts, your spouse's creditors have the right to try to collect those debts from your spouse's estate, the property your spouse left behind. In general, the creditors cannot pursue you for your spouse's debts, though there are some exceptions. Talk to an attorney for legal advice about what actions a creditor can take in any debt situation. Probate and Debts If your spouse dies leaving debts, her creditors can recover the unpaid debt from her estate. An estate is all the property, both assets and debts,...

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How to Buy a TV Computer Monitor on Credit

TV computer monitors are sold at department and specialty stores, many of which offer easy in-store financing with their own credit cards. You can apply for and receive instant credit approval, or provide your own financing. Bank Cards One option is to purchase the TV computer monitor using a credit card you already have, such as a MasterCard or Visa. Check your billing statement or call customer service to review how much available credit...

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How Do Credit Counseling Services Make Money?

A credit counseling service makes money in a variety of ways. It needs a source of funding to cover expenses such as supplies, rent and salaries. The amount of funding it receives will vary by source. Features When a customer enrolls in a consumer credit counseling program he may have to pay a one-time set-up fee of $50. This can vary from company to company. Types Consumer credit counseling agencies receive grants from various foundations and organizations that believe in their cause. Significance The bulk of the income...

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Who Is Responsible for Paying Off a Charge Card Once the Card Holder Dies?

Balances on charge cards and credit cards don't go away when someone dies. Sometimes companies aren't as patient as it seems they should be in such a difficult situation. The executor of the estate, or an attorney, if you've secured one, should be the main point of contact while you're sorting out who is responsible for paying the debt. Executor Generally, the deceased person's estate is responsible for paying any debt. If the deceased has an outstanding balance on a charge card, the executor of the estate pays it from the estate's assets....

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How to Remove Someone From an Automobile Lease

Removing someone from an automobile lease can be a cumbersome process depending on the circumstances leading to the person's removal. In the majority of cases, the lease agreement will need to be renegotiated with the lender. In addition, you may have to go to court to address these financial issues with the person you are tying to have removed from the automobile lease. Instructions 1 Contact the originator of the lease for your vehicle....

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Are There Any Government Grant Programs to Pay Off Credit Card Debt?

The government isn't going to bail you out on credit card debt. As of 2011 there are no government grants for paying off credit cards. There also are no major nonprofit or private groups offering grants for paying off personal credit card debt. Fortunately, there are other resources available to help you manage excessive debt from credit cards. Credit Counseling Nonprofit credit counselors certified by the U.S. Department of Housing and Urban Development offer free initial counseling sessions to discuss options for managing credit card...

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What Happens If I Turn in a Leased Car Early?

Leasing an automobile can provide you with a car for use on low-mileage trips and travel around town on a short-term contract, which is typically cheaper than an auto loan. Auto lease agreements can be filled with fees for turning in a vehicle over its mileage limit, with existing damage or for terminating the lease early. Early termination of the lease in particular can be financially damaging in the short and long term. Fees and More Fees Turning a leased vehicle early can cause the activation of early termination fees in your lease contract....

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Can You Garnish Wages of a Spouse If the Debtor Doesn't Pay You Back?

A debtor's debts are his alone. A creditor is not allowed to seek payment from another party for a relative's debt, nor is a relative obligated to pay it. Only the person who legally agreed to take on the debt is required to pay it. This means that a debtor cannot seize the wages of a person for a debt owed solely be her husband. Debt Obligations When a person takes on a debt, he will either secure the debt in an oral or a written agreement. In either case, the lender and the debtor will specify who has guaranteed the payment of the debt....

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How to Refinance a Mortgage with a Low Credit Score

Refinancing your mortgage with a low credit score will require an approval process similar to the application for your first mortgage. The Federal Reserve Board says the lender will review your credit score, debts, income and assets and the current value of your property. You may receive a lower interest rate--and lower monthly payments--if your low credit score has improved since you purchased the property. On the other hand, you should expect a...

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How to Find Good Payday Loan Rates

Some payday loan rates are better than others, but none of them can compare to rates available on standard loans from traditional banks and credit unions. A good rate on a credit card from a bank is less than 18 percent. However, payday loan rates can exceed 300 percent, according to the Federal Trade Commission. Finding a "good" rate on a payday loan means shopping around for the most favorable terms available on that type of loan. Instructions 1 Learn your rights under the federal Truth In Lending Act. The act requires all lenders, including...

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Non Profit Debt Advice

You have probably seen ads that promise consumers debt relief through counseling if they are struggling to pay their credit card bills and mortgages. The people behind those ads may tout that they are working through nonprofit organizations. However, nonprofit organizations can make money on the debt counseling that they provide, and some of them may do so at the expense of people who can least afford to rack up more debts. Credit Counselors A credit counselor at a nonprofit organization should help you set up a plan to pay off your bills....

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Can More Than One Creditor Garnish My Wages?

Wage garnishment is the taking of a percentage of your wages by your employer to be forwarded to a creditor to whom you owe a debt. Once your wages are garnished, a second creditor can take money as long as the total amount deduced from your pay does not violate federal or state laws. Function The purpose of a wage garnishment is to repay a debt you owe in full to a creditor over time. The money is taken directly out of your paycheck to ensure the cash gets to a creditor who has a valid debt. Your employer must comply with the garnishment...

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How Can I Settle My Credit Card/Personal Loan Debt?

Many people have a lot of debt. If you are working and can pay your bills, everything is fine. However, sometimes unforeseen circumstances come up and you get behind on your bills or cannot pay them at all. This causes a lot of problems for you and your family financially. There are ways to settle your credit card and loan debt and help you get back on your feet. Instructions 1 Assess your bills and put them in order of least to greatest. Settle the smaller ones first. 2 Call the credit card or loan company directly and explain your...

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What Is the Advantage of Student Credit Cards?

Having a student credit card is important because it teaches the user financial responsibility and the importance of establishing credit history. It also gives the user a sense of autonomy. While a student credit card comes with many advantages, it also comes with many considerations. Credit Cards Students can become responsible with credit. According to the Young Money website, a student credit card is only very slightly different from...

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What Is a Goodwill Request?

One way to improve your credit rating is to write a goodwill request to a creditor asking for a change to an account reported to the credit bureaus. The request outlines why you were delinquent or missed payments, and usually is written after several on-time payments. Function A goodwill request is usually reserved for a rare or out-of-the-ordinary late payment, or for one missed payment after months of on-time payments. Goodwill requests...

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How to Bump Up Credit

Giving your credit a bump increases your personal FICO score. And, if you want to purchase a new home, finance a new automobile or acquire the lowest insurance rates, a good credit history and score is key. Bad credit habits factor into low personal credit ratings. Understand the components that play a role in credit scoring and then take steps to bump up your credit. Instructions 1 Report incorrect data on your credit report. Familiarize...

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How to Find Out If I Was Approved or Denied for Unemployment Benefits

Filing for unemployment benefits requires entering an application in person, over the telephone or online. After that there is a waiting period while the state agency conducts an investigation to determine eligibility. People unemployed through no fault of their own -- such as through a layoff -- usually receive benefits if they otherwise qualify under state guidelines. However, people who voluntarily resign from their jobs or are fired for a legitimate reason may not receive benefits. Agencies managing the benefits provide an answer as quickly...

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How Your Credit Can Influence Your Purchasing Power

Your credit score is one of the most important numbers in your life because it can directly impact your purchasing power. If you are interested in trying to get financing for something, it will be difficult unless you have a solid credit history. Things like late payments, delinquent accounts and high balances on credit cards can strongly influence you ability to purchase the items you want. Credit Score Your credit score is a numerical calculation based on your past credit history. The credit score formula was developed by FICO and it...

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Debt Consolidation Service Help

Many people become curious about debt consolidation because of advertisements with low interest rates, but for many these loans may be a dangerous way of sinking even further into debt. However, if you have chosen to use a consolidation loan, it's important to understand what kind of interest rate you qualify for and choose the right lender, then make a firm decision to keep your debt paid off. Credit Report Find out where you stand financially so that you have a better grasp on what type of interest rates you can get. You're entitled to...

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How Do I Work Out an Electricity Bill Myself?

Electric companies use computers to calculate charges based on the number of kilowatt-hours (kWh) a consumer uses. Typically, the computers are accurate and create no errors. Problems arise when, because of computer or human error, a customer receives a very high bill. If you do not know how to work out your bill and calculate what your charges should be, you can face difficulty explaining the problem to the electrical company. Instructions 1 Enter the amount of energy used. Power companies list this in kWh. Typically, companies provide...

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Can a Payday Loan Place Tell If You Have Another Outstanding Loan Elsewhere?

A payday loan company will often grant payday loans -- loans typically issued for less than a month for a high rate of interest -- to people with bad credit. However, the person must generally provide some proof of an ability to pay, such as a bank account or a check made out to the company. However, some payday loan companies may check to see if the person has any other outstanding loans. Payday Loans Unlike most lenders, payday lenders do not typically care if a person has any loans outstanding to current lenders. While most lenders will...

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How to Calculate Interest on Credit Card Debt

Credit card interest is pretty simple to calculate given knowledge of the interest rate. Finding the monthly interest rate might be as easy as determining 1/12 of the annual percentage rate. Depending on how your credit card company charges you, however, as well as on your balance and the number of days in the billing cycle, the interest rate might be lower or higher than the APR. Instructions 1 Credit card companies calculate interest in...

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How to Boost My Credit in Days

Your credit can be boosted in just days -- but you should allow at least 30 to 45 days for changes to be updated on your credit report. Your credit score is a three-digit number ranging from 350 to 850, and information contained on your credit report is used to determine your score. Generally, your credit score rises as positive credit information is added to your report, and your score often declines when negative information is added. To improve your credit in just days you should quickly add as much positive information as possible. Instructions...

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Can a Creditor Place a Lien on Property in Texas?

If you are a Texas resident and have failed to make payments on a debt, Texas law affords creditors a variety of options to collect from you. A creditor will typically use collection strategies, such as sending you demand letters by regular or certified mail and calling you to try to convince you to pay your debt. However, if you resist paying your debt or avoid your creditor's contact attempts, your creditor may resort to more aggressive strategies, including placing a lien on your personal property. Judgment Before a private creditor...

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Help to Resolve Debt

There is a connection between high debts and a lower credit rating, even when you never miss a payment. But by working to resolve debt and manage your finances responsibly, you can improve your credit score, increase your amount of spendable income, and more easily qualify for loans and other new accounts. Proper Budgeting Write out a monthly budget and be realistic about what you're able to spend each month to help resolve debt and prevent new debt. Creating a budget involves writing down every recurring monthly expense such as housing...

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What Kind of Credit Rating Do I Need to Get Approved for a Loan?

About one-quarter credit reports contain errors, some serious enough to get you denied for a loan, according to CNN.com. In addition, if you've ever had trouble paying your creditors, your rating will include legitimate blemishes as well. FICO scores, the system used by lenders to calculate whether you are a good or poor credit risk, range from 300, which is very bad, to 850, which is exceptionally good. Anywhere in the 600s or 700s is average. ...

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