How to Pay Off My Credit in One Year

Paying off all your credit accounts in one year could provide you with added financial security. You could find yourself with more money to invest in retirement savings. Or you could increase the amount of money in your emergency savings fund. Paying off the credit accounts will require discipline and possibly sacrifice as you cut expenses and nonessential spending. It will be important to create a sound and reasonable plan for your debt reduction. Instructions 1 Review your budget. Cut discretionary expenses such as premium cable television...

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Statute of Limitations for Consumers in Mississippi

A consumer with delinquent debt payments is likely to be sued at some point by the creditor or a debt collector to enforce the debt. However, the time period to use the court system to collect consumer debts is limited. In Mississippi, as in all states, the statute of limitations requires the creditor to commence court action within a certain number of years or the creditor can be barred from enforcing the debt. Written Contracts Consumer debt is frequently incurred through a written agreement to pay for goods or services. Mississippi law...

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Can You Recover From Bankruptcy?

You may think that recovering from bankruptcy is impossible, as your credit score goes down and many lenders will not extend credit to you. Yet, bankruptcies don't last forever and, with time, you can boost your poor credit rating and fully recover. Bankruptcies and Credit Reports Bankruptcies are unlike other types of negative information on credit reports, such as foreclosures and collection accounts. These types of information stay on reports for a period of seven years, whereas a bankruptcy can tarnish your credit report for 10 years....

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Credit Collection Issues

Credit collection issues usually have to do with the conduct of debt collectors. Their conduct -- or misconduct -- affects consumers whose credit accounts are no longer managed by the original creditor. An original lender may hire a debt collection agency to attempt to recover a debt, or the lender may write off the debt and sell it to a debt buyer.The Fair Debt Collection Practices Act (FDCPA) provides credit collection guidelines for debt collectors and debt buyers, but it's important to note that these guidelines don't apply to the original...

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Do You Have to Cancel Credit Cards With Consolidation?

When you take on a debt consolidation loan, you must be sure that you are fully committed to staying out of debt. This means that you must lock up your credit cards and stop spending on them; however, that doesn't mean you have to cancel your accounts. On the contrary, if you cancel your credit cards, you may be doing more harm than good. Debt Consolidation A debt consolidation loan pays off your current balances so that you just have to...

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Pros & Cons of Federal Debt Management Services

While America is home to many debt management companies, federally administered debt management services don't exist. There is a company based in Florida named Federal Debt Management Services that offers debt management programs to interested customers. Debt Management Programs Companies such as Federal Debt Management Services allow customers the chance to get their debts under control in an organized way. Debt management programs give people the chance to pay their credit card debts at reduced interest rates. These programs require working...

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How to Restore Personal Credit

Restoring your personal credit after a setback will require determination, time and patience. Foreclosures, bankruptcies, late payments and other negative credit events will cause your credit score to sink. The good news is that your credit can recover. Creditors are more concerned with your current credit score and finances than financial setbacks that took place several years ago. Using credit responsibly will show that you have put your credit problems behind you. Instructions 1 Order your credit report for free from AnnualCreditReport.com...

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How to Refinance and Combine Debt

Your debt to income ratio is too high, you pay most of your income on bills, you are worried about losing your home and your car is about to be repossessed by the lender. It's a nightmare scenario that many Americans have faced, and there seems to be no way out. Combining debt is called "debt consolidation," and this may provide you with a solution. Debt consolidation works by combining all your existing debts into one amount. You take out a loan...

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What Steps Does a Person Take If His Identity Has Been Stolen?

Identity theft is when someone steals your personal information and uses it to commit fraud that is commonly tied to financial issues, according to the U.S. Department of Justice website. You can detect fraud by checking your credit card statements for charges you did not make, and monitoring your credit report for accounts you did not start. Once you detect identity theft, you need to act fast to help avoid financial disaster. Fraud Alert ...

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How to Fight Garnishments

Wage garnishment occurs when a court order directs your employer to withhold a portion of your earned wages to pay your debts. You may appeal the ruling in court if you feel unable to pay for your basic living needs -- like food, housing, health care, transportation, education and other necessities. The court could issue a new judgment preventing creditors from garnishing your wages or it could issue a smaller wage-garnishment amount. Instructions...

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Negative Credit Ratings

A negative credit rating hurts your chances of getting a loan. Plans to buy a house or car often call for improving a low negative rating. You can do several things to help fix a bad score. But before you can improve your rating, you need to understand possible causes of a negative credit rating. Credit Scores Credit scores range between 300 and 850, and upon reviewing an applicant's request for credit, lenders and creditors place applicants in three categories: good credit, fair credit and bad credit. Scores 680 or higher are considered...

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Is the Debt-to-Income Ratio a Factor in Credit Scoring?

Your debt-to-income ratio is a percentage figure that compares how much debt you have vs. how much you earn before taxes, according to Bankrate's Erin Peterson. This number is important because the lower the percentage, the better your odds of getting a good interest rate on everything from a new car to a new home. A credit score also helps to determine interest rates, but it stands alone and the ratio is not a factor in this three-digit number. Distinction Your debt-to-income ratio tells lenders how much debt you will be able to take on...

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How to Find the Best Free Money Government Grants For Personal Debt Relief

There is a lot of Free Money available in the the form of a Government Grant but you need to know were to look. If you are trying to get debt relief then a Government Grant can help you eliminate any personal debt that you may have. It seems like it is becoming harder to make ends meet because of the rising price of oil everything from gas to groceries keeps going up. Instructions 1 To keep up with the rising price of all things that we use...

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Is an Unsecured Loan a Good Way to Consolidate Bills?

Loans and credit agreements can be differentiated based on whether or not the lender requires the borrower to enter into a security agreement. A secured credit transaction requires the borrower to give the creditor an interest in property, such as by providing collateral. When you consolidate your loans, you can use either a secured or unsecured loan to do so. The kind of loan you use depends on your circumstances, abilities and desires. Debt...

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How to File a 1099-A Abandonment

If you lend money to a borrower for a secured debt such as for a car or other personal property, and you have to repossess the property, you must file form 1099-A with the Internal Revenue Service. You must also file this form if you have reason to believe that the borrower has abandoned the property securing the loan. This form is necessary for properly assessing borrower tax liabilities because the borrow may be liable for taxes on the canceled debt. Instructions 1 Order IRS Form 1099-A through the IRS website or by calling the telephone...

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How Fast Do Points Increase in a Credit Score?

If you've had some financial trouble in the past that damaged your credit score, you may be wondering how long it will take to repair it. Creditors report information to credit bureaus every 30 days or so, so your credit score is constantly changing. However, it will take more than a month to undo the damaged. Depending on the state of your credit history and how well you manage your money, you may be able to raise your score significantly in as...

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How to Find the Right Debt Consolidation Company

When searching for the right debt consolidation company, it is always best to rely, first, on your gut instant and, second, on the company's reputation and previous operating practices. Finding a reputable debt consolidation company requires legwork. However, if you are thorough in your search, you'll find a legitimate and experienced debt consolidation company that is right for you. Doing research also allows you to ask the hard questions and receive the answer you want before making your first payment. Instructions 1 Select a debt consolidation...

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Laws on Death & Credit Card Debt

A loved one's death can leave a family grieving and in shock--it can also result in frequent telephone calls from credit card companies requesting payment on the deceased's credit card debt. Depending on the type of account the deceased held, however, the credit card company may not have the right to demand payment from family members. Consumer protection laws exist to regulate creditors' rights to collect after an account holder dies. Joint...

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Mortgage Forgiveness Debt Relief Act of 2007 & Debt Cancellation

Individuals who receive forgiveness or cancellation from their home mortgage loans must report the discharged amount as income on their tax returns and pay federal taxes on the amount to the IRS. The Mortgage Forgiveness Debt Relief Act of 2007 is a federal law proscribing certain tax rules for individuals receiving discharges from their mortgage debts. Background The Mortgage Forgiveness Debt Relief Act of 2007 makes mortgage debt cancellation from a person's primary home exempt from taxation. As of March 2011, the act's provisions apply...

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How to Reduce Your Credit Card's Interest Rates From Debt Counseling

Counseling is an excellent way to address problems with credit card debt, the Federal Trade Commission points out. Many credit counseling agencies, such as those associated with Consumer Credit Counseling Services, specialize in restructuring credit card debt, including the lowering of interest rates. The initial consultation for a debt counseling session is usually free. However, a monthly fee will be required if the counseling service manages your credit card accounts on an ongoing basis. Instructions 1 Gather copies of the account statements...

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How to Get Rid of Zombie Debt: Get Rid of That Old Debt Once and For All

Are old debts that have been settled, now coming back to haunt you? Are collection agencies contacting you regarding debts from 1982? You may be a victim of zombie debt and its time to stand firm and get rid of those pesky debts once and for all. Instructions 1 Zombie debt is simply debt that are the result of mistaken or stolen identity, debts that have been settled through bankruptcies, or debts that have run surpassed there statue of...

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Statute of Limitations on Debt Collection in Kansas

Every state has its own laws that govern how long creditors can go after debtors who have not paid their debt, collectively known as statutes of limitations. The Kansas statute places specific limits on debt collections based on the kind of debt pursued. Always speak to a qualified Kansas attorney if you need legal advice or have questions about Kansas debt collection statutes. Time Limits The Kansas statute of limitations on debt differentiates...

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How to Write a Contract for a Debt Pay Off

In the United States, the total amount of personal debt people have stood at over $2 trillion in 2009, as reported by the Money-Zine website. Revolving debt (e.g., student loans) make up the majority of this debt. According to Mindy Fetterman and Barbara Hansen of USA Today, young people thus are the hardest hit and have increased their debt since 2006. These statistics show that debt contracts--contracts that detail how and when a person will repay...

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Should I Pay Off My Second Mortgage or My Credit Cards First?

When choosing between bad options, choose the one that harms you least. I Could Lose My Home Your second mortgage, if you get into financial trouble, could cost you your house. Your credit cards, no matter how bad your finances get, can't put you out on the street, though they can wreck your credit rating if you go too long without paying them. My Credit Card Bills Are Higher Than My Mortgage If you're paying more...

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How to Consolidate Debt in Canada

Consolidating debt in Canada is similar to doing it in the United States or elsewhere, although Canadians have some resources to turn to that are unique to Canada. Utilizing a consumer credit counseling organization is a popular way to help organize and repay your debt, but certain steps should be followed to find an organization that is trustworthy. Instructions 1 Repaying your debt is about preparation and full disclosure. Pull your credit reports from the three major credit reporting agencies--Experian, Transunion and Equifax--to confirm...

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Can a Credit Card Company Levy a Lien Against Your Home?

Refusing to pay credit card debt can open you up to consequences like wage garnishment and credit score damage. In some cases, it could even result in a lien on your property. When this happens, you must repay the debt to have the lien removed. Otherwise, you will have to pay the creditor before you sell the property. Credit Card Debt Collections Although it is possible for credit card companies to file a lien on your property, it will definitely not be the first step in the process. When you miss your payment, the credit card company will...

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Questions to Ask Collection Agencies

When a collection agency comes calling, it's important to be armed with an education about how collection agencies work and what rights you have. A collection agency may even have the wrong person. Just because you have a debt doesn't mean that a collection agency is correctly calling you about the debt it is investigating. It's important to get all the facts. Often, collection agencies are in a hurry. but don't let them fool you. Take your time to deal with the situation correctly. Collection Agency Limits Before you get too concerned,...

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Pennsylvania Credit Card Default Consequences

Defaulting on a credit card balance is serious business no matter where you live. By defaulting on your account, you will harm your credit, have to deal with debt collectors and may even have to face a lawsuit. If you live in Pennsylvania and cannot pay your bills, you should be aware that Pennsylvania law protects you against both abusive collection tactics and wage garnishment if you are sued. Credit Reporting There are no special protections...

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What Is Non-Tax Debt?

There is no shortage of ways to get into debt, but the cost and process of paying off what you owe varies based on what type of debt you have. Taxes, which you incur simply by earning money, represent just one specific type of debt. Non-tax debt comprises all other types of debt, though it sometimes refers specifically to government debt. General Definition The general definition of non-tax debt is any money you legally owe that is not to a government taxation agency. This means that everything from credit cards and medical bills to student...

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Help for Drowning in Debt

Drowning in debt can hinder your sleep and create anxiety, which can trigger physical symptoms such as stomach pains, depression and tension headaches. Rather than let debt control you, learn to handle your debts and pay off balances faster. Budgets Spending money on extras each month takes a chunk of your money and leaves little left over for debt payments. Create a budget at the beginning of each month. Write out your monthly required expenses, including minimum debt payments, and exclude unnecessary expenses such as entertainment, dining...

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Statute of Limitations for Medical Debt

A medical debt, like other debts, is limited by state statutes of limitations. What statute of limitations applies to your medical debt can differ based on various factors, some of which require the expertise of an experienced attorney to determine. Talk to a lawyer in your area if you need legal advice about medical debts. Limitations A statute of limitations is a legal time limit. It states that a party has a limited amount of time in which to take a specific action. When it comes to medical debts, statutes of limitations limit the time...

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What to Do When You Receive Judgment Papers From a Creditor?

When you stop making payments to a creditor, it has the right to sue you in an effort to collect your outstanding balance. If the creditor is an agency of the federal or state government, such as the U.S. Department of Education, IRS or a state treasury department, these agencies do not have to file a suit against you before they can begin garnishing your wages, state income tax refund and federal income tax refund. Lawsuit When you receive the lawsuit paperwork notifying you of a creditor's lawsuit, you may still have some options to avoid...

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How to Correct Negative Remarks on a Credit Report

Your credit report plays a large role in your financial life and if you have negative statements on it, it can end up costing you a lot of money. Instead of simply leaving these negative remarks on your credit report, you may be able to take action and remove them. By communicating with your creditors and with the credit bureaus, you could potentially get the remarks removed and start to improve your credit score. Instructions 1 Get a copy of your credit report so that you can see the negative remarks. If you plan on removing these remarks,...

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How to Reverse the Charges on My Visa

One of the benefits of making purchases with a Visa card, is that you can reverse a charge if the product you ordered never arrived -- if it arrives damaged -- or if a false charge is made. If a merchant will not reverse your charge, Visa will handle it for you, and thoroughly investigate your official dispute. Instructions 1 Return to the merchant and ask to reverse the charge to your Visa. If the merchant won't work with you to reverse the...

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Is Debt Consolidation Good?

Debt consolidation businesses are booming as many people struggle under the weight of big debt. Choosing to consolidate your debt can seem like an easy solution if you can save monthly expenses. But is debt consolidation a good thing? For some, yes. For many, it may not be the answer you need to save money on your bills. Learn how debt consolidation works so you can decide if it's good for you. Function The function of debt consolidation for credit card debt, according to many who offer the service, is to bring your monthly debt payments...

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Garnishment Laws in Missouri

In Missouri, so long as creditors follow Missouri law and obtain a court order for garnishment, they can legally intercept portions of a debtor's wages. This debt collection method is called wage garnishment. The three most common reasons for wage garnishment are creditors collecting on an unpaid debt, federal and state government collecting back taxes and custodial parents going after unpaid child support. Different rules apply to each scenario...

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Tips on Financial Depression

Adults often get depressed over financial troubles --- whether it's job loss, stock market fluctuation, identity theft or other hardships. News reports feature stories about adults so severely in financial despair that they harm themselves or their family. It may seem like there is no way out, but all situations can be overcome. If depression begins to affect your daily life, it's time to take action to see brighter days ahead. Get Help Depression...

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What Happens When You Settle Credit Card Debit?

When your credit card debt is out of hand, you don't have to change your telephone number or hide from the credit card company. You can try to settle the overdue balance and free yourself from credit card debt. Facts You can settle credit card debt with either the original credit card company, or if the debt is more than six months old, the collection agency that bought the debt. Features The credit card company will update your credit...

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