Do You Have to Pay a Bill That Has Been Charged Off As a Bad Debt?

After 180 days, most creditors will charge off any unsecured debt, such as a medical bill or credit card debt, that you leave unpaid. The creditor can then write off the debt on its taxes as a business loss. A creditor's willingness to charge off a debt, however, does not exonerate you from your responsibility to pay it. Significance Your charged-off debt doesn't cease to exist simply because your creditor claimed it as a loss on its taxes....

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Is the Estate Responsible for the Deceased's Credit Card Debt?

Signing a contract with a credit card company makes you liable for the purchases you make using any credit cards the company provides. Upon your death, you can no longer make payments---but the credit card company remains legally entitled to collect the outstanding balance you owe. Credit card companies have the right to collect unpaid debts from the estates of deceased cardholders. Probate Court Upon your death, your assets and debts immediately...

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How to Settle Your Credit Card Debt for Pennies on the Dollar on Your Own

When you owe a large debt on a credit card but cannot pay the entire balance, settlement may be an option to consider. Settlement occurs by getting the creditor to accept a payoff of a portion of the balance and closing the account as paid in full. Negotiating the balance to the point that you only pay pennies on the dollar is possible through a series of phone calls with the creditor. Keep in mind that debt settlement affects your credit score negatively and you need to have the money available to make the payment you have negotiated. Also note...

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How to Find and Get Credit Card Debt Relief

In a tight economy, many people have been forced to use credit cards to make payments on bills. When the credit runs out and the payments along with the credit card debt is still there, you may find that you need to get credit card debt help to find relief. There are programs and companies that can help. Finding the right one to help your situation can be tricky. Here are some tips on finding help with credit card debt. Instructions 1 Call...

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How to Activate Your Walmart MoneyCard

A Walmart MoneyCard is a prepaid card you can purchase at any Walmart location. Load as much money on the card as you wish, and use it like a debit card at any Walmart store. You can purchase clothes, shoes, toys, house wares, gardening equipment, sporting goods and even groceries. Your card allows you to purchase anything you want, provided there are enough funds on it to cover the cost of your purchase. You can add funds to your card at any time....

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How to Refinance a Home Equity Loan

There are many reasons why someone would want to refinance a home equity loan. One reason could be he needs more cash and that is the easiest way to get it. Secondly, the interest rate he is currently paying might be much higher than the current rates. Or third, maybe he would like to replace his variable rate for a fixed rate. That way he won't have to worry about escalating rates in the future. Whatever the reason, there are a few things he should be thinking about. Instructions 1 Determine if you would be better off refinancing your first...

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About Negotiating Credit Card Debt

If you have major credit card debt, you are paying hundreds of dollars in interest every month. You may be wondering how to reduce this commitment and begin to improve not only your credit rating, but your style and standard of living. With extremely high interest rates on most credit cards, it is the only way for many people to ever pay these lingering debts down. Misconceptions Credit card debt can be negotiated with your credit card company. However, you cannot reduce your own interest rates if you do not meet the requirements set forth...

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How to Get Payoff Figures for Your Student Loans

If you accepted a federal student loan while attending a post-secondary educational institution, you will be required to begin repaying the loan six months after you graduate, leave school or drop below half-time status unless you qualify for a deferral or forbearance. If you are like most students, you may not know how much money you currently owe on your student loans. You can obtain your current balances on all federal student loans through the National Student Loan Data System, or NSLDS. Instructions 1 Navigate to the NSLDS website....

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Who Can You Contact for Help If You're Being Hounded by Credit Agencies?

Most people who have owed a debt or have been late with a bill payment know the feeling of being harassed by phone calls and letters. Bill collectors have a large stake in trying to convince delinquent borrowers, credit card holders and even those late with utility bill payments to pony up money. The first thing you should do is become familiar with laws that regulate bill collector practices, including Federal Trade Commission guidelines. But if...

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How to Ask for Hardship Help From a Creditor

Getting hardship help from a creditor can potentially save your credit rating. Some debtors skip payments if they don't have cash. However, skipping payments reduces credit scores, results in extra fees and can stop future credit approvals. Communication with a creditor and keeping the creditor alert to your economic situation may qualify you for hardship help. Instructions 1 Request help before you default. Don't wait until you've missed a few payments before requesting hardship relief from a creditor. The creditor may readily recommend...

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How Do Credit Bureaus Work With Debt Collectors?

Collection agencies try many hardball tactics to get you to your debts. They may threaten to ruin your credit by making sure the long past due bill shows up on your credit reports with the Equifax, Experian and TransUnion credit bureaus. They may be able to do this, but only under certain circumstances. You can often fight it if you know exactly how debt collectors actually work with credit bureaus. Role The role of the three credit bureaus...

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Credit Repair Success Strategies

If you are suffering from bad credit, it may take time to repair it and increase your credit score. There are, however, specific strategies for getting back on track for effective credit repair. It is important to periodically order a credit report and check it thoroughly for discrepancies. Dealing with negative activity quickly gives you the best chance at repairing your credit. Dispute Inaccurate Activity Federal law gives you the right...

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Debt Consolidation Vs. Home Equity

Paying off your credit cards can be a struggle. Even if you routinely make the minimum payment, you'll find that after several months you have hardly made a dent in the amount owing. There is a way out. If you have a credit score that satisfies the lending institution and enough home equity, you can take out a home equity loan and eliminate the credit card debt. For starters you need to understand what debt consolidation is. Debt Consolidation...

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How to Stop Garnishment of Wages on the Job

A debt collector or a creditor must obtain a court-ordered judgment to garnishee your wages. But a legal entity such as the U.S. Department of Education, state taxation agency or the Internal Revenue Service can garnishee without a court order as long as it sends you notification of the garnishment. The IRS refers to a wage garnishment as a wage levy. A wage garnishment can inconvenience you financially, since it requires your employer to withhold...

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Fair Credit Collection Guidelines

Creditors may relinquish delinquent accounts to third-party collection companies. Debt collectors work for the original lender prior to the creditor charging-off the account. Creditors may also sell accounts to debt buyers, after charge-off. A collection agency or debt buyer's primary objective is to prompt an account holder to remit the account balance. The Federal Trade Commission regulates debt collection guidelines, which are outlined in the Fair Debt Collection Practices Act---FDCPA. Method of Contact According to the FDCPA, collection...

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How Do I Ask Credit Card Companies for Debt Cancellation?

You can cancel a debt with a credit card company through a process called debt settlement. This allows you to resolve credit-card debt for less than the full amount owed. The remaining balance will be cancelled by the card company and your account will be permanently closed. Debt settlement is a good option when you are suffering from financial problems. It is considered by some to be a viable alternative to bankruptcy, which is the most extreme...

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How to Dispute a Claim on Your Credit Report

Credit reports provide a history of how well consumers manage credit privileges. Lenders, insurance companies and even employers use the reports as a basis for determining character and risk. Reviewing your credit report ensures there is not any inaccurate or incomplete information. Claims on your credit report that are wrong should be disputed, as they may have a negative effect on your report and borrowing ability. Disputing credit report claims requires contacting the credit agency and notifying them of the error. Instructions 1 Write...

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How Much Do You Pay on a 1099 for Settlement?

Settlement of a debt, such as a line of credit or a credit card, can allow you to end your obligation to make future debt payments without paying the full balance on your account. Lenders will sometimes accept a lump sump payment that is less than the account balance, particularly if you are behind on your payments and facing potential legal action for your debt. However, you may have to pay tax on debt amounts forgiven under a debt settlement. 1099-C Issuance In most cases, after you have paid a reduced settlement amount to clear a debt...

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How to Calculate Debt Consolidation

Debt consolidation sounds like a promising option to many people struggling with consumer debt, mortgage payments, student loans, and car payments. Guarantees of lower interest rates and lower monthly payments entice many people to seek out services that combine all of their existing debts to yield a new single monthly payment. However, debt consolidation may not always be advantageous for the average consumer. Hidden fees, higher interest rates, and a lower credit rating may end up making your debt management situation worse than before. However,...

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How to Get Countrywide to Reduce the Principal Owed on a Home Loan

Mortgage lenders like Countrywide will reduce the principal on distressed mortgages if they believe it will prevent the account from entering foreclosure. Use this to your advantage when trying to make your mortgage more affordable. Negotiating your Countrywide mortgage to a lower rate may involve allowing payments to become late, damaging your credit rating, but may allow you to get a better deal on your mortgage. Instructions 1 Gather all of your important financial documents to bring to your Countrywide loan officer. This includes payment...

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Do They Garnish My Wages if I Don't Pay the Mortgage in Florida?

A wage garnishment allows a creditor to collect on a judgment against a debtor. Mortgage lenders in Florida must foreclose to get a judgment against the owner-debtor. The mortgage lender needs to specifically obtain a mortgage deficiency judgment to seek a wage garnishment from the owner-debtor. Florida and federal law provide certain exemptions from wage garnishment. Mortgage Default Mortgage lenders in Florida are required to file a judicial...

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How to Relocate When Upside Down on Mortgage

Relocating when you are upside down on your mortgage can be challenging. The upside down nature of your mortgage means you owe more on the loan than the house is worth. That makes selling the house difficult, yet you may need to relocate for a job offer or other reasons. It's important that you carefully consider all the pros and cons before you leave the house behind. Otherwise, you may discoverer that your budget in your new city is insufficient to cover both your new living expenses and the mortgage on the house. Instructions 1 Learn...

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Can I Get Money Back From an Account Levy?

Not all creditors are honorable about levying or garnishing the bank account of someone who owes them money, although the law restricts them to some extent. A creditor cannot seize certain types of income, but that doesn't always stop it from trying. If a creditor takes money from your account that it has no right to, you do have some recourse. The Levy Process A levy can't happen without warning. The creditor would first have to get a judgment...

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How Does Credit Counseling Hurt Credit?

Consumers who run up too much debt might find it necessary to visit a credit counseling agency to discuss their use of credit, their card balances and how they want to handle their debts. If this describes you, understand that credit counseling itself does not hurt your credit. What is Credit Counseling? Credit counseling is a session allowing you to discuss your credit and debt situation, develop a balanced budget, identify your financial...

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How to Pay Off a Court Judgment

Paying off civil judgments against you should be a top priority. Court judgment can affect your credit score and credit report for up to seven years. Ignoring a court judgment doesn't resolve the problem. Rather, delaying payment makes it difficult for you to acquire different types of financing, such as mortgage and business loans. Fortunately, there are a couple of ways to pay a civil court judgment and possibly have it removed from your credit report. Instructions 1 Send a check for the full amount of the judgment. If you want to resolve...

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How Much to Offer for a Debt Settlement?

Creditors are willing to take settlement offers because they understand that they might not receive anything if a debtor files for bankruptcy. The average settlement amount is 47 percent of the balance. The amount you settle for depends on your negotiating skills and your comfort level. Percentage Creditors have accepted settlements between 20 percent and 75 percent of your outstanding balance, so 20 percent might be a good place to start. Most creditors will not accept a settlement offer if you are not past due at least 90 days. If a creditor...

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Tips on Settling Debt

Debt can be a very pressing issue for many people. Owing a ton of money to credit card companies or banks can put a damper on anything else you have going on in your life and settling such debt can alleviate a lot of personal stress. There are several creditors that offer loans and other debt relief programs and there are several tips you can use that may make things a little less painful along the way. Offer Less Debt collectors offer plans...

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How to Handle Debt Stress

If you can't keep up with a growing financial burden, odds are it's causing you some measure of stress. Stress doesn't only have a psychological impact, but a physical one as well. It can leave you suffering from illnesses such as high blood pressure and ulcers. From 10 million to 16 million Americans suffer from physical ailments directly connected to their stress levels, according to a 2008 survey commissioned by the Associated Press and AOL Health....

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Who Will Give Me a Credit Card With Bad Credit?

Good credit can enable you to purchase a home, car, and other material goods. Also, having a solid credit history can make it easier for you to obtain a credit card. However, possessing bad credit doesn't mean that you cannot utilize the benefits that a credit card offers. There are companies that will help you to get a credit card even if you have an unsatisfactory credit rating. FICO Rating Determine if your credit is bad according to the rating system used by credit card companies; this is also known as your FICO score. To find out...

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Scholarships Available to GED Recipients

The General Educational Development (GED) tests measure the skills and knowledge equivalent to a high school curriculum. The test consists of six subject areas, which include math, language arts, reading comprehension, writing, science and social studies. In order to pass, individuals must acquire a combined score of 2,250 with a score of 410 or greater for each test subject area. Passing the tests and receiving the GED credential provides individuals with the opportunity to continue their education, while GED scholarships provide the means to...

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What Happens if You're Late Paying a Bill?

A bill is a legal financial obligation. Neglecting to pay your bills, or even failing to pay them on time, can lead to serious legal and financial consequences. You will be charged late fees, interest and other penalties. Also, your bad payment records will be reported to credit agencies, causing a negative impact on your credit score. In extreme cases, you could even lose your home, car or other property. Late Fees and Penalties Incurring late fees and penalties is one of the most immediate consequences of paying a bill late. The Internal...

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How to Settle Debt with Credit Card Companies

With the recession and rising unemployment, it comes as no surprise that many people are in trouble with their finances. If you are having trouble making your credit card payments each month, you may want to consider settling your debt with the credit card companies. It is really not hard to negotiate debt settlement with your credit card companies, but it can be nerve wracking. Here are some tips to get you started. Instructions 1 First,...

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Do Debt Relief Programs Work?

Debt relief programs offer help to those who feel like they are drowning in debt. When you find yourself in a position with a large amount of debt, the promises made by many debt relief companies can sound attractive. While some of these companies can help, others might be scams. Debt Settlement Many of the debt relief companies on the market offer debt settlement as their main benefit. With these programs, you allow the company to negotiate with your creditors on your behalf. They get the creditors to agree to take less than you owe if...

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How to Survive in Hard Times

We all are feeling the hard times, but there are steps we can take to help alleviate the pain. I wrote this ehow to try to help you with that. Instructions 1 Cut back on the unneeded thing, like name brand foods, the cheap stuff is just as good. Many times you will find that the generic brands are even made by the name brand products. The packaging may be different the product inside doe not change. 2 Try not to cut down on driving, if you can walk to the store then do it. If just took one day off from driving you could save a lot of...

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How to Recover From Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a process that can help you pay off your debts through the use of a payment plan set up by the courts. While it can be a beneficial process for helping you eliminate your debt, it can wreak havoc on your credit score. After going through Chapter 13 bankruptcy, you may have trouble getting approved for financing. There are some steps that you can take to help rebuild your credit rating. Instructions 1 Get a copy of your credit report for review. You are entitled to one free copy per year, which can be obtained from...

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Can a Garnishment for a Debt Be Taken Out of My Federal Return?

Only in rare cases will the IRS turn your refund over to a creditor. Unless your debt is for child support, payments to government agencies, taxes or defaulted student loans, the IRS sends your refund directly to you. However, your creditor can attempt to freeze and levy your back accounts after you deposit your tax refund check. Judgment Collections Most creditors, or their collection agencies, must take you to court before using aggressive debt collection tactics such as the seizure of assets or wage garnishments. Your creditor must prove...

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How to Request Student Loan Deferment

Student loan deferment is an option that's available if you're worried about becoming delinquent or defaulting on private or federal student loans. Economic hardship is one of the qualifying reasons. Deferment means that you won't have to make payments on your student loan for a certain number of months, depending on the reason for deferment. During that time, if your loan is a government-subsidized loan, no interest will accrue. If it's not subsidized, interest will continue to accrue and will be added to the principal due, once the student loan...

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Can a Credit Union Freeze Your Accounts If One Party Dies?

A credit union could freeze your account after the death of a spouse -- if the account is a joint loan account such as a home equity line of credit. Deposit accounts such as joint checking or savings accounts are not frozen when a spouse dies. Spouses on joint deposit accounts have equal rights to the accounts, with access continuing for the surviving spouse. Considerations Credit unions aware of a spouse's death may freeze credit lines to protect the credit union. The credit union may fear the surviving spouse does not have the income...

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