Are Debt Management Plans a Good Idea?

When your personal debt begins to spiral out of control, you may start to consider using a debt management service. There are many stories and rumors about debt management services, but the best way to get the most out of a debt management service is to ignore the stories and find the truth. When to Use Debt Management If your debt has reached the point where it is difficult to pay each month, then you should consider debt management. It may be that your spending habits have something to do with why your debt continues to grow. An effective...

Read More

Can My House Be Taken if a Judgment Is Entered Against Me in North Carolina?

Failing to make loan payments on time typically results in collection activity such as letters and telephone calls. However, in North Carolina, ignoring your creditor's demands can lead to more serious consequences. A creditor may file a lawsuit in a North Carolina court to obtain a judgment against you for the full debt amount. In some cases, a creditor with a valid judgment can force the sale of your home. Judgment Collection North Carolina law governs the types of property a creditor may take after obtaining a valid judgment for debt....

Read More

Garnishment Laws in Louisiana

The state of Louisiana follows federal rules for wage garnishment. Wage garnishment is applied against disposable income -- earnings that remain after deductions are made. These deductions include withholding tax, Social Security and employer deductions for items such as health insurance and retirement. Employer Guidelines Louisiana wage garnishments are immediately effective when the employer receives notice. The employer must set up the withholding amount, 25 percent of the disposable income. Deductions are made from each paycheck, and...

Read More

Garnished Wages for Bounced Checks

When a person writes a check on a closed or underfunded account, that check generally constitutes a bad check. This is especially true when the person who wrote the check knew about the checking account's status when he wrote the check. In some states, such as Georgia, writing bad checks can land you in jail. Sometimes, however, writing bad checks results in less harsh penalties, such as wage garnishment. Judgment Generally, a wage garnishment...

Read More

When Will a Credit Card Try to Garnish Your Wages?

Wage garnishment occurs when a creditor you leave unpaid, such as your credit card company, seizes a portion of your wages from your employer before you receive your paycheck. Because garnishment is a legal process, no creditor can seize any portion of your paycheck without your consent unless it has a court's permission to do so. After a Lawsuit No unsecured creditor other than the federal government can seize your wages without a court...

Read More

Will Paying Off My Credit Cards Increase My Credit Score?

According to myFICO, amounts owed, or credit utilization, accounts for about 30 percent of your credit score. The higher it is, the more it negatively affects your score. It only makes sense that reducing your credit card balances will help increase your credit score, but there is no hard rule for how much of an increase it will have. Credit Scores Your credit score is made up of several factors, including payment history, credit utilization,...

Read More

Typical Debt to Income Ratio

The debt-to-income ratio is one of the formulas that lenders use in order to judge whether they should lend money to borrowers. For the lender, this is a matter of risk. Lenders are anxious to keep their profits. They do not want to lend money to anyone who may not be able to pay the loan back. As a result, ratios like debt-to-income are becoming more important in the mortgage application process. Definition The debt-to-income ratio shows the proportion of the borrower's debt to their monthly gross income. Gross income is typically found...

Read More

Can an Unemployment Check Be Kept If My Checking Account Is Garnished?

Often, people who are without jobs will find themselves in debt. Although you may receive an unemployment check, this may not be adequate if you're seeking to cover your expenses. A person who defaults on a debt risks having a civil judgment issued against him by a court, resulting in garnishment of his bank account. In such a case, he can probably still receive his unemployment check, although not by direct deposit. Unemployment Benefits When your qualify for unemployment insurance, states send the payments weekly or bi-weekly. The exact...

Read More

Bankruptcy Vs. Charge Off

If you are having trouble paying your credit card bill, you have the option to cease payment altogether and receive a charge-off, or to file bankruptcy in an attempt to have the debt either discharged or modified. Both options carry risks and benefits that must be carefully evaluated before you make a decision about which choice is best for you. The Facts A charge-off occurs when a credit card company writes off your debt for nonpayment....

Read More

How to Reduce the Debt & Interest Payments I Owe

The interest on your debts affects the rate at which you're able to pay off the debt. Negotiating with creditors and re-working the terms of your loans or credit cards helps speed the debt elimination process. Being free of unsecured debts such as credit cards can create extra income in your pocket each month and raise a less-than-perfect credit score. Instructions 1 Contact your credit card companies and ask for a lower interest rate. Call the customer service department and draw attention to your good payment record. A better interest...

Read More

Methods of Cleaning a Credit Report

It's easy to ignore credit problems. But when the time comes to purchase a new car or finance a mortgage, a bad credit rating can justify a loan denial. Credit repair takes time; it can take several months to see any improvements. However, it's worth it to know you'll have a higher credit rating. Instructions 1 View your report online. Order and view a copy of your free credit report from Annual Credit Report (see Resources below). Consumers...

Read More

Do You Have to Pay Judgment Settlements if You File Bankruptcy?

Court judgments for delinquent debts require a defendant in a debt lawsuit to pay a specific amount of money. However, settlements are possible even after a judgment. A debt collector may agree to a settlement featuring monthly payments covering the entire balance. Typically, settlements are for less than the full balance, but a debt collector with a judgment has the leverage necessary to demand full payment. Debtors who do not want to pay judgment settlements can terminate the agreements by filing for bankruptcy. Whether or not the debtor ends...

Read More

Can a Debt Collector Ask for a Certain Amount Each Month?

Debt collectors pursuing delinquent debts, such as credit cards, have one objective: to collect as much of the debt as possible in the shortest amount of time. Sometimes that means asking debtors to make payments for a certain amount each month. The debt collector has every right to make the request, but debtors don't have to agree or even listen to the debt collector's demands. Federal Law The Fair Debt Collections Practices Act is a federal law regulating debt collectors. It clearly spells out what debt collectors can and can't do while...

Read More

What Does It Mean When a Creditor Cancels a Debt?

When you are in debt, the creditor holding the debt has many options when it comes to collecting the balance. While the creditor could file a lawsuit against you or place a lien on your property, sometimes the creditor simply cancels the debt and moves on. When this happens, it eliminates the amount that you owe. Canceled Debt In some situations, creditors will simply cancel outstanding debts and write them off. This means that the creditor forgives the amount that you owe, and no longer expects you to pay it. This is common when negotiating...

Read More

When a Credit Card Debt Goes to Court, How Much Is It Usually Settled for?

Settlement on a credit card debt is a voluntary agreement between two parties. Because of that, no one can precisely predict settlement offers on credit card cases headed to court. SmartMoney reports that settlement offers on credit cards usually range from 20 to 70 percent -- but that is before the filing of a lawsuit. A lawsuit gives the credit card company or debt collector more leverage, making settlement discussions more challenging. Timeline Credit card companies usually close credit card accounts after they are six months past due....

Read More

How to Find Out Who to Contact to Settle an Old Debt

If a debt goes unpaid for a long enough period of time, usually 180 days, the original creditor will sell the debt to a collection agency, which will then attempt to recover the unpaid balance. If those efforts prove unsuccessful, a collection agency will often sell the debt to yet another collection agency. This can make it challenging for consumers to find out whom to contact if they decide they would like to settle an old debt. Instructions 1 Pull a credit report from each of the three major credit bureaus: Equifax, Experian and TransUnion....

Read More

Can Creditors Put Liens on a House That Is Jointly Owned?

While joint real property ownership has many benefits, one of the main drawbacks concerns what happens when the other owner gets sued and incurs a judgment. Under most circumstances, a judgment creditor will be able to seize the debtor's property and sell it to satisfy the award. This includes real property that the debtor owns jointly with another party. Depending on state law, however, several mechanisms exist for protecting your interests from...

Read More

Consumer Debt Recovery

The ultimate goals of financial planning are to increase wealth, while managing risks. Consumer debt management is an integral part of the financial planning process. Effective consumer debt recovery techniques reduce costs and financial risks. From there, sophisticated investors and everyday savers are better positioned to leverage other debt to improve their financial standing. Identification Consumer debt is spent towards items that do...

Read More

Letter to Request a Credit Report

If a major purchase looms ahead, checking your credit is a crucial step in the process. A few blemishes on a record can mean a significant amount of lost cash in the form of higher interest, increased cash deposits for services, or a denial of credit altogether. If an Internet or phone request don't appeal, send a letter to TransUnion, Experian, or Equifax to obtain a copy of the credit file, plus the required fee in a check or money order. Necessary Personal Information When writing a credit report request letter, more data means better...

Read More

Debt Relief Problems

Unfortunately, enrollment in a program such as a debt management plan does not guarantee debt relief. Often, participants are beset by other financial problems, such as secured-loan defaults, job loss, or other issues that prevent the successful completion of the DMP. No matter what the problem, make sure you communicate clearly with your relief agency and your creditors. Eligible Debts Call a debt counseling agency, such as the National...

Read More

Debt Settlement Tips

Debt is a reality for many Americans. Unpaid debt can lead to collections, liens and in certain cases, bankruptcy. Most debtors would rather find a way to settle their debts before the situation gets out of hand. If you have debt that you're behind on, or simply want to pay off the current debts that you have, here are five tips you should consider when settling a debt. Know if You Owe Just because someone says you owe money, doesn't mean...

Read More

Credit Card Debt Responsibility After Death

The loss of a loved one is terribly painful. However, as if to add insult to injury, the family of the deceased will invariably begin getting calls about his debts--and demands that they be paid. Considerations The issue of debt after the passing of the debtor is complicated. Unfortunately, there are no set rules that universally apply to everyone in this situation. Signed Accounts If an account with debt is in the deceased's name...

Read More

How Do I Get a Credit Profile Number?

A legal credit profile number (CPN) is an assigned number, usually nine digits, used to obtain credit. For an individual, the CPN is typically a Social Security number assigned by the Social Security Administration. For a business or corporate entity, it is usually an Employer Identification Number assigned by the Internal Revenue Service. Beware of anyone who offers to get a new or verified credit profile number for you with the intent of cleaning...

Read More

How to Get Rid of Credit Card Debt for Good

High credit card balances are stressful. Even if you pay off the credit card balance, it's possible for you to incur large amounts of debt again, especially if you haven't addressed the behavior behind the debt. According to the Federal Trade Commission, taking steps such as creating a budget, seeking credit counseling and looking into debt-management programs can help you get rid of credit card debt for good. Instructions 1 Create a budget....

Read More

What Happens When a Debt Is Written Off?

When a consumer fails to repay a debt, the debtor may write off the debt. This is often also referred to as charging it off. Understanding what this refers to and what it means to you can help you decide what, if any, action to take. Definition Writing off or charging off a debt means reporting the debt as a loss on corporate tax returns and profit and loss statements. By doing this, creditors can minimize their tax liability to the Internal Revenue Service. Timeframe Debts are often written off six months after failure to repay...

Read More

Best Ways to Raise a Credit Score

Your credit score, or FICO score, is determined by five factors: 35 percent is made up of your payment history; 30 percent, the debt you are carrying; 15 percent, the length of your credit history; 10 percent, the different kinds of credit you use (secured debt, unsecured debt, credit cards and personal loans); and the final 10 percent, inquiries from potential creditors that request to see your credit report. Establish Responsible Credit Behavior The best way to raise your credit score is to practice responsible behavior. Ensure that you...

Read More

How to Calculate Amortized Debt

Amortized debt is the sum total of a loan plus interest, spread out over equal payments for a certain length of time. Although amortized debt reduces the overall debt and interest owed by installments, there is often a large amount of interest to be paid over the long term. In some cases, the borrower pays more in interest than the actual debt is worth. Knowing how to calculate your amortized debt will help you to see how much interest you are paying, and that might lead you to make larger payments now to reduce the interest paid over the long...

Read More

How to Make a Payment on a Rewards Card

Reward cards pay users back for using them by assigning point values to all qualifying purchases. You redeem these points in the form of cash, gift cards, airline miles or other venues that the card issuer selects. Rewards cards work identically to credit cards, and provide users several different payment options. Instructions Pay by mail 1 Wait to get your statement in the mail. When you receive it, review the information on the statement, making sure that you were not overcharged for anything. Once verified for accuracy, move to the next...

Read More

How to Answer a Summons for Debt

When you owe a debt that hasn't been repaid by the terms of your contract, it is possible that you'll be called to court via a summons for debt. This means the person you owe the debt to is suing you to recover the funds you owe. He can also sue you to recover legal fees he incurred trying to recover the debt. Before answering the summons for debt, you should consider your defense and decide how you want to respond to the charges against you. Instructions...

Read More

What Are the 3 Top Credit Bureaus?

Credit bureaus provide credit reports to consumers, lenders and financial institutions, supplying information that assists in making credit decisions by scoring individual consumer behavior. The top three credit bureaus in the United States are Equifax, Experian and TransUnion. Equifax With its headquarters in Atlanta, Equifax operates in Latin American and Europe in addition to the United States. Equifax provides consumer and business credit information, as well as fraud protection and marketing services. Experian The Experian corporation...

Read More

Why Do Students Get Into Debt

Debt is a very common problem with students, whether they're in high school, college or graduate school. In today's social climate, there are many reasons that expenses could pile up and cause students to go further and further into debt. Here are some of the reasons why students often find themselves in debt. Types There are many types of debt that students can find themselves in. One of the most common debts is school loan debt. Paying for college or graduate school can be extremely expensive, especially if you have remnants of other...

Read More

Does Tennessee Allow Wage Garnishments for Civil Lawsuits?

In Tennessee, if you miss a debt payment, your creditor may legally contact you by telephone and mail within the provisions of the Fair Debt Collection Practices Act. If you continue to miss payments and make no effort to resolve your delinquent debt, your creditor may file a lawsuit against you for the balance, plus interest and legal costs, in a Tennessee Civil Court. If the creditor wins the lawsuit and obtains a judgment, Tennessee permits the creditor to seek recovery through wage garnishment. Writ of Garnishment A creditor that wins...

Read More

How to Stop a Direct Debit on a New Card

Direct debits are a popular way for businesses to obtain money from customers as they usually recur every month or few months. These may occur on bank cards and credit cards and prevent defaults on payments and loans. However, this can turn into a nightmare for a card owner as often these direct debits may not be canceled when requested, may be of fraudulent nature, have inaccurate figures, or may be unauthorized. When this happens, you need to know how to stop a direct debit method of payment. Instructions 1 Figure out how you initially...

Read More

Credit Card Debt Settlements: Tips for Making Sure a Debt Settlement Company Is Legitimate

Debt settlement companies claim that they can negotiate with your creditors and settle your debt for less than you currently owe. Unfortunately, many of these companies have made promises they can't keep, bringing the debt settlement industry under the scrutiny of law enforcement and government agencies. To protect yourself, thoroughly check out any debt settlement company, as well as alternatives to professional debt settlement, before working with them. Debt Settlement Companies Debt settlement companies operate by offering your creditors...

Read More

What Do Consolidation Loans Do to Your Credit?

Missing payments will put a huge dent in your credit score, and if your interest rates are making it impossible to pay down your debt, a consolidation loan may help to ease both of these problems. However, before applying for a consolidation loan, it's vital to understand the risks involved with taking on more debt as a means of eventually paying off your debt. Definition A consolidation loan eliminates your current debts by paying them off...

Read More