Debt Settlement Programs in Arkansas

Arkansas residents worried by their debt burden can seek help through the federal bankruptcy process or non-profit debt settlement services. Before signing up for any type of financial relief, it is important to understand that all types of debt settlement will negatively impact your credit standing for seven to 10 years. Debt Settlement Basics You must get credit counseling before filing bankruptcy in Arkansas or signing up for a debt settlement plan. Non-profit agencies work with creditors to get interest rates reduced and over-the-limit...

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Can I Settle My Credit Card Debt With a Creditor?

In times of economic hardship, people sometimes turn to methods of getting out of debt that they would not normally even consider. For most people, the thought of bankruptcy is an unacceptable or only a last resort. Some people turn to debt settlement as one means of tackling some of their current debt, especially unsecured debts like those accrued through the use of credit cards. Legal Considerations It is possible to settle your debt with...

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Can a Bank Sell Your Debt to a Collection Agency Without Your Knowledge?

If you default on a loan or credit card, your bank can sell the debt in order to recoup its losses. In many cases, the company that buys your debt is also a collection agency, which means that it can begin aggressive collection action against you. Collections Process If you fall behind on loan or credit card payments, your bank will contact you about your account. The first contacts will come in letters and phone calls, which will become more frequent as you fall further behind on your debt. If you don't bring your account current, your...

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Government Assistance for Credit Card Debt

Government assistance for credit card debt is offered through bankruptcy. Bankruptcy severely damages credit scores, but it is the only program available from the government for directly eliminating credit card debt. Bailouts for credit cards are not available through the government as of 2011, and the government does not offer debt consolidation loans for credit card debt or other financial assistance such as tax credits or grants. Considerations Bankruptcy remains on credit reports for a minimum of 10 years, and it significantly hurts...

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How do I Clear Up Debt in Ontario?

When you are in debt, you might feel frustrated, sad, depressed and even angry. Getting into debt is easy these days, with the accessibility of credit cards, loans and other lines of credit. Getting out of debt is the hard part. Even if you are in over your head, there is no unsolvable debt problem. You can get the help you need and regain control of your finances. If you live in Ontario, Canada, and are struggling to get out debt and get on track...

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Free Credit-Counseling Programs Overview

Consumers struggling with debt are often bombarded with offers for help with programs advertising free or low-cost credit counseling services. These programs may seem tempting, yet not all services offered by these counselors are free. Before you join, make sure you understand what you will get and what the potential costs will be. What Is Free Most programs that offer free or low-cost services include counseling, education services and budgeting help. According to the National Foundation for Credit Counseling (NFCC), this can be offered...

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Government Approved Debt Relief

The federal government offers business owners and individual citizens the ability to regain financial footing through the bankruptcy process. But if you owe recent income tax debts, the only way to find debt relief is to negotiate a repayment plan directly with the taxation agency, warns the Internal Revenue Service. Also, federal bankruptcy judges will not discharge your government-issued student loans unless you are severely disabled or were allowed to attend classes without a high school equivalency diploma or academic placement test. Business...

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Can School Financial Aid Be Garnished?

When you owe money on a debt, the creditor can get a judgment against you and eventually garnish your wages to collect the money owed. A garnishment only involves money that you earn. When it comes to student aid, you do not have to worry about this money being garnished. Student Loans One of the most common forms of financial aid is the student loan. The federal government provides student loans in the form of Stafford and Perkins loans. With these types of loans, you are not actually earning any money. You are simply borrowing the money...

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Will My Husband's Short Sale Affect Me Getting a Loan?

A short sale is the sale of a home for less than its market value. It is a popular strategy for a homeowner seeking to avoid the damage caused by a foreclosure. The damage a short sale causes to a spouse's credit depends on several factors, including when the property purchase occurred and the debtors named on the mortgage. Name on the Mortgage A short sale should not affect your personal credit rating if the mortgage in question was in your husband's name only. You shouldn't experience a problem in getting a personal loan as long as the...

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Consumer Credit Collection Laws

If you have ever fallen behind on your credit card bills, you might have experienced abusive, unfair or deceptive practices when it comes to debt collection. Congress has found abundant evidence of this fact and has enacted many laws so that consumers will not experience abusive behavior from collection agencies, lawyers hired to collect on regular debt and companies who buy credit debt accounts and try to collect on them. Federal Debt Collections...

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Debt Plan Solutions

Too much debt may stop you from doing the things you want to the most. Debt can make it difficult to start your own business, take your dream vacation or from retiring early. It is important to have a plan to deal with your debt, and to consider all solutions before choosing the right one for your needs. Debt Payment Plan A debt payment plan can help you get out of debt without negatively affecting your credit. List your debts in order from...

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Debt Negotiation Vs. Debt Consolidation

If you are overwhelmed by the amount of debt you have, debt negotiation and debt consolidation both offer solutions to your problem. Both of these options require you to pay off the debt that you currently owe, but they work to reduce your monthly payments and to save you interest over time. These are long-term solutions to your problem and not a quick and easy fix. Which one is right for you depends on your debt load and your current income level....

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How to Establish Credit After a Foreclosure

If you have just been through a foreclosure, the future can seem pretty bleak, at least when it comes to getting another house and repairing your credit. The good news is that with some diligence and a little hard work, you can completely recover from a foreclosure. Typically, you will need to wait three years before applying for a new mortgage, but this will give you time to fix your credit. Instructions Starting the Repair Process 1 Settle your debt with the bank. Often, after a foreclosure, the bank will require that you pay back at least...

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Can They Garnish My Husband's Wages?

Whether a person can have his wages garnished depends on a number of factors. The person must be declared by a civil judge to be legally in debt to another party. Second, the debtor must not be eligible for exemptions that would protect him from income garnishment. Third, the debtor's income stream cannot be protected from garnishment under the law. A husband's wages cannot be garnished for his wife's debts, because they are not his debts. Lawsuit To begin collection actions such as garnishment, a creditor must secure a legal judgment that...

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What If a Collection Agency Can't Prove What You Owe?

One of the strategies that many people use when they are faced with debt collection is asking a collection agency to validate the debt. This requires the collection agency to provide proof that the individual actually owed the money to begin with. If the debt collector cannot prove this debt, you may not have to pay it. Debt Validation As a debtor, you have the legal right to ask for debt validation when a collection agency contacts you. When the collection agency contacts you, you have the right to ask for documentation that shows you...

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How to Win a Summons for a Credit Card if You Are Unemployed

If you've fallen behind on your credit card payments for several months or longer, there's a chance you might get sued by your creditors. If you receive a summons about the credit card debt, this means the creditor has sued you and is trying to win a court's judgment so it can collect its money. A summons is merely the notice that the creditor has sued you and that you are expected to be in court. You cannot "win" a summons, but you can fight the case. Whether you are unemployed is irrelevant to you getting sued, as a lawsuit can and will proceed...

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What Happens if You're Sued for a Debt and Don't Have Money To Pay?

Being sued for a debt and not having the money to pay can trigger other financial headaches. Creditors typically sue if you don't communicate with them or arrange to pay a debt after 180 days. Some creditors simply write off the debt, send the account to collections and never pursue a lawsuit. But creditors vary, and some go to great lengths to recover debts. Credit Judgment Some debtors ignore a summons to appear in court to dispute an unpaid debt. Disregarding this notification and not appearing on your court date results in the creditor...

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How do I Build & Repair My Credit Score?

Building, maintaining and occasionally cleaning up a credit report is important for financial security. The best way to begin this process is to access a recent copy of your credit report and review your borrowing behavior. When you apply for loans or housing, lenders and landlords will scrutinize this report. It's best to know what is on it. If you have problems on your report, you must first prioritize them, and then take steps to fix them and...

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How to Reconsolidate a Spousal Consolidation Loan

Debt consolidation loans can be financially beneficial. They can reduce monthly payments and monthly interest rates and they can help you get out of debt faster and more efficiently. If your spouse currently has a consolidation loan that is burdensome, you can help re-consolidate that loan--especially if you add your income and credit to the application. Often having two borrowers on an application will improve scores and reduce indebtedness. Instructions...

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Credit Repair & Debt Help Experts

Carrying high balances on credit cards hurts your consumer credit scores and costs you in high interest fees. If you fall behind on credit card payments, you have a number of options. Public and private debt management resources are available. When determining which option is right for you, look at your complete credit history and make a determination accordingly. Financial Expert Suze Orman Suze Orman warns debtors to pay above the minimum payment every month. It would take a debtor over 30 years to pay off a $5000 balance billed at an...

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The Best Way to Settle Debt

Debts create a lot of stress for the people dealing with them. Long-term debt can result in a massive reduction in your credit score, the possible loss of your home or car, and damage to your overall finances that can last for years. The constant pressure provided by debt collectors only serves to make the stress worse. Settling debts can be very difficult and time consuming, but the end result is worthwhile and can improve your overall quality of...

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Debt Default Consequences

Proper management of debt is crucial if you want to establish a good credit record and qualify for a house or auto loan. It's common for people to acquire debt because of the high cost of certain items. But when you default or stop paying creditors and lenders, this creates a complicated situation and triggers credit damage. Credit Scores Debt affects credit scores in two major ways. The debt acquired from credit cards and loans lowers your...

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Is a Debt Consolidation Loan Possible Without Home Equity?

When a consumer's personal debt starts to become too much for him to handle, he may consider debt consolidation. One debt consolidation option is a home equity loan or line of credit. Some consumers may not have enough equity in their home to do a home equity consolidation, or they may not feel comfortable putting their home up as consolidation collateral, according to the Federal Trade Commission website. There are options other than home equity...

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Income Statement Preparation

Preparing a corporate statement of income is similar to calculating your own disposable income, that is, money left over after you pay all your bills. A company's income statement, however, includes some specific items that you might not see on an individual's statement of revenues and expenses. Generally accepted accounting principles provide guidance on profitability report preparation. Identification An income statement is a document in...

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How to Add Someone to Your Credit Card to Improve Their Credit Score

Adding a name to your credit card results in the person becoming an authorized user on the account. Being an authorized user can help improve this person's credit score if you have good credit and manage the account well. The process is quick and simple. However, before adding a name to your credit card, consult your card company first. Instructions 1 Call your card company to discuss the details. Some credit card companies do not report authorized...

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Is it Financially Sound to Remortgage to Pay Off Debts?

Remortgaging can be a good way to consolidate high interest debt and make your monthly payments more manageable. There are several things you should consider to determine whether it's financially sound for you to remortgage to pay off debts. Potential Savings Remortgaging can save you money in the long term if your other debts are carrying excessive fees or high interest rates. Impact to Credit Score Remortgaging can give your credit...

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Do I Settle With a Credit Card Company or Let It Go to Collections?

If you accumulate a large amount of debt on your credit cards, the minimum payments can be hard to keep up with. You may be forced to choose between settling your debt and allowing the account to go into collection. Both of these options are unattractive, but one may be better than the other depending on your situation. Settling a Debt One of the options that you have when you get behind on a debt is to settle it. A debt settlement involves paying the creditor less than what you owe on the account. For this process, you typically have to...

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Secrets to Improving Credit And Credit Repair Information

Having a high credit score has a number of advantages. In addition to qualifying you for lower interest rates on loans, high credit scores provide evidence of your financial responsibility to other parties, such as employers or landlords. Having a low score can be harmful, as it can lead to higher interest rates and potential problems finding a job or apartment. Fortunately, there are a number of different ways that you can hike your credit scores. Paying Off Balances The best credit repair strategy is to pay off as much debt as possible....

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Can I Find Out How Much I Owe a Credit Card That Has Gone Into Collections?

Collection agencies are required to disclose the amount owed on a credit card account when asked. Another way to determine the amount owed on a credit card that has gone to collections is by ordering a copy of your credit report. If a creditor has not reported the debt to the credit bureaus, you'll have to refer to your own records or contact the lender for more information regarding the balance of your debt. Reading Your Credit Reports Order credit reports from each of the three major credit bureaus (Transunion, Equifax and Experian) using...

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Debt Payment Options

A word that seems to correspond with the current recession is "weight." There is the weight of worrying about losing a job, how to pay bills, and how to plan for an uncertain future. Americans spend around 14.3 percent of their income attempting to pay off debts, according to Time Magazine. A significant percentage of those payments go to interest, rather than whittling away at actual debt. There are ways, though, for Americans to take charge of...

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The Statute of Limitations in Arizona for Collections

The statute of limitations is a legal concept that precludes a plaintiff from filing a lawsuit after a specified period of time has elapsed from the date on which his cause of action first accrued. Arizona, like other states, has established specific limitations periods for bringing civil actions in court for various legal causes of action, e.g., negligence, fraud or breach of contract. Arizona Statute Of Limitations Arizona has established two separate limitations periods for actions to recover debt owed. 12-548 of the Arizona Revised...

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How to Stop Credit Card Collection Phone Calls

Struggling to pay your credit-card debt is difficult enough without being harassed by companies trying to collect money. Fortunately, the Fair Debt Collection Practices Act (FDCPA) protects consumers from collection companies. Arm yourself with knowledge of your rights to stop those annoying phone calls. Instructions 1 Know the law. The Fair Debt Collection Practices Act (FDCPA) governs the ways in which collection companies can contact you, as well as your rights in dealing with collection companies. For example, collection companies cannot...

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How to Improve My FICO Score for Free

The FICO (Fair Isaac Corporation) score is derived from a specific analysis of your credit report. The score is generated from multiple factors including your payment history, number of delinquent accounts, ability to pay existing debt and length of time accounts have been opened. When your score is high, lenders are more likely to extend new credit to you, and better rates should be available. You can raise your score by following a few...

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Bankruptcy Vs. Debt Management Plan

Bankruptcy and debt management are two options for dealing with debt; each has its own unique advantages and disadvantages. Which one you should choose depends upon your individual needs and financial circumstances. Definition Bankruptcy is a legal process in which debts are restructured or erased completely. Debt management restructures debt to make it more manageable. How It Works---Bankruptcy You present the court with a list of...

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Is It Worth Paying Back a Collection Agency?

When a creditor cannot collect from you, it will usually write off your account and transfer the account to a third party for collection. These third-party debt collectors, or "collection agencies," work in conjunction with creditors or alone to recover past due debts. Depending on your situation, paying a collection agency may not benefit you in any way. Age of Debt One incentive many consumers have for paying off past due debt is the possibility...

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