What Is a Charge-Off Date?

The charge-off date is the date on which a creditor writes an uncollectible debt off its books. The charge-off date falls 180 days after the last payment made by a delinquent debtor. At that point, the creditor has determined that it will no longer receive any payment from the debtor. A charged-off account is forwarded to a collection agency or third-party debt collector for additional collection attempts. Charged-off accounts are severely delinquent and can be damaging to a debtor's credit report. Credit Rating/Reporting When a creditor...

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Help With Financial Problems

These days, no one wants any more financial problems. It's hard enough with a slumping economy and a work force frozen with fear. It's hard enough keeping your head above water praying you avoid any health problems or that your car doesn't break down. Many times, people fall prey to circumstances out of their control. Financial help is not easy to come by, so you have to take advantage of financial resources whenever you can. Places to Go for Financial Help If you are a single mom, there are websites where you can get financial help...

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Can a Lender Garnish My Wages If I Am Retired & Have No Income?

Wage garnishment occurs when a creditor receives permission from a court to seize a portion of an individual's wages before the individual has been issued them. The practice of garnishment is regulated by both state and federal law, dictating the process that creditors must use when garnishing wages and from whom they may garnish them. A person who has no income cannot have their wages garnished, as there is no cash flow for creditors to divert. Wage Garnishment To garnish wages, a creditor must first receive a civil judgment against a...

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Does Making a Settlement of Less Value Than a Person Owes Harm a Person's Credit Score?

Debt settlement may stop dunning calls from creditors and collection agencies, but it also reflects badly on your credit score. The Equifax, Experian and TransUnion credit bureaus show that you made a settlement rather than payment in full, which is a negative status. Sometimes you can negate the negative credit score effect if you negotiate the settlement to include the account's credit-reporting status. Definition A settlement is an agreement between you and a creditor that allows you to pay less than the full amount owed. The company...

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The Length of Time on a Credit Card to Collect Debt

Credit card debt is among the leading causes of excessive debt, with some people unable to pay their accounts because of divorce, job loss or illness. Eventually the credit card company closes the account and sells or assigns it to a debt collector. The collections process can last for a lifetime, as credit card debt does not expire. There are state statute of limitation laws that prevent court action on credit card debt, but debt collectors can use other methods to collect, including phone calls and written correspondence. Statute of Limitations...

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What Applies to Your Credit Score?

Credit scores are an important aspect of overall financial well being. A credit score is a number that attempts to encapsulate the risk you present to lenders when seeking debt. A strong credit score can help you qualify for loans and credit as well as lower interest rates on debt. Credit scores are calculated using a variety of personal credit information. Understanding the factors that influence credit scores can help you make wise financial decisions. Credit and Debt Levels The amount of credit and debt you carry is one of the most important...

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Why Would I Want to Consolidate My Debts?

For any number of reasons, people may rack up debts from a variety of sources, such as credit-card debt, car loans and student loans, that they are having trouble repaying . These loans may have high interest rates, high monthly payments or be hard to manage, causing people to seek a simpler, cheaper way to repay the money they owe. One option is to consider a debt-consolidation loan. Lower Payments Consolidating debt may allow you to make...

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How to Refinance Long-Term Debt

Refinancing any debt will likely incur some fees and costs. Finance companies, banks, credit unions and loan brokers make their income through these fees as well as the interest charged on the loans. If you have a long-term debt (such as a mortgage, equity loan or lengthy car loan) that you need to refinance, you need to approach lenders with a certain amount of scrutiny. There are a number of factors to consider before you jump into the application...

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Will Items Included in a Bankruptcy Lower My Credit Score?

All debts must be listed in bankruptcy, with the filing causing a sudden drop in credit scores once the bankruptcy appears on credit reports. Major credit bureaus such as Equifax, TransUnion and Experian report bankruptcy information for 10 years, making it difficult to obtain credit at reasonable rates. The impact lessens over time, however. MSN Money reports that some people emerging from bankruptcy build excellent credit scores after a few years. Poor Credit Lenders use credit scores to evaluate creditworthiness. Credit scores of 720...

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Preauthorized Debit Definition

For many consumers, preauthorized debit transactions are an important part of personal money management. However, while having money automatically withdrawn from an account prevents missed payments, it can also put consumers at risk of overdrawing their account or being scammed. Description A preauthorized debit is an arrangement to withdraw funds directly from a bank account at predetermined intervals, such as monthly. Depending on the payment...

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Five Steps to Tackling Debt During Unemployment

If you are unemployed and in debt, it's best to deal with the problem head on. Ignoring it will only make things worse. Facing the situation may not be as bad as you would think. You may have to adjust your spending habits and temporarily rethink your priorities, but lenders may be surprisingly willing to help. Pay the Minimum Payment If at all possible, keep on making at least the minimum payments on your credit cards and other debts. If...

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Credit Guarantee Agreement

A credit guarantor is named in a guarantee agreement as being responsible for payment in the event that the named borrower in the agreement defaults on payments. This is more commonly referred to as a co-signer. Significance A credit guarantee agreement is normally supplemental to other loan documentation that outlines the co-signer's rights and obligations. The agreement is written to encourage credit be extended to the borrower, using the...

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The Effect of an Additional Credit Line on a Debt to Income Ratio

The debt to income ratio for a borrower is the percentage of monthly debt obligation in relation to his monthly income. The lower the debt to income ratio, the better a borrower's chance at gaining additional debt or loans. Significance The debt to income ratio is used by lenders to determine a borrower's management of debt and his ability to repay additional debt. Most lenders like to see a debt to income ratio of less than 40 percent after...

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Will My Bad Credit Freeze My Spouse's Bank Account?

Married couples face challenges when a spouse runs into trouble with bad credit. Every consumer has an individual credit report, a record of the person's use of credit. While there are not joint credit reports for married couples, your spouse's bad credit can affect your credit in certain situations. Credit Reports A credit report is a document maintained by different credit reporting companies that contains a history of your behavior as...

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Consumer's Rights For an Old Debt

If you have worked hard to clean up your credit report, there is nothing more frustrating than an old debt that suddenly reappears on your record. Fortunately, you have rights under federal and state law that can help remove old debts from your credit report and stop any ongoing collection activity on debts that are outside the statute of limitations. Statute of Limitations Most states have a statute of limitations on how long a creditor...

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Can a Credit Card Company Garnishee My Bank Accounts Without First Giving Me Notice?

A consumer who has purchased items with a credit card is obligated to make payments on time every month. If he falls behind or stops making payments, the credit card company will try to get the money owed. If the consumer ignores all attempts at contact, the credit card company has the right to file a lawsuit and request a court order, which can result in garnishment of the consumer's bank accounts. However, until you get a letter from the bank notifying...

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Reasons Why High Debt Could Be a Problem

Accumulating large amounts of debt can be relatively easy, especially if you have access to credit cards with high spending limits. While going into debt can offer immediate rewards and gratification, the long-term effects may not be so enjoyable, Heavy debt can have a severe impact on your personal and financial health and even the state of the economy. Reduced Credit Score Even if you make timely payments toward your debt, heavy debt can...

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What Is a Credit Card Hardship Program?

Many credit card companies have hardship programs. These programs are designed for people experiencing financial stress due to unemployment, serious illness, divorce or other problems. Hardship programs can provide some relief from your debt. Significance If your credit card company has a hardship program you may be able to get your interest rates lowered and your fees waived. Some credit card companies will reduce your account balance to...

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How Do I Create a Credit Freeze to Protect Identity Theft?

Over the past decade, identity theft has become one of the fastest-growing and most dangerous types of crime that can happen to someone that has good credit standing. One way to protect your identity is to monitor your credit report for lines of credit that have been opened in your name without your consent. The best way to stop someone from opening a credit account in your name is to put a security freeze on your credit report. Under a security...

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Can I Refinance My Mortgage If I Have Poor Credit?

If you have bad credit and you're in the market to refinance your mortgage, you need to consider what kind of deal you can get in light of your low credit score. Your credit score is a numerical representation of your ability to manage credit. Lenders use this number as one factor in determining whether to give you a loan. While having a bad credit score may not prevent you from refinancing, it will make it harder to get the loan. Bad Credit One of the most commonly used credit scores, the FICO score, ranges from 300 to 850. The Federal...

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How to Eliminate Medical Bills

Sometimes an individual has no health insurance or medical copays and deductibles add up. Medical bills can become overwhelming for people who lose their jobs or see their income reduced. Options to eliminate medical bills include working out a payment plan, using your home's equity, loan consolidation and bankruptcy. Instructions 1 Contact the medical facility or provider to whom you owe money. Ask for a payment plan that will work for you...

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Statute of Limitations for Debt in Arizona

Every state has laws that limit how long people have to take certain actions. These laws, known as statutes of limitations, apply to everything from how long the state has to prosecute someone for a crime to how long creditors have to collect on unpaid debts. Arizona's statute of limitations imposes different limits on different kinds of debts. Statute of Limitations A statute of limitations on debts limits how much time a creditor has to...

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Financial Advice on Getting Out of Debt

Living in a state of chronic debt can cause severe stress and have a detrimental effect on family relationships and physical health. If the debt is the result of unsustainable spending patterns, you won't solve the problem until you change the spending patterns and learn to spend less than you earn. Write Down Everything The first step in understanding your debt issues is to have all the information. The best way to do this is to write down...

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What Is the Limit for Garnishing Pay in Colorado?

If you are a Colorado resident with a past-due debt, and your creditor does not believe that you will voluntarily repay your debt, your creditor may sue you in a Colorado court to obtain a judgment against you. Colorado permits creditors with valid judgments to garnish your wages, which means that they may force your employer to withhold part of your wages for repayment of your debt. However, Colorado law places several restrictions on wage garnishment. Money Limitations Colorado follows federal law concerning the amount a judgment creditor...

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Can New York State Taxes Garnish Disability?

If you owe property or state taxes, New York -- like other states -- has a legal right to garnish your wages or place a lien on your property or bank account to collect the debt. While some states do not exempt certain types of income from state levies, New York has provisions that protect disability payments from back-tax collection. Tax Warrant The New York Department of Taxation and Finance must file a tax warrant before garnishing wages. It allows the state to take additional steps to collect the back taxes you owe. It creates a lien...

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How to Lose Your Debt

Having large amounts of debt can feel overwhelming, and because of the ease of obtaining credit cards, many people are experiencing debt stress. Acquiring debt doesn't seem to take long in today's economy, but removing it may take many years. There are many ways to lose your debt without having to resort to bankruptcy. With patience, willpower and some financial guidance, you can take the bull by the horns and begin following a path toward being...

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Difference Between a Settlement & Charge-Off of a Debt

A settlement and a charge-off are both common occurrences in the credit card industry. Settling a debt, however, will require you to pay at least some of the balance and will have a different effect on your credit score. Facts A charge-off occurs when a credit card company removes an old, unpaid debt from its accounting books and claims it as a tax loss. The debt is then typically sold to a collections firm. A settlement occurs when either...

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What If My Payday Loans Are Three Years Delinquent?

Payday loans -- which typically carry high interest charges and must be paid back within a month -- are structured similar to other loans. A borrower is required to pay back the amount of the loan by an agreed-upon date, along with any interest and fees assessed by the company. If a borrower fails to pay this money back according to the payday loans terms, he will likely face financial penalties and potentially legal action. Loan Terms When a person signs a payday loan contract, he usually agrees to accept the assessment of a number of...

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Grants for Financial Debt

The federal government offers different types of support programs to citizens with debt obligations. Citizens may avail of different financial debt grants given that they are eligible. Eligibility for financial debt grants depends on the type and scope of the program. For instance, there are grants specifically intended to help farmers fulfill their debt obligations, while other grants provide education and training on financial management. Most...

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What Are the Laws on Re-Aged Debt?

Credit card debt that's legally re-aged can help consumers who are in financial trouble. However, companies that are seeking to recoup old debts from consumers may attempt to illegally re-age their accounts by collecting all or part of the amount those consumers owe. Re-aging essentially involves removing or moving back the date an account became delinquent. Delinquent Accounts A legally re-aged credit card account can help a cardholder who has fallen behind on payments. A creditor who re-ages an account essentially restarts the payment...

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How Much Does a Chapter 7 Reduce Your Credit Score?

Chapter 7 Filing for Chapter 7 bankruptcy protection is the act of confirming to a court of law that you are unable to pay your bills and meet any financial obligations you may have. Any non-exempt debts (things like child support, student loans, and spousal support) are then absolved during bankruptcy and you are no longer obligated to pay them. However, any non-exempt assets you have (vacation homes, multiple cars) will be sold and the money...

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Can Collection Agencies Garnish Wages When Less Than the Minimum Payment Is Paid?

There are some general federal regulations laid down for debt collection by the Fair Debt Collection Practices Act (FDCPA). These regulations are designed to protect consumers and cover personal and household debts. In addition to the FDCPA, state guidelines play a big role in what collection agencies can and cannot do, as well as what they may garnish. Debt collection laws vary from state to state, with some states prohibiting garnishments in cases other than unpaid taxes or back child support. Collection agencies often will work with you to come...

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How to Figure Out How Much I Owe Collection Agencies

If you have unpaid debts, your accounts may be handed over to collection agencies who are charged with retrieving the outstanding balances from you. Collection agencies will contact you by mail and telephone seeking payment. You may not have a record of how much money you actually owe to the collection agencies. It is important to determine your outstanding balances so you can manage your finances. Instructions 1 All collection agencies are...

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Can a Mortgage Company Collect the Difference in a Foreclosure?

Foreclosure can be a traumatic experience, and it doesn't necessarily end when the lender takes the home. Your house will be sold at auction, with most states allowing the bank to file a lawsuit against you for any difference between the mortgage balance and the sales price at auction. Deficiency Judgments Many people assume their foreclosure is over once the bank takes the property. However, serious repercussions could remain, with laws in more than 30 states allowing mortgage companies to seek court judgments to collect any remaining...

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Can I Be Sued for the Balance of a Repossessed Car in Texas?

A car repossession can cause severe difficulties in your financial life -- it negatively impacts your credit score, which can make it difficult to purchase another vehicle or obtain loans or credit cards. If you do not have another vehicle, a repossession can also prevent you from commuting to work, which can cost you your job. However, if you are a Texas resident, a repossession can impact your finances in another way: you may be responsible for amounts your lender cannot recover by selling the vehicle. Auction Process After a lender repossesses...

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Should Old Debt Be Paid Off?

There's no one-size-fits-all answer to whether a person should pay off old debt. People who make payments on old debts can unknowingly create legal problems for themselves. Your best option may be to consult with an attorney before speaking with any debt collectors who are trying to recoup money owed on old debts. Old Debt Limitations Debt collectors can pursue money owed on old debts even if the debts no longer fall under a state's statute of limitations. State statutes restrict the amount of time creditors and others have to file a lawsuit...

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