How to Get Rid of a Defaulted Student Loan Without Paying Anything

If you accepted U.S. federal student loans to attend an institution of higher education and failed to repay them as required, your loans are in default status. It is difficult, but not impossible, to discharge or cancel a federal student loan. Under limited circumstances, you may qualify for one of the cancellation reasons or for a discharge in a federal bankruptcy proceeding. Instructions Bankruptcy 1 File a petition for bankruptcy protection in the appropriate federal bankruptcy court. To request an entire discharge, you must file a chapter...

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How to Negotiate a Credit Card Balance Settlement

Credit card companies extend credit to customers the company considers good risks. While most customers begin their relationships with credit card companies fully intending to handle credit responsibly, they may run into trouble if they don't understand how credit works, how to keep their balances low or if they experience financial problems. Credit card companies are willing to work with customers who have run up large balances they are unable to...

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How to Establish Credit for a Teenager

Being financially responsible at a young age and building credit as a teenager can help you acquire mortgage loans and other types of financing in the future. Lenders carefully consider an applicant's credit history when deciding whether to approval a loan request. And individuals with a short credit history tend to pay higher rates. By establishing credit as a teenager, you'll create a credit file at an early age and build a solid rating. Instructions...

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How to Survive a Financial Meltdown

It's not easy to put the breaks on the runaway spending that landed you in a financial wasteland. You're mourning your former solvency and are likely to work through anger, grief and denial until you reach acceptance. If the experience has taught you anything it's to making a promise that this won't happen again. Instructions 1 Assess your current financial situation. List assets like your home, stocks, bonds, furniture and jewelry. Be brutally...

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How to Qualify for a Student Loan Deferment if I Live in Another Country

If you accepted a federal student loan to help you pay for your college education, you must begin repayment on the loan after you have been out of school for six months unless you qualify for a deferment or forbearance. If your request for a deferment is approved, you will not be required to make your monthly student loan payments for the duration of the deferment. Unlike a forbearance, during a deferment, interest does not accrue on your loans. Living outside the United States does not affect your eligibility for a deferment as long as you meet...

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The Most Important Bills to Pay to Protect Your Credit

When cash is scarce and you want to protect your credit rating, prioritization is crucial. Late or missed payments on certain bills will have a bigger negative impact on your credit rating than others. Installment Loans Auto loans are examples of installment loans. Installment loans--fixed loans with equal payments made for a pre-determined amount of time--affect your credit rating. Loans for cars, household furnishings, appliances and...

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Should I Consolidate My Credit Card?

If you have at least one credit card balance that you carry from one month to another, you have a few options for ways to consolidate the debt. When you consolidate, you take out a new loan and use it to pay off the credit card debt. Each consolidation method comes with advantages and disadvantages that you need to weigh in light of your specific situation. Balance Transfer Perhaps the simplest way to consolidate credit card debt is to transfer it to a different credit card with a lower interest rate. This saves you money because more of...

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Debt Consolidation 101

When you have a large amount of debt spread out over several different accounts, combining the debt into a single package can be very appealing. Debt consolidation is a process that many use to work with a single account instead of multiple accounts. This process can help you reduce interest rates and simplify things, but it can also lead to some issues. How Debt Consolidation Works The basic idea behind debt consolidation is that you get all of your debts into a single account. One of the most common ways of doing this is to take out a...

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How to Consolidate Bills Without Taking Out a Second Mortgage

There are numerous ways to consolidate bills and simplify your finances. Homeowners typically consider a second mortgage or home equity loan to pay off debts and improve their credit rating. Unfortunately, not everyone qualifies for a second mortgage. Obtaining one involves having adequate equity and being a homeowner. If you don't qualify, consider other methods of bill consolidation. Instructions 1 Transfer balances. Apply for a low-rate...

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How Can I Achieve Student Loan Forgiveness?

Eliminate your nondefaulted student loans that were made or consolidated under the William D. Ford Direct Loan Program by working for any federal, state, or local government, as well as any charitable nonprofit organizations as part of the federal Public Service Loan Forgiveness (PSLF) program. Make the required 120 payments on your student loan while you perform any kind of full-time job in the public sector for ten years and the remainder of your...

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Can SSI Back Pay Be Garnished?

Creditors have a variety of means of getting paid what they are owed by debtors. A creditor is allowed to sue a debtor in civil court -- as long as the statute of limitations in the state for debt has not expired -- and, if the creditor wins, he will often be allowed to seek a garnishment order for the debtor's wages. However, certain kinds of income are off limits to private debt collectors -- a debt collector that is not party of the government -- including Supplemental Security Income. Garnishment A creditor is only allowed to garnish...

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Am I Liable for My Parents' Medical Bills When They Die?

The high cost of health care services is a common concern among consumers. Elderly individuals typically require more medical care than younger individuals. Although programs such as Medicare provide insurance coverage for the elderly, these programs do not always cover 100 percent of the cost of services---leaving the patient responsible for paying the balance. Should the individual die, collectors may contact the patient's family members and request...

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Credit Counseling Alternatives

Credit counseling teaches you to manage your debts on your own or gets you into a formal payment plan, depending on your specific needs. Many credit counseling firms are nonprofit and offer free or affordable services. You have other alternatives if you do not wish to work with a credit counselor, ranging from self-help to bankruptcy, according to the Federal Trade Commission. Self-Help You can get out of debt with a self-created repayment plan if your financial problems are not too severe. Cut back on unnecessary expenses, like restaurant...

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Debt Settlement Laws in Kentucky

Debt settlement laws in Kentucky set rules for how companies can interact with residents with regards to debt. They are intended to both protect the residents from fraudulent business practices and provide a framework for how businesses can properly assist customers. These laws are important to anyone seeking debt settlement advice. Overview of Debt Settlement Debt settlement is different from debt negotiation (in which a person's debts are...

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Define Debt Forgiveness

Debt forgiveness can relieve financial hardship by eliminating your liability for a portion of oustanding debts. Description Debt forgiveness occurs when a lender forgives or cancels part or all of an outstanding debt. Qualifying Debts Unsecured debts--such as credit cards, personal loans, and medical debts--may be forgiven. Mortgage loans may be forgiven if the situation meets specific criteria. Exclusions Student loans,...

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How to Opt Out of Credit Card Rates

According to CreditInfoCenter.com, the new Credit Card Act passed by the United States Congress went into effect on August 20, 2009. Part of the new law stipulates that banks must give a 45-day written notice that they will be raising interest rates, and customers must be given the option to opt out of the rate increase. You should have received an amended credit card agreement that discusses how your bank handles the opt-out option. The account is not automatically closed, and, if you use the card more than 14 days after opting out, the bank has...

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How to Get Out of Debt with Dave Ramsey

Dave Ramsey is a popular author and radio show host who gives practical advice on getting out of debt. He has his own system of "baby steps" for getting out of debt and . Read on to learn more about the portion of Dave Ramsey's system that deals with getting out of debt. Instructions 1 Take stock of where you are. The first part of Dave Ramsey's system involves gathering information about all of your debts and taking stock of where you are....

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What to Do When You're in Debt?

Excessive debt can be a crushing financial situation, and there are simple (but not easy) methods to get out of it. Budget to Pay Off Your Debt There's only one way to get out of debt: Spend less money than you make, and apply those savings to your debt load. Unfortunately, this is as difficult as the maxim to "eat less and lose weight." Your debt represents a period of time when--for whatever reason--you spent more than you made. The interest on your debt means that you're still paying charges on those past excesses; the only way to bring...

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Advice on Debt Consolidation & Management

Debt consolidation is a common type of strategy for dealing with debts that borrowers are having trouble paying off. The goal of debt consolidation and similar types of debt management is not to get rid of the debt through cancellation or forgiveness, but to find a way to pay off the debt fully and make debt problems more simplistic, easier to manage and budget for. Debt consolidation also can help improve credit and keep borrowers from resorting to bankruptcy. Debt Consolidation Debt consolidation seeks to replace old debts with a new...

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Organizations That Help With Hospital Bills

According to Health.com, a major online source of medical information, high medical bills lead to more than 60 percent of the bankruptcies filed in the United States. It's no wonder that this is a growing problem as the costs of medical care continues to grow faster than people's ability to pay for them. If you are facing financial disaster as a result of mounting medical expense, understand that there are ways to cut medical costs by availing yourself...

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How to Default on a Mortgage

Defaulting on a mortgage is never an easy decision. The detrimental credit record alone is enough to deter some homeowners, while others are more concerned about the legal and financial ramifications or, worse, the looming prospect of homelessness. Nonetheless, homeowners do go into default, and this article will explore the best--and, hopefully, the least painful--way to engage in this process. Instructions Default on a Mortgage 1 Contact your lender. While many financial institutions, especially larger banks, can have a reputation as heartless,...

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Debt Consolidation vs. Credit Card Payment

Debt consolidation is a common method of dealing with credit card payments that borrowers can be struggling with; however, people with credit card problems should carefully consider their options before deciding on a particular debt consolidation strategy. Sometimes paying off credit cards using other methods is a preferable than trying and consolidate debt that does not need to be changed. Both methods offer their own advantages, depending on the financial situation. Making the Payments The first option for debt holders is to simply pay...

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How to Build Corporate Credit Without a Personal Guarantee

When starting a business, it is important to keep your business credit separate from your personal credit so that your personal credit score does not drop due to the sudden surge in credit checks and other issues brought on by the new business. By building corporate credit without using a personal guarantee, you can start a business credit profile that reflects your financial success in the business world without affecting your personal situation. In order to build up your corporate credit in this fashion, follow these steps. Instructions ...

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How to Protect Your Money in a Bank From Garnishment

When a creditor sues a debtor and obtains a judgment for the amount of money due, the creditor must then collect on the judgment. State laws differ regarding what post-judgment collection remedies are available to a judgment creditor, but in most cases the holder of a judgment may request the court to order the garnishment of any funds held in the debtor's name by a financial institution. Both federal and state laws may protect funds held in a financial institution from garnishment. Instructions 1 Identify the source of the funds held in...

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How to Sign Your Company Up With Business Credit Reporting Bureau

Owning a small business can be a rewarding way to earn a living. However, for your business to grow and continue to be successful, you'll need to ensure the financial health of that business. To do this you'll need to establish and maintain business credit. This will allow consumers and prospective lenders to check on your business's health. The first step is to sign up with a reporting agency. Instructions 1 Obtain a federal tax ID number,...

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How to Repay a Mortgage Faster

When you bought your house, you took on a mortgage you thought at the time was much more than you could afford. That was a few years ago, and now you would like to begin paying your mortgage off faster. There are several ways that can be done. Your individual circumstances will dictate which one makes the most sense for you. Instructions 1 Simply add to each of your monthly payments on your mortgage. Not only will you pay off your mortgage faster, you will pay far less interest on it than if you paid only what was due. 2 Make half payments...

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Debt Recovery & Collection

The use of credit is a way of life for consumers and an income source for businesses. The credit card companies set credit limits, charge fees, offering consumers a way to obtain items. Loss of a job, a decrease in income, puts a strain on consumers to meet monthly obligations. Payments are delinquent and debt collectors insist on payments. The Federal Trade Commission has enacted the Fair Debt Collection Act offering consumers and collectors rights...

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Government Grants for Credit Card Debt

Many Americans find themselves under a mountain of increasing credit card debt. Looking for relief from the financial burden, consumers have turned to debt-relief companies and even the federal government. Misconceptions There is no shortage of websites that claim individuals can apply for a federal grant to relieve them of their credit card debt by going to Grants.gov. On the front page of this website is the statement: Grants.gov does not provide personal financial assistance. Credit Counselors As reported by ABCs Mellody Hobson,...

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Why Everyone Should Have at Least One Credit Card

Credit cards will create a lot of problems in the wrong hands, and when consumer debt gets out of hand, things can get ugly in a hurry. Unfortunately, credit cards do not come with instructions for optimal use. Instead, lenders offer you terms and conditions infused with language guaranteed to confound and confuse, and written in print so small that even a magnifying glass is not much help. Still, as our world leans away from the use of checks and...

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How to Check Account Liability

Liability refers to things for which you are responsible. In the business world, account liability refers to the outstanding debts that you owe to others. Most everybody has some sort of account liability at one point or another, whether it is an outstanding liability on a car loan, home loan or outstanding credit card balance. Keeping current on your liability payments is essential to maintaining good credit. Regardless of what type of account you hold a liability on, you can easily check your account liability. Instructions 1 Login to...

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What Is Amortization and Depreciation?

Amortization and deprecation are two different methods of handling an asset deduction when you are using accrual accounting for your business. Amortization is used for intangible expenses, while deprecation is used for tangible expenses. Accrual accounting does not deduct an asset immediately when you buy it. The cost of assets are spread over the functional lifetime of the asset itself to provide a more complete view of a business' cash flow and profit. Amortization Amortization is the deduction method used for intangible products that...

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Is a Background Check Needed for a Line of Credit?

Background checks such as character references and criminal history checks are usually not needed for approval on lines of credit. There could be exceptions to this if the bank is extending an unusually large credit line. However, in nearly all cases the bank or lender makes only a standard credit check. Permission The lender will seek your written authorization before conducting a formal background check -- if one is required. Background checks are more common in employment situations during the hiring process as companies check references,...

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How to Sell a Car With a Personal Judgment

A personal judgment enables your court adversary with the right to place a lien on your car that prevents you from selling the car without paying the judgment. Liens give the holder a financial interest in your property and court lienholders are no different from the lienholder you acquire when you finance a vehicle. If the judgment owner does not place a lien on your automobile, sell the car without repercussion. If the judgment holder requests a garnishment of your bank account and you deposit the money in that account, the owner of the judgment...

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Advantages & Disadvantages of Using Consumer Credit

According the U.S. Census Bureau, in 2006 there were more than 173 million credit card holders in the United States. This was predicted to grow to 181 million by 2010, representing nearly 92% of all households. Although credit can be helpful, if used wisely, it can also cause financial stress if misused. Charge Cards vs. Credit Cards Although many people carry them, some do not understand that charge cards are different than credit cards....

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Affordable Debt Help

Debt management or consolidation services can be a lifeline to those in desperate need of reworked finances. Unfortunately, these services often don't come cheaply and scam artists are everywhere. Luckily, affordable -- even free -- help is available. If you're ready to do some legwork yourself, you may be able to eliminate fees and lower interest rates on your own. If not, finding a reputable debt management company is of paramount importance. ...

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How to Work With a Small Claims Court Mediator in Texas

Mediation is a process in which a neutral third party sits down with persons involved in a dispute and facilitates negotiations between them. Many judges prefer mediation to the trial process, especially for small claims matters, according to the Journal for Consumer and Commercial Law. In Texas, the judge must order mediation before litigants can engage in it. Instructions 1 Request that the judge handling your case assign a mediator. Texas law requires that the judge order mediation if he sees it as a viable alternative to the trial process;...

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Cards for Credit Problems

It's tough for people with credit problems to get credit cards that don't come with high interest rates. However, people who don't rack up big balances and pay their card issuers' bills on time use high-interest cards to improve their credit ratings. They may eventually qualify for other credit cards with better terms, but in the meantime can explore cards for credit problems. Secured Credit Cards Secured credit cards offer people with credit...

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How to Account for Debt Forgiveness

Forgiven debt is when a credit card company allows you to pay less that your outstanding balance as a settlement. The portion of debt not paid is called forgiven debt. In other situations a creditor will determine that they cannot collect a balance and they will consider it forgiven debt. When you have debt forgiven, there are several things you have to consider and account for. Some of these things can affect your credit and other can create another type of liability. Before you have debt forgiven determine if it will benefit you. See if the pros...

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How to Avoid Paid But Not in Full

Collection accounts and old debts don't disappear. Even if a creditor stops collection attempts, these delinquent accounts stay on your credit report for seven years. But you can resolve these debts sooner and clean up your report. If you can't afford to pay a debt in full, you can negotiate a debt settlement. A debt settlement offers a practical solution to debt because you can pay off the balance for less than you owe. However, your creditor may report "paid, but not in full," or "settled" on your report, which can do further credit damage. ...

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How to Choose Debt Counseling

For consumers who have a hard time paying their bills, a credit counseling service can offer guidance and solutions. This type of service often offers money management courses, budget counseling and debt relief. While most credit counseling services are reliable, there are some that overcharge and do not offer the type of services they should. If you find a reliable debt counselor, he will not only teach you about personal finances, but will also help consolidate all your debt into an affordable monthly payment if that is the best solution for...

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