The Warning Signs of Debt Problems

Many people worry about going in debt and owing more money than they can afford to pay off. Sometimes, however, it's not immediately obvious that you're heading toward a dire financial situation, because it's easy to get caught up in borrowing and spending without realizing the dangers. You should remember a few things to watch out for in order to avoid debt distress. Credit Card Relations If you're heading toward debt overload, your relationship...

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Penalties for Breaking an Auto Lease

Breaking your auto lease may be a necessary evil if you're compact vehicle no longer comfortably meets the seating requirements of your family size. Terminating your lease contract early can present several problems for you, including financial penalties and damage to your ability to lease in the future. The benefits of lease termination should be weighed against its disadvantages before you make a formal decision. Entire Lease Due If you break your auto lease, your lender may be within its rights to request prompt payment of the entire...

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Secrets to Getting Out of Debt

We are all trying to get out of some type of debt, whether it be credit card debt, school loans, car loans or mortgages. According to Financial Planning, debt is a form of slavery that we usually entered into voluntarily and that keeps us from experiencing financial freedom. You should create a plan by listing all your debts and the minimum required payments each month. Also create a budget that includes all income as well as all monthly bills not...

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How to Settle Old Credit Card Debt

Unpaid debt can have a serious effect on your credit score. This is especially true if the account has been turned over to collections. Collection activity on your credit history can make securing new credit difficult. Consumers with unpaid debt face higher interest rates, difficulty securing housing and challenges landing a job (if the employer checks credit). Setting old credit card debt can help you clean up these problems. Instructions 1...

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How to Access the Credit Bureaus

In the United States, the three major credit reporting agencies are Equifax, Experian and TransUnion. Each company keeps records on people's financial transactions such as credit cards and loans. There may come a time when you need to access the credit bureaus: to see your report, to correct an error, or to notify them of a family member's death. Fortunately, the Fair Credit Reporting Act (FCRA) enables consumers who prove their identity to access the credit bureaus for a variety of possible needs. Instructions 1 Write down why you need...

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Debt Collection and Advice on Free Debt Consolidation for Bad Debt

Falling into debt and not being able to pay your bills is a horrible experience that can leave you grasping for any help you can get. Unfortunately, there are many unscrupulous companies and individuals who are willing to prey on you because of your strong desire to get help. While you have options when facing debts collections, you must use care to carefully determine what your needs are and who can help you. Debt Collections Dealing with...

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How to Update Credit Information

If erroneous information is reported by your creditors, you want to make sure it is corrected. Similarly, you want to ensure positive updates occur as soon as possible. Monitoring your credit reports regularly can keep you informed. While you cannot change credit information with the reporting bureaus yourself, contacting your creditors can ensure corrections are made. In some cases, a rapid re-scoring service might be able to help. Instructions...

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Am I Liable for a Spouse's Debt During Separation?

One of the many tasks facing a couple at separation is what to do about splitting up property and debt. In an age where divorce is common and marriage occurs later in a person's life, many individuals come into a marriage already saddled with substantial debt. While her spouse will generally not be held responsible for her separate debt, it can affect the divorce case in several important ways. Division of Marital Property and Debt In General...

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Can They Take My Taxes if I'm Making Payments on a Defaulted Loan?

When a person owes money on a loan, he will generally face a number of actions by creditors seeking payment. Among the options available to many creditors is garnishment of the individual's wages. Garnishment is not available to creditors in all situations. And, garnishment of tax refunds is almost never available to a private creditor without a court judgment. However, the government may be able to garnish tax refunds. Garnishments When a person owes money on a debt, he may face a civil suit filed by the party seeking repayment. If the...

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How to Sell a Classic Car in Arizona

If you have a classic car that you no longer want to keep in Arizona, you can sell the vehicle on your own. The classic car market is slightly different from selling a regular car as classic cars are typically worth a bit more. As a result, when selling a classic car in Arizona or any other state, you must do things somewhat differently from when you are selling a regular vehicle, such as first getting an appraisal of the vehicle. Instructions 1 Take your classic car to an auto appraiser in your area of Arizona so that you can get a written...

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How to Read Credit Report Numbers

There are three major credit-reporting bureaus in the U.S.: Experian, Equifax and TransUnion. While each has a slightly different format for its credit reports, the numbers on those reports mean the same thing for all three: They show how current you are with your payments. The numbers are contained in the credit history section of your report, which also contains information about your lenders, the account numbers and how long you've had the accounts....

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What Are the Tax Implications of Abandoning a Home Mortgage?

When you walk away from a home mortgage and allow the lender to take the home in a foreclosure, you may have tax implications to deal with afterward depending on how much of a deficit you owe. In most cases, the lender is not able to sell the house for the full amount of the mortgage, especially if you owe more than what the house is worth. With an 'underwater' house, money is still owed to the lender following the foreclosure and sheriff's sale. Foreclosure Once a debtor gets behind on his mortgage payment, after several late payments,...

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Credit File Reporting

Your credit file is the key to your credit history. A good or a bad mark on your credit file can mean all the difference between getting that car loan or the mortgage interest rate that puts home ownership in your grasp. Many people aren't aware of how credit file reporting works. Armed with knowledge of the procedure, you can defend yourself against unfair reports on your file. What's Inside Credit file reporting applies to a limited area of information. The file contains personally identifying facts, such as your name and Social Security...

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Can I Settle a Debt Before I Go to Court?

An enforceable debt is a legal obligation to pay a creditor. If the debtor does not pay her debt or otherwise comply with the contractual obligations between herself and her creditor, the creditor can sue her to collect. A lawsuit does not necessarily mean the case will go to trial. Settlement outside of court may be possible. Settling a Case Settlement is generally always an option right up until the judge issues his final order. Parties do not have to settle, however, and before a settlement is effective or even viable, both parties must...

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How to Remove a Co-Buyer's Name From a Car Loan

A co-buyer is a someone who purchases a car with you and shares the financial responsibility for repaying the loan on time. There are a number of reasons why a co-buyer would want to remove his name from the loan, including a divorce or separation. In some cases, the lender will cooperate with just a phone call, but in general, you will need to refinance the loan. Instructions 1 Call the lender and ask if you can remove the co-borrower from...

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How to Negotiate a Successful Agreement

Embroiling yourself in a lawsuit can quickly turn into one of life's most expensive experiences. Between lost time from work and attorney fees, many litigants see the price of being right quickly exceed what they would have paid out in a settlement. This is not to say that you should accede to every demand, however; employing smart negotiating principles can lead to the achievement of an agreement that will be satisfactory to both parties. Mind...

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What Do I Need to Know About Home Equity Line of Credit?

A home equity line of credit or HELOC is a loan with your house as collateral. If you use a HELOC to pay off your credit cards, you are trading unsecured debt for secured debt. Experts at Illinois Legal Aid and Michelle Singletary at PBS suggest that this places your home at unnecessary risk. The HELOC can work to your benefit if you need money and available sources are limited. How It Works The home equity line of credit is a contract; the...

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What Is Better: Filing for Bankruptcy or Paying Off Debt?

There are several options for paying off and eliminating debt. While filing bankruptcy is an option, it has many serious repercussions. Paying off debt can give you a feeling of success and achievement, helping you to learn more about sound financial management. However, if you have exhausted all other options, then bankruptcy is a viable strategy for getting out of debt and reclaiming your financial future. Different Ways to Pay Off Debt Consulting with a debt counselor can help you to create a plan for paying off and eliminating your...

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How Long Is a Debt Legally Enforceable?

The United States has laws that limit the amount of time a creditor can collect a delinquent debt. However, some debt-collection companies attempt to skirt those laws to force consumers to pay delinquent debts that could be several years old. Consumers who aren't aware of their rights can easily be taken advantage of by those companies. Statute of Limitations Each state has a statute of limitations or a set time in which legal action can be taken over a debt. For example, California allows a company up to four years to file a lawsuit in...

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Is Taking Out a Personal Loan to Pay Off Credit Card Debt Smart?

When you have a lot of credit card debt, one option is to pay the balance with a personal loan. You should not think of this as paying off the credit card, but rather as transferring the balance to a different type of loan. You still owe the same amount, but to a different lender and hopefully with better terms. In some cases, this can be a smart choice, but it also has its pitfalls. Interest Rate Comparison Using a personal loan to pay off one or more credit cards can be smart if the personal loan has a lower interest rate than the credit...

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Can Settlement Money From a Car Accident Be Garnished?

Sometimes, a person involved in a car accident will be compelled to settle with the other party involved in the accident, or his insurance company, for a set sum of money. The party that is financially responsible for the accident will be required to make payment to the other party. If the financially responsible party fails to do so, the other party may sue her in court and, if necessary, have her wages garnished. Car Accident Settlement After a car accident has occurred, the insurance companies representing the drivers will attempt to...

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Credit, Foreclosure and Mortgage Refinance

If you are struggling to make your mortgage payment each month, you are likely concerned about the possibility of losing your home through the foreclosure process. In addition to losing your home, you will also damage your credit. Foreclosure can be avoided, in many cases. Refinancing the loan can provide the relief you need to stay above water. It is important to explore all possible options when trying to save your home. Foreclosure When you default on your mortgage loan, the lender initiates the foreclosure process to legally repossess...

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How to Stop Credit Card Debt in Texas

The state of Texas does not have specific laws to help stop credit card debt, but there are plenty of resources in the state for getting credit card debt problems under control. In most states runaway credit card debt can eventually lead to lawsuits and wage garnishment. Texas law does not allow wage garnishment, taking away one powerful weapon from debt collectors. Instructions 1 Enroll in a debt management plan with the help of a nonprofit...

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Collection Agencies and the Debt Collection Legal Process

All collection agencies serve as third-party debt collectors that either work under contract recovering unpaid debts for other companies or purchase and collect on delinquent accounts from the original creditor. Any debt collector with the legitimate right to recover a debt you owe reserves the right to sue you. When doing so, however, the company must closely adhere to both state and federal regulations regarding the debt collection legal process. Formal Notification Any collection agency that files a lawsuit against you must provide you...

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How to Handle Collection Agencies if You Are Not Working

Handling collection agencies if you are not working requires you to take control of the situation. Paying debts in a timely way is important, but providing for necessities such as food, shelter, and clothing usually is more critical when you are out of work. This means you must clearly communicate your situation to the debt collector, offer to pay only what you can, and stay with that plan until your financial situation improves. It's imperative that you show the debt collector that you are sincere about wanting to pay your debts, but that you...

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Why Is Checking Your Credit Report Important?

Each year, all American consumers are entitled to one free credit report. The reason you are entitled to this free credit report is to promote consumer examination of their personal credit reports. If you had to pay for it, you may be less inclined to check your report. There are a variety of reasons why you should check your personal credit report. Your Credit Report AnnualCreditReport.com is the only site that offers the free annual credit...

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Pitfalls of Debt Relief Agencies

For some people drowning in debt, debt relief agencies are an ideal way to get back on financial track and pay off some old debts. However, if you are not careful, debt relief agencies can cause more harm than good. Credit Score Using a debt relief agency to pay your bills negatively impacts your credit score. Fees Debt relief agencies often charge you a fee for providing the service of negotiating rates and payments with your creditors. However, you can often negotiate similar rates yourself for free. Cost Many debt...

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What Happens If a Payday Loan Is Defaulted?

Payday loans are short-term loans targeted toward people with bad credit. A payday loan is called this because the duration of these loans are only until the borrowers next payday, typically two weeks. This differs from a standard loan, which may be borrowed for a year or more. A payday loan also does not require collateral, as do many standard loans. However, it can be easy for a payday loan to go into default if the borrower does not have the money...

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How to Avoid Collection Agency Scams

With all of the old debts floating around out in "credit limbo," it can be hard to tell which bill collectors are going after legitimate debts and which ones are just going after a random buck. Use these steps to judge whether a credit caller is actually due any money from you, and act accordingly. Instructions 1 Verify information. When a creditor comes calling out of the blue, ask specifically what debt it is they are trying to collect, on whose behalf, and what the delivery date was for services provided. Also get details about interest...

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Which is Best: Credit Counseling or Debt Settlement?

If you have debt problems, you have an array of possible strategies you can try to get your finances back in order. Credit counseling and debt settlement are two options available to you, though neither is a guaranteed solution. Every debt situation is different, and you should always evaluate your finances carefully before choosing what strategy you use to get out from under your debt problems. Credit Counseling Credit counseling services come in a variety of types, many offering quality advice and planning to people with financial problems....

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Proof of Contract Debt Elimination Strategies

Under the Fair Debt Collection Practices Act (FDCA), debt collectors and creditors are required to provide a consumer contractual proof--documents bearing their signature--to be able to prove a debt valid. Without this evidence, a debt can be disputed successfully. Significance When entering into a binding agreement with a creditor, you must sign paperwork accepting the terms of the loan and subsequent payments. Without a contract, the creditor...

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How to Have Clear Judgment

Judgments can certainly impact your life; their negative effects keep you from being able to borrow money or if you do get financing, judgments will cause you to pay a higher interest rate. Time is the only thing that will clear judgments from your record, however if the judgment has not been satisfied, you will have to wait much longer than if you simply paid off your debt and let time do the rest. The statute of limitations on judgments is 20...

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How to Send Money to a Debt Collector

Always use caution when sending money to a debt collector. Though most are legitimate, with no bad intentions, the debt collection and litigation process is complex, requiring considerable paperwork. To protect yourself and your credit history, be sure to request the correct paperwork and send money in a way that leaves a paper trail in case you ever have to prove you indeed made a payment. It's also important to get the terms of your repayment in...

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Government Help for Debt Relief

The United States government offers several ways for struggling individuals and business owners to get out of debt. The type of debt relief program someone is eligible for depends upon the nature of the debts as well as his annual income level and ownership of assets such as a home. (References 1, 3, 4, and 5) Tax Assistance Most types of federal, state and local income tax bills are ineligible for bankruptcy debt relief programs, warns the Internal Revenue Service. Unless the tax bills were incurred at least three years ago, you...

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What Are the Pros and Cons of Consolidating Debt?

Debt consolidation refers to the act of taking out a loan to pay for a series of debts (most likely other loans). If a large loan can be obtained, the person can then pay all other debts with that money and then only have to worry about repaying the single loan taken last. If a large loan cannot be obtained from a bank or financial institution because of bad credit, a loan consolidation company may take over the debts and offer the loan, at usually...

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Tips on Talking Down a Creditor to Pay Off the Debt

If you find yourself drowning in debt, you may not have to resort to hiring a debt settlement company or even filing for bankruptcy. Instead, your first course of action should be to contact your creditors directly to negotiate a settlement. You may be able to reduce the amount you owe or your monthly payments. Be sure that your creditor for your protection puts any settlement agreement you reach into writing. Prepare Your Case Improve your negotiating position by preparing for your contact. Prepare a simple financial statement that shows...

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Spouse Debt Obligation

When you marry somebody, you marry not only that person and his family, but also his debt load. Although the nondebtor spouse generally has no obligation to the debtor spouse's creditors, the existence of this separate debt can complicate the financial lives of both parties. This remains true throughout the marriage and into divorce. Nondebtor Spouse's Obligation Although the nondebtor spouse has no personal liability on the other's separate...

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