How to Settle a Credit Card Lawsuit

Have you ever been sued by a credit card company and wondered how to settle a credit card lawsuit? Due to the current economic recession and loss of jobs, many consumers find themselves having to choose between buying groceries and paying credit card bills. As a result, individuals who once had perfect credit now find themselves with a growing pile of unpaid credit card debt. Finding yourself in such situation can be intimidating, overwhelming...

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What Happens If You Don't Pay Charged Off Debt?

Although a creditor gives up on trying to collect debt when he initiates a charge-off, this does not absolve the debtor from paying it back. What action the creditor takes after charging-off a debt depends mostly on the size of the debt. Either way, a charge-off will probably do damage to your future financial goals. Identification Creditors must charge-off debt to deduct it on their taxes and to complete the transactions in their accounting...

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States in Which Wages Can Not Be Garnished

One of the methods available to a creditor in pursuing an unpaid debt is to file a civil lawsuit against the debtor. If a creditor wins a judgment against you, that creditor can potentially take action against you to garnish your wages. This means that a percentage of each paycheck is paid directly to your creditor to satisfy the debt. At time of publication, only four states do not allow garnishment of wages resulting from a creditor judgment. ...

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How to Handle Old Debt

Once a year, it's a good idea to get a copy of your credit report to review the status. Once you have a copy, you may find some old debts that you had forgotten. Some old debt needs to be handled in a specific manner. The age of the debt will determine what action you should take, if any. When you clean up old debt, you will be able to manage your credit file more effectively. Instructions 1 Check for any debt that you have had for 7 years or longer. If you have debt that meets this criteria, you may choose to do nothing. A debt this old...

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Organizations That Help With Bills

Perhaps you thought about bankruptcy or tapping your friends and family for help when you were beset with financial obligations beyond your reach. Maybe it was because you lost your job or had an illness that resulted in bills that were sky-high. Few people realize that there are organizations that can help you in your time of financial need. And if one organization cannot help you, maybe it can steer you to one that can. American Red Cross ...

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Debt Settlement Strategies

Debt settlement involves settling your debt for less than what you owe. There are many debt settlement companies and organizations that promise to settle your debt for pennies on the dollar. While it is possible to find a reliable debt settlement company, and possible to settle debt for less than what you owe, you generally can negotiate with your creditors without the help of a debt settlement company. And in either situation, you will still end up paying at least a portion of your debt back. Select the Opportune Time to Settle Most creditors...

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What Are Some Debt Cures That Work?

When looking for debt cures that work, turn your eyes from the debt counselors who peddle their services on television. For a fee, they might help you find some measure of debt relief, but before turning over more money to get out of debt, there are steps you can take on your own to help bring down your debt and improve your credit score. Pay Higher Interest Debts First If you are confused about which debts to pay down, start with the higher...

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Does Using a Debt Settlement Company Ruin My Credit?

While debt settlement companies may make you lots of promises, such as cutting your debt by as much as half, you must use caution when dealing with such a company. Often, the way that debt settlement companies negotiate with creditors has a significant negative impact on your credit score. In addition, you may end up with even more debt than you started with. Definition Debt settlement is different from debt consolidation or debt management...

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What Happens If a Collection Agency Refuses My Payment?

Collection agencies work as a middleman for a larger company, or as an independent agency. When you owe a bill to a hospital, credit card company or any other creditor, the company has the right to use a collection agency to seek payment. The agencies may also buy your debt and seek payment from you to make back its money. Collection agencies have the right to refuse partial payment and seek the full amount due. Legal Rights According to Finance House, a collection agency has the legal right to refuse a payment from you, if you pay less...

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Am I Responsible for My Wife's Debt During a Divorce?

Creditors really don't care how marital property and debt are divided in a divorce. They continue to hold both spouses responsible for repaying any debts charged to joint accounts. Unfortunately, how your spouse handles her finances can affect your credit standing long after the divorce. It only makes sense then to take the necessary steps to separate financially from your wife once you file for divorce. Individual Accounts Your wife is responsible...

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How to Set Up a Payment Plan With Collection Agencies

Collection agencies do not simply threaten consumers; they may also work with a consumer to arrange a payment plan for a past-due amount. Creditors, after a certain point, hire collection agencies to attempt to collect money owed. Collection agencies charge creditors a fee which is typically a portion of the collected money. Setting up a payment plan with a collection agency begins with a person reviewing all debts he owes. This helps determine,...

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How Can I Get Rid of My Debt?

Getting rid of debt is something that many consumers are struggling to do. Debt elimination requires more than making sure you pay your bills. In order to get rid of your debt completely, you need to devise a plan and stick with it. Willpower and financial planning can help you to realize your goal of eventually eliminating debt. Budgeting Budgeting your money requires you to list out your monthly obligations and expenses and compare them...

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Dangers of Settling Your Debt

If you can't afford to pay off your entire debt, you may be able to negotiate a debt settlement. With debt settlement, your creditor agrees to allow you to pay off your entire debt with one lump sum payment that is less than the amount you owe. Occasionally the creditor may agree to a payment plan as well. You can choose to negotiate directly with your creditor, or you may hire the services of a debt settlement firm. The dangers of debt settlement include long-term credit ramifications and possible legal action. Credit Ramifications In...

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How to Freeze Interest Payments on Credit Cards

The Credit Card Protection Act has many provisions to protect consumers from sudden rate changes and relieves them of honeymoon interest rate increases. But the unintended consequences have come along with it, prior to the Credit Card Protection Act being passed, credit card companies, in order to avoid losses, raised interest rates and imposed fees ahead of the law. For consumers struggling with credit card debt, there are options to more effectively...

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Christian Agencies That Help With Tax Debt

Christian credit counselors help their clients manage debt and become debt free. Christians believe that the Bible tells them they cannot owe money. Because they may only serve one master, Jesus Christ, having any other master is taboo. When you owe tax debt to the government, the government becomes a second master. Christian credit counselors work with their clients using Christian values and principles, but non-Christians are welcome to avail themselves of the services. Christian Debt Counselors The Better Business Bureau gave Christian...

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Statute of Limitations on Debt in Iliinois

The Statute of Limitations is a defense that debtors can use against creditor collection efforts: If a debt is outside the statute of limitations, the creditor can no longer legally enforce payment of the debt. In Illinois, the length of the statute of limitations depends largely on the type of debt owed. Open Accounts The Illinois statute of limitations on open accounts, such as credit card and charge accounts, depends on whether there was...

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Credit Debt Consolidation Counseling

Debt consolidation isn't the best debt relief option for everyone, so it may be helpful to work with a credit counselor to fully understand all the options available for your specific circumstance. You must be committed to paying off your debt when you take on a consolidation loan. By making the right choice in your debt payment strategy, you will avoid falling further into debt and regain control of your finances. Credit Counseling Those who are struggling to make payments on their debt each month or have trouble coming up with a reasonable...

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What Do You Do If a Credit Reporting Company Does Not Remove a Bankruptcy From Your Credit Report?

One of the worst effects of declaring bankruptcy for the filer is the damage it does to his credit score. After having the majority of his debts written off, a person will usually see his credit score heavily damaged. Fortunately, according to U.S. law, the record of a bankruptcy can only appear on an individual's credit report for a maximum of 10 years. Yet, in some cases, a credit reporting company will inadvertently keep the bankruptcy on the report. Types of Bankruptcy Personal bankruptcies come in two types---Chapter 7 and Chapter...

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Can Collection Agencies Leave a Recorded Message With a Client's Name at Their Place of Work?

Collection agencies must follow several guidelines when they communicate with individuals or third parties in an effort to collect a debt. Most importantly, they are not allowed to engage in any act that violates an individual's privacy, which would prohibit leaving revealing recorded messages at a workplace. Significance According to the Federal Trade Commission (FTC), the government agency that implements the Fair Debt Collection Practices...

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What Is SEMA & GEMB on My Credit Report?

The information on your credit report comes from a variety of sources. One source could be a bank, such as GE Money Bank, represented as "GEMB." Another possible source is from a survey of retailers, such as with the Specialty Equipment Marketing Association, i.e., "SEMA." Credit Reporting Sources Retailers often offer financing in order to make products affordable to consumers, but retailers are not banks. Instead of directly offering credit...

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How to Use Multiple Credit Cards

As long as you can avoid the impulse to go into debt, having multiple credit cards can be an excellent way to maximize the benefits of each. Instructions 1 If you're looking to transfer a balance, keep an eye out for promotions in the mail or online for new cards that offer 0% APR for all balance transfers (usually for 12 months). Often, a fee applies for the balance transfer. Crunch some numbers and do the math: is the interest you'll...

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Can VA Benefits Be Garnished?

When a person owes a significant amount of money on an unpaid debt, the creditor may try to forcibly collect payment on the money owed. In this case, the individual may be the subject of a garnishment -- a forcible seizure of the person's wages or other income. While most forms of income can be subject to garnishment by private creditors, federal benefits, such as VA benefits, cannot be. Garnishment In order to garnish a debtor's wages, the creditor must first win a lawsuit in which he is awarded damages. A creditor will usually file a...

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How Does FICO Affect Your Credit?

Your FICO score is the version of your credit score most frequently utilized by lenders when you apply for a new credit card or loan. Housing agencies, insurance companies and certain employers also review your FICO scores. Each FICO score ranges from 350 to 850, with higher scores being preferable to lower scores. The information on your credit report determines your FICO score. Together, your credit report and your FICO score determine your overall creditworthiness. Creditworthiness Your creditworthiness, often referred to simply as your...

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About a Debt Reduction Form

Clearing debt is a goal that several consumers would like to achieve. However, simply making the minimum payment each month on credit cars and loans does very little towards moving the balance. People that have several different creditors often find it difficult to manage their expenses wisely. One unfortunate outcome is increased debt in the form of charges and fees. A debt reduction form is a simple way to begin organizing finances and developing...

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Student Credit Options

Getting higher education typically improves earnings in most careers, but you have to pay for that post-secondary degree. It's not unusual for a single credit to cost $200 to $400 as of 2011, and many students have trouble funding their education upfront entirely on their own. This leads them to seek student credit options. Credit Cards Student credit cards operate in the same way as non-student cards. That is, the students charge against...

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Simple Instructions Ways to Pay Off Debt

Credit card problems can sneak up on you and getting into debt is relatively easy. When you charge everyday items on credit cards without paying them off monthly, you might have an issue. If you want to pay down your debt, you need to encase your credit cards in a block of ice in your freezer. Once you do the obvious--stop compiling new debt--there are techniques and actions that can help you reduce your debt faster. Pay More Than The Minimum...

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How to Change My Bad Credit History

As a consumer, you have a file, or credit report. Your file contains information, such as your address, Social Security number, outstanding amount on each of your debts and bankruptcies, if any. Your credit report also reflects your payment history. Creditors and landlords avail themselves of the information in your file to determine your creditworthiness. A negative credit history can prevent you from obtaining credit or qualifying for a lease. Fortunately, you can change a bad credit history. Instructions 1 Request a free annual copy of...

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How to Become Debt-Free the Easy Way

Being in debt can wreak havoc in your life. Worrying about mounting debt can make you stressed and quick to anger from all the tension. Getting out of debt eases the strain and allows you to better prepare for inevitable financial crises in the future. It is easy to get out of debt if you are determined to sacrifice for a short while to ensure a debt-free future. The process takes consistency, a single-minded commitment and building new financial...

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How Does Canceled Debt Affect Your Income Tax Liability?

Canceled debt may seem to have nothing to do with your tax liability, but under many circumstances, you could be taxed on the amount of your canceled debt. If a creditor cancels any of your debt, the creditor generally will send you a tax information form that you must include when you file your taxes. There are certain situations in which you can avoid paying tax on your canceled debt. Canceled Debt Generally speaking, if you owe any creditor a debt, it usually is due to some benefit you have received. For example, if you have an outstanding...

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Why Can I Only View Credit Reports Once a Year?

The federal government mandates that all U.S. residents are entitled to a free copy of their credit report from each of the three major credit bureaus each year. However, you are not limited to these reports. You can purchase a credit report any time you want, and there may be situations in which you are entitled to additional free credit reports. Free Yearly Credit Reports You can get a free copy of your Experian, Equifax and TransUnion credit reports once each year through the Annual Credit Report website. You must go to this website;...

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How to Be Free of PDL Debt

A payday loan, or PDL, is a type of high interest loan that can trap consumers in a seemingly endless cycle of debt. The consumer takes out a small loan to tide over until a paycheck, but the high interest rates on the loan cause the individual to pay more money, which results in another payday loan. The cycle continues to grow until the debts are high and the individual is stuck in a bad situation. Getting free of PDL debt results in better finances...

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Debt Handling Guide

Even if you're able to make your minimum payments each month, excessive debt can stop you from getting a mortgage or auto loan, because lenders prefer applicants with a low debt-to-income ratio (percentage of your income that goes to debt payments). But take heart -- even if you're drowning in debt, you can still improve your finances. Learn to tame your debt and get rid of your credit card balances. This will improve your personal finances and increase...

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What Happens if You Can't Pay Back a Student Loan Due to No Money or a Job?

The consequences of defaulting on a student loan --- whether it's a government-backed loan or a private loan --- can be substantial and long-lasting. Not having the money to pay or being unemployed usually isn't a good enough reason to have your loan forgiven or discharged, although there are exceptions. The typical avenues pursued by lenders and the government in cases of student loan defaults include wage garnishment, tax return confiscation, lawsuits and collection agency involvement. Types of Student Loans Education loans are types...

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How to Pay Your Sprint Cell Phone Bill Online

Many companies, government agencies and utilities offer the convenience of online bill payment options. Sprint offers its customers a number of payment options, including online, by mail, by phone and pre-authorized payment. Sprint is one of the largest telecommunications service and product providers in the United States. As of 2010, Sprint serves more than 48 million customers across the country. Sprint was also the first U.S. national carrier...

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The Advantages of Going Into Foreclosure

Foreclosure is rarely a good idea; a black mark on your credit that can make getting another mortgage or other credit difficult for years, a foreclosure tells creditors that you were unable to meet your obligations. However, there are times when a foreclosure is the lesser of two evils, and can have financial advantages. Impossible to Refinance ARM Adjustable rate mortgages, or ARMs, often make mortgage payments impossible for home buyers who are not prepared for payments that will go up hundreds or even thousands of dollars when rates...

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