Sound Financial Debt Ratio

Keeping debt within reasonable limits is the key to both financial freedom and a stellar credit score. However, it is sometimes difficult to know what the boundaries for spending are. Financial experts have created guidelines to assist consumers in determining when to stop spending so that they may be eligible for the best interest rates and financial opportunities down the road. Debt Utilization Ratio Debt utilization ratio refers to the...

Read More

Credit Reporting of Bills Paid

Building your credit score takes time. During the building process, avoiding negative reporting is a must. Focusing on maintaining positive relationships with your creditors is your primary goal. As long as your creditors report your payment history to the three major credit bureaus, your score will increase each month you remain in good standing. Credit Report The three major credit bureaus compile consumer credit reports to track your history as a borrower. Credit reports contain a listing of your trade lines, personal information, inquiries...

Read More

Can Debt Relief Take Care of Debt When the Account Has Been Turned Over to a Collection Agency?

A person must pay his debts or face the possibility of lawsuits. However, in some cases, rather than sue, creditors will sell an individual's debt to debt collection agencies, or they may hire these agencies to act on their behalf. Whether a person can receive debt relief after a debt has been turned over a collection agency will depend on several factors. Types of Debt Relief The term debt relief can refer to several kinds of debt management practices. One of these is debt consolidation, in which an alternate lender agrees to provide a...

Read More

How to Reduce Your Debt Safely & Legally

If you're hesitant to answer the phone because of constant calls from debt collectors or afraid to check the mail lest you discover yet more bills you cannot pay, working with your creditors to reduce your debts through debt settlement or credit counseling may be your best option. Credit counselors can create a budget-friendly repayment plan for you to help you manage debt while debt settlement allows you to take control of your financial situation...

Read More

Can a Collection Agency Make You Appear in Court?

Collection agencies employ a number of different strategies to get you to pay the monies owed on your account. From making harassing calls to your home or job to sending threatening letters, it can be hard to know which methods are effective and which are just tactics being employed to get you to pay your bills. Particularly when it comes to legal action, you may wonder if, in fact, a collection agency can force you to appear in court. Collection Efforts Collection agencies may go through a number of steps to get you to pay up on your debt....

Read More

Debt Payment Programs

Without making a plan to pay off your debt, you're likely to remain trapped in debt for the rest of your life. Buckling down can be difficult, but there is help available if you feel that you need it. Look for the debt payment program that fits best with your personal financial situation. Self-Payment Plans In a self-payment plan, you simply look at your debts and budget your money to pay them off quickly. Personal finance author and speaker...

Read More

The Statute of Limitations on Unpaid Payday Loans

A payday loan is a short-term loan, generally lasting between several days and a month, in which the borrower is charged an exceptionally high rate of interest. If a borrower defaults on a payday loan, the lender is legally allowed to try to collect the money owed him. He can do this through a number of different means. However, he can only pursue collection before the expiration of the statute of limitations on a loan. State Laws The statute of limitations on a payday loan will vary depending on the state in which the payday loan was issued....

Read More

Massachusetts Laws on the Repossession of Auto Loans

In Massachusetts, auto lenders can recoup their losses from debtors who do not pay their loans by repossessing and re-selling their vehicles. Lenders must follow certain procedures, such as sending proper written notice and giving the debtor enough time to respond, before they can repossess vehicles. If you refuse to allow the lender to repossess your vehicle, the lender must get a court order to do so. Written Notice Requirement In Massachusetts, if a person defaults on a car loan, the lender must send him a written notice called a "right...

Read More

Loan Debt Problems

Someone who has too many loans without enough income can soon find themselves with serious debt problems. Once on the slippery slope of having too much debt, it can be hard to climb back up. However, there are solutions and options available to help people who find themselves in this predicament. It may take time and test your patience, but following some standard steps can help resolve loan debt problems. Identify Problem To identify a problem,...

Read More

What Kind of Information Is Required in Lending Loans?

When a person seeks to take out a loan, he will generally be required to furnish the lender with a significant amount of information before the lender will allow him to borrow the money. This lender uses this information to determine the borrower's creditworthiness -- the likelihood that he will pay back any money loaned to him. The lender will likely request that the borrower provide him with a number of documents attesting to various aspects of his financial history. Income Most lenders will request that the borrower provide documents...

Read More

How Do I Get a Free Annual Credit Score?

According to the Federal Trade Commission (FTC), the only official and legitimate website that offers a free annual credit report is Annual Credit Report. The FTC warns that other sites claiming to offer free credit reports typically entice consumers to sign up for free trials for financial services that quickly become paid subscriptions that may be difficult to cancel. Instructions 1 Go to the Annual Credit Report website, select your state...

Read More

How to Get a High Credit Score

Most of us want to know our credit scores. But knowing your credit score and knowing how to improve it are two different things. A credit score is a number that provides a quick estimate of how good a credit risk you are. There are several credit score systems, but the one that is by far the most common ranges from a low of 300 to a maximum score of 850. This is the FICO score named for Fair, Isaacs &Co., who provide this credit score system to businesses. This guide will explain how your FICO score works and how to get a high credit score....

Read More

How to Place a Judgment Lien on a Car

Collecting a debt that the debtor refuses to pay is a frustrating process for any creditor. Fortunately, the law allows you specific collection remedies if you hold a judgment against an individual who owes you money. A judgment holder has the right to attach a lien to the debtor's car title and use that lien to repossess the vehicle. The judgment holder can then sell the vehicle in an effort to collect the debt. Even if you have no intentions of...

Read More

How to Add Credit Lines to Your Credit Report

Each record of debt that appears within your credit report is called a "trade line". A trade line contains all important information about the debt such as the type of debt it is, how much you owe, the company making the report, and the payment history on the account. The trade line of each debt on your credit report must also reflect the contact information for the company reporting it. There are two types of trade lines that consumers may add to their credit reports: revolving debt, such as credit cards, and installment debt, such as loans....

Read More

How to Consolidate Secured Debt Into One Loan

Many times when you look over your finances, you realize you have more than one loan tied to your home. Looking closer, you may see a big difference between the rates on the first mortgage and second (and maybe even third). It's time to consolidate when you can combine the two loans into one and save money per month and in interest in the long run. A good rule of thumb: Consider consolidation when you get at least 1 percent difference in your monthly mortgage rate (not the APR). If you can get a 2 percent difference or more, definitely consolidate....

Read More

Debt Prevention

Debt includes monies owed to creditors and lenders. Buying a house or car often involves getting a loan due to the expensive nature of these items. Maintaining a good credit score calls for managing debt well. You can reduce your debt and prevent debt on credit cards with a few simple tips. Budgeting Budgeting is key to preventing debt. Balances on credit cards increase when consumers use their cards to make everyday purchases. Credit cards are helpful in emergencies but they shouldn't be used to fulfill every desire. Plan out a monthly...

Read More

Will Any Payment on Debt Prevent Debt Collectors?

A payment on a debt can prevent debt collectors from taking further action against you, such as the filing of a lawsuit. Debt lawsuits can lead to court judgments and garnishment of your bank account or wages. Instead of ignoring debt collectors, communicate with them about your situation and negotiate a payment arrangement that you can afford. Default Judgments Ignoring debt collectors and legal notices can result in a so-called "default judgment" in civil court. A default judgment is a legal decision signed by a judge after you fail to...

Read More

How to Apply for Government Funding for Bills

There are federal, state and local agencies available to help with your bill-paying problems. LIHEAP (Low Income Home Energy Assistance Program), for example, is a federal block program administered at the state level to assist people with their energy bills. Other agencies are available at the state and local levels. If you qualify, you can get help with utility bills, mortgage and rent payments and medical bills. The key is knowing where to look,...

Read More

What Is Fixable Credit?

Not everyone has perfect credit -- the type of Fair Isaac Corporation (FICO) scores that get you the best interest rates on everything from homes to cars -- but you can improve your credit scores over time. Your FICO score is comprised of your credit score from each of the three major credit reporting agencies: Equifax, Experian and TransUnion. Those with the best credit have scores above 700 (850 is the highest score). At-risk consumers, those with scores in the 600 range, can take simple steps to improve credit ratings. Consumers with below-600...

Read More

How to Cancel Joint Credit After a Divorce

Divorces typically involve the dividing of assets, the selling of property, the elimination of joint bank accounts and the cancellation of joint credit accounts. Canceling joint credit accounts after a divorce is imperative. Failing to do so can mean that one spouse remains liable for debt accumulated by the other spouse after the divorce -- which can spell trouble. Instructions 1 Delete your spouse's name as an authorized user if you opened the account originally and had your spouse's name added simply as an authorized user. Contact the...

Read More

What Happens if You Have Credit Card Debt and You Don't File Bankruptcy?

Heavily reliance on credit cards can have a serious detrimental effect on your personal finances---as your credit card balances climb, you might find it difficult to make your minimum monthly payments. Eventually, over-the-limit fees, interest charges and late fees can drive your balances so high that bankruptcy may be an appropriate option. However, if you choose not to file bankruptcy, overwhelming credit card debt can still have serious consequences....

Read More

When Do Negative Marks Drop Off Your Credit Report?

Your credit report is extremely important because it's used by lenders, landlords and even some employers to understand your level of financial responsibility. The best way to keep your credit score healthy is to avoid accruing negative marks. However, if you already have blemishes on your report, usually only time will eliminate them. Bankruptcy The two primary forms of personal bankruptcy, Chapter 13 and Chapter 7, stay on your credit report for 10 years. Both the date of your filing and the date of discharge are marked on your credit...

Read More

How to Verify Financial Statements

Verifying financial documents is important for many reasons. For example, companies for sale may offer incomplete financial information for fear that a full disclosure could negatively affect the sales price. Or an entrepreneur applying for an unsecured loan could offer financial statements that inflate his income to qualify for the loan. Some people may also have reasons for under-reporting their income, especially in divorce or child support cases. Verifying financial statements is possible in several ways. Instructions 1 Request audited...

Read More

Can You Be Discharged From Personal Private Student Loans?

Obtaining a private student loan can be as easy as calling a lender on the telephone or filling out an online application. While you can easily be approved for tens of thousands of dollars within minutes, the repayment obligation could potentially last a lifetime. There is no such thing as loan cancellation or loan forgiveness when it comes to private student loans. Bankruptcy Law Even though most other forms of consumer and personal debt such as car loans, credit cards and mortgages can be discharged through bankruptcy proceedings, bankruptcy...

Read More

What Happens If Your Wages Are Garnished & You Are Laid Off?

Creditors use wage garnishment to recover debts that you do not pay voluntarily. If your creditor wins a civil judgment against you via a lawsuit, it uses its civil judgment as grounds for requesting a wage garnishment order that it subsequently delivers to your employer. Once it receives the wage garnishment order, your employer complies by withholding the maximum amount of your wages permitted under the law and remitting the funds to the creditor as partial payment for the debt. This process continues until you either pay what you owe in full...

Read More

Getting Out Of Debt: Know Your Alternatives

Alternatives are available to help you erase your consumer debt and improve your finances. Excessive debt can take a large percentage of your monthly income, and high debts can result in a reduced FICO credit rating. Low ratings hinder your ability to buy homes and cars, and to get a credit card. However, debt elimination is possible, as long as you know your options. Self-Help Methods Getting out of debt doesn't necessarily require the help...

Read More

What Credit Checks Are Done For a Credit Card Application?

A credit card application is a very common financial activity, and credit card companies are well versed in dealing with these applications. As part of the process, the company will order a basic credit check for the borrower in question, which yields pertinent financial information and shows the FICO score, the common credit score referred to by many financial institutions. This credit check is one of the most important parts of the application, but even borrowers with bad credit can often find a way to get cards. Credit Checks Credit...

Read More

Does Unemployment Count as Creditable Income for a Car Loan?

A person who loses his job may still need to purchase an automobile. Rather than spend cash to buy the car, the person may wish to take out a loan to help with the purchase. However, this may be difficult, as many lenders prefer that people who take out car loans have a steady income. Unemployment benefits may count as income in some contexts, but because they are temporary, lenders may or may not consider them creditable. Car Loan Criteria When a person applies for a car loan, the lender will want to be reassured that the person is capable...

Read More

How to Get Approved for a Credit Card With Bad Credit by Paying a Deposit

If you are struggling with debt or simply just bad credit, your options for financing are limited. Most major lenders will not lend to consumers with poor credit, and nearly all local credit unions and banks only finance those with excellent credit. However, you do have one guaranteed option: a secured credit card. To obtain a secured credit card, you need to make an initial deposit. Instructions 1 Check your credit first. You may have the...

Read More

How to Get Help With Computer Financing With Bad Credit

When you have bad credit, it may seem impossible to get enough money to finance a computer. But just because you have bad credit, you don't have to put your dreams of entering the technological world on hold. There are several options available to get your computer financed, even while having a bad credit score. Instructions 1 Rent to own the computer. Although you could possibly end up paying twice as much in interest fees, virtually anyone can get a computer by renting to own it. These companies don't do a credit check so they absorb...

Read More

How to Reinstate My License After Suspension Due to Back Child Support in Georgia

Having your license suspended in Georgia due to back child support makes routine activities difficult, such as getting to work or school. Your license can be suspended in Georgia if you pay court-ordered support and are behind in payments by the equivalent of two month's worth of normal or back-owed amounts. You are not legally allowed to drive while your license is suspended and are subject to arrest, fines and imprisonment if caught driving. ...

Read More

Is There Consumer Credit Counseling for Senior Citizens?

Anyone who is having debt management problems, including senior citizens, can take advantage of credit counseling. Seniors are often on fixed incomes, which adds an additional challenge to their debt issues. Legitimate nonprofit credit counseling companies tailor their services to individual clients, including seniors, and offer various options based on the client's specific financial resources and obligations. Definition Consumer credit counseling means contacting a counseling firm to discuss your financial situation and get suggestions...

Read More

How to Pay Off Debt in Three Steps

This is a simple three-step guide to paying off debts based on your financial personality. Instructions 1 Make a list of all of your debts, including the name, balance, minimum payment amount, and interest rate. 2 If meeting small, incremental goals or milestones keeps you motivated, divide each balance by the minimum payment, then sort the list from the lowest result to the highest. If you are good at keeping your eyes on the prize no matter how far off it seems, sort the list from highest interest rate to the lowest. The first method...

Read More

Can You Refinance Your House With Your Car Payment Included?

There are many options when it comes to debt consolidation, including refinancing your auto loan in your home mortgage. This not only reduces the number of bills you pay on a monthly basis, it also has other benefits. Lower Your Payments Refinancing your house to include your car payment may reduce your overall expenses for the month. You may also choose to reduce your insurance coverage and lower this expense as well. Lower Interest...

Read More

Can a Credit Card Company Place a Lien in Texas?

If you fail to pay back credit card debt, your creditor can file suit against you in a court of law. Texas is one of a few states that prohibits creditors from seeking wage garnishment as a way to enforce a judgment. However, a creditor can plain a lien against your nonexempt property, as defined by Texas statute. Statute of Limitations If you don't pay back credit card debt in Texas, a credit card company cannot place a lien against your...

Read More

How to Remove a Lien on a Property

Discovering a lien when youre trying to sell or refinance a home or other piece of property can be unsettling. But it doesnt have to be a deal breaker. Here are steps you can take to prevent the problem--or address it when it occurs. Instructions 1 Obtain a copy of your credit report and check it for liens. 2 If any lien results from outstanding debt, pay it off. 3 In either case--after the debt has been repayed, in the second--provide written proof that you have satisfied the debt and ask the lender to remove the lien. Be...

Read More

How to Pay Off Credit Cards Sooner

Credit card debt can be very intimidating. Whether you had to make a large purchase by credit or your spending simply got out of hand, it can seem like you will never be able to pay more than the minimum payments on every account. This can leave you paying hundreds, if not thousands, of dollars in interest over the years. According to financial experts such as Dave Ramsey, there is an effective way to pay off your debts quickly while remaining psychologically...

Read More

How to Recover Bad Debts

Bad debts are accounts that a business has reported as a loss to the Internal Revenue Service (IRS) because they have been unable to collect the balance. This process is done for accounting purposes. The account is removed from the companys receivable listing. An account is considered a bad debt when there has not been a payment received in 180 days. Many businesses forward their bad debt accounts on to collection agencies for further collection activities. Recovering bad debts can be difficult, but it can be done. There are specific strategies...

Read More

Can a Creditor Garnish a Joint Bank Account?

One of the harshest, yet most effective, ways in which a creditor can obtain the repayment of a debt is by garnishing funds from the bank account of an individual who owes it money. This is done by suing the debtor in court and winning. If a debtor refuses to pay the damages awarded the creditor, the creditor can petition the judge to seize the damages from the debtor's bank account. Joint bank accounts can be garnished, but only funds of the person who owes the money. Debt Collection When a creditor is seeking payment of money from a legally...

Read More