Ideal Range for Consumer Debt

Consumers' ideal debt range is linked to their income, current amount of debt, and future plans, which may include a home purchase. People have to determine for themselves whether they're carrying too much debt by taking an inventory of their monthly expenses and comparing those costs with the amount of income they earn each month. Generally, consumers can avoid financial problems if their debt payments take up less than 20 percent of their income. Debt-to-Income Ratio A Rutgers Cooperative Extension Service article titled "How Much Consumer...

Read More

Step-by-Step Process of Credit Repair

Negative credit can result in the denial of loans, insurance, and employment. It can result in higher rates for standard services like cell phones. Therefore, it's important to know your credit score and to take steps to improve it. The following strategies will help. Removing Negative Items The process of credit repair begins with understanding your credit report. You are entitled to one free copy per year from each of the major bureaus--Equifax, Transunion, and Experian. According to Bankrate.com, the reports from each bureau are...

Read More

How to Remove a Deceased Husband's Debt From My Credit Report

Your credit report is a record of how you have managed your credit accounts. A deceased spouse's debt should not appear on your credit file unless you are a joint owner on the account. The Fair Credit Reporting Act allows you to dispute your deceased spouse's accounts, request an investigation and have his debt removed from your credit report. Instructions 1 Verify the debt information. Verify that you are not a joint account holder on...

Read More

How to Get Help Paying Medical Bills Debt

You can get help paying medical bills debt from a variety of sources. Whether due to a catastrophic illness or loss of a job, there are ways to find relief from medical bills. Instructions 1 SCRUTINIZE HOSPITAL CHARGES: Did you know that 80% of hospital bills are wrong? That is an amazing statistic. From overcharges for items used or unused but billed for, to charges for services that never took place, hospital bills are full of errors....

Read More

How to Manage Settlement Risks

Settling a past due or delinquent account allows you to clear outstanding debt at a reduced rate. A debt settlement can adversely affect your credit rating and leave you susceptible to lawsuits if the settlement is not properly documented and followed as agreed upon by both parties. By managing the terms of your debt settlement agreement properly, you can be sure you and your credit report are protected against incorrect information. Instructions 1 Prevent a negative or derogatory report on your credit rating. Ask the creditor to report...

Read More

Fast-track Method to Get Out of Debt

According to Bankrate.com, the average household debt in the United States is $14,500, as of 2011. If you are simply making the minimum payment on your credit cards, it can take years to pay off those debts. Spending $1,000 on a credit card takes an average of 22 years to pay off. If you have an excessive amount of credit card debt, you can reduce this debt faster using the fast-track method. Review Before solving your debt problem, get the...

Read More

Difference Between Debt Consolidation & Debt

When people decide to dig themselves out of debt, they often consider using debt consolidation to reach financial freedom faster. However, debt consolidation actually ends up adding to debt, so it's vital to remain 100 percent committed to paying off your debt and keeping it paid off if you decide to use consolidation. Otherwise, you could end up even further in the red. Debt In simple terms, any money you owe is debt. You may have credit card debt, or debt in the form of a mortgage, vehicle loans or student loans, for example. The amount...

Read More

Tips to Help Relieve Debt

When you are looking for debt relief, knowing you available options may save you time and money. Programs such as credit counseling and debt management plans help with negotiating a resolution. Budgeting is an important part of debt relief. According to the Federal Trade Commission, the first step in taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. Credit counseling Credit counseling and debt relief services are an option if you have trouble maintaining...

Read More

Can Self Employment Income Be Garnisheed for a Collection in Colorado?

In most cases, getting behind on your credit card or installment loan payments results in phone calls and letters from your creditors or collection agencies. However, if you do not work out an agreement to catch up on your debt payments, a creditor may take steps to garnishee your earnings. Garnishment is the process of taking a portion of your wages out of your paycheck to apply toward your debt. Colorado permits garnishment of both traditional employer wages and self-employment earnings. Procedure A creditor seeking garnishment of self-employment...

Read More

How to Freeze Credit Report Information in Virginia

Consumers residing in Virginia can request a freeze on their credit reports. The freeze prevents creditors from pulling their credit file. This is useful for those concerned with identity theft, or who have been victims of identity and credit fraud. Contacting the three major credit bureaus (Experian, Equifax and Trans Union) and requesting a credit report freeze will significantly reduce such risk. You can request a temporary or permanent freeze...

Read More

Can Unpaid Medical Bills Hurt Your Credit?

If you do not have insurance or your insurance does not completely cover a hospital visit or expensive treatment plan, you could end up with unexpected medical bills that you cannot afford to pay. Unfortunately, unpaid medical debt that ends up on your credit report can severely damage your credit rating--leaving you ineligible for loans and lines of credit you apply for in the future. Collection Accounts Hospitals and doctors offices do not directly report to the credit bureaus. After all attempts to procure payment from you fail, however,...

Read More

Customized Debt Management Plan

The phrase "debt management" has different meanings for everyone, but it is necessary when you either have a small or fixed income or are trying to get out of debt. To formulate your customized debt-management program, you need to understand basic money-management ideas and then tailor those rules and ideas to your particular situation. Credit Cards Credit cards are the primary reason that many people get into and stay in debt. You will need...

Read More

How to Find a Reputable Credit Counseling Service in Your State

Credit scams tend to abound these days, and unscrupulous credit counseling services can rip off unsuspecting consumers-especially since consumer debt management is a highly profitable business. However, there are credit counseling services in your state with untainted reputations who offer high-quality debt management services for FREE or at reasonable prices. These tips will help you find a reputable credit counseling service in your area. Instructions 1 Check out the National Foundation for Credit Counseling Services (NFCCS) website to...

Read More

Am I Responsible for My Spouse's Credit Card Debt?

Spouses with irresponsible spending habits or poor money management skills not only cause stress in a marriage but may also impact your ability to obtain loans, qualify for rentals and even to be hired for certain jobs. Maintaining separate accounts generally keeps your debts separate; however, in some instances collections officers may still get in touch with you over debts that belong solely to your spouse. Type of Account If you have kept...

Read More

How to Repay Debt

When you have outstanding debt there are several ways to go about repaying it. The way you pay your debt will determine the shape of your credit score and it will establish how long you will be in debt. Establishing an effective and efficient repayment plan will save you money in terms of the amount of finance charges you receive on a regular basis. Some forms of credit don't have clear cut repayment plans. In other words you don't know when the debt will be paid off. Instructions 1 Determine how much debt and how many creditors you have....

Read More

Help With Funeral Bills

Help with funeral bills may be available from local charities in your community and possibly from local governments. However, family members are usually expected to pay for funeral costs as they tap into savings accounts or the assets of the deceased, such as a life insurance policy. Help from charities and local governments is generally available only when the deceased left behind little of value and family members simply cannot afford to help. Veterans Affairs Qualified military veterans may be eligible for some free funeral benefits...

Read More

How to Get a Scholarship at Ball State

Ball State University is located in Muncie, Indiana. Classified as a research university by the Carnegie Classification of Institutions of Higher Education, Ball State's tuition at the time of publication is $7,912 per year for in-state students and triple that, $21,892, for out-of-state students. Those applicants who are accepted to study at Ball State University may wish to obtain scholarships that will greatly reduce, or cover completely, the...

Read More

Can Leasing an Apartment Help Increase Your Credit Score?

When a person takes out a lease on an apartment, he signs a contract agreeing to pay the landlord of the property a certain amount of money over a certain period of time in exchange for use of the property. While this contract may resemble a loan in some ways, tenants generally pay for a lease upfront and do not receive use of the apartment on credit. Renting an apartment generally does not increase a person's credit score. Credit Scores Credit scores are computed through information related to your lending history. If you are late paying...

Read More

Is a Spouse's Property Exempt From Debtor Judgment?

Nine of the 50 states are so-called community property states, which treat almost everything acquired during a marriage as belonging to both spouses. These states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. Spouses in these states are thus most vulnerable to debtor judgments against the other spouse. The other 41 states are called common law or equitable distribution states, where the rights of...

Read More

Do I Have to Pay My Mother's Debt When She Dies?

When a person dies leaving debt, that debt is often paid --- either partially, or in full --- depending on the amount of the deceased person's remaining assets. Typically, a child is not personally liable for their deceased parent's debts and is not expected to pay any debts with their own money. Usually, the only impact a deceased's parent's debt has on children is a reduction in the amount children inherit. Probate If your mother's estate is large enough to be probated, her debts will be paid during the process. In probate, the executor...

Read More

How to Change the Due Date on Auto Insurance

Changing the due date on your auto insurance policy is important if you are having trouble making the payment on the current date. Paying your insurance on time is extremely important, because the insurance company has the right to cancel your policy if you miss a payment. Generally, there is a grace period, but you could find yourself in a critical situation if you are involved in a car accident and you missed the due date, allowing your policy to lapse. The insurance company could say your policy was no longer valid because of the missed payment....

Read More

Help for Senior Citizens With Credit Card Debt

Credit card debt for senior citizens jumped 217 percent between 1994 and 2004. Even though seniors tend to spend credit on essentials, such as food and utilities, there's little help for them that's not available to anyone else. Unlike younger people, senior citizens are more likely to have the ability to ignore the debt with few consequences. Considerations Seniors may be able to ignore debt because they often have no assets, such as a home, that lenders can pursue in court. If a senior is judgment proof, creditors frequently write down...

Read More

Consumer Rights for Credit Collections

Collection agencies are notorious for their strong-arm tactics in trying to collect debt. Federal law is clear, however, that debtors have the right not to be bullied by collection agencies. Debt Collection Law The law that governs consumer rights in debt collection is called the Fair Debt Collection Practices Act, and it covers debt a person or household might owe for car payments, health care and other consumer credit. According to the...

Read More

Texas Statute of Limitations on Auto Loans

If you default on an auto loan, your creditor has the right to take legal action against you, such as filing a lawsuit or repossessing the vehicle. Most states have statute of limitations laws limiting the amount of time lenders have to file a lawsuit against a debtor for an unpaid loan. In Texas, that statute of limitations is four years. Creditors may take other action against you even if the statute of limitations has expired. Lawsuit Limitation As of 2011, Texas law allows creditors to sue debtors for defaulting on the debt for up to...

Read More

Overview of the Debt Adjustment Act

The Debt Adjustment Act is a 2003 Georgia law regulating companies offering credit counseling and renegotiation and payoff of consumer debt. It limits fees to 7.5 percent and requires annual audits, payment to creditors within 30 days and insurance covering employee dishonesty, depositor forgery and computer fraud. Introduced by Rep. Ashe House Bill 385 was introduced Feb. 14, 2003 by Rep. Kathy Ashe, a Democrat from Georgia's 56th District...

Read More

Does an Employer Receive Your Credit Report or Credit Score?

Employers cannot check credit reports or obtain credit scores without written authorization from the employee. However, authorization is usually granted during the hiring process and in most states allows the company to continue making periodic credit checks without further permission. Some companies use information on credit reports to gauge an employee's level of responsibility as the employee is being considered for key promotions. Credit Scores Poor credit scores can hinder a job search, although not all companies check credit records....

Read More

How to Get a Government Land Grant

If you're the owner, administrator or manager of a type of organization that gives back to the community, chances are you can get a government land grant. This is when the government gives you a portion of land on which to operate your organization, school or program for the community. One of the most approved types of land grant applications include those that are for schools or organizations that provide a service to the community which is not...

Read More

How to Explain the Collections on Your Credit

Although many consumers realize that lenders and creditors review their credit records before granting them new lines of credit and loans, some do not know that insurance companies, landlords and even employers also pull and review credit reports. Collection accounts on your credit report signify that you did not responsibly pay off your debts in the past and thus may not do so in the future. The Fair Credit Reporting Act (FCRA) gives you a way to explain the circumstances behind collection accounts to anyone reviewing your credit history. Instructions...

Read More

How to Get Help With a Credit Card Judgement With a Debt Collector?

In good or bad financial times, you may come across debt collectors. Some may harass you by calling you at odd hours of the day, swearing or yelling at you or making threats of violence to get you to pay the debt they say you owe. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in these behaviors, threatening to harm your reputation or property, advertising the fact that you owe a debt, calling you with the intent of harassing you, not disclosing their identity or misrepresenting themselves. Instructions...

Read More

Can My Wages Be Garnished for My Husband's Debt?

A debt can result in a wage garnishment if the borrower does not pay according to the terms of the agreement and a court grants a judgment against the borrower. In most cases, a debt is a contract exclusive to the people who entered into it. However, there are circumstances in which a creditor can come after you as the wife of a husband behind on his debt. Co-Signer, Co-Borrower or Guarantor? You need to find whether you created a legal agreement...

Read More

Can Credit Card Companies Take My Home If I Quit Paying Them?

Credit card debt is usually unsecured debt; there is no collateral that can be seized by a credit card company in lieu of payment. However, if a credit card company wins a lawsuit against a debtor, they may place a lien on his home. Winning a Judgment Credit card companies cannot seize any assets without first winning a court judgment. State and federal law restricts the way in which a judgment creditor can seize assets, but creditors are...

Read More

How Can You Eliminate Debt?

Eliminating debt can free up your cash and allow you to save more of your money. Debt can accumulate from excessive credit card use or taking out several personal loans. Creditors charge interest rates, and if paying a high rate, it can take longer to pay down your balances. There are tricks to help you eliminate your debt faster. Establish a plan to get rid of balances, and stick with your strategy to enjoy debt-free living. Instructions 1...

Read More

What Is the Smartest Way to Lessen Debt & Keep Good Credit Scores?

Paying off your debt is important to keeping good credit or improving your credit. It's also important to pay off your debt so that you can be trustworthy and honorable. Paying off debt is not easy because we often take the long road to get into debt and so we must take the long road out of debt. Dealing with finances can also be emotionally draining as well as financially draining. Learning how to pay off your debt without getting further in the hole is the best investment you can make. Paying off debt One of the most important things...

Read More

Charge-Off Law

A charge-off is when a company reports an account to the Internal Revenue Service as a loss. Bad debts and uncollectible accounts are other names for charge-off accounts. Considerations Charge-off law dictates that companies must write accounts off as bad debts when there has not been a payment in 180 days. Credit File Once an account is charged off, it will remain on the credit file of the borrower for approximately seven years. If...

Read More

Reasons to Dispute Items on Your Credit

The website of the U.S. Federal Trade Commission provides information on how to get free credit reports from the three major credit-reporting companies. It's worth getting those reports and checking them for inaccurate information that could negatively impact your credit score. Not disputing such information could cause you to pay more for loans and credit cards or prevent you from getting a job. Credit Checks Credit-reporting companies provide information in your credit file to lenders, employers, insurers and others. That information...

Read More

Does a Collection Agency Ever Sell a Debt Back?

When a person takes out a debt, he signs a contract that obligates him to pay back the debt under specific terms, such as at a particular rate of interest. This contract functions very much like any other debt obligation, such as a bond. In fact, this debt can be treated as a financial security by the creditor, meaning it can be sold to other parties, such as collection agencies. Selling Debt When a company sells a debt a collection agency, the two parties sign a contract legitimizing the transfer of the debt from one party to the other....

Read More

Tips on Negotiating Debt Settlement for Credit Cards

If you're a consumer facing mounting debts, credit card debt settlements can be a great help. Settling a credit card debt means you and the lender agree to new terms, allowing you to eliminate the debt by paying off a portion of it. These settlements are not without their downsides, so take care. Talk to a nonprofit credit counselor or a qualified attorney if you need advice about your debt problems. Review the Situation Most credit cards...

Read More

The Good & Bad About Credit Card Debt Relief

When you're up to your head in credit card debt, you may wish there was an easier way fix the problem. Maybe you saw an infomercial for a company that says it can chop your debt obligations in half, or some other great amount. As with most endeavors, there are potential benefits and drawbacks in contacting a debt relief agency to help your situation. Good: Relief The greatest benefit by contacting a deft relief company is the financial savings you can receive. This will allow you to pay your credit card debts off sooner. Once you are free...

Read More

Do Debt Settlement Programs Work?

Debt settlement programs work to help you get control of your debt. A debt settlement program will negotiate with your creditors to lower your interest rates and reduce the amount of debt you pay. There are several different companies you can choose from, and you need to research the company before choosing a program to work with. Benefits of Programs In addition to working with your creditors, many debt settlement programs offer financial...

Read More