How to Calculate How Long to Pay Off Credit Card

Credit card debt can be overwhelming and it may feel like you'll never have it paid off. If you are paying the minimum amount due, it may indeed take quite a long time to get out of credit card debt. You must stop adding to your debt, but even then it's important to understand how long it will take to pay off a card so that you can see light at the end of the tunnel. Instructions 1 Look at your credit card bill and find out how much money you owe, what your interest rate is and when the interest is compounded. You need to know all of this...

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Is Consumer Credit Counseling Service Good or Bad?

Consumer credit counseling can be extremely helpful when you cannot handle your financial issues on your own, but it can make things worse if you do not select a good firm. Credit counseling is appropriate when you cannot create a workable budget or your debts are too high, but sometimes your situation is beyond the scope of a counselor's assistance. Problem Types Consumer credit counselors handle a wide range of problems, and legitimate firms offer services ranging from online materials, workshops and one-on-one budgeting assistance to...

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Credit and Debit Card Rights

The United States has enacted several laws to protect consumers who use credit cards. These laws regulate credit card fees, payments and credit terms. Fewer regulations are in place for debit cards, which means that banks generally determine the fees and terms associated with those cards. Credit Card Fees The Credit Card Accountability, Responsibility and Disclosure Act of 2009 offers cardholders more protections when dealing with credit...

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Does a Charge-Off Negatively Affect Your Credit?

A charged-off debt is a delinquent debt that a creditor writes off as a financial loss. Charged-off debts have gone unpaid by account holders for as long as 180 days. As a result, charged-off accounts can have a negative impact on a consumer's credit rating for several years. Process Creditors usually turn over charged-off debts to collection agencies in an attempt to recoup some of the money the account holders owe. These delinquent accounts affect a consumer credit report in several ways. For example, creditors initially report late payments...

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How to Put Loans on Prepaid Cards

Having the proceeds from a loan placed on a prepaid debt card can help you avoid using a bank. Some people avoid banks because of what they perceive to be high fees for services. Others may at least temporarily avoid banks because of problems with their accounts, such as garnishment. For example, a credit card company could win a court order to garnish your bank account after you stop paying on a credit card. Garnishment allows the credit card company...

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Credit Card Consolidation Help

Borrowers are often enticed by the attractive features of debt consolidation, such as lower monthly payments and fewer bills. While consolidation loans can help you effectively manage your credit card debt, they do not relieve you of the long-term pressure to repay the loan and can lead to even more problems if you never learned to responsibly repay your debts. Consolidation Credit card consolidation is useful to some borrowers. However, consolidation programs do not eliminate your debt, but merely shuffle it around to new lenders. Consolidation...

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How Can I Clear or Reduce My Debts?

There are many ways to clear or reduce your debt load. By consolidating your debts and making more than your minimum payments, you can reduce debt faster than you ever thought possible. Consolidation may include negotiation to bring your overall debt down and this can be done on your own or with the help of a financial company. Debt Consolidation Consolidate your debt by taking out a bank loan to pay off your creditors. If you have high-interest debt, borrow at a lower rate. That will not only will eliminate your many current debts but...

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What Happens to Credit Card Debt When Someone Dies in Texas?

When somebody close to you dies, you probably aren't thinking about paying her credit card bills for her. However, resolving debts is one of the loose ends you may have to address for your deceased loved one. In Texas, if you were married to the debtor when the debt was incurred, you may be responsible for the debt under community property laws. Otherwise, you are not responsible for the debt unless you had a joint account with the late debtor. Community Property State As of June 2011, Texas is a community property state, which means all...

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Can a Mortgage Broker Accept a Referral Fee From a Debt Reduction Company?

Paying someone to recommend your company to possible customers is often illegal. There are laws against your mortgage lender or broker taking referral fees --- also called kickbacks --- from companies involved in closing on your loan The laws do not prohibit collecting a fee for recommending you to a debt-reduction company when you're in financial trouble. RESPA The Real Estate Settlement Procedures Act applies federal rules to several aspects of closing, including referral fees. Under RESPA, companies involved in closing can't pay referral...

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Five C's of Credit Lending

In the lending industry, lenders use various criteria to evaluate applicants for credit. The five C's of credit is a concept that deals with five important factors that lenders almost always examine when approving applicants for credit. If you're about to apply for a loan, look at these five factors to determine if you have a chance of being approved. Character One of the first factors that the lender evaluates is your character. This factor examines the likelihood of your repayment of the loan. The lender looks at your past credit history...

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How to Repair Bankruptcy

The effects of a bankruptcy can destroy your credit rating. Bankruptcies stay on your credit file for 10 years, and once the bureaus delete this information, creditors reviewing your credit report will not be aware of your past mistake. However, you don't have to wait 10 years to clean up the effects of a bankruptcy. There are ways to improve your credit score in the meantime. Instructions 1 Consider not including all your debts in the bankruptcy. If you haven't filed a bankruptcy yet, you may want to keep some debts and continue paying...

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Free Debt-Counseling Service Information

Across the nation there are hundreds of agencies that offer debt and credit counseling to help consumers escape a mess of debt. Some of these agencies are reputable, free, nonprofit agencies. Others are scams. Once a consumer finds a good one, he can use the service just to help him figure out a budget and payment plan or employ the service more actively with a debt management plan to help him become debt free. Recommended Counselors The...

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How to Calculate Your Debt Payoff

Many people who are in debt want to know one thing---when they will be out of it. Calculating a debt payoff date may help you stay on track when trying to tackle your debt. Calculating your debt payoff takes only a few minutes. Instructions 1 Gather all of your debt. Whether it's credit cards, car loans, personal loans or other types of debt, gather the statements for the amount of money you owe. Many people exclude their home mortgage when...

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Does Not Paying a Doctor's Bill Affect Your Credit Score?

Your credit score can affect every aspect of your life, from getting a mortgage to advancing in your career. Protecting your credit score and your good name means paying your bills on time, every time, whenever possible. That includes medical bills such as a doctor's bill. If you don't pay a doctor's bill, the result may be a black mark on your credit. The Number One Threat to Your Credit Nothing affects your credit more than paying your...

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What Happens If You Do Not Pay a Debt When in Collections?

You remain responsible for paying off your delinquent debts -- even if your original creditor charges off the debt and sends it to a collection agency. Depending on the types of debt you owe and the collection agency's policies, ignoring the debt may carry significant consequences and result in legal recourse from the company or the debt steadily increasing over time. Third-party Transfer Just because your debt is in collections that does not mean that a collection agency owns the debt. Some original creditors, such as credit card companies,...

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How Long Can a Debt Be Pursued?

With few exceptions, outstanding debt may be pursued indefinitely, but collection options may be limited after a certain period. The Fair Debt Collection Practices Act governs debt collection and your consumer rights. Just as creditors have the right to collect, you have the right to question the validity of a debt and file formal complaints of unfair or deceptive collection attempts with the Federal Trade Commission or your state attorney general....

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Debt Management Help

Debt can seem overwhelming. Just facing the reality of how much debt you have and what it is costing you is enough to send you screaming back to the happy land of denial where things only get worse. Fortunately, when you're ready to face the problem, there are many free or inexpensive resources to help you turn what seems insurmountable into little projects and steps that help you climb out of the debt hole. Budgets and Payoff Plans Consistently,...

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Can You Go From Getting Your Wages Garnished to Paying Monthly?

It takes a judge to reverse a wage garnishment. By the time a person or company sues you and wins a judgment resulting in garnishment of your wages, the creditor has likely exhausted all other methods of collecting the debt from you. After convincing a judge to reverse a garnishment, you'll need to convince the creditor to accept a payment arrangement in order to repay the debt on a monthly basis. Garnishment Law Federal law puts a cap on...

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How to Reduce Credit Risk

Having numerous credit cards and credit lines can tempt you to overspend. Instead of saving cash for emergencies, you may find yourself relying on your credit lines as a safety net. Sure, it makes sense to use credit in a financial emergency, but relying too heavily on credit--coupled with illness or an unexpected job loss--can lead to severe debt or even bankruptcy. Carefully monitoring how you use credit can help you avoid that scenario. Instructions...

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Do Credit Card Settlements Affect Your Tax Returns?

Credit card settlements occur when a debtor arranges to pay a card off for less than the full balance. The process is the same as debt settlement and results in major savings for the debtor. Credit card companies sometimes settle delinquent credit card accounts for as much as 70 to 75 percent of the balance. Settling may have a significant effect on tax returns, however. Considerations The Internal Revenue Service treats savings from credit...

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Credit Counseling Vs. Debt Reduction

Credit counseling services can help reduce the total amount of debt you owe. There are other debt reduction options you can choose to perform yourself. If you are overwhelmed by your debt or you simply want to get out of debt as quickly as possible, you should consider all options before decising on a course of action. Credit Counseling A credit counseling service works with your creditors on your behalf to negotiate lower interest rates and reduce the amount you need to pay to eliminate your debt obligations. These services, which typically...

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DIY: Debt Solutions

Debt solutions that don't require assistance from a debt consolidation or credit counseling agency can help pay down high balances without a monthly service fee. High debt levels can affect credit scores, and if buying a house, outstanding debts can reduce the amount that you're able to spend on the purchase. Do-it-yourself solutions can bring down your balances and put you on the path to better finances. What Do You Owe Know what you owe on all your credit accounts and the interest rate charged by your creditors. Look at your statements...

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Can I Get a Payday Loan and Put It in Someone Else's Checking Account?

Although the terms under which payday loans -- loans that must be paid back quickly at a high rate of interest -- are issued vary greatly, most payday loan companies follow similar procedures. Generally, a person can only borrow money for himself and cannot have money drawn from a payday loan deposited directly into another person's account. However, once he receives the loan proceeds, he can place the money in someone else's account. Payday Loans When a person takes out a payday loan, he is responsible for the debt. A person cannot, under...

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Tax Levies & Garnishments

If you owe unpaid federal or state taxes, the Internal Revenue Service or your state's tax board can collect from you in a variety of ways. Two common methods governments use when recovering tax debts are tax levies and garnishments. Both tax levies and garnishments are involuntary -- forcing you to pay off the debt if you do not make voluntary payment arrangements. How It Works A tax levy occurs when the IRS or state directs your bank to...

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Can You Settle Credit Card Debt for Pennies?

Many companies promise to be able to settle a debt for pennies on the dollar, meaning that you can pay a small percentage of your debt and the debt collector will consider it paid. Unfortunately, it is not that simple and there are no guarantees that a debt collector will agree to any kind of settlement, much less one that offers such a low percent of the debt. Debt Settlement Companies Many companies negotiate debt settlement on your behalf. However, this is a lengthy process and there are no guarantees. When you work with a debt settlement...

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How to Remove Negative Credit Through Negotiation

If you have problems on your credit report, you may have already experienced the consequences of these problems. Poor credit can affect future loans sought, apartments desired to rent and even jobs you hope to acquire. The credit bureaus, Trans Union, Equifax and Experian, all reserve the legal right to report negative accounts for up to seven years. Therefore, it is only through the power of your persuasion that you can remove negative accounts...

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A Guide to Credit Card Debt

Many consumers reach for credit cards to help meet expenses and feed various desires, such as taking a vacation or buying new furniture. Understanding credit card debt is a must. Responsible consumers are able to evaluate credit cards, manage the debt associated with using them and handle any negative repercussions stemming from credit card mismanagement. Credit Card Types As of December 2010, the total amount of credit card debt held by...

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US Government Financial Grants for Debt

The very first thing you'll note on the federal government's grants website is the following statement: "ATTENTION! Grants.gov does not offer money for personal financial assistance or debt." Even though a basic Internet search will provide pages of website links to sites that offer "government grant assistance," there is nothing on these sites that you can't find for free yourself. The worst of these official-looking sites will steal your money...

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Medical Collection Procedures

Internal Collections Are First Step Medical offices routinely bill clients and expect prompt payment, but are equipped to handle mild delinquencies with their own internal collections department. Because external collections agencies often require a substantial portion of the amount collected, medical offices will first attempt to collect the debt themselves. This collection procedure may consist of letters, telephone calls, emails or (depending on the facilities available to the medical office) personal discussions at the medical office....

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How to Charge Debt Recovery Fees On Invoices

Many creditors will forward their bad debt or charged-off accounts to collection agencies. A charged-off account is one on which a customer has not paid any money in 180 days. The creditor will report the account as a loss to the Internal Revenue Service (IRS) for tax purposes. When the collection agency receives money from the past-due debtor, it bills the original creditor by sending an invoice. The manner in which debt-recovery charges appear on an invoice is predetermined when the business relationship is established. Instructions 1 ...

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Do-It-Yourself: Get Rid of Debt

Debt creates a problem for many consumers because too much of it leads to poor credit. If you have a good to excellent credit rating, you qualify for the most competitive interest rates and loan terms. Create a strategy to rid yourself of debt and build your credit rating over time. Planning Debt Payoff The amount of time it takes you to rid yourself of debt depends on how much you owe and the amount you can afford to repay each month. Debt calculators are available online to help you determine, based on your interest rate, how long it...

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How to Determine Credit-Worthiness

Credit worthiness is defined as being an assessment of the likelihood that a borrower will default on their obligations. The company lending you money wants to know how likely they are to receive it back from you before they lend you money. Even if a company decides to advance you credit, the rate of interest will be determined by your credit worthiness. You need to know the factors companies look at when determining your credit rating and score,...

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How Hard Will a Debt Collector Try to Collect a Credit Card Debt?

Credit card companies rely on timely payments to turn a profit. Although a credit card company will pursue missed payments for a limited amount of time -- usually no more than 180 days -- these companies routinely turn unpaid balances over to collection agencies. Debt collectors then work to recover defaulted credit card accounts. How hard a debt collection agency will work to collect a credit card debt depends on a variety of factors. Collection...

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How to Overcome Financial Problems

The best way to overcome financial problems is to create a plan for reducing your debt while increasing your income. It's not always possible to significantly increase your income, but even modest gains can be helpful as you try to overcome financial problems. An additional job working part-time could result in enough additional income over time to pay off a credit card bill or an installment loan. The key is creating a reasonable plan and sticking with it. Instructions 1 Make a complete list of all your debts and expenses. Keep a diary...

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Debt Relief Programs Pros & Cons

Many people find themselves in debt at one point or another. For some, debt becomes unmanageable, and making payments on time--or even at all--becomes impossible. A number of debt relief programs exist that can help you deal with debt. While this may sound like an ideal solution, there are downsides to consider. Pro: Avoid Bankruptcy If you are looking into debt relief programs, chances are you're in dire straits. You may even be on the verge...

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Debt Assistance Programs

Owing a large amount of money is stressful, especially if you can't afford the monthly payments on your debt. However, programs are available for consumers that can help lower both interest rates and monthly payments, making it easier to be debt-free than ever before. Choosing the right program may seem like a daunting task. Know the facts about the different types can help. NonProfit Debt Assistance A nonprofit consumer credit counseling...

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Help With Legal Debt Settlement

When taking on the challenge of getting out of debt, there are many options available to you, including debt consolidation and bankruptcy. One option that you may want to consider pursuing is debt settlement. Debt settlement involves negotiating with your creditors to eliminate a portion of the money you owe. You can also get help with this process from a debt settlement company. What is Debt Settlement? The process of debt settlement is something that you can engage in after you are delinquent on your outstanding debt. Most of the time,...

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Will I Get Sued for My Credit Debt?

When a debtor owes money to a creditor, the creditor can take a number of different steps to collect payment of his money. Collection tactics can range from the relatively benign, such as calling or writing a letter to the debtor, to the severe, such as wage garnishment and bank account seizure. Generally, a creditor will have the legal right to sue the debtor. However, whether he chooses to do so will depend on a number of factors. Legal Right When a person agrees to borrow money from a lender or receive another asset on credit, this transaction...

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