Requirements for a Cosigner

Before cosigning a loan or lease for a friend, child or other relative, consider the cost. Cosigners undertake serious responsibilities. Lenders or renting agents look carefully at the income, assets and creditworthiness of prospective cosigners, in addition to other possible qualifications. That is for good reason. The requirements for qualifying pale next to the requirements when a primary signer stops paying. Cosigning puts your income, assets...

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Small Claims Judgment Recovery

After you are awarded a judgment in court, you have to collect the money owed to you. You may have to use several methods of collection if the defendant is not willing to pay voluntarily. Arrangements Contact the debtor and make mutually agreed upon payment arrangements. Establish the amount of the payments and the date the payments will start. Sometimes this is all that is needed. Considerations If a defendant will not pay willingly, you will need to go back to the court that awarded the judgment and receive a writ of execution....

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What Causes Low Interest Rates?

The interest rate on a loan or credit card can hurt or help a consumer or business depending on how high it is. A low interest rate can provide thousands of dollars in savings and allow a consumer or business to repay a loan much quicker than a loan with a high interest rate. There are several causes of low interest rate in the United States. These reasons usually come down to economic stimulation. Lack of Spending In a bad economy consumers typically lower spending in an effort to conserve available cash. When consumers spend less, businesses...

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What Are Secured & Unsecured Creditors?

When you borrow money from a lender, you may be required to put up some kind of collateral to protect the creditor. If this is the case, you are taking out a secured loan from the creditor. When you borrow money that is not tied to any particular asset, this is known as an unsecured loan. Both of these loans can be beneficial, depending on your situation. Secured Creditors Secured creditors are those which require some kind of collateral to be tied to the debt that they issue. A common example of a secured creditor is a mortgage lender....

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Can a Creditor Sue You While You Are in a Debt Consolidation Program?

There are a variety of myths concerning debt consolidation programs: Some guarantee to make all your debt go away or that you will be able to settle your debt for pennies on the dollar while others talk of bogus government programs or grants designed to bail out people with high amounts of credit card debt. Many more claim they can stop your creditors from suing you. In any case, these statements are false and warned against specifically by the Federal...

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How to Write a Summary on Defaulting Financial Aid Loans

Student loan default occurs when a borrower fails to make payments on a student loan as laid out in the loan agreement. The circumstances that lead to default, the process of getting out of default and the consequences of default can vary depending on the lender and the borrower's situation. Therefore, summarizing student loan default can be a helpful way to understand it better. Instructions 1 Research financial aid default through a variety of sources. The federal government has a helpful website about financial aid loan default, and you...

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How Long Does a Bad Debt Stay on a Credit Report?

When a credit card or other obligation is not paid as agreed, a negative entry is usually recorded with the major credit-reporting agencies of Equifax, Experian and TransUnion. Bad checks are also reported to smaller agencies, such as TeleCheck and ChexSystems. The length of time that any bad debt is reflected on a credit file depends on the type of defaulted obligation. General Debt General bad debts, such as credit cards, student loans, medical bills and loans, are reported to a credit file for as long as seven years. Bad Checks ...

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Simple Ways to Get Out of Debt

Eliminating or reducing debt has the advantages of saving you money in interest charges and in the cost of items linked to your credit rating, such as insurance and mortgage rates. In addition, debt reduction is physically healthy, as excessive debt can lead to stress-related health problems. The steps you can take to get out of debt are simple and effective. Be Frugal Keep track of your spending so you can see where your money goes, then...

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The Effects of Personal Credit on Corporate Credit

The effects of personal credit on corporate credit are far-reaching. In order to ensure financial stability, new business owners must work on both personal and business credit until their business is out of the start-up phase. Strong business and personal credit scores can open up the doors to an abundance of financial resources for your venture. Applying for Credit Registering a new business is an important step in building a successful company. It means you are recognized as a legal entity within your state and can apply for business...

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Common Credit Card Debt Settlement Mistakes

People who get in over their heads in credit card debt sometimes seek to settle their debts to get into a better financial position. While you can use credit card debt settlement to your advantage, be careful that the settlement doesn't leave you worse off than you were before. Focus on paying down your debt and avoid common credit card debt settlement mistakes. Ignoring Your Credit Score Some people who get into credit card debt look toward...

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How Can a Person Protect Him or Herself From Becoming a Victim of Identity Theft?

Being a victim of identity theft means that someone has stolen your personal information and opened accounts in your name. Even if you're unaware of the situation, these unauthorized accounts can appear on your credit report and reduce your credit rating. Fortunately, you can protect yourself and avoid becoming a victim. Signing Credit Cards Credit cards have a space on the back for your signature. Each time you use your credit card at a retailer's store, they're required to check the back for a signature. Instead of signing your name to...

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Consumer Credit Guidelines

People who understand how to use their credit cards to their advantage can get the best deals from creditors and lenders when they open new accounts. That's because consumers' management of credit cards is tracked in their credit files, which are used by creditors and lenders to determine whether they'll approve a credit or loan application. They also used credit-file information to determine what interest rate an applicant will have to pay. Credit Rating One of the best ways to manage your credit is to understand how various actions affect...

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What Is the Quickest Way to Payoff High Credit Card Debt?

Credit card debt can get expensive in a hurry. With interest rates higher than other forms of debt, the interest expense can be quite high. With a calculated debt repayment plan, any borrower can repay high credit card interest debt in a timely manner. List All Debts Start any debt repaying plan by listing all the debts that are owed. List the debts in order from the smallest monthly payment to the largest. This list will come in handy when...

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Visa Credit Cards & Collections Information

Visa debt collectors are required to abide by the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from using abusive, deceptive or unreasonable methods when collecting amounts due. When Debt Collectors Can Call Visa collectors can contact customers between 8 a.m. and 9 p.m. in the customer's time zone. However, the customer and collector can agree to speak outside of this time frame. Where Collectors Can...

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Can I Have Garnishment Reduced for Hardship?

A wage garnishment requires employers to withhold a specified portion of a worker's income to repay a debt. Garnishments are usually the last step that creditors and others take to recoup debts after previous attempts to collect them. It's better to negotiate with a creditor to avoid a garnishment than to try to reduce a garnishment you can't afford to pay. Garnishment Limits The U.S. Consumer Credit Protection Act places limits on the amounts that creditors and others may garnish from workers' wages. Therefore, you have to show why you...

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What Happens When a Credit Card Account Is Charged Off?

If you cease to make payments on your credit card debt for long enough, the account will be charged off by the credit card company. A charge-off can result in a lower credit rating and possibly even legal action. The Facts A credit card company cannot hold unpaid accounts indefinitely. A charge-off is the method by which a credit card company removes unpaid debts from their computer accounting system. The company is then able to claim a tax...

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Should I Declare Bankruptcy or Walk Away From Credit Cards?

When a person incurs substantial debts on his credit cards, he may need to take drastic action to get his financial life back on track. Two of the most extreme solutions that the person can choose involve declaring personal bankruptcy and walking away from the credit cards. Neither action is particularly beneficial, but only bankruptcy will stem the financial and credit damage being done to the debtor. Bankruptcy Advantages The main advantage of bankruptcy is that it allows a person mired in debt to restart his financial life. This happens...

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How to Reduce and Consolidate Debt Using a Government Organization

Government organizations provide a variety of loan options for consumers in the United States. The most popular loans are federally-subsidized student loans. There's also the Housing and Urban Development Administration (HUD) which provides homeowner loans. Both of these government organizations can be used to consolidate and ultimately reduce your total debt. Instructions 1 Access a current, valid copy of your credit report. This will help...

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Advantages and Disadvantage for Using Credit

If you're like most Americans, you probably have one or two credit cards tucked away in your wallet. While using credit wisely can help you to build a solid credit history, irresponsible spending can quickly lead to a financial nightmare. The next time you're tempted to use your plastic, consider the advantages and disadvantages of using credit for purchases. Convenience One of the biggest advantages to using credit cards is their convenience....

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Credit Card Repayment Help

Assessing your mound of credit card debt can become a daunting, frustrating task. But addressing your debt is key to paying off the balances and fixing your finances. Credit card debt can stay with you for countless years and result in paying a lot of money in interest. Consider these effective tips for repaying your credit card debt sooner. Start with the Smallest Balance There are different methods to paying off credit card debt. Some people choose to make higher payments toward all their debts until the balance disappears, while others...

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How to Postpone a Writ of Garnishment

Having a creditor garnish your wages can create problems such as the inability to pay basic living expenses. While creditors can only garnish up to 25 percent of your paycheck (after taxes and Social Security withholdings), this seemingly small percentage can trigger serious financial hardship. Wage garnishments continue until the creditor receives all monies owed, or until you send a full payment. But if unable to pay housing expenses and other necessary expenditures, you can take steps to postpone or stop a garnishment. Instructions 1 ...

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Can You Be Prosecuted for Writing an Insufficient Check for Payday Loans?

Payday loans allow debtors to quickly access cash to pay bills or take care of emergency needs. Consumers write a post-dated check for the amount of the loan plus interest. The loan is generally due when the customer gets paid. If the customer is not paid on time, the post-dated check he writes may bounce, and the debtor then must make alternative payment arrangements with the payday lender. Post-Dated Check Most payday loan companies require customers to write a post-dated check for payday loan amounts. Post-dated checks are generally...

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California Usury Laws and Regulations

The purpose of usury laws is to protect borrowers from large interest rates or predatory lending practices. Each state's usury law varies, but in certain instances---such as those involving credit card companies---one state's usury law may apply over another states depending on where the lender is incorporated. In California, usury laws are spread across many of the sections of the California Code, including the civil, financial and corporate sections. California Usury Limits California differentiates between two types of loans: consumer...

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How to Protect Yourself From Creditor Liens

If you fail to pay a debt you owe, your creditor can file a lawsuit against you. Should the creditor win the lawsuit, it may have the option to collect the amount owed through wage garnishment, a bank account levy or a property lien. If a lien is placed against your property, your creditor will be paid when and if the property is sold. In some states, however, your creditor may be able to force you to sell the property. You can take steps to protect...

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How to Negotiate Hardship Debt Restructuring

Most lenders offer hardship programs. It is in the best interest of all lenders to work with consumers. If accounts are charged off, both the lender and the borrower will suffer. Hardship programs, however, are proprietary. One lender's income and credit guidelines will likely differ from another lender's. However, there are some strategies you can employ to successfully negotiate hardship programs. Instructions 1 Access a recent, free copy...

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How Do Debt Relief Companies Work?

For Americans facing the possibility of bankruptcy due to high amounts of debt, debt-relief companies can be extremely useful. A reputable debt-relief company will work with you to create a realistic plan of payback that enables you to get out of debt faster and get your finances back on track. Eliminating your debt will not just ease stress -- it'll help you improve your credit score. Debt Consolidation A debt-relief company works by consolidating all of your existing unsecured debt and paying off each company that you owe money to. This...

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How to Get a Bad-Credit Mortgage Loan

Purchasing a home is one of the most expensive investments that most people in the United States, even those with perfect credit, ever make. It typically involves taking on a mortgage loan for some or most of the home's purchase price, which can cost tens of thousands of dollars in interest over the life of the loan. If you have bad credit, you will likely end up paying more for the privilege of borrowing money than a borrower with a high credit score. You might also find it difficult to convince a lender to approve you for a mortgage; however,...

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What Does Consolidating Debt Do to Your Credit Score?

Debt consolidation is reorganizing debts so that, in theory, they become more manageable. This is a common practice for debtors who can't manage their debts with their current incomes.They often have different types of debt, especially credit card debt, with varying interest rates and due dates. Debtors who choose debt consolidation work with businesses that charge fees for debt organization to create new plans with manageable monthly payments that...

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Can a Lien Holder Garnish Wages in Texas?

When you fall behind in your payments, a creditor or lien holder may obtain a judgment to seize your property or other assets. State laws governing the assets a creditor can seize differ. In Texas, your wages are exempt from garnishment for most types of debt. However, there are some situations in which your wages may be garnished. About Lien Holders A lien holder is a creditor whose debt is secured with collateral, such as your home or car. In most cases, a lien holder must sell the property you pledged as collateral to collect his debt....

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Can Someone With a Judgment Take My Money?

After going to the court, your creditor may get a judgment that legally declares that you owe a certain amount of money. A judgment gives your creditor the right to collect money from you. There are several methods that your creditor can use to take your money to pay off your debt. Wage Garnishment Your creditor can take up to 25 percent of your wages through a process called wage garnishment. This is probably the most common money judgment...

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Do Collection Agencies Affect Credit?

Your credit history can help you or hurt you -- depending on your current and past financial behavior. Credit reports and scores help lenders determine whether or not to do business with you while simultaneously determining the interest rates you should pay on new loans and credit accounts. The credit scoring formulas take all of your credit information into account when awarding you a credit score. Thus, a collection agency can influence your credit rating by inserting a collection account on your credit report. Collection Accounts Collection...

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Credit Balance Write Off Scams

Getting out of debt requires work, and many who are deep into debt are looking for an easy way out. When someone offers these individuals a "magic" solution to their debt, one that allows them to write it off with a seemingly small investment, they are eager to accept. Before you fall prey to a credit write off scam, learn what to look for to avoid them. How These Scams Work Credit balance write off scams offer you the chance to write off...

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How to Answer a Foreclosure Summons & Complaint in New York

Answering a foreclosure summons and complaint in New York is critical to avoid losing your home. However, simply answering the lawsuit does not result in a victory. To win the lawsuit, the homeowner must offer a suitable defense based on law. Many people answering a foreclosure summons and complaint are trying to buy time while working on options to bring their mortgage current and end the lawsuit. Debtors representing themselves in court are called pro se debtors, but are usually better off having an attorney prepare a written answer and represent...

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When Does a Collection Agency Get Involved?

Creditors will always try to collect what is owed to them by using in-house methods first. They will send letters or billing statements, cut off service and make phone calls. They want to get their money while maintaining a good relationship with their customer. However, when their efforts fail or they encounter hostility from the customer, creditors often turn to collection agencies to recoup their money for them. Initial Process When a...

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Does Credit Repair Work on Accounts That Have Been Settled?

Consumers who have settled some or all of their debts with creditors often want to begin rebuilding their credit scores so they can once again get loans and competitive rates. While there is no trick to building your credit rating, your score will definitely be negatively affected by a settlement. However, a settlement will not preclude you from building a good credit score. Debt Settlement Debt settlement is when a debtor negotiates new...

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Is it Possible to Transfer an Auto Loan?

Often when an individual purchases a new vehicle, he will take out a loan from a finance company. The finance company provides the individual the money necessary to purchase the car and, in return, the individual is required to pay back this money, plus interest, with the car acting as collateral. However, just as with a loan for a house, an individual with an auto loan is often able to refinance that loan with another lender. Auto Loans An auto loan is not just an agreement between a borrower and a lender but, for the lender, it is a revenue-generating...

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Prepaid Credit Card Vs. Prepaid Debit Card

Prepaid debit and credit cards are like regular plastic with training wheels. While they work in much the same way, prepaid debit cards allow the user to practice spending without worrying about overdrawing on a bank account, where prepaid credit cards can actually have an impact on your credit report. Prepaid Debit Card Unlike regular debit cards, prepaid debit cards do not draw from your bank account. Instead, you load money onto the card...

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Family Debt Counseling

Debt can be an overwhelming burden on a family. In fact, money issues are often cited as the leading cause of divorce, so this is a serious situation that should be addressed quickly. Unfortunately, too many families hide from creditors and ignore mounting bills, digging themselves deeper into a pit of debt and despair with each mounting bill. Credit counseling agencies, both profit and nonprofit, help a family analyze their current indebtedness and figure out how to fix it. Agencies The first decision to be made when it comes to family...

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The Statute of Limitations on Texas Civil Debt

Texas, like other states, places a limit on the length of time that a person can sue for the collection of a debt. After the statute of limitations on a debt has expired, it means that the creditor can no longer file a breach of contract lawsuit or another type of lawsuit against the debtor for damages stemming from the debt. The length of the statute in Texas depends on the type of debt. Statute of Limitations Statutes of limitations on debts are designed to prevent an individual from facing a lawsuit over a debt many years after it was...

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