The Theory of Debt Management

Debt management is the act of getting your monthly obligations under control and living within your means. Consumers that are looking to get into a debt management program, whether it is something they do on their own or something they hire a financial professional for, should understand the theory behind debt management. Understanding why you need a debt management plan will help you to stay dedicated to its success. Scheduling When you...

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What Is the Length of Time a Foreclosure Stays on Your Credit Record?

A foreclosure could damage your credit for years, making it difficult or impossible to get competitive rates on credit cards and loans. However, the impact of the foreclosure on your credit will lessen over time, according to the Federal Trade Commission. Time Frame Foreclosure information can be reported on your credit report for seven years, according to the Federal Trade Commission. The FTC reports that the information cannot be removed sooner, despite the claims of credit repair firms. Foreclosure information can be removed from a credit...

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What Are the Consequences of Credit Card Default?

Credit card debt is one of the safest forms of debt to default on. This is because it is unsecured. In most cases, it's extraordinarily difficult for credit card companies to successfully collect on debts. If the amount defaulted on is substantial and the individual has major assets or income that the credit card company can seize, the company may collect at least part of the debt once it receives a judgment in its favor. Otherwise, the main consequence...

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How to Look for Help With Delinquent Debts

Dealing with debt is a time-consuming and stressful task. If you have large amounts of delinquent debts and are being pursued by collection agencies or similar entities, it may be advisable to seek the assistance of a professional. The most important thing to remember when dealing with delinquent debt is that many others who have been in your position and have repaired their credit through commitment and responsibility. Instructions 1 Run...

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How to Report a Stolen ID to Credit Bureaus

Identity theft happens when someone gets access to your personal information and uses it for fraudulent purposes. In some cases, identity thieves can open new credit accounts, make purchases or drain your bank account before you realize what has happened. Fortunately, the three credit bureaus --- Experian, Equifax and TransUnion --- have a fraud alert system that can protect you against many of the problems caused by identity theft. Instructions 1 Visit your local police station and complete an identity theft report. This is similar to a...

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How to Figure Debt Ratio

Your debt ratio, which is often referred to as "debt-to-income ratio," is a measurement of how much you owe in relation to how much money you make. This measurement is important in terms of credit. If your debt ratio is too high, potential lenders may not approve you for a loan. The general rule is that your debt ratio should be 36 to 38 percent or less. Having a lower debt ratio shows that you probably are a good candidate for a loan or credit card because you currently make enough money pay back the loan for which you are applying. You can perform...

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Is Debt Consolidation Better Than Paying Off Credit Cards One by One?

When you have several credit cards with various payments and interest rates, it may be to your advantage to consolidate them. A consolidation loan may provide you with more favorable terms and conditions. There are a number of factors to consider. Significance If you can consolidate your credit cards and get a lower rate of interest, you can save a substantial amount of money, depending on your balances and the interest rate you receive. Effects A consolidation loan will help you save money on a monthly basis. Many times your payment...

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Debt Settlement Information

Every year, more consumers become overwhelmed with debt. Some are looking for a way to substantially reduce their debt. One way to achieve this is with a debt settlement. There are several procedures you can use if you want to settle your debt. Your credit report will be affected negatively after a debt settlement and your credit score could be lowered. If you decide that a settlement is best for you, contact your creditors. Creditor Contact If you want to settle your debts you should contact the creditor you want to settle with and let...

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Grounds for Legitimately Removing Blemishes From a Credit Report

Bad credit makes it difficult, if not impossible, to purchase a home, buy a car or secure a credit card with an acceptable interest rate. Inaccurate information on your credit report not only impacts borrowing power, but it can also adversely affect your search for a job, renting an apartment or getting insurance for yourself, your vehicle or your home. Credit Reports The three national credit bureaus, Equifax, Experian and TransUnion, keep records that closely track your creditworthiness. The nation's Fair Credit Reporting Act requires...

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Can Your Bank Account or Salary Be Garnished for Hospital Bills?

A hospital stay can be a stressful event for you and your family -- you may need to take time off work not only for your time in the hospital, but also for recovery after you return home. It can also create stress when you receive bills for hospital expenses not covered by your health insurance policy. Even worse, if you do not pay your hospital bills, you may be subject to collection activity such as bank and wage garnishments. Legal Authorization Unlike government entities, hospitals typically cannot pursue wage garnishment without legal...

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Can Someone Put a Lien on My House if I Am Paying My Debt?

Whether a creditor can place a lien on the house of a debtor who is "paying his debt" depends primarily on whether the payments made by the debtor are in accordance with the repayment schedule established by the contract he executed with the creditor. Regardless of whether the debtor has breached the repayment terms of the contract, the creditor would first have to obtain a judgment for money damages against the debtor before he placed a lien on the debtor's house. Breach Of Contract An obligation to repay debt arises out of the existence...

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What Happens After You Pay Off Your Credit Card?

In most cases, paying off a credit card will have a positive financial impact. Unless you're settling the debt instead of paying it in full, your credit score will likely improve. You'll also have more money to apply to other debt, start an investment program or put money away for retirement or your kid's college education. Credit Report Status When you pay off a credit card, the status of the account will also be updated on your credit report....

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How to Get Rid of Credit Card Debt Legally

Large credit card debts are stressful. Paying off credit card debt requires creating a plan. You must also focus on changing behaviors that may have played a role in accruing the debt. Taking steps now, such as creating a budget, cutting costs and working directly with creditors to arrange payment plans will help you get rid of credit card debt legally. Instructions 1 Create a realistic budget. List all current income in one column. In the...

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Alternative Credit Card Solutions

Credit card debt can be crippling. When confronted with a massive amount of debt, some people might wonder if filing for bankruptcy is the answer. While that may be an option, there are other avenues available to help get out of credit card debt, ranging from getting lower interest rates to setting up emergency savings accounts. Stop Spending The first step that needs to be taken is basic. Stop using credit cards. Use cash whenever possible....

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Can I Consolidate If I'm in Debt Settlement?

The Federal Trade Commission suggests debt settlement as an excellent solution for resolving unsecured debt such as credit cards. However, participation in a debt settlement program ruins credit for a while, as missed payments are necessary for debt settlement offers from credit card companies. Missed payments and other debt settlement activity usually makes it impossible to qualify for debt consolidation at the same time as settlement. Comparisons Debt settlement eliminates debts as the debtor pays off balances for less than the full amount...

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Is it Better to Settle Debt or Not Pay at All?

You can decide to settle your debts or not pay at all depending on your situation and what you are trying to accomplish. Some debts will fall from your credit report after a certain period of time. Features If you decide to settle your debt you will be able to pay less than the full balance. When you decide not to pay all your creditors or collection agencies can still come after you for the debt. They can start legal action and garnish your wages or bank account. Function When you settle a debt the forgiven portion may have to be...

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Things Collection Agencies Don't Want You to Know

Collection agencies are known for calling and harassing people in debt. They use fear, manipulation, bullying and repeated calling to wear you down. It gets to the point that some people fear answering the phone in their own home. In order to stand strong against the big, bad debt collector, educate yourself on a few tips they don't want you to know. Collectors Earn Commission Debt collectors earn commission from the down payment you send...

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Louisiana Laws on Appealing Wage Garnishment

Garnishment occurs when a court orders that a part of your wages be immediately deducted from your check to pay off outstanding debts. You will rightly be alarmed if you get a garnishment order. However, if you live in the state of Louisiana and have a garnishment order you have options for appeal. Reasons for Appeal There are very specific reasons that you would be allowed to appeal your wage garnishment in Louisiana. This is if the garnishment is making it so that you cannot pay basic necessities, such as food, shelter and medical costs....

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Places to Fix Your Credit

In today's economic climate, almost everyone is experiencing some kind of credit dilemma. The average amount of per household credit card debt in America is over $16,000. If you are one of the individuals struggling to repair your credit, there are a multitude of options for you to pursue. Go to Your Creditors If you have fallen behind on your credit card, loan, car or mortgage payments, chances are you have instinctively been dodging the...

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How Does Consumer Credit Counseling Work?

Consumer Credit Counseling Services Offer Aid to U.S. Families As the U.S. goes further into debt as a nation, many families are finding it harder to pay the credit card bills established over the last decade. Rising costs of living are cutting into money set aside for unsecured debt payments. Making a late payment on a credit card can wind up costing hundreds of dollars in late fees and force a family to make some tough decisions. Consumer credit counseling service offices are now available in every major U.S. city to help families start...

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How Can I Get My Credit Report With a Tax ID Number?

National credit reporting agencies maintain a credit file on you if you've ever applied for credit or insurance, according to the Federal Trade Commission. The three nationwide credit reporting companies are Equifax, Experian and TransUnion. You have a right to know what's in your credit report, as well as the right to dispute inaccuracies on the report. In order to access your credit file, you need to provide your taxpayer identification number,...

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Can a Checking Account Be Seized by a Collection Agency?

A collection agency enforcing the payment of a debt can seize the checking account of the debtor once it obtains a court order. How much money can be taken depends on state laws, and the collection agency must follow the legal steps for seizure. A collection agency that fails to follow proper procedure can be fined and incur liability to the debtor. Function The creditor must go to court and obtain a money judgment, or court award, against the debtor prior to account seizure. The creditor then assigns the debt to a collection agency. The...

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How to Write a Proposal for Credit Cards

Credit cards offer consumers a way to purchase items without breaking the bank, but large balances combined with high interest rates can sometimes overwhelm credit card holders and threaten to do just that. The U.S. Census Bureau reports there are an estimated 180 million credit card holders in America in 2011. A percentage of that number will fall behind on payments or worse -- fall into collections. Before this happens, consumers should contact their credit card provider and propose an alternative, including a settlement, a lower interest rate...

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Can a Payday Advance Company Garnish Your Wages in the State of Florida?

A payday advance provided by a private company is a form of payday loans. These loans are issued for only a short period of time, carry a high rate of interest and are typically secured by a bank account number of a post-dated check. When a person borrows money in this way, he is legally obligated to pay the debtor the principal of the payday loan, plus interest and fees. In Florida, lenders may eventually garnish a debtor's wages if he defaults. Payday Advance A borrower who takes out a payday loans signs a contract in which she agrees...

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What Percentage of Net Should Your Mortgage Be?

A mortgage represents a significant debt for individuals and is often the largest monthly payment the borrowers must make. When people refer to a mortgage debt being a percentage of monthly income, they refer to either gross or net monthly cash flow, based on all the other expenses the borrower must deal with. This is an important calculation both before the mortgage is created and afterward, when borrowers are making short and long-term financial plans. Net vs. Gross Income First borrowers should distinguish between net and gross income...

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Ratio of Revolving Account Balances to Revolving Credit Lines

Revolving accounts are accounts that allow you to spend up to a specified limit at any given time so long as you make regular payments, like a credit card or home equity line of credit. So, if you have $15,000 credit card limit and your account balance is $14,000, if you make a payment of $1,000, you end up with $2,000 of available credit not including interest. Credit Utilization Your ratio of revolving account balances to revolving credit...

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What Can Happen When Someone Puts a Lien on Personal Property?

Personal property liens prevent the sale of the property in question until the lien has been satisfied in full. They can also force the sale of the property to collect the debt. Liens are commonly placed on vehicles until the loan is paid off. In other cases, liens are created through a court process following a debtor's failure to pay a debt. Liens are filed in the county where the property is located. Personal Property Defined Personal...

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How to Pay a HECS Debt

HECS stands for Higher Education Contribution Scheme and is administered by the Australian Government. As a HECS participant, you are responsible for a small portion of your student payments, and the rest is paid by the government. Once your income has reached a certain level, payments become required. These required payments are made through your income tax assessments or through wage garnishment. You can also make voluntary payments, which are made to the Tax Office. Instructions 1 Go to the Australian Taxation Office website. (see Resources)...

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Electronic Cash Advantages

Electronic cash is transferred between accounts digitally, rather than paid in the form of paper money or a written agreement between parties, such as a traditional check. For example, debit cards, which authorize the wiring on money from one bank account to another, could be considered a form of electronic cash. The use of electronic cash is widespread, partly due to the fact that it holds a number of advantages over paper currency. Replacement Costs A strong drawback of paper currency is that it wears out. Most paper currency becomes...

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What to Do When a Credit Card Debt Has Been Sent to a Collection Agency

Sometimes, if a person waits too long to pay an overdue credit card bill, the credit card company will decide to sell the debt to another party, such as a collection agency, or else hire an outside party to take over collection duties on the debt. When this happens, the debtor's situation will not change drastically. However, he may want to take measures to prevent himself from falling victim to various collection actions. Repayment If possible, it is always a good idea for a person to repay his credit card bill. Unlike some types of loans,...

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How Do I Get a Loan When I'm on Social Security Disability?

Social Security disability benefits are available to people who are unable to work because of a medical condition. Social Security officials determine the monthly benefit according to a formula that includes factors such as how many years the recipient worked. The payments are modest, usually starting at around a few hundred dollars a month. However, it is possible for people on Social Security disability payments to get a loan. Challenges Although certain loans are available, many creditors are reluctant to loan money to people who have...

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What Happens When Your Credit Card Debt Goes Into Collections?

Job loss, an unexpected tax bill or other financial emergencies can dramatically reduce your available cash and may make it difficult to meet your monthly payments to creditors. Before you allow your credit card debt to go into collections, experts at the Federal Trade Commission and the National Consumer Law Center advise you to learn your options. Researching the alternatives and the collections procedures will help you understand the negotiation process, protect your assets and buy some time before a creditor files a judgment against you. ...

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How to Figure Out the Finance Charge Refund for an Early Payoff

While paying off a loan early can lessen the finance charges you pay, you may still owe more than you think you should. This often happens because creditors typically set up your repayment plan where you pay larger monthly interest payments early in your loan using the "Rule of 78s" -- or the sum of the digits -- to calculate finance charges. Using this rule, the lender adds the number of payments in the repayment plan to determine how much interest the borrower pays each month. For example, a 12-month repayment plan divides the interest into 78...

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How to Deal With a Third-Party Debt Collector

Any person who directly or indirectly collects debts is a third-party debt collector. When contacted by such an entity, individuals are responsible for knowing how to correspond with them and how to protect themselves. The Federal Trade Commission (FTC) and the states have laws protecting citizens from unscrupulous and illegal debt-collection activities. With some basic education about the law, your rights and responsibilities, you can navigate your...

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The Consequences of Not Paying Credit Card Bills

If you're struggling financially, it's tempting to simply walk away from your credit card debt obligations. After all, it's unsecured debt, so the company can't take something away from you the way that your mortgage or auto lender could. Still, not paying your credit cards could have dire consequences for your future. It's always best to try to work out some arrangement rather than not paying at all. Lower Credit Score When you make late...

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Can I Settle a Wage Garnishment Before it Goes to My Employer?

Having your wages garnished by a creditor not only reduces your income, but it can be a source of significant embarrassment. If you don't want your boss to learn about your financial problems, try and work things out with your creditor before the wage garnishment process begins. Wage Garnishments In a wage garnishment, your creditor sends legal papers over to your employer requesting that it withhold money from your paychecks in order to pay off your debt. When a creditor garnishes your wages, not only do you lose part of your income, but...

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Can I Consolidate Payday Loans Through Debt Consolidation?

Payday loans are a very expensive way to borrow money. The annual interest rate on these loans can be in the hundreds, even thousands, of percent. With debt consolidation, the borrower takes out a single low-interest loan and uses that money to pay off several smaller, high-interest debts. While this may sound like an ideal option, if you are relying on payday loans to get you through to the end of the month, you probably do not have the credit score...

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How Long Does It Take for Collections to Garnish Wages?

Debt collectors put significant effort into collecting debts through voluntarily payment. Unfortunately, not all debtors have the means or the inclination to set up a voluntary payment plan. In this case, the collector may pursue more forceful collection methods that allow it to seize a debtor's assets. One such method, wage garnishment, gives the collector the ability to seize money the debtor's employer owes to him in wages before the debtor receives...

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