How to Deal With Credit Card Collectors

Receiving a call from a credit card collector can prove to be intimidating. The collector may threaten a lawsuit if you don't pay your debt or continue to call you at your home, work and cell until he receives his money. Credit card collectors can be difficult to deal with, especially because they are often motivated by incentives from their respective companies. However, remain calm when dealing with credit card collectors in order to avoid ugly blowups. Instructions 1 Try to make fair payment arrangements with the credit card collector....

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How to Get All 3 Credit Reports for One Price

Under the Fair Credit Reporting Act, the three nationwide consumer-reporting companies---Equifax, Experian and TransUnion---are required to provide you with a free copy of your credit report once every 12 months, according to the Federal Trade Commission (FTC). The three reports can be accessed from one website. Instructions 1 Go to Annualcreditreport.com. This is the only authorized website permitted to provide free credit reports in one place from all three reporting companies. Reports can be ordered and printed together or obtained separately....

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Nonmonetary Reasons to Pay Off Debt

Anyone who has ever faced having a mountain of debt may tell you that the negative effects are not only financial but they can also wreak havoc in other areas of life. In some cases, ancillary effects may be worse than the obvious financial consequences. The act of paying off the debt can provide needed relief in a variety of important ways. Relieving Stress If you carry a lot of debt, you may also worry about whether you'll ever to be able...

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How to Tell My Husband About How Much Debt We Have

Hidden debt is a difficult topic for couples to discuss as it often initiates negative emotions along with feelings of hurt, betrayal and distrust. While it may be tempting to try to remedy hidden debt on your own, the stress and continuation of hiding facts regarding personal finances will eventually take their toll and often result in deeper debt. Additionally, when you accept the responsibility to discuss the details of your financial affairs upfront and honestly, the chances of a positive outcome are greater. Instructions How to Discuss...

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How to Calculate Deferred Interest

Banks, credit card companies and other lenders routinely offer accounts or products with deferred interest. With a loan or other debt, deferred interest means that you either do not pay interest for a specific amount of time or you pay less than the minimum balance and pay the difference plus interest later. The terms, meaning and calculation of deferred interest changes with each lender; be sure that you understand the rules of the contract before signing up. Instructions No Interest for Several Months 1 Determine if your deferred interest...

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Can Defaulted Student Loans Be Consolidated?

As college enrollment continues to increase at a rapid pace, the student loan debt load carried by the average American student similarly continues to grow exponentially. According to Finaid.org, the average student graduating in the 2007-2008 school year carried a debt burden of $23,186. As such, many college graduates who struggle to find employment default on these loans. Consequences of Defaulted Loans A defaulted student loan is more serious than defaulted credit card bills. While a defaulted loan will negatively affect your credit...

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How to Build Credit as a Small Business

As a small business owner, you may need to purchase equipment, rent a building or expand your existing operations. If you dont have enough capital to cover the expense, you may need to borrow it from a bank, a savings and loan association or a from a venture capital entity. However, your credit standing within the business world may determine whether you get the loan. As a small business, it is imperative that you build good credit as soon as possible....

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Can You Get Turned Down for a Corporate Credit Card Due to Personal Credit?

A corporate credit card can be a vital tool in financing a business. Creditors assess a company's credit history to determine whether the business is creditworthy. If a business is new and does not have an established credit history, your personal credit history becomes the primary factor in the approval process, and you may be turned down for a corporate credit card due to an unsatisfactory personal credit history. Business Credit Like personal credit, business credit information is updated monthly for companies registered with Dun &...

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What Happens When a Creditor Threatens to Sue?

When a person owes a debt to another party and then fails to pay back the money according to the terms reached with the creditor, the other creditor usually has the legal right to sue the person for failing to pay the money that he owes. A creditor can threaten to sue only if he has the legal right to do so. If he does not, then this threat is illegal. Creditors A creditor often has the legal right to sue for an unpaid, delinquent debt. The creditor is allowed to sue on the grounds that the debtor breached the contract that was used to...

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How to Write a Hardship Letter to a Mortgage Lender

If you're trying to stave off foreclosure on your home and want your lender to consider an alternative to your current mortgage terms, one of the first things you need to do is write a letter of hardship to the lender. This document is a necessary first step in creating a loan "workout", modification, forbearance agreement or other change to your loan status. The letter should focus on a specific event that caused you to fall behind on your mortgage...

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Debt Management & Credit Counseling

When a credit card has reached default--and before the debt is sold to a collection company--you may benefit from credit counseling and debt management services. These nonprofit organizations negotiate with your creditors and help you manage your money to make the payments. The key is to find a reputable organization that won't worsen your situation. Who Goes? People typically go to a credit card counseling service when their payments become...

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Will a Settlement With a Credit Card Company Hurt Others?

A settlement with a credit card company is an agreement to pay a credit card debt for less than the full balance owed. It is a tactic used for resolving delinquent accounts placed with a debt collector. SmartMoney reports that credit card companies typically settle delinquent debts for 20 to 70 percent of the balance. The exact settlement amount depends on the negotiating skills of the debtor and what the card company is willing to accept. Settlement with a credit card company usually only hurts the person whose name appears on the account. However,...

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What Happens to Charge Off Accounts?

A charge-off account is any debt that the original creditor removes from its accounting ledger and categorizes as "uncollectible." Although most people use this term to refer to credit card accounts, hospital debts, small business debts and unsecured personal loans can also be charged off. Most companies periodically charge off bad debts for tax purposes. Facts A creditor that charges off a debt has the right to retain ownership of the debt, but most do not. By selling the debt to a collection agency, a creditor can recover a portion of...

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How to Solve Your Debt Problems

Debt can be both a problem in and of itself and a symptom of a larger financial problem. Debt is burdensome because you must use money you earn today to pay off debts you incurred in the past, and the interest associated with debt always makes debt more expensive to pay off. If you manage to crawl out from under the weight of a heavy debt load, you must learn how to adopt frugal strategies to avoid getting into debt again. Instructions 1 Budget. By crafting even a simple budget, you can see in hard figures how much money you are taking in...

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Can a Collection Agency Suspend Your Licenses?

People who have defaulted on certain types of debt risk having their driver's or professional licenses revoked. However, a government-issued license can only be revoked by its issuing agency or a court of law, not a third-party debt collector. Collection Agency Power Collection agencies can make reasonable efforts to collect a debt from you, including calling you, sending you letters, and even suing you in court. However, a collection agency cannot take away a professional or diver's license on its own authority. Professional Licenses...

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Can the Government Help You to Get Out of Debt?

One of the federal government's responsibilities is protecting its citizens. This comes in the form of national defense and national security, as well as programs and administrations offering subsidies to struggling communities. At times, the government is even responsible for relieving individuals of debt burdens that have become unmanageable. Bankruptcy The first, and least attractive, government option is bankruptcy. Established by the U.S. Constitution, this protection enables consumers to start with a nearly clean slate. A bankruptcy...

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Help for Serious Debt

Seemingly harmless at first, debt can quickly turn into a problem that resembles a bottomless pit without a rescue rope. Serious debt can seem uncontrollable and the task of eliminating it may appear impossible. However, developing a debt elimination plan and sticking to it can help a consumer in a debt crisis get back in control. Assess Your Debt Figure out exactly much debt you have by making a list that includes the total amount owed to each creditor along with monthly minimum payments and interest. Knowing the total amount to pay off...

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Simple Strategies for Getting Out of Debt

Many people find that getting into debt is not hard; however, getting back out of debt is much more challenging. With hard work, dedication and a plan, getting out of debt can be accomplished by anyone. Create your plan and communicate its points to your family in order to accomplish your goals together and stay out of debt for good. Total All Debts Make a list of all of your outstanding debts. Make sure to include all debts, no matter the size. Do not estimate. Get out all loan statements and credit card bills to ensure that you find a...

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North Carolina Credit Reporting Law

Federal and state laws protect North Carolina residents from identity theft and inaccurate credit reporting. Because credit reports play a role in whether consumers get loans, credit cards, apartments and even some types of jobs, it is very important to keep an eye on the accuracy of the information reflected on these types of documents. Security Freeze North Carolina state law 75-63 enables citizens to demand a "security freeze" on their credit reports. As of 2011, it takes up to three days for the security measure to go into effect. Once...

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How Soon Will My Credit Improve After Negative Accounts Are Removed?

Removing recent negative accounts from your credit report can improve your credit score within 30 to 60 days. However, all credit situations are different, and no one can predict exactly when your credit score will improve or by how much. People engaging in credit repair should set reasonable expectations. Other factors are also important in increasing credit scores, such as the payment status of current accounts. Failure to pay current accounts on time will hurt credit scores even as negative accounts are removed. Expiring Accounts Most...

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Credit Card Payments & Death

When a person dies, the last thing those close to him want to think about is repaying his credit card debt. However, creditors must be informed so that they stop charging interest on the unpaid debt, and the debtor's executor must determine how to use estate funds to pay off credit card and other debt the deceased person left behind. Spousal Responsibility If you and your spouse have joint credit cards, responsibility for the debts passes to your spouse after your death. In addition, if you live in a community property state, your late...

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What Percentage of Unemployment Can Be Garnished in California

In California, private creditors cannot garnish a debtor's unemployment benefits pursuant to the California Code of Civil Procedure. However, the California Employment Development Department is authorized to invoke collection efforts through garnishment to collect overpayments or unemployment benefits obtained by fraud. California Code of Civil Procedure According to the California Code of Civil Procedure, unemployment benefits and contributions are exempt from judgment collections, and judgment debtors are protected from having their unemployment...

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How to Dispute Bad Credit

In order to dispute bad credit on your report, you can either pay a company to do this for you or do it yourself. It will cost you nothing to do it yourself, while paying a company to contact the creditors and fight your bad credit can run into at least $800 per item you want removed. The company will not guarantee anything either. In order to dispute bad credit on your own, it will require time, patience and perseverance. Instructions 1 Request a credit report from each of the three major credit agencies. They are Experian at 800-685-1111,...

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How Long Between Bankruptcy Filings?

The decision to file personal bankruptcy is usually a difficult one. The consequences of a bankruptcy are long-term, since a bankruptcy on your credit report can have an affect on new loans and credit. Bankruptcies open the door to a fresh start, and if you experience hardship after an initial filing, you can file again in the future. What is a Bankruptcy? A bankruptcy helps debtors who can't manage or pay their existing debts. Filing bankruptcy...

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How Can I Get Something Taken Off My Credit Report?

Maintaining a good credit history is a critical part to increasing your integrity when it comes to purchasing an automobile or home, taking out personal loans or credit cards. Consumers with favorable credit ratings get lower interest rates and higher credit lines than consumers with damaged credit. Occasionally, an incorrect item may sprout up on your credit report. To fix this, you can easily dispute the incorrect items so that they may be corrected or updated. Obtaining Your Credit Report Your credit report is an invaluable tool that...

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How to Improve Debt Utilization

Debt utilization---which is the percentage of your credit card debt in relation to your credit limit---affects your credit score. The more debt you owe, the greater the likelihood of a lower FICO rating. A low rating can lead to higher interest rates on future loans, and possibly result in loan and credit rejections. But you can improve your debt utilization and boost your personal score. Instructions 1 Begin paying down your debt. Lowering...

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The Statute of Limitations on Bad Debts

Ignoring a debt you owe does not make the debt disappear, but if your creditor does not successfully collect the debt within a state-mandated time frame, they face limited collection options from that point on. The statute of limitations provides each creditor with a pre-set amount of time during which it may pursue legal action against a debtor when recovering an unpaid debt. Significance The statute of limitations protects you from retaining legal liability for an unpaid debt beyond a certain time frame. The statute of limitations for...

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Florida Payday Loan Statute of Limitations

Payday loans allow debtors to borrow against their next paycheck to get cash for emergencies. However, most payday lenders charge high interest rates, and the borrower may find himself unable to pay back the loan when he gets paid. If a borrower fails to pay back a payday loan, the lender may take collection action against him. Florida gives lenders a limited amount of time to do this in most cases. Debts Florida law sets the statute of limitations for unpaid debts at five years. This means that if you do not pay back your payday lender,...

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Pros & Cons of Debt Consalidation Companies

When debt begins to overwhelm your finances, it not only interferes with your ability to make ends meet, but it also might make it difficult for you to get a future loan or line of credit. Debt consolidation companies buy out your existing debt and pay off your creditors, allowing one a lower monthly payment, rather than several different payments you can't afford to make. It sounds like a dream come true, especially if you are drowning in debt, but there are important factors to consider before you sign on with a debt consolidation company. ...

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Reason for Paying Debt on Time

Difficult financial times cause some people to consider paying bills late, especially when the budget is stretched thin. When it comes to your debt accounts like credit cards and loans, paying on time saves you money and financial problems down the road. Understand how timely debt payments benefit your financial health before deciding to miss a due date. Avoid Fees A late payment on a debt account results in a late fee. Most creditors and...

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If I Have a Judgment But the Defendant Works in Another State Can I Garnish His Wages?

The decision as to whether a creditor or debt collector can garnish a debtor's wages is governed by state law. Most states allow creditors to garnish wages to recover delinquent debts. Before you can seek garnishment, you must obtain a court-ordered judgment. If the debtor works in a different state from you, garnishment might still be possible. Determination A wage garnishment is effective in the state in which the debtor works. As of June 2011, only Texas, North Carolina and South Carolina did not allow creditors to garnish wages. For...

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Delinquencies & Foreclosures

Homeowners in record numbers are delinquent on mortgage payments and may be losing homes to foreclosure. And as Bank of America suspends foreclosure proceedings in many states, due to possible fraudulent documentation, it is more essential then ever to have a firm understanding of delinquency and foreclosure as well as methods of avoiding or remedying such situations. Delinquency Delinquency can dramatically effect a person's credit. ...

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Financial and Credit Card Help

Personal finances and credit card debts can get out of control for various reasons, whether from job loss, catastrophic illness or simple overspending. You may require assistance if you keep sinking financially despite your best efforts to stay afloat. The Federal Trade Commission (FTC) advises that there are legitimate help sources for credit card bills and overall debt management, but warns there are also some scams to be aware of. Counseling and Education Speaking to a professional, studying educational materials or taking financial...

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Can I Call Credit Card Companies to Settle My Debt?

If your credit card debt is overwhelming, working out a settlement with your creditors may be your best option for avoiding bankruptcy or a lawsuit. In some cases, you can negotiate with credit card companies on your own, though you may want to consider getting outside assistance. Settling Debt Credit card companies are sometimes willing to settle your debt for less than you owe, though they may require that you cancel your account as well....

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Is an Authorized Cardholder Liable for Credit Debt?

Listing someone as an authorized user rather than adding them as a joint holder to the account gives them complete access to a credit card, but without the liabilities. In certain states and if you have a spousal relationship, you may be liable for someone's credit card debit no matter the status of the account. Identification Authorized users are not liable for credit card debt, according to BankRate.com. Unlike a joint account, authorized...

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About Debt-Free Solutions

Implementing a few debt-free solutions into your daily life can help you reign in spending and pay down your outstanding balances. Debt can occur from overspending, high medical bills, unforeseen incidents and poor budgeting. Recognizing the causes and outlining a clear plan to eliminate debt can help you regain control of your finances. Considerations Frequently taking out loans and using credit cards on a whim may play a role in your debt problems. Solving debt is often a matter of developing a measure of control. The need for instant...

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How to Erase Debt Legally

If you currently have an excessive amount of debt, you are certainly not alone. Many people accumulate debt for various reasons, such as unexpected medical bills and car repairs, buying luxury items they cannot afford, or losing their main source of income. However, having too much unpaid debt on your credit report may damage your credit history and prevent you from qualifying for financing in the future. Fortunately, there is a way to eliminate...

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