How Do Companies Write Off Your Credit Card Debt?

Credit card companies write off consumer accounts that it deems uncollectable. This prevents the company from wasting further resources attempting to collect the debt. Once a credit card company charges off your account, it will appear on your credit report for seven years. Facts Credit card companies write off unpaid debts by purging the records of each bad debt from its accounting ledger. Once a company writes off a debt, the debt no longer...

Read More

Tax Impact of a Defaulted Forgiven Debt

If you are feeling overwhelmed by debt, you may be considering enlisting a debt cancellation company's help. That's one option you have instead of bankruptcy. However, if you are expecting your debt forgiveness company to arrange for you to pay only a portion of the total debt owed, be aware that there may be some consequences for your taxes. Debt Cancellation Debt cancellation is the process of working with a third party to pay off your...

Read More

How to Test a MasterCard

Before you accept MasterCard payments in your store or online, test a MasterCard to make sure that you can properly process payments for the corporation. MasterCard is an international corporation that is designed to process payments between merchants and the bank that issues the card. To accept a MasterCard from a customer, you must be approved to accept them through MasterCard or through a third-party payment processor such as Google Checkout or PayPal. Instructions 1 Enter a dollar amount for the transaction. If you are testing a real...

Read More

Is It Safe to Use My Credit Card for Purchases?

Credit cards serve two primary functions for consumers. They offer a more convenient payment method than checks, and they supply a quick source of immediate credit, though at a hefty price when compared to other types of consumer loans. Your credit card is connected to a pre-approved line of unsecured credit, which means you are not offering any assets as collateral that the lender can seize if you fail to repay your debt. Function Credit...

Read More

Can You Pay Off Payday Loans With Collection Agencies?

If a person fails to pay back a payday loan on time, the company that issued the loan may attempt to get the money back by hiring a collection agency. This collection agency, which will either be hired on commission or will purchase the debt outright, may attempt to incur repayment through a variety of means. A payday loan borrower is legally required to pay any collection agency the lender hires. When he wishes to repay the loan, the debtor can make payments directly to the collection agency. Payday Loans A payday loan, although generally...

Read More

Can You Quit a Claim to a Property If You Owe on Other Things?

Quitting claim to a property is a simple administrative procedure that doesn't depend on the amount of outstanding debt you have. It's a questionable strategy for debt management if you have a mortgage, however, because a quitclaim does not release you from the mortgage. You could find yourself obligated to make monthly payments without having legal rights to the property. Furthermore, you can't hand the property back to the mortgage company by filing a quitclaim. Quitting Claim Vs. Canceling Your Mortgage Obligations Removing your name...

Read More

How to Answer a Debt Summary Judgment

Creditors and collection agencies often use a motion for summary judgment as a way to quickly get a court order stating that the debtor owes them the money. The court will grant summary judgment if the judge believes that there are no material issues of facts in the case and the creditor is entitled to judgment as a matter of law. Because the court can grant summary judgment without a hearing, you should answer any creditor's summary judgment motions in writing. Instructions 1 Read the laws in your state to determine how long you have to...

Read More

Debt Advice

Debt is something that is easy to accumulate but difficult to get rid of. Dealing with your debt can seem daunting and frustrating, but with a little patience and the advice you can start to get your debt under control. Talking to Your Creditors One of the tactics you may use to help bring down your debt is to negotiate directly with your creditors. This can be a good idea, but there are some things you should keep in mind when you talk to your creditors. Always remain calm and pleasant. They will be less likely to take an interest in helping...

Read More

What If I Apply for Debt Consolidation Without Security?

Consolidation is a debt management option that involves taking out a loan to pay off your old debts. Often, consolidation involves a security, such as your home. However, unsecured consolidation loans also are available. Whether you can apply for unsecured consolidation loans depends on your financial situation and who you approach for the loan. Even if you qualify, you should understand when getting the loan is in your best interest. The Short...

Read More

Does Getting a Credit Account Improve Credit Ratings?

Credit rating improvement involves actively using credit and demonstrating responsible management of all your loans and accounts. You cannot fix a battered credit score without some accounts through which you establish on-time payment records. Creditors want to see recent activity on your credit reports, and new accounts that you maintain in good standing influence your credit score positively. Types You need more than one credit account to improve your credit rating. MSN Money columnist Liz Pulliam Weston explains that creditors want to...

Read More

Debt Snowball Tips

Financial advisor Dave Ramsey popularized the "Debt Snowball" program for people trying to get out of debt. The program is based on the concept of building momentum with extra payments by adding the previous payment on debts you have paid off to the next debt on your list. Soon you will be making very large extra payments on your biggest debts, and the successes of paying off your smaller debts help you build emotional momentum as well. Stop Accumulating Debt Before starting the debt snowball program, you need to make two major changes...

Read More

How to Get Rid of Debt Collectors

Debt collectors are persistent. They'll call your home two and three times a day, leave harassing messages and they might call you at work. Debt collectors have a legitimate job, which involves collecting money on past due accounts. However, this doesn't give them the right to harass debtors. Debtors have specific rights. And fortunately, there are ways to get rid of debt collectors and stop the harassment. Instructions 1 Write a dispute letter. Occasionally, an old charged-off debt or an unknown debt will come to haunt a person. When this...

Read More

Financial Debt Assistance

Financial debt can be overwhelming, especially if you do not know where to turn. In today's economy many consumers find themselves living paycheck to paycheck; using credit cards to pay for the basic necessities needed to survive. Eventually when it becomes difficult to make even the minimum monthly payments, late fees and higher rates become the new nightmare. Fortunately there are financial debt programs that can help you get back on your feet....

Read More

Divorce & Debt in Georgia

In Georgia, when spouses cannot agree to a mutually acceptable property settlement agreement, they may request a judicial property division from family law judges or from a 12-member jury upon request. During the pending trial, Georgia Code Section 19, Section 19-5-7, Domestic Relations, prohibits spouses from transferring property, except as required by law, until the court issues a final divorce decree. Property and Debts Georgia courts...

Read More

Credit Card Payment Options

With the advent of technology, you now have more options to make credit card payments. You can still make them through the mail, or you can take advantage of other methods that are not only more convenient, but can also buy you more time---sometimes a valuable commodity. In the end, it's all a matter of personal preference Internet Credit card companies now list their home page URLs on the back of their cards and on paper statements. Somewhere...

Read More

How Can My 18 Year Old Get Out of Debt?

Credit cards, automobile loans or student loans can cause 18-year-old individuals to go into debt. Your 18-year-old can get out of debt by getting financial assistance or finding methods to gradually get out of debt. Budgeting One of the best ways for a person of any age, including an 18-year-old, to get out of debt is to pay her bills on time or ahead of time. Paying off bills can help teens to start building good credit. They often need...

Read More

How to Clear a Bad Credit Record

A bad credit record severely affects your ability to get credit. All lenders, when considering your application for credit, check your credit record. Ensure you know what your credit records show. Three credit reporting bureaus are used by lenders: Experian, Equifax and TransUnion. You can get free credit reports annually for all three from AnnualCreditReport.com. It's the first place to start. Be patient: it takes time to clear a bad credit report....

Read More

Is There a Set Limit That Can Be Garnished Out of a Paycheck?

Wage garnishment is the process by which an employer is ordered to withhold a certain amount of money from an employee's paycheck in order to satisfy a debt. A garnishment is often the result of a court order but can be unilaterally undertaken by government agencies as well. While having your paycheck garnished can be a disturbing experience, a worker can rest assured that federal law has established a maximum limit that can be taken. Garnishable...

Read More

Removing Collections From Credit Report

Collection items are entries on your credit report that result from failing to pay a debt that is then assigned to a debt collector. Collection items harm your credit and make it difficult or impossible to be approved for certain types of loans, including home mortgages. Mortgage companies usually refuse to approve loans until all collection items are paid. Some people repairing their credit seek ways to have collection items removed. Federal Law The Fair Credit Reporting Act allows collection items that are accurate to appear on your credit...

Read More

Personal Debt & Credit Counseling

You are a likely candidate for credit counseling if you are struggling to pay your bills on time, frequently borrowing against lines of credit to pay other bills or often making withdrawals from your savings or 401k to meet monthly obligations. Credit Counselors Certified Consumer Credit Counselors can advise you on financial strategies for getting out of debt and maintaining a budget. Its services include: credit management education, confidential debt counseling and home buyer education. Bankruptcy and Foreclosure Credit counselors...

Read More

Why Is it Important to Build a Credit History?

When you build your credit history, you establish a record of financial trustworthiness. As a good credit risk, you'll be approved for credit cards or bank loans, you'll be a strong job candidate and you'll be able to pursue goals like buying a home. Getting Loans With a good credit history, you look more attractive to potential creditors, and they will be more willing to offer you loans for your long-term goals. For example, when you have a history of paying your credit card bills on time, you're more likely to be approved for a mortgage....

Read More

How to Build Credit as a College Student

College is where students learn about living on their own, how to get along with a roommate and how not to depend on the bank of Mom and Dad. Young adults tend to spend lots of money once they are out on their own, and credit card companies know this. College students often pay their credit card bills before anything else because they want to keep spending. Building a good credit history and being responsible with credit will help avoid future credit...

Read More

Debt Settlement Vs. Debt Consolidation

Two common ways to manage or eliminate debt are debt settlement and debt consolidation. Even though both have a similar goal they are two very different ways to control debt. Function Both debt settlement and debt consolidation are ways for people to restructure or pay down their debt. The ultimate goal of both is to become debt free. Types Debt settlement agencies help you reach an agreement with your creditors for lower monthly payments and interest rates. Debt consolidation is a restructuring of your debt so that your monthly...

Read More

Does a Collection Agency Collect Civil Money Judgments?

When a defendant loses a lawsuit, he may be ordered to pay damages to the plaintiff. These damages, referred to as a civil judgment, are like any other debt. The defendant is legally obligated to pay them, and, if he does not, the plaintiff may takes a number of steps to recover the money. This includes hiring a collection agency to incur payment of the funds. Civil Judgments When a judge or jury awards money to either a plaintiff or defendant in a civil lawsuit, the civil judgment becomes a legal debt obligation of the losing side in the...

Read More

Help for People With Debt Problems

Debt problems can easily overwhelm people who face changing employment circumstances, health crises or poor financial self-management. The Federal Trade Commission mentions several possible solutions, ranging from counseling to bankruptcy. Counseling If debtors cannot manage their own debts or negotiate lower payments with their creditors directly, they may consider working with a credit counselor to develop a workable repayment strategy. Credit counselors often enroll their clients in debt management programs that involve regular monthly...

Read More

Can You Obtain an Auto Loan While Collecting Unemployment?

It's possible to qualify for an auto loan while collecting unemployment --- it depends on your overall credit and financial situation. For example, you may have multiple income streams from retirement plans, small businesses and other investments. Losing a job and collecting unemployment isn't always a hardship in those situations. However, if your only source of income is unemployment, you may find it impossible to qualify for a car loan. Considerations Unemployment benefits are temporary: You receive only a small percentage of your previous...

Read More

Does Consolidating Your Credit Work?

There are several options available to individuals interested in consolidating their credit. There are pros and cons associated with every option. In deciding which consolidation program is right for you, you should consider the type of debt you have and how indebted you are. Consolidating your credit can work, that is, it can be effective in getting you out of debt. However, you must evaluate the advantages and disadvantages of all available options....

Read More

Five Tips for When Choosing a Credit Counselor

A good credit counselor is a lifeline when you are drowning in debt. The Federal Trade Commission (FTC) website explains that legitimate credit counseling firms provide materials, education, budgeting help, negotiation with creditors and debt managements plans. Some counseling companies are not legitimate, even if they run fancy ads or make expansive promises, the Better Business Bureau (BBB) warns. Choose a counselor carefully to avoid getting scammed. Services Offered Choose a credit counseling firm that offers a complete range of services....

Read More

How to Negotiate Payment With a Debt Collector

Being in debt is stressful enough as it is. So don't let debt collectors make it worse. When it comes time to negotiate with a debt collector, a little preparation and confidence can make a huge difference when it comes to creating a plan to paying back the money you owe. Take control of your finances, and negotiate the right way. Instructions 1 Be realistic, and figure out what you actually can afford to pay back. Don't compromise on what you expect yourself to be able to pay back. Compromise on what you know you'll be able to pay back....

Read More

The Average Consumer Debt As Percent of Income

Ratios and percentages help banks and financial experts determine consumer debt averages. Some organizations use these figures to make determinations about the economy as a whole. Others use them, especially the personal income to debt ratio, as guideline for loaning and loan terms. Definition Consumer debt as percentage of income shows how much debt consumers have, in relation to their other income. This figure is often used with disposable income, or the income that remains after consumers have paid for unavoidable expenses, like taxes...

Read More

Do Payday Advances Use Your Savings Account?

People who need a short-term loan will often seek out payday loans. Payday loans are loans the borrower must pay back within a short period of time, generally several days to a month. The borrower also typically pays a high interest rate. When taking out the loan, the borrower must provide the lender with some form of payment in advance. This payment is usually drawn from the individual's checking account, not his savings account. Payday Loans When a person takes out a payday loan, the lender will usually require that he provide a bank...

Read More

Legally Reduce Your Credit Card Debt

When you're paying off your credit card debt, the last thing you want to do is waste time and money on methods that don't work, or worse yet, are illegal. Depending on the degree of your credit card debt situation, you may choose to pay off your debt on your own or obtain assistance through a credit counselor. Self-Help Payment Plans You need a plan of action when paying off your credit card debt on your own. One method is called the "debt...

Read More

Is it Good to Settle Credit Card Debt?

Creditors may be willing to cut their losses on consumer credit card debt and accept less money than some customers owe on their accounts. There are drawbacks to settling with creditors because debt settlements usually cause credit scores to drop. However, settlements may be the best option for some people who are deep in debt and have no other way to pay their creditors. Settlement Process Credit card companies that work out settlements directly with consumers rather than through collection agencies usually come out ahead. According to...

Read More

What Is Unmanageable Debt?

Most residents of the United States have some form of debt, be it credit card debt, a mortgage or a car loan. In many cases, taking on debt can be a healthy method of purchasing things that a person lacks the current resources to afford. However, when the debt becomes too large, it can be considered unmanageable. Definition Unmanageable debt can be defined in several ways. Debt can be quantified numerically using a number of measurements, including negative net worth and debt-to-income ratio. However, debt can also be measured according...

Read More

Advantages & Disadvantages of Renting a Home

It's a question that's been asked for years. What are the advantages and disadvantages to renting your home versus buying it? Frankly, there is no one answer to this question because it depends on the condition of your pocketbook, whether you plan to stay in one place long enough to reap the rewards of ownership, and the economy. So before you make the decision to rent your home, it is wise to know the pros and cons. Taxes When you rent your...

Read More

Rebuilding Bad Credit

Credit Cards Accruing significant credit card debt is an easy way to ruin your credit score if you're unable to pay it off on time--or if you keep a balance on your card that's more than half of your credit limit. Thus, tackling this bad credit is the first thing you can do to rebuild your credit. If you only rely on one or two credit cards, applying for a third or fourth card that has a low introductory offer can be an option if you can qualify....

Read More

Should I Pay off a Credit Card or Make a Deal to Reduce It?

Paying off the balance on your credit card each month is part of a strong strategy to maintain a top tier credit score. This shows responsible spending habits and financial management. When your balance gets too high and you are unable to make payments on the account, a settlement plan may help you pay off the account. This type of plan may get rid of your debt but it can also hurt your credit score. Contact Creditor If you are experiencing a financial hardship and are temporarily unable to make normal payments on your account, it's important...

Read More

How to Repair Your Credit Score for Free

While many companies claim an ability to fix your credit scores for a fee, there are also many ways you can improve your credit on your own. If you do not want to pay a company, taking steps like making timely payments and paying down your balances can considerably improve your standing with the three major credit bureaus. Instructions 1 Make timely payments to every creditor. Regularly doing so will make a big difference in your credit score. As much as 35 percent of your score is based on your payment history, so if you have even one late...

Read More