Does a Credit Card Settlement Affect Credit History?

When you can't make payments on your credit card debt and you're considering bankruptcy, negotiating a debt settlement with your credit card company can help you avoid a chapter 7 or chapter 13. But before beginning the negotiating phase, understand debt settlements and recognize how settlements affect your credit history. What is a Settlement? A settlement is an agreement or contract between you and your credit card company that permits you to satisfy your outstanding credit card balance for less than the amount due. The savings realized...

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Foreclosure & Bank Options

You can avoid losing your home to foreclosure by reaching a compromise with your bank. The Federal Trade Commission says lenders can offer several programs to end foreclosure proceedings and keep you in your house. The FTC says the key is to contact the bank as soon as you realize you are about to start missing payments. It is even more important to contact the bank right away if you have already missed a payment. Forbearance The FTC says...

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How Much Your Credit Drops in Bankruptcy

If your bills, debts and other obligations have become financially crippling, it may be time to file for bankruptcy. Filing for bankruptcy is a complex legal process that has lasting effects on your finances and could cause major damage to your credit history for years. The credit score point-drop following bankruptcy varies depending on an individual's financial history and current credit score. Credit Scores Lenders use your credit history...

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How Does a Short Payoff Refinance Affect Credit?

A short payoff or debt settlement is a type of debt-negotiation. The process allows the lender and debt holder to re-negotiate the terms of the debt. Through mutual agreement, the amount due may be reduced, fees and penalties waived, payment time extended, or interest charges reduced. The debtor may deal directly with the lender or through a debt settlement agency or a lawyer. Ideally, the refinanced deal enables the customer to gain control of his...

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Unsecured Debt & Survivor Liability in Florida

When a family member or loved one passes away, there are generally many legal and financial details for the survivors to handle. One concern with many families is whether they are liable for debts left by the decedent. In Florida, as in all other states in the country, a deceased person's relatives and surviving family members are not legally responsible for paying outstanding debts unless they are joint signers on the debt or they take over the debt at the time of death. Probate Florida requires estates valued at $75,000 or more to go...

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How to Stop Reposession

Your lender has the option to repossess your home or vehicle if you fall behind on your payments. You can also be on the hook to lenders and may have to provide your possessions as collateral. Your possessions will be put up for sale at an auction and you can still be liable for repaying the balance of the loan. When making payment arrangements with the creditor isn't enough, bankruptcy is the only option. Bankruptcy will damage your credit rating...

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How to Decrease the Amount Owed on Credit Cards

If looking at your credit card statement each month causes you to panic, then it is time to decrease the amount you owe on your credit cards. Credit card debt is a revolving debt that increases because of the interest payment added. It also reduces your monthly disposable income because you are paying off items bought in the past. By taking drastic steps now and following them until the credit cards are paid off, you can build a solid financial future for yourself. Instructions 1 Stop charging items on your credit card. Remove all credit...

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What Is the Difference Between a Finance Charge & an Annual Percentage Rate?

Loans are often necessary to help cover unexpected expenses or to purchase particularly expensive items, such as cars and homes. When a consumer borrows money, he may not understand all the charges associated with the loan. Most lenders charge annual interest rates, or APRs. Lenders may also impose additional charges, which constitute finance charges. Finance Charge vs. Annual Interest Lenders want to provide some incentive to the borrower to repay the loan in a timely fashion. Finance charges and interest rates impose additional monetary...

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How to Pay Off Debt in a Short Time

Paying off your debt in a short amount of time is a goal that will not only help you save more of your money in the long run, but will help your credit score and your peace of mind. Paying off your debt in a short time will take discipline and hard work. The higher your debt balance is, the more difficult this task can be. With a plan, anyone can pay off his debt, regardless of the balance. Instructions 1 Add up all your debt. This can be any debt that you are desiring to pay off in a short time, such as credit cards, car loans or personal...

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Easy Ways to Fix Your Credit

A low credit score can have many negative effects on your life, including higher insurance rates, higher interest rates and being denied for auto, home and personal loans. Having a low credit score can also have adverse effects on your well-being, as you may feel stressed and overwhelmed. Fixing your credit to obtain a higher credit score can be an easier process than you think. Pay Your Bills On Time Paying your bills even a day late can...

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Can a Collection Find Out If You Have a Bank Account Without You Telling Them?

If you are behind on debt payments, and a collection agency believes that you are not willing to cooperate in repaying your debts, the collection may file a lawsuit for judgment in the county where you reside. If the court grants judgment, the collection agency may freeze your bank account in accordance with your state's laws. The collection agency typically relies on you to provide bank account information; however, it may also use other means to locate your bank account. Public Records Certain legal matters, such as personal bankruptcies...

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What Forms Do I File if I Settle on a Credit Card?

Settling a credit card is an option once you are behind on your debt. When you settle a credit card you pay less than you currently owe, in a lump sum, and the credit card company agrees to forgive the remaining amount of the debt. Settling a credit card does negatively affect your credit score, but it is better than having outstanding bad debt on your credit report. Settling a credit card debt requires filing certain tax forms and keeping certain...

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Can Hospital Bills Go on Your Credit Report?

Even if you are insured, an unexpected trip to the hospital can leave you responsible for steep hospital bills. Unfortunately, ignoring your medical debts can not only damage your credit rating, it can leave you subject to a lawsuit from the hospital or collection agency that purchases your account. Facts Unlike credit card companies or mortgage lenders, hospitals do not report the debts you incur to the credit bureaus. Thus, your initial...

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What Is Asset Acceptance LLC?

Asset Acceptance LLC is a subsidiary company of Asset Acceptance Capital Corp., which buys charged-off accounts from credit card and loan companies and then attempts to collect on the past-due debts. Purpose Asset Acceptance LLC helps companies create cash for charged-off accounts. For example, if you owe a credit card company for an outstanding balance and it writes off the amount you owe, Asset Acceptance LLC pays cash for the outstanding balance and then attempts to collect from you. Structure Asset Acceptance Capital Corp., the...

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How to Collect a Bad Debt Pre Judgment

Without a court judgment, a creditor's debt collection abilities are limited, because it cannot legally seize the debtor's assets. The creditor can only demand that the debtor voluntarily pay what he owes. If a debtor knows that she is likely to lose her assets to a creditor, she can dispose of those assets prior to the court rendering a judgment against her. Pre-judgment attachment freezes the debtor's assets until the judge renders a decision. Creditors can sometimes utilize pre-judgment attachment to procure payment from the debtor before...

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What Are Financial Solutions for Debt Collection?

The best financial solutions for dealing with debt collectors depends on your situation. People who have the money to pay all or most of what they owe will have more prospects for negotiating with collectors to settle their debt. However, people who can't pay their debt in full can still try to negotiate a settlement they can afford. Settlement It's debatable whether a consumer should pay a debt in full that's already been sent to a collector. Some consumers note their moral obligation to pay their total debt, but others also consider the...

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Do Medical Bills Affect Your Credit Score?

Medical bills can affect your credit history and your credit score. The extent to which they have an impact on your credit score will depend on several circumstances. If your credit score is lowered, you may be charged a higher rate of interest on other credit products. Ultimately, you will pay more in finance charges. Misconceptions When you receive a medical bill, it is not usually reported to the credit bureau. Once you become past due, then the hospital will report your account as past due. Significance When medical bills...

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About Gasoline Credit Cards

Gasoline credit cards work in a similar manner as other bank-issued credit cards in that they allow the user to charge purchases and repay at an agreed upon interest rate. Gasoline credit cards, however, are more likely than other consumer credit cards to offer rewards and incentives. The key to getting the best value in a gas card is to do your research and choose a card that works best for you. Definition A gasoline credit card is a bank-issued...

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How to Avoid Garnishment

Both your wages and bank accounts are subject to garnishment if a creditor sues you for debts you left unpaid and obtains a civil judgment against you. Naturally, the best way to avoid garnishment is paying all of your bills on time as they come due. If a creditor files a lawsuit against you for an old debt or a debt you do not recognize, however, responding to the court summons in a timely manner and presenting a solid defense in court can help you avoid having your wages or bank accounts seized by the creditor. Instructions 1 Read the...

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Steps to Take When Sued by a Creditor

Court cases on television portray high drama and interesting situations, but this is rarely the way that it really is when a creditor sues a debtor for nonpayment of a debt. The process is very mechanical, and emotionless. Knowing this in advance can help a debtor deal with the matter objectively, and keep the emotional response to a minimum. Taking proactive steps can help stave off a judgment or garnishment before it happens. Respond When you receive an official court summons, it will have the date of the hearing and the location of the...

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Will I Take on My New Husband's Debt?

While debt incurred before marriage can affect your household budget and finances, you are not responsible for paying any debt incurred by your spouse before marriage. To avoid unwittingly taking responsibility for his debt, do not take out a joint consolidation loan and keep your own money and property separate and in your own name. Debt Before Marriage You and your husband are each solely responsible for your own debts taken out before you got married. Unless either one of you co-signed for a debt, or you jointly took out a consolidation...

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Credit Watch Information

Credit Watch is a credit monitoring product sold by Equifax, one of the three major credit bureaus. Credit Watch is a paid subscription service that can be used to detect identity theft. Features Credit Watch monitors your Equifax, Experian, and TransUnion credit reports and sends either email or text alerts whenever there are changes to your credit reports. Benefits Credit Watch places automatic fraud alerts on your credit report...

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How to Pay a Collection Agency by Check

When creditors call and mail you in attempts to collect debts, you want to make good on the money you owe. Collection agencies typically make it easy for you to make payments. You can pay a collection by check over the phone or by mail; just gather some contact information from the collection agency and understand what information the agency needs. Instructions By Phone 1 Call the number found on the collection agency letter and speak to a...

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How to Get a Name Off a Credit Card

Adding someone's name to your credit card as an authorized user can help this person establish his own credit history. The person could be your child or spouse. This credit card account appears on your credit report and the other person's as well. You can call a credit card company to add someone's name to the account, but if you want to remove someone's name from the credit card, you need to follow specific steps. Instructions 1 Contact your credit card company for specifics. Credit card companies vary, and some may not remove an authorized...

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Why Is Debt Important?

While most people have some debt, typically the importance of that debt is in direct proportion to the amount of debt they have. As the amount of debt that you have grows, you can find that your debt permeates every aspect of your life. While some debt, such as a mortgage, business or automobile loan, can show stability and maturity, having more debt than you can pay can affect your health, relationships and your employment. Home Ownership Typically, you will have to go into debt to afford a home. Aside from being the so-called American...

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How to Save Money at Kohls

If you walk into a Kohls store these days, you may discover it is possible to save money. However, you may feel the merchandise Kohls sells is not worth the money. But what if you could save money at Kohls and get more for your hard earned dollar. Instructions 1 Show your driver's license at the checkout and save money if you are shopping on Kohls senior day. This is usually a Wednesday. Call your local Kohls store to find out more. The discount is around 15%. If you are not shopping on Wednesday, place items on hold until Wednesday...

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How to Stop Debt Collection Calls and Letters

Debt collectors must adhere to the Fair Debt Collection Practices Act (FDCPA) which ensures fair treatment and approved debt collection practices. Under this act, the debt collector must stop calling or writing if you send the company a letter requesting an end to these practices. With the exception of contacting you to warn you about any legal action taken against you, debt collectors must stop contacting you upon receipt of this letter. Writing the letter is straightforward and only takes a few minutes. Instructions 1 Speak to the debt...

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How Can I Get Out of Debt Quickly?

Getting out of debt and staying out is beneficial to both your financial profile and your mental health. The interest charges associated with excessive debt keep your bank balance lower than it could be, and worrying about creditors can interfere with your enjoyment of life. Taking action to reduce your debt is a valuable investment in your own future. Socialize at Home If a substantial portion of your debt has been incurred through spending...

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Debt Relief Law in Washington

Failure to pay your debts as promised can lead to a number of financial consequences including lawsuits, auto repossessions, home foreclosures and wage garnishments. Washington state and federal laws enable you and your creditors to negotiate debt relief either privately, through a credit counseling company or through the bankruptcy process. Debt Management Plans You can request help in communicating with your creditors through a nonprofit agency such as Consumer Credit Counseling Service of Seattle. Once you give a representative of your...

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Revolving Credit Versus a Line of Credit

Lines of credit and revolving debt are quite similar. These loan products are especially helpful for those building homes, remodeling, and paying off other debts. While the terms on these products can be quite varied, there are general principles that apply to both. In general, these loans should not be considered long-term financial solutions, but rather bridge loans that carry you to the next product. Similarities The term "revolving credit" and "line of credit" can be interchangeable. For example, a credit card is both a line of credit--one...

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How to Determine an Interest Rate With a Calculator

The interest rate on a loan or credit is the amount the funds you borrow will cost you in the long run. The rate is usually a percentage of the principle, or amount borrowed, calculated over time. You can determine what your interest will be if you know the rate, and a calculator will speed this process considerably. It is always a good idea to keep up with your interest payments, especially if the interest you owe is compounded (added to the principle)--causing...

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Why Does the Debt Consolidation Program Work?

Debt consolidation is the act of combining all of your credit accounts under a single loan payment, according to Lending Tree. The point of a debt consolidation plan is to reduce your debt and lower your monthly obligation to free up more cash. To understand why debt consolidation works, you need to understand what it does for a consumer. Interest A debt consolidation program is created by a low-interest loan that is used to replace high-interest...

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How to Write a Letter to Your Credit Card Company to Negotiate a Settlement Debt You Owe

Writing a letter to your credit card company to negotiate a debt settlement can help you pay off your balances for less than what's owed. Not every creditor is opened to the idea of a debt settlement, though. Before approving your request, creditors examine details of your current financial standing. Instructions 1 Provide account information. Begin your letter by introducing yourself and including your account number and balance owed. ...

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Comparing Debt Relief Programs

Legitimate debt relief and credit counseling services do exist. Unfortunately, unscrupulous companies targeting cash-strapped consumers also exist. Protect your finances and credit by comparing services and pricing from several companies before choosing a debt relief plan. Types Debt consolidation companies offer lower interest rate loans to pay off multiple high interest rate debts. With debt negotiation, a debt relief company negotiates...

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Are Judgments Public Record?

By definition a judgment is a final decision made by a judge based on material evidence during a case in a court of law. There are different types of judgments, including financial, family and criminal, all of which the general public can access. Public Record Definition A public record is any legal document that is ordered, created and maintained by the government. These documents are available for the public to review and obtain a copy...

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Can a Money Judgment Be Negotiated?

Consumers who hold debt without paying can be sued, and typically are by credit card companies and mortgage lenders. When a creditor takes a debtor to court and receives a favorable verdict, the result is called a "money judgment." The money judgment is how the court tells the debtor to pay and tells how much is to be paid to the creditor. The judgment is typically in the amount of the debt, but the debtor is free to make attempts at resolution,...

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About Consumer Debt Relief Programs

Consumer debt is debt individuals accept as a means of purchasing something for personal use without immediately paying the full price. They may do so by securing a loan or using a credit card. Many Americans manage to keep their consumer debt within manageable levels, but some, either due to negligence or catastrophic events, lose control of their ability to pay their debts. In these cases, consumer debt relief programs can help. Types of Consumer Debt Relief Organizations The main distinction between consumer debt-relief organizations...

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Effects of Debt Counseling on a Credit Report

Joining a debt counseling service does not necessarily have a negative effect on your credit report. However, in order to make your debt more manageable, your credit counselor may implement certain techniques which could affect your credit report negatively. It's important to know the consequences before signing up for a debt counseling service. Missed Payments Your debt counselor might advise you to miss payments in order to get a credit card company to accept a settlement, or less than what you actually owe. Credit card companies do not...

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Can a Creditor Put a Lien on Property in the State of Florida?

The process to get a lien is similar in all states. Typically, a creditor files a lawsuit against a debtor for repayment, and if the court validates the debt, then the creditor is awarded a judgment. After filing additional paperwork with the local sheriff, the creditor can enforce the judgment by placing a lien against the debtor's property. While the process is the same in Florida, certain property, including a home, may be exempt from most creditor liens. Florida Lien Process After obtaining a judgment in the state of Florida, a creditor...

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Does Bankruptcy Wipe Out Judgments?

Bankruptcy eliminates judgments more effectively than any form of debt management. Judgments are wiped out in just months through Chapter 7 bankruptcy and over three to five years in Chapter 13 bankruptcy. Filing for bankruptcy offers immediate protection from judgments while your debts are reorganized with the help of a federal bankruptcy court. Debt collectors must immediately stop all collection efforts, including garnishment of your bank account or wages. Pros and Cons The Federal Trade Commission indicates that bankruptcy is the most...

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