When Should I Not Use My Debit Card?

People who want the convenience of using a credit card but don't want to run the risk of getting into debt may turn to debit cards instead. Debit cards closely resemble credit cards, but they are typically tied to a bank checking account, meaning the necessary funds to cover a purchase must already be in the account. Despite their ease of use and debt-avoiding advantages, debit cards may not be the best choice in some situations. Shopping Online...

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Who Qualifies for Debt Management?

The term "debt management" refers to the counseling and advice that a person in debt may receive from a financial professional, such as a debt counselor or a financial adviser. Anyone is legally entitled to debt management. However, only certain people qualify for low-cost credit counseling, just as only some people can afford financial advisers. In addition, only some people may qualify for hardship programs from creditors that may reduce the size of their debt. Credit Counseling There are a number of firms that offer credit counseling....

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Will Creditors Attach Your Wages?

If you don't pay your creditor, it may seek an alternate debt recovery method known as "wage garnishment." Through wage garnishment, the creditor asks a court for permission to seize a portion of your wages from your employer before you receive your paycheck. Not all creditors can attach your wages and, of those that can, not all will put forth the effort required to do so. State Restrictions Your state of residence plays a role in determining whether an unpaid creditor can attach your wages. Some states, such as Pennsylvania, grant wage...

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How to Inform Credit Card Companies of the Death of a Spouse Who Was the Major Income Earner

Dealing with the emotional crisis of a spouse's death is difficult enough, especially if your spouse was the breadwinner for the family. Paying for the funeral, burial and other costs can be a financial hardship, even if your spouse made prior financial arrangements to offset the costs before death. Unfortunately, your spouse's debts must still be paid with any remaining money left over from the estate, which includes credit card debt. Informing...

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What Is Better to Pay Off: A Credit Card or a Loan?

If you have debt, whether it's a loan or a credit card balance, the most important thing to do is to make the minimum monthly payment. Missing a payment will hurt your credit score and may cause the interest you pay on your debt to rocket. Once you've made the minimum payments, concentrate on paying the high-interest debt. In most cases, credit cards have a higher interest than loans, but not always. Pay whichever debt is more expensive first. Types of Debt Credit cards are a type of unsecured revolving debt. Loans can be either secured...

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Under Oregon Law, What's the Least Amount of Money That Has to Be Paid to Any Creditor?

In Oregon, debtors are expected to pay creditors the amount agreed upon in a verbal or written contract. Consumers with credit card debt agree to pay the credit card company a minimum amount every month, which is outlined in the contract the debtor signed with the credit card company. Although debtors can negotiate with creditors to lower minimum payments, creditors are not required by law to accept less. Overview The Oregon Fair Debt Collection...

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Can Collection Agencies Check Your Bank Account?

Although collection agencies can't simply look at your bank account any time they want, some circumstances do allow them to access your account. If you have given them permission to withdraw payments in the past, they have a way to access your funds. And if they file a lawsuit against you and win a judgment, they can take funds directly from your bank account provided they have your account information. Ongoing Payments Debt collectors can...

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How to Activate My AccountNow Balances

AccountNow is a prepaid credit card account. A prepaid credit card works like a credit card with the exception that your credit limit is chosen by you; you prepay your credit limit. For example, if you want a $2,000 credit limit, you have to put $2,000 of your own funds onto the card before you can use it. Once you start using the card to make purchases, your credit limit decreases until you add more funds to the card. If you want to activate your...

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Tax Issues Regarding Credit Card Settlements

If you have missed payments on a credit card debt, or you anticipate a financial change that will prevent you from making your credit card payments on time, you may consider negotiating a settlement with your lender. A settlement is an agreement between you and the creditor in which you pay a portion of the debt, typically in a lump sum, in exchange for the creditor considering the debt paid in full. However, you should be aware of tax issues regarding credit card settlements. Taxes on Settlements When you settle a credit card debt with...

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What Is Providian on a Credit Report?

Providian Financial was a credit card company that existed until it was bought out by Washington Mutual in 2005. The credit card issuer was one of the largest in the country with more than 9.4 million customers. If you had a Providian Financial credit card, the account information might still appear on your credit report. Credit Report Your credit report contains a history of your past uses of credit. Whenever you apply for a credit card,...

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What to Expect From Debt Management

Debt management programs have grown in popularity as more and more Americans find themselves in insurmountable levels of debt. While these programs would like you to believe being on the program means your debt problems will magically disappear, the reality is quite different. Some adjustment is virtually required in order to satisfy the terms of your program. Debt Management Basics A debt management program is a tool used by credit counselors to create a personalized budget that can get you out of debt within five years. Debt management...

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How to Obtain a Secured Credit Card

Are you needing to repair or build your credit? If so, obtaining a secured credit may be the ticket for you. There are plenty of secured credit card offers to choose from including a bank secured credit card and visa secured credit cards. Instructions 1 A secured credit card requires you make a cash deposit that is basically collateral, and essentially, your credit limit. For example, if you deposit $300 in your account, your credit limit...

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How to Get Rid of Credit Card Debt Quickly

Credit cards are beneficial and they've helped numerous people build a credit history. Once you've established a good rating, you can obtain a mortgage loan or auto loan and receive the best financing. Unfortunately, some people can't control their spending, in which they use credit cards unnecessarily. This can lead to excessive debt, and it can take years to pay down the balance. However, there are ways to get rid of credit card debt quickly. As...

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Can Unemployment Be Garnished for a Car Payment?

Your unemployment check cannot be garnished for a car payment. The Bankrate website reports that unemployment income generally is exempt from garnishment except for child support, spousal support and income taxes. Also, garnishment isn't possible under any circumstances for one or two missed car payments. Garnishment regarding an auto loan can take place only after your car has been repossessed and sold at auction or through a private sale. Talk To Your Lender Knowing your unemployment check cannot be garnished for your car payment should...

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How to Take Money Out of a 401(k) to Pay Off Credit Cards

Because the sole purpose of a 401(k) plan is to encourage people to save for retirement, there are substantial penalties for taking money out before you reach the withdrawal age, which is 59 1/2. Money you take out early is subject to income taxes, plus a 10 percent penalty -- and that's if your plan even allows early withdrawals, which many do not. There's an alternative, however: borrowing money from your 401(k). Though it has its own costs, a loan isn't subject to taxes or penalties, so it is the best way to take money out of a 401(k) to pay...

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How to Remove Debt Legally

Legally removing debt from your credit report -- especially delinquent debt -- can improve your credit score and make it easier for you to qualify for automobile loans, mortgages and other forms of credit. However, there are few options for legally removing the debt information. The Federal Trade Commission reports that information on your credit report can only be removed if it is wrong or outdated. It is impossible to simply erase scores of negative credit items from your report, states the FTC. Instructions 1 Get a copy of your credit...

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Can a Wage Garnishment Be Done if You Work Part-Time in the State of Georgia?

Like most states, Georgia permits creditors that follow proper procedures to execute wage garnishments to collect unpaid debts. A wage garnishment is the practice of taking a portion of your post-tax earnings and applying the funds toward your debt balance without your consent. Whether a creditor can garnish part-time income in Georgia depends on several factors. Presence of Judgment Creditors cannot garnish wages in Georgia, except those involving unpaid child support, taxes and student loans, without obtaining a legal judgment against...

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Tips and Debt Advice

Whether you're dealing simply with the aftermath of holiday spending, or years of poor debt management, you can get rid of your debt and increase your savings. Debt can affect your interest rate on loans, and even hinder your ability to qualify for financing. Fortunately, there are several methods of tackling debt. Debt and Credit Scores Major debt can reduce your credit rating. Spending a very large percentage of your income on debt can...

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Information on Debt Solutions

Debt is something that many American consumers deal with on a regular basis. By the end of 2009, Americans had accumulated $2.449 trillion in credit card debt, according to the Federal Reserve Bank. For people who find themselves overwhelmed by debt, there are several debt solutions available to you in the form of financial professionals and financial organizations. Debt Consolidation Consolidation is the act of taking several high interest...

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What If I Can't Pay a Court Judgment Against Me?

Ending up on the losing side of a lawsuit or collection effort is no fun. It is even worse when you do not have the resources to pay the amount for which you are responsible. There are as many ways to handle this situation as there are types of judgments. Nature of a Judgment Once a lawsuit is resolved, a judgment is issued. This is the final part of a court case. In civil cases, the judgment is a penalty or fee of some type. Most are money...

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How to Get a Free Credit Report From TransUnion

The Fair Credit Reporting Act allows eligible consumers to receive a free copy of their credit report. A free credit report can be requested from TransUnion if a consumer has been denied credit in the last six months due to a negative report from TransUnion. Consumers who are unemployed or receiving public assistance may also request a free report once every twelve months from TransUnion. Residents of Colorado, Georgia, Maine, Maryland, Massachusetts,...

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The Downside to Debt Consolidation

Consumers look into debt consolidation options as a means to combine their payments into one bill and receive a lower interest rate on the debt, which helps them pay off balances quicker. While debt consolidation presents certain advantages, there also are some downsides to debt consolidation. It helps to understand the risks before consolidating your balances. Higher Interest Rate Applying for a debt consolidation loan doesn't automatically equal savings. Yes, a consolidated loan can provide a much cheaper interest rate than most credit...

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Can a Debt Collector Garnish a Joint Account?

A creditor has a right to sue a debtor for nonpayment of credit obligations and receive garnishment permission from the court. A creditor can garnish a debtor's wages or his bank account. A creditor can garnish a joint bank account. However, he cannot seize any money that belongs to the joint account holder if he is not a party in the lawsuit. Garnishment Process A creditor must file a lawsuit against a debtor and request a writ of garnishment once the court awards it a judgment. A garnishment order allows it to take money from a debtor's...

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What to Do If You Need Help Paying Medical Bills

One of the most common expenses that leads to financial problems is medical bills. Many people face large medical bills that they cannot afford to pay. If you find yourself with a large hospital or other medical bill, the situation may seem bleak, but you can pursue a few options. Financial Aid When you receive medical service at a hospital, you may be able to apply for financial aid. Many hospitals have programs that help pay for the care of people who have financial problems. These programs could completely pay for your care or reduce...

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Can a Collection Agency Contact an Employer in Florida?

When a consumer gets behind on paying his bills, he will likely begin receiving calls from his creditors asking when they can expect to be paid. It is a tense situation made even more stressful when a consumer worries that his creditors may contact his employer. Contacting Your Employer According to Florida Statutes sections 559.55 to 559.785, which deal with debt collection agencies and creditors, a debt collector cannot contact your employer unless you do one of two things. You must either verify to him that the debt is yours to pay or...

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What Is Considered Validation of a Debt?

If you're a consumer who believes there is an inconsistency on your credit report, or if you are contacted by a third-party collection agency, you have the right to have your debt validated. Validation of a debt can remove incorrect information from your credit report, resulting in a higher credit score. How Collections Work If you don't pay your loans or credit cards on time, your creditor will charge off your debt after a certain period of time -- usually a few months. Once the debt has been charged off, the creditor will most likely...

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Is a Revolving Credit Plan Unsecured or Secured?

A revolving credit plan is a credit card or line of credit on which an individual can make purchases up to a pre-set spending limit. When individuals who get such a plan pay off the purchases, they can again charge an amount equal to the spending limit on the account. Facts Many varieties of revolving credit plans exist for consumers to choose from. Revolving credit may be either secured or unsecured depending on the consumer's eligibility...

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Can You Settle Your Credit Card Debt That's Already on a Payment Plan?

You can settle a credit card debt that is on a payment plan -- but only if the credit card company agrees. Settlements are voluntary agreements between two parties, and the card company cannot be forced to settle. The company offered you a payment plan to help you recover from a financial setback. Switching to a settlement will require more discussions. Payment Arrangements Payment plans generally allow your interest rate to be lowered and your monthly payment reduced for up to a year. It's a great deal for people who have fallen behind...

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How to Find a Reputable Debt Counselor

If you're struggling with debt and can't make ends meet on your current budget, credit counseling may be a helpful route to take, according to the Federal Trade Commission. A reputable credit counselor can help you manage your budget, present solutions to your debt woes, and help you devise a strategy to prevent future financial difficulties. Many debt counselors advertise themselves as "nonprofit" agencies, but the FTC warns that this might not always be true: you might incur high or hidden fees or be bullied into making "contributions" that cause...

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How to Write a Permission Letter to Creditors

If you engage a representative to contact your creditors, you must give permission in writing to do so. Laws exist to prevent creditors from releasing information to anyone but you. For a lender or negotiator to contact a creditor on your behalf, it needs a letter specifying exactly whom you allow to receive the information. Instructions 1 Insert the date at the top of the letter. Skip a space or two and write your name and current address. Skip another space or two and add the creditor's name and address. If you are writing to a specific...

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Why Are Billing Dates & Statement Dates Different on Credit Cards?

Your credit card statement must include information about charges, interest and fees to comply with full disclosure laws. It can be confusing to follow all the information, especially when there are several days listed. Keep an eye on your due date, as that is when you must make a payment to avoid negative financial consequences. Billing Cycle Every credit card company uses a billing cycle -- a period of about 20 to 25 days -- to determine how much interest to charge you. The billing cycle closes on the same date each month, although you...

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How to Build Low Credit

Low credit can affect various areas of your personal finances from buying a car to getting auto insurance. Some people live with low credit and deal with the consequences. But if you're tired of rejections or higher rates due to bad credit, consider effective methods to improve your credit. Instructions 1 Borrow only what you can afford to pay. Taking out a number of loans or excessive credit card use can negatively affect your ability to keep up with payments, and missing payments triggers negative information on your credit score. Know...

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Should You Pay a Charged Off AMEX Account?

AMEX, also known as American Express, is a bank holding company that issues credit and charge cards to people around the world. American Express cards are carried by consumers, small business owners and corporate employees. The person whose name appears on the account usually is responsible for payment, even if the card is issued through a company. Charge-offs on American Express accounts occur after several months of missed payments. However, the charge-off is only for internal accounting purposes, as the account is closed and placed for collection....

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Can You Consolidate Private Student Loans?

Loan consolidation is the process of replacing one or more loans with a different loan. If you have at least one student loan from a private lender, such as a bank or credit union, you can consolidate this loan with any other private student loan. However, you cannot consolidate private and federal loans together, nor can you turn a private student loan into a federal student loan. Benefits of Consolidation Borrowers generally seek at least one of three major benefits of consolidating student loans. The first goal is to reduce the number...

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The Effect of Settling Credit Card Debt on a Credit Score

Debt settlement is often the last resort before bankruptcy. New home buyers are often asked to resolve open credit lines or delinquent reports on their credit files before a lender will approve them for a loan. To get these issues resolved quickly, some homeowners opt to settle with the credit card company by paying a fraction of the percentage owed. However, the effects of settling credit card debt can linger for a long time. Consequences of...

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Can Cosigning Help Your Credit?

Individuals with good credit scores are likely interested in maintaining their prime rating. But if you manage credit well, someone may ask you to cosign an auto loan, rental lease or other financial contract. Doing so can help this person qualify for financing. But on the other hand, cosigning can also affect your credit rating. Definition When a creditor or lender agrees to approve an application if there's a cosigner, he requires a second signature or name on the application. Some people can qualify for loans without anyone's help. They...

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What Are Florida Child Support Laws on Property Liens?

The Florida Department of Revenue is authorized to place liens on the property of parents who fail to comply with child support court orders. The purpose of the penalties is to ensure that minors in the state receive the financial support that they need to thrive. Parents who are unable to make the payments due to unforeseen life changes (e.g., layoff) should contact the department to inquire about setting up an alternate payment arrangement. ...

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30-Day Notice Ending Lease Agreement

A 30-day notice is a real estate term used when a tenant wishes to vacate a property or when a landlord wants a tenant to leave. It is a courteous document used to give ample time to the party receiving the document to make other arrangements. Uses A 30-day notice to end a lease agreement is commonly used in month-to-month leases. It is also used in regular yearly leases. Often a person who is relocating due to his job moving serves this notice to his landlord. A landlord chooses to deliver this notice to a tenant for many reasons including...

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What Errors Can I Dispute on My Credit Report?

The information included in your credit report contributes to your credit score. Factors such as how much you owe to each credit company and whether you have accounts in negative standing, lead to a positive or negative credit rating. Creditors are obligated by law to report factual information on your report. If you find errors, the credit bureaus are required to remove the information. The Fair Credit Reporting Act (FCRA) The federal Fair Credit Reporting Act (FCRA) protects consumers against credit report inaccuracies, discrimination...

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