Should You Try to Settle Your Debt?

Debt settlement is an effective strategy for discharging delinquent debts that requires no special education, little preparation and a relatively small investment. The payoff can be a dramatically improved credit rating and a clear mind. Compared to bankruptcy, debt settlement is time-efficient, doesn't require that you open up your financial behavior to scrutiny by a judge and avoids the stigma and credit rating damage caused by filing for bankruptcy. Debts and the Law No lender can force you to pay a debt. There are no prisons for debtors...

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Strategies for Debt Elimination

People who spend more than they earn often find themselves in debt, sometimes heavily. On average, a United States consumer has 13 credit accounts recorded at the credit bureau; nine of these are credit card accounts, the remaining being installment obligations. As of the end of 2008, the average outstanding obligation of every household from credit cards alone was $10,679. There are strategies you can employ to try to reduce your debts or otherwise eliminate them altogether. Debt Elimination With the recession, it is no wonder many people...

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How to Snowball Credit Debt Payoff

A debt snowball refers to a method of paying down your debt by starting with the smallest debts first. This term is often used in conjunction with following personal finance guru Dave Ramsey's debt reduction plans. Debt snowballing works by providing quick progress to debt reduction. The disadvantage to debt snowballing is that you are not attacking your debt in order of the highest to lowest interest rate, so it may cost you more in finance charges than other debt reduction methods. Instructions 1 Make a list of all of your credit card...

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How to Garnish Wages in North Carolina

To garnish a debtor's wages in North Carolina, you have to file suit in the small claims court in the county where he lives. However, according to state law, wages can be garnished only for debts involving taxes, student loans, alimony or child support. You cannot garnish someone for credit-card debt unless a judgment has been ordered by a court in another state. Instructions 1 Familiarize yourself with North Carolina wage garnishment laws....

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What If I Don't Pay My Payday Loan?

Payday loans are loans issued by lenders for a short period of time --- typically a few days to a month --- at very high rates of interest. If a borrower of a payday loan defaults, he's typically charged additional fees and may face an even higher rate of interest on the loan. In addition, the lender is legally entitled to seek payment of the loan through a number of methods. Penalties The contract that a borrower signs before taking out a payday loan spells out the consequences of defaulting on a payday loan. While each lender's contract...

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What Are the Characteristics of Charge Off Accounts?

The term "charge off" became prominent in the news after the economy started falling in the late 2000s. Banks or lenders initiate charge off accounts when they realize a debt will likely not be paid. Accounting A lender's accounts receivable department will determine if a loan or charge has become a bad debt. After this determination, they will take one of two steps. They will either write off the debt on their books as an expense on their...

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How to Use Credit Dispute Letters

When you find an error on your credit report, you probably want to have this mistake corrected. This is what a credit dispute letter is for. Once you contact the credit companies who caused the mistake, they send you a letter stating that they asked the credit agencies to remove the errors from your report. You will then need to write your own credit dispute letter to send along with their confirmation to the credit agencies. Never completely rely on the credit companies to take care of this for you. Instructions 1 Send certified letters....

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Statute of Limitations Law Regarding Debt in Kentucky

Kentucky law sets forth several statutes of limitations on a creditor's right to enforce a debt. These statutes constitute a deadline by which the creditor must file a lawsuit against the debtor. If the creditor misses the deadline, the court can dismiss the lawsuit at the debtor's request. The length of time set by the statute of limitations depends on the basis for the debt. Written Contracts Kentucky Revised Statute 413.090(2) generally provides a 15-year statute of limitations to enforce a written contract. However, Kentucky Revised...

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Are Medical Bills Excluded for Credit Evaluations?

Lenders reviewing your credit profile consider both your debt level and your positive and negative accounts. The more negative accounts that appear within your credit history, the higher risk the lender incurs by approving your application. Medical debts appear on your credit report as collection accounts and can derail your ability to qualify for the credit card or loan you want. Credit Reviews Just because you owe outstanding medical debt does not mean that the debt shows up on your credit report. Provided you arrange a payment plan with...

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How to Answer a Debt Complaint

Once a debt goes into collection, it is already several weeks, maybe months delinquent. Creditors usually waste no time in trying to collect the debt. It is in your best interest to negotiate the debt before it reaches collection or even during the collections process. Failing to do so may result in a lawsuit. When this stage begins, you will receive a summons, which will contain the debt complaint. This will be your only chance to answer to the...

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Illinois Programs to Help With Mortgages

Illinois has programs in place to help people in the state purchase their home and keep their homes when going through a financial crisis. The Illinois Housing Development Authority (IHDA) oversees all of the programs that the state offers and determines the guidelines and qualifications of qualifying for assistance. 2009 Homeowner Protection Act This law was signed into effect in 2009 to provide homeowners who are not currently in foreclosure more time to work out an arrangement with their lenders and remain in their home. Homeowners who...

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How to Transfer Credit That Is More Than 10 Years Old

Old credit, depending on how well it has been paid, can be either very helpful or highly detrimental. If you have old debt that you need to transfer to a different account, the process is relatively simple. However, before you jump into a debt refinance, there are several factors you should weigh. In addition, it's important to keep in mind that transferring debt (also known as refinancing) will probably incur fees--sometimes, overwhelming fees....

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How Can I Pay Off My Home Equity Line of Credit Faster?

It can take years to pay off your home equity line of credit if you choose to only make the minimum payments. You can pay off your home equity line of credit much faster if you set up a plan to pay more than the minimum and stick to it. A home equity loan is a line of credit attached to your home. If you are unable to make payments, the bank can take your home in order to pay your bills. It is important to make paying off your home equity loan a...

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How Much Do I Need to Put Down to Buy a House?

If you want to buy a house, you're going to have to put a significant amount of cash down in most cases. The total amount you have available to give as a down payment could affect your interest rate or even your general eligibility for the loan. Know the minimums in advance of shopping for a home loan. Why Do You Need a Down Payment? The lender asks for a down payment because the mortgage company's investors want you to invest in the transaction as well. When you put money down, you've immediately established equity in the house (the difference...

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What Is the Lowest Amount You Can Ask for When Negotiating a Debt?

Overwhelming debt can sometimes be knocked down to size through negotiations with your creditors. Credit card companies and other lenders sometimes forgive part of the owed amount rather than take the risk of having you declare bankruptcy or just stop paying the bill. They usually want the agreed-upon total in a lump-sum payment, the University of Illinois Extension advises. No laws govern settlement amounts, so the exact discount is between you and your creditors. Settlement Offers Make a low settlement offer because your creditor may...

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How to Rebuild Credit With Unsecured Credit Cards

Bad credit is reversible, wherein you're able to get a good interest rate on home loan, auto loans and other types of financing. Different factors lead to poor credit. But you can rebuild your credit history and maintain a high score. In fact, it's possible to re-establish a credit history using an unsecured credit card. Instructions 1 Limit the number of credit cards you possess by cutting them down to the most essential ones. Rebuilding credit involves obtaining new lines of credit and periodically using credit. Rather than acquire several...

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How to Deal With Collection Agencies and False Claims

When an individual defaults on a debt and the debt is purchased by a collection agency, the agency often has to go to great lengths to track the debtor down in order to request payment. Many unlucky individuals have found themselves harassed by debt collectors for a debt they do not owe simply because they happen to have the same name as the real debtor, or the collection agency has a mistake in its records. If this happens to you, you should be aware of the fact that legal safeguards are in place to protect you from a collection agency's false...

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How to Get Out of Debt When You Don't Have a Job

Getting out of debt while unemployed may be difficult. Some people who are unemployed find it hard to cover necessary living expenses such as food and shelter. Others who are able to pay for necessities find that there is simply not enough money left to pay down debt, or to even make monthly payments. Telling your creditors about your unemployment could give you more time to find a solution for getting rid of the debt. Some creditors have hardship plans allowing payments to be reduced or even suspended while you are out of work. Instructions...

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How Long Does It Take for a Levy to Be Placed on an Account?

A bank levy is a real and serious threat if you owe money to a creditor or the IRS. It takes time to enforce a bank levy because the creditor must follow proper protocol such as receiving a court-issued default judgment in a lawsuit. You have an opportunity to defend yourself, but if you lose your appeal and the creditor wins the lawsuit, it can employ a bank levy right away. Process The first step in the process for obtaining a levy is filing a lawsuit in the local civil court. The time that it takes to do this varies depending on the...

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Debt to Income Ratio for Personal Financial Health

With easy access to credit cards and perhaps having income from more than one source, it can be easy to use the credit card and checkbook without much thought. However, if you do, even if you make all of your minimum credit card payments on time, you could be hurting your financial health by raising your debt-to-income ratio. Your debt-to-income ratio is the amount of reoccurring debt you have divided by your income after taxes. Calculating it can...

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How to Get Help Paying Credit Card Debt

If you're drowning in credit card debt, you're probably looking for a little relief. Learn all of the ways you can help yourself get out of credit card debt. If all else fails, then learn the last resort effort you can turn to for help in getting your credit card debt under control. Instructions How to Get Help Paying Credit Card Debt 1 Call each of your credit card companies, if you're having trouble making payments. Talk to them about setting...

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How to Beat a Credit Card Law Suit

Beating a credit card lawsuit is all but impossible unless fraud or identity theft can be established. There are some tactics that can slow the process, but the law is on the creditor's side or his agent, a law firm. Some law firms that collect on these sorts of lawsuits seek "lay down" business--that is, debtors who do not fight the suit. By fighting the suit, there is a chance that you can beat it. Instructions 1 Request a validation of...

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How to Clear Old Debt

Clearing old debt could end harassing phone calls from debt collectors and improve your credit. A debt several years old may be preventing you from being approved for a mortgage loan. Or banks and credit unions may be offering you only high interest rates on a loan for a new car. Old debts never legally expire and can be listed on your credit report for seven years, according to the Federal Trade Commission. Instructions 1 Get a copy of your credit report. Visit the website Annual Credit Report to view and print a copy for free (see Resources)....

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The Pros & Cons of Debt Management Programs

Consumers who feel as though their personal debt is getting out of control might decide to look into a debt-management program as a solution. According to Consumer Reports, while the lure of debt-management programs might be tempting, the reality could wind up being something different. Research debt-management programs to understand the pros and cons of becoming involved in one. Negotiation Help According to the Federal Trade Commission,...

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Can Debt Settlements Help Credit Card Judgments?

Debt settlement resolves credit card debt, usually for less than the full balance. Settlement is possible once a credit card becomes seriously delinquent -- usually after it is 90 days or more past due. Settlement is also possible on credit card accounts whose delinquency led to a debt lawsuit and court judgment. People settling credit card debt at that point are most likely trying to avoid bank or wage garnishment. The settlement helps with that,...

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Tips That Protect From Online Hackers & Credit Card Identity Theft

Shopping online is convenient and saves money on gas and maintenance on the car, and you can go to hundreds of different stores all from the comfort of your home. According to the Privacy Rights Clearinghouse, consumers should be as vigilant in protecting their personal information online as they are when shopping in a retail store. There are tips that protect from online hackers and credit card identity theft that all consumers should follow. ...

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How to Remove Fraudulent Charge Card Liens in Georgia

A lien is an ownership interest filed against a property for nonpayment of debt. If a lien filed against a piece of property, you cannot sell or transfer the property, unless you satisfy the lien. Liens come in many forms and sources, but are not valid unless approved by a local judge. If a credit card company obtains a judgment against you, it is nearly impossible to sell or refinance your property, unless you pay the lien. However, if the debt...

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Credit Card Debt FAQ

Credit card debt can cause financial problems for years -- even a lifetime -- making it difficult to save for retirement or pay cash for simple emergencies. In extreme cases, credit card debt can lead to bankruptcy in the event of a job loss or illness. How does credit card debt accumulate? Credit cards allow you to pay for goods and services without using cash. Most cards allow you to pay the balance in full each month, or make a minimum...

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How to Record the Present Value of a Debt

Under the Fair Credit Reporting Act (FCRA), creditors must accurately report the present value of any debt according to the original debt agreement. The creditor is obligated to correctly report the value of the debt in all communications with the debtor related to the current value. In addition, any reports to the major credit bureaus must be accurate. If you can demonstrate that a creditor has violated the FCRA by misreporting the value of a debt, you may be entitled to damages. Instructions 1 Review the original agreement that created...

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An Early Withdrawal From an IRA to Pay Off Credit Card Debt

Taking an early distribution from an IRA to pay off a credit card is more costly than most people initially realize. If credit card payments are made regularly and the balance is continually declining, then an early withdrawal really should not be taken. However, the concentrated effort should be toward paying off that balance through reduced spending. This can include not contributing toward the IRA for a period of time. Early Withdrawal Penalties...

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How to Negotiate a Payment Plan With a Debt Collector

Debt collectors use many unlawful tactics to secure a payment from debtors. Some include threats of lawsuits as well as verbal insults. No matter how many threats and insults the debt collector hurls at you, understand that you have the power to negotiate. Don't be persuaded by what the debt collector tells you will work for his company. Instead, persuade the debt collector by telling him what works for you. Instructions 1 Avoid making a payment arrangement until you are certain that the debt belongs to you. If you agree to make a payment...

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How to Write Off on Regions Bank Loans

A loan written off by Regions Bank could cause your credit score to drop significantly. You also may face collection efforts, as the bank assigns your loan account to an internal or external collections team. Although the credit consequences can be severe, some people intentionally allow accounts to be written off in hopes of paying them off for less than the full amount owed -- a process called debt settlement. It's important to note that it's up to Regions Bank to write off the account -- not you. You will remain fully liable for the account...

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How to Finance Medical and Dental Procedures Interest Free

If you are one of the millions of Americans without medical and/or dental insurance, or if the insurance you do have will not completely cover a particular procedure, you may want to consider trying to obtain interest-free financing to pay for your procedure. Instructions 1 Speak to your doctor/dentist about whether his practice offers this option. Orthodontists, in particular, should allow you to break down the total charges into lower monthly...

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Statute of Limitations on Personal Debt in Oregon

When an individual incurs a debt to a creditor, the creditor has the right to seek repayment of this debt through various means. However, according to U.S. law, the creditor can only legally seek repayment of this debt for a certain period of time. This statute of limitations on debt collection is set at the state level. In Oregon, most consumer debts can only be pursued by creditors for up to six years. Statute of Limitations In Oregon, the time period marked by the statute of limitations begins when a debt first goes delinquent. After...

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How to Collect and Enforce Child Support in California With a Father Not Paying the Full Amount

Collecting and enforcing your child support order may be difficult when the father of your child is not paying the full amount owed to you. California law allows for methods of support enforcement against your child's father to get the money owed, like wage garnishment, bank account seizure, license suspension and interception of tax return refunds. The father of your child is still considered in arrears if back support is owed, even if he is making...

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What Happens After You Settle a Debt?

Although it takes a lot of work to reach a debt settlement agreement with your creditors, the work isn't over even after you've made the payment. You must keep an eye on your credit report and work on rebuilding your credit to ensure a solid foundation for your financial future. Payment Once you have made an agreement with your creditors to settle for a one-time lump sum payment, you will make the payment and the creditor will report your account as "settled." Typically, settlement payments range between 20 and 75 percent of the original...

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Credit Card Debt Vs. Consolidation Debt

When a person takes on too much credit card debt, particularly from multiple credit cards, he may attempt consolidate the debt. When a debt is consolidated, a lender purchases a borrower's outstanding debts and issues his new loan. This loan will be equivalent in size or larger than the debt that the lender purchased. While there are advantages to consolidating debts, a debtor may also find some drawbacks over owing credit card debt. Credit Card Debt When a person charges purchases to a credit card, he is essentially drawing money against...

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How to Get The Best Credit Card Debt Settlement

Getting a good settlement on your credit card debt can mean the difference of thousands of dollars. If you can receive even 5% less on your settlement you'll save a ton of money. This how-to will provide some steps to take to get the best credit card debt settlement. A credit card debt settlement involves you contacting your creditors or collection agency after your credit card has defaulted or is about to. You will do some negotiation with them to see what price they are willing to offer. After a settlement price has been agreed on, you will...

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Requirements for Debt Consolidation Loans

If you want to get a debt consolidation loan there are certain requirements you must meet. Once you apply for a loan, the creditor will take a look at all of the information on your application and review your entire credit history. Some lending institutions will use an automated scoring system, which means you have to have a certain credit score to qualify. Others will have a credit analyst review your information. Income If you want to qualify for a debt consolidation loan, the creditor wants to make sure that you are able to pay. She...

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How Much in a Bank Account Is Safe Against Garnishment Freezes?

Garnishment is a court order signed by a judge. It allows free access to a bank account to satisfy an unpaid debt. The debt collector can withdraw money in installments or in a lump sum. However, the debt collector can make withdrawals only up to the amount due on the debt, as listed in court records. Determining how much money in the bank account is safe, or protected, depends on the amount of the debt. Lawsuits The garnishment process starts with the filing of a lawsuit. A judge hears the case and issues a legal order called a monetary...

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Debts in Marriage

More than 40 percent of married couples say they fight over money. Since American households averaged more than $5,000 in credit-card debt as of 2009, it's a common problem. How it affects your marriage depends on where you live and why you incurred the debt. Consult with an attorney in your state to find out what the law is there and where you stand if you think you might have a problem. Community Property State Laws Wisconsin, Washington,...

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