What Happens When a Creditor Freezes My Accounts?

Paying your credit obligations on time is important for maintaining a good credit rating. If you stop paying your bills, a creditor can refer you to collections or may file a lawsuit against you to pursue other collection attempts, such as wage or bank account garnishment. He must follow certain steps before he can take money from a debtor's account. Obtaining a Judgment Before a creditor can freeze a debtor's bank account and take his money, he must first file a lawsuit and receive a judgment against you. The judgment confirms that a debtor...

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Is Credit Consolidation Good?

To have success in using a debt consolidation loan, you must first evaluate whether or not you are completely dedicated to paying off your debt. Unless you make it a priority to dig yourself out of debt and to stop spending on your credit cards, debt consolidation may be a dangerous route. However, if you get a good interest rate on the loan and you make every effort to avoid using your credit cards, the loan may be a good answer to paying off cards...

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Pros and Cons of Refinancing a Mortgage

The primary reason to refinance a mortgage is to reduce your monthly payment. Another is to move from an adjustable-rate mortgage (ARM) into a fixed-rate mortgage. When considering mortgage refinancing, it is important to weigh the possible consequences. Potential A new mortgage with a significantly lower interest rate is almost always a positive. The lower rate will save you thousands of dollars in interest over the life of a mortgage. Costs The cost of refinancing includes broker fees, mortgage points, title insurance, appraisal...

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Can I Sell My House After Filing Bankruptcy?

It is possible to sell a house after filing for bankruptcy -- but don't expect to keep all of the profits for your personal use. The federal bankruptcy court will closely control all of your debts and assets once you file for bankruptcy, including a sale of your house. The bankruptcy court may rule that creditors should receive at least some of the profits from a sale of your house after bankruptcy. Considerations This issue is complex and requires careful discussion with a bankruptcy attorney. Bankrate.com suggests that it is better to...

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How to Borrow Money to Build Credit

In what seems like a catch-22, you need to have credit history to get many types of credit, but the only way to build credit history is to use credit. However, a few types of credit are available to people with little or no credit history. If you borrow money through one of these methods and repay it consistently, you will slowly build your credit history and enhance your chances to borrow more money in the future. Instructions 1 Go to your local bank or credit union with $300 or more in cash. If you already bank there, have at least $300...

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Credit Card Company Tricks

A credit card is an easy, convenient way to make payments. They are also a great way for companies to make money off of you in any number of ways. No one has to agree to take a credit card, and credit card companies often use tricks and tactics that can take advantage of your willingness to skip over the fine details so you can use the card as soon as possible. Rate Increases While the CARD Act of 2009 imposed significant restrictions on the ability of credit card companies to increase interest rates, they can still do so. Card companies...

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Explanation of a Debt Settlement

A proliferation of ads promising to erase debt has lured overburdened consumers into striking deals that may leave them in worse financial shape. The culprits are debt-settlement companies that negotiate deals with the creditors in the hope that the creditors will settle for lump-sum payments of less than they're owed. The debt-settlement industry is largely unregulated, according to the Federal Trade Commission, so make sure you understand the process and its risks before you enter into an agreement with a debt-settlement company. You also can...

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How to Deal With Late Credit Card Payments

Even the most organized individuals may accidentally make late credit card payments. Vacations, moving and other events cause distractions. However, once you miss credit card payments, it's important to take action right away. Payment history makes up the largest chunk of a credit score, according to MSN Money. Instructions 1 Pay right away. Contact the creditor and make the payment over the phone if possible. If your lender can't do this, send a payment through mail or online banking. 2 Ask the lender to remove the late fee. Consumers...

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Credit Policies & Procedures

Any company that sells products and services on credit will have some type of credit policies and procedures in place. If the policies are too lenient or too strict, they will have a negative impact on their ability to operate profitably and stay competitive within the marketplace. Ability to Pay A company extending credit to a consumer will first look at the prospective client's ability to pay. The company will look at the amount of total income in relation to debts owed. Willingness to Pay Organizations also take a look at a customer's...

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Derogatory Credit Information

Lenders, insurance companies and even employers use credit reports to determine risk factors and consumer trustworthiness. Derogatory credit information may include delinquent payments, bankruptcies and high balances. How this information affects your credit report depends on your initial credit score and the severity of the event. Types Late payments, high balances, debt settlement, collection accounts, tax liens, credit application inquiries,...

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What Personal Information Does a Credit Report Contain?

Credit reports contain a variety of information that credit grantors use to determine credit worthiness. Because of the personal information included in a credit report, care should be taken to ensure identity security. Information In addition to information given about your credit history and debt obligations, credit reports may also include your name, aliases or maiden name, date of birth, occupation, current and previous addresses and...

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Help With Money Problems

No matter how your money problems came about, there is no quick fix short of a large windfall. Even that is no substitute for good money management, which is a life skill that will help you through good times and bad. Ignore the claims of companies that say they can "erase your bad credit." You need to take charge of your financial life, which means making significant changes in the way you spend and save money. Review Your Credit Report ...

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Independent Debt Advice

Getting debt under control takes hard work and commitment. Independent debt advice involves strategic planning, addressing the real issue behind problem spending and making a pledge to adjust spending habits, all of which can help you find relief without resorting to quick-fix debt solutions, which could end up hurting your credit score. Talking to Creditors In lieu of using a debt settlement or debt consolidation company, consider contacting...

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Difference Between a Paid in Full Account and a Charge-Off

When you receive your credit report, you may find certain unfamiliar terms. The terms "paid in full" and "charged-off" may appear in relation to a debt account, such as a credit card bill or a loan. They signify the status of your debt account and may affect your ability to obtain credit. Timing Your lender informs the credit reporting agencies when you have paid off your debt so the account appears as having been paid in full on your report....

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What Is the First Thing to Do to Establish Credit?

Establishing a credit history can be tough because you need credit to establish a history but cannot get credit without first having a credit history. Fortunately, you may employ several steps to make your finances attractive to a potential creditor. The first thing to do among those steps is quite simple and can be accomplished by visiting your local bank or credit union. Open a Checking Account Opening a checking account is a simple first step to establishing your credit history. The amount of money you keep in your account doesn't have...

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How Do Deleted Items Affect My Credit Score?

Repairing your credit history can be a lengthy process. Your ability to buy a house or get a low interest rate depends on your credit score. Your credit score is impacted by payment history, debt-to-income ratio and other factors. Deleting any of these factors can change your credit score. Here are a few of the deletions that can improve your credit--and a few that can hurt your score. Facts The Fair Credit Report Act (FCRA) was created...

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Structured Debt Explained

Structured debt is simply any type of dept such as a credit card or car loan, by which the lender customizes terms for the borrower. Typically, it is structured to include incentives for the borrower to do business with the lender. Borrowers, however, must be careful that this "special" structuring doesn't appear to be more favorable to the lender by including increased fees, penalties and payments. Fine Print Structured debt is also called...

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Divorce & Bad Credit

The Centers for Disease Control and Prevention reported the marriage rate as 6.8 out of 1,000 of the population in 2009, and the divorce rate in the same year as 2.4 for every 1,000 people. Any credit held jointly reflects on both partners, and poor credit habits and the failure to make payments means difficulties for both people in obtaining future credit. Creditworthiness Poor credit affects the consumer interest rates paid on loans. It...

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How to Qualify for an Unsecured Loan With a Judgment

It is possible to qualify for an unsecured loan with a judgment on your credit report. It depends on the lender's credit guidelines and the type of loan you are seeking. For example, certain secured loans, such as payday loans, do not require a credit check. The Federal Trade Commission strongly advises against payday loans, but they are popular with people who cannot qualify for standard financing. Legal Action A judgment is a legal decision reached by a judge. She issues a judgment after hearing a lawsuit and agreeing that you failed...

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Help for My Credit

Credit, in the form of revolving credit card accounts and fixed term loans, gives you buying power but also builds up debt. Help is available, whether you are just starting to have bill paying problems or are already delinquent on most or all of your accounts. Assistance comes in simple forms, like financial management education and more involved measures like debt management plans and bankruptcy filings. Credit Counseling Credit counseling helps your credit by providing customized assistance, such as teaching you money management or budgeting...

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Help With Debt Management & Reduction

Anytime you receive goods or services today in exchange for a future payment promise, you incur debt. Although some amount of debt is largely unavoidable, too much debt can significantly affect your present-day financial life as well as limit future opportunities. Fortunately, it is never too late to begin practicing the art of debt management and reduction. While success ultimately depends on your level of commitment, help is available from a variety...

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The Child Support Laws in South Carolina If You Break a Court Order

When parents divorce, the court often requires the non-custodial parent to pay child support to the custodial parent to aid with expenses related to raising the children. Failure to pay puts a parent in contempt of court and puts him at risk of civil and criminal penalties. In South Carolina, parents can work with the Child Support Enforcement office to locate deadbeat parents and get them to pay. Civil Consequences Parents who default on their child support obligation may be sued for the amount of money they owe to their children. Once...

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How to Negotiate Debt With Credit Card Companies

Sitting with a pile of unpayable bills rattles the nerves of us all. Don't give up. Look at the available options, take a deep breath and plunge in. Take back your life. Take control of your credit card bills and other debt. Sometimes it is difficult to admit you are in over your head. It is important to step in and take control of the situation before it is beyond repair. Negotiating debt with credit card companies is a viable option. Instructions...

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What Is a Debt Solver Program?

Debt solver programs exist to help people who -- for whatever reason -- find themselves unable to make payments on time. There are many reasons for someone to be unable to pay her debts including job loss, medical expenses and irresponsibility with credit. Debt programs make it possible to get back on track financially. Use a program approved by the United States Department of Justice and check the company's rating with the Better Business Bureau...

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Credit History & Mortgage Problems

If you're unable to make your mortgage payment on time every month it will mar your credit score because payment history is the biggest factor in determining your credit score, according to the Fair Isaac Corp. The National Association of Realtors reports that late mortgage payments will decrease your score more than late credit card or car payments. Basics Before you bought your house, your lender determined how much mortgage you could afford and your interest rate, in part, by using your credit score. Payment history, which shows your...

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Can a Judgment Take Away Personal Property?

Most often, a creditor with a judgment against you won't take your personal property. While state laws vary, a significant percentage of your property is probably exempt. This means that your creditor has to go to the time and expense of taking certain legal steps, even after he has gotten a judgment against you, and the money he recovers might turn out to be negligible. A creditor does have the right to try, however, and some of your property is easier to get to than other items. Household Items To take your household items, such as furniture,...

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How to Report a Judgment to a Credit Bureau

A judgment is a final decision made by a court of law in a lawsuit or criminal proceeding. It is usually recorded with a clerk of court in public records. Credit bureaus report judgment information in credit reports that relate to debt collection. A creditor who has been awarded a judgment can report it to the credit bureaus so it appears on the debtor's credit report. Instructions 1 Collect the information regarding the judgment. Since judgments...

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The Procedural Requirements for Wage Garnishment in Indiana

Both judgment creditors and employers must follow wage garnishment procedures in Indiana. Wage garnishment allows the creditor to take part of the debtor's pay to satisfy the debt. A creditor typically must get a money judgment in court against the debtor before trying to garnish wages in Indiana. Creditor Returns to Court The judgment creditor must return to the Indiana court that granted the money judgment he wants to garnish, and he must file an affidavit or motion to support the garnishment. The filing has to include statements and...

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How to Easily Repair Credit

Having a low credit score can significantly derail your attempt at securing loans with reasonable interest rates. If you have made bad financial decisions in the past by making late payments or you've had your car or other belongings repossessed by banks, you may find yourself with a below-average rating. Fortunately, you can take steps to improve your credit score. Though you will not see progress overnight, in time you should see your number tick...

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HUD Certified Consumer Debt Counseling Agency Requirements

The U.S. Department of Housing & Urban Development (HUD) provides a list of HUD-certified credit and debt counseling agencies on its website. These agencies provide consumers with the budgeting skills and savings tips that they can use to change negative spending habits. Unlike non-certified credit and debt counseling agencies, though, those affiliated with HUD must agree to certain requirements. Make sure that the agencies with whom you are...

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What Is a Revolving Credit Balance?

You may hear bankers and others with a taste for finance speaking about revolving credit balances. Both businesses and consumers can have revolving credit extended to them by a bank or other lender. In short, revolving debt is a fixed amount of money that does not have to be repaid every month. As of March 2010, there was $852.6 billion in revolving debt in the United States, the majority of which is credit card debt. Types The majority of...

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How to Settle With a Citi Card

Settling credit card debt with Citibank is a negotiation process that takes planning and an understanding of how much banks can accept to improve their financial standing with the Federal Reserve and removing bad debts from their books. Understanding settlements made with other Citibank customers and their financial situations will allow the person looking to settle the debt to gain leverage over the bank and ask for specific programs. Knowing the...

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Debt and Collateral Recovery

When you apply for a secured loan, you must provide your lender with collateral. Your collateral can be your home, car or retirement accounts. Secured loans often come with a lower interest rate because they present less of a risk for the lender. Significance In the event you fail to meet your financial obligations to your lender, the lender reserves the right to repossess your collateral as payment for the debt. If, for example, you pledged...

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Can a Wage Garnishment Be Stopped While a Small Claims Case Is in Dispute?

Stopping wage garnishment is difficult. Garnishment is a legal order allowing a creditor or debt collector to freely withdraw funds from a debtor's bank account or paycheck for an unpaid debt. The Internal Revenue Service and state tax collectors can also garnish bank accounts and paychecks. It is possible to dispute garnishment orders, but usually the garnishment continues while a court considers the dispute. Process Garnishment often occurs after a debt collector wins a lawsuit alleging that a borrower failed to pay a debt. Lawsuits are...

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Definition of a Debt Management Plan

When you find yourself in a large amount of debt, you may be tempted to take drastic actions, such as filing for bankruptcy or settling your debt. Instead of going to such extremes, you may want to look at a simpler option known as a debt management plan. What is a Debt Management Plan? A debt management plan is a type of system that involves paying off your debts over the long-term. Setting up this plan typically includes negotiating lower interest rates on your credit accounts. You then make one monthly payment to the debt management...

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Can Creditors Take Money From My Account After I Write a Check?

Creditors cannot continue to take money from your account after you write a check---unless you authorize it or they receive permission from a civil court to garnish your bank account. Debt collectors often use account information from a personal check to identify a debtor's bank account. That gives them the information they need to pull money from the account after a judge signs garnishment orders. However, many steps are necessary before that happens. Process Months or even years can pass before a delinquent debt reaches the status of...

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How to Lower APR Rates on Credit Cards

Interest rate increase restrictions on credit cards are about to go into effect, thanks to new governmental standards. Before those restrictions occur, however, many card companies may begin increasing rates in an attempt to maximize their profits before the restrictions take hold. But there are several methods you can use to reduce your rates. Instructions How To Lower APR Rates On Credit Cards 1 Keep a low credit-to-limit ratio. For instance, if you have a card limit of $1,000 and you typically carry $200 a month on the card, you have...

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