Will Debt Consolidation Affect a Spouse's Credit?

If you or your spouse are in financial trouble, debt consolidation may provide some relief. However, if you consolidate joint debt, or you jointly enter into a debt consolidation agreement, this will affect both your credit as well as your spouse's. If the debt is in the name of only one spouse, he can prevent damage to his spouse's credit by handling consolidation efforts on his own. Credit Reporting Credit reports belong to individuals, not couples. Unless the couple takes out credit cards or loans together, are joint defendants in a...

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How to Get Rid of an IRS Tax Lien

The IRS has the right to place tax liens on your property if you owe federal taxes (Federal Tax Liens). While some may be able to prevent the IRS from putting a lien on their property, others are not so fortunate. IRS tax liens can be a burden if you are trying to obtain credit or sell your property. Instructions How to Remove an IRS Tax Lien 1 Negotiate with the IRS to get an installment agreement. This agreement will allow you to pay a down payment on the taxes that you owe and pay off the debt by making monthly payments. If you enter...

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Do You Have to Sell Your House to Settle Credit Card Debt After Death?

Dealing with the death of a spouse or a loved one is difficult without the additional worry of financial matters. Many spouses struggle with how to deal with the remaining debt after the debt of a spouse. Losing one income, and deciding the best way to care for your family, are all factors in deciding what to do after your spouse dies. Assets Stand for Debt After someone dies the estate he leaves behind must stand for his debts. This means...

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Is it Smart to Pay Off Credit Card Debt With a Line of Credit?

People with a lot of credit card debt often look for ways to consolidate that debt to pay it off or lower the interest rates. One way to pay off that debt is through a line of credit. Line of Credit A line of credit is the amount a bank or other lender will loan a person without additional approval. A person is given checks to spend against the line of credit at different times. Lines of credit to pay off debt often come in the form of home equity lines of credit. Risks Lines of credit will often be approved for more than the amount...

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What Happens if I File for Bankruptcy and My Wages Are Garnished?

If you are working under a garnishment order, a portion of your wages are being taken out of your paycheck each pay period to satisfy a debt. If the garnishment is putting a strain on an already tight budget and you have additional debts that you do not have the ability to pay, you may wish to consider filing for bankruptcy protection. Immediately upon the filing of a bankruptcy petition, an automatic stay will take effect and the garnishment must stop. Garnishment Process A creditor must follow state laws and procedures to obtain a garnishment...

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How to File a Lien in Missouri

Unfortunately, creditors filing a lien against a debtors real estate, becomes the only alternative to recoup monies owed to that creditor. This means that once the lien is in force, the debtors real estate cannot be sold legally without satisfying the debt first. It will then become free and clear with no encumbrances on the title. In order to file a lien, certain requirements have to be fulfilled by the creditor, such as a true claim on the debtors real estate with contracts and papers to back up that claim. Read on to learn how to file a successful...

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Do You Receive a 1099 Form for Unpaid Credit Card Debt?

It is possible to receive a 1099 tax form for unpaid credit card debt. Example: You settle a $2,500 credit card balance for $1,000 -- a savings of $1,500. According to the Bankrate.com website, the IRS will treat the $1,500 as income because you never paid it. The 1099 C will be issued by your creditor and must be addressed on your next federal tax return. Identification The IRS form "Cancellation of Debt Form 1099 C" is a short document similar to a W-2 wage and tax statement. It lists the creditor's name and your name, along with the...

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Debit Card Policies

A debit card is similar to a credit card, in that you can use it for various kinds of payments (live, over the phone, or via Internet) and store purchases. Crucial differences exist, however. A debit card is linked directly to a cash account, usually a bank account, from which funds are deducted immediately. No revolving debt is created and no interest is charged. Debit card use use has advantages and dangers associated with it. Debit Cards and...

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How to Separate a Deceased Spouse From Credit Reports

If you have recently lost your spouse, you will need to take steps to secure your credit rating as soon as possible. Begin by removing your spouse from your credit report. While some debts may be waived following a spouse's death, keep in mind that you may still be obligated to pay some of your spouse's debt. Instructions 1 Contact the three credit bureaus (Equifax, Experian and Trans Union) in writing to inform them of your spouse's death. The letter should include both of your Social Security numbers and full names, an email address, the...

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Can I Get Money If a Company Put a Collection on My Credit Report That Was Not Mine?

Federal law requires creditors and debt collection agencies to report credit information truthfully. When creditors and debt collection agencies violate this regulation, consumers have the right to sue in civil court. The law allows debtors to pursue creditors for actual damages suffered as a result of the false credit information as well as costs associated with filing the lawsuit. Federal Reporting Regulations It is illegal under the terms of the Fair Credit Reporting Act for a creditor to report false information to any credit bureau,...

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Should You Consolidate Debt?

Debt consolidation is an effective way to reduce your payments and pay down your balances faster, and once you've paid off the consolidation loan and eliminated your balances, you can use extra income to increase your personal savings. But while consolidation helps simplify debts, this method isn't right for everyone. Weigh the factors and decide if consolidation is right for you. Definition of Consolidation Debt consolidation is the process...

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How Lenders Report to Credit Reporting Agencies

When a lender agrees to give you a loan, credit card or other form of credit, that lender takes a risk. The risk is that you won't pay the money back in the manner you agree to. To protect against these risks, lenders rely on credit scores and credit reports to make their decisions. These are based on information reported to the credit reporting companies through different methods. Three Companies When it comes to consumer credit scores,...

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Debt Management and Repayment Plan

The big caveat about any debt management and repayment plan is that you have to stick with it. Executing a debt or financial management plan often involves more than plugging in the numbers. You have to commit to a lifestyle change that puts paying off debt ahead of other things like eating out or buying new items. That means creating a budget, sticking religiously to a payoff plan and even taking more work, if necessary. Write It Down The first step to tackling debt is to write down exactly what you owe, to whom and what the interest...

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Who Pays Personal Loans Upon Death?

After the death of a loved one you may be wondering who is responsible for paying off the deceased's personal loans. Debt is not inherited and will not be passed on to the next person as long as you are not a cosigner on the loan. However the estate will need to pay for the loan. Executor Will Take Care of Debt The executor of the estate will be responsible for settling any debts the deceased left behind. This means that any assets the person...

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Frequently Asked Questions about Credit Cards

A credit card can be a convenient way to pay for everyday items, but it requires responsibility. According to MSN Money, improper use of your credit card can cause your credit rating to slip below 620, which would make it difficult to get car or home loans. Get the answers to the frequently asked questions about credit cards before you start using one. What is a Good First Credit Card? If you or someone you know is looking into getting a...

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How to Transfer Assets & Property Titles After Death

When a person passes away, she often leaves behind a variety of assets the title to which must be legally transferred to her heirs or beneficiaries. The title to a car must be converted to show the heir owns it legally for example, and the deed to land or a home may need legal adjustments as well. The process for legally transferring assets and titles to a beneficiary or heir is achieved by going through a probate court process. Instructions 1 Talk to a state probate attorney or visit the local court house to open a probate case. 2 ...

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Does Money Owed to a Landlord Come Before an IRS Lien?

Generally, from a legal standpoint, you would not pay money owed to a landlord before an IRS lien. The IRS has the power to potentially seize any and all property to collect monies owed. If you do not have enough money to pay your bills and decide to file for personal bankruptcy protection, you may be able to temporarily avoid paying back rent or back taxes owed. Federal Tax Liens A federal tax lien is the legal instrument securing the government's...

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How to Improve Bad Credit Fast

There are a few tips to improve credit fast. You will need to do a few simple things to get a higher credit score. Instructions 1 The first step is to check your credit reports for errors. When your credit report is correct you need to focus on paying down your debt levels. The credit bureaus use a ratio of of debt to income as a major factor in computing your credit score. Paying down your debt levels will improve your credit and score quickly. 2 Pay on time. If you are late just a few times it can really hurt. Be sure to send payments...

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Does Oregon Allow Recourse After a Foreclosure?

In a non-recourse state, you will not be liable for more than what your home is worth, when it is sold through a short sale or auction. A recourse state does allow a lender to pursue you for the deficiency amount, if the proceeds from the sale of your property are less than what you owe. Although identified as a non-recourse state, Oregon does allow recourse after a foreclosure in certain cases. Recourse/Non-Recourse Typically, if a state...

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How Long Do Inquires Stay on a Credit Report?

When you apply for a loan, credit card or line of credit, the lender will conduct a credit check to determine how much of a lending risk you are and the level of interest you should be charged on the account. Unlike many other items on your credit report, credit inquires drop off your credit history fairly quickly. Definition A credit inquiry is a record of a credit check conducted by a potential lender. Applications for certain types of...

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How to Use Margin with an Online Brokerage

Margin allows you to borrow money from your broker against securities in your account. Every broker has a list of marginable securities that you can borrow against and sets the maximum limits for borrowing. Instructions 1 Select the margin feature when you open an online brokerage account. If you have a cash brokerage account, ask your broker how to add margin. Once it's approved, the use of margin is automatic: if you have sufficient collateral...

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How to Clean up and Remove Negative Information From Your Credit Report

If you don't know what's on your credit report, allowing lenders, employers and credit card companies to run your credit is a game of financial Russian roulette. Consumers often assume that because they have a positive history of managing debt well and paying their creditors on time that they must have good credit. Unfortunately, reporting errors occur more frequently than most people realize. The U.S. Public Interest Research Group estimated in a 2004 report that roughly 79 percent of all credit reports contain at least one error. Clean up your...

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How to Raise Your Credit Score in 90 Days

Ninety days is a reasonable time table for improving your credit score. Updates to your credit report are made by your creditors every 30 days, giving you plenty of time to make some moves with a 90-day plan. The bigger question is just how much you can expect your score to improve. Everyone's credit situation is different, with a number of factors used to compute your credit score. Among the considerations are your payment history, the type of credit you have, such as credit cards and loans, and your level of debt. Instructions 1 Reduce...

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Is a Credit Card Chargeoff an Option?

You should avoid a credit card chargeoff at all costs. A chargeoff will lower your credit score, which is what other lenders use to determine your creditworthiness. Having a chargeoff on your credit report is weighted heavily by potential lenders. They will classify you as a higher risk and may deny you credit. If you are granted credit, expect to pay higher interest rates and fees. Ramifications The card lender will report your chargeoff...

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How to Hire a Debt Consolidation Company

If you are in debt and considering consolidation, the following tips will help you get the best service from your debt consolidation company and avoid being scammed. Instructions 1 Don't go with the first debt consolidation company you find. As when shopping for anything else, do you research before choosing a debt consolidation company. You have probably seen several companies advertising on television and online. Take down the names and...

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Free Debt Help & Advice

Use debt settlement, credit counseling, debt consolidation or bankruptcy to eliminate your mounting debt. As of July 28, 2010, the United States Federal Trade Commission passed the Credit Card Debt Settlement Act, granting the growing number of distressed consumers relief from personal debt. This includes credit card debt, doctor bills, collection accounts and personal loans. It does not include alimony, mortgages or student loans. Who Qualifies...

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Free Help With Low Interest Rate Credit

Consumers may often find themselves inundated with credit card offers in their mailboxes, but it can take some effort to get one with a low interest rate. Consumers with good credit ratings should shop around to ensure they're getting the lowest rates possible and be willing to negotiate with creditors to get the best deals. Existing Accounts You may be your best source of free help for reducing the interest rates on your credit cards. Just making a phone call to your card issuer to request a lower rate could save you hundreds of dollars...

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How to Reduce Loans

The best way to reduce your loans is to pay them off on time. Most borrowers intend to do this when they take debts, but circumstances can arise to make repayment challenging, if not impossible. If this is the case, the next best method is to apply debt reduction strategies to begin digging yourself out of debt. These strategies may include settlement, consolidation or modification. Each strategy has its downside, however. Be careful when you begin...

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Is Debt Consolidation Right for Me?

When multiple creditors call you expecting payments, you may be overwhelmed financially and not know where to turn. One option to consider is debt consolidation. Debt consolidation involves borrowing money from one source to pay off all of your debts. While common, debt consolidation is not for everyone. Debt Consolidation Process With debt consolidation, the goal is to get all of your debts into one single package. This way, you can make one payment every month instead of multiple debt payments throughout the course of the month. You could...

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Can They Put You in Jail for a Civil Suit for Credit Card Debt?

When credit card debts go unpaid, the credit card company or its debt collector may sue you to get its money. Because civil suits are legal actions between two or more parties and not actions taken by the court, you won't be sent to jail as a result of being sued for credit card debt. You may be ordered to pay the debt by the court, however. Credit Card Collections Before civil suits are filed by a credit card company, the company attempts...

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How to Avoid Debt Consolidation Scams

In a difficult economy, many people look for help managing spiraling debt. Loans that enable you to consolidate your debts are widely available, and solidly reliable financial institutions have offered such personal finance assistance for many years. A plethora of other businesses also offer debt consolidation loans. Among them are those that aggressively market what essentially boils down to a scam. Their tactics distinguish them from legitimate...

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How Do Debt Relief Agencies Affect Credit Scores?

Utilizing Debt Relief Agencies Many people turn to debt counseling agencies before considering debt relief agencies. This may be a better option because they have less of an effect on credit scores. With debt counseling agencies, your credit score is not affected, although a note is issued to the credit bureaus that you are paying your debts through a debt counseling or debt management agency. With debt relief agencies, you can often pay down...

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What Is My Responsibility After Receiving a Request for Entry of Default?

The primary goal of a civil lawsuit is to resolve a dispute in a nonviolent way. The parties do not have free reign in court, however. Civil procedure rules mandate issues regarding notifying the parties about claims and defenses and the way to ask for a default judgment. A default judgment may arise if one party fails to appear or otherwise defend his case. Request for Entry of Default The plaintiff is responsible for requesting an entry of default. After filing a lawsuit and serving the defendant with notice of the lawsuit, the court...

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How Does Unsecured Debt Vs. Secured Debt Affect Credit Ratings?

Your credit score indicates how financially responsible you are for landlords, employers and lenders, and while a small percentage of your score depends on the type of credit you possess, the majority of your score looks instead at how you handle your debt. Still, it's important to understand the differences between your unsecured and secured debt and the ramifications each has on your credit and your life. Unsecured Debt Unsecured debt is...

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Reliable Prepaid Debit Cards

If your credit score's not what it could be and you can't open a bank account that comes with a debit card, managing your everyday spending and making purchases can be a struggle. Fortunately, if you're in this position, you can apply for a prepaid debit card. They work in exactly the same way as a standard card when paying for goods and services but allow you the freedom of shopping and paying your bills with plastic without worrying about overspending. Availability Visa and MasterCard prepaid debit cards are available from a number of...

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What Can Be Used to Secure Debt?

Lenders are often only willing to issue a loan if the borrower is willing to secure it. This means that the borrower must offer the lender collateral that the lender can seize if the borrower fails to pay back the loan under the terms agreed. There are different forms of collateral a lender is willing to accept, although objects of significant value, such as houses and cars, are most common. Purchase Loans Collateral is often used to secure a loan that is used to purchase a specified object. In these cases, the object being purchased will...

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How to Mix Personal With Business Accounting

Many people with small or home-based businesses freely mix personal and business accounting. They may use a single checkbook to buy groceries, pay the mortgage -- and purchase supplies for their business. They may use their cell phone for business and personal use and pay the cell phone bill out of the family checking account as well. Some separate bookkeeping is often necessary, but the Internal Revenue Service does recognize one business structure that is perfect for mixing personal and business accounting. Instructions 1 Conduct your...

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Credit Questions & Answers

Credit cards and other forms of credit involve borrowing money and paying it back at a later date. Credit can be a convenient alternative for purchasing goods and services, but it can be costly. It is important to understand the basics of credit use and credit scores to be financially responsible. How do Credit Cards Work? Credit cards allow a consumer to borrow funds up to a specified credit limit, with interest accruing on money spent that is not paid back by the end of the month. The interest rates on credit cards are often very high;...

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How Do Collection Agencies Obtain Your Social Security Number?

A Social Security number is one of the most significant pieces of identifying information that any company or individual can have about a consumer. Regardless of how closely an individual guards his Social Security number, a collection agency may still obtain it along with other private financial information in its effort to collect a debt. Facts The Fair Credit Reporting Act allows any company or organization access to a consumer's credit...

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