How to Build Credit With a Prepaid Credit Card

A prepaid credit card, also called a secured credit card, is a good option for those who haven't yet established credit or who have poor credit and are trying to rebuild their credit scores. A prepaid credit card requires you to open a savings account with the credit card issuer that ranges from a few hundred to thousands of dollars. The credit card issuer then allows you to access a credit line that's a certain percentage of your deposit amount, which can be between 50 and 100 percent of the total. Secured credit cards can be used to pay for goods and services just like an unsecured credit card.

Instructions

1

Before you apply for a prepaid credit card, ask questions to protect yourself against usurious charges buried in fine print. The Federal Trade Commission urges consumers to ask the issuer about their application and processing fees and if they will be refunded should you be denied the card. Inquire if there's an annual fee and note if the prepaid credit card has an interest rate on the balance that's higher than an average credit card.

2

Make sure that the prepaid credit card issuer reports to a credit bureau if you're trying to establish or rebuild credit. If the issuer doesn't report to a credit bureau, it won't help you build credit because it will not be reflected on your credit history.

3

Make sure to pay the minimum amount on your credit card statements in a timely manner. This is the only way to build or repair your credit history. If you have a good track record with the prepaid credit card issuer, they might convert your account to an unsecured credit card and increase your spending limit.

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How to Deal With an Unstable Job

Dealing with an unstable job can cause extreme stress and worry, especially during tough economic times. An unstable job can lead to unemployment without notice, such as a layoff -- or even the closing of the company. Dealing successfully with an unstable job requires you to put your emotions aside while making good career and business decisions for you and your family. One of the worst moves is waiting to see what happens with your unstable job. Getting out in front of a possible layoff could allow you to transition to a new position without missing a paycheck.

Instructions

1

Start a job search. Ideally, you should never stop looking for the next job, even in good times. But you should bring a greater sense of urgency to the mission when you are in an unstable job. Spruce up your resume and start applying for open positions. This gives you a head start on finding a job if your company folds or you are laid off. Being proactive about finding other opportunities will make it easier to deal with the instability of your job.

2

Ask your supervisor for some straight talk about your unstable job. Use the discussion to determine why the job is unstable. There is a chance the company may be doing just fine, but your job is at risk because of advances in technology. If that's the case, ask your boss how you can prepare yourself for another job in the company. Reinventing yourself by going back to school or taking part in cross-training opportunities are possible options.

3

Participate in all-hands meetings about the direction of the company and departmental meetings as well. Also read trade publications and blogs about your industry and the type of job you have. If you are a machinist and other companies are laying off machinists because of technology, then that's a sign that your job could also be at risk.

4

Meet with a human resources representative to discuss your concerns. An HR person is unlikely to tip you off about a layoff, and you should not ask such a question. However, you can use the time to review your benefits and ask about severance packages offered in the past by the company. Also ask the representative about other jobs in the company that appear more stable than yours and how you can qualify for those positions.

5

Take a new job inside or outside the company offering greater stability if you're offered a position.

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How to File a Debt Management Plan in Missouri

Missouri reports on its website that a debt management plan is a written agreement between you and a "debt adjuster," such as a nonprofit credit counseling agency. The state reports that the agreement establishes that the debt adjuster will perform debt management services for you for a fee. The terms of the agreement are negotiated by you and the debt adjuster. The agreement becomes a contract and is considered official--or filed--when both sides agree and sign.

Instructions

1

Search the database for the U.S. Trustee Program to find a government-approved nonprofit credit counselor in Missouri (see Resources). Approved agencies specialize in debt management plans.

2

Schedule a visit with the agency in Missouri. Take a list of all your debts including recent copies of billing statements. Ask for details about debt management plans. Typically the plans require you to authorize the counseling agency to manage your budget and pay your bills. You are charged a monthly management fee and must also send the agency a lump sum check each month covering your debts. The agency then makes direct payments to credit card companies and other creditors.

3

Agree on a plan and sign the contract.

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How to Run a Debit Card as a Credit

Your debit card looks like a credit card, but functions very differently. A debit card is connected to the funds in your checking account. When you use your debit card, your bank immediately removes the funds from your checking account. You have the option, however, to use your debit card for credit transactions. Like debit transactions, credit transactions on a debit card pull funds directly from your checking account. The difference is that credit transactions may take two days or longer to process. Only then will your bank withdraw the money from your checking account.

Instructions

1

Hand your card to the cashier when you are ready to pay for your purchases or swipe its electronic strip through the customer card terminal at the register.

2

Show the cashier your ID if she asks for it. Some merchants routinely check ID when customers use credit or debit cards.

3

Select "credit" on the customer card terminal's screen or, if there is no customer card terminal, inform your cashier that you'd like to run the card as a credit purchase rather than a debit purchase. Unlike a debit purchase, you will not need to input your PIN when using your debit card as a credit card.

4

Sign the merchant's slip the cashier hands to you or provide the store with an electronic copy of your signature by signing within the space provided on the customer card terminal's screen.

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Can a Mortgage Company Garnish Wages?

When a person takes out a home loan, this loan is nearly always secured by the home itself, which acts as collateral. If the person goes into default on the home loan, the company that issued the mortgage may initiate foreclosure proceedings. In many states, if the home is foreclosed upon and sold, the former owner is no longer obligated to pay the lender anything. However, in some areas, he may owe additional fees, which the lender may attempt to gain through garnishment.

Foreclosure Fees

When a home goes into foreclosure after the borrower has defaulted on the loan, the lender is legally obligated to put the property up for public auction. In doing so, the mortgage company may incur a number of fees, such as legal fees and fees paid to the auction house. In addition, the company may not recoup the full amount that remains outstanding on the loan through the auction sale.

State Laws

In some states, such as Connecticut and Florida, a borrower who has walked away from a foreclosed home has no legal obligation to pay any additional money to the lender. However, in other states, such as Alabama and Arkansas, if the lender does not recoup the full cost of the loan and the foreclosure fees after the sale of the house at the auction, the borrower is legally obligated to make up the difference.

Legal Damages

If the former owner of the home is liable for the outstanding balance and refuses to pay, the mortgage company may attempt to force him to pay by suing him in court. Because the borrower's obligation to pay these fees is likely spelled out in his loan contract, the mortgage company may sue him for breaching the contract and demand damages in the amount of the fees, plus legal costs.

Garnishment

If damages are awarded to the mortgage company, the home's former owner will be given a chance to pay this money. If he fails to do so within the time period ordered by the judge, the judge may allow the mortgage company to take actions to collect the money against the borrower's will. Potentially, the mortgage company could be allowed to garnish the borrower's wages until the damages have been paid off.

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Can Your Check Be Garnished for Old Credit Cards?

Garnishment of your check for an old credit card debt is possible, but there are limitations. State statue of limitation laws limit how long credit card companies and other debt collectors have to pursue an old debt in court. The length of time varies depending on the state, but the average is about six years. After that, civil courts consider credit card debts as too old for consideration by the court system.

Identification

Wage garnishment forces employers to send a certain percentage of your paycheck to a debt collector each month for a debt you did not pay. Garnishment is possible only after the credit card company or debt collector files a civil lawsuit, wins a judgment and asks the judge for permission to collect the debt through garnishment. Judges usually agree to the request if the debtor has not made payment arrangements with the debt collector. Employers must cooperate with garnishment orders and will begin the deductions after receiving a notice from the court.

Considerations

State statue of limitation laws are an effective defense in a credit card lawsuit. The laws do not prevent a credit card company from pursuing an old credit card debt, however. Lawsuits are possible even when the credit card debt is beyond state statue of limitation guidelines. It's up to the debtor in the case to point out to the judge that the debt is too old for consideration by the courts. "The New York Times" reported in 2011 how one debtor escaped a possible judgment and garnishment by giving the judge a handwritten note citing his state's statute of limitation laws. After verifying the information the judge dismissed the case.

Help

Consumer affairs attorneys can advise debtors about statue of limitation laws, or the debtor can contact a local office for the state attorney general. Other help is sometimes available from local law schools or organizations offering free legal services to the poor such as the Legal Aid Society. Debtors with old credit card debts should review statute of limitation laws before agreeing to pay. Without the threat of a lawsuit the debt collector loses a huge advantage. The debtor remains responsible for the debt for life, and the debt collector can continue pursing the debt through traditional methods such as notices by mail and phone calls. However, the Fair Debt Collection Practices Act, a federal law, gives debtors the right to demand in writing that a debt collector not contact them by mail or phone.

Precautions

Some debt collectors specialize in tactics for "re-aging" debts so that they again become eligible for lawsuits, judgments and garnishment. Making a partial payment on an old credit card debt can reset the debt under statute of limitation guidelines, in some instances. Debtors determined not to pay an old credit card debt should not discuss the debt with a debt collector without the advice of an attorney.

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Comparison of Consolidated Debt to Paying Off Credit Cards

People who are struggling to pay their debts may think using one loan or a line of credit to pay off several debts is a quick fix for their financial problems. Those methods may work for some people, but others find themselves deeper in debt due to the high-interest charges that often come with loan and credit card consolidation options.

Debt Accumulation

Debt consolidation often involves taking on more debt to solve a financial problem. Yet that can create more problems for consumers who don't reduce their spending and change other behaviors that created their financial troubles in the first place. A Bankrate.com article, "Debt Consolidation: Cure or Continued Credit Problems?" says 70 percent of Americans who get loans to pay off credit cards accumulate the same amount of debt or more within two years. Furthermore, people who need loans to solve their debt problems probably won't get low interest rates on their loans. Lenders give the best rates to people with high credit scores, and large amounts of credit card debt usually lowers a borrower's score.

Home-Equity Loans

Homeowners who are deep in debt may be able to get home equity loans to pay off their credit cards, but the loans aren't a good option in some circumstances. Home equity is equal to the appraised value of a home minus the balance owed on a mortgage, and people who've lived in their homes for many years may have a lot of equity available. However, homeowners who end up in more financial trouble and fail to pay back the home equity loans they used to consolidate their credit card debt could default on their loans and lose their property.

Credit Card Transfers

Some people use credit cards to consolidate debt by transferring balances from high-interest cards to low-interest ones. Their intention usually is to reduce their interest charges while they pay off their cards. However, credit card companies usually offer low interest rates for a limited amount of time to people who transfer their balances from other cards. Cardholders who don't pay off their balances before those low rates expire could end up paying the high interest rates they were trying to avoid. Cardholders who are late with a payment after consolidating their credit card debt can be hit with penalty interest rates that exceed 20 percent.

Debt Management Plans

Debt management plans offered by nonprofit organizations such as the National Foundation for Credit Counseling may be a better option than debt consolidation loans and credit card transfers. People who enroll in debt management plans typically meet with a credit counselor who helps them create a budget and a debt repayment plan. According to the Bankrate.com article, someone with $20,000 in debt could save more than $10,000 in interest payments and fees by working with a counselor to pay off credit cards rather than taking out a debt consolidation loan. Credit counselors can save their clients money because they typically negotiate with creditors to reduce the interest rates and fees their clients are charged.

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