Three Ways to Face an Uncollected Debt

Benjamin Franklin said, "Creditors have better memories than debtors." The saying may be true, but debtors don't necessarily forget their debts. A well-intentioned debtor may have a cash flow problem that prevents him from repaying a debt. Faced with limited cash flow, individuals must prioritize the bills they pay until their financial situation improves. When circumstances change and you are ready to face your uncollected debt, there are several ways to go about it.

Acknowledge the Debt

A creditor has a set amount of time to collect an unpaid debt. The collection period is called the statute of limitations. According to Bankrate.com, the statute of limitations for collecting a debt ranges from two years, for a debt owed in connection with an oral contract in California, to 15 years for written contracts in Kentucky, Ohio and Rhode Island. In most states, if you admit to the creditor that you owe the debt, your acknowledgement resets the clock, and the credit or can take collection action against you. At that point, you can try to negotiate a payment plan with the creditor. Acknowledging an old debt is one way to face it.

Pay the Debt

If you have the funds to pay your debt, the simplest way to face an uncollected debt is to pay it in full. Contact the creditor to verify the amount you owe. Pay the amount you owe and get a receipt for payment from your creditor.

Facilitated Contact

If you are afraid of facing your debt, ask someone to facilitate contact with your creditor. Your representative will contact your creditor and explain that she represents a debtor who wants to repay an uncollected debt. The representative can propose a payment plan and get the creditor to agree to accept regular payments from you without revealing your identity. After the creditor commits to a payment plan, your representative will reveal your identity to the creditor so you can repay the debt according to the schedule.

Charitable Contribution

Perhaps you cannot pay an uncollected debt because you don't know where your creditor lives or even if the creditor is still alive. You want to do the right thing and pay your debt, but you can't. If you can't locate your creditor, pay the amount of money you owe to a charity. The charity will welcome the gift, and making the payment will put your conscience at ease.

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How to Negotiate With a Banker

With much hard work and planning, the purchase of a new car, home or business can be close to becoming a fulfilled dream but, in many cases the time for the need may come before all of the funding has been obtained. In these situations, it becomes necessary to seek a loan to help make up the difference. When seeking a loan from a banker, it isn't the banker trying to sell you money. Rather, it is you trying to sell the banker on why he should loan it to you.

Instructions

1

Call ahead and make an appointment with the banker of your choice. Though many banks will permit visitors on a walk-in basis, it is polite and smiled upon by bankers if you show courtesy by calling ahead and asking for a set time to visit with the banker.

2

Present the banker with a copy of your business plan, if starting a business, during the appointment. The business plan should show initial start-up costs, a plan on how income is to be made as well as projected income over a specific period of time. The business plan must be written in a way to show that you have taken into account all of the risks involved and how you plan on mitigating those risks.

3

Provide bank statements for all checking and savings accounts, as well as lists of valuable property such as homes, boats, cars, and anything else of value which you are willing to put up as collateral for the loan. Collateral means that you are willing to let the bank take those items should you find you aren't able to pay off the loan requirements for which you sign any loan contract.

4

Make it a rule to never attempt to seek a loan for more than half of the total needed. If you need $10,000 to buy a car, for instance, try to save up at least half of it and then ask for the other half from a banker. Bankers like to see this kind of initiative when negotiating with them and will be more inclined to give you the loan you seek.

5

Attend a negotiation in your best apparel and with a smile on your face. Be confident and don't let the banker "see" lack of confidence in your eyes or your face in general. If you appear nervous and seem to lack confidence in your ability to repay a loan, a banker will be able to see this from the way you carry yourself and the answer will most probably be "sorry but no."

6

Go to the negotiating table expecting to pay half of the value of what you are planning to buy, but start by asking for 75 percent of the value from the banker first. By starting high in this way, you may be able to receive 55 to 65 percent of the money from the bank rather than just 50 percent. However, if the banker doesn't appear to be interested, allow him to talk you down to 50 percent or, if you can, even 40 percent. In this way, you greatly increase your chance of walking away with at least something.

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Are Consolidated Credit Counseling Services Legitimate?

With so many people in debt, credit counselors and debt relief agencies are popping up all over the place. Each of these groups states that they can help get you out of debt, but it's hard to know who to believe. One major player in the debt relief community is Consolidated Credit Counseling Service, who offers credit counseling to anyone who feels they need it.

Credit Counseling Basics

When you place a call to a credit counseling agency, the agency reviews your financial situation with you, including the types of cards you have and the balances on these cards. In most cases, the counseling agency will place you on a debt management program, which aims to get you out of credit card debt within five years. The program usually includes lower interest rates and reduced or eliminated fees, but also requires you to close out your credit cards to help you pay down your debts more quickly.

Consolidated Credit

Consolidated Credit Counseling Services is a company based in Florida, but does business throughout the United States. Like most credit counselors, Consolidated Credit offers a debt management program, but also provides assistance with mortgages and personal financial management. The company advertises frequently on television and radio, which promotes the company's desired image of compassion and legitimacy.

Consolidated Credit Accrediations

Consolidated Credit Counseling Services is a nonprofit organization that is a member of the Better Business Bureau. The group is a member of the Association for Financial Counseling, Planning and Education as well as Association of Independent Consumer Credit Counseling Agencies. In fact, Consolidated Credit's president, Howard Dvorkin, was once president of the AICCCA. Consolidated Credit is also a partner of the United Way of Broward County, Florida.

Consolidated Credit Reviews

Consolidated Credit posts success stories from customers on their site, but these reviews are hand-picked by the organization and may not reflect the experiences of the average customer. However, customer feedback given to outside organizations has been very positive. Consumer feedback site Customer Lobby gives Consolidated Credit a five-star rating. Since customers are far more likely to complain about a bad experience than they are to praise a positive experience, this rating speaks very highly of the company. Furthermore, Forbes.com ranked Consolidated Credit as their Best of the Web in the debt management category.

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Laws on Judgments in South Carolina

Judgments are legal rulings that provide for monetary relief to the judgment creditor. Judgment laws, exemptions and time limitations vary by state. Laws in South Carolina state that judgments are automatic liens on real property that does not fall under the exemption category. Judgment creditors have several legal avenues available to them for judgment debt recovery.

Time Frame

Judgments in South Carolina have a 10-year window of enforcement. Individuals who own real property and have a judgment issued against them must pay off the judgment when selling or prior to refinancing the property. As of January 2011, South Carolina judgments carry a legal annual interest rate of 8.75 percent on all stated accounts. The judgment interest rate on entered and enrolled court-ordered decrees is 14 percent annually.

Execution

In South Carolina, execution is the method allowed by law to enforce the terms of a judgment. An execution is a separate filing with the Clerk of Court in the county where the judgment is issued that directs the Sheriff to seize real estate and personal property from the judgment debtor that is not exempt by state law. Upon seizing the non-exempt property, the Sheriff sells it at public auction and gives the proceeds to the judgment creditor to satisfy the judgment.

Exemptions

Each state provides for the amounts of personal and real property values that are exempt from judgment liens, levies or seizures. In South Carolina, a person's primary residence is exempt under the homestead exemption law, up to an aggregate value of $5,000. One motor vehicle, not to exceed a value of $1,200, is also exempt from a judgment creditor. Other exemptions include household goods and furnishings with an aggregate value not to exceed $2,500, jewelry with an aggregate value of no more than $500 and cash or liquid assets not to exceed $1,000.

Vehicle Accident Judgment Recovery

If a judgment is a result of a lawsuit arising from a motor vehicle accident, the judgment debtor -- the losing party -- has 60 days to satisfy the terms of the judgment. If the judgment is not satisfied in full within 60 days, South Carolina law allows for the suspension of the judgment debtor's driver's license and registration. The execution laws and procedures are still applicable in judgments resulting from vehicle accidents.

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How to Find out If I Owe a GTE Telephone Bill

If you had an unpaid telephone bill with GTE in June 2000, when Bell Atlantic and GTE merged together to form Verizon Communications, there are ways to find out if your bill was transferred to Verizon. Before the merger, GTE was considered to be the largest independent phone company in America.

Instructions

Through Verizon

1

Contact Verizon's collections department. Check on Verizon.com for the billing department number that corresponds to the region of the country that your GTE phone service was in.

2

Advise the Verizon representative that you are a former GTE customer. Ask her to check the Verizon database for an outstanding bill for your old account. Depending upon how old the GTE bill is, it may be still be in the Verizon database.

If you have an old GTE bill provide the Verizon representative with the account number on the bill, to aid in the process of locating your old account.

3

Ask the Verizon representative for the bill amount and ask her to send you a copy of the bill. The Verizon representative can then accept a payment for the bill or create a dispute claim for the charges for you.

Via Credit Report

4

Order a copy of your credit report directly from all three credit reporting bureaus:Experian, Equifax and TransUnion. You can also get these reports for free at some online credit report websites.

5

Review all three of your credit reports. If you have a GTE bill that has not been paid, it will most likely show as an unpaid debt on your credit report. The credit report may also show the name of the collection agency that is handling the bill.

6

Contact the collection agency directly, if you want to pay off the debt. The contact information for the agency should be listed on the credit report. In many cases a collection agency will accept a "settlement" payment that is lower than the actual bill amount. Inquire upfront concerning the settlement cost.

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How to Fix Bad Credit for Buying a Home

If you have bad credit, buying a home is a dream that can turn into a nightmare. If your credit is in bad shape, your request for loans may be turned down. Moreover, if you do manage to get one, it may be at very high interest rates. The good news is that bad credit can be fixed over time by putting the time and effort into repairing your credit. Then, you can get approval for a mortgage you can afford.

Instructions

Repair Old Credit

1

Start by analyzing your credit report. You will need to assess your current credit situation to identify the negative items that are damaging your credit score. You can obtain a free credit report from each of the three leading credit bureaus (Equifax, TransUnion, and Experian) from www.annualcreditreport.com.

2

Write to the credit agency to explain any inaccuracies on your credit report. Include proof and relevant documents that will substantiate your claim and send them by certified mail. The credit bureau is bound by law to investigate any discrepancy in your credit report. If they do not receive any confirmation of the existence of the debt within 2 weeks from the creditor, they are required to delete it and send you an updated report.

3

Settle all of your valid collection accounts. When you pay off your creditor in full, ask for removal of the negative mark on your credit report. Keep all documents related to the payment and ensure that you have an agreement with creditors first that verifies that the account will either be removed or marked as "paid in full."

4

Negotiate with creditors whose negative accounts on your credit report are valid. If the items on your credit report are valid and they are detrimental to your credit rating, you need to consider some long-term strategies to improve your credit scores. In some cases, creditors are willing to settle for amounts much lower than the debt owed in order to recoup the balance owed. If an agreement is reached between you and your creditor, ensure that you document all communication and terms for removal.

5

Negotiate with creditors whose marks on your credit report are only 30 days past due. Late or missed payments, even 30 days old, still negatively affect your credit score. Fortunately, many companies will remove these infractions on your credit report if you explain why you were late making payments and also agree to remit what is due.

Establish New Credit

6

Establish and maintain a new line of credit. Consider obtaining a secured credit card from your bank in order to start fresh and show creditors that you can be trusted to pay your bills on time. Conduct all of your your financial transactions in an orderly manner and be prompt with payments.

7

Adopt new habits in the future when dealing with credit. Repeating previous mistakes in the way you handled credit will only keep you trapped in the habit of adding negative accounts and marks on your credit report. Simple habits you can employ include paying your credit card balances well before the due date. This way, you can avoid late fees, which can accumulate as negative remarks on your credit report.

8

Use your credit cards in moderation. Your debt-to-income ratio should be manageable. Keep your balance on the card less than half the credit limit. At any point of time, avoid having more than five cards at a time.

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How Do Credit Card Companies Determine the Interest Rate Charged?

The interest rate on your credit card is the percentage of your balance the issuer charges you each billing cycle. Your credit card costs you more over time and usually takes longer to pay off if you have a high interest rate. A combination of factors, including payment and credit history, determines the interest rate you are charged.

Creditworthiness

Your creditworthiness is a significant factor in the interest rate you are charged on your credit card. Your credit score, a number assigned to you based on your credit history as reported by the major credit bureaus, is reported to the credit card company when you apply for an account. The lower your score, the higher the amount of interest you will have to pay. Credit card companies usually assign an interest rate based heavily on the score range in which your score falls.

Income

Your monthly income is considered when determining your credit limit and interest rate. You may receive a higher interest rate even if you have good credit if your household income is considered low by the creditor. That's because you are viewed as a higher risk to the company.

Payment Status

Your credit card has a default interest rate, which is the rate the company charges if you fall behind on your payments or when an introductory rate expires. A credit card company can charge you the default interest rate once you are at least two months behind on your payments. You can earn your original rate back in a delinquency case if you make at least six months' worth of payments on time.

The Economy

The current level of inflation and the health of the financial market impact interest rates offered by credit card companies in general. Your credit card company may increase your interest rate when the market slows to make up for lost customers or a higher number of defaulted accounts.

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