What Does Derogatory Public Record Mean?

Public record refers to information made generally available by federal, state and county courts. Derogatory is the term used to describe a credit account with a history of late payments. Common types of public records that may become derogatory are state or federal tax liens, civil court judgements and bankruptcies.

Time Limits

A derogatory public record typically remains on an individual's credit sheet for seven years. Chapter 7 bankruptcy will stay visible for ten.

Erroneous Records

If a person can provide evidence that certain derogatory entries are placed in error, he is legally entitled to have them removed. Doing this requires sending a written request for removal to the alleged creditor, along with the stated proof.

Legal Recourse

Failure to remove a derogatory posting that has been proven false, is cause for legal action, per the Fair Credit Reporting Act (FCRA). If an alleged account is not cleared under these conditions, the accused party may file a complaint with the Federal Trade Commission and sue the negligent company for up to $1,000.

Garnished Wages

Debts settled against wages also have a derogatory effect on a person's credit report. Garnishments, by themselves are considered derogatory, as they imply that obtaining payment by other means was unsuccessful.

Child Support

As stated, delinquency of any civil judgement is considered derogatory. Overdue child support may stop a company from issuing credit.

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How to Pay off Large Credit Card Balances

Credit cards are a valuable tool for many consumers since they provide access to funds that can be used to make emergency or essential purchases. But many consumers regularly use credit cards for non-essential items. Over time, credit card balances can become overwhelming, especially if your credit card has a high annual percentage rate. However, consumers can pay off high-balance credit cards by creating and implementing a payoff strategy.

Instructions

1

Calculate how much interest you pay on your credit cards each month. Gather all of your credit card statements for the current month. Write down the balance and annual percentage rate for each card. Multiply your current balance by your annual percentage rate (APR). This number should be listed on your statement. If it is not, call your credit card company to obtain it. Divide the annual interest amount (the product of your balance and APR) by 12. This will tell you how much interest you are paying on each card every month.

2

Determine how much of your income you can allocate to credit card payments. Write down your monthly salary, net wages and any other regular source of income. Write down all necessary expenses other than your credit-card payments such as your mortgage, car, and student loan payments, utility bills and groceries. Add up your income and expenses. The difference is the amount that you have left that you can apply to your credit-card balances each month. Use this money to pay them down.

3

Allocate excess income to your credit card balances strategically. Go back to the list that you created in Step 1. Identify the account with the highest interest rate. Pay the minimum payment on all other accounts and pay as much as possible on the highest-interest card. Once that one is paid off, proceed to the next-highest-interest card and do the same. Continue until you are finished with all of them, and you are free.

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Consequences of Unpaid Credit Card Debt

Many people open credit card accounts with the best of intentions. They plan to pay off balances on time each month, but then they have difficulty making payments each month, if at all. It's extremely important to make at least the minimum payments on your credit cards each month. If you can't, you face consequences that can have an impact on your ability to open new credit accounts, rent property or even gain new employment for the next several years.

Collection Calls and Letters

You'll start receiving calls from credit card companies a few days after your payment due date. Creditors are known to call several times a day in an attempt to reach you, and they'll also call your work if they have that phone number. Collectors can be nasty to deal with, and some will threaten legal action if you're not able to make payment arrangements. Your creditors will also mail you collection notices within a few weeks of a missed payment.

These phone calls and letters can become annoying and embarrassing, especially if they call your family or workplace to find you. However, creditors and collection agencies are required to stop calling you if you send them a letter demanding that they stop.

Negative Credit Report and Low Credit Score

Credit card companies begin reporting late payments to the three credit bureaus (TransUnion, Experian and Equifax) after 30 days. Your payment history comprises 35 percent of your FICO credit score, so consistently missing payments will significantly decrease your score.

In addition, credit card companies will update your payment status each month that you're late--so, if you don't pay your bill for two months, your report will show 60 days late, three months will show 90 days late, etc. Normally, a credit card company will "charge off" your account after six months of nonpayment. A charged-off account is reflected as such on your credit report and is a significant blemish on your report. Charging off your account usually means that your credit card company has sold your account to an outside collection agency.

Late payments and charged-off credit card accounts will remain on your credit report for at least seven years. Over time, these accounts will mean less for your overall credit score, giving you the opportunity to rebuild your credit report if you pay your other credit accounts on time each month.

Lawsuits

If you owe several thousand dollars, your credit card company could opt to sue you to be repaid. The decision whether you'll be sued depends largely on the credit card company and whether if you have employment or property that can be used as a means of repayment.

If you're sued, you'll likely have to hire a lawyer and pay legal fees to fight the case. If the credit card company wins the suit, the court will likely make you pay legal fees. This will increase your outstanding debt considerably.

Wage Garnishment

If credit card companies sue you and win, it's possible that the court will opt to garnishee your wages. Wage garnishment means that a predetermined payment amount will be automatically deducted from your paycheck each pay period until your debt is repaid. This not only decreases your income, but it can also cause embarrassment because your employer will know that you've been sued for nonpayment of debt.

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Wage Garnishment for the Self-Employed in Colorado

If you fail to make payments on a debt and make no effort to resolve your past-due balance, your creditor may opt for aggressive collection strategies. In Colorado, these strategies may include garnishment of your wages in some cases. Wage garnishment typically occurs through a traditional employer, which withholds the garnished funds before issuing your paycheck. Because a creditor cannot execute an order upon an employer to collect from self-employed debtors, they must typically use other strategies to collect from the self-employed.

Judgment

In most cases, except when a debt is for unpaid child support, federal taxes or state taxes, a creditor must obtain a valid judgment against you from a Colorado court before taking any of your earnings or assets. A creditor can obtain a judgment by filing a lawsuit against you in a civil court, typically in your home county. However, you may contest the lawsuit and avoid a judgment if you can show the court that you have paid the debt or that the creditor did not file the lawsuit according to Colorado procedural rules.

Bank Garnishment

Instead of executing a wage garnishment, a creditor may opt to garnish your bank account balances to satisfy a judgment debt. After receiving a judgment from a Colorado civil court, the creditor may apply to the court for a writ of garnishment. It may then contact your bank and demand that the bank freeze your account and turn over its funds to the court to pay against your judgment debt. Unlike some states, Colorado does not provide a monetary threshold below which a creditor cannot take funds in an account. However, the creditor cannot garnish savings account deposits while you are on active military duty outside of the United States.

Liquidation of Assets

If you own a home, a car or valuable personal property, a judgment creditor may place a lien on the property, preventing you from transferring or selling it until you have satisfied your judgment debt. If you have enough equity in the property, the creditor may seize and liquidate the property to satisfy your debt. However, Colorado law provides an exemption of $45,000 equity in your residence -- if you have less than this amount in equity, the creditor cannot force the sale of your home.

Interrogatories

Judgment creditors typically have little trouble finding out where a traditionally employed debtor works or banks so they can execute a wage garnishment order. However, it can be more difficult for a judgment creditor to learn of your earnings if you are self-employed, particularly if you do not deposit your earnings into an account held by a Colorado bank. A judgment creditor may require you to respond to interrogatories, either in writing or through a deposition, to find earnings and assets it can take to satisfy your debt. If you do not respond, the court that issued the judgment can order you to respond. Colorado law does not prohibit the taking of self-employment earnings disclosed in an interrogatory, regardless of where they are held.

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How Does Reducing Credit Card Debt Work?

Although reducing your outstanding credit card debt seems as simple as making your minimum monthly payments, you will likely find that this approach is not helping you make progress. If you want to get serious about reducing your debt, a rigorous budget and strategic payments are the most effective tools.

Earn More & Spend Less

Reducing outstanding credit card debt begins with ceasing to use your credit cards and having additional cash on hand to send to your card issuers. This requires a complete plan to eliminate unnecessary expenses and even generating additional income through freelancing or getting a second job. As far as reducing expenses, immediately switch to a cash budget---if you do not have the funds in your account to make the purchase, simply do not buy the item. Explore ways you can save money on your electric, cell phone, television and insurance bills.

Obtain Lower Rates

Since credit cards are unsecured debt, they carry significantly higher interest rates than secured loans, such as automobile loans or home mortgages. Additionally, the already high credit card rates skyrocket to what is called the penalty rate---which can be 39 percent or higher---when you are late on payments or you go over your credit limit. At these exorbitant rates, it is nearly impossible to pay down your debt, particularly if you are only sending in the minimum payment. Contact your creditor to ask about lowering your rate, transfer balances on higher rate cards to cards carrying a lower rate and available credit or even enlist the aid of a credit counseling agency.

Send in Money Promptly & Frequently

Even if you are unable to get your rates lowered, start sending in payments to your credit cards as soon as you have the cash available and do so frequently. If you find yourself getting a raise at work, take 100 percent of your additional take home pay and automatically send it into your credit card issuer. Every time you make or save money, take the extra money and immediately pay your issuer. The faster you send payments in---even if small payments---the faster your average daily balance will be reduced. Additionally, if you have funds in a savings account, use most if not all of those monies, to pay down your debt. It is unlikely that your savings account is paying you a higher rate than what the card issuers are charging.

Rollover Payments to the Next Account

By sending in all additional funds available to your card to the highest rate account, you will quickly pay down the balance on that account. Once that first account is paid off, identify the next account with highest rate, pay down the balance with the entire amount you were paying each month to the other account plus the minimum you were already paying. By paying off accounts with the higher rates first, you will maximize savings on interest fees. Often, people wish to pay down the account with the lower balances first. This approach can also work, but if you are paying down balances with lower rates first, you will be accumulating interest charges you could have avoided by paying down higher rate accounts.

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What Happens If Your State Won't Pay Your Unemployment Benefits?

States refuse to pay unemployment benefits after deciding that the claimant is not eligible for the benefits. There are many reasons a person could be ineligible. The claimant may have exhausted initial unemployment benefits, for example, or the claimant's former employer may have contested the claim, asserting that the dismissal was the result of the employee's violated company policies: A firing with cause makes a person ineligible for unemployment benefits. A person refused benefits may file an appeal with the state.

Appeal

A claimant who does not agree with a state's decision not to pay unemployment benefits may immediately appeal the decision. The exact process may vary by the state. In Texas, claimants have the right to three appeals on a specific case. They may appeal to a special appeal tribunal, and if turned down there nay appeal to an unemployment commission. An appeal to a civil court is the final option. A victory at any level allows the claimant to begin collecting weekly pay along with back pay for missed benefit weeks.

Timeline

Most states set deadlines for appealing a decision. The state of Washington allows appeals within 30 days of receipt of the decision by the state's Employment Security Department. The state accepts only written appeals by fax and U.S. Postal Service. Appeals by email are not permissible. Other states have similar rules for reviewing appeals. No states offer provisions for the former employee to receive temporary state benefits while the appeal is under consideration.

Employer Appeals

The state of Washington reports that employers may also appeal a decision resulting in a former employee not receiving benefits. An employer may help in that way if it feels the employee really should receive benefits and the state made an error in its decision not to declare eligibility.

Hearings

People contesting a state decision are eligible for an initial hearing before a commission, panel, tribunal or judge. In Washington, a single administrative law judge conducts the hearing, usually by telephone. Most state agencies provide information on their websites for preparing for the hearing. Nonprofit legal organizations, such as local chapters of the Legal Aid Society, may agree to help the claimant prepare for the hearing. People seeking referrals for free or discounted legal help should start by contacting local organizations, such as the United Way or the Salvation Army.

Considerations

There is nothing else a person can do to overturn a decision on unemployment benefits once she exhausts all appeals. A person who feels termination of employment was without merit or because of some form of discrimination by the former employer may consult an attorney for advice on legal remedies to those issues.

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How to Make a Payment to a Credit Protection Association

Making timely payments to a credit protection association is very important. Late or missed payments could prompt the association to stop protecting your credit altogether. This could make your bank and credit cards accounts more susceptible to thieves and hackers. Instead of the possibility of ruining your credit, you should utilize the many payment options that most companies offer, before your account goes into default.

Instructions

1

Sign up for Bill Pay through your Bank or Credit Union. Add your credit protection association as the payee, and schedule the amount and the date that you want your payment to arrive. This is a quick and accurate method of making a payment without having to actually write a check and mail it off.

2

Make an online payment through your credit protection's website. It may benefit you more to make a payment online as you maybe able to schedule same day payments, which is efficient if you are submitting the payment on the due date.

3

Make a payment over the phone with a customer service representative. Although this is a quick way of making a payment, you maybe charged a fee for conducting an "assisted payment," which is a term for having the representative process the payment for you.

4

Mail your credit protection association a check. This is by far the most common method of making a payment; however, it may take up to two weeks for the payment to arrive, which may cause you to incur late fees.

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