I have looked and read all kinds of diffrent stuff. On debt reduction, debt consolidation,debt settlement. I know that I don't want to file bankruptcy!! Im about 8,000 in debt with-all mostly being hospital bills. I am a mother who makes about 17,000 a year, and it takes about that much to survive. So Im trying to figure out a way to get out of debt, be able to afford the payment and it not hurt my credit score. Please anyone with experience -Help!!!!
What is the best way to become debt free?
stop borrowing and pay down your debt. you may have to get a 2nd or 3rd job. if you have a car, sell it and get something that's paid for if your car is not. don't bother with people who try to fix your credit, it's better for you to learn how to manage your own bills instead of just giving the problem to someone else.
Reply:Forget your credit score. Take care of your child(ren) and pay what you can. If the hospital won't negotiate, ignore them until you can settle. Report Abuse
Reply:You can visit http://www.cashguru.info and find very useful tips and several articles on debt consolidation. Report Abuse
Reply:I have heard of this thing called a charge off, from what I know it is a way of having a debt cleared from your record, you are still responsible for it but until you can pay it off, it does not require payment and does not incur interest. But it will be on your credit and show up at times like when you want to buy a home.
Reply:The best way to be debt free is to stop using credit cards and pay of the remaining balance. You need to get more cash flow..another job on the side or something to pay it down. $8000 is not much and not worth filing for bankruptcy.
There are so many people who are always willing to help people in need as well. I've heard a story where a girl got a website and just asked for help to pay down her debt (she bought too many clothes and shoes and was a student) and she got it all paid off. So..just ask for help. If people say no, do not take it personally. Just think how you at least put yourself out there and tried.
Good luck. Oh..another thing is to have the attitude that "Money comes easily and frequently" instead of constantly thinking that you don't have money and are in debt.
Reply:Let's focus, how old is your hospital debt?
If it is not in bad debt, with a collection agency, or an attorneys office.
Check with a financial counselor at the hospital, to find out the answer to these questions.
Is the hospital for profit, or non-profit?
If they are a non-profit hospital, they have a charity program.
You did not indicate how many children you have?
Depending on the size of your family, you can fall into their financial assistance program.
Your debt can be completely written off and or reduced precentage wise significantly.
If the debt is not considerable old, you can usually set up some kind of payment plan.
They want to get paid, so they will usually work with you.
Because in most people lives, medical bills are put on the back burner forever.
If you make the payments on time as agreed, it will not hurt your credit score.
Once the debt is cleared, be sure to get a letter with the statement of that fact and keep it for your records.
You did not say what the other bills are?
Are they secured debt, or unsecured debt?
The best thing to do for these is pay them off.
P.S. Work in a hospital business office.
Reply:Well, first of all, you make about $5000 more than I do, annually. Secondly, you're about $3000 less in debt than I am. As long as the debt isn't high-interest, I wouldn't sweat it.
I was $4000 under on just one card, but had a $10,000 limit. They did a credit check and found my score low I guess, so they reduced the limit to under $3000, and I don't owe them the money over that $3000! I have no idea why they did this, but debt is no big deal unless the interest is high.
Reply:Look around and see where you can save more money to send in towards this debt. Even an extra $50 per month can knock off alot of money.
Do you smoke ? IF yes, then quit...
Do you go out and party? Then stop and put that towards the debt.
Stay out of casinos.
Start shopping smarter. I took one gal I was tutoring financially shopping with me to show her how to save money. She saved over $100 on only one trip to the store with me. She had no clue she was spending so much on groceries foolishly. Step back from your life and see just what you can do to save $.
It is NOT easy to see these things in YOUR own life, it sometimes takes someone on the outside to point them out.
Stop spending and pay everything towards that debt till its gone. Do not let yourself get back into debt for YOU deserve to be debt free and your kids deserve to have a mom who knows how to handle her finances because we reap what we sew. !!!
Reply:I am doing a consolidated deal thorough www.consolidatedcredit.org and it helps you make low payments each month without hurting your credit score. I am not sure what country you're in but this place is based out of Florida, USA. There is a monthly fee of $8.00, but I think that it is worth it! You should definately give them a call, they are very helpful!
Good Luck!
Reply:No to minimize your problem but try 25,000 in debt and really there is no one outhere to help you. EVERY company at there is out to get you. if you have access to internet do a reseach for cc consolidation and it will provide you with a lot of different companies. Of course , many of these companies are proffesional thieves so just read the small print
Monday, August 3, 2009
What is your most burning question about getting out of debt?
I am in the process of developing a membership site that will help people get out of debt fast. If you're in debt, will you tell me what your most burning question is about how to get out of debt? Your feedback will help me ensure that I'm covering important topics.
In exchange for your feedback, I'll give you free lifetime membership to my site. Please contact me directly if you'd like a free membership.
Thanks,
Scott.......
What is your most burning question about getting out of debt?
How do I stop the viscious cycle of getting back into it. Every year I get my tax return back, pay off my loans and credit cards and swear that it will be the last time. I always plan for smarter investments, but something always comes up. So.... there's my story.
Reply:nothing i am not in debt. who would want membership to your website?
lily
In exchange for your feedback, I'll give you free lifetime membership to my site. Please contact me directly if you'd like a free membership.
Thanks,
Scott.......
What is your most burning question about getting out of debt?
How do I stop the viscious cycle of getting back into it. Every year I get my tax return back, pay off my loans and credit cards and swear that it will be the last time. I always plan for smarter investments, but something always comes up. So.... there's my story.
Reply:nothing i am not in debt. who would want membership to your website?
lily
What is the difference between debt securities and equity securities?
and how are they presented on the balance sheet...
All my books says is that a debit security is a form of ownership
and debt is form of borrowing
What is the difference between debt securities and equity securities?
Equity represents ownership and debt represents a loan.
Reply:Simply stated, debt securities represent indebtedness or borrowing by the issuing company. On the other hand, equity securities represent ownership of the issuing company.
Reply:Your books are correct: debt = borrowing, equity = ownership. Both are forms of financing and are on the right hand side of the balance sheet (on the left are various assets). The left side of the balance sheet is WHAT a company has, the right side is HOW the company paid for that stuff. Makes sense? So for a typical family that owns a home, the left side of the balance sheet contains assets like a home, cars, investments, etc; while the right hand side shows how they paid for that stuff: a mix of debt (mortgage, credit card debt) and equity (down payments on house and cars, mainly). HeavyD
Reply:debt securities equal Bonds
debt securities equal loans
equity securities = shares= common stocks
Reply:Debt securities are usually bonds. And equity securities are securities that are secured by equity in the company, or more commonly known as stock.
All my books says is that a debit security is a form of ownership
and debt is form of borrowing
What is the difference between debt securities and equity securities?
Equity represents ownership and debt represents a loan.
Reply:Simply stated, debt securities represent indebtedness or borrowing by the issuing company. On the other hand, equity securities represent ownership of the issuing company.
Reply:Your books are correct: debt = borrowing, equity = ownership. Both are forms of financing and are on the right hand side of the balance sheet (on the left are various assets). The left side of the balance sheet is WHAT a company has, the right side is HOW the company paid for that stuff. Makes sense? So for a typical family that owns a home, the left side of the balance sheet contains assets like a home, cars, investments, etc; while the right hand side shows how they paid for that stuff: a mix of debt (mortgage, credit card debt) and equity (down payments on house and cars, mainly). HeavyD
Reply:debt securities equal Bonds
debt securities equal loans
equity securities = shares= common stocks
Reply:Debt securities are usually bonds. And equity securities are securities that are secured by equity in the company, or more commonly known as stock.
Is there actually a legitimate debt consolidation Company out there?
I have a lot of debt ( Ive made A LOT of mistakes in the past two years) and I tried to use one once but when they gave me the name of my lawyer I googled him and it turns out he was a crook! If you have used a good one or know someone who has please let me know! Thanks in advance!
Is there actually a legitimate debt consolidation Company out there?
You are better off doing it yourself. There are some vert good "credit repair" books out there which will teach you how.
do NOT USE credit solutions. I don't know why this person keeps recommending them on this site but they made my situation 100 times worse.
Reply:Yes ...Yourself..It's work but It can be done I did it and I was really in debt..In a year in a half + I went from a Fico score of 500 ish to 746...It was alot of work ,patience and Constancey but I did it
Reply:Call Consumer Credit Counseling Services, they are the largest and oldest non profit credit counseling service in the Country.
You can reach them at 1-800-388-2227.
I used them several years ago and they worked with my creditors to lower both my monthly payments and my interest rate. I was debt free in 36-months.
Reply:You are better off handling it yourself. If you use one of these companies you are still responsible for the debt. If they dont pay your creditors you still owe them and they can sue you not the company you use.
Reply:Debt consolidation is an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were.
Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.
Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it.
In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it.
If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there:
http://axalda.info/debt-consolidation.ht...
Is there actually a legitimate debt consolidation Company out there?
You are better off doing it yourself. There are some vert good "credit repair" books out there which will teach you how.
do NOT USE credit solutions. I don't know why this person keeps recommending them on this site but they made my situation 100 times worse.
Reply:Yes ...Yourself..It's work but It can be done I did it and I was really in debt..In a year in a half + I went from a Fico score of 500 ish to 746...It was alot of work ,patience and Constancey but I did it
Reply:Call Consumer Credit Counseling Services, they are the largest and oldest non profit credit counseling service in the Country.
You can reach them at 1-800-388-2227.
I used them several years ago and they worked with my creditors to lower both my monthly payments and my interest rate. I was debt free in 36-months.
Reply:You are better off handling it yourself. If you use one of these companies you are still responsible for the debt. If they dont pay your creditors you still owe them and they can sue you not the company you use.
Reply:Debt consolidation is an option, and you should look into it. Just be careful about WHAT you're getting into. Some plans, because of their higher APR rates get you into more trouble than you were.
Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.
Take a good hard look at all the options and plans offered, and don't let a single company pressure you into something you just can't do. Make sure that you're comfortable with the plan offered before you commit to it.
In any case, it doesn't hurt to investigate debt consolidation as an option. It doesn't cost you anything to find out more information about it.
If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there:
http://axalda.info/debt-consolidation.ht...
How do I write a debt validation letter?
Other than with credit card companies, can you also use a debt validation letter for student loans and mobile phones? Thank you in advance.
How do I write a debt validation letter?
Check out the links below...these should help.
Reply:Maybe looking it up first wasn't an option.
How do I write a debt validation letter?
Check out the links below...these should help.
Reply:Maybe looking it up first wasn't an option.
How big is this debt that Bush is leaving to the next President?
How much money has Bush borrowed and is he leaving the debt for the next President to pay?
Why doesn't the next President borrow some more ?
How big is this debt that Bush is leaving to the next President?
don't concern yourself about the financial problems this president will leave what is more of a worry is the unstable situation he has placed the West in, we now have no allies in the East.
Pakistan Iran Afghanistan and yes even Russia all hate the West, we in Britain under the leadership of Mr Blair followed Bush and marched into Iraq ( a big mistake) America under Bush showed what arrogant bullies they were, the only good thing is a lot of decent Americans disagreed with the war but he went ahead anyway.I hope that the next tenant of the White house will be more of a peace maker because if not I believe we will soon see an uprising in the east against the west I pray that peace will prevail .It is said we will soon go through a recession lets pray this will be the only bad times we will go through. I pray for peace for all the world.
Reply:Well, the debt is very large, but let's not act like it is Bush's debt. There has almost always been debt, and the pres. doesn't make most spending decisions, they are voted on by the congress. Know that I am not a great Bush supporter, I just don't think it's fair to say that Bush has left this debt. There's a much larger responsibility
Reply:What debt?
Sure?
Not zeroes?
In pulling the slot machine?
Having hit the jackpot?
Should have borrowed more earlier.
Until the banker go broke with the jackpot.
Having all sevens on the slot machine.
Luke 8.10,17
What do you think?
Reply:the 'surplus' clinton supposedly handed bush was not. it was creative accounting, playing with SS.
Bush does not 'own' 9/11 or the subsequent necessary wars.
Bush did not make natural disasters of the like the US has seen in the last 8 years.
Reply:The next President will not have a hard act to follow. Particularly if he wants to play to the extremist Gallery of the anti-west terrorists.
Reply:About 14 trillion dollars, a world record by any standard. But people who voted for Bush need not worry because I am sure they are on welfare for the mentally handicapped.
Reply:It is not so much Bush as al Qaeda and friends. Also, the Medicare Part D is quite expensive -- but this is mostly a creature of Congress.
Reply:Congress, both Dems and Republicans, have made this problem worse. Democrats continue to propose and pass more spending and the Republicans are too wimpy to stop them.
Reply:lets keep in mind that bush was also handed a debt, and although he should have vetoed a lot of bills to save $ our debt was a bipartisan effort.
Reply:Want the total debt or the limited debt used for a Democrat President?
Reply:About 3% of our GDP.
Presidents don't 'borrow', congress spends.
Reply:100,000,000,000+ is my guess.
Reply:For the war. Do you know what 9/11 cost America.
Reply:Couple Trill'
Reply:about the same Thatcher/John Major left Blair
myspaces.com
Why doesn't the next President borrow some more ?
How big is this debt that Bush is leaving to the next President?
don't concern yourself about the financial problems this president will leave what is more of a worry is the unstable situation he has placed the West in, we now have no allies in the East.
Pakistan Iran Afghanistan and yes even Russia all hate the West, we in Britain under the leadership of Mr Blair followed Bush and marched into Iraq ( a big mistake) America under Bush showed what arrogant bullies they were, the only good thing is a lot of decent Americans disagreed with the war but he went ahead anyway.I hope that the next tenant of the White house will be more of a peace maker because if not I believe we will soon see an uprising in the east against the west I pray that peace will prevail .It is said we will soon go through a recession lets pray this will be the only bad times we will go through. I pray for peace for all the world.
Reply:Well, the debt is very large, but let's not act like it is Bush's debt. There has almost always been debt, and the pres. doesn't make most spending decisions, they are voted on by the congress. Know that I am not a great Bush supporter, I just don't think it's fair to say that Bush has left this debt. There's a much larger responsibility
Reply:What debt?
Sure?
Not zeroes?
In pulling the slot machine?
Having hit the jackpot?
Should have borrowed more earlier.
Until the banker go broke with the jackpot.
Having all sevens on the slot machine.
Luke 8.10,17
What do you think?
Reply:the 'surplus' clinton supposedly handed bush was not. it was creative accounting, playing with SS.
Bush does not 'own' 9/11 or the subsequent necessary wars.
Bush did not make natural disasters of the like the US has seen in the last 8 years.
Reply:The next President will not have a hard act to follow. Particularly if he wants to play to the extremist Gallery of the anti-west terrorists.
Reply:About 14 trillion dollars, a world record by any standard. But people who voted for Bush need not worry because I am sure they are on welfare for the mentally handicapped.
Reply:It is not so much Bush as al Qaeda and friends. Also, the Medicare Part D is quite expensive -- but this is mostly a creature of Congress.
Reply:Congress, both Dems and Republicans, have made this problem worse. Democrats continue to propose and pass more spending and the Republicans are too wimpy to stop them.
Reply:lets keep in mind that bush was also handed a debt, and although he should have vetoed a lot of bills to save $ our debt was a bipartisan effort.
Reply:Want the total debt or the limited debt used for a Democrat President?
Reply:About 3% of our GDP.
Presidents don't 'borrow', congress spends.
Reply:100,000,000,000+ is my guess.
Reply:For the war. Do you know what 9/11 cost America.
Reply:Couple Trill'
Reply:about the same Thatcher/John Major left Blair
myspaces.com
How can I consolidate or eliminate my debt?
I have about 4,000 in credit card debt (a combined total from store credit cards). I haven't been able to make any payments in a few months and I have people calling my house all hours of the day and night. I have bad credit now so I can't get any loans. What is the best way I can consolidate these cards with my bad debt?
How can I consolidate or eliminate my debt?
Read Dave Ramsey's "Total Money Makeover" and start snowballing on your debt.
Reply:Try this. You probably won't be able to get a new credit card, so you will need to approach one of the banks whose card you already have. They will consolidate the cards. Then, have your salary paid directly into your credit card account. Yep, the whole lot. Then use your credit card for your everyday expenses. Rent, food, fuel etc. Withdraw a minimal amount cash for incidentals, and leave it at home. Don't take your credit card out with you. Don't be embarrassed to tell your friends of your predicament, as they could be in a similar situation. If you stick to this, your debt will reduce remarkably quickly. Be sure to destroy all other credit cards. Good luck, you have taken the first step.
How can I consolidate or eliminate my debt?
Read Dave Ramsey's "Total Money Makeover" and start snowballing on your debt.
Reply:Try this. You probably won't be able to get a new credit card, so you will need to approach one of the banks whose card you already have. They will consolidate the cards. Then, have your salary paid directly into your credit card account. Yep, the whole lot. Then use your credit card for your everyday expenses. Rent, food, fuel etc. Withdraw a minimal amount cash for incidentals, and leave it at home. Don't take your credit card out with you. Don't be embarrassed to tell your friends of your predicament, as they could be in a similar situation. If you stick to this, your debt will reduce remarkably quickly. Be sure to destroy all other credit cards. Good luck, you have taken the first step.
What if I cannot pay credit card debt because I have medical expenses?
The debt is not huge but the monthly payments are more than I can afford. If I pay less, I might as well throw my money away as it does not reduce the debt but just keeps down a small amount of interest (not much). I still get fees, etc. I might as well pay nothing and use the money for necessary expenses. I am thinking to let them sue me as I feel I have a better chance in court than the company given my unavoidable medical expenses.
What if I cannot pay credit card debt because I have medical expenses?
Relax. Meet your Bank Manager and explain the situation to him. If he doesnt co-operate then just ignore the reminders you receive, i.e. if your medical expanses are really unavoidable and you have no way out. The Bank cannot sue you for a credit card transaction as there is no legal documentation at the time of the exchange, no stamp paper etc. just deny you had done the transaction, act innocent as though someone else has hacked your account. The bank will try to intimidate you, you've got to stand your ground. Credit Card transaction is a private transaction and not really legalised.
On the other hand you could avail a bank loan if you are in a good occupation which would take care of your medical expenses and also clear your credit card dues. This would give you peace of mind and besides in this fast world its all about taking from Peter to pay Paul. Yes you must know how to rotate your funds. But when you are in a better position make sure to pay up and live low until you can wriggle out of the present situation.
Reply:Have you applied for financial assistance at the hopital social services office? They helped my brother one time but you really need to have your story together when you get there.
Level with the credit card company's but expect them to reduce your credit limit etc...they may even close it so have a cash budget ready.
Reply:I do not think it is a good idea to let a creditor sue you for unpaid debt because you may loose the case even though you have unavoidable medical bills.
If you borrowed the money you are and had the debt before the medical bills than you are "legally" obligated and responsible for paying your payments on a monthly basis.
You will also have to pay court and attorney fees and these can be quite pricey.
Also in the long run your credit score will be directly affected if you do not pay your debt as well.
If I were you contact the creditors and explain your situation and ask if you can develop a payment plan to pay your debt back.
Also contact the company that you owe the medical bills and do the same.
You never know they might be able to assist you and you can keep your accounts current and in good standing.
Hope this info has helped you.
God Bless.....
Reply:Take a step back and re-read what you are saying!
You are willing to risk a "court judgment" which can lead up to potential garnishments on your wages because you have "unavoidable medical expenses"
Are you sure you are ready for how long this judgment can sit on your credit history ruining your financial stability for years to come?
Let me say this when dealing with creditors. Waiting to be sued is like waiting to be hit by a train . . . .never a good idea.
Call your creditors and GET REAL with them just like you have to GET REAL with crazy family members who won't do right.
First of all, your medical bills are SUBORDINATE to your credit card bills. You can make payment plans over 24-36 months with hospital bills, but you need to write the company VIA CERTIFIED LETTER AND LET THEM KNOW WHAT PAYMENT PLAN WILL WORK FOR YOU.
You act as if you have NO CONTROL over the situation.
Hell, if you know your financial state, just be firm and professional with each creditor and let them know what you can handle.
They will usually work with you. Please bear in mind, however, that the credit card company may not allow you to make additional charges on your credit card while you are under a payment plan or what they may also call "loss mitigation".
Reply:As sad as it is.....you had (have) a legal obligation to pay the debt back. Medical expenses, while understandable, do not absolve you from paying back the debt legally.
While most creditors will understand and work with you, it is not because they have to.....it's because they'd rather get at least something toward the debt as opposed to getting nothing.
If it is not a lot of money, you should call them and ask to restructure the payments....maybe they'll allow you to balloon it, meaning low payments for 2-3 years with a large payment due at the end when you've had time to get back on your feet financially. You can either pay the balloon or refinance it at better terms potentially.
But if they allow it....it is NOT an opportunity to go out and rack up more debt for other things.....always work on paying down the bills first...this will help your credit score.
If you are not a lawyer, then don't make your own legal decisions based on what you think. If you let the case go to court...the court will only look at one item.....do you owe the money or not? In court, there is no such thing as extenuating circumstances like medical expenses. You either owe the money or you don't. If the debt is good and you do owe the money, then you will certainly lose in court and then not only will you still owe the money but now a court has ordered you to repay it and if you don't, it will get that much worse for you.
Reply:My husband and I had a lot of credit card debt. We had 6 joint cards and I had 8 other cards in my name, alone. All were
close to the limits. We'd been making the minimum payments, on each. Then we had a car accident. The guy that hit us, had no insurance. We didn't have any uninsured motorist coverage
on our liability only policy. We had no medical insurance through work. The medical bills were huge. Then, I got pregnant and had some complications. More medical bills, etc. etc.
We wrote letters to all our creditors, with detailed information
on our financial situation, informing them that we simply could no longer afford to pay their bills and pay our necessary living expenses. Then, we stopped paying them.
We got a lot of letters and phone calls demanding payment.
The letters ended up in the trash can. The phone calls, we
either hung up on the collection agency or just didn't answer them.
The credit card companies may try to sue you, but the only thing they can collect from you is at worse a garnishment of your wages. The most they can garnish by law from your paycheck is a total of 20 percent (for more than one judgement) or 15 percent for 1 judgement. If you can show the court that you can't afford necessary living expenses if they garnish your paycheck, they
won't garnish it , in most cases.
All of the debts you don't pay will show up on your credit report,
but they will all fall off 7 - 10 years after they go on.
Bad credit isn't the end of the world, like some people like to claim it is.
My husband and I have bankruptcy, repos, and judgements on our reports with a lot of unpaid bills, but we were still able to get
financed on a car, house, cell phone etc. after we recovered and were able to return to work.
Reply:Call the credit card company and ask if they offer a "hardship" status program in which they reduce your monthly payments, stop fees and no APR for several months. Explain your medical situation. Most credit card companies have this or a similar plan to help you in paying off your debt without incurring additional fees up to a certain specified period of time.
What if I cannot pay credit card debt because I have medical expenses?
Relax. Meet your Bank Manager and explain the situation to him. If he doesnt co-operate then just ignore the reminders you receive, i.e. if your medical expanses are really unavoidable and you have no way out. The Bank cannot sue you for a credit card transaction as there is no legal documentation at the time of the exchange, no stamp paper etc. just deny you had done the transaction, act innocent as though someone else has hacked your account. The bank will try to intimidate you, you've got to stand your ground. Credit Card transaction is a private transaction and not really legalised.
On the other hand you could avail a bank loan if you are in a good occupation which would take care of your medical expenses and also clear your credit card dues. This would give you peace of mind and besides in this fast world its all about taking from Peter to pay Paul. Yes you must know how to rotate your funds. But when you are in a better position make sure to pay up and live low until you can wriggle out of the present situation.
Reply:Have you applied for financial assistance at the hopital social services office? They helped my brother one time but you really need to have your story together when you get there.
Level with the credit card company's but expect them to reduce your credit limit etc...they may even close it so have a cash budget ready.
Reply:I do not think it is a good idea to let a creditor sue you for unpaid debt because you may loose the case even though you have unavoidable medical bills.
If you borrowed the money you are and had the debt before the medical bills than you are "legally" obligated and responsible for paying your payments on a monthly basis.
You will also have to pay court and attorney fees and these can be quite pricey.
Also in the long run your credit score will be directly affected if you do not pay your debt as well.
If I were you contact the creditors and explain your situation and ask if you can develop a payment plan to pay your debt back.
Also contact the company that you owe the medical bills and do the same.
You never know they might be able to assist you and you can keep your accounts current and in good standing.
Hope this info has helped you.
God Bless.....
Reply:Take a step back and re-read what you are saying!
You are willing to risk a "court judgment" which can lead up to potential garnishments on your wages because you have "unavoidable medical expenses"
Are you sure you are ready for how long this judgment can sit on your credit history ruining your financial stability for years to come?
Let me say this when dealing with creditors. Waiting to be sued is like waiting to be hit by a train . . . .never a good idea.
Call your creditors and GET REAL with them just like you have to GET REAL with crazy family members who won't do right.
First of all, your medical bills are SUBORDINATE to your credit card bills. You can make payment plans over 24-36 months with hospital bills, but you need to write the company VIA CERTIFIED LETTER AND LET THEM KNOW WHAT PAYMENT PLAN WILL WORK FOR YOU.
You act as if you have NO CONTROL over the situation.
Hell, if you know your financial state, just be firm and professional with each creditor and let them know what you can handle.
They will usually work with you. Please bear in mind, however, that the credit card company may not allow you to make additional charges on your credit card while you are under a payment plan or what they may also call "loss mitigation".
Reply:As sad as it is.....you had (have) a legal obligation to pay the debt back. Medical expenses, while understandable, do not absolve you from paying back the debt legally.
While most creditors will understand and work with you, it is not because they have to.....it's because they'd rather get at least something toward the debt as opposed to getting nothing.
If it is not a lot of money, you should call them and ask to restructure the payments....maybe they'll allow you to balloon it, meaning low payments for 2-3 years with a large payment due at the end when you've had time to get back on your feet financially. You can either pay the balloon or refinance it at better terms potentially.
But if they allow it....it is NOT an opportunity to go out and rack up more debt for other things.....always work on paying down the bills first...this will help your credit score.
If you are not a lawyer, then don't make your own legal decisions based on what you think. If you let the case go to court...the court will only look at one item.....do you owe the money or not? In court, there is no such thing as extenuating circumstances like medical expenses. You either owe the money or you don't. If the debt is good and you do owe the money, then you will certainly lose in court and then not only will you still owe the money but now a court has ordered you to repay it and if you don't, it will get that much worse for you.
Reply:My husband and I had a lot of credit card debt. We had 6 joint cards and I had 8 other cards in my name, alone. All were
close to the limits. We'd been making the minimum payments, on each. Then we had a car accident. The guy that hit us, had no insurance. We didn't have any uninsured motorist coverage
on our liability only policy. We had no medical insurance through work. The medical bills were huge. Then, I got pregnant and had some complications. More medical bills, etc. etc.
We wrote letters to all our creditors, with detailed information
on our financial situation, informing them that we simply could no longer afford to pay their bills and pay our necessary living expenses. Then, we stopped paying them.
We got a lot of letters and phone calls demanding payment.
The letters ended up in the trash can. The phone calls, we
either hung up on the collection agency or just didn't answer them.
The credit card companies may try to sue you, but the only thing they can collect from you is at worse a garnishment of your wages. The most they can garnish by law from your paycheck is a total of 20 percent (for more than one judgement) or 15 percent for 1 judgement. If you can show the court that you can't afford necessary living expenses if they garnish your paycheck, they
won't garnish it , in most cases.
All of the debts you don't pay will show up on your credit report,
but they will all fall off 7 - 10 years after they go on.
Bad credit isn't the end of the world, like some people like to claim it is.
My husband and I have bankruptcy, repos, and judgements on our reports with a lot of unpaid bills, but we were still able to get
financed on a car, house, cell phone etc. after we recovered and were able to return to work.
Reply:Call the credit card company and ask if they offer a "hardship" status program in which they reduce your monthly payments, stop fees and no APR for several months. Explain your medical situation. Most credit card companies have this or a similar plan to help you in paying off your debt without incurring additional fees up to a certain specified period of time.
How do I go about consolidating my credit card debt?
I have a good credit score, last time I checked about 6 months ago it was about 720-730. Recently I have acquired a big credit card debt, about $9,000 on one credit card (with a limit of $10,000) and about $3,000 on another one (with a limit of $5,000) for many different personal reasons. After the whole spending money ordeal was over, I was left with all this debt on my credit cards. Since then, I have cut back on all unnecessary spending, besides the obvious things like food, gas, etc. I have never been late on payments and have never been over the credit limit. I Also try to pay an extra hundred bucks on top of the minimum payment due when I can. Are there any good ideas on how to consolidate these two credit card debts and help me out with all this? Thanks!
How do I go about consolidating my credit card debt?
First of all, consolidating the debts wont really change anything. In fact may adversely affect your credit score.
You need to do the following:
1. Evaluate you interest rates. If you are paying more than 12%, then think about finding a new credit source to consolidate. With your credit score you are probably getting teaser rate offers in the mail. (Beware of a teaser rate that rests after 6 months, as what you save wont be that much) Look for a credit card that will allow you transfer the balances for a long period at a low rate. Many cards offer rates of 5.99 or less for up to 2 years, but also check if there is a transfer fee. This can be as much as 4%)
2. If you find a good card and rate to transfer, then transfer as much as you can from the higher of the two rates you currently have. If you able to transfer all of 3000 debt, do not cancel that card. (Just make sure you dont use it) Having a zero balance and available credit actually improves your credit score.
3. Make a plan. Figure out how long it will take to pay off each card by taking the minimum payment amount (principal only, not interest) and divide into the amount owed. Lets say on the 10,000 card the principal payment is $277, that means it will take 3 years to pay off that card.
4. If both cards have the same rate of interest, but different pyoff dates, put all your extra monthly payment towards the card with the highest % to the credit line (in this case the 9,000 card as that is at 90% of your limit, vs the 3,000 which is at 60% of your limit). The lower the % owed the better for your credit score.
Finally, do not use the cards. Pay cash for everything. (This is very important if you end up consolidating to a lower interest card. Those cards will apply all of your payments to the low interest balance first, and start accruing a high rate on the new purchases. that will go on until the original amount is paid off).
Reply:Try the DiscoverCard. They sometimes offer a 0% interest forever as long as you make the minimum payment and two purchases per month. They have been very good about not changing the terms of this agreement. For my two charges each month I purchase two yogurts or two gas purchases at about 50 cents each. Remember that your minimum payment will be about 2% of the total balance.
And once you have transferred a balance to a 0% balance card, you DO NOT want to use the card unless you have to. The reason being that any payments are applied to the lower APR balance first. So if you transfer to a 0% and then charge an additional $50, the $50 will accrue interest until the 0% balance is paid off.
Reply:your best bet would be a personal loan through your bank or if you own a home taking out a home equity line. Either of these would allow you to pay off those high balances and have a lower interest rate, making your overal monthly payment lower.
Reply:First, let me give my standard warning about consolidation loans.
Many people have fallen into this trap. They take out a loan to pay off their credit cards....then turn around and run up the credit cards again. Now they are in twice the amount of debt, and end up filing for bankruptcy. I have seen this happen many times.
That said...
If you have a home get a home equity line of credit. The interest rate is low, and it's tax deductible.
You can get a personal loan, but trying to get a $12k loan with no security may be difficult.
I'm not sure you will find a credit card with a $10k limit either, but if you can find one with a great interest rate, do that.
For now, pay off that card with the small balance as quickly as possible, then pay off the large debt.
Also don't be afraid to call the credit card company up and ask them to lower the rate. Sometimes you will catch them on a good day, when they are acting human.
Reply:I understand what you are going through, but I did it a bit different than you. I also got into credit card debt, but was able to pay it off by simply transferring the higher interest card balances to ones with 0 introductory for at least 12 months and a low fixed rate afterwards (8 % instead of the 20 something bank of america gives you!) So you can pay it off faster. Frankly, I didn't want to get into loans (imho some are way too high interest) and with the newer credit card I only ended up paying about 167 dollars of interest on a 4,200 dollar debt. The only thing you should make sure is DO NOT be late on a payment..doing so will raise your interests rate to a ridiculous rate.
Reply:Go to your bank and get a small loan for as much as you need and then pay off the two credit card companies...and it sounds like you have all your ducks in order concerning any spending habits, etc. If you have collateral, it would help for the bank purposes. Good luck...(If that doesn't work, maybe an arrangement with a family member for a loan (get it done by a lawyer) would be an option.
Reply:Bad credit debt consolidation provides many benefits to the borrower like:
Unification of all debts into a low interest rate loan
Saving money that is paid as interest
Hassle-free processing
No harassment by lenders
Improvement of bad credit history
Bad credit debt consolidation can be obtained in two forms, secured and unsecured. Something many of us seek when we’re unable to get past all the credit debt which as piled up. Indeed, as the national credit debt burden grows, many creditors are pleased to work with people interested in resolving their debts.
for information on current lenders you can check out:
http://www.insightempire.com/badcredit.h...
Reply:My husband and I use a company called The Freedom Point. What they do is work with your creditors to lower your interest rates. You can not spend anything on either account while it is part of the program. It does NOT negativly affect your credit score. We pay TFP our set payment each month, and they distribute it to our creditors. You're doing better than us, our debt on the plan mounts over 30,000.... but we're on track to be debt free on less than 4 years. They can most likely set you up with a plan to get you out of debt quicker than that, it just depends on what you are able to afford to pay. They're available online.... or you can call them. Good luck hun!
Reply:you get a credit card that will consolidate all you others into one payment. they will pay off all the other cardds and close them so that you will only have one payment to make on the new card.mose major banks offer consolidations. check out some that says 0% intrest for a year like chase. this should able you to pay it off sooner.
Hope this Helps.
Reply:do a transfer balance on a new card at 0% for a year or so paying what your minimums are on cards with a higher rate. this will get them paid off faster, if you have good credit...they will give you a longer 0% transfer period
btw..chase sucks. their customer service is bad. phone time is like 15 minute wait
Reply:The Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% - Payment History
* 30% - Credit to Debt Ratio
* 15% - Credit History
* 10% - New Credit
* 10% - Credit Types in Use
The best is a smal personal loan consolidation. I found interesting information about your answer %26amp; options here. Goodhttp://all-debt-consolidation-loan.blogs... luck!
Reply:Transfer the debt to another card that gives you 0% APR for 12 months. The transfer itself will probably cost you 3% of the debt amount.
How do I go about consolidating my credit card debt?
First of all, consolidating the debts wont really change anything. In fact may adversely affect your credit score.
You need to do the following:
1. Evaluate you interest rates. If you are paying more than 12%, then think about finding a new credit source to consolidate. With your credit score you are probably getting teaser rate offers in the mail. (Beware of a teaser rate that rests after 6 months, as what you save wont be that much) Look for a credit card that will allow you transfer the balances for a long period at a low rate. Many cards offer rates of 5.99 or less for up to 2 years, but also check if there is a transfer fee. This can be as much as 4%)
2. If you find a good card and rate to transfer, then transfer as much as you can from the higher of the two rates you currently have. If you able to transfer all of 3000 debt, do not cancel that card. (Just make sure you dont use it) Having a zero balance and available credit actually improves your credit score.
3. Make a plan. Figure out how long it will take to pay off each card by taking the minimum payment amount (principal only, not interest) and divide into the amount owed. Lets say on the 10,000 card the principal payment is $277, that means it will take 3 years to pay off that card.
4. If both cards have the same rate of interest, but different pyoff dates, put all your extra monthly payment towards the card with the highest % to the credit line (in this case the 9,000 card as that is at 90% of your limit, vs the 3,000 which is at 60% of your limit). The lower the % owed the better for your credit score.
Finally, do not use the cards. Pay cash for everything. (This is very important if you end up consolidating to a lower interest card. Those cards will apply all of your payments to the low interest balance first, and start accruing a high rate on the new purchases. that will go on until the original amount is paid off).
Reply:Try the DiscoverCard. They sometimes offer a 0% interest forever as long as you make the minimum payment and two purchases per month. They have been very good about not changing the terms of this agreement. For my two charges each month I purchase two yogurts or two gas purchases at about 50 cents each. Remember that your minimum payment will be about 2% of the total balance.
And once you have transferred a balance to a 0% balance card, you DO NOT want to use the card unless you have to. The reason being that any payments are applied to the lower APR balance first. So if you transfer to a 0% and then charge an additional $50, the $50 will accrue interest until the 0% balance is paid off.
Reply:your best bet would be a personal loan through your bank or if you own a home taking out a home equity line. Either of these would allow you to pay off those high balances and have a lower interest rate, making your overal monthly payment lower.
Reply:First, let me give my standard warning about consolidation loans.
Many people have fallen into this trap. They take out a loan to pay off their credit cards....then turn around and run up the credit cards again. Now they are in twice the amount of debt, and end up filing for bankruptcy. I have seen this happen many times.
That said...
If you have a home get a home equity line of credit. The interest rate is low, and it's tax deductible.
You can get a personal loan, but trying to get a $12k loan with no security may be difficult.
I'm not sure you will find a credit card with a $10k limit either, but if you can find one with a great interest rate, do that.
For now, pay off that card with the small balance as quickly as possible, then pay off the large debt.
Also don't be afraid to call the credit card company up and ask them to lower the rate. Sometimes you will catch them on a good day, when they are acting human.
Reply:I understand what you are going through, but I did it a bit different than you. I also got into credit card debt, but was able to pay it off by simply transferring the higher interest card balances to ones with 0 introductory for at least 12 months and a low fixed rate afterwards (8 % instead of the 20 something bank of america gives you!) So you can pay it off faster. Frankly, I didn't want to get into loans (imho some are way too high interest) and with the newer credit card I only ended up paying about 167 dollars of interest on a 4,200 dollar debt. The only thing you should make sure is DO NOT be late on a payment..doing so will raise your interests rate to a ridiculous rate.
Reply:Go to your bank and get a small loan for as much as you need and then pay off the two credit card companies...and it sounds like you have all your ducks in order concerning any spending habits, etc. If you have collateral, it would help for the bank purposes. Good luck...(If that doesn't work, maybe an arrangement with a family member for a loan (get it done by a lawyer) would be an option.
Reply:Bad credit debt consolidation provides many benefits to the borrower like:
Unification of all debts into a low interest rate loan
Saving money that is paid as interest
Hassle-free processing
No harassment by lenders
Improvement of bad credit history
Bad credit debt consolidation can be obtained in two forms, secured and unsecured. Something many of us seek when we’re unable to get past all the credit debt which as piled up. Indeed, as the national credit debt burden grows, many creditors are pleased to work with people interested in resolving their debts.
for information on current lenders you can check out:
http://www.insightempire.com/badcredit.h...
Reply:My husband and I use a company called The Freedom Point. What they do is work with your creditors to lower your interest rates. You can not spend anything on either account while it is part of the program. It does NOT negativly affect your credit score. We pay TFP our set payment each month, and they distribute it to our creditors. You're doing better than us, our debt on the plan mounts over 30,000.... but we're on track to be debt free on less than 4 years. They can most likely set you up with a plan to get you out of debt quicker than that, it just depends on what you are able to afford to pay. They're available online.... or you can call them. Good luck hun!
Reply:you get a credit card that will consolidate all you others into one payment. they will pay off all the other cardds and close them so that you will only have one payment to make on the new card.mose major banks offer consolidations. check out some that says 0% intrest for a year like chase. this should able you to pay it off sooner.
Hope this Helps.
Reply:do a transfer balance on a new card at 0% for a year or so paying what your minimums are on cards with a higher rate. this will get them paid off faster, if you have good credit...they will give you a longer 0% transfer period
btw..chase sucks. their customer service is bad. phone time is like 15 minute wait
Reply:The Credit Score (also known as your MyFico score) is calculated with the following breakdown:
* 35% - Payment History
* 30% - Credit to Debt Ratio
* 15% - Credit History
* 10% - New Credit
* 10% - Credit Types in Use
The best is a smal personal loan consolidation. I found interesting information about your answer %26amp; options here. Goodhttp://all-debt-consolidation-loan.blogs... luck!
Reply:Transfer the debt to another card that gives you 0% APR for 12 months. The transfer itself will probably cost you 3% of the debt amount.
Will debt settlement ruin my chances at getting a new job?
I am going to go through a debt settlement with my significant other as an alternative to bankruptcy. We're both young, and planning on advancing in our careers. Would a debt settlement work against our odds of landing the perfect job, even if we are the most qualified??
Will debt settlement ruin my chances at getting a new job?
Possibly, but less so than a bankruptcy would. Many companies now check credit records. Various HR studies have shown that on average, people that maintain their credit the best also tend to be the best employees (for various reasons- they have less drama at home, they are more organized, they can manage resources better, or whatever). So if it negatively impacts your credit, it may keep you from getting a job, at least until it washes off your record in about 7 years time. But like I said, I'd far rather have debt settlement on there than a bankruptcy.
Reply:Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://starturl.com/tyjxb
Reply:Government and reputable higher paying jobs require credit checks, and a settlement is going to severely hurt your score. If you're young, and plan on ever buying a house or getting a car, you may want to do everything you can to prevent bankruptcy/settling. Get a second or third job if you have to in order to pay your debts. You'll regret it later if you don't.
Also, some employers consider credit scores to determine the "most qualified", as it shows dependability and whether you can be trusted.
Reply:Debt settlement companies are really controversial. I would go into credit counseling, or at least contact National Foundation for credit counseling nfcc.org debt settlement very controversial will tell you to stop paying your debts, and all your accounts will go bad, they generally want you to put all of your accounts in their program.
Many states have outlawed them, most recently state of New York. There are but a few that nfcc.org will reccomend, if they ask for any up front fees "Fist is enrollment fee $399, and next three payments go toward your set up fees," usually a percentage of your debt, around $300 each, will tell you that you have the right to arbitration. Look at your original agreement from credit card companies yes, you have right to arbitration, under the Federal Arbitration Act, and a retired Federal judge, or attorney of 10 years experience. Also they are doing something you can do yourself, don't need them to do it for you. The government is all over these companies, many go out of business. Savy collection agencies let your "debt settlement savings account" build up (by the way there is usually a monthly fee they charge to "debit" your cecking account to put money in your debt settlement account$39-50 bucs , or, so) then boom sue, and lien your debt settlement account. If you get sued, they will not return your calls, relying on your not understanding the program, and contacting the attny eventually - then they will tell you , you violated the program, by communicating w/the creditor, or representative, and tell you cancellation fees. Think about it you live in lets say Colorado, how can a debt settlement company in Maryland lets say protect you from suit.
Settlements are easy, do it yourself, just get the letter from whomever owns the debt if already charged off, before remitting that 35% to 50% is being accepted as pmt in full, and remit, once they send that letter, and specify in how many payments. Then if on the bank level still they will report the settlement, but collection agencies rarely do, you'll have to get letter from them acct settled, and submit yourself to cr bureaus. Settle high, at 4month to 5month delinquencey period, w/the agreement of a deletion in writing again, and creditor will delete any record of acct at all.
Also w/debt settle they will tell you settle for 60% of what you owe, but is that really true if you throw in the upfront fees, and the part they don't tell you..........if they do settle, they get 1/3 of settlement amt. Case in point- debt frozen at $10,000 - 400 enrollment fee- 3 300 dollar "set up fees" = $1,300- lets say they settle your 10 grand debt for 6 thou- 6 thou layout to settle plus their 1/3 = 2,000 // 6 +2 =8grand + setup and and enrollment we are up to 9,300 and the monthly administrative fees.......ruining your credit in the meantime, and taking a chance of getting sued.........you know why the states are starting to close them down.......and completly unregulated business. Go to the consumer sites fraudwatchers, ripoff report......man do your home work, these companies have ruined peoples lives......very few only if take any fee after settlement and no upfront fees, will be recommended by nfcc.org - Note also settlements are subject to 1099 -i.e. taxes- depends on bracket you are in. Sometimes they will tell you, sometimes not,,,,,,, Be careful , you are treading in dangerous waters. Like I said, some of these companies have ruined peoples lives literally, they take advantage of the elderly, the ill, and the uneducated.
Genealogy
Will debt settlement ruin my chances at getting a new job?
Possibly, but less so than a bankruptcy would. Many companies now check credit records. Various HR studies have shown that on average, people that maintain their credit the best also tend to be the best employees (for various reasons- they have less drama at home, they are more organized, they can manage resources better, or whatever). So if it negatively impacts your credit, it may keep you from getting a job, at least until it washes off your record in about 7 years time. But like I said, I'd far rather have debt settlement on there than a bankruptcy.
Reply:Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://starturl.com/tyjxb
Reply:Government and reputable higher paying jobs require credit checks, and a settlement is going to severely hurt your score. If you're young, and plan on ever buying a house or getting a car, you may want to do everything you can to prevent bankruptcy/settling. Get a second or third job if you have to in order to pay your debts. You'll regret it later if you don't.
Also, some employers consider credit scores to determine the "most qualified", as it shows dependability and whether you can be trusted.
Reply:Debt settlement companies are really controversial. I would go into credit counseling, or at least contact National Foundation for credit counseling nfcc.org debt settlement very controversial will tell you to stop paying your debts, and all your accounts will go bad, they generally want you to put all of your accounts in their program.
Many states have outlawed them, most recently state of New York. There are but a few that nfcc.org will reccomend, if they ask for any up front fees "Fist is enrollment fee $399, and next three payments go toward your set up fees," usually a percentage of your debt, around $300 each, will tell you that you have the right to arbitration. Look at your original agreement from credit card companies yes, you have right to arbitration, under the Federal Arbitration Act, and a retired Federal judge, or attorney of 10 years experience. Also they are doing something you can do yourself, don't need them to do it for you. The government is all over these companies, many go out of business. Savy collection agencies let your "debt settlement savings account" build up (by the way there is usually a monthly fee they charge to "debit" your cecking account to put money in your debt settlement account$39-50 bucs , or, so) then boom sue, and lien your debt settlement account. If you get sued, they will not return your calls, relying on your not understanding the program, and contacting the attny eventually - then they will tell you , you violated the program, by communicating w/the creditor, or representative, and tell you cancellation fees. Think about it you live in lets say Colorado, how can a debt settlement company in Maryland lets say protect you from suit.
Settlements are easy, do it yourself, just get the letter from whomever owns the debt if already charged off, before remitting that 35% to 50% is being accepted as pmt in full, and remit, once they send that letter, and specify in how many payments. Then if on the bank level still they will report the settlement, but collection agencies rarely do, you'll have to get letter from them acct settled, and submit yourself to cr bureaus. Settle high, at 4month to 5month delinquencey period, w/the agreement of a deletion in writing again, and creditor will delete any record of acct at all.
Also w/debt settle they will tell you settle for 60% of what you owe, but is that really true if you throw in the upfront fees, and the part they don't tell you..........if they do settle, they get 1/3 of settlement amt. Case in point- debt frozen at $10,000 - 400 enrollment fee- 3 300 dollar "set up fees" = $1,300- lets say they settle your 10 grand debt for 6 thou- 6 thou layout to settle plus their 1/3 = 2,000 // 6 +2 =8grand + setup and and enrollment we are up to 9,300 and the monthly administrative fees.......ruining your credit in the meantime, and taking a chance of getting sued.........you know why the states are starting to close them down.......and completly unregulated business. Go to the consumer sites fraudwatchers, ripoff report......man do your home work, these companies have ruined peoples lives......very few only if take any fee after settlement and no upfront fees, will be recommended by nfcc.org - Note also settlements are subject to 1099 -i.e. taxes- depends on bracket you are in. Sometimes they will tell you, sometimes not,,,,,,, Be careful , you are treading in dangerous waters. Like I said, some of these companies have ruined peoples lives literally, they take advantage of the elderly, the ill, and the uneducated.
Genealogy
What is the greatest power posessed by debt collectors to collect unpaid debts?
I have some outstanding debt from years ago to a school and some unpaid student loans. I intend to pay them in the near future, but until then what can they ultimately do to collect? Can they reposses something I own?
What is the greatest power posessed by debt collectors to collect unpaid debts?
They will have to go through a lawyer, then court. After that, they can garnish your wages.
Reply:They can get a judgement against you in court.
Reply:The Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. The first thing a debt collector will do is calling you. If you do not want to receive those calls you can write a letter to the collector and he will have to stop. The debt collector can not tell anyone about your debt, or threaten that you will be arrested. He/she can not come to your house and take your property away.
However, there is always the possibility to get your salary garnished. That means that your creditors have the right to take some of your money to recover the sum that is owed. The good news you are protected by Consumer Credit Protection Act that will not allow the creditors to take all of your money.
of course, this situation will tremendeously affect your credit score but there are always ways to improve it. What were the reasons why you could not pay off your debt? Understanding the core of the problem will help you avoid it in the future. As soon as you get over your default case start working on improving your credit score. You can choose a credit card for bad credit. http://www.requestcredit.com/bad-credit-... This will help you to raise your credit score.
Reply:Debt collectors can report to the credit bureaus and they can sue you.
If your debts are past your state's statute of limitation, debt collectors have no legal way to collect from you (That does not include your student loans, however).
After they get a judgment against you they can garnish your wages (in some states) and put liens on your bank accounts, your home, and other assets.
To check your state's statute of limitation check the link below:
http://creditinfocenter.com/rebuild/stat...
Reply:Hi
Debt collectors have the power of persuasion, and some legal power behind them as well. it depends at what stage of recovery your debt is. For example, if the court has already been asked to state an injunction against you, which has probably happened, debt collectors may come and "list" your valuables in exchange for the outstanding debt. They usually give you 7-14 days to pay the full amount, or risk forfeiting all on the "list".
Bear in mind, the debt you owed has probably grown significantly due to legal fees and other costs. Yes, failure to pay against a demand for payment could result in you losing your possessions.
If you are seriously stuck, then go see a consumer support organisation or a citizen's advisary service. They might re-negoriate your debt over a longer period at affordable payments. Whatever you do, do NOT do nothing. That way, you remain guilty before the law and run very high risks of tainting your name and losing stuff.
Good luck
What is the greatest power posessed by debt collectors to collect unpaid debts?
They will have to go through a lawyer, then court. After that, they can garnish your wages.
Reply:They can get a judgement against you in court.
Reply:The Fair Debt Collection Practices Act requires that debt collectors treat you fairly and prohibits certain methods of debt collection. The first thing a debt collector will do is calling you. If you do not want to receive those calls you can write a letter to the collector and he will have to stop. The debt collector can not tell anyone about your debt, or threaten that you will be arrested. He/she can not come to your house and take your property away.
However, there is always the possibility to get your salary garnished. That means that your creditors have the right to take some of your money to recover the sum that is owed. The good news you are protected by Consumer Credit Protection Act that will not allow the creditors to take all of your money.
of course, this situation will tremendeously affect your credit score but there are always ways to improve it. What were the reasons why you could not pay off your debt? Understanding the core of the problem will help you avoid it in the future. As soon as you get over your default case start working on improving your credit score. You can choose a credit card for bad credit. http://www.requestcredit.com/bad-credit-... This will help you to raise your credit score.
Reply:Debt collectors can report to the credit bureaus and they can sue you.
If your debts are past your state's statute of limitation, debt collectors have no legal way to collect from you (That does not include your student loans, however).
After they get a judgment against you they can garnish your wages (in some states) and put liens on your bank accounts, your home, and other assets.
To check your state's statute of limitation check the link below:
http://creditinfocenter.com/rebuild/stat...
Reply:Hi
Debt collectors have the power of persuasion, and some legal power behind them as well. it depends at what stage of recovery your debt is. For example, if the court has already been asked to state an injunction against you, which has probably happened, debt collectors may come and "list" your valuables in exchange for the outstanding debt. They usually give you 7-14 days to pay the full amount, or risk forfeiting all on the "list".
Bear in mind, the debt you owed has probably grown significantly due to legal fees and other costs. Yes, failure to pay against a demand for payment could result in you losing your possessions.
If you are seriously stuck, then go see a consumer support organisation or a citizen's advisary service. They might re-negoriate your debt over a longer period at affordable payments. Whatever you do, do NOT do nothing. That way, you remain guilty before the law and run very high risks of tainting your name and losing stuff.
Good luck
What if the same debt is being reported by more than one company?
Is it legal for the same debt to be reporting on your credit report by more than one company. Such as if it was given to a collection agency who then gave it to another?
What if the same debt is being reported by more than one company?
No, not legal if all showing open and delinquent. Once the debt sells they should show it as a chargeoff.
Write each of the companies and ask for proof of debt. Once they can't give it to you write them back and demand they remove it from your credit report
Reply:Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It's legitimate.I came across this company on NBC News.Check it out here:
http://tighturl.com/683
What if the same debt is being reported by more than one company?
No, not legal if all showing open and delinquent. Once the debt sells they should show it as a chargeoff.
Write each of the companies and ask for proof of debt. Once they can't give it to you write them back and demand they remove it from your credit report
Reply:Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It's legitimate.I came across this company on NBC News.Check it out here:
http://tighturl.com/683
How do credit card debt councilors work with credit card issuers?
I've seen on t.v. how credit card debt councilors work with banks when people owe a lot of money on their credit cards. They say they can not only reduce the amount owed but also get your monthly payments down to where they are manageable. How do they do this, are there any consequences such as a reduction of credit score, and is it effective (do they really do this or is it a scam)? Also, how much do they charge? Thanks.
How do credit card debt councilors work with credit card issuers?
Unfortunately the ones who advertise on television are usually in it just for the money. Beware of any organization that requires an up-front fee.
If you belong to a credit union or there's one that serves your office, they will be able to put you in touch with a reliable organization.
Here's a booklet that will help you:
http://www.consumerlaw.org/initiatives/c...
Reply:HUGE ramifications of using a debt consolidation company. These companies are viewed the same as bankruptcies are viewed on your credit report. This tells the creditor that you are not able to manage your credit.
Debt consolidation companies cannot guarantee anything. They work with the creditors and sometimes arrange for a partial repayment. How partial? That's entirely up to the creditor - NOT the debt consolidator.
Is it worth it to ruin your credit versus just fixing the problem? NOT paying your bill is EXACTLY the same as stealing. You may not go to jail, but you definitely will be penalized for it.
Also ... remember ... employers are now regularly pulling your credit report to get a better look at your character. Bankruptcy? Debt Consolidation? == You can't handle your life.
Reply:Hey I know one company who is providing credit card Counseling services at very cheap rates. There charges are very nominal, and service is very professioanal and excellent, I have done my counseling from this site: http://www.debtreduction123.net they have very smart and telantive people at their place, always thinks in your favor. I was really satisfied with their services. You try it out....
How do credit card debt councilors work with credit card issuers?
Unfortunately the ones who advertise on television are usually in it just for the money. Beware of any organization that requires an up-front fee.
If you belong to a credit union or there's one that serves your office, they will be able to put you in touch with a reliable organization.
Here's a booklet that will help you:
http://www.consumerlaw.org/initiatives/c...
Reply:HUGE ramifications of using a debt consolidation company. These companies are viewed the same as bankruptcies are viewed on your credit report. This tells the creditor that you are not able to manage your credit.
Debt consolidation companies cannot guarantee anything. They work with the creditors and sometimes arrange for a partial repayment. How partial? That's entirely up to the creditor - NOT the debt consolidator.
Is it worth it to ruin your credit versus just fixing the problem? NOT paying your bill is EXACTLY the same as stealing. You may not go to jail, but you definitely will be penalized for it.
Also ... remember ... employers are now regularly pulling your credit report to get a better look at your character. Bankruptcy? Debt Consolidation? == You can't handle your life.
Reply:Hey I know one company who is providing credit card Counseling services at very cheap rates. There charges are very nominal, and service is very professioanal and excellent, I have done my counseling from this site: http://www.debtreduction123.net they have very smart and telantive people at their place, always thinks in your favor. I was really satisfied with their services. You try it out....
How long does a collection agency have to legitimately collect a debt?
is there a specific statute of limitations on debt collecting? And if this time limit is up and a collection agency is calling and/or sending letters , how do you go about stopping this and getting it removed from your credit report? I live in Oregon.
How long does a collection agency have to legitimately collect a debt?
Yes, they have to follow 2 sets of SOL. One is your states SOL which is the time frame they have to take the claim to court, the other is the time frame for reporting to the CRA's
If the deb is beyond your state SOL, they can still demand payment, but can take no legal action. You would have to send them a certified letter stating the debt is beyond your states SOL and to cease communications.
Oregon's SOL is 6 years on all debts. but the collection agency must report the TRUE date of delinquency (the date the SOL clock starts running) as defined by the FDCPA to whit:
As of December 29, 1997 the reporting period runs 7 ½ years (7 years plus 180 days) from the date (month and year) of the last delinquency (known as "last missed payment:).
So, regardless of how long a creditor waits to charge off, sell or transfer a debt, they must report the true and correct "delinquent or last missed payment" date (month and year) that preceded the creditor's action.
Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]
Remember this, if you send a payment in, then the clock resets the date for the SOL.
Some creditors will re-date a debt to keep it on ones credit report, this is ILLEGAL as per 15USC1681s-2] § 623. Responsibilities of furnishers of information to consumer reporting agencies
Here are some links to help you, they are from the FTC and none of those sites that provide info all the while promoting their pay for services.
http://www.ftc.gov/bcp/conline/pubs/aler...
Information on time barred debts.
http://www.ftc.gov/gettingcredit/
What you need to know about your credit.
http://www.ftc.gov/bcp/conline/pubs/cred...
Credit and your consumer rights.
I invite you to join the following Yahoo group "DontGetRippedOff" dedicated to helping those in financial trouble, Here you will find information to help you with debt collection agencies.
http://finance.groups.yahoo.com/group/do...
LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.
Reply:Everyone in debt should check the statute of limitation on each balance. There are some unscrupulous collectors who use old accounts (that you might not owe anymore), and keep the money.
It varies with each account, so check each one separately.
The laws might vary in each state. Find that out first.
Reply:Hi there!
1. A collection agency can collect a debt that it owns for as long as they want. The important question is, has the debt passed the statute of limitations? Since this is often a legal question open to interpretation, it is often more than just saying that the statute of limitations (SOL) has passed. The reason I say this is because as a defense in court, the SOL is called an 'affirmative defense'. This means that in order for the defense to be valid, you must tell the court that you are using the defense (thus, affirming it). Think of it like being in a sword fight. The SOL is like your shield - unless you raise it up to protect you against the oncoming sword, it's going to impale you. That's how the SOL defense works.
2. You should check the Oregon statutes on debt collecting. Most states require that debt collectors be registered with some kind of permit or licenses. There are also rules that these collectors must follow. Does Oregon statues specifically prohibit debt collectors from trying to collect on debts that they know are time barred (that is, have passed the SOL)?
3. In your state, the SOL for open accounts and written accounts is the same, 6 years, so the argument about whether credit cards are open or written accounts is sort of moot. The SOL starts from the date of your last payment. Do you have the canceled check showing when you made your last payment? If you do, then you're in a good position. Also, you credit report, if the original debt is still there, will often list the date of your last payment too. If you know for sure the date of your last payment, send a debt validation letter (there's one here: http://overcomingyourdebt.blogspot.com) and tell them that the SOL has passed. Also ask them in your letter to stop calling you at work and/or at home. You might want to read up on the Fair Debt Collection Practice Act (FDCPA) -- a link to it is on that site that I mentioned before.
4. If this debt has been bought and sold dozens of times, it's possible that this collection agency doesn't know the exact age of the debt. 'Reminding them' with your letter would be a prudent move. Once they realize that it has passed and that you know about your legal rights, chances are they will probably give up on collecting.
5. Just because the SOL has expired, it doesn't mean you can't be sued, so if you do receive papers from the court, don't just assume you're protected by the SOL. It's not automatic. Remember, it's an affirmative defense which you must raise. Failure to raise it means that you will lose it.
6. Collection agencies have a right to put things on your credit report, and you can't get it removed simply because the SOL has tolled. If a debt is not validated in the first 30 days that you were contacted by this collection agency, they have the right to assume it is valid (validity does not mean liability - just because you don't request validation doesn't mean that you are liable). What you can do is dispute it with the credit report agencies. Best way to do this is online and to simply request that they validate the information. If it is over six years old, I bet that the collection agency doesn't have the necessary proof to link you to the debt. If it can't be verified accurately, it will be deleted. Collection agencies will often voluntarily delete things that they have no legal right to collect. It's possible that once you have informed them that the SOL has passed, they will delete the information -- that has happened to me in the past.
It's important that as this debt is resold and bought, that each time a new collector contacts you, make sure you send a debt validation letter. This puts a stop to collecting and technically should prevent them from adding negative items to your credit report.
EDIT: I forgot one important point...promises to pay and/or making a single payment, even for a tiny amount, will cause the statute of limitations to reset. Also, if you've left the state and returned, the time that you were gone probably causes the SOL to stop. So if you lived in Oregon for three years, and then moved to Texas for 3 and are not back in Oregon, the SOL would not have tolled. Not sure if that applies in your case, but I just thought it would be worth mentioning.
Good luck!
Reply:Try this site for specific information.
Much depends on what type of debt you have.
http://www.oregonlawhelp.org/OR/StateCha...
lilac
How long does a collection agency have to legitimately collect a debt?
Yes, they have to follow 2 sets of SOL. One is your states SOL which is the time frame they have to take the claim to court, the other is the time frame for reporting to the CRA's
If the deb is beyond your state SOL, they can still demand payment, but can take no legal action. You would have to send them a certified letter stating the debt is beyond your states SOL and to cease communications.
Oregon's SOL is 6 years on all debts. but the collection agency must report the TRUE date of delinquency (the date the SOL clock starts running) as defined by the FDCPA to whit:
As of December 29, 1997 the reporting period runs 7 ½ years (7 years plus 180 days) from the date (month and year) of the last delinquency (known as "last missed payment:).
So, regardless of how long a creditor waits to charge off, sell or transfer a debt, they must report the true and correct "delinquent or last missed payment" date (month and year) that preceded the creditor's action.
Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]
Remember this, if you send a payment in, then the clock resets the date for the SOL.
Some creditors will re-date a debt to keep it on ones credit report, this is ILLEGAL as per 15USC1681s-2] § 623. Responsibilities of furnishers of information to consumer reporting agencies
Here are some links to help you, they are from the FTC and none of those sites that provide info all the while promoting their pay for services.
http://www.ftc.gov/bcp/conline/pubs/aler...
Information on time barred debts.
http://www.ftc.gov/gettingcredit/
What you need to know about your credit.
http://www.ftc.gov/bcp/conline/pubs/cred...
Credit and your consumer rights.
I invite you to join the following Yahoo group "DontGetRippedOff" dedicated to helping those in financial trouble, Here you will find information to help you with debt collection agencies.
http://finance.groups.yahoo.com/group/do...
LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.
Reply:Everyone in debt should check the statute of limitation on each balance. There are some unscrupulous collectors who use old accounts (that you might not owe anymore), and keep the money.
It varies with each account, so check each one separately.
The laws might vary in each state. Find that out first.
Reply:Hi there!
1. A collection agency can collect a debt that it owns for as long as they want. The important question is, has the debt passed the statute of limitations? Since this is often a legal question open to interpretation, it is often more than just saying that the statute of limitations (SOL) has passed. The reason I say this is because as a defense in court, the SOL is called an 'affirmative defense'. This means that in order for the defense to be valid, you must tell the court that you are using the defense (thus, affirming it). Think of it like being in a sword fight. The SOL is like your shield - unless you raise it up to protect you against the oncoming sword, it's going to impale you. That's how the SOL defense works.
2. You should check the Oregon statutes on debt collecting. Most states require that debt collectors be registered with some kind of permit or licenses. There are also rules that these collectors must follow. Does Oregon statues specifically prohibit debt collectors from trying to collect on debts that they know are time barred (that is, have passed the SOL)?
3. In your state, the SOL for open accounts and written accounts is the same, 6 years, so the argument about whether credit cards are open or written accounts is sort of moot. The SOL starts from the date of your last payment. Do you have the canceled check showing when you made your last payment? If you do, then you're in a good position. Also, you credit report, if the original debt is still there, will often list the date of your last payment too. If you know for sure the date of your last payment, send a debt validation letter (there's one here: http://overcomingyourdebt.blogspot.com) and tell them that the SOL has passed. Also ask them in your letter to stop calling you at work and/or at home. You might want to read up on the Fair Debt Collection Practice Act (FDCPA) -- a link to it is on that site that I mentioned before.
4. If this debt has been bought and sold dozens of times, it's possible that this collection agency doesn't know the exact age of the debt. 'Reminding them' with your letter would be a prudent move. Once they realize that it has passed and that you know about your legal rights, chances are they will probably give up on collecting.
5. Just because the SOL has expired, it doesn't mean you can't be sued, so if you do receive papers from the court, don't just assume you're protected by the SOL. It's not automatic. Remember, it's an affirmative defense which you must raise. Failure to raise it means that you will lose it.
6. Collection agencies have a right to put things on your credit report, and you can't get it removed simply because the SOL has tolled. If a debt is not validated in the first 30 days that you were contacted by this collection agency, they have the right to assume it is valid (validity does not mean liability - just because you don't request validation doesn't mean that you are liable). What you can do is dispute it with the credit report agencies. Best way to do this is online and to simply request that they validate the information. If it is over six years old, I bet that the collection agency doesn't have the necessary proof to link you to the debt. If it can't be verified accurately, it will be deleted. Collection agencies will often voluntarily delete things that they have no legal right to collect. It's possible that once you have informed them that the SOL has passed, they will delete the information -- that has happened to me in the past.
It's important that as this debt is resold and bought, that each time a new collector contacts you, make sure you send a debt validation letter. This puts a stop to collecting and technically should prevent them from adding negative items to your credit report.
EDIT: I forgot one important point...promises to pay and/or making a single payment, even for a tiny amount, will cause the statute of limitations to reset. Also, if you've left the state and returned, the time that you were gone probably causes the SOL to stop. So if you lived in Oregon for three years, and then moved to Texas for 3 and are not back in Oregon, the SOL would not have tolled. Not sure if that applies in your case, but I just thought it would be worth mentioning.
Good luck!
Reply:Try this site for specific information.
Much depends on what type of debt you have.
http://www.oregonlawhelp.org/OR/StateCha...
lilac
How do you cope with the emotional drain of being in debt?
I'm working diligently on getting out of debt, but oftentimes it seems never ending. Any words of wisdom to help me cope with this?
How do you cope with the emotional drain of being in debt?
You ought to receive thousands of responses on this, because the majority of us are in the same boat to some extent.
First, you have the right healthy mindset that this is something you are working through; second, its like walking a tightrope, just keep looking at the goal and don't look down.
We get bogged in the process, and that is what brings us to a screeching halt. Know you are moving forward, even if its inches at a time, because eventually you will be there, I promise.
You can do what you can and try to let go of the rest as you keep plugging. Maybe call the creditors and tell them this is what you are able to pay at this time and then you have to quit being sick about it. We have all fallen into this trap of having credit extended or refinancing a home (like we did) and then finding yourself upside down after they squeeze you dry.
Lock arms with the rest of us and just do what you can; make a game of paying the bills off, and then don't let them put you there again.
Reply:Ditto Le_Roche. Boy it's tough getting out of debt. But hang in there...so many people don't care or take the easy way out. I commend you for being responsible. Good luck to you!
Reply:I don't know any words of wisdom, but I think it's great you're working hard to resolve your debt issue. A lot of people are just irresponsible slackers and don't care. You have integrity and are doing the right thing.
Everyone has been in debt at one time or another. The best anyone can to is make every effort to get their act together. It's very important because you're improving your credit situation in the long run.
Don't be discouraged. Just know that at least one person on the planet thinks you're remarkable and honorable for doing what's right. You will be rewarded for your efforts!
Reply:It is the Amercan way and a way to keep control of your life. As you pay down a bill, congratulate yourself that you are just a little closer to being out of debt. Whenever possible, make an extra payment, even if it is only $25. You'll feel better and that's a little less interest you will pay on principal. Cancel your credit cards and do not carry them with you. Keep one for an emergency. When you find yourself wanting to spend, check your account and if you cant pay for it cash, drop the desire to buy it. Watch those balances go down and each time they go down, tell yourself you are on the road to freedom...it will just take a little more time. And remember, each time you pay something off you are taking a little more control of your life. It is a good feeling.
Reply:I know it sucks. The first step is to pay cash for everything. Cut up your credit cards. You'd be suprised how many 'emergencies' don't require money. I used to consider an emergency that I was hungry and wasn't going to return home for 5 hours or so, so I would go out and get a bite to eat on the credit card. Once I cut it up, I began bringing baggies of carrots or cookies and a bottle of water.
I found it empowering every time I ate a carrot and filled up my water bottle because that meant that I wasn't spending any money. Now I am a save freak. Everytime I find a penny on the ground I pick it up and add it to a found stash. I use coupons for almost everything.
Reply:A lot of people feel this way. They feel that life is hopeless and that they will be paying creditors forever. You can take heart in the fact that if you keep working at it you will one day see that you are free of financial burden. Just keep working at it. Good luck.
Reply:At one point I found myself drowning in debt through illness.
Ilness and being self-employed don't go hand in hand, but it DID teach me a lot about the subject.
I've built a site focusing entirely on the subject to help others facing the same problems.
You might like to pay it a visit to get some inspiration and motivation to get yourself solvent again before depression takes a hold.
I've put the link below,
It can't hurt to give it a shot.
Good luck, Pete.
How do you cope with the emotional drain of being in debt?
You ought to receive thousands of responses on this, because the majority of us are in the same boat to some extent.
First, you have the right healthy mindset that this is something you are working through; second, its like walking a tightrope, just keep looking at the goal and don't look down.
We get bogged in the process, and that is what brings us to a screeching halt. Know you are moving forward, even if its inches at a time, because eventually you will be there, I promise.
You can do what you can and try to let go of the rest as you keep plugging. Maybe call the creditors and tell them this is what you are able to pay at this time and then you have to quit being sick about it. We have all fallen into this trap of having credit extended or refinancing a home (like we did) and then finding yourself upside down after they squeeze you dry.
Lock arms with the rest of us and just do what you can; make a game of paying the bills off, and then don't let them put you there again.
Reply:Ditto Le_Roche. Boy it's tough getting out of debt. But hang in there...so many people don't care or take the easy way out. I commend you for being responsible. Good luck to you!
Reply:I don't know any words of wisdom, but I think it's great you're working hard to resolve your debt issue. A lot of people are just irresponsible slackers and don't care. You have integrity and are doing the right thing.
Everyone has been in debt at one time or another. The best anyone can to is make every effort to get their act together. It's very important because you're improving your credit situation in the long run.
Don't be discouraged. Just know that at least one person on the planet thinks you're remarkable and honorable for doing what's right. You will be rewarded for your efforts!
Reply:It is the Amercan way and a way to keep control of your life. As you pay down a bill, congratulate yourself that you are just a little closer to being out of debt. Whenever possible, make an extra payment, even if it is only $25. You'll feel better and that's a little less interest you will pay on principal. Cancel your credit cards and do not carry them with you. Keep one for an emergency. When you find yourself wanting to spend, check your account and if you cant pay for it cash, drop the desire to buy it. Watch those balances go down and each time they go down, tell yourself you are on the road to freedom...it will just take a little more time. And remember, each time you pay something off you are taking a little more control of your life. It is a good feeling.
Reply:I know it sucks. The first step is to pay cash for everything. Cut up your credit cards. You'd be suprised how many 'emergencies' don't require money. I used to consider an emergency that I was hungry and wasn't going to return home for 5 hours or so, so I would go out and get a bite to eat on the credit card. Once I cut it up, I began bringing baggies of carrots or cookies and a bottle of water.
I found it empowering every time I ate a carrot and filled up my water bottle because that meant that I wasn't spending any money. Now I am a save freak. Everytime I find a penny on the ground I pick it up and add it to a found stash. I use coupons for almost everything.
Reply:A lot of people feel this way. They feel that life is hopeless and that they will be paying creditors forever. You can take heart in the fact that if you keep working at it you will one day see that you are free of financial burden. Just keep working at it. Good luck.
Reply:At one point I found myself drowning in debt through illness.
Ilness and being self-employed don't go hand in hand, but it DID teach me a lot about the subject.
I've built a site focusing entirely on the subject to help others facing the same problems.
You might like to pay it a visit to get some inspiration and motivation to get yourself solvent again before depression takes a hold.
I've put the link below,
It can't hurt to give it a shot.
Good luck, Pete.
Should we pay off old debt that is not listed on our credit reports?
My husband and I have some debt that is not listed on any of credit reports (I've checked all 3). Should we go ahead and pay the debt or just hold off until we get the rest of our current debt paid off?
These debts are less than 8 years old and we've not received any recent mailings. We only have the original bills from 5+ years ago.
Thanks!
Should we pay off old debt that is not listed on our credit reports?
Hi,
I used "Credit Solution" to settle my debt and improvr my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:
http://nanoref.com/linksynerg/KvHqGQ
Reply:If it's not on the credit report I wouldn't worry about it. In most states, the SOL is usually 4 years so they can not sue you or force you to pay. If you start paying, you'll start the SOL against and may sue you.
Reply:Check out your state's statute of limitations as you may still be liable for lawsuit long after the reporting timeline has ended (some states are as long as 15 years!). Also you may find that this debt "resurfaces" once you go to buy a home- many collectors use this tactic as leverage; Feel free to contact us at www.crusaderservices.com for help settling old debts as settling old debts is always better than paying them in full.
Reply:hold off until you pay the others thats on the credit report..... just wait and see.... i would be glad
Reply:These debts are most likely outside the statute of limitations....Leave well enough alone......If you make new payments you will reset the statute of limitaitions....and your goodwill might end up causing you big headaches in the form of judgements.
If it's not on your credit reports then there's no point in attempting to contact whatever debt collector that has the account....which might trigger some aggressive collection activity.....Strangely enough, you could end up damaging your credit as the items could be posted on your credit files as paid/settled....
Reply:Derogatory items age off your report 7-1/2 years from the date of first deficiency. If they aren't on your report, don't worry about them.
Work on paying off current credit card accounts first. Deal with derogatory items newest first and work back to the oldest. The older the item, the less impact on your score. Let anything close to the 7 year mark just age off.
These debts are less than 8 years old and we've not received any recent mailings. We only have the original bills from 5+ years ago.
Thanks!
Should we pay off old debt that is not listed on our credit reports?
Hi,
I used "Credit Solution" to settle my debt and improvr my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:
http://nanoref.com/linksynerg/KvHqGQ
Reply:If it's not on the credit report I wouldn't worry about it. In most states, the SOL is usually 4 years so they can not sue you or force you to pay. If you start paying, you'll start the SOL against and may sue you.
Reply:Check out your state's statute of limitations as you may still be liable for lawsuit long after the reporting timeline has ended (some states are as long as 15 years!). Also you may find that this debt "resurfaces" once you go to buy a home- many collectors use this tactic as leverage; Feel free to contact us at www.crusaderservices.com for help settling old debts as settling old debts is always better than paying them in full.
Reply:hold off until you pay the others thats on the credit report..... just wait and see.... i would be glad
Reply:These debts are most likely outside the statute of limitations....Leave well enough alone......If you make new payments you will reset the statute of limitaitions....and your goodwill might end up causing you big headaches in the form of judgements.
If it's not on your credit reports then there's no point in attempting to contact whatever debt collector that has the account....which might trigger some aggressive collection activity.....Strangely enough, you could end up damaging your credit as the items could be posted on your credit files as paid/settled....
Reply:Derogatory items age off your report 7-1/2 years from the date of first deficiency. If they aren't on your report, don't worry about them.
Work on paying off current credit card accounts first. Deal with derogatory items newest first and work back to the oldest. The older the item, the less impact on your score. Let anything close to the 7 year mark just age off.
What debt should I pay off first to help my FICO?
Hey, I've just been blessed with a nice advance from an entertainment company for 150k. I wanna get some advice on what debt should i pay off first. My fico is 430 and im trying to buy a house but i have some car repo's, credit cards and 1 apartment as well as student loans. Please if anyone has advice on how to turn it around cuz i have the money now to pay off debt. Thanks!
What debt should I pay off first to help my FICO?
Let's look at your specific question, "Which debt should you payoff first to help my FICO?"
FICO scores are based off:
- payment history (35% of your score)
- amounts owed (30%)
- length of credit history (15%)
- new credit (10%)
- types of credit (10%)
So, it really does not matter which to payoff first in regards to improving your score. More importantly, pay on-time and pay down debt. The other suggestions are OK in regards to which order to pay.
Save some of the advance for an emergency fund (usually 3-6 months of your expenses). Once you pay off a credit card, do not close the account, it helps maintain credit history. Your student loan might be tax deductable and probably has a low rate, just pay the minimum on that one.
One last point, it takes a while for your FICO score to change (months/years). Your car repo will stay on your report as long as 7 years, from my understanding and takes up to 80 points off your FICO score.
Reply:Pay off the car repo and credit cards first concentrating on the high interest rates first. Student loan debt tends to be low interest, and the interest can be deducted on your taxes, so you should continue to make the minimum payments on those until you get the other debts paid off and can use the money from those payments to pay off the student loans. Be aware that it may take some time before your credit score starts to improve anyway. Paying your debts on time will improve your score, but it will take time to show potential creditors that you are capable of doing this on a consistent basis. Considering you have had at least one car repossessed, you should be a little patient on this. Overall by paying off your debts, you will be be changing your income to debt ratio, but creditors will most likely want to see the good payment history before taking a chance on you. It may not make a significant change immediately anyway as time is usually what it takes to be able to change the score. Put the house buying on hold for a few months if possible in order to increase your score because you can get a much better interest rate if your score is higher. This will also give you time to reestablish your ability to pay for bills. You may have problems getting approved for a loan anyway even if you do pay off your debts right now unless you have a sizable amount that you can pay for the down payment.
Reply:You should pay off the credit cards first. Sometimes it makes sense to pay off the repo, but that depends upon the situation. You should contact the creditor of the car repo to see if you can change the terms of the deal. Talk to a Consumer Credit Counseling Service to help you come up with a plan to repay your loans. As for the student debt (I am assuming they are government subsidized), it is best to make the minimum payments on them until you pay off your credit card debt since the interest rate is lower than your credit cards.
Reply:Step one, make sure you have put enough aside for taxes. $150,000 for someone who is single is the 28% tax bracket and I'll bet they only withheld 25%.
Step two. Don't plan on buying a house for at least a year.
Step three, make a list of all debts.
Including ones where it's already gone through repos--at least you can get this to "full paid" on your credit report. Ditto for the apartment.
Get any debts in forbearance (say student loans) caught up.
Get any credit cards caught up.
If there is any money left, then go back and pay down the credit cards so that they are 30% or less or (great day) paid off. Do not recharge anything.
After catching it up, the student loan is a lesser priority. It won't go away, but if this is a government loan, it often has a generous interest rate, meaning that I would pay down higher debt rate amounts first.
Reply:From my point of view paying off debts through a debt consolidation company could be the best way. As they are specialist in that field they will help you plan your debts on the basis of your income and debts. They can also negotiate your debts with your creditors which can help you lower your debts. Thereafter provide with an affordable repayment plan wherein you would have to pay single payment each month.
You can refer to this site of a debt consolidation company http://ezconsolidation.com if you want.
Reply:
Pay off the highest interest rate loans first!
What debt should I pay off first to help my FICO?
Let's look at your specific question, "Which debt should you payoff first to help my FICO?"
FICO scores are based off:
- payment history (35% of your score)
- amounts owed (30%)
- length of credit history (15%)
- new credit (10%)
- types of credit (10%)
So, it really does not matter which to payoff first in regards to improving your score. More importantly, pay on-time and pay down debt. The other suggestions are OK in regards to which order to pay.
Save some of the advance for an emergency fund (usually 3-6 months of your expenses). Once you pay off a credit card, do not close the account, it helps maintain credit history. Your student loan might be tax deductable and probably has a low rate, just pay the minimum on that one.
One last point, it takes a while for your FICO score to change (months/years). Your car repo will stay on your report as long as 7 years, from my understanding and takes up to 80 points off your FICO score.
Reply:Pay off the car repo and credit cards first concentrating on the high interest rates first. Student loan debt tends to be low interest, and the interest can be deducted on your taxes, so you should continue to make the minimum payments on those until you get the other debts paid off and can use the money from those payments to pay off the student loans. Be aware that it may take some time before your credit score starts to improve anyway. Paying your debts on time will improve your score, but it will take time to show potential creditors that you are capable of doing this on a consistent basis. Considering you have had at least one car repossessed, you should be a little patient on this. Overall by paying off your debts, you will be be changing your income to debt ratio, but creditors will most likely want to see the good payment history before taking a chance on you. It may not make a significant change immediately anyway as time is usually what it takes to be able to change the score. Put the house buying on hold for a few months if possible in order to increase your score because you can get a much better interest rate if your score is higher. This will also give you time to reestablish your ability to pay for bills. You may have problems getting approved for a loan anyway even if you do pay off your debts right now unless you have a sizable amount that you can pay for the down payment.
Reply:You should pay off the credit cards first. Sometimes it makes sense to pay off the repo, but that depends upon the situation. You should contact the creditor of the car repo to see if you can change the terms of the deal. Talk to a Consumer Credit Counseling Service to help you come up with a plan to repay your loans. As for the student debt (I am assuming they are government subsidized), it is best to make the minimum payments on them until you pay off your credit card debt since the interest rate is lower than your credit cards.
Reply:Step one, make sure you have put enough aside for taxes. $150,000 for someone who is single is the 28% tax bracket and I'll bet they only withheld 25%.
Step two. Don't plan on buying a house for at least a year.
Step three, make a list of all debts.
Including ones where it's already gone through repos--at least you can get this to "full paid" on your credit report. Ditto for the apartment.
Get any debts in forbearance (say student loans) caught up.
Get any credit cards caught up.
If there is any money left, then go back and pay down the credit cards so that they are 30% or less or (great day) paid off. Do not recharge anything.
After catching it up, the student loan is a lesser priority. It won't go away, but if this is a government loan, it often has a generous interest rate, meaning that I would pay down higher debt rate amounts first.
Reply:From my point of view paying off debts through a debt consolidation company could be the best way. As they are specialist in that field they will help you plan your debts on the basis of your income and debts. They can also negotiate your debts with your creditors which can help you lower your debts. Thereafter provide with an affordable repayment plan wherein you would have to pay single payment each month.
You can refer to this site of a debt consolidation company http://ezconsolidation.com if you want.
Reply:
Pay off the highest interest rate loans first!
What do I do to get a debt deletion from my credit report?
I've sent a letter to the creditor asking for a deletion in exchange for a 80% settlement. I have not received any responses or reply and its been at least 30 days. How do I request validation of a debt or do I resubmit a letter to the original creditor. This debt is four years old, I don't even though where its from. It is a utility company.
What do I do to get a debt deletion from my credit report?
They haven't responded because they don't want to spend the time/energy in doing want you want...The debt collector just wants your money and couldn't care less about your credit.
Send the debt collector a letter via certified mail + return receipt with the following statement:
--------------------------------
I am willing to settle this issue in exchange for your agreeing to remove this item from my credit file upon receipt of $ x from me. This account will be considered settled in full upon receipt of this amount. Upon a receipt from your company confirming agreement to these terms on your company’s letterhead with an authorized signature from a manager, I will mail you a USPS money order for this amount.
-----------------------------------
This is called a Pay for Delete agreement. If they refuse to give you this written agreement first, there's no point in paying them. Never accept verbal promises...get the terms in writing first.
floral shops
What do I do to get a debt deletion from my credit report?
They haven't responded because they don't want to spend the time/energy in doing want you want...The debt collector just wants your money and couldn't care less about your credit.
Send the debt collector a letter via certified mail + return receipt with the following statement:
--------------------------------
I am willing to settle this issue in exchange for your agreeing to remove this item from my credit file upon receipt of $ x from me. This account will be considered settled in full upon receipt of this amount. Upon a receipt from your company confirming agreement to these terms on your company’s letterhead with an authorized signature from a manager, I will mail you a USPS money order for this amount.
-----------------------------------
This is called a Pay for Delete agreement. If they refuse to give you this written agreement first, there's no point in paying them. Never accept verbal promises...get the terms in writing first.
floral shops
What is the best approach to tackling debt?
I need some advice. I always plan on paying all my bills on time but it seems like I can never get out of debt. I basically had to financially support myself since I was 14. I put myself through school. I have never been able not to worry about money. I am about $25,000 in debt right now. I make about $32,100 a year. I am feeling overwhelmed and need some suggestions.
What is the best approach to tackling debt?
The first thing you need to do is list out the things that you MUST pay/month in order to survive (i.e. food, mortgage, utilities, car, etc.).
Then, you need to calculate how much of your income is left at the end of the month. Once you see how much is left, put 70% of that into making extra payments toward your debt. Put 10% into savings, and leave 10% for breathing room/month.
I found it helpful to put your budget into an excell spread sheet, and at the beginning of every month, track your spending. The most difficult part about getting out of debt, is cutting back on the things that you do not need!
Yes, read the book The Richest Man In Babalon. It's a excellant read; however, no book will make you change. You have to apply what you read, and then you'll see a difference in your financial standing.
Good luck to you!
Reply:You need to take extreme measures to get this debt down. A part time job; sell your car; no entertainment; go through your budget and cut back, and use the savings on paying bills only. You need to get that debt knocked down to at least half what it is now to be in a good financial condition.
Reply:You got through school, and supported yourself from a young age - you're obviously a capable, effective person.
If some of the debt is from school, just continue paying on it on schedule unless you can come up with extra money to pay it off early.
If some is credit card debt, try to get that paid off as soon as you can, since the interest rates are very high. Try not to use the credit cards unless it's for something you really NEED.
Good luck. You've made it this far, you'll dig out of the financial hole you're in.
Reply:Talk to your bank to find your local not-for-profit credit counseling office. Usually you get a free consultation and that might help you getting started. I was looking for a Certified Financial Planner or other financial advisor - but I learned that this is not really an option as those are mainly interested in clients that have large assets.
I did go to a non-profit agency and actually learned two important things: first, I need and I can indeed take charge of my situation, and second, I need realistic financial goals.
Simply the fact that I had to organize all my finances for the consultation helped me quite a bit. Very important is also to not lose sight - i.e. where you try to get (in your case, to get rid of your debt). For the longest time, I ignored as much as possible my situation - but guess what, there is no running away and it eventually will catch up with you. This is important to realize - it sounds somewhat stupid to spell it out but it is so true.
The ways to tackle your situation can go two ways only: either increasing your income or reducing your expenses - e.g. could you look for a better-paying job? Would getting more education significantly raise your chances for a higher-paying position? Could you move somewhere else (to an area that has a lower cost of living)? On the other end, you could see where you can cut down on your expenses - to find out how you first need to know where your money currently goes - there is no other way than to really track your spending for some time. Start out simple - write down all your recurring payments (rent, utilities, loans etc.) and then on-going your variable spending - eating out, clothes, food, etc. Do not underestimate the effectivness of this - I was shocked at how much I spend on restaurants!! I use a free software to track all my money stuff now (including 401(k)) - I can only recommend it: it helps me to spend minimum time on thinking about money (https://moneycenter.yodlee.com/moneycent...
Check out all the great resources online - you will find a wealth of information that will get you thinking in the right direction as well as show you how others got out of debt, and you will get a sense of empowerment once you really start proactively tackling your situation!
Some great sites are:
http://www.bankrate.com/
http://www.fool.com/
http://finance.yahoo.com/personal-financ...
http://www.kiplinger.com/
http://money.cnn.com/pf/index.html
http://moneycentral.msn.com/home.asp
http://www.smartmoney.com/pf/index.cfm?n...
Reply:Don't panic!!
It sounds like you are taking ownership for this matter and this a great sign.
Here are some helpful tools:
www.simpleplanning.net ("BUDGETING")
You want to establish a monthly BUDGET for your income and expenses FIRST.
You want to SAVE 6-months of your income for EMERGENCY purposes.
If you own your own home you can get a Home Equity Loan or Line of Credit and payoff your debts?
PAY more than the MINIMUM due each month for each credit card you own.
Re-Negotiate the APR% you are currently paying on un-secured dedts such as credit cards by calling the Creditor or Bank and asking for a lower rate today!
You can consolidate debt with a BALANCE TRANSFER offer from one of your exisitng accounts to lower your interest rate and reduce the number of payments that you make each month today!
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
You can get on top of your debt situation if goig forward you don't get into MORE debt. Paying Cash $ and starting a BUDGET while focusing on PAYING OFF your existing debt.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
I know it seems EZ to use that plastic card, but it adds up just as easily. And you have to PAY it all Back plus INTEREST!
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
You should also obtain a FREE Credit Report on an annual basis and review it for accuracy and to ensure you are getting CREDIT for your good repayment history:
Visit these sites:
www.freecreditreport.com
www.annualcreditreport.com
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Have a great week ahead!
GOOD LUCK! :-)
Reply:I worked in the financial service industry and saw many people with debt problems.
1. Define a monthly budget for yourself
2. Get a copy of your credit report
3. Investigate if you can consolidate your debt into lower payments and less interest
4. Possibly meet with a debt consultant in your area, many are free and will help you develop a debt management plan
5. Stick to your budget- otherwise you'll create more debts
6. Try to develop a long-term financial plan (some are available online)
7. Determine how long it will take you to pay off all these debts if you do what you are doing now-
8. If you can't pay these debts off without severe increases in interest rates- definitely see or hire a debt consultant to help you pay these off sooner- some debt consultants can "lock" your current debts so further interest will not add up....
Reply:You should have no more than 15% of your income as part of your total debt. Try to negotiate a lower interest rate with the creditors. Cut all spending and set up a budget for only necessities (food, clothing, shelter) Brown bag lunches, no going out for dinner or drinks after work. The sacrifice will pay off over time.
Reply:First, very well done for putting yourself through school and supporting yourself since 14.
I would suggest you read the book The Richest Man in Babylon.
The stories are short. It is an easy read and has the best financial planning strategy for paying off debt and recovering after mistakes and then becoming wealthy that I've ever seen.
What is the best approach to tackling debt?
The first thing you need to do is list out the things that you MUST pay/month in order to survive (i.e. food, mortgage, utilities, car, etc.).
Then, you need to calculate how much of your income is left at the end of the month. Once you see how much is left, put 70% of that into making extra payments toward your debt. Put 10% into savings, and leave 10% for breathing room/month.
I found it helpful to put your budget into an excell spread sheet, and at the beginning of every month, track your spending. The most difficult part about getting out of debt, is cutting back on the things that you do not need!
Yes, read the book The Richest Man In Babalon. It's a excellant read; however, no book will make you change. You have to apply what you read, and then you'll see a difference in your financial standing.
Good luck to you!
Reply:You need to take extreme measures to get this debt down. A part time job; sell your car; no entertainment; go through your budget and cut back, and use the savings on paying bills only. You need to get that debt knocked down to at least half what it is now to be in a good financial condition.
Reply:You got through school, and supported yourself from a young age - you're obviously a capable, effective person.
If some of the debt is from school, just continue paying on it on schedule unless you can come up with extra money to pay it off early.
If some is credit card debt, try to get that paid off as soon as you can, since the interest rates are very high. Try not to use the credit cards unless it's for something you really NEED.
Good luck. You've made it this far, you'll dig out of the financial hole you're in.
Reply:Talk to your bank to find your local not-for-profit credit counseling office. Usually you get a free consultation and that might help you getting started. I was looking for a Certified Financial Planner or other financial advisor - but I learned that this is not really an option as those are mainly interested in clients that have large assets.
I did go to a non-profit agency and actually learned two important things: first, I need and I can indeed take charge of my situation, and second, I need realistic financial goals.
Simply the fact that I had to organize all my finances for the consultation helped me quite a bit. Very important is also to not lose sight - i.e. where you try to get (in your case, to get rid of your debt). For the longest time, I ignored as much as possible my situation - but guess what, there is no running away and it eventually will catch up with you. This is important to realize - it sounds somewhat stupid to spell it out but it is so true.
The ways to tackle your situation can go two ways only: either increasing your income or reducing your expenses - e.g. could you look for a better-paying job? Would getting more education significantly raise your chances for a higher-paying position? Could you move somewhere else (to an area that has a lower cost of living)? On the other end, you could see where you can cut down on your expenses - to find out how you first need to know where your money currently goes - there is no other way than to really track your spending for some time. Start out simple - write down all your recurring payments (rent, utilities, loans etc.) and then on-going your variable spending - eating out, clothes, food, etc. Do not underestimate the effectivness of this - I was shocked at how much I spend on restaurants!! I use a free software to track all my money stuff now (including 401(k)) - I can only recommend it: it helps me to spend minimum time on thinking about money (https://moneycenter.yodlee.com/moneycent...
Check out all the great resources online - you will find a wealth of information that will get you thinking in the right direction as well as show you how others got out of debt, and you will get a sense of empowerment once you really start proactively tackling your situation!
Some great sites are:
http://www.bankrate.com/
http://www.fool.com/
http://finance.yahoo.com/personal-financ...
http://www.kiplinger.com/
http://money.cnn.com/pf/index.html
http://moneycentral.msn.com/home.asp
http://www.smartmoney.com/pf/index.cfm?n...
Reply:Don't panic!!
It sounds like you are taking ownership for this matter and this a great sign.
Here are some helpful tools:
www.simpleplanning.net ("BUDGETING")
You want to establish a monthly BUDGET for your income and expenses FIRST.
You want to SAVE 6-months of your income for EMERGENCY purposes.
If you own your own home you can get a Home Equity Loan or Line of Credit and payoff your debts?
PAY more than the MINIMUM due each month for each credit card you own.
Re-Negotiate the APR% you are currently paying on un-secured dedts such as credit cards by calling the Creditor or Bank and asking for a lower rate today!
You can consolidate debt with a BALANCE TRANSFER offer from one of your exisitng accounts to lower your interest rate and reduce the number of payments that you make each month today!
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
You can get on top of your debt situation if goig forward you don't get into MORE debt. Paying Cash $ and starting a BUDGET while focusing on PAYING OFF your existing debt.
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
I know it seems EZ to use that plastic card, but it adds up just as easily. And you have to PAY it all Back plus INTEREST!
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
You should also obtain a FREE Credit Report on an annual basis and review it for accuracy and to ensure you are getting CREDIT for your good repayment history:
Visit these sites:
www.freecreditreport.com
www.annualcreditreport.com
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Have a great week ahead!
GOOD LUCK! :-)
Reply:I worked in the financial service industry and saw many people with debt problems.
1. Define a monthly budget for yourself
2. Get a copy of your credit report
3. Investigate if you can consolidate your debt into lower payments and less interest
4. Possibly meet with a debt consultant in your area, many are free and will help you develop a debt management plan
5. Stick to your budget- otherwise you'll create more debts
6. Try to develop a long-term financial plan (some are available online)
7. Determine how long it will take you to pay off all these debts if you do what you are doing now-
8. If you can't pay these debts off without severe increases in interest rates- definitely see or hire a debt consultant to help you pay these off sooner- some debt consultants can "lock" your current debts so further interest will not add up....
Reply:You should have no more than 15% of your income as part of your total debt. Try to negotiate a lower interest rate with the creditors. Cut all spending and set up a budget for only necessities (food, clothing, shelter) Brown bag lunches, no going out for dinner or drinks after work. The sacrifice will pay off over time.
Reply:First, very well done for putting yourself through school and supporting yourself since 14.
I would suggest you read the book The Richest Man in Babylon.
The stories are short. It is an easy read and has the best financial planning strategy for paying off debt and recovering after mistakes and then becoming wealthy that I've ever seen.
What is the average debt of a student once completed with school?
I've spent two years in a community college setting paying all my expenses out of pocket. I am looking to move on to a state university where I will finish up my bachelors and my masters... what should I expect as far as debt after I'm finished?
What is the average debt of a student once completed with school?
During this same period, the average total student loan has almost doubled, reaching approximately $16,928.
What is the average debt of a student once completed with school?
During this same period, the average total student loan has almost doubled, reaching approximately $16,928.
What should I do about credit card debt? Do I have to pay it off before I can save for a house?
I'm 26 years old, I make about 50k a year and I want to start thinking about buying a house. What should I do with this nagging credit card debt? Aside from car payments, the only other debt I have is $5,000 on one of my credit cards. Can I think about saving for a house, or should I pay it off before I even consider it? Thanks.
What should I do about credit card debt? Do I have to pay it off before I can save for a house?
You do not need to pay credit card debt off before saving for a house. In fact, you may not want to pay it off completely anyway. It doesn’t hurt your credit score (which will become important when applying for a mortgage) to have a couple of open lines of credit showing active use and on time payments.
The thing is, you don’t want to have more than 25%-30% of the approved credit in use.
On the other hand, if your credit card debt is at a high interest rate, it just might make sense to reduce it substantially before starting your savings.
The interest banks are paying on deposits is ridiculously low and, while savings are important, in fact critical for purchasing a home, it just does not make sense to pay high interest on credit card debt when you have the money in the bank that could pay it off. You’ll be losing money on a daily basis that way and it just doesn’t make good sense to do that.
If you feel you must start saving, I suggest that you try to save $1 for every $4 beyond the minimum you pay on your credit cards.
Hope this helps.
Reply:You could definitely try to qualify for a home loan before paying off the debt. Just keep in mind you have to pay off the debt someday...the longer it stays on your credit report, the more chance it has to affect you and your credit score.
The key to qualifying for a house is to make sure you can afford it. If you are having trouble balancing and keep racking up debt, you should definitely concentrate on eliminating the credit card debt for now. The ideal plan would be to set your own budget and plan a way to get it all done within the next year or so.
Reply:It will be easier for you to afford your mortgage if you don't have that debt hanging over your head. Remember, you are entering into an expensive stage in life, home ownership, and having debt nagging you during that stage will make it harder. Get that old "renter's debt" taken care of, then become a home owner. With prices still falling on homes, you may be very glad you did!
What should I do about credit card debt? Do I have to pay it off before I can save for a house?
You do not need to pay credit card debt off before saving for a house. In fact, you may not want to pay it off completely anyway. It doesn’t hurt your credit score (which will become important when applying for a mortgage) to have a couple of open lines of credit showing active use and on time payments.
The thing is, you don’t want to have more than 25%-30% of the approved credit in use.
On the other hand, if your credit card debt is at a high interest rate, it just might make sense to reduce it substantially before starting your savings.
The interest banks are paying on deposits is ridiculously low and, while savings are important, in fact critical for purchasing a home, it just does not make sense to pay high interest on credit card debt when you have the money in the bank that could pay it off. You’ll be losing money on a daily basis that way and it just doesn’t make good sense to do that.
If you feel you must start saving, I suggest that you try to save $1 for every $4 beyond the minimum you pay on your credit cards.
Hope this helps.
Reply:You could definitely try to qualify for a home loan before paying off the debt. Just keep in mind you have to pay off the debt someday...the longer it stays on your credit report, the more chance it has to affect you and your credit score.
The key to qualifying for a house is to make sure you can afford it. If you are having trouble balancing and keep racking up debt, you should definitely concentrate on eliminating the credit card debt for now. The ideal plan would be to set your own budget and plan a way to get it all done within the next year or so.
Reply:It will be easier for you to afford your mortgage if you don't have that debt hanging over your head. Remember, you are entering into an expensive stage in life, home ownership, and having debt nagging you during that stage will make it harder. Get that old "renter's debt" taken care of, then become a home owner. With prices still falling on homes, you may be very glad you did!
What is the best approach when trying to negotiate credit card debt?
I have about $18000 in credit card debt. I always make my payments on time and i am in good standing with the companies. Although I am finding it hard to reduce the balance, I really just keep up with the interest. I am going to be coming into a lump sum of money, enough to pay it off, however i would like to negotiate it down. What is the best way to go about doing this. I live in ontario.
What is the best approach when trying to negotiate credit card debt?
You are better off to pay it off completely. It looks better on your credit report that you paid the debt in full. If you want to settle the accounts it will weaken your credit, but the benefit would be that you will keep thousands in your pocket.
http://www.creditwish.com/debtrelief.htm...
What is the best approach when trying to negotiate credit card debt?
You are better off to pay it off completely. It looks better on your credit report that you paid the debt in full. If you want to settle the accounts it will weaken your credit, but the benefit would be that you will keep thousands in your pocket.
http://www.creditwish.com/debtrelief.htm...
I heard a radio avertisement to eliminate debt by a group called Campos Chater Law Firm is this the real deal?
They say they've helped thousands of people, basically what they claim to do is buyout all your debts which lowers the cost, charge you their interest free fee and you pay them off just like that. My personal debt is one $6500 charge off and one $6500 consolidation loan. The guy told me that they can get my total down to anywhere from $4500 to $10000 from $13000. Will these guys actually help me or is there another option?
I heard a radio avertisement to eliminate debt by a group called Campos Chater Law Firm is this the real deal?
Ok, here is what they generally do. They will have you sign a limited power of attorney and fill out a cease and desist to send to your creditors. Then, when you have enough funds accumulated, they attempt to settle your debt. All of this time, no payments are being made and it crushes your credit score. They aren't the only firm that has gotten into this business of debt settlement, there are many others, as well as debt settlement companies that do the same thing. But, now banks/creditors are fighting back after numerous requests to stop taking on their current customers. I work for a large global bank who will not work with these types of firms/agencies. In fact, as soon as we receive a cease and desist along with a power of attorney, we immediately send the account for legal action. Many big banks are taking this route, yes, they may be a law firm, but when the large banks file suits on thousands upon thousands of people, these guys won't be able to keep up. I know of four major institutions that will not deal with these types of companies/firms; Citi, Bank of America, GE Money, and HSBC. I would make sure your outstanding obligations aren't to any of these banks before you sign up with one of these companies. Anyway, you can settle accounts by yourself, so why pay someone? These guys know that an account must be delinquent for a bank to generally offer a settlement, so....that's what they allow happen. Then they try to settle for their 45% or whatever they promised. As for the charge off, try to settle it by yourself, but I would ask one question of the agency. Ask them if they own it or if they are working on behalf of the original creditor. FYI...Generally the most an outside company buys a debt for is 15 cents on the dollar, offer them 20 and they've made their profit. Good Luck.
Reply:sounds iffy to me.
Reply:Like grandma always said, 'if its too good to be true, it probably is'.
It sounds like a credit counseling service, which is as bad as bankruptcy. They negotiate lower terms, you pay them and they pay your creditors.
Unless you are not able to make the monthly payments, you are better off contacting your creditors and asking for help.
Reply:It sounds like a conflict of interest for them to buy out all your debts and then collect from you. How would you feel if later you couldn't pay and they sued you even though they were representing you earlier?
I heard a radio avertisement to eliminate debt by a group called Campos Chater Law Firm is this the real deal?
Ok, here is what they generally do. They will have you sign a limited power of attorney and fill out a cease and desist to send to your creditors. Then, when you have enough funds accumulated, they attempt to settle your debt. All of this time, no payments are being made and it crushes your credit score. They aren't the only firm that has gotten into this business of debt settlement, there are many others, as well as debt settlement companies that do the same thing. But, now banks/creditors are fighting back after numerous requests to stop taking on their current customers. I work for a large global bank who will not work with these types of firms/agencies. In fact, as soon as we receive a cease and desist along with a power of attorney, we immediately send the account for legal action. Many big banks are taking this route, yes, they may be a law firm, but when the large banks file suits on thousands upon thousands of people, these guys won't be able to keep up. I know of four major institutions that will not deal with these types of companies/firms; Citi, Bank of America, GE Money, and HSBC. I would make sure your outstanding obligations aren't to any of these banks before you sign up with one of these companies. Anyway, you can settle accounts by yourself, so why pay someone? These guys know that an account must be delinquent for a bank to generally offer a settlement, so....that's what they allow happen. Then they try to settle for their 45% or whatever they promised. As for the charge off, try to settle it by yourself, but I would ask one question of the agency. Ask them if they own it or if they are working on behalf of the original creditor. FYI...Generally the most an outside company buys a debt for is 15 cents on the dollar, offer them 20 and they've made their profit. Good Luck.
Reply:sounds iffy to me.
Reply:Like grandma always said, 'if its too good to be true, it probably is'.
It sounds like a credit counseling service, which is as bad as bankruptcy. They negotiate lower terms, you pay them and they pay your creditors.
Unless you are not able to make the monthly payments, you are better off contacting your creditors and asking for help.
Reply:It sounds like a conflict of interest for them to buy out all your debts and then collect from you. How would you feel if later you couldn't pay and they sued you even though they were representing you earlier?
Should I pay my debt off first before I start investing?
Ok, everyone this is a test and I want to get a gauge for how people think (financially). As a business person, theoretically I know that if I can make 9% in the market, and lose 8% from debt interest I will earn 1% long term. Knowing this, how do you prefer to throw your money around?
Should I pay my debt off first before I start investing?
1% is toilet paper money - pay off the debt first.
Reply:It all depends on the situation. For example, if you have money in a savings account that gets a higher interest rate then the credit cards, yes, keep it in the savings. If you are IN debt, and getting down to stashing your money i would say no, judgments against you can take your money. I would have to look at the situation on an individual basis. If you are going on investing, well, that can go either way. You NEVER REALLY know anything and guarantees arent something most people hand out.
Reply:Yes you should. And 1% gain long term at 4% inflasion is 3% loss!
Reply:As for me, definitely pay off debt first. Unless is a 401(k) retirement plan that a employer is offer very high percentage of match up.
Reply:theory wise if you would earn 9% from the market and lose 8% from debt interest , you will earn 1% interest but if you would clear your debt first , you would earn 9%interest nd use that 8% for shopping instead .
Reply:well you also have to realize, your investment gains are taxable income.. so say you make 9% in 2008,, you will file those earning as taxable income, so you only end up making lets say 6% instead of the 9%, now you would have been better off putting it down on your debt.. and if you actually have an 8% interest rate and think your going to return 15% per year to beat that.. good luck in this market buddy.
Reply:absolutely, pay off that 8% debt first
Reply:Let's assume your figures are correct.
You will pay some taxes on the income earned, so if that's just 15%, that 9% earnings is under 8% after taxes. If your debt is not tax advantaged, that alone is enough to suggest paying the debt first.
Another factor is that the 8% interest is a sure thing. Getting your money back from the market is anything but a sure thing, but at the very least, carries SOME risk of loss.
Reply:Hello,
You should join this site, they will pay you for for real without you having to pay any kind of fees. I am already receiving money and i joined not to long ago. Good luck.
http://cash crate.com/496213
http://www.sendearnings.com/?r=michelle2...
P.S. (I put the space on the midle of the link on purpose because it won't let me to post it all together)
tanning
Should I pay my debt off first before I start investing?
1% is toilet paper money - pay off the debt first.
Reply:It all depends on the situation. For example, if you have money in a savings account that gets a higher interest rate then the credit cards, yes, keep it in the savings. If you are IN debt, and getting down to stashing your money i would say no, judgments against you can take your money. I would have to look at the situation on an individual basis. If you are going on investing, well, that can go either way. You NEVER REALLY know anything and guarantees arent something most people hand out.
Reply:Yes you should. And 1% gain long term at 4% inflasion is 3% loss!
Reply:As for me, definitely pay off debt first. Unless is a 401(k) retirement plan that a employer is offer very high percentage of match up.
Reply:theory wise if you would earn 9% from the market and lose 8% from debt interest , you will earn 1% interest but if you would clear your debt first , you would earn 9%interest nd use that 8% for shopping instead .
Reply:well you also have to realize, your investment gains are taxable income.. so say you make 9% in 2008,, you will file those earning as taxable income, so you only end up making lets say 6% instead of the 9%, now you would have been better off putting it down on your debt.. and if you actually have an 8% interest rate and think your going to return 15% per year to beat that.. good luck in this market buddy.
Reply:absolutely, pay off that 8% debt first
Reply:Let's assume your figures are correct.
You will pay some taxes on the income earned, so if that's just 15%, that 9% earnings is under 8% after taxes. If your debt is not tax advantaged, that alone is enough to suggest paying the debt first.
Another factor is that the 8% interest is a sure thing. Getting your money back from the market is anything but a sure thing, but at the very least, carries SOME risk of loss.
Reply:Hello,
You should join this site, they will pay you for for real without you having to pay any kind of fees. I am already receiving money and i joined not to long ago. Good luck.
http://cash crate.com/496213
http://www.sendearnings.com/?r=michelle2...
P.S. (I put the space on the midle of the link on purpose because it won't let me to post it all together)
tanning
What resources will provide us with honest Debt Consolidation of our Credit Cards?
I'm looking for companies or Non-Profits that will help, not hinder in this process. I would prefer to pay the debt off in 4 years, however, the problem is we might need the Credit Card in case of an emergency. NOTE- Some services require that you cancel the card once paid off and/or suspend the credit while paying this debt off.
What resources will provide us with honest Debt Consolidation of our Credit Cards?
it's a crapshoot, but, there are ways you can protect yourself, check out the below site:
http://www.ftc.gov/bcp/conline/pubs/cred...
read, read, read.
Good luck.
Reply:you have the resources it is right in your own hands -== get out of debt on your own == down size your life style and get rid of wants now and take part of the money and put in a rainy day fund for emergencies!!! give everyone a iou for christmas and use that money to also reduce debt!!! i have faith you can bounce back = yes it will take hard work and time but you can do it!!!
What resources will provide us with honest Debt Consolidation of our Credit Cards?
it's a crapshoot, but, there are ways you can protect yourself, check out the below site:
http://www.ftc.gov/bcp/conline/pubs/cred...
read, read, read.
Good luck.
Reply:you have the resources it is right in your own hands -== get out of debt on your own == down size your life style and get rid of wants now and take part of the money and put in a rainy day fund for emergencies!!! give everyone a iou for christmas and use that money to also reduce debt!!! i have faith you can bounce back = yes it will take hard work and time but you can do it!!!
What is the statute of limitations to collect on a tax debt in Virginia?
How long is the statute of limitations for the Commonwealth of Virginia to collect on any tax debt...Thank you.
What is the statute of limitations to collect on a tax debt in Virginia?
I believe it is 20 years on Virginia state taxes. If you never filed, they can go back as far as they want. If it is reduced to a judgement it can be renewed again and again. Federal Taxes are not the same as state tax and have a 10 year statute on assessments. There are several permutations to the law and to get an accurate answer in your case, you should consult a Virgina CPA or Enrolled Agent.
Reply:if a court order has been files then there is no statute of limitations, they can collect on that debt up to and even after your death!
What is the statute of limitations to collect on a tax debt in Virginia?
I believe it is 20 years on Virginia state taxes. If you never filed, they can go back as far as they want. If it is reduced to a judgement it can be renewed again and again. Federal Taxes are not the same as state tax and have a 10 year statute on assessments. There are several permutations to the law and to get an accurate answer in your case, you should consult a Virgina CPA or Enrolled Agent.
Reply:if a court order has been files then there is no statute of limitations, they can collect on that debt up to and even after your death!
Are there any legitimate debt consolidation companies out there that are not rip-offs?
I am looking to consolidate a large chunk of debt, and I am hoping to lower my interest rate to 14 or 15%. Do any of you have any experience, and what might you suggest?
Are there any legitimate debt consolidation companies out there that are not rip-offs?
Check this site: http://www.nfcc.org/ . This is Consumer Credit Counseling Services (CCCS), a non-profit company offering free counseling. They also have a debt management program available, if you qualify, at no fee.
However, you don't need to shift your debt to another loan. Work on paying off your debt, one at a time. Throw every penny you can squeeze out of your budget on the highest interest rate debt, while making minimums on the rest. When the highest is paid off, move to the next till they are all paid in full.
It will take you 2 or 3 years depending on how hard you work at it. If you consolidate to another loan, most folks have the problem that the credit cards get ran right back up and you are in an even worse position.
Reply:Get valuable tips on debt consolidation from http://moneymentor.cashmatter.... . It's a very useful website. Report Abuse
Reply:The biggest complaint I hear about debt solving web sties is the fact that they cost money and never solve anything. Do not fall into the same trap I did. Visit www.thedebtdetonator.com for more info Report Abuse
Reply:I use ACCC (American Consumer Credit Councel). They negotiated a lower percentage rate on all my credit cards and they pay them for me monthly. There is a service fee each month but it is very minimal. They consolidated both mine and my husband's debt and we are doing so much better now. I HIGHLY recommend them.
Reply:Consumer Credit Counseling is a very good company (non profit).
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/Debt-Conso...
Are there any legitimate debt consolidation companies out there that are not rip-offs?
Check this site: http://www.nfcc.org/ . This is Consumer Credit Counseling Services (CCCS), a non-profit company offering free counseling. They also have a debt management program available, if you qualify, at no fee.
However, you don't need to shift your debt to another loan. Work on paying off your debt, one at a time. Throw every penny you can squeeze out of your budget on the highest interest rate debt, while making minimums on the rest. When the highest is paid off, move to the next till they are all paid in full.
It will take you 2 or 3 years depending on how hard you work at it. If you consolidate to another loan, most folks have the problem that the credit cards get ran right back up and you are in an even worse position.
Reply:Get valuable tips on debt consolidation from http://moneymentor.cashmatter.... . It's a very useful website. Report Abuse
Reply:The biggest complaint I hear about debt solving web sties is the fact that they cost money and never solve anything. Do not fall into the same trap I did. Visit www.thedebtdetonator.com for more info Report Abuse
Reply:I use ACCC (American Consumer Credit Councel). They negotiated a lower percentage rate on all my credit cards and they pay them for me monthly. There is a service fee each month but it is very minimal. They consolidated both mine and my husband's debt and we are doing so much better now. I HIGHLY recommend them.
Reply:Consumer Credit Counseling is a very good company (non profit).
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/Debt-Conso...
Is it as baffling to others that the United States has the largest national debt in the world?
8 Trillion Dollars- and daily it increases by nearly 2 billion dollars since 2006. So each US citizens' share (out of 301 million citizens even those babies) is nearly $30,000 (if they paid today...) I just find it ridiculous that the national debt is astoundingly high and we complain when third world nations are incapable of paying their debts.
Is it as baffling to others that the United States has the largest national debt in the world?
First, it doesn't. Japan now has the largest national debt, even though their economy is 40% the size of the U.S.'s.
Second, all countries have a national debt. Since the U.S. has the largest economy with the largest numbers in every category, the only surprise about debt is that it is NOT number 1 anymore. Do you expect Lichtenstein to have a larger debt than the U.S? A typical rich person has much more debt than a typical poor or middle class person. They have the income to support it.
Third, surely you are aware that nearly 45% of the U.S. national debt is the Social Security trust fund, aren't you? It exists as a necessary result of how Social Security is designed, and Social Security surplus funds are immediately converted into special government bonds (ie, debt). This is why the U.S. debt continued to grow even during the surplus years of 1998-2002, and this certainly accounts for most of the increase in debt last year, this year, and next year. Are you suggesting we just eliminate the social security program?
Reply:Our current president has borrowed more money than all of the 42 preceeding presidents together. That could explain it.
Reply:absolutely true but dont worry its going to catch up with us. You need to read about to whom the debt is owed. They are getting the shaft. Basically most pensions and medicare/Social security will collapse. I am not planning to have a dime of my social security contribution ever to come back to me.
Reply:That's not baffling, what's baffling is how we got into debt in general.. what happened to the surplus when Clinton was in office? I mean really folks, wake up. I don't even lean one way or the other (i.e. republican or democrat) but dang, what the heck?
Reply:no not really u can kinda uderstand y our country is in so much debt i mean come on
Reply:haha. yep....thats america fer ya.
Reply:If every country paid the US back that owed it money there wouldn't be a national debt. There are still countries that owe us money from WWII. As a world leader it SHOULDN'T surprise you that the debt is so high, because we give more away than other countries can.
Reply:That's the fiscally conservative Republicans for you.They ran the whole show for the past six years and have put this country on the brink of bankrupcy.
Reply:If I told you I owed $45,000 on my credit cards, would you find that shocking? You should draw zero conclusions here. Without discussing ability to pay, debt is meaningless. Yes we have a high national debt, but our ability to pay is also high. You must keep things in perspective if you are serious about this issue. I, like yourself am concerned, but not driven by political blindness. This isn't the Republican vs. Democrat issue some of you want to make it out to be. I personally wouldn't mind a large debt if it was the American government owing it to the American people. What bothers me is how much of our debt is owed to outsiders. I think this is an issue to discuss also.
Reply:I think we could greatly reduce that debt by not helping any other country with anything else. No disaster relief, aide, debts forgiven, military aide, nothing.
(point being...we are also the most generous country in the world)
Reply:when gov has no control and acts like it is on drugs-this is what you get. Or as Roy Rodgers said "thank God we do not get all the gov we pay for." But then again he did not belong to a organized political party he was democrat. when both parties spend and regulate/controls-a fascist form of gov, we the people loose.
floral
Is it as baffling to others that the United States has the largest national debt in the world?
First, it doesn't. Japan now has the largest national debt, even though their economy is 40% the size of the U.S.'s.
Second, all countries have a national debt. Since the U.S. has the largest economy with the largest numbers in every category, the only surprise about debt is that it is NOT number 1 anymore. Do you expect Lichtenstein to have a larger debt than the U.S? A typical rich person has much more debt than a typical poor or middle class person. They have the income to support it.
Third, surely you are aware that nearly 45% of the U.S. national debt is the Social Security trust fund, aren't you? It exists as a necessary result of how Social Security is designed, and Social Security surplus funds are immediately converted into special government bonds (ie, debt). This is why the U.S. debt continued to grow even during the surplus years of 1998-2002, and this certainly accounts for most of the increase in debt last year, this year, and next year. Are you suggesting we just eliminate the social security program?
Reply:Our current president has borrowed more money than all of the 42 preceeding presidents together. That could explain it.
Reply:absolutely true but dont worry its going to catch up with us. You need to read about to whom the debt is owed. They are getting the shaft. Basically most pensions and medicare/Social security will collapse. I am not planning to have a dime of my social security contribution ever to come back to me.
Reply:That's not baffling, what's baffling is how we got into debt in general.. what happened to the surplus when Clinton was in office? I mean really folks, wake up. I don't even lean one way or the other (i.e. republican or democrat) but dang, what the heck?
Reply:no not really u can kinda uderstand y our country is in so much debt i mean come on
Reply:haha. yep....thats america fer ya.
Reply:If every country paid the US back that owed it money there wouldn't be a national debt. There are still countries that owe us money from WWII. As a world leader it SHOULDN'T surprise you that the debt is so high, because we give more away than other countries can.
Reply:That's the fiscally conservative Republicans for you.They ran the whole show for the past six years and have put this country on the brink of bankrupcy.
Reply:If I told you I owed $45,000 on my credit cards, would you find that shocking? You should draw zero conclusions here. Without discussing ability to pay, debt is meaningless. Yes we have a high national debt, but our ability to pay is also high. You must keep things in perspective if you are serious about this issue. I, like yourself am concerned, but not driven by political blindness. This isn't the Republican vs. Democrat issue some of you want to make it out to be. I personally wouldn't mind a large debt if it was the American government owing it to the American people. What bothers me is how much of our debt is owed to outsiders. I think this is an issue to discuss also.
Reply:I think we could greatly reduce that debt by not helping any other country with anything else. No disaster relief, aide, debts forgiven, military aide, nothing.
(point being...we are also the most generous country in the world)
Reply:when gov has no control and acts like it is on drugs-this is what you get. Or as Roy Rodgers said "thank God we do not get all the gov we pay for." But then again he did not belong to a organized political party he was democrat. when both parties spend and regulate/controls-a fascist form of gov, we the people loose.
floral
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