Debt

What is the best way to become debt free?

2009-08-03T01:39:00.001-07:00

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

What is your most burning question about getting out of debt?

2009-08-03T01:39:00.000-07:00

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

What is the difference between debt securities and equity securities?

2009-08-03T01:38:00.003-07:00

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.

Is there actually a legitimate debt consolidation Company out there?

2009-08-03T01:38:00.002-07:00

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...

How do I write a debt validation letter?

2009-08-03T01:38:00.001-07:00

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 big is this debt that Bush is leaving to the next President?

2009-08-03T01:38:00.000-07:00

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

How can I consolidate or eliminate my debt?

2009-08-03T01:37:00.003-07:00

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.

What if I cannot pay credit card debt because I have medical expenses?

2009-08-03T01:37:00.002-07:00

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.

How do I go about consolidating my credit card debt?

2009-08-03T01:37:00.001-07:00

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.

Will debt settlement ruin my chances at getting a new job?

2009-08-03T01:37:00.000-07:00

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

What is the greatest power posessed by debt collectors to collect unpaid debts?

2009-08-03T01:36:00.002-07:00

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 if the same debt is being reported by more than one company?

2009-08-03T01:36:00.001-07:00

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

How do credit card debt councilors work with credit card issuers?

2009-08-03T01:36:00.000-07:00

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 long does a collection agency have to legitimately collect a debt?

2009-08-03T01:35:00.003-07:00

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 do you cope with the emotional drain of being in debt?

2009-08-03T01:35:00.002-07:00

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.

Should we pay off old debt that is not listed on our credit reports?

2009-08-03T01:35:00.001-07:00

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.

What debt should I pay off first to help my FICO?

2009-08-03T01:35:00.000-07:00

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 do I do to get a debt deletion from my credit report?

2009-08-03T01:34:00.003-07:00

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 is the best approach to tackling debt?

2009-08-03T01:34:00.002-07:00

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 average debt of a student once completed with school?

2009-08-03T01:34:00.001-07:00

What should I do about credit card debt? Do I have to pay it off before I can save for a house?

2009-08-03T01:34:00.000-07:00

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 is the best approach when trying to negotiate credit card debt?

2009-08-03T01:33:00.003-07:00

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...

I heard a radio avertisement to eliminate debt by a group called Campos Chater Law Firm is this the real deal?

2009-08-03T01:33:00.002-07:00

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?

Should I pay my debt off first before I start investing?

2009-08-03T01:33:00.001-07:00

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

What resources will provide us with honest Debt Consolidation of our Credit Cards?

2009-08-03T01:33:00.000-07:00

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 is the statute of limitations to collect on a tax debt in Virginia?

2009-08-03T01:32:00.003-07:00

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!

Are there any legitimate debt consolidation companies out there that are not rip-offs?

2009-08-03T01:32:00.002-07:00

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...

Is it as baffling to others that the United States has the largest national debt in the world?

2009-08-03T01:32:00.001-07:00

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

If a credit card debt is sent to collections, is it still possible to negotiate with the original creditor?

2009-08-03T01:32:00.000-07:00

Like, I know that sometimes you can negotiate to have the negative mark changed on your credit report to say "paid in full" or something that isn't negative, like "paid off collector". But is that only when the debt is still with that original creditor?

If a credit card debt is sent to collections, is it still possible to negotiate with the original creditor?
Despite what some 'credit' sites claim, it is very unlikely that the original creditor will negotiate with you once the debt has been sent to a collection agency. Usually the collection agency buys the debt.

Paying derogatory items will not improve your score. The damage is already done. However, creditors look at your whole credit report. Paid old debt looks better than unpaid.

You are more likely to negotiate a settlement for less with the collection agency than the original creditor -- the older the debt the smaller the settlement. Be sure to get any settlement in writing and do not give collectors direct access to your bank account.
Reply:No....when the creditor writes off the debt and sells the debt to a 3rd party debt collector, the original creditor is no longer entitled to any payments that you may make....

It's important to realize that once your card is charged-off, the damage is already done....paying the defaulted amount back will not undo the damage of a charge-off.
Reply:If you have charge offs and other negative marks on your credit reports, I know a company that can help you get those removed. They really are miracle workers and they have helped many people clean up their credit reports and raise their credit scores.

go to: www.creditrepairforall.vpweb.com

Have a great day!
Reply:Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.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://CreditSolution.ez-mart.biz
Reply:It doesn't matter if you are negotiating with the original creditor or the company that bought your dept, you can negotiate the terms of settlement to include that the will report that the bad debt has been paid off or settled. If your creditor has sold your debt to another company than they are no longer responsible for your debt and won't reap the benefits of you paying it off or settling. You may be able to talk to them about it, but they are just the middle man. Trust me, it's just easier if you call the company that owns your debt.

How does consolidating your debt affect your credit score?

2009-08-03T01:31:00.002-07:00

Is it a good idea?

I just sold my home, and over the next year, I'm going to work on fixing my credit. (no mortgage or rent-living with family) How do these type places really help you increase your credit score while paying off debt? How much do they cost, cause I know they're not doing it for free.

How does consolidating your debt affect your credit score?
All they do is take one big check you write them, and pay off your creditors. When one debt is done, they take the money from that and apply it to debt #2, so it goes faster until it's paid. Repeat until done.

But in the meantime, they take $25 out of each payment you send them. Apparently this works for people who get frustrated at paying bills.

I take all my bills, divide them into four, and have the bank send a check every friday to all of them. anything left saturday morning is mine to spend. i am never stuck for not having enough money to pay the bills because nothing is ever overdue. to pay off the credit card debt faster, send MORE money each week. -- but the bank doing it saves me the dismal task of stuffing envelopes, keeping stamps and remembering to mail.

I don't open up the mail unless i schedule a payment... keeps me from paying late fees. can't pay the whole thing... divide it up, schedule it, and forget it.

oh yeah. pay yourself first. get an ING direct account and save 5% of your income. you'll thank me!

good luck.
Reply:why was this a featured question? Could it be an ING advertisement? Report Abuse

Reply:That's a good question, wheelbarrow, especially since it was chosen Best Answer without even answering the question! Report Abuse

Reply:I don't see why you would need credit if you already owe money? Isn't credit an invitation to borrow someone else's money? Why ask how you can prove that you can pay them back? Report Abuse

Reply:Why did you pick that answer as best answer, if you pay attention to it you'll end up in more trouble was talking in circles never gave you an answer to your question, you should have chosen the other answer, it was far better solution and the correct one as well............ Report Abuse

Reply:The TOP CONTRIBUTOR badge attached to the person giving this answer is IRREFUTABLE proof that YA has NOTHING remotely resembling quality control. Report Abuse

Reply:You can consolidate your debt without going to one of the so-called "debt counselors". Simply go to your bank or credit union and ask about a debt consolidation loan. It can save you a lot of money in interest and may lower your monthly outlay. It always looks good on your credit report when you take action to reduce your debt.

What is the average debt of a student upon graduation?

2009-08-03T01:31:00.001-07:00

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 upon graduation?
I'm a sophomore (Junior once the semester's over) and I have $20,000 worth of debt. From what I hear that is pretty normal. I'd say between $20-40,000 is the norm. ( I get that number from myself and people I know personally). Some may be more, some less. As for myself I've gotten the short end of the stick ... My mother makes too much money for me to be considered for any "free" government aid, but there is still no money to pay for my schooling. I have family members who are capable of helping me (I am the only grandchild on one side, only niece and etc.), but they choose not to. So yeah ... I'm going to be in debt for the rest of my life. Don't you just love the way the education system in this country works? Good luck pursuing the remainder of your degree (and paying for it!!!)

If I pay my debt collectors will this clear my credit report?

2009-08-03T01:31:00.000-07:00

I have 2 debt collections on my credit report, one is for 52.00 and the other for 200.00 I didn't really know about these, their both medical related and I have had them for about a year in 2009. If I pay them will this clear my credit. Does this mean I have bad credit?

If I pay my debt collectors will this clear my credit report?
Sorry to say, but once a debt has gone to collections it will remain on your credit report for 7 1/2 years as per Running of Reporting Period - Section 605 [15 U.S.C. § 1681c]

However, paying them off will remove them from the derogatory section to the potentially negative section of your credit report and show $0 balance owed. This is far better then not paying. Your score will raise a little, but it will affect your credit history until if drops from your report. Also as it ages, it carries less and less weight when a creditor reviews your report for financial purposes.

Disputing the debts would do you no good as they are fairly current. The CRA's could consider this a frivilous dispute and mark your credit report as such. Disputing only works if the debt is not yours or is time barred. The CRA's have to notify the creditor that you are disputing the debt and the creditor will simply state it is a valid debt.

Hope this answer is of help to you

LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
Reply:As far as my knowledge,this is a question with various answers,it is really depending on the mind of yourself,providing a great resource here http://www.DebtFreetips.info/debt-free.h... for reference though.

purchase flowers

What is the exact number of America's national debt? And is foreign debt included in the national debt?

2009-08-03T01:30:00.003-07:00

I'm extremely confused in trying to understand all of this national debt stuff. According to The U.S. Treasury Directory website, our national debt is 10 trillion. According to The CIA World Factbook, our external debt is 12 trillion.

Is foreign debt included in the national debt? Is it the other way around? Or are they completely seperate?

What is the exact number of America's national debt? And is foreign debt included in the national debt?

well don't worry there are many online sites which provide sound debt advice and more hassle free way to find help with your debt problems. In fact, making the process of finding sound debt advice as simple as possible.thanks.

Reply:"Annual Deficit" is the amount that Federal Spending exceeds Federal revenues (which are mainly income taxes). For example, this year Congress %26amp; the President spent $438 billion more than we raised in income tax)

"National Debt" is the accumulation of all deficits over the years This has grown from $5.6 Trillion in 2000 to about $10+ Trillion now. .

The external debt by the CIA is "public and private debt owed to nonresidents repayable in foreign currency, goods, or services. ". That includes national debt owed to others, state debt owned to others, and company debt owned to others.

If it's confusing to you - that's what our government intends. The elected officials occasionally change definitions and inclusions so they don't look bad.

For example, our National Debt is $10 Trillion, but only $5 trillion is owed to the public. Our government uses the Social Security withheld from our paychecks (and other funds) to cover the part of the debt. That's like using your rent money for next month to pay when you've spent too much. When it's time to collect SS - the money won't be there.

Keep asking questions - I know I will. American's don't spend enough time questioning this stuff.
Reply:you don;t have to worry about it because in your lifetime it will not get paid off.Not even close.

How can i combine my credit card debt and my cost of tuition into one loan?

2009-08-03T01:30:00.002-07:00

In august i will be going away to school. the cost of tuition is around 17,000 a year. at the same time i have about 4,000 dollars in credit card debt. is there any way i can payoff my credit card debt by adding it to my student loans? and how do i go about getting a student loan?

How can i combine my credit card debt and my cost of tuition into one loan?
apply for federal student loans at http://fafsa.ed.gov

But be aware, you are limited to borrowing no more than the published cost of attendance of your school minus your EFC amount. (The cost of attendance is more than the cost of tuition). Also the money is given to your school and divided in half. You would get half your loan in the fall and half in the spring.

Here is a good book listing the interest rates and the max amounts you can borrow. pg 9 and 11. Plus the different types of grants and such.

Privately funded student loans (outside fafsa) are a bad idea. Higher interest rates, high fees, not to mention you will have to get a cosigner.
Reply:You have credit card debt, and you wan to pay it off as quickly as you can. We will assume that you are going to stop creating more debt. You have changed your ways. You also understand that paying credit card%26lt;!--balances with a consolidation loan or rolling it into a mortgage isn't paying it off. In fact, paying a lower interest rate, but paying on the debt for many more years, usually means paying much more, not less.Okay, so you really want to be rid of that credit card debt.

http://bestcreditcards.freehostia.com/Cr...

First, you have to understand that not all debt is the same. Of course you know this. Some of your cards have a higher interest rate than others.Find and budget the money to start paying down those balances. If you order pizza every week, for example, you may be spending $60 or $80 per month right there--%26gt;If you are serious about getting those debts paid, you may have to eat $4 frozen pizzas for now. Do what you have to do, and determine how much you can apply towards the debt each month.
Reply:Your best bet it so apply for as much student debt as possible and pay your credit cards of separately. I am not aware of any consolidation options. Student debt is generally tax deductable and at a lower interest rate.

Also look into free money...scholarships.
Reply:Your school has financial help available. Go ask them, they have alot of options available.

How exactly does a debt card work in regards to starting my own bank account?

2009-08-03T01:30:00.001-07:00

I am starting my own bank account and would like to know if the money I put in my account goes directly on my debt card and also when I put money in my bank account will that automatically be put on the card or do I have to do something for that to happen?...thanks

How exactly does a debt card work in regards to starting my own bank account?
Its just like writing a check.

Be careful not to overdraw the NSF fees at my bank are 35 dollars each. OUch!

Try to keep a cash cushion of 500 dollars so you never overdraw.

Check your balance online weekly, or keep a check register on excell.

Banks make 240 / year on people that have less than a 250 average balance. Don't be one of those people that keeps bouncing checks and debits.

/
Reply:When you open up a checking account and make a deposit you have funds in your account when you use your debit card you take funds that match the debit out of your account to pay for your debit it is usually taken out of the account immediately its so easy it's scary. Just keep track of your debits so you do not overdraw your account.
Reply:are you talking about a DEBIT card?

a debit card is connected to your bank account, so instead of paying with cash, you use the card, and the money is taken out automatically. like cash.
Reply:A debit card is like a check. When you use it, funds are automatically deducted from your account. So its like a convenient check book.

What are the best recommendations for amending six years worth of unresolved debt?

2009-08-03T01:30:00.000-07:00

In 2000, while working a good job, paying my bills, rent, credit cards, student loans, etc..., and making head way with my debt, circumstances and my poor judgement in dealing with those circumstances, I ended up a stones throw away from being homeless, ( was for 6 mos.) Now after six years of battling back to a good job, with a living wage, benefits, retirement, ect..., I would like to, need to, pay off what I owe and rebuild my credit. Obviously I have judgements, my student loan is in default, and all my past debts are in collections. Now that I have the means to pay them, what is the best way to maintain and manage my finances, without jeapordizing the status quo, while I initiate paying off my past debts? And just how do I initiate paying off my past debts? Where do I start? And with whom?

What are the best recommendations for amending six years worth of unresolved debt?
Sir ,

You do this very very carefully. This is like handling a basket of poisonous snakes. You wake up one at a time.

You contact the Smallest first , any settlements must be done in writing before any check is written. Anything you send to them must be certified return signature.

Cause if they are speaking - they are LIE ing.

Never give them post date check or electronic entrance to your accounts - they will clean it out.

visit DaveRamsey.com for more info on how to do this.

.

DO Not rebuild your credit - unless you enjoyed Slavery.

Read 'The Millionaire Next Door' understand why debt is slavery. Yes you can get a mortgage with out I Love Debt score.

Get a second job, amass a cash emergency fund, wake up the student loans with cash in hand. They can do real damage to your personal money.

Go slowly with knowledge.
Reply:I'd start with contacting those who you owe. If your past debts are in collections, try contacting the company where the debts are and work out a repayment plan with them. They may not accept personal checks from you, but they should be able to make other arrangements. For your student loan, there should be a phone number on your agreement to which you can contact and discuss the situation. And do the same with the judgments. In my opinion, as long as you are able to make good on those debt, in the long run, everything will work out. Congratulations for at least getting this far. Most people I know run away from their debts. At least you're heading in the right direction. Good luck!
Reply:I know this is probably going to sound crazy, but.....if you go to Oprah's website...

http://www.oprah.com

click on the debt diet information....it is a great tool and resource for the problems you are having and have had. Good Luck!

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Could debt collector legally withdraw money from my bank account?

2009-08-03T01:29:00.003-07:00

I want to provide an immediate family member with a credit card, under my account, for limited use. This person is, however, in debt. Will the debt collector be able to legally withdraw money from my checking account?

Could debt collector legally withdraw money from my bank account?
No - nobody without a court order can take money from your account without your permission. And collections can't get a court order against you for someone else's debt.
Reply:If a direct debit facility is put in place or a court ordered garnishee - then yes.

The bank can also use its TOS to decant money from one account in credit to another account in debit.

Don't do it.
Reply:don't do it.
Reply:no they can't. accept they already makes agreement about that, like auto debit. other ways no one able to touch money in your account. there is an privacy statement that gives you right in this circumstances.
Reply:Not unless the debt collector had access to your account and your permission. Credit Cards are generally not associated with your checking account unless it is a debit card.

Why would you want to give someone a credit card when they clearly have a problem with debt?
Reply:Speaking from personal experience and some stories I've heard from others, allowing anyone else to use your credit is just opening yourself up for a lot headaches or possible trouble. I am currently signed up with BBB associated debt relief company, and being VERY careful about who can access your personal info is critical. I personally would say, if you set up this credit card for a family member, be absolutely sure that YOU ARE THE ONLY ONE who will be allowed to make changes to the account. (EX: credit limit increases or adding other users). Unless you sign a document or give specific authorization to the debt collector can't withdraw money from your acct. but they can report negative credit issues to the credit bureaus under your name.
Reply:never lend money unless you never expect to get it back.

but never ever lend money to someone being chased by a debt collector.

never give credit card to anyone. once it's in their name you will never get it back. bank will not close account. you will be stuffed. read all the small print. ask a lawyer.

don't do it!
Reply:You are responsible for whatever the secondary cardholder charges to your account, but a debt collecter cannot withdraw funds from your bank account without your express permission. It's not like we're talking IRS here.

But "captured" asked you a very good question: Why would you want to give someone a credit card when they clearly have a problem with debt?

What are your chances of getting additional credit while still in debt consolidation?

2009-08-03T01:29:00.002-07:00

In a debt consolidation program is it likely that you will be able to obtain additional credit?

What are your chances of getting additional credit while still in debt consolidation?
forget it your chances are nil!!!
Reply:If you can qualify, but that's not really the idea

Debt consolidation companies are usually scams by the way.

Why are the debt to equity ratios so high for banks compared to other companies generally?

2009-08-03T01:29:00.001-07:00

For example, the net gearing ratio (debt-to-equity) for banks like ANZ or NAB are in the high numbers (1000 something %). Why is this? How does this high ratio indicate how the bank is performing financially compared to other companies within the industry or to other companies generally?

Why are the debt to equity ratios so high for banks compared to other companies generally?
yes off course

it is financial leverage

and com.maintane it very much.

thanks

Why are the debt to equity ratios so high for banks compared to other companies generally?

2009-08-03T01:29:00.000-07:00

Will a debt with a statal university get me in trouble with immigration?

2009-08-03T01:28:00.003-07:00

Hi, I have a debt with a statal university, which I had to pay until april of this year, but obviously I didnt. I dont live and Im not from the US, and I never had troubles with immigration. Im going to the US for a week tomorrow, so my question is, having this debt unpaid, should I have troubles with immigration, getting in or out?

The debt is for like a thousand dollars, so its not that big.

Thanks!

Will a debt with a statal university get me in trouble with immigration?
Probably not. Immegration isn't in charge of snagging people in debt and sending them back home. If it's only a grand, pay it off. You're spending AT LEAST that much to come be in the US for a week. Be sure you have your priorities straight. Not paying back a debt you owe is theft, and it WILL effect your likelyhood to be able to make a large purchase, and jobs often look at credit before they hire.

What are the requirements for me to open my own debt collection agency in California?

2009-08-03T01:28:00.002-07:00

What are the requirements for me to open my own debt collection company in California? Are there any laws or licensing requirements? I know I will be subject to the fdcpa, but any licenses i must get first?

What are the requirements for me to open my own debt collection agency in California?
the licensing agreements that are needed is a vendors license and an occupation permit where your business will be located and the google the state of californis/business licenses and you will get the rest .

How has leveraging debt helped you create wealth?

2009-08-03T01:28:00.001-07:00

I saw a show on CNBC called something like the millionaire inside where they had a panel of 4-5 financial gurus (I recognized two as authors of various books and on Yahoo finance). Their last topic was about leveraging debt to build wealth.

How has leveraging debt helped you create wealth?
Levering is where you borrow to invest.

For an investment property you could borrow perhaps 70% of the value of the property. If the property goes up by 10% in value because you only put down 30% the real return to you is 33%

10,000 increase on an investment of 30,000.

This is leveraging and does not mean leveraging your own debt. It is also often referred to as OPM 'Other People's money' or gearing.

What is the statue of limitations on a credit card debt in California?

2009-08-03T01:28:00.000-07:00

Credit card company wrote off the debt in 1997. Now a credit it agency is trying to collect.

What is the statue of limitations on a credit card debt in California?
ok.this is easy for me :)......If the cc debt was placed in collection in 1997 the debt has a statute of limitation of 7 years. Now keep in mind that if you've ever made a payment to that agency in any of that 7 year period you 7 years starts all over again.

You can also be sued by the collection agency for the debt during that 7 year period if the debtor decides to pursue you in small claims court.

The best way to remedy this is to file a chapter 7 Bankruptcy if you have other debts that are non-secured. This will stay on your reporting credit for 10 years and will wipe them out completely.

If you choose to wait it out....Then stick to your guns and DO NOT pay the collections agency. When they call tell them never to call you again at home or work!. They are governed by the Fair Debt Collections and Report Act and once you tell them NOT to call they have to abide by what you've told them to do. If they call you again....keep a log of the dates and times they've called and report them to your attorney and sue them for harassment!!
Reply:they have redone the laws on credit cards they can now hound you for 15 years and if you own a house they can put a lean on it or they can get part of your pay or SS i send mine 5.00per mo and they cant do a thing to me and O do they hate it if they don't take it then you pay zip you must take them to Cort
Reply:I'm no expert in credit card debt in California, but I'm fairly certain that just because a creditor has written off debt, it does not preclude them from attempting to collect that debt. Unless you have some sort of bankruptcy protection, they should be able to attempt to collect any debt that has not been paid, regardless of whether or not it has been written off by the creditor. Oh yeah, also, it's a "statute," not a "statue."
Reply:I found two sites that say 4 years

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Why does a Debt Management Plan ask if you have over 1000 in medical bills?

2009-08-03T01:27:00.002-07:00

We are about to begin a debt management plan through CCCS. One of the first questions on the application is do you have over $1000 in medical bills. Why do they ask this? Will they help with these bills?

Why does a Debt Management Plan ask if you have over 1000 in medical bills?
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How does a rental mortgage and rental income affect your debt ratio?

2009-08-03T01:27:00.001-07:00

For instance:

Is it $1500 rental income - $1000 rental mortgage = $500 added to your income only

or

Is $1500 of rental income added to your total income and $1000 added to your total debt and they are considered separate of each other in the ratio?

How does a rental mortgage and rental income affect your debt ratio?
Golferwh is correct with one exception. You have to be able to prove that you have been a landlord for 2 years (with tax returns that show rental income) before you can use any of it.
Reply:I would only add to this discussion that if you have filed a schedule E on the subject property and you are showing losses, they may add back depreciation and divide by 12. Depending on whether you are showing a loss or a gain after adding back the depreciation it would either add to your be subtracted from your other income before the total debt ratio is calculated (e.g. your housing expenses + all other monthly debt payments/gross income +- gain/loss from rental property)

I would also emphasize the importance of having the two year history of managing rental property to avoid having the full payment on the rental property thrown in to the ratio calculation with out the use of the rental income for agency programs. That is usually a deal killer.

Good luck.
Reply:Underwriters count 75% of the rental income against your rental mortgage payment. This is to account for vacancy losses.

Therefore $1500 lease X 75% = $1125 - $1000 (PITI+MI) = $125 is POSITIVE net rent. This rental HELPs you qualify.

This is true of MOST lender/programs, but some (rarely) have different protocols depending on the loan program. Get qualified with a mortgage professional who can work the income/ratios for you that exactly fits your scenario.

Best of luck!

PS. You don't need to have been a landlord for two years to use your (soon to be) former residence as a rental. You must qualify with BOTH house payments, show a lease (12 mos with copy of the deposit check from tenant) and be sure the house you are moving into is larger, nicer, lower payment, etc. My office closed several of these move up/lower payment purchases in the last 2 months.
Reply:Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.I came across this company on NBC News Special Edition.Check it out here:

http://d6b0.easyurl.net
Reply:I am a Mortgage banker in TN %26amp; KY---no not at all only 75% is use so 1500 x.75= 1125-1100= 125 and that is only if the mortgage payment includes taxes and insurances
Reply:seriously?
Reply:Depends on where the rental income is coming from.

Fannie Mae/Freddie Mac standard underwriting requirements will automatically deduct 25% from the rental income along with the mortgage payment.

You also must show tax records that show the reported rental income that you are claiming on the properties...that keeps you from inflating it.

You must also show a signed lease that has a minimum 1year duration.

In other words, if you show $1500 rental income on your tax records, deduct 25%, deduct the $1,000 mortgage payment (and that MUST include taxes and insurance or the mortgage company will make you provide it and deduct more) and what is left is your income.

You CANNOT use rental income from the subject property to qualify for the loan...only a two year history of rental incomes from OTHER properties.

Can large public debt causethe bankruptcy of the government,making it unable to meet its financial obligation?

2009-08-03T01:27:00.000-07:00

Can a large public debt cause the bankruptcy of the government,making it unable to meet its financial obligations? WHY?

Can large public debt causethe bankruptcy of the government,making it unable to meet its financial obligation?
If you're talking U.S. it already IS bankrupt ! meaning it does not have enough gold/ reserves, to pay all it's debt. Fortunately other countries don't/ wont 'call' in that debt. Public debt / Govt. debt are one and the same since the Govt. IS the people [ or is supposed to be ! ], the same principles apply to governments as to individuals, if you spend more than you 'earn' you go broke !! So, Govt. spending [ health, military, education, administration, etc. ] exceeds 'earnings [ taxes mostly ] meaning they / you are BROKE !!
Reply:It's not public debt that's a problem , it's the government

( Bush ) overspending and borrowing more to try and stay solvent. Where would you be if you spent money the way Bush does . . . bankruptcy court weekly .
Reply:Yes. Argentina and Brazil are recent examples.

If you borrow too much and can't repay you go bankrupt. This principle applies to everyone, even governments.
Reply:yes if the other countries who own are debt want all the money or if there rates are raised more then we can raise others to pay for it

How bad would it be if I use one of these debt consolidators?

2009-08-03T01:26:00.001-07:00

My uncle will let me borrow 45K w/ no interest just pay him what I pay every month to credit cards (which is 500.00 per mo.) Or I could try n chop down my debt w/ debt consolidators and pay off the remaining debt and invest the rest of my uncles money. My debt will be zero but how bad did I effect my FICA score?

How bad would it be if I use one of these debt consolidators?
I would not borrow that amount from family. In my experience money and family don't mix. Also, you run the risk of putting money back on those cards and getting into the same position but now you have a payment to your uncle to. I used a company called Debt Counseling Corporation--I had 23000 in debt and was done much sooner then i would have off--they lowered interest and paymnets. I learned how to budget myself and they provided me with those tools. You should explore all options so check them out

http://www.debtcounselingcorp.org
Reply:Without question, the best choice is to take the money from your uncle and pay off all of your debts. The debt consolidators will charge interest while your uncle is giving you an interest free loan.

I understand the idea of investing the money, but without knowing more about you and your investment skills I'd have to assume that the debt consolidators will charge a higher interest rate than the rate of return on your investment.

Good luck!

lily

What is the best financial tracking software to use to get out of debt?

2009-08-03T01:26:00.000-07:00

I have been using MS Money on and off for the past two years. I've found it difficult and doesn't help as much to track debt and debt payments. It looks like it would work well for tracking investments.

Has anyone else used other software such as Quicken when their net worth is in the negative?

What is the best financial tracking software to use to get out of debt?
just like doug said, a spreadsheet!

to manage my spending in general i make a spreadsheet. at the top i put the amount of my paycheck for the week then below that deduct all my essential bills for the week. with an inserted formula i know how much i have left over for the week. so i dont say well in my account theres 100 right now so i can spend maybe 50 of that right now. i look to the end of the week and see that by the end of the week maybe i only have 20 after bills! so if i spend that 50 right now ill be short 30 before the week is through!! this could help you avoid spending money you wont have which is a first step in management. i make a new section starting with every paycheck and deduct upcoming bills so i always stay on top of things and dont end up short and have to rely on credit. so if you know after essential (fixed and variable) bills how much money you have left (say $75) then commit a portion of that and schedule a credit payment ($50?) for that week. in that week now you know you only have $25 to bs with. if you spend more than $25 at starbucks that week then you know you messed up and your week will show negative!
Reply:To get out of debt, all you need is a spreadsheet. Heck, you just need a piece of paper and a pencil.

Track your expenses for each month -- your fixed expenses like rent/mortgage, insurance, and fixed bills, your variable expenses like utilities (gas and electric), food, gasoline, etc., your discretionary expenses (dinner at restaurants, movies and other entertainment, Starbucks coffee -- anything above and beyond what's needed to live life), and your emergency expenses (things you didn't see coming, like a flat tire or a broken window).

Understand your expenses. Understand your take-home income. Then make sure that the first thing is 90% of the second thing, and the debt will dissolve.

Short of that, no software can help you get out of debt. It's the change to your lifestyle that's required.

Good luck,

Doug

How can I get out of debt when I am unable to make my payments?

2009-07-31T03:48:00.001-07:00

I am a music artist involved in a couple projects right now that have the promise of furthering my career into a profitable one, however I keep spending money on them and it's keeping me from having enough money to make my creditors payments. I have credit card debt and school debt as well. I have thought about starting a company to legitimise my efforts, but will my company become in danger if creditors see it as an asset? Also, it might be hard to even start a company with bad credit, right?

How can I get out of debt when I am unable to make my payments?
Yes, it will be very hard for you to be taken seriously if you have bad credit...don't let your student loan payments slip...your tax returns will be taken every year until they are repaid...it is nasty business...do some research...it'll scare ya....have you tried Consumer Credit Counseling Services? AKA (CCCS). They will negotiate with your creditors to keep you out of trouble and you will make a single payment that should be more than affordable. Good Luck...and if you are already suffering bad credit get with CCCS as soon as possible...it'll help and as long as you make payments and avoid further debt, you should see your credit improving slowly but surly...not right away...time is your friend credit wise.
Reply:One thing to do is to cut your costs. No expensive Starbucks in the morning, no eating out. Get yourself a travel mug at the dollar store for your coffee and make your own lunches and cook your own dinners.By the way, oatmeal, which is a very healthy breakfast to have, is very cheap and easy to make in the microwave. Follow the directions on the cylindrical container of Quaker oats and don't buy the individual packs, which are more. There are lots of easy to make cheap meals on the internet. Don't go into debt to buy a car. If you can take public transportation, you will save thousands of dollars a year in gas, repairs, tolls and insurance costs on a car. Otherwise buy a used car that is still under warranty so if it has problems it can be fixed under warranty. If you buy a new car, you are losing lots of money the moment you drive it off the lot. Hang on to the car for 5-6 years. It's cheaper at that point to pay for repairs than to make a car payment.

Don't subscribe to cable options, get your books out of the library.

Get regular exercise to keep medical bills down and so you keep your weight down and don't have to buy new clothes. Don't belong to a gym, take long walks for exercise and do exercises in your home. I walk and have met some of my neighbors that way.

If you can, take a part time job and put all of that money into paying off your debt

Buy things at garage sales. You will save a great deal of money on home furnishings, books and other items.Sometimes they sell brand new clothes with the tags still on them for a low price.
Reply:I doubt if anyone will lend you money to start a business

and you'll never get out of debt if you don't make payments and still use your cards
Reply:Have you asked for a forebarence on your student loan? In cases of hardship, student loan companies will postpone your repayment schedule. This could help a lot.
Reply:file Bankruptcy....be done with your debt...You'll start over and learn from your mistakes of mishandling credit debt!
Reply:You need to wake up and get a REAL job and put your dreams, for the time being, on hold. Creditors are not going to accept your "promises" of riches as payment. This is one of the laws of life.

What is the purpose of a debt validation letter?

2009-07-31T03:48:00.000-07:00

Can someone lead me in the right direction? I'm very confused on what my first step is. I have all 3 of my credit reports. I have medical and credit card debt. The medical is with collection agenicies and the credit cards are with them still(no collection agency as of yet). I keep reading about debt validation. Why? And with all of them or just collection agencies?

What is the purpose of a debt validation letter?
The sources listed in the previous answers are my favorite links....go there and read up!

Note one thing, however. Debt validation is required under the Fair Debt Collections Act, but only governs collection agencies, attorneys, and other 3rd party collectors. It does not cover the original creditor, unless your state has implemented their own version of the FDCA and included them (not many do).

So attempting to validate debts from credit card companies themselves may not result in anything.

One MAJOR reason for validating is because collection agencies tend to tack on lots of illegal fees and interest. You want to make sure the amount in contention is accurate. And the only way to do that is to get proof and documentation. They MUST supply you with copies of the signed contract, bills, receipts, last statements, and everything used to calculate exactly what they claim you owe.

Sending you a single statement saying you owe them $xx.xx money is NOT validation.
Reply:http://www.creditinfocenter.com/forms/sa...

Above is a website link that provides your a sample validation letter. You can download it also.

You could try to use debt settlement methods with a collection agency, but you might want to try debt validation first. Why? Because they may not even be legally entitled to collect the debt from you.

Think of it in these terms: Even if you suspected you might owe Joe (original creditor) some money, and Bob (collection agency) came up to you and asked for Joe's money - would you just hand over the cash? No. No one would. These might be some of the thoughts you would have:

How do you know that Bob is actually collecting for Joe? What legal documents does Bob have to prove that he is legally authorized to collect?

How much is the actual debt? What payments have already been made on the account? Where is the accounting of the debt, including all interest and fees? Are these fees and interest amounts legit?

Do you really owe Joe the money? Or was it actually a third party, Sam? Where is the contract showing that you made a deal with Joe and not Sam?

If you keep all the legalese out of it when thinking of legal proof, you'll have an easier time figuring out what to ask a collection agency (Bob) for to validate a debt.

The definition of a debt collector is as follows:

TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act]

§ 803. Definitions [15 USC 1692a]

As used in this title --

(6) The term "debt collector" means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. So when a collection agency is assigned, or has purchased, your debt, they are NOT the creditor. They are the debt collector and the actions they take are all governed by the FDCPA. (The Fair Debt Collection Practices Act ).What does a debt collector need to provide as debt validation?

Proof that the collection company owns the debt/or has been assigned the debt. (Bob is legally entitled to collect this particular debt from you.) This is basic contract law. It is very difficult to get a judgment without a direct contract between collection agency and the original creditor.

At a minimum, some account statements from the original creditor. If you really want to get sticky, you can pin them down on the amount of the debt by requiring complete payment history, starting with the original creditor. (How the heck did Bob calculate this debt? What fees/interest Bob has tacked on to this debt and how he determined these fees?) This requirement was established by the case Fields v. Wilber Law Firm, Donald L. Wilber and Kenneth Wilber, USCA-02-C-0072, 7th Circuit Court, Sept 2004..

Copy of the original signed loan agreement or credit card application. (Your contract with Joe establishing the debt between you.) However, account statements from the original can fulfill these requirements.

Bottom line is by sending a validation letter, use certified mail, and follow the instruction that are detailed on the site.

Hope it helps
Reply:A demand to validate letter is used to prove that you have a legal obligation to repay the debt, to who it needs to be paid and all the accounting used to determine the amount they are asking for.

It is used in cases of ID theft, and it's also used as a tactic for fighting collection agencies.
Reply:Check out the following link which will provide information on the debt validation process:

http://www.creditinfocenter.com/rebuild/...
Reply:PIE!!!!

Does anyone know the difference between Debt Settlement Companies and CCCs Companies? Which is better?

2009-07-31T03:47:00.002-07:00

I have some credit card debt and I don't know what credit card company to consider, either a "CCCS" or Debt Settlement company. Is there a better alternitive to either?

Does anyone know the difference between Debt Settlement Companies and CCCs Companies? Which is better?
i personaly work for the credit card collections department of a large UK based bank, and am faced with people in financial trouble everyday. rather than constantly harrass our customers we are trained to recomend debt management companies to card holders who are in financial trouble. consolidation loans like you would see on the televisoin, basically loan you the ammount you would need to pay off all your card debts, and then you pay them back over a period of time, many people find this easier because its only one bill to pay every month, rather than 1-10 credit card bills each going out on different days, however the interest on these cards is usualy higher than the cards interest, and as such costs more in the long run, they attract people by offering low monthly re-payments, however this just allows them to drag out the loan even longer, earning them even more money. as a collections specialist i never recomend consolidation loans

now for debt management compaines, these companies are a little different, they will usualy produce a financial assesment for yourself (the card holder) also known as an income and expenditure report. they will then decide how much you can pay to each creditor each month, they send the details to all your creditors and then if your offer is accepted you usualy get the interest and charges frozen on your credit card, and are allowed to pay back a lower ammount than usual for a fixed period of time.

one thing i will say is read your contract through very closely, as some debt management companies (such as gregory pennington ) actually wait 3 months before paying any of your creditors, even though you will be paying them money every month to sent to the creditors (and to pay for thier service) this pushes you further into arrears, and has caused some people to be issued default notices, the company do this to both earn interest on the money in thier holding accounts, but also to pro;long the ammount of time you will need thier services. in my job i only ever recomend FREE debt management compaines such as payplan, the CCCS (consumer credit counceling service) and your local CAB (citizens advice bureau) all of these comapines provide equal or better service than those you would pay for. hope this helps you out.
Reply:debt settlement, call your debt and "Settle". This means that if you owe 10,000 to one company, they offer the company 5,000 now. If they refuse, they threaten the company with bankrupcy. They still charge you 10,000 of course and simply reduce the interest rate on the money that you now owe them.

The best option is to get a new credit card with 0% on transferred balances. Transfer the highest ones to it and the cancel them. Keep doing that, until you are out of debt.
Reply:There's a lot of information about debt consolidation on this website. There are a number of ways to do this and it depends on your level of debt and your circumstances as to which would be best for you.

Do your own research, get some quotes and choose what seems 'right' for you.

Good luck!
Reply:CCCs is preferred.

myspaces.com

How do i settle a bad debt that has more than tripled since going into collection?

2009-07-31T03:47:00.001-07:00

I have been in contact with the collection agency and they said they would settle the $18,000 debt for $11,000. I do not have $11,000 nor am i able to get a loan. Is working with a debt consolidater just as bad as filing for bankrupcy? I have a family and want to buy a house and this is the only thing standing in my way...what do i do?

How do i settle a bad debt that has more than tripled since going into collection?
Offer to make payments on the ORIGINAL amount, then do it. Don't pay any extra that has been added on by collection agencies. That isn't even legal.

If you only owe one debt, don't go to a credit counseling agency. Doing so will lower your credit score. You should only go to credit counseling if you need them to keep your utilities from being shut off.

.
Reply:The 7 year rule does apply but lenders do a hard hit on your credit and I was told they look back 10 years .I would dispute the debt..force debt validation.
Reply:Did you ask them about payment plans? Most debt collectors will try to get you to pay all the money, but know you probably can't. Let them know you are trying to buy a home and need to clear up your credit and will pay them when you are able to refinance your new home in six months to a year. So, fix the credit, buy a home, refinance and payoff your debt. Most mortagage companies have free credit counceling that could help you find the best way to resolve this solution.
Reply:OC's answer is correct, but I need to correct something regarding collection fees and interest.

If a debt collector purchases a debt from a collection agency, they are buying the DEBT, not taking over the contract. Once a debt has been charged off, many states will not allow further interest unless there has been a judgment issued, and the interest rate is set by the state.

This is another of those "depends on what state you live in" situations, but DO NOT automatically assume you have to pay those huge collection fees!

Therefore, it is very important that you send the collection agency a "demand to validate" letter. In it, they must send you a complete accounting of the debt, and explain how they calculated exactly what they claim you owe. They must supply you with a copy of the agreement that clearly says what interest and late fees you are responsible for.

I have helped many people dispute these charges. In one case, the debtor was being billed a couple thousand dollars in fees. We disputed it, and suddenly they decide that that those fees were not owed!

Or maybe it was my letter to them informing them that under the FDCA we would sue them for fraud if they insisted on tacking on those fees.

Do you think it's worth a couple hours of research if it's going to save you several thousand dollars? I would think so.
Reply:Hi, I would look at a way to get that debt off your back. If you get a loan, now you have interest to pay. MORE DEBT. Going to a debt consolidation will harm your credit, But will show future lenders you had trouble in the past but took care of it. Start a new trend any bill that requires your SSN pay it on time or early and the amount agreed to pay. lastly I will have to disagree with Kacky if it is a REVOLVING ACCOUNT, like a credit card or Loan(Auto, Home, personal) It will not increase in the Principal of the loan but the interest will continue to add on as you neglect it. They will settle ask them if they will take it in 4 payments and go from there. If they say no try again(remember go from the most and slowest way you can pay to the least and fastest way you can pay them back. If the person on the phone gets nasty with you, they probably will tell them to call back when there attitude has improved(Don't yell or raise your voice) and hang up you will get a phone call back.......
Reply:Lots of people think that once they’ve filed for bankruptcy they will be unable to ever get a loan again, and ultimately they are unable to do anything financial ever again. This isn’t always true, there are%26lt;!--always ways to improve your financial standing, and there are also ways to repair your damaged credit rating.

http://badcredits.awardspace.com/Bankrup...

In fact one of the best ways to improve your credit rating is to refinance your home mortgage, this--%26gt;will help to improve your credit history in a number of different ways.
Reply:Going to debt consolidation will affect your credit. You may have to find the $11,000 or agree to make payments to them.
Reply:If the debt is more than a few years old you may be outside of the Statute of Limitations. This is the time period a company can legally come after you. It does vary by state and type of debt, but for things like credit cards is 2-6 years from the date of the last delinquency. If you are outside of this they can no longer take you to court. The other time is the reporting time for your credit report. It can only be listed on there for 7 years from the date of last delinquency.

As long as it remains on your report unpaid, it will be tough if not impossible for you to find a mortgage lender. Ideally you should negociate with them to remove the collection once you pay it off. Your other option may be a consolidator, however don't expect much more than about 50% of the $18,000. If you get that it will still show on your report as settled. This is not as bad as the unpaid amount, but it won't really help you either because it does remain.

As for the person who said it is illegal for collection agencies to add interest they are 100% incorrect. In your original agreement there is language that allows the creditor to sell your debt and when it is sold you are obligated to the same terms and interest rates.
Reply:You need a money source-I recommend borrowing from a relative. Professionals could likely get you out for 9000- or less. If you find a money source, check out the free evaluation form at the source website. They can help; good luck.

What is the best way to pay off $12000 in combined credit card debt?

2009-07-31T03:47:00.000-07:00

Im about $12000 in debt and want to get out now before I get more in debt. Im young, don't own a house and have a credit score of around 698.

What is the best way to pay off $12000 in combined credit card debt?
The best way to pay off your bills... and get out of debt!

Make sure you pay all of your minimum payments; WHILE you attack your lowest debt. Attack it in the sense of pay as much as you can. Once you pay that one off, go to the second lowest debt and so on.

This is key and it really makes you feel like you are getting your debt paid off fast.

Make a monthly and/or weekly chart with what money comes in and what money goes out.

Best of Luck,

Elizabeth R.
Reply:Check out the interest rates on these various cards.

Do whatever it takes to reduce them:

- pay down the highest one first, as fast as you can.

- transfer the balances to lower rate cards

- take full advantage of any promotional rates or offers in doing the above.

- try to get the rates reduced. The words "balance

transfer to my other card" might work magic in that

regard.

Do not put anything more on any of these cards

until you are no longer paying finance charges.

Since you are carrying a balance, every dollar you

add - even if you will pay it the same month - will

add to the finance charges.

Don't even let the words "minimum payment" cross your mind. Reduce those balances as fast as you can.
Reply:Do NOT get behind in any of your payments. Get a part time job and attack that lowest one until its gone. As Dave Ramsey says, "Beans and rice, rice and beans, and get out of debt." See if any of your junk mails offer zero percent financing for a year and use that time to really get out of debt.

Do call your creditors and tell them you're going to transfer the amounts of your cards to others with lower interest rates. If they refuse to lower them, ask to speak to a supervisor. It's worth the hour of aggravation to get a lower rate. Good luck!
Reply:Most likely there are two ways to consolidate your combine credit card debts. One of the way is Credit Card Consolidation Loan, which is a type of unsecured personal loan. Credit Card Debt Consolidation Loan shortly means one loan for all your credit card debts. When you have several credit card debts, you can consolidate it into one lower, fixed rate loan. You make a single lump sum payment each month to your credit counselor and he in turn will pay off to your current creditors.

Another way is credit card debt settlement plan wherein a debt settlement company would negotiate a lower lump sum payment to pay to your Credit Card Companies i.e. your creditors off and as a result you end up paying fifty percent or even sometimes lower, of your outstanding balance to them.

If you maintain consistency in your payment, you can expect to raise your credit score.

Here is the source of a credit counseling company named http://ezconsolidation.com who would help you paying off your debts.
Reply:Approach a debt consolidation company for help, instead of paying high rate of interest to your card issuer. Most of the debt consolidation companies provide loans to help you tide over the credit card debts. These loans are known as credit card debt consolidation loan. The advantage of this loan is that you are charged a low rate of interest. The difference between the interest charged on the credit card and the interest on the credit card debt consolidation loan is substantial, saving you quite a big sum of money.

However you should note that credit card debt consolidation loan may not be right for all. Before applying for any loan, consult your financial advisor and apprise him of your problem. He will analyze your situation, and decide whether credit card debt consolidation loan is right for you or not. Take this loan only if he recommends it.

http://debt-refinance-loan.com/category/...
Reply:Call all of them and work out a payment plan and try to get your interest lowered or stopped.

Then, make the minimum payments on every one of them. On the lowest dollar value, put all your extra effort toward paying it off. Once it is paid off, then roll that extra money to the next largest balance. Continue this snowball until all your debts are paid off.

You probably need to cut your expenses back to the bare minimum. Get rid of cable, cell phones, internet, etc. Lower your electric bill, gas bill, water bill, etc. Don't eat at a restaurant until your debts are under control. Take a sandwich for lunch. Cancel the gym membership.

Try to increase your income by getting a second job. If you have a car with payments, get rid of it, and buy a good dependable used car for CASH.

Go to the library and get "The Total Money Makeover". Read it and follow it carefully.

Go check out Dave's website as well. Yahoo is blocking his site again, so take out the spaces in the following:

www. Dave ramsey. com
Reply:1st: I would go to get a consolidation loan. Then I would make sacrifices similar to those that Rick B suggested. I would pay the 2-4 X's them minimum payment monthly. The hardest thing to do it to stick to the plan of paying more than the minimum but once it is all paid out it will be the best thing that you could do for yourself now %26amp; in the future.

Good Luck!!
Reply:Great answer! Dave Ramsey is a self taught genius. Unfortunately, most creditors are not going to give YOU the best possible deal when negotiating, so for the rest of us who don't want to take a chance on paying 30% more than we should or just plain don't have the time or know how to deal with this crap, there are some very reputable companies out there who will do all this for you, and I know of one that will even send you on a vacation or give you $200 in free gas to help you de-stress! Go here

http://www.squidoo.com/debt-reduction-se...

to check out all your options and view the pros and cons. I know this much, 30% of $12k is $4 grand. that's a lot of money to gamble with. If I were you, I would get a professional team behind me to handle ALL of it. A simple ten minute call could save you $4k? Sounds like a no brainer to me! Especially with a score that high. If you don't do this right it will be a LONG time before you see 698 again!

Good luck and God bless!

If a collection debt is paid is it immediately taken off your credit report?

2009-07-31T03:46:00.003-07:00

If a debt placed into collections is paid, do they legally have to take it off your credit report immediately or asap.

If a collection debt is paid is it immediately taken off your credit report?
NO! It's your debt, and it's actually your job to make sure it is taken off your report. Get the paperwork from the company to say that it has been paid, and it has been settled, then send that to each one of the credit reporting companies.

Then follow up with them to make sure that it was taken off...actually paid off. It usually takes about 30-60 days. Also, it can still look bad to some people that look at your credit, so make sure to explain to them that it was a mistake that you didn't pay it originally, and that you have paid it and it is cleared up now.

Good luck!
Reply:The only thing they have to do is change the status to "PAID". The collection can remain for 7 years from the first delinquency of the original account. For example: You had a Chase Visa and the last time you paid on it was Oct 2003. Eventually they probably charged off the account and sold it to a collection agency. The collection agency and Chase can report this item until Oct 2010, after Oct 2010 both will fall off. For credit scoring purposes, a PAID collection is not any better than an UNPAID collection.
Reply:no it will stay on for 7 years in most states. u need to negotiate with company by saying i will pay but only if you delete it or stop reporting it. its called pfd or pay for delete. look it up on myfico in their forum section! for an actually free credit report go to annualcreditreport.com
Reply:I was told by a debt collector that it will take 30 days from the final payment and then it will be placed as paid in full on your credit report
Reply:no it will not be taken off -- it will just show the debt is paid late!!
Reply:No, they do not. They do need to change the status to 'paid', but it will remain in your credit report for the next seven years.
Reply:It will show on your report as paid, but it will also be listed as being deliquent prior to being paid.
Reply:It has to be done in a reasonable time, depending on how often a company sends updates it may be anywhere from about 30-60 days. When they do update it the only legal requirement, per the Fair Credit Reporting Act(FCRA) is that what they report is correct. So if you paid if off they must show that. They are not under any obligation to remove the listing.

If you want them to remove it you must send them what is known as a "Pay for Delete" letter. This basically states that once you pay the debt they will remove the listing. Only after you have something in writing from them is when you should pay them any money.

How much secured debt are you allowed to have and still file ch 13?

2009-07-31T03:46:00.002-07:00

I know there is a limit to secured debt, i want to know what it is.

How much secured debt are you allowed to have and still file ch 13?
Different states have different rules. Plus, there are federal exemptions. You'll need to look up your state and see what they allow.

Genealogy

Is a debt collector supposed to be discussing with someone else about how much money I owe?

2009-07-31T03:46:00.001-07:00

I don't think it was the credit card debt collector's place or position to tell my former foster mom how much debt I owe. I'm a grown woman with a college degree, %26amp; the foster mom has nothing to do with my finances. %26amp; then she used it against me %26amp; threw it in my face %26amp; made me feel bad. I fell into debt as a result of Hurricane Katrina %26amp; had trouble getting out, ever since. %26amp; then, the foster mom tried to tell me I need to learn how to manage my money. I already do. I just have an unfortunate situation that I'm dealing with right now.

Is a debt collector supposed to be discussing with someone else about how much money I owe?
It is a violation of Federal Law for debt collection agency to discuss any aspect of a debt they are trying to collect with anyone other than the debtor or their spouse (and in many states they can't even discuss it with a spouse). You may find that you will no longer have to pay the debt depending on the laws of your state.

Also, I know of professionals who can help you out of your situation since it is Katrina related credit issues. You may contact me if you want further information.
Reply:Report the debt colector to the Hypa act... debt collectors can not share any information to anyone... http://www.creditbloggers.com/2006/04/re...
Reply:No.. that kind of behavior is illegal under the Fair Debt Collection Act. They do things like this to scare you and get you to pay up.

You should report them to the Federal Trade Commision.
Reply:absolutely NOT.....huge list of rules and regs this person has broke by discussing your situation with them, BUT maybe in the company's defense did you foster parents give them the impression that IF they knew the details they would help out sorting out the mess you are in.

First step is to find out just how much the foster parents know, then go back to company go above this persons head put ALL of this in writing.....phone calls are where you might lose your temper [rightly so] but can weaken your stance of the one being in the right..............when you write to the company give them a deadline of say 8 days to respond with their action plan of putting this matter to rights and ask that this reply is also in writing, when you send off your letters ensure that they are signed for and you have records of them.

Sorry to hear about your run of bad luck, but hopefully this is just a glitch for you and things will be back on track real soon.
Reply:Well you need to rport them to their supervisor. Even if it's your Mom or Dad the credit company shouldn't discuss your situation with anybody but you. So file a complaint and when you talk to them don't be nice be as rude as you can be and let them know how you feel. And remember how they would treat you if it was the other way around, so enjoy it. Kinda like pay back. So file a report on them and tell them your reporting them to the Better Business Bureau, too.
Reply:Collectors get a % of what they collect, regardless of whom they get it from.

Some will get aggressive with family, especially parents or grandparents trying to scare them into paying for the child. Years ago they traumatized my elderly parents , telling them horror stories of what they would do to me if it wasn't paid.

After I found out, i told the parents to just hang up on them, then I called the collections agency . . .

I told the agent I was coming to smash his dialing fingers so he may want to train for other employment.

I told his supervisor that due to the employees tactics, and traumatizing my elderly parents, I would NOT be paying the bill EVER . . . and asked how well those stupid tactics were working now ?

Report the loser, to the authorities and his boss. (although the boss is probably of the same ilk)

Can a debt collector get their money back from an estate sale if the debt is from more than 7 years ago?

2009-07-31T03:46:00.000-07:00

So, if you have debt from 10 years ago and you buy a house and sell it before you die, can debt collectors get their money from the estate sale?

Can a debt collector get their money back from an estate sale if the debt is from more than 7 years ago?
If a lawsuit was filed and the company won than they can collect. They won't be able to file a lawsuit after the statute of limitations, which in some states is up to 15 years.
Reply:The first answer was right

The Statute of Limitations begins to run from the

day the debt, or payment on an open-ended account, was due. This information can be a powerful weapon in unburdening yourself of old debts, because creditors have a limited time in which to sue you.

The first thing you should do is determine if the statute of limitations for collecting a debt in your state has passed. In most cases, a debt will disappear from your credit report after seven years. If the debt is older than the statute of limitations, you should tell the bill collectors they are wasting their time by harassing you for an uncollectable

debt, as the original creditor or the assigned collection agency cannot take you to court to get a judgment.

Trying to collect on a debt is also a violation of the

FDCPA. Your credit report will tell you the date of the last activity on your account (the last time that you made a payment).

If necessary, send the collector a copy of your credit report with the date of last activity circled, along with a certified letter stating that the statute of limitations has expired.

Please note that the amount of time a late payment can appear on your credit report has nothing to do with the statute of limitations. This is a very important distinction. Even though a debt may no longer legally appear on your credit

report after seven years, you could still be sued for the debt if the statute of limitations in your state is longer than seven years.

For more info go to www.harrisandassociatescreditrepair1.com
Reply:Don't be fool, just because the credit file doesn't show an debt you owe over 7 or 10 years doesn't mean your in the clear, your debt can be sold to another creditor, who would put it in the file and draw interest onto you existing debt, even dead accounts, by law they can chase you up to 30 years, all they got to do is file your debt in court and serve you paper with court fees and new charges, this process can go on for 30 years and they can by court order freeze your bank accounts and the banks have no other choice buy to release your funds, if you have a house that's is free and clear or if you have the deed, then transfer the deed to a shelf corporation, this is asset protection, a corporation speaks for itself and by can not be touch by your creditors, you can put your profits in the corporation as well and they can not touch your money, how ever you must pay annual due corporate fees.
Reply:Well first off, you can pretty much ignore Calvin's answer. Not sure where he got that tripe from, but none of it is correct.

If the statute of limitations has expired like Hope mentioned, then you no longer have any legal obligation to pay.
Reply:It depends on the statue of limitations in your state.

http://www.expertlaw.com/library/limitat...
Reply:While you are in Debts Here are your options!

Do nothing!

This is actually one of the option alot of people try doing and finally put themself into deeper problem. You will eventually start getting calls from collection agencies and they will offer you settlement of around 50 to 70% meaning you will have to pay around 60% back in 1 payment which is not easy...

Debt Consolidation

Debt consolidation loan will help you to consolidation all your debts into 1 and you will start making 1 payment every month and they will start paying your creditor. This is something which will lower your interest rate but you need to understand debt consolidation will not do anything good to the principle amount.

Bankruptcy

Filing for a bankruptcy is another option but i am sure you understand you don't want this because this will stay on your credit report forever. This takes control out of your hands for more than 7 years and you still make monthly payments, so lets forget about this for now

CCCS - Credit counseling program

CCC organizations are usually designated as non-profits by the IRS, although many of these firms recently lost that status because the IRS felt that had "for profit" motives. These organizations combine your payments to one monthly payment, where you pay back all of the principal, some interest and some fees. Many CCC organizations receive funding from creditors as well as payment from their clients.

Many times these programs are generally drawn out over four to six years and less than one out of four actually complete the program. Many times these payments are higher than the original credit card payments and this program can have a non flattering affect on your credit.

So here is what you need!

Debt Settlement

Debt settlement or debt arbitration is a legal process used by both people in debt and their creditors to negotiate a settlement of an existing legal debt. This proactive approach is the most cost-effective option to pay off your current debt while avoiding the negative effects of bankruptcy. Any person owing credit card debt, or any other debt, has the legal right to contact and negotiate with the creditors. This practice however, takes time to master and certain skills to get the maximum benefits. The Debt Settlement Company works diligently and professionally with your creditors on your behalf to reduce your current unsecured debt balances down 40-60% by arbitrating an agreed settlement amount with your creditors.

Me %26amp; wife were in the same problem around a year back and we went with this debt settlement company. They reduced our debts down to 48% and obviously that was a big Relief... I like talking good about this company! Debt Care USA 800-266-9085

How do I know if the debt settlement company I'm working with is competent?

2009-07-31T03:45:00.003-07:00

I'm so worried about getting screwed by an incompetent company. Also, I checked with Debtmerica and they're trying to charge me a 15% fee to do the debt negotiation. I've checked with a few other places too and somebody recommended going with an attorney-based debt settlement company to get better results. Any help would be appreciated.

How do I know if the debt settlement company I'm working with is competent?
I've recently looked up some debt settlement companies for my sister so let me give you a little info:

1) Always ask if the company is a member of TASC (The association of Settlement Companies) They are the Better Business Bureau of Settlement companies and make sure these companies are operating within compliance regulations.

2) Always ask how much it costs. Usually there's a setup fee, a servicing fee, and a negotiation fee. The setup fee will usually range from $100-$200. The servicing fee can go anywhere from $70-$10/month. The negotiation fee ranges from 8%-15%.

3) It would definitely behoove you to check out any attorney or attorney-based company to handle all your debt settlement as they are stricter on compliance guidelines.

Try going to: www.tascsite.org and looking up some companies.

A good blog I read: http://iclosem.wordpress.com has some great articles on debt settlement. I would definitely look into that.

I was listening to the Howard Stern show the other day and it looks like KC armstrong just signed up for debt settlement with this company called Envision Debt Solutions (www.envisiondebtsolutions.com). I ended up sending my sister there as they answered all my questions right. They have an 8% retainer fee (since they're an attorney based company) and all the contracts you sign are with the attorneys. They were actually very courteous and professional and guided my sister through the whole process. Give them a call at: 800-515-9603

What is the best way to deal with credit card debt? Consolidate or Credit counseling company?

2009-07-31T03:45:00.002-07:00

Just had a major surgery and racked up some major credit card debt while being out of work. Just looking to see where I could start now that I am going back to work.

What is the best way to deal with credit card debt? Consolidate or Credit counseling company?
If you are able, take out a home equity loan. Pay off the credit card bills with the proceeds. Then pay off the home equity loan as quickly as possible. This is a win-win situation. You get the credit card bills paid off, plus the interest on the home equity loan is a tax deduction.

Or, you could line up the credit card bills by 1)interest rate, 2)highest amount owed to lowest amount owed, or 3)lowest amount owed to highest amount owed. Whatever way you line them up, start paying them off.

I preferred the lowest amount owed to the highest amount owed. I paid the most money to the lowest balance, then paid the remaining bills just above the minimum required. As the lowest bill was paid off, I then applied that same amount plus the minimum to the next highest bill. As that bill was paid off, I then applied that amount plus the minimum to the next bill, etc.

Now Susie Orman would disagree with this method, but I found great satisfaction in seeing the bills disappear more quickly than if I had paid off the highest interest rate bill (regardless of balance) or the highest balance bill first. Plus, I think when you have big bills hanging over your head, you need to see progress as quickly as possible. It really gives you a boost to see those bills drop off the face of the earth.

Good luck!
Reply:Pay it off as fast as you can. Sometimes you can kite it for a while. Convert it to a mortgage is sometimes cheaper interest and tax deductible. You don't sound like you need counseling . Consolidate only if you can get a cheaper interest rate including fees.
Reply:Consolidation is the best solution available to the credit cardholders to improve their future credit. People go for debt consolidation for many reasons: prolonging the loan period from 5 - 15 years and reducing the interest rate. Consolidation allows you to go for a loan with lower interest rate than the one you are currently paying. Besides it simplifies the loan repayment as you are paying only one lender in place of various payments to different lenders.
Reply:I recommend to see a credit counselor to find a best payment option for your financial situation.

For example: Some people took out an equity loan for their house to pay for their credit card debt, however it also caused to lag in payments when the equity loan interest increased. Why lose your house over a credit card loan? So, I suggest go to a reputable credit counselor or financial manager.
Reply:I'd recommend credit counseling. See what they have to offer. Have you tried to contact each creditor individually to see if you can make different payment arrangements or if an interest rate can be lowered to lower your payments. A lot of times creditors would rather work with you than lose money. If the credit counseling doesn't provide any sound advice, then try debt consolidation...but be wary of some of the places that offer this service.
Reply:Debt managers cant do anything for you that you can not do for yourself. They only mess up your credit even more and charge you for it.

Additionally, since collectors and creditors have not obligation to even discuss the account with your credit manager and your credit manager can not stop creditors and collectors from sueing you or calling you directly...whats the point?

You need to do it yourself my friend. Go to www.annualcreditreport.com and get a free credit report. You can do that right now. Check out your debts and start with the ones that want to sue you first. Before anything starts. Call them and begin to negotiate. I know people say bill collectors or agents are horrible but that is not always the case. Maybe in some cases but we dont all bite. I promise. (wink)

Look...the best time to negotiate debts is at the end of the month when they are frantic to meet their quotes.

The best way to go about it is to take it one creditor at a time. Make a deal and begin to settle. Start by offering 30% on credit bills and 15% on medical bills. The collector will start working the number up and negotiating. Give them the story that you are broke but dont lie to much as they have means of checking and it might upset them than they wont be open for such negotiations. Once you have a deal than its a deal and be sure to get it in writing before you pay anthing. At the same time try and make them throw in there that they will delete it off your credit report. Most of them will say pay all and I will others may agree. Make sure that is in writing as well. Some collectors may even accept your settlement in a couple of payment if it is too large for you to make. Naturally they will try and up the limit as much as you can but once you reached your max than put your foot down. If they dont take it at that moment...they will call you back when they are catching heat from the boss for not puting enough $$ into his piggy bank. Trust me.

If you can not afford to make settlements than call them and negotiate a payment plan with them that you are comfortable with and know you will not default on. If they ask you to sign a payment plan agreement. Be sure its not a stipulation of judgment. Whats that?? Its a legal doc that says if you default they can submit it to the court and get a judgment against you without even bothering with litigation.

Make your payments and your home free.

Be sure not to request validation on accounts that you know are valid. If they are and the collector knows they are...it may make them think your taking them for a fool or trying what they call a "stall tactic". Than it might upset them and make the pull the trigger and have you served right away. You dont need that!!!

But if you see something on your credit report that is not valid. File a dispute with all three major credit reporting bureaus and call the collector and ask for validation.

Good Luck

lilac

What are some of the ways that collectors/creditors use to collect a debt?

2009-07-31T03:45:00.001-07:00

In a normal work day of a debt collector, what are some of the tools or methods they use to collect a debt.

What are some of the ways that collectors/creditors use to collect a debt?
Online skip tracing, calling references ... searching info from utility bills..
Reply:Small steps like paying your bills on time and using only part of the credit available to you. Also use your credit cards for making small payments regularly, so that it is reflected in your credit record. More tips available at http://www.acreditlibrary.com/buildcredi...
Reply:they harass you!!!!! they call you 5 to 6 times a day until you either just don't answer the phone anymore or you give in and actually that's all they want you to do anyway.
Reply:They use all the ugliness you can think of. Hope you are not asking this question to become one of these ugly debt collector. If so, remember... goes around, comes around.

Visit http://www.privacyrights.org/fs/fs27-deb...
Reply:In my country, they put your name and address in the newspaper and ask "would the following persons or persons knowing of their whereabouts please contact...(name of credit agency). They also come to your house early on mornings or on your job to collect the money or you. Some take you to court and you have to pay their fee and the money you owe. Some send you a letter asking you to contact them to make arrangement to pay back the money and that is the first thing that they will do.

If it is for child support that you have to pay through the courts, then they will send about 3 or 4 Marshalls of the Court to put you in jail until someones comes and pay the money on your behalf.
Reply:Lots of times a colector may call either a family member or a reference and act like a old school friend trying to find out everything about you even down to religion and try and at times use that against you.
Reply:They will call your house all the time . Your credit will be tagged with the bad debt . If it is a car boat or something they can take back the will repo it .

What persentage of debt to the military can the IRS withhold from a person ?

2009-07-31T03:45:00.000-07:00

Is there anyway to reduce the debt(awol) that the military withholds from ia persons ncome tax yearly? Ex. A way to have it forgiven

What persentage of debt to the military can the IRS withhold from a person ?
You might want to ask this question to the IRS. Got to thei r website and ask there.
Reply:I believe they can take your entire tax return. Check with your payroll office so you pay the minimum amount in throughout the year.

How can I pay off a debt I made online?

2009-07-31T03:44:00.002-07:00

I just got my first credit card and plan to use it for online purchases; what methods are available to pay off a debt? I primarily want to know if it's possible to pay off debts using my debit card.

How can I pay off a debt I made online?
by having a job. dont get a loan or else that will put u in more debt.
Reply:Those surveys are total bunk, sure they pay you, in vouchers or points you must earn, not actual money, unless you think 15-20 minutes per survey taken is really worth $2.00
Reply:WARNING!

Stay away from CashCreate, Treasure Trooper and other survey Web sites.

It is a waste of time and will cause you unhappiness.

If you choose to be suckered in and sign up to take surveys and receive, free trials considered you were warned. The minute you give them your credit card and personal information you have now opened your computer to unwanted cookies on your hard drive, annoying pop-up windows and if you are on a PC you open your computer to viruses that can wipe you out.

A lot of work to collect the "reward payments" that payout is not worth the effort over time. You will need to sign up for many types of offers, most of which require you to use a credit card. You start a week trial service with varies types of businesses or services, such as, an Internet service provider, book club, credit monitoring service, etc. to get your reward. If you don't cancel the trial, you end up being charged for the service and each service has different rules about how and when you can cancel. Very cumbersome!

Since you will need to sign up for at least a dozen offers before you get to $100 in rewards, it's very easy to forget what you have signed up for, or the problems you will have canceling in time to to be charged the full amount. The Cash Create recruiters you see here over exaggerate how much money you can earn because once you've done the high-dollar trials ($8-10 each) once, you are left with small rewards of a dollar or two. The survey business is not an efficient way to make money and you are more than likely to loose in the end.
Reply:here's a link on ways to make money online without investing any money http://www.makemoneyfourfree.com

How can I find out if my rebate check was held for a debt?

2009-07-31T03:44:00.001-07:00

My rebate check was supposed to be here already, but it isn't. If it has been taken for a federal debt, is there a website that I can go to or a phone number I can call to find out what debt was paid etc?

How can I find out if my rebate check was held for a debt?
Sure. 1-800-304-3107
Reply:You're welcome. TFTP. Report Abuse

Reply:I think the IRS can only collect past due child support, defaults on student loans and money owed to them.
Reply:Many of us haven't seen our checks yet-

floral shops

How can I rebuild my credit after paying off a debt?

2009-07-31T03:44:00.000-07:00

I'm 21 and I ruined my credit. I recentley paid off all of my almost $5,000 debt but now all of my accounts are closed. Is there any way for me to rebuild my credit completley or is it too late?

How can I rebuild my credit after paying off a debt?
Are you sure all of your accounts are closed? Or you just can't USE them? There's a difference, and it's a huge one. If you just can't USE them, they still show up on your credit report and count in your favor, because you've had the accounts open for awhile and are 'not using them', or so it looks. If they ARE closed, and you're sure of it, call each individual card company and ask them to re-open the account for you (it can be done... I did it with my Discover Card two months after it was "closed out.") Tell them they don't have to let you USE the account, you'd just like to re-instate it for credit scoring purposes. Most of the time, they will do it, because it's not like they have to let you USE the card. If they won't do that, wait three months. I say that because credit companies update your FICO score every three months. Once your accounts are closed, you will stop getting negative remarks for having late or missed payments, so your FICO score will go up a bit. Get a pre-paid credit card through your bank and DON'T use it. Buy a pair of socks on it, then pay it off immediately. This opens the card for you, but shows a higher unused balance. Another thing to do is to get a home equity loan (don't freak out... just read) on a Revolving Line of Credit. It doesn't matter what your interest rate is, because you're not going to use it. Getting approved for the loan allows you to take nothing upfront (because it's revolving, like a credit card) but allows you to have a "$5000 credit limit" or whatever you were approved for. When you have "$5000 of available credit" that you DON'T USE, it will skyrocket your FICO score and work in your favor BIGTIME. Most of your credit score is based on whether you pay your bills on time, but another huge part is your ratio of used credit to available credit. Just make sure you DON'T USE the equity loan. They say you can only raise your FICO score about 50 points in one year TOPS, but that simply IS NOT TRUE! I had a client whose FICO I got to 680 after he was at a 510 the year before. Six more months and he'll be at a 730, which puts him in the TOP category with the lowest interest rates. Good luck!
Reply:t's very easy to say the least. Go to http://www.newmillcredit.com. We have a store house of good info there and if you choose. We can do it for you. And of course, you can repair it on your own for little or nothing. But if you're like most people and do not want to be bothered with the head-ache of trying to figure out where to send in necessary paperwork, just let us do it. We are one of the cheapest one's out there. And we do it legally! Don't be fooled by people that say that they can get everything off because in all actually, there are some things that can not be removed unless you pay it off ( such as child support ). I hope this helps!
Reply:In order to build up credit and establish a good credit, you must show a number of stabilizing attributes. Most notably, your report must prove to the lender that he will get his money back. Here are some suggestions:

OPEN A BANK ACCOUNT

Open a bank account and use it responsibly. This is the first step in establishing a financial history.

CO-SIGN

One way is to piggy-back onto someone who already has a good credit history established and is willing to co-sign. Once the co-signing has occurred, you simply make payments on or before the due date. In time you will have established a credit history.

SECURED CREDIT CARD

Apply for a credit card. Shop around and only apply for a card if you can meet the lender's requirements. Responsible use (spending within your budget and paying your bill on time) will help you build a good credit history.

DEPARTMENT AND GASOLINE CREDIT CARDS

Since gasoline credit cards are not revolving (cannot carry a balance forward month-to-month), often they are easier to obtain than regular credit cards. Similarly, some department stores offer revolving credit for a specific purchase and this is sometimes easier to establish. It is also a great way to establish credit.

This website can be very useful for you:

http://www.howtoestablishgoodcredit.com/...
Reply:I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.
Reply:of course you can. it may take some time, but...

open a credit card and use it, WISELY, and pay on time. That's all there is to it. Should be good in less than 2 years if lucky. But hey, you're only 21.

www.letsgobble.com
Reply:To be honest with you, the times you've been reported late's already a dead issue at this point, if you were late you were late. What's done is done. Hey people make mistakes, that's why pencils are made with a piece of rubber at the end. Let's move forward. The main thing is not to accumulate anymore debt than you already have. Establish a banking relationship by opening up a checking and savings account. After you've had that awhile, ask them if they offer secured credit cards that you can secure a deposit (let's say like $200) for the same amount in credit. If you're able to get one, I'd strongly suggest that you keep the balance low, if not 0 every month. That way, they can see that you're responsibile and ultimately convert it to an unsecured card. Like I said again, use it for EMERGENCIES only. If you have been paying for things on time like rent, utilities, phone, insurance, etc., you have the right under the FCRA to have that reported and considered in the future when you apply for credit. Click on this link at check out this website ( http://www.prbc.com/consumers ) This agency (PRBC) is a reporting agency that consumers like you and me can enroll in and have up to 3 years historical payment history reported. All that information is comprised into a Bill Payment Score (BPS). This can be used along with your standard credit reports whenever you apply for credit in the future. When your credit is evaluated, lenders don't always see the "big picture", and tend to have a preconcieved notion that you were irresponsible, or just a flat out dead beat, instead of "here and the now". 35% of your traditional credit report is comprised up of payment history, yet it doesn't always give an accurate picture. The BPS does that. If you're able to report that you're paying your rent and utlities on time that would at least let it be known that you're making an attempt to handle your business. There's a lot of information on the website, I strongly urge you to check it out. I did, and it's worked wonders for me.

What happens if a parent sells a home to a child and the debt never gets paid off? Like if the parent dies?

2009-07-31T03:43:00.002-07:00

What if the parent agrees to allowing the child to pay what they want, but assume full ownership of the home? And the debt is not fully paid off? This would be a private debt not involving a bank.

What happens if a parent sells a home to a child and the debt never gets paid off? Like if the parent dies?
The debt would then be paid to the estate of the mother, and distributed to the beneficiaries of her will.
Reply:well being that the own the home it would depend if they put the lien (mortgage) on title, if it is on title, and there is no one to collect it, how would you have to pay it,

however if your parents keep the house titled in their name and they die without a will (trust preferrably) you could be sol
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://doiop.com/028gog

How can I find out who bought my credit card debt?

2009-07-31T03:43:00.001-07:00

I've stopped paying on several credit cards for over a year. Is there any way to find out who bought the debt? I now have the money needed to pay these companies back.

Too bad I didn't have a house, otherwise the Democrats would have paid for it.

How can I find out who bought my credit card debt?
If you haven't needed a credit card up until people have been telling you that you need one, don't worry about it. You really don't 'need' one. The only reason that I got my credit card (aside to help with my credit score!) was for emergiencies-and that was at my family suggestion. I ended up applying for a card through my bank/federal credit union. They will be easier than any other place, especially if you have been with them for a while. Make sure you have NO annual fee. Aside from that, pick and choose.

http://hubpages.com/_36442/hub/How-to-Se...
Reply:The credit card company will do that and check your account if you want to request for your account detail they will give it but not all credit card company will give it free. If you would like to apply for credit card with zero apr balance transfer you can go to smart credit card and they have some good offer for you.
Reply:If you aren't offended by taking advise from a Democrat and Obama supporter.....

Pull your credit reports...These should list who has your debt.

annualcreditreport.com is the real free site to check your credit file for free once a year. NOT freecreditreport.com

https://www.annualcreditreport.com/

It's very important to understand that once your accounts are charged-off...that the damage is already done. Don’t make the mistake of simply cutting a check to whatever collection agency has the debt for the charge-off and assume that your credit rating will be magically restored...Doing so will not remove it from your credit reports. It will simply be updated to a "Paid Charge-Off," which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid or not, can remain on a consumer's credit reports for up to seven years. Even if you could negotiate the removal of the item from your credit report with the debt collector, the original creditor will continue to report the charge-off.

Renewing contact with debt collectors about old debt may trigger very aggressive collection activity...Your goodwill effort to pay back the debts may be met by a barrage of abusive phone calls from debt collectors...even lawsuits. Making recent payments on old charged-off debt resets the statute of limitations on the debt in many states...which would enable the debt collector to immediately sue you for the debt. In my opinion, this potential risk is the not worth the slight increase in your credit score from paying off old charged-off debt.

If you're going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report anyway. At most, offer to pay 25%...since they paid pennies on the dollar for the debt. If you do decide to pay, get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. Never accept settlement deals over the phone...The debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money.

You have to be VERY careful in this effort...Mail them a vaguely worded statement like:

I am willing to settle this matter for 25% of the original amount. This is in no way an admission of this debt, but rather an attempt to settle this matter. Your firm must send me a written agreement on your company's letterhead that you will accept this amount as "payment in full" and that is issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.

Maybe it's best to leave things be and not contact them....
Reply:the companies that you owed debt to, ate it. They have Insurance against such things. They lose nothing.

If wanting to rebuild your credit..get a secured credit card.

No way to pay back the monies you owed.

Nice that you would want to..bless you...HUGS!!
Reply:Contact the company who you originally had the debt with and they should be able to provide you with the relevant information.

If we have debt should we pay this off before starting a retirement fund?

2009-07-31T03:43:00.000-07:00

My husband and I have quite a bit of debt (mostly student loans). We are wondering if we should put all our available money to pay off these loans or start our retirement fund immediately? We are 22 and 23 years old. If we put all our money into paying off the loans, we could do it in about 4-6 years.

If we have debt should we pay this off before starting a retirement fund?
You should always pay off debt as quickly as possible because the interest you are paying on the debt is always higher than the interest that you can get on your savings.

The only two exceptions to this are:

a.) If you are paying a very low rate of interest on your loan, for example UK student loan or subsidised loan from employer.

b.) If you have no savings at all, you should always aim to have a small nest-egg equivalent to a couple of month's salary for emergencies.
Reply:Keeping your bills paid, very good. Student Loan interest can be tax deductible. So, depending on your income, if you don't prepay the loan you are redirecting 25% of your payment to the loan company from what you would otherwise pay the govt for taxes, effectively lowering a 6% rate to a 4.5% rate.

You can invest your money places where it will safely earn higher rates of return (7-8%+), however that isn't in CD's or Money Markets. And your principal is just as safe, maybe safer.

There are many factors you would need to review and consider prior to making a choice, but I would highly recommend that you explore letting your Student Loans ride and redirecting the early payoff payments to much more effective wealth building options.
Reply:definitely put it toward paying off your loans. No matter how long you wait they will never go away. And it would really suck to have to get into the money you were saving for retirement to pay off a bill you knew you owed. I would pile whatever i could into these debts. Start with the smallest. Pile any extra cash you have toward that until it's paid off. keep doing that with each one until they're all paid off. If you do it that way, it could help shorten the time you think it take to pay all these off.
Reply:Looking for a debt consolidation loan? Freedom4U can compare the USA’s best debt consolidation loan deals online, and offer fast, specialist assistance, whatever your past or current debt problems.

Visit: http://dbt99.com

I'm living proof that it works, with today's gas prices i used Freedom4U at the right time!

Will a debt with a statal university get me in trouble with immigration?

2009-07-31T03:42:00.003-07:00

What is the best way to put formulate a convertible debt document for a start up.?

2009-07-31T03:42:00.002-07:00

In a sense what is the best way to put together a convertible debt document, meaning how many years, what percentage interest, how much a discount should be given at conversion, what other benefits should be included for the investor and the company? I would like to raise $750,000 with this. I don't think I would need another around of funding but just to be sure, I would want the investor to have the best of both worlds.

Your thoughts.

What is the best way to put formulate a convertible debt document for a start up.?
Maturity should be the period of time during which you expect to either be able to repay the principal or become a business entity viable enough to refinance convertible debt with straight debt. As to interest rate and conversion ratio, you pay with one for the other. If you want low interest rate (these days, zero-coupon convertibles are not unusual), you have to pay for it with a higher conversion ratio. If you want a low conversion ratio, prepare for a higher interest rate.

You should also know that valuing convertible securities requires some serious professional training. At the very least, you should understand the Black-Scholes model. Professional convertibles traders go even deeper; they use binomial models...

tanning

How do I go about asking the collection agencies to pay off my debt?

2009-07-31T03:42:00.001-07:00

I only want to pay pennies to dollars. Think about it, I am willing to pay but not all those fees added or could there be a simple way of asking to pay off a debt cheaper than what they want?? For example my phone bill went to the collection agency 3 years ago They want $500 (I initially only owe $290) I am willing to pay $300.Any clever way of asking to reduce my debt??

How do I go about asking the collection agencies to pay off my debt?
Actually, a 3 year old phone bill could probably be settled for a lot less than $300.

Send the collection agency a letter. Be very careful not to acknowledge the debt (you could reset the Statute of Limitations (SOL), the timeframe to bring lawsuit). Literally say "this is not an acknowledgment of this debt".

Indicate that you would like to expedite removal of this derogatory item on your credit report and are willing to pay $125 if they will delete the item from your credit report.

If this settlement is acceptable, have an authorized agent of the collection agency sign and return of copy of the letter to you. Upon receipt of their acceptance, you will send payment.

They may give you a counter offer. Just make sure you have a written agreement before you pay. Do not give them direct access to your bank account.

The older the debt, the more likely you an settle for less. If the forgiven portion of the debt is $600 or more, you may get a 1099 and have to pay income taxes on the forgiven portion.
Reply:you can negotiate - they don't have to agree and your credit score won't recover any faster by not paying your debts in full - just call them - nothing clever needed
Reply:Be honest with them.
Reply:bdancer is absolutely correct : Be very careful not to acknowledge the debt...

Before you even attempt to pay off the debt, make sure it is validated (ie do they have the LEGAL right to collect this debt?)...
Reply:Simply tell them that you want to pay all of your debts but you only have a portion of the total. "Would you be willing to accept $300 as payment in full?"

If they confirm you have to GET IT IN WRITING. Otherwise they'll say, "sure, send a check for that amount" but they'll come back for the rest after your check clears. Have them confirm in an email. That should be easy for them.

Can the same unpaid debt from two different collection agencies remain on my credit report?

2009-07-31T03:42:00.000-07:00

If you have an unpaid debt that is sold to a collection agency who then sells it to another collection agency should both collection agencies for the same debt remain on my credit report or should only the last collection agency to buy the account be on my credit report? Is this not considered a duplicate account since it is the same debt althought it's with two different agencies?

OR

Is each collection agency allowed to report the exact same debt being that it was sold to them from a prior collection agency which is also on the credit report?

Can the same unpaid debt from two different collection agencies remain on my credit report?
The only person who can post to your credit report is the person with the legal right to collect it. Therefore, duplicate listings must be deleted.

Many times these creditors will send your debt to an agency....and after a while if no responses they will pass it to another agency. The result is both agencies posting to your report.

Send a dispute letter to the credit bureau, and validation demand letters to the creditors.
Reply:You can have this fixed - write to the credit agencies (all 3) and let them know that this is a duplication. Something should be removed. (Same thing happened to me - I send as much documentation on the problem as I could find to ensure that there weren't any questions.)
Reply:The only collection agency who can put a listing on your credit report is the one who has a legal right to collect the debt. If collection agency A sells the debt to collection agency B, then collection agency A must remove their listing.

How do you go about consolidating PRIVATE student loan debt with a home mortgage?

2009-07-31T03:41:00.003-07:00

We are looking for a home about $150,000 and we have about $70,000 in Private student loan debt at 7%.

How do you go about consolidating PRIVATE student loan debt with a home mortgage?
There's a good article at eHow on steps to take to begin tackling your debt. Take a look at it:

http://www.ehow.com/how_2326032_avoid-es...

How to Stop Escalating Debt

It includes information on companies that can help you with debt consolidation and reduction.

You can also look here for tips on earning some extra cash online:

http://www.ehow.com/how_2254361_money-in...

How to make money on the internet, scam-free

Lastly, here's an interesting alternative to conventional lending...getting a "social networking" loan from Virgin Money (from the same folks who run Virgin Airlines):

http://www.ehow.com/how_2310995_student-...

Social Loans from Virgin Money

Hope these help.
Reply:You can go for student loan consolidation program wherein you can reduce your debts and pay off all. You can do this either by taking a loan where you are avail of two types of loan one is unsecured and other is secured or you can go for a management plan wherein you have to pay one fixed monthly payment as per an affordable debt management plan provided by your debt counselor.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference who provides student loan consolidation program.
Reply:Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.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://d6b0.easyurl.net

How do debt counselors make their money?

2009-07-31T03:41:00.002-07:00

Although they advertise free debt counseling, they are a company so they have to make profits but how do they do this? I teach high school business classes and would like a better understanding of how it works.

How do debt counselors make their money?
they perform a management service (which i disagree with think they suck) and after the free counseling service they charge a fee for managing you money!!! i.e. you pay them and they pay your bills!!!
Reply:I think they would consolidate your debts or change your loans to a company that gives them a commission.
Reply:It depends.

"Debt Counselors" are just that...they will go over your financial situation and show you how to budget, and pay your bills. They will give you some educated advice on what to do. There are lots of non-profit companies that offer this for free......but it's just the start.

You need to look at who these "debt counselors" work for.

Some work for attorneys that specialize in bankruptcies. They will try to talk you into filing BK, and they get a nice fees for doing the court work.

Others work for loan companies, and they will make their money if they convince you to take out a consolidation loan.

Still others are tied into "credit repair/settlement" companies. These guys try to sell their services of working with your creditors to eliminate or lower your debt and interest.

Then we have the "debt management" companies. They make arrangements with your creditors to pay your debts. You pay them a set amount, and they pay your creditors. They will charge a fee for this service.

My advice is to first make sure who this "debt counselor" works for, so you are not steered into a service that you don't need, or that will actually do you more harm then good. Many of these companies are scams.

Better yet, do some research. There is a tremendous amount of FREE information available on the internet that shows you how to manage your own debts, and deal with creditors. The following links are a good place to start.

Yahoo Alert! I am not associated with these sites in any way. I offer them because they have a lot of good FREE information. LAY OFF ME!
Reply:I went through a multi-year program with Consumer Credit Counseling Service, billed as a "non-profit" service. They charged me $25 per month all the while I was enrolled. They got some companies to reduce or eliminate additional interest. All except Sears, who wouldn't budge, but continued to assess huge interest.

All in all, I'm quite glad I did it and I would recommend (and have recommended) this organization.
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://urltea.com/31vc
Reply:I was a debt counselor.

The money comes from you.

We cut a deal with your creditor. Which you could do yourself.

And then take a percent of your now lowered payment.

Remember this; "not for profit" does NOT mean nobody makes any money.

Look at the Catholic Church, rich rich rich
Reply:don't ask me how the economy works.
Reply:They take some of yours...as fast as possible.
Reply:Debt counselors work for either Debt consolidation or Debt settlement companies. I have vast knowledge in Debt settlement so would like to answer accordingly!

Debt settlement companies offers you free Settlement but here is the how they make money.

For example, you have Debt amount of $10,000 and they tell you they can settle it down to $5500 and will divide your payment accordingly, lets say $200 for 27 months. Now, the actual amount they will pay to your creditors will be $4000 but rest 15% goes towards their fee... So they get their $1500 from each Monthly payment you make. Most of the Settlement companies charge this fee in first 3-6 months which is not good for consumers but i know some of those who will even wait 18 months to get paid in full.

So the total money they make is always 15% of debt amount (if legally) %26amp; it can be taken in 4 to 18 months from you.

http://www.DebtCareUSA.com is a good one in this industry!

floral

Should my fiancee and I pay off our credit card debt before we purchase a new home?

2009-07-31T03:41:00.001-07:00

My fiancee and I have approximately $30,000 in credit card debt (mostly his). He thinks that we should pay off all that debt and put a smaller down payment down on a home, rather than using all our money for the down payment. I argued that we should not worry TOO much about the credit card debt and take care of it another way, such as re-financing our mortgage in several years and using that cash to pay off the credit card debt (since the interest rate would be much lower). Any suggestions?

Should my fiancee and I pay off our credit card debt before we purchase a new home?
I'm going to make a guess here....

You are being offered a mortgage with a fairly decent interest rate....and in "several" years, they are going to increase your mortgage interest rate, right? But that's OK, because at that time the interest rates will drop big time, and you simply refinance the mortgage and save tons of money?

Is that what you were told? Did that tell you this was called a "balloon" mortgage?

I'm gonna give you a big warning..... be careful. What happens in "several" years when you try to get refinanced, and they don't give it to you? Did you know that thousands of people ran into trouble with these loans? They ended up filing for bankruptcy.....and now the large mortgage companies are getting wiped out from the people filing for foreclosures.

I know several people who fell for this trap. The original loan came with so many fees and closing costs that it pushed the loan to well over the value of the home. After several years of paying only interest, no lender would even discuss a refinance with them!

As for now, all you have to do is use some common sense. You are paying (probably) 15% on $30k in credit card debt. If you used that money as a down payment for the mortgage, you are saving 5%. You are losing bigtime on this deal!
Reply:I think that $30,000 credit card debt is going to hurt you especially now. Mortgages are getting hard to get and there are a lot of foreclosures out there. You may want to talk to a mortgage lender. They don't like big debts and they really like paying jobs plus nice bank accounts.
Reply:Yea, he would. . . . . If you already have 20% down, then I'd focus on paying the remainder of your debt to below 1/2 of the credit limits. Don't EVER refinance to pay off your credit card debt or auto loans. That is dumb. Just pay it off and stop using your credit cards. Plus if you do pay off the cards don't close them. That will hurt you. The down is MORE important to get a good FIXED rate now. Do that.
Reply:By paying them down to below 30% of the limits, or paying them off you increase your FICO score in two ways, first you do not owe that much, second you reduce your credit to debt ration, the higher FICO score will save you in interest rates for the term of the loan. STOP thinking about refinancing, or home equity loans that is why so many people are facing foreclosure right now, build up equity in your home, and keep building it in the event of an emergency.
Reply:By several years down the road, you will probably have paid a small fortune in interest on that much credit card debt. I'd agree that paying down the credit cards would be a good idea. Having that much credit card debt will affect your chances of even getting a mortgage, and if you can, will affect the terms.
Reply:I think your fiance is correct. Paying off what you have would put you in a better financial condition for purchasing your home. Paying off your cards, saving for the down payment plus what you need to furnish it would be much wiser choice. Then you'll also possibly have money to stick in savings for when something needs fixing or replacing.

Refinancing your home in a few years to pay off credit cards would only lengthen the time you owe on the cards - turning short term debt into long term debt. I never recommend doing that. It may be a lower rate but when you stretch it out to 30 years, it doesn't save you money - especially when you add in another set of closing costs adding thousands of dollars to what you repay. And if rates increase on your entire balance, that you repay is even more.

I'd have to side with your fiance to repay the credit cards first, as fast as you can, and be better off in the long run by doing so.

Also some unsolicited advice (lol) - when you do purchase your home, don't go for the most expensive you can buy or you could end up "house broke". You want to have some money left over for a rainy day (and not having so much credit card debt also falls into this category). Live to be comfortable and not from paycheck to paycheck and you'll be much, much more happy all the way around.
Reply:I personally would pay off the cards and put down less money if you have the credit to qualify for 100% financing.

To avoid paying mortgage insurance, you can do two mortgages- an "80/20" where your first is 80% of the sales price, and the 20% 2nd mortgage covers the rest. The rate you can get on that 20% 2nd is going to much better than the credit card rates, I'm sure. Plus, you can deduct the mortgage interest when you file your taxes!

Also, paying off those cards will make your debt to income go way down, which looks much better to mortgage companies.

Good luck!

Can you include credit card debt in a bankruptcy?

2009-07-31T03:41:00.000-07:00

I have a friend in FL that is filing bankruptcy. I thought they passes a law a few years ago that stated you could not include credit card debt in bk. Is that true? They are telling me that you can include credit card debt.

Can you include credit card debt in a bankruptcy?
All consumer debts can be included in a bankruptcy. It's just a lot harder to file chapter 7 now.

First you have to go through 6-months of credit counseling and then take whats called a means test to determine weather you file chapter 13 or 7.

If you make over the average annual income for your State, you are forced into a chapter 13.
Reply:Yes you can... but because the BK laws have changed, it will probably start at a Chapter 13 instead of a 7. In a 13, the debt might be reduced, but have to be paid back. All consumer debt can be included in any BK.
Reply:You can. It is a debt.
Reply:Yes, you can include CC debt. About the only things you cannot include are child support and student loans. (and any other money you might owe the government).
Reply:You not only can she but she MUST declare all of the debts in the bankrutcy. Knowingly leaving a debt off of her bankruptcy might cause it to be dismissed if they found out and they feel it was done to show preference to that creditor.

Now depending on her situation she may not be allowed a Chapter 7 but be moved into a Chapter 13 bankrutpcy. In a Chapter 13 they set up a payment plan to settle the debts.

When she talks to a lawyer they will walk her through the means test to determine which Bankruptcy chapter she can file for.
Reply:If they are in the Uk then yes cards can be included I know this as just helped my ex through the process, USA I wouldn't be sure but they are seen here like all debt that is not linked to property or assured by another,

Anyone have any thoughts on credit counseling or debt relief companies?

2009-07-31T03:40:00.003-07:00

I am about 8 grand in debt, and need to pull myself out asap. Anyone have any ideas? Do debt counselors or debt relief companies really help?

Anyone have any thoughts on credit counseling or debt relief companies?
Don't use them, for one most of them are a scam, for two, if you go into consumer credit card counseling it reports on your credit, and some lenders think negatively of it.

First things first, you obviously need a budget, stick to it, pay off as much as you can off, I'm sure you're getting hit with huge interest rates, you can look into consolidation but, alot of credit card companies offer 0% for the first 12 months, but make sure you know what it is after the 12 months!!!

Other than that budget yourself according to your income and stick to it, most of those companies are scams so stay away if at all possible!

What is the fastest way for me to pay my credit card debt?

2009-07-31T03:40:00.002-07:00

Im a college student about to enroll in the fall and im working over the summer and making about $600/month, and have a $2900 credit card debt along with a cell phone bill, and a car insurance bill which totals to about $127/month together...im thinking about getting another part time job where i don't have to work many hours or mainly just a weekend job b/c i want to be able to concentrate on school, what can i do to clear this debt off?

What is the fastest way for me to pay my credit card debt?
Well......what to say....

1) you go to college, so by definition you know how to count

2) you know how much you owe

3) you know how much you earn

what seems to be the difficult part ????
Reply:The first thing you need to do is to make sure you don't add to the debt. Don't use the credit card for new purchases. Cut out any unnecessary expenditures. Pay more than the minimum -- as much as you can afford. Good luck. It can be done.
Reply:It is important that you take steps to get your debt under control before you end up in serious financial trouble.

Find a Way to Get Better Rates

One way that can help you get rid of the credit card debt that you are in is to find a way that you can get better rates on your credit cards. You can do this by trying to find a credit card that has lower rates than your current cards, and then make transfers over to the card with the lower interest rate.

Another way you may be able to get better rates is to try to negotiate with the company or have a credit counselor negotiate with the company to get you better rates on your card. While you may not realize it, having a lower rate can actually save you hundreds of dollars and can help you get out of credit card debt much faster.

Eliminate Debts One By One

If you are wondering how to eliminate credit card debt, another way that can be a great help is to start working methodically to eliminate your debts one by one. You can choose either to pay extra on your card with the lowest amount of debt or you may want to pay more on the card with the highest interest rate, but whichever way you choose will be a great way to help you get out of debt much faster.

Debt Consolidation

If you are serious about getting rid of your credit card debt once and for all, you may want to work on getting a debt consolidation loan. This method of elimination will help give you lower interest rates, a regular payment schedule, and you will only have one easy payment to make each month. This is a very easy and effective way to eliminate the credit card debt that has been causing you so much trouble. Read more from: http://www.credit-card-gallery.com/artic...
Reply:always pay more than the minimum payment...think of one thing you can give up in your daily life (starbucks, eating out, getting your nails done if you're female, etc.) and use that money toward your credit card payment
Reply:Cut out any un needed expenses

such as eating out

Movies

Fun stuff that cost money

Pay 5x the amount on your Credit Card mininum monthly payment so if your min is 30.00 a month I would be paying at least 150.00 on it. If you get a secong job, then apply all that money from your second job on your credit card.

MAKE SURE NOT TO USE THIS CARD, unless you are buying gas or groceries etc. So the money you would buy gas or food with take that money and put it directly back on your card. These purchases must be paid on top of your monthly payment. Otherwise your defeating the purpose of trying to pay the card off. By doing this will help show you are being responsible with the card and you will build your credit up.

Treat your credit card like a debit card, the money you spend on it should be money you have in your bank account ready to pay the card off in 30 days. Like I said by doing this you are building your score without building debt.

So by doing this in a few years when your older and have a secure job you will be able to go to the bank and get a mortgage with hardly no money down and the lowest interest rate possible---%26gt;which menas you are investing and also saving money.

People who rack up credit cards and never pay them off, end up being poor. They end up over extending themselves and set themselves up for failure in life.

Oh and the GOLDEN RULE-

DO NOT EVER GO PAST 30 DAYS LATE ON MAKING YOUR PAYMENTS

WHEN YOU CHARGE SOMETHING MAKE SURE YOU PAY IT OFF IN 30 DAYS WHEN THATCREDIT CARD BILL IS DUE AND YOULL NEVER HAVE A PROBLEM WITH CREDIT AGAIN

Treat your credit like Gold DONT ABUSE IT

I know this becauise I just got done paying $40,000 in credit card off. It took 6 years and I lost everything I charged because I sold it all to help pay this debt off-

Credit score ruined, I cant get a mortgage with a desent rate without thousands of dollars in down payment

I hard a hard time even getting a rental

I got denied student loans

and I lost 5 yrs of my life struggling to pay this debt off for things I dont even own anymore, when I could have just saved for the things I desired -

Good Luck

THIS WILL DESTROY YOUR CREDIT SCORE FAST
Reply:you need to pay the amount due and another 20 bucks or whatever you can spare, that extera amount will pay off the principle, you will pay it of faster.
Reply:Don't add any more debt to this card, that's the BEST thing you can do. Fast is not the issue, efficiency is. But if you can throw 150 a month against this debt it should go away pretty quick. The key is consistency and not adding more debt to the card. You can probably cut costs, most people waste huge money and don't even know it. Live poor, no pizza's, no eating out, no bars etc.
Reply:the fastest way would be to pay back as much money as you can, can you do that.

Also, if you still have any items of value then sell them.

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What is the best way to resolve credit card debt?

2009-07-31T03:40:00.001-07:00

My husband and I are struggling to pay our mortgage, two car loans, consolidation loans, two credit cards, student loans as well as medical bills for new baby. Should I see someone in a CCCS organization, or just try to stick it out for as long as I can? Our debt to income ratio is now 74%, by the way.

What is the best way to resolve credit card debt?
first off stop using any credit cards.secondly call them all and ask to get the interest rate dropped insist on an even lower rate, tell them a competitor has offered you a large credit line at an almost unbelievable rate, but you wish to stay loyal to them. next stop using all the cards you have . do not get more cards.do you really need 2 cars or can you make due with one. can you get cheaper cars, it's just a car. do not buy anything unless you absolutely need it . make a list of things you want to purchase. separate this list into things you want and things you need ( be brutally realistic ), you need food but you can live on bread and baloney instead of bacon and tomato, stop ordering out. do you have cable ? if yes cancel it. eliminate all the things on the want list , not forever just for now .when you are about to purchase anything ask yourself do i need this if the answer is no do not buy it. get a second job, deliver papers. remember you are the grown ups in your life so you must be the hero's as well . your kids will be the better for this ..

did i mention stop using credit cards for anything.

good luck and stick to it. :)
Reply:You can visit http://www.cashguru.info and find very useful tips and several articles on debt consolidation. Report Abuse

Reply:As long as you've been making payments on time, you probably shouldn't get credit counselling because it will be a bad mark on your credit.

Pick your card or consolidation loan with the highest interest and put all the extra money you can into paying it off, making the minimum payment on everything else. If you get a chunk of money from a tax refund or whatever, put it towards the highest interest card. When you have that one paid off, take what you were paying monthly towards that one, and now use that money to put towards the next card, in ADDITION to what you were already paying the next card.

Stay with the minimum payments on the student loan and the medical bills because they will have the lowest interest, and they don't hurt your credit so much if they're part of your debts.

Do research on frugal living and money management to find out exactly where your money is going and tips on how to reduce your day to day spending on food, groceries, and other extra items. Like, you could use cloth diapers because disposables are so expensive. You can make your own baby wipes out of papertowels, baby soap and baby oil and it's WAY cheaper than buying them in the box at the store.

You can find all kinds of ways to reduce your spending by finding cheaper alternatives to the things you buy every day or every week.
Reply:I tell anyone who gets loans for school do not take any consolidation loans under any circumstances because they only cause you to be further in debt this is just to stave off things until you're able to pay which is a joke. I would look at credit counseling very carefully because you don't want to get into one that charges a high fee for service when all you want is to lower your monthly payments. I would look into CareOne credit counseling because you might be able to get your debt lowered. Credit cards should never be used to pay for things you can do with a check or cash because the interest rate is high if you're late a lot. Having a new baby is a lot since the bills for their care alone is going to eat a good portion of the income you bring in. Here's CareOne's website it's www.Careonecredit.com and find out if you qualify to get service hopefully this will get you back on track.
Reply:Credit card debt reduction has become a necessity because of the numerous negative impacts of improper and mindless use of plastic money. Be it carelessness of usage or the conceit of users, whatever be the reason, credit cards can effect on your credit standing in a negative manner. Due to easily accessible facilities of credit cards, people can hardly resist of stocking and adorning their wallets with plastic money. Being an almost inevitable vanity of each wallet, these plastic cards have become more preferred mode of transaction than cash. As these cards are simpler and quicker sources of money, users are more focused on the advantages than to fathom its disadvantages on their financial conditions. Therefore, a lions share of credit card users ends up accruing poor credit status and become ineligible to receive loan approval and not to mention other negatives of a poor credit rating. This is the reason why one should consider credit card debt reduction or credit card debt consolidation to get out of the trap and become debt free.

Read more about debt consolidation at: http://www.card-gallery.com/article/169,...
Reply:I suggest you to join a debt settlement company who will negotiate with your creditors on your behalf and try to bring down your principal unsecured debt amount by around 30% to 70% depending on your credit companies. You can make affordale monthly payments and be out of debt within 36 months.

There are no hidden costs and upfront fees associated with the monthly payment options.

They will also work with collection agencies and law firms.

Check out this debt settlement company who has helped me out with the unsecured credit card debt problems.

http://www.debtfreeafterall.com

Good Luck
Reply:CCCS and other places like that will have you cancel all of your credit cards. Also, be real careful. CCCS is OK, but some of the agencies take the money from you but are slow in paying your bills to the credit card companies, so your credit actually gets worse! I don't advise sticking it out. Get out of debt whatever way you can and start over.
Reply:just stick with how it is so you dont end up paying more also every bit of money you dont need set aside and send it in also
Reply:don't use any of the card til u pay them off. Then try to make your min on bills, try to work more hours at work,,
Reply:The first thing you need to do is call your credit card companies and ask for a reduced interest rate. If you can reduce your interest payments you can make more progress on paying things off.

Cut up your credit cards, except one for EMERGENCY USE ONLY. If you can't pay for it with a Debit card, and its not a car or home repair, you don't need it.

Cut your expenses to the bone. Spend the next six months eating Ramen and getting your entertainment from a copy of "Monopoly"(tm) if you have to.

Are you both working? If not, then the currently unemployed household member should get a job. Go for second or third shift so you can both work, but you don't need to hire a babysitter.

Exhausting? Yes. Hard on your marriage? Yes. Will you be glad you did it when you pay off your debts and can quit the job in six months to a year? HELL YES.
Reply:The primary aim to consolidate debt should be to reduce your total costs. To achieve this, you have to consider the following two points:

-Shop around for the loan with the lowest interest rate.

-Chalk out a strategy to clear off the debts in 3-5 years.

The following are some of the best methods of debt consolidation:

Credit Cards: If you have good credit rating, you can get a card offering lower interest rate than other types of consolidation loans. Besides, you do not have to deposit any collateral, making it virtually risk-free credit. Find out from the current issuer the interest rate they are willing to give you, for balance transfers from other cards to their cards. Choose a fixed rate if possible and request them not to charge transfer fees. If that is not possible, look around for another card. Many sites offer you a wide choice of cards with different interest rates. But do not apply for plenty of applications simultaneously as it can damage your credit rating. Once you get a card, draw a repayment plan to clear your debts within 3-5 years.

When repairing credit is it best to pay the small debt first or large debt first?

2009-07-31T03:40:00.000-07:00

Or should I pay the older debt off first? I want to raise my credit score by paying off my debt over time. Some of it says it falls off this yr of 2008 (guess its debt older than 7 yrs) So does anyone have suggestions?

When repairing credit is it best to pay the small debt first or large debt first?
Fastest way to improve your credit score is to pay off current credit card balances. Carrying balances of more than 30% hurts your credit score.

Paying off old debt won't increase your score. However, creditors look at more than just your score. They look at the whole report. A paid old debt looks a lot better than an unpaid one.

The best way to work on the derogatory items is to start with the newest and work backwards. The older the debt, the less impact on your score. Just let items that are close to the 7 year mark age off your report.

When you contact the creditors, be sure to get any settlement agreement in writing and don't give them access to your bank account. You can ask for a delete for payment -- some will, some won't. The older the debt, the more likely they will settle for a lesser amount. Lump sum gets the best deals. Any payment plan has to be short term.
Reply:snowball your debt

meaning that you pay your smallest ACTIVE accounts first

once the smaller one is paid use the money that you were paying on that account to DOUBLE Up on the next one and so forth

Alternatively

you migth want to pay the accounts with the highest interest rates first!
Reply:Well, not knowing the full situation, I would say pay off either the highest interest one or the one with the smallest amount. You don't want to have two large debts. Take one of them off if you can, 'cause you don't want that interest rate to go even higher.

I'm sure it looks better on your credit to have one debt currently listed instead of two.
Reply:if the debt is already closed out from the vendor, meaning they have written it off and aren't counting on you paying (so they do not call you anymore)--- it doesn't matter when you pay, as long as you do. It will not be reported back to the credit companies as paid until it is paid in full. So, if you can handle doing the smaller bill at one time just do that, and work your way to the big one. It's good that you are trying to repair your credit, it is supposed to take several years and you should get started now. Good luck. Also, in my experience, the debt doesn't "fall off" and not get counted on your credit report... it is always there. Even long after you pay it off if someone wants to see that past stuff they still can. Your score is affected by many things, included really old debt.

What happens if you don't pay off a debt to a collection agency after so many years?

2009-07-31T03:39:00.002-07:00

Can you get a home equity loan while in a debt management program?

2009-07-31T03:39:00.001-07:00

I just entered a debt management program to get control over my credit card debt. I have done this seperate from my husband. Only my credit is affected. Just after I entered into the program, my husband started showing interest in a home equity loan to consolidate our debt (his credit card and vehicles) and do home improvements. In our marriage I am responsible for my own debts, but I am wondering if being in the DMP will affect the chances of us obtaining the Home eq. Loan. Serious educated replies will be very much appreciated.

Can you get a home equity loan while in a debt management program?
he can open equity line of credit only in his name and this way your credit report will not affect his change to obtain the loan or you have to get this loan fast- before your debt consolidation program will show on your report. most lenders treat debt consolidation program like bankruptcy chapter 13, so it is mean- they don't like see this very much.
Reply:It depends on what kind of DMP you are in....is it a consumer proposal?? or did you just get a debt consolidation loan at the bank?? It also depends on your credit rating. If both parties still have good credit and aren't in a consumer proposal then yes there is a good chance that you can still get a home equity loan. This is what I do for a living....I'm a mortgage broker. I hope this helped
Reply:In a lot of cases, being in a DMP may preclude you from getting additional debt because some lenders view it as a precursor to bankruptcy.

The fact that this is a secured loan might help, but you'd need to check with the lender.

If the home is in both of your names, the HELOC would need to be jointly titled as well.

One option to consider is exiting the program and increasing the amount of the HELOC to cover your debt as well - and use the equity in your home to pay down the debt instead of the DMP.

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What is the statute of limitations for credit debt in Nebraska?

2009-07-31T03:39:00.000-07:00

I received a phone call from First National Collection Bureau regarding a debt from Sept. 1998. I don't recall having an account with the bank they mentioned. They sent me a letter stating that if I don't respond to them in writing then they would assume the debt is valid. I have no records, even credit report, that shows this debt. Should I worry about this?

What is the statute of limitations for credit debt in Nebraska?
As stated by others, the SOL for your state is 4 years for open contracts (credit cards). Send them the reply they want only use this form letter (you fill in the blanks). This should send them away. If not then you can seek civil suit against them for minimum of $1000.

But make sure that this debt is for a credit card and not for a court ordered judgment. A judgment in Nebraska has a SOL of 5 years and is renewable.

Your Name

Your Address

City, State, Zip

Date:

General Revenue Corporation

Address

City, State, Zip

Re: Acct #XXXXX

To Whom It May Concern

This letter comes in response to your [letter dated xx-xx-20xx] (copy enclosed) concerning the collection of the above referenced account.

First, I want to inform you that I am well aware of my rights under the Fair Debt Collection Practices Act (FDCPA) and applicable State laws. Having said this, I hope to save both of us a great deal of time by informing you that I formally dispute the validity of this debt. In addition, I am aware that the time period limiting legal actions to enforce this type of debt in (insert your state or the state in which the contract was signed) has expired. Furthermore, I am aware that any attempt to bring an action in court that is time-barred may result in sanctions for filing a frivolous claim.

As of today, I consider this matter closed and demand that your agency and affiliates immediately cease and desist contact with me regarding this matter except to advise me that your debt collection efforts are being terminated. Further communication attempts of any form or substance are prohibited by the Fair Debt Collection Practices Act, 15 USC 1692a, et seq. I plan to report any such violations to my State Attorney General and the Federal Trade Commission and, if necessary, to take whatever legal action is necessary to protect myself.

Thank you for your prompt attention to this matter.

Sincerely,

Your Name

Hope this answer is of help to you

LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice

How much debt do you have to have to file bankruptcy?

2009-07-31T03:38:00.003-07:00

Is there a set amount of debt you owe in order to file bankruptcy?

How much debt do you have to have to file bankruptcy?
The primary purpose of bankruptcy is: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has the means available for payment.

Bankruptcy allows debtors to be discharged from the legal obligation to pay most debts by submitting their non-exempt assets, if any, to the jurisidiction of the bankruptcy court for eventual distribution among their creditors. During the pendency of a bankruptcy proceeding the debtor is protected from most non-bankruptcy legal action by creditors through a legally imposed stay. Creditors cannot pursue lawsuits, garnish wages, or attempt to compel payment.

The rules for filing change from state to state.....but not real good for your credit rating. especially if you try to buy a house.
Reply:any amount
Reply:Do you really think filing bankruptcy is a solution?

You have to pay back your debts.
Reply:I don't think there is a set amount - if you have so much debt that you are past the point where you can ever hope to pay it back then bankruptcy is your only answer.

That could be $5000 or $50000 dollars depending on your circumstances.
Reply:Zero Dur
Reply:No set amount is required to file bankruptcy:

Information on Chapter 7 Bankrupt

http://get-out-of-the-debt-trap.com/cate...

Information on Chapter 13 Bankrupt

http://get-out-of-the-debt-trap.com/cate...
Reply:There is no set amount you just have to show that you can not pay the money. I.E. your debt is $100 but you earn 1 cent while your cost of living is 2 cents, you can file.
Reply:It is not as easy as you used to be. First of all you can file bankruptcy for $100 in debt if you are unable to repay it and you have no assets that can be used to repay. When you file bankruptcy your financial life is put into the hands of a trustee and you're only allowed so much equity in a house or car. Most trustees are now looking into debt repayment plans rather than totally discharged bankruptcies. The answer for whether or not you qualify will be up to a qualified attorney. Don't go with a storefront legal clinic for something like this. You need professional help and it's not cheap. Make sure you cannot repay the amount of debts that you have or you'll have to repay them PLUS the cost of the bankruptcy. Perhaps your first call should be to a legitimate credit counseling agency like Consumer Credit Counseling...
Reply:It totally depends on your income level. I know that some changes have occurred recently, but as of a year ago in Texas if you made less than the 'average income' for your county you were eligible to declare bankruptcy regardless of the total debt amount. If you made 'average income' or more, there was a complicated equation that took into account all of your income for the prior 6 months (after taxes), all of your bills, and reasonable 'daily living' expenses that anyone could expect to have. If it was determined by this equation that your debt far exceeded your income, you were eligible for bankruptcy.

There were some 'classes' we had to take prior to and after filing, and the paperwork was extremely complicated. I HIGHLY recommend paying an attorney to help you with the process. True, they are expensive but their service is invaluable -- and the cost of the attorney in most cases does not even come close to the cost of struggling to pay overwhelming debts off.

It is true that bankruptcy stays on your credit report for like 7 years, and now you can only file once every 8 years. However, these problems are not devastating as some information would have you believe. Every year you are out of bankruptcy while maintaining good credit since the discharge, the significance of the bankruptcy decreases. Besides, the relief and peace of mind you can gain from experiencing a 'fresh start' and a 'second chance' is definitely worth it!
Reply:No. A set amount doesn't exist. This would mean a poor person couldn't file, but a rich person could. Nope. Rather, the court looks at your ability to pay based on the income you can generate. Normally, something substatial happens to cause bankruptcy such as a medical condition, unemployment, divorce, or becoming a widow. Normally secured loans, like an auto or home do not cause backruptcy because you can get rid of the asset. Zero down loans have changed that to some degree recently.

What is the statue of limitations for collecting a debt?

2009-07-31T03:38:00.002-07:00

I live in Washington state. Sixteen years ago, My husband and I moved from town out into the country, we had our phone transfered from one prefix to another, stayed with the same phone company, just got a new number with new prefix. Just 2 days ago we get a letter in the mail from a collection company saying we owe the phone company over 2 thousand dollars from the phone number in town. There is a huge mistake somewhere, we dont owe this amount but can someone really go back 16 years and try to collect a debt?

What is the statue of limitations for collecting a debt?
Statue of limitations for collecting debt vary from state to state. However, I think that it's quite safe to assume that 16 years is far beyond what any of the state limits would be.

They can legally keep calling you and mailing you letters for a lifetime but they cannot sue you for the owing debt - it's too late for them to do that.

I wouldn't bother trying to remind them of this though - afterall they'll just keep calling you because they can!! Get a private phone number and never give it out and just toss any letters you get from them into the shredder.

The big thing is your phone number.... prevent them from calling you by unlisting your phone number and keeping it private and that should give you some peace and quiet for a few more decades. Good luck!

EDIT - I would NOT acknowledge the debt at all, if I were you. Keep the case closed and speak not another word about it to them. Sometimes acknowledging a debt or offering to make a payment can re-open the case and cause one a bunch of havoc. If you do nothing about this and simply refuse to communicate with them anymore (and prevent them from contacting you) you'll find that they're just a bunch of toothless lions looking to see if they can fool you into still paying the debt, but really they can do nothing to you...
Reply:no they can't.

blow then off........
Reply:They can't collect after 16 years. The FTC has guidelines for the statute of limitations for debts such as these. Also consider that it might be a scam by a collection company. It happens more frequently than you think.
Reply:Yes they will. In the state of Texas your utility deposit and bills are based on the bills that former residents did not pay. In my case a 900.00 deposit was required. So, I found if you can take ,fax proof that you have never been responsible for such a large sum in the phone company they will have to comply Be sure to look into not being a victim of identity theft
Reply:No way that is a joke!
Reply:No, they can't go back 16 years. The collection company cannot sue you or add this item to your credit report since re-aging is illegal. The link below is a list of the statute of limitations for each state and lists the times for verbal and written timeframes. If you need it, there are also sample letters to send to the creditors and/or bureaus on this site.
Reply:no not for that amount, be prepared for a battle here.

send this people a letter telling the to ceaist and desist all communication with you--goggle ceast and desist letter and they will have templates for you. Send it certified. meaning if they contact you, you can file suit. I would look on your credit report seeing if it is 16 years old it should be off of your report. if it is on there they are re-aging you debt again this is illegal too. just be care full, this collector bought that debt for 2 cents on the dollar trying to trick you.

good luck,
Reply:Yes, they can try to collect the debt.

First, contact the phone company and see if this collection agency is working for them.

Then, dispute the charges, demanding in writing proof of the validity of the debt. If they can not prove it, then they must cease attempting to collect money.

Typically, they won't report a debt that old to the credit bureau.

CAUTION: Many scams go on with collection agencies making up or finding old outstanding debt that is no longer valid, and attempting to collect on it. So always be cautious, and investigate before you even agree to speak with them.
Reply:No...the statute of limitations varies from state to state.

If you agree to pay the bill or make payment arrangements, it restarts the statute. I would just ignore it. If they call you, tell them the statute of limitations has expired and hang up.

In Washington, the limitations are:

WASHINGTON Wash. Rev. Code Ann. § 4.16.005 et. seq.

6 yrs for written contract

3 yrs for oral contract

3 yrs for injury

3 yrs for damage

Depending on whether WA views a phone bill as a written or oral contract I don't know. It's possible a utility company has a different limitation. I've at least given you a starting point to research.
Reply:In CA the statute of limitation is 4 years, not sure what it is for WA but 16 seems way too long. After the statute of limitations, they can still try (try being the operative word), but they will not have any legal backing. As previously stated it is probably a scam. Call the phone company directly and ask them to look at your account. If they say you owe them money ask them to remove the charges (because you paid them or whatever the case was), if they say no, call back and ask someone else. Each rep is different and some will be more willing to help than others. If that fails talk to a manager (or escalation manager). Good Luck

How to pay off credit cards enrolled in a debt management program?

2009-07-31T03:38:00.001-07:00

I have been in a debt management program with a local credit counseling service for about 8 months. My parents have offered to co-sign a loan so I can pay off the cards. The loan with the bank is a lower interest rate than the cards and will pay them off faster with a lower payment each month. Should I pay the cards directly or go through the credit counseling service? Which is better for my credit score?

How to pay off credit cards enrolled in a debt management program?
Pay off the cards but keep the accounts open. You earn points for having an account that is kept current (no payments more than 30 days late). This includes an account with a zero balance. A credit report will reference the account's high balance and current balance. If any of your cards have a yearly fee, I'd go ahead and close those ones.
Reply:The Credit Counseling company will probably get you a better price in the long run because they will negotiate a lower rate than you can. But, you are being charged a very large amount of compounded interest on every dollar that you owe them for every Month that the amount is owed. Let Mom and Dad help IF the interest rate and terms are better than you are currently paying the credit card companies. And, if you can afford to pay all of your bills iccluding that payment. Remember that the credit counselor is making money on you, they will not always counsel you to your advantage.

ginkgo

What is a good organisation to help me with Debt management/consolidation?

2009-07-31T03:38:00.000-07:00

There are many sites on the web, but most of them charge monthly fees and setup costs. I need help managing my credit, developing a budget and getting out of debt. Are there any good companies or non-profit organisations that provide these services?

What is a good organisation to help me with Debt management/consolidation?
Contact Consumer Credit Counseling Services, they are free and will work with your creditors to lower both your monthly payments and your interest rates. I used them several years ago and was debt free in 36-months.
Reply:TOTAL DEBT SOLUTIONS, LLC

If you are a homeowner, check out their free evaluation form; it takes about a minute to fill out.
Reply:Hi,

We've found Crown Financial Ministries to be super. You can talk once on the phone with them for free, and they have trained financial counselors throughout the country who will meet with you and help you develop a budget to get out of debt, also for FREE. I'm not sure if they negotiate credit card rates for you like CCCS, but you can ask. I'm sure they will give you sound advice about it if they don't do it. They also have other tools, seminars, etc which you can check out at http://www.crown.org/

Also, Consumer Credit Counseling Services is helpful, although I think they may charge a small monthly fee now, and I don't have their website information.

How much debt will your president Obama create his first year?

2009-07-31T03:37:00.003-07:00

My guess is $2.4 trillion more in debt. How much do you think?

How much debt will your president Obama create his first year?
Nobody can create more debt than Bush. Obama will cut the deficit. in his first year.
Reply:I think he should make it mandatory that Oprah and all the rich Hollywood stars like Madonna who supported him, should work free for a whole year, donate their money to welfare recipients. This would eliminate huge debt and would give the middle class tax payers a break! AND it will make their miserable lives seem better. Sound good?

What happens after you dispute a notice about a debt from a creditor?

2009-07-31T03:37:00.002-07:00

My father has never had a credit card in his life. He recently got a notice from a collection agency (attorney office) asking to pay the debt in full. He doesn't know what it is from but it appears to be from a credit card. He plans on disputing in in writing like the letter tells him to do if he doesn't think it is valid. What happens after he does this? Is it better to just ignore the letter? I will also mention that the letter has an apt number listed for his address. He lives in a house and not an apartment. His wife died last year so if this is hers he is unaware of it but it is in his name and whenever they have tried calling they ask if he has a wife.

What happens after you dispute a notice about a debt from a creditor?
Be cautious about responding at all. This could be an attempt to obtain confidential information from your father such as SSN, date of birth, bank account information, etc. Do not release ANY confidential information.
Reply:Dispute the debt in writing. Send the letter via certified mail with return receipt showing that the letter was received. Ask for verification of the debt, the date of the last payment made on the account (there is a statute of limitations, but many people don't realize this) and the name of the original creditor.

Then follow-up from there.

Good Luck
Reply:Never ignore a creditor. Write back asking them to show the validity of the debt. They say it's yours make them prove it. By the way, make sure to send the response via certified mail because they have 30 days from the receipt of the letter to respond or they have to remove it from his credit report if it goes that far. Hope this helps. If not, go to http://www.newmillcredit.com.

How can I consolidate my debt without paying fees?

2009-07-31T03:37:00.001-07:00

My husband and I just got married in September. We both have some debt and both have fair or poor credit. We do not own a home, we rent.

What we want to do is consolidate our debt into one loan and just make one payment on it every month. How can we do this but not have to pay fees and with our "not so perfect" credit?

How can I consolidate my debt without paying fees?
It usually isn't a good idea to "borrow" to get out of debt. Try to find a way to manage your spending and see if you can make extra payments to your debts.

You can make an appointment with Consumer Credit Counselors, they can be helpful, (but they only told me I should get a part time job because I needed more income to meet my expenses)

You can also go to Oprah's web site and look for The Debt Diet. (this was a godsend to me) There are tips %26amp; worksheets and sort of like lessons on money, debt, etc.

Good luck.

azalea tree

What is the easiest way to consolidate credit card debt?

2009-07-31T03:37:00.000-07:00

I have two credit cards that have about $8,000 in debt between them. I am serious about paying them both off, and pretty much will go as far as starving to get it done. It would just be so much cheaper and easier if this was one bill instead of two. I have played the balance transfer game, but at this point it seems like adding another bill would be more problematic than consolidating. I just don't know how to do it or who to trust.

Is there any downside to consolidation?

What is the easiest way to consolidate credit card debt?
By using services from a debt relief organization you will stop receiving phone calls asking you for money. You will pay a fixed rate amount every month which will never go up. You won't be dealing with your creditors any more. The "debt relief people" will be paying your bills for you, and your credit card company is out.

You then pay the debt relief company.

lots more here:

http://finance.ebookorama.com

http://credit.ebookorama.com

http://credit-repair.ebookorama.com

http://credit-cards.ebookorama.com

good luck!
Reply:You can visit http://www.cashguru.info and find very useful tips and several articles on debt consolidation. Report Abuse

Reply:Downside to CONsolidation? 70% of all consolidation people find them self in debt at same or higher amounts in five years.

CONsloidation only treats the symptom on the disease.

visit DaveRamsey.com to learn before you get Burned.

Stop your insanity. you are only 8K in the hole.

An extra 400$ month take homepay gets you free in less than two years. Get 2nd job and get some raises at work.
Reply:Balance Transfer at 0% interest will help you shave that debt.

To transfer the new card should accept all of your debt.

You can negotiate a lower interest rate too.

Start here!

http://www.nfcc.org/

Just remember if they want money to help ya then move to the next one.
Reply:Consumer Credit Counseling. They're nonprofit, and universally recognized. They can usually get creditors to reduce interest. They helped me get my finances right after my ex-wife ran up our joint credit cards and split. DO NOT go with a consolidator that charges a fee!
Reply:I found an article directly related to your answer, please visit:

http://www.freewebs.com/infosource100/co...

"The Pro's and Con's of Debt Consolidation Loans

By Wesley Atkins

You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt. What should you do?

Some people feel that debt consolidation loans are the best option. A debt consolidation loans is one loan which pays off many other loans or lines of credit.

I’m sure you’ve seen the advertisements of smiling people who have chosen to take a consolidation loan. They seem to have had the weight of the world lifted off their shoulders. But are debt consolidation loans a good deal? Let’s explore the pros and cons of this type of debt solution.

Pros

1. One payment versus many payments: The average citizen of the USA pays 11 different creditors every month. Making one single payment is much easier than figuring out who should get paid how much and when. This makes managing your finances much easier.

2. Reduced interest rates: Since the most common type of debt consolidation loan is the home equity loan, also called a second mortgage, the interest rates will be lower than most consumer debt interest rates. Your mortgage is a secured debt. This means that they have something they can take from you if you do not make your payment. Credit cards are unsecured loans. They have nothing except your word and your history. Since this is the case, unsecured loans typically have higher interest rates.

3. Lower monthly payments: Since the interest rate is lower and because you have one payment vs many, the amount you have to pay per month is typically decreased significantly.

4. Only one creditor: With a consolidated loan, you only have one creditor to deal with. If there are any problems or issues, you will only have to make one call instead of several. Once again, this simply makes controlling your finances much easier.

5. Tax Breaks: Interest paid to a credit card is money down the drain. Interest paid to a mortgage can be used as a tax write-off. Sounds great, doesn’t it? Before you run out and get a loan, let’s look at the other side of the picture – the cons.

Cons

1. Easy to get into further debt: With an easier load to bear and more money left over at the end of the month, it might be easy to start using your credit cards again or continuing spending habits that got you into such credit card debt in the first place.

2. Longer time to pay off: Most mortgages are the 10 to 30 year variety. This means that rather than spend a couple of years getting out of credit card debt, you will be spending the length of your mortgage getting out of debt.

3. Spend more over the long haul: Even though the interest rate is less, if you take the loan out over a 30 year period, you may end up spending more than you would have if you had kept each individual loan.

4. You can lose everything: Consolidation loans are secured loans. If you didn’t pay an unsecured credit card loan, it would give you a bad rating but your home would still be secure. If you do not pay a secured loan, they will take away whatever secured the loan. In most cases, this is your home.

As you can see, consolidated loans are not for everyone. Before you make a decision, you must realistically look at the pros and cons to determine if this is the right decision for you. "
Reply:What I did was borrow against my home (I had it paid off) and the interest rate is much lower and the payments are lower. I set it up on 4 years and will have it paid off soon.

Since the Federal Reserve Notes are evidence of debt how is it possible to be free of debt?

2009-07-31T03:36:00.003-07:00

And if the Federal Reserve is all notes evident of debt,and all they have are debts,how do they operate? And what is their collateral?

Since the Federal Reserve Notes are evidence of debt how is it possible to be free of debt?
Federal Reserve Notes are indeed collateralized by U.S. Debt. About $850B worth of the total $9T.

The debt owned by the Federal Reserve should not be of much concerned. All the interest earned, less Fed expense, is returned to the Treasury at the end of the year. Second, to some extent, the debt never has to be paid back since it is necessary as a collateral (as you deduced).

The real problem is the rest of the $9T of debt outstanding. About half is owned by the public (mostly foreign entities), and they don't give back any of that interest earned.

However, if the U.S. wanted to get serious about it, it would just pass a balanced budget 10 years in a row. Why 10 years? That's the term of maturity for most T-bonds. Which means all public debt could be paid off with that simple discipline.
Reply:Yes FRN are debt notes. The only way to not be exposed to the system is to deal in barter or gold on the black market - and as you know, that's impossible if you want to get along in this society, pay your bills, have a job, etc. Just like when you borrow money from a bank - they give it to you on the promise you will pay it back. The Fed Govt has borrowed money from many countries and at any time the debt could be called in and our economy would be on its knees - like when Confederate bank notes were declared worthless around the time of the Civil War.

The collateral is US bank holdings and precious metal stores, natural resources, etc.

It won't to any good to worry about it. There is nothing we can do so just live your life till they make it impossible.

What is a good, reputable debt consolidation company?

2009-07-31T03:36:00.002-07:00

I am thinking about doing debt consolidation, but am confused by all the different companies out there. I have heard that there are a lot of shady companies. Does anyone have some helpful advice. My debt is not a huge amount ($6000), but I am tired of paying and paying on them and never seeing a difference on the balances.

What is a good, reputable debt consolidation company?
I would suggest not going through a debt consolidation company because there are many bad ones out there. Plus borrowing money to pay off your loans to get one payment is like "Borrowing from Peter to pay Paul" as my grandparents told me once. If you do a search on the internet, many of the loan consolidation companies are listed on Rip Off Reports website.

Here is some advice to do this on your own. With only $6,000 in debt, you should be able to do this fairly quick. Others are using the same method with over $100,000 in debt. It works.

First thing of course would be to cut up the credit cards and make a commitment to never charge again. Then follow the following plan.

Make a list all your debts by amount you owe from smallest to largest. Then begin by paying the "most" amount you can each month to the smallest debt with the idea of paying it off quick. Then, only pay the minimum payment on the larger debts. Continue doing this every month until you have the smallest one paid off. Everytime you pay off a debt, call the company and tell them to close the account ... that you paid off the debt and that you do not want to leave the account open. They will try to talk you into leaving the account open. Don't do this as it is too convenient and you will be tempted and will sink into debt again. You then start paying the most you can on the next smallest debt in line and go on from there until you have each paid off. Every time you get any extra money, whether it be $5, $10 or more, apply it against your debt even if you have already sent in a payment. You can send in payments more than once a month. Don't go out to eat. It's "beans and rice, rice and beans" as Dave Ramsey always says which just means (cheap meals that you can fix at home). LOL Also do things to make money like garage sales, sell on eBay, get a second job, anything to help you get money to apply toward that debt. It's not about obtaining the best credit score, it's about eliminating the debt.

You can get more help on how to accomplish this by reading and listening to Dave Ramsey. He has a talk show which you can hear on line through his archives, or live on line, or by radio by entering your zip code and find out what time of day his show airs. Plus there is a lot of reading material on his site to get you started. In addition, he has forums from his site to get help and advice from other people who are in debt. Dave has been there (with debt) and knows what it is like and is now helping people to get out of it. There are people that have followed this method with over $100,000 in debt and have gotten it paid off without going through bankruptcy and without getting some debt help company to do it for them. Dave's website link is below. I would also consider getting his book if you can. I gave mine away a few days ago to someone else on Yahoo Answers who is trying to do the same thing. It is worth the money and not that much, but you can obtain much information just by reading his site, going into his forums (there is a free trial offer) and listening to him on air.

I hope this information helps you and you get the relief you need. Best of wishes to you.

http://www.daveramsey.com
Reply:You can visit http://www.cashguru.info and find very useful tips and several articles on debt consolidation. Report Abuse

Reply:Get valuable tips on debt consolidation from http://moneymentor.cashmatter.... . It's a very useful website. Report Abuse

Reply:Have you tried going to your bank/credit union? Or you can try Citibank Financial. Its all going to depend on how your credit rates with the loan companies.
Reply:There are reputable companies and there are some sharks. Debt consolidation is a last resort. The debt won't go away but it will help smooth out the repayment.

Many people use debt consolidation as an excuse to keep spending and two years later they are deeper in debt. Please don't do this!

The way to find a reputable company is to do your own research. You could ask your bank whether they will help. If they won't, ask them if they can recommend a company.

You can find good companies online. Have a look at this website because there are a lot of options there.

Good luck!
Reply:hi there! Yes I am posting these links below to people with similar problems and I am getting tons of best answers, not sure which one of them is doing the trick though just take your time and go through it you are bound to find what helps you out!

http://credit-cards.ebookorama.com

http://finance.ebookorama.com

http://credit.ebookorama.com

http://credit-repair.ebookorama.com

if you get any luck please don't forget about me, hope it helped you.
Reply:There are always good, bad and in between. Two articles in my resource box might give you some ideas about how to choose the right company. Hopefully it helps. Good luck!
Reply:Beware of the credit counseling companies, when they report on your debt on your credit report that is just as bad as if you filed for a BK. I know because I have been in the loan business for 12 years, those companies are not good to show on your credit report. Please avoid at all cost. $6000.00 is not a great deal of money, so just make a payment budget, send it to your creditors and negotiate a payback plan. You can do that yourself. Also negotiate how it would appear on your credit and get all of this in writing on there letterhead. Also try lexingtonlaw.com for credit repair, they have helped me, tell them 196537 sent you! :)
Reply:If you are having to borrow the money to make the payments each month, you may be over-commited and approaching bad debt.

The UK has several debt management charities who will try to help you work out where you stand and what your best course of action is. A commonly used charity in the UK is the Consumer Credit Counciling Service. There may be a similar group in your part of the world.

The US has a similar "not for profit" group called American Consumer Credit Counselling. You can read more about them at http://www.consumercredit.com/about.htm.... - other such organisations exist.

If you can afford the payments each month and you just need to pay less interest, shop around. There are many websites that compare interest rates for you.

Be careful not to take insurance you don't need. Read any policy documents carefully to be sure they match your needs. Consider getting a quote with and without insurance as this may increase the total amount you repay significantly, up to 30% in some cases.

Hope that helps,

froggie

What will reset the statute of limitations for debt in Colorado?

2009-07-31T03:36:00.001-07:00

Can't seem to find any Colorado laws detailing what would constitute resetting the SOL on debt collections in the state of Colorado? G/F has some items on her credit report showing 4 years old when the Colorado SOL is 3 years. However, she made some payments on the debt within the past year. I'm wondering if Colorado considers making a payment to be resetting the SOL on that debt, or if the original date would be valid for SOL purposes regardless of her making some payments?

What will reset the statute of limitations for debt in Colorado?
In Colorado any action you take with a debt ie:answering debt collectors calls,making payments,ect. all reset the debt. It is considered aknowledging the debt and thus resets the SOL. The best advice I have is to Ignore it if it is that old.
Reply:I'm not sure about Colorado, but payment typically restarts the SOL in most states, especially if you acknowledge the debt.
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

lily

How much debt would we be in if either Obama or McCain came into office?

2009-07-31T03:36:00.000-07:00

Some economists say we'd be in debt of TRILLIONS of dollars.

How much debt would we be in if either Obama or McCain came into office?
Your teacher is right -- although it depends over how many years it is calculated. It is trillions.

Here is a good podcast (25 min) analyzing both candidates: http://www.npr.org/templates/story/story... It would be good civics education for you.

Don't worry too much. Most of these are campaign promises. I doubt either of these two would get the spending OKed. And they are too smart to ask for it (unlike a certain politician who cuts taxes and then asks america to go shopping in order to support the war.)
Reply:We're already in debt TRILLIONS of dollars (around 7-ish) so barring a complete miracle, that prophecy will be true no matter who gets in.

I'd bet on Obama to do a better job of reducing the rate of increase of the national debt than McCain right now. The republicans used to be the party of fiscal responsibility, but they haven't shown it in decades. The democrats will waste money, sure, but they'll at least pay for it by raising taxes instead of borrowing from China.
Reply:Either way we are still in debt trillions of dollars. The republicans have no idea how to control spending, but the democrats have no idea when it comes to basic economics. We desperately need a new political party in this country, one that understands markets and how world economies function yet doesn't spend money it doesn't have. A political party that sees the benefits of privatization, while still regulating things like rogue financial institutions. Both candidates seem like neat guys, but I don't have much faith in either :-(
Reply:Our national debt is in the trillions. Interest on this debt comes to about 300 billion per year.

Much of this debt is held by foreign countries. With all the money we spend on foreign oil and interest on our debt, pretty soon we're going to run out of money. We will have to declare bankruptcy if we can't keep up our debt obligations.

If you are young, I would be very concerned about the future of your country. Our population is very poorly educated and we are losing our work ethic.

I'll be gone when the riots start.
Reply:i don't know how many trillions but Bush put us in this predicament and mccain is just going to carry on what bush did so do we want 4 more years of that? we are already in the toilet as it is under bush

Is foreclosure debt relief still taxed or not?

2009-07-31T03:35:00.002-07:00

Recently, there was talk that the IRS was changing its rules so that debt relief experienced by persons who lost their homes to foreclosure would no longer be taxed. What's the status on this rule change?

Is foreclosure debt relief still taxed or not?
Mortgage foreclosure is still considered to be taxable by the IRS.
Reply:See this link.

http://finance.yahoo.com/taxes/article/1...
Reply:It passed.

Criteria:

Cancelled in 2007,8,9 only.

Taxpayer not in bankruptcy.

Lived in/Owned it for 2 years as main home.

Debt less than $2Million.

Money was only from buying, building or improving home.

(No cashouts).

Any money not included in income is deducted from basis of house (but not below zero).

See form 982. (If you don't use the form, it's considered other income.)

What if my states statute of limitations has expired on an old debt?

2009-07-31T03:35:00.001-07:00

Does agreeing to make monthly payments but them not accepting have anything to do with the debt becoming valid again or does the statute of limitations still come into play? It has been almost 5 years and just now contacting me about an old debt in NC. The limitations for NC is 3 years but I told them I could possibly do a very small amount each month and they said it wasnt acceptable. Im dealing with an atty. by the way. What should I do? Can it still go against my credit if the limitations is up?

What if my states statute of limitations has expired on an old debt?
First of all Attorney (who is acting a as A Debt Collector)

still has to abide by the laws of FCRA. Make them validate

the debt, and whether they bought ithe debt or were assigned, and get it in writing. If it is past the Statue they

can try to collect all they want but can't pursue collections

unless they can validate the debt. Read thru this website

it will explain what they need for validation and if they place

a judgement on you without validating it, then you can sue them back. I got tired of debt collectors, so I send an all in one letter, stating not to call me at home or work, and proof

that you purchased or were assigned a debt, explain and show how you came up with the amount you say I owe, and

a copy of the signed contract that I signed saying I owe you

the money, and if you can't provide proof withing 30 days

that I invoke my rights to file a lawsuit against them.

Read thru this website carefully, all the letters are here and

lots of other information creditinfocenter com
Reply:Well statue on credit is 7 years. If it's a revolving dept, it probably recycles after it's passed on to different collectors. Ask your atterny, but if the refused you making payments, they may have lost the rights to collect. But if you verbally agreed to make payments at all, statute of lim may be null and void now too.
Reply:I haven't looked into this much, but I do know that acknowledging a debt with intention to pay it can extend the SOL in some jurisdictions. As far as credit goes, there is just going to be one listing on your report for the unpaid debt, it's not a continually updated thing, like where it would keep saying "the person still hasn't paid.

Dealing with an attorney was a good idea. If you have an attorney, let them talk to the people who own the debt. Talking to the collectors can be frustrating and they really have no obligation to be honest with you. So, don't necessarily believe what they tell you. You have to understand that these people have limited legal knowledge and their only intention is to get money in a lump sum so they can earn a commission.

How much of a burden is credit crad debt when you apply for a mortgage?

2009-07-31T03:35:00.000-07:00

I racked up considerable credit card debt in college. Yet I am very good about paying in every month and have never defualted or been late with a payment for ANY kind of debt. My income is above average but my total debt is about 1/4 of my income. how much of a problem does the bank view this as?

How much of a burden is credit crad debt when you apply for a mortgage?
Mortgage loan investors establish guidelines for acceptable debt to income levels. The industry standard is 36% of your income, including your mortgage payment, property taxes and homeowners insurance. With the advent of automated underwriting these guidelines are no longer the "hard and fast rule".

Mortgage lending is a risk based industry. The higher your loan to value (the less down payment you provide) the stronger your credit history, cash reserve position, and more important your debt to income ratio become.

There are a number of compensating factors for a high debt to income ratio that automated underwriting considers and that a manual underwriter may consider. Things like high credit scores, excellent cash reserve (available cash remaining after closing, job stability with a proven history of pay increases, or, as perhaps may be your case, completion of studies allowing you to enter into a field with a higher projected income, all factor in.

A consultation with a mortgage banker will enable you to determine your qualifying abilities.
Reply:Yeah, depending on how many credit cards you have and their balances, it can dramatically effect your ability to get a mortgage. Your best bet is always to pay the minimum payment on the cards with the lowest apr's, while paying as much as possible on the higher apr cards, until you've paid them off and cancel the accounts.

When applying for a mortgage, they count your maximum credit limit, not your actual balances. So if you have 5 cards with a 5,000 limit each, that counts as having 25,000 in debt, even if you only have a combined balance of 5,000, because they view it as your being able to, theoretically, go out the next day and max them all out.
Reply:My mortgage broker said that your total monthly payments for your debt including the mortgage , taxes, and insurance that you would be assuming, should not total more than half your monthly income.

Of course that was a while ago, and it may be that different mortgage lenders have different guidelines, and your income to debt ratio is not the only standard that they would use, like how much money you have for a down payment. Usually 15% of the purchase price is the optimal amount.

Play around with the site in the link below.

Do some research about buying a house.

Lots of people will tell you to save your money and not use a mortgage broker, but my mortgage broker was great, and she was worth it. She was able to wheel and deal over things that I would not have known to try.

Good luck
Reply:It is unsecured debt and it will be considered a risk. You need to find out your FICO score-that can be found on your credit report and is a better indicator of your creditworthiness, as well as the percentage rate you will be charged.
Reply:huge, pay down the card first. to a manageable level.
Reply:Credit Card debt is only part of the equation and really only counts when figuring your debt to income ratio. For instance you could have significant credit card debt but no car payment and still be ok. Other factors are your credit score and FICO. Best thing you can do is talk to lenders and see what they can offer you. Keep in mind more favorable factors such as low debt ratio and high credit scores will reduce your intrest rate.
Reply:Most good rates/banks will allow 40% gross monthly income to be taken up by debt including the new mortgage.

example if you made gross of 8000 per month all your bills with the mortgage could add up to 3200.
Reply:You're fine. 1/4 of your income is fine. It's easier to get a house than a car as it's better collateral. As long as your credit score is OK and it's only 1/4 of your income it shouldn't matter. It's charge offs and biting off more than you can chew that hurt your chances.

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What happens if you don't pay off a debt to a collection agency after so many years?

2009-07-25T06:35:00.001-07:00

I have a $7,000 debt sitting on my credit report since 2003. It says it will come off in 2010. What does that mean? It hasn't been updated by the collector since 2003 and I haven't received notices about paying it since then. What happens after 2010 if I don't pay it? Does it come off my record for good so I don't ever have to pay it? Please help!

What happens if you don't pay off a debt to a collection agency after so many years?
Having worked for credit card debt collection, here is what I know.

After 7 years on the credit report, it will fade away, in essence giving you a clean start.

Can the company still require you to pay off your debt? That depends on state law. I live in state of DE, where there is a 7 year statue of limitation, thus after7 years, the collection agency will not win. Go to google/yahoo and type in statue of limiation to learn about your state laws regarding limitations.
Reply:well i just want to share something with you that if u dont pay off you debt it could seem like a short time but my child is seven and i had a credit card when she was a baby im still paying for the stuff i bought with that card for her and it is still on my credit report and that was in 2001 so i dont know if the seven year theory applied to my situation and I've been trying to move and i lost out on three aparment choses and it really hurt because its hard enough out here to survive but to have something like your credit stand in the way of your happiness it sucks since then i have been paying to resolve my credit issues so good luck to you i hope this helps u understand somethings about credit wish i had worked mine sooner i would have been able to move
Reply:unpaid student loans will never drop off your credit report.
Reply:Yes...I am pretty sure that is what happens....I could be wrong but I am about 90% sure it will come off then and you don't pay them back......good luck!!

What is the growing trade deficit and the national debt?

2009-07-25T06:35:00.000-07:00

When someone buys a toyota for example ,how does that put us in a position to have debt to japan.Is it because of countries who lent the US money by buying government bonds?Please clarify.

What is the growing trade deficit and the national debt?
Most of your Toyota is made in Japan and there is quite a price to pay for transport. It matters that we buy more than we sell because our currency will become weaker thus taking more money to buy things and its money we don't have.