money sectionmoney sectionIf your bank account withdrawals exceed your account balance, your account goes into the negative. Your bank may assess overdraft fees, which can cause the account to fall even further. Simply overdrawing your account should not prevent you being able to qualify for a mortgage. Lenders generally have no way of finding out about your past bank account history. If you fail to deal with overdraft situations, however, those debts could affect your ability to obtain a loan.
If you're in over your head with credit card debt and can't afford to pay off the balance, or even make the minimum payments, the credit card company’s settlement offer may seem like the answer to your prayers. Before you write your creditor a check and forget about the debt forever, know that unpaid credit card debt can come back to haunt you in the form of a tax liability.
Defaulting on debt can send your personal finances into a tailspin because creditors might begin charging additional interest and late fees. Furthermore, failure to pay credit debt can end with a lawsuit, garnishment or bank seizure. Taking action before the problem escalates is key to avoiding a legal battle. Rather than wait until your creditor files a suit, negotiate a settlement early to rectify the situation.
When you have more credit card debt than you can see yourself ever managing to pay off, one option is to negotiate a settlement with the credit card company. When you agree on a settlement, the creditor accepts an amount less than the total you owe and agrees to cancel the rest of the debt. This sounds like a good deal, but the canceled debt can hurt you at tax time next year.
If you die with bills yet to be paid, those bills will still be there afterward. Someone will have to pay them -- and in many cases, that someone will be you, with assets taken from your estate. Key considerations in determining what happens to your bills when you die are who's responsible for the debt, how much your estate will be worth, and, if you're married, the state in which you live.
When you make purchases on your credit card, you aren’t only responsible for the amount you charge, but also the interest charges on your purchases. CNN reports that, as of 2011, the average credit card interest rate is almost 15 percent -- an increase of over 20 percent from 2009. When credit card debt creeps up on you, settling your debt is an option, but doing so could wreak havoc on your credit rating.
If you are carrying the heavy burden of large credit card debt, you may be considering the option of debt settlement to provide relief. Debt settlement companies often make promises in their advertisements to reduce your debt to a fraction of what you currently owe. What these companies may neglect to tell you about is the possible tax consequences of debt settlement.
Settling a credit card is an option once you are behind on your debt. When you settle a credit card you pay less than you currently owe, in a lump sum, and the credit card company agrees to forgive the remaining amount of the debt. Settling a credit card does negatively affect your credit score, but it is better than having outstanding bad debt on your credit report. Settling a credit card debt requires filing certain tax forms and keeping certain documentation on hand to prove your settlement.
Although many people find themselves in credit card debt, nearly as many find themselves confused about their options for getting out of debt. Debt management, debt consolidation or debt settlement---it's easy to find your wandering about the best course of action to take. If debt settlement is the option you choose, you should be aware about some common myths about credit card debt settlement.
When your parents leave debts behind when they die, you will not be directly responsible for the debt. However, the debt can negatively impact your inheritance and will have to be paid if some assets are still left to pay them. Otherwise, debt will be forgiven by the creditor at that point.
As a customer, you can dispute an invoice received from a company or creditor. Companies and creditors can make mistakes, and they may inadvertently charge you for items not purchased. Rather than ignore wrong information on an invoice and risk lawsuits and additional charges, talk with creditors to settle disputes.
Each state's domestic relations laws encourage divorcing spouses to divide their assets and liabilities without judicial interference. However, courts will divide spousal property and debts when spouses are unable to agree upon their division. In Florida, when a separated spouse dies before the other spouse, credit card companies cannot seek repayment from the surviving spouse if the card was individually owned.
Having a deceased parent makes paying for school a little complicated. You don't want the burden of government and private loans, but paying out of pocket for college may be outright impossible. When it comes to grants, however, you may have options. Because federal grant programs and some private grants determine a student's eligibility based on how much his parents can contribute, you may be the perfect candidate for these programs.
Unpaid bills often give debtors the unenviable choice of paying the account in full or trying to settle for a lower amount and dealing with the consequences of that down the road. Neither choice is correct in every situation. Your current income and long-term goals should drive the decision, such as if you want to borrow money in the future.
Negative amortization is a credit trap that makes it all but impossible for a debtor to pay off personal debts, including credit card accounts. The Federal Reserve and federal government have laws and regulations to prohibit the balance-increasing effects of negative amortization and specifically target credit card debt. These rules require credit card companies to deal openly with consumers and disclose policies, fees and interest rates in plain English.
When you've just lost your mother, the last thing you want to think about is what to do about her car payment. For this reason, probate law specifies that only the executor of the estate has to worry about the estate's debts in most cases. However, under certain circumstances, you may have to deal with her creditor.
When you are owed money by an individual, you can use the legal system to try to collect the money. If that the debtor passes away before the debt is repaid, you then have to deal with the executor of his estate and possibly the probate court. In some cases, you may have to collect through the value of the deceased individual's real estate. To collect, you must be vigilant and make sure that you are paid by the executor.
Unemployment insurance in the Commonwealth of Massachusetts is designed to ensure that those who have lost their employment due to no fault of their own have at least a subsistence-level income to cushion the blow. In this way, displaced workers and their families will not suddenly be rendered destitute by a period of unemployment. Some workers may wish to supplement their unemployment income by tapping into their 401(k) plan. However, this may affect your unemployment benefits.
When a loved one dies, it is a difficult time for the family, both emotionally and financially. The relatives may wonder who is responsible for the debts of the deceased. The estate must pay his debts. A spouse may be liable for some debts, such as joint credit accounts. However, according to the Fair Debt Collection Practices Act, a creditor may not collect the deceased's individual debts from his relatives.
The decision to settle an account with a creditor depends largely on your present financial circumstances. A debt settlement can save you money and possibly stop harassing creditor calls. But there's a down side to debt settlements, and it's best to consider the advantages and disadvantages before making a decision.
Cars often carry sentimental value to people, and when the owner of a vehicle dies, his heirs, particularly his children, may want to keep the vehicle in the family. Even without sentimental value, the vehicle may be reliable and worth keeping to one of the deceased's children. Under many circumstances, a son or daughter may pay on a parent's car loan and keep the vehicle.
To collect the dividend paid by a stock, an investor or trader must own the stock on a specific date. The shortest holding time to collect the dividend is that one day. However, the mechanics of collecting the dividend and making a profit from the transaction are a little more complicated.
Chapter 11 is a form of bankruptcy protection that can be used by any business. In practice, it is mainly used by corporations, with individuals and sole proprietors more suited to Chapter 13. Chapter 11 involves the business reorganizing its finances and proposing a plan to settle its debts over time.
When you no longer have a paycheck to rely on, you may turn to unemployment insurance for an income while you search for another job. Though the weekly benefits you receive are only a percentage of what you earned previously, they can help tide you over. Still, you may wonder if a lump sum payment wouldn't make it easier for you to budget. But the unemployment insurance system isn't set up to make lump sum payments.
If you owe money on a bill, a creditor may try to induce you to pay by calling you at home or work and asking for payment. Or the creditor may turn your account over to a collection agency. Collection agencies receive a percentage of the money they collect, which provides an incentive for them to put great effort into collecting the debt. But the government has established regulations to govern collection efforts. While a creditor can make a legitimate effort to collect a debt, he may not harass you for payment.
Creditors want you to pay funds owed to them. However, some creditors are willing to negotiate, and if you experience economic hardship, they'll work with you and delay filing a lawsuit to recover funds. But if you ignore creditors or disregard the debt, you're likely to get hit with a lawsuit.
Having a debt slip through the cracks may sound desirable to some people who are overwhelmed with their bills. However, if you're trying to control your finances, you know that you need to find who you owe money to and start a repayment plan. If your creditors are personal acquaintances or relatives, they may have forgotten they lent you money. On the other hand, if you owe money to a large corporation, they may have written off your nonpayment as a loss, but it still shows up on your credit report. Then, if you apply for a loan, your credit…
When a lender charges-off a home equity line of credit, it means that the lender has updated its records for accounting purposes to report the HELOC as a bad debt from which it does not expect to receive future income. On charged-off HELOCs, the debt remains on the lenders books, but it no longer appears as an income generating asset in the lender's loan portfolio. When your lender charges off your debt, it does not mean that you no longer have to repay the money, and for a number of reasons, you should attempt to settle the debt as soon…
Writing a letter to your credit card company to negotiate a debt settlement can help you pay off your balances for less than what's owed. Not every creditor is opened to the idea of a debt settlement, though. Before approving your request, creditors examine details of your current financial standing.
Being the beneficiary of an annuity is a mixed blessing because someone close enough to you to name you beneficiary has to die for you to receive the money. At first glance, it would seem reasonable for you take the money in a lump sum. In fact, there are several complicating factors in need of consideration that could either save you money or cost you a lot more in taxes.
With rising delinquency rates and the very real risk that they will not be paid the amounts they are owed, credit card companies are settling older debt for less than the balance. Capital One is in the same situation as the other credit card companies. Published programs about debt settlement are rare, as banks don't want settlement guidelines to become public knowledge; to work out a settlement, sometimes you just have to ask.
When you have accumulated a lot of debt you may need to increase your income to pay off the debt more quickly. Depending on the amount of debt you have you may need to take a two-step approach, finding a temporary second part-time job and finding a new job that will earn you more money. Before looking for jobs, have a budget in place and stop using your credit cards to make your hard work pay off.
The Fair Debt Collection Practices Act provides protections for consumers who are behind on their bills, and it is enforced by the Federal Trade Commission. Creditors and bill collectors must abide by strict rules regarding how, where and when they contact borrowers. Consumers may even request that they not be contacted, although stopping contact does not eliminate debts.
In the past, credit card companies operated under the Universal Default rule. This rule allowed one credit card company to punish you if you defaulted with another credit card company. In 2009, the Credit CARD Act was enacted, limiting credit card companies' abilities to penalize consumers. However, you still face some serious consequences when you default on your credit card.
Settlement on a credit card debt is a voluntary agreement between two parties. Because of that, no one can precisely predict settlement offers on credit card cases headed to court. SmartMoney reports that settlement offers on credit cards usually range from 20 to 70 percent -- but that is before the filing of a lawsuit. A lawsuit gives the credit card company or debt collector more leverage, making settlement discussions more challenging.
Appearing before a judge because your credit card bill got out of control isn't the best option for your financial health. If you deal with creditors outside the judicial system, the outcome usually will be much more satisfactory for both your mental health and your credit record. The sooner you talk to a creditor and reach an agreement, the sooner the problem will be out of reach of the court. Make sure to get documentation of any promises a creditor makes to you.
Cell phones have become a major part of many people's lives. Some individuals use their cell phones as their primary phones, opting to forego a residential land line. Consumers with bad credit have to do a little more research to find a good carrier that is within their budget and offering the features they require. They may find it difficult to find good deals on cell phone plans, but there are still options available.
Many different finance companies, including banks, issue different types of credit cards -- cards that provide access to a line of credit. These cards allow an individual to purchase goods by borrowing money from the card issuer. Generally, a person is required to pay back all of the money that he borrower. However, in some cases, particularly, if the bank violates the contract, the law will nullify the contract.
North Carolina uses a standard probate process to settle a person's estate when she passes away. The probate process is designed to ensure all assets are accounted for and valued, all debts are paid in full and the wishes of the decedent are carried out according to the terms she set down in her will. If there was no will left, the state of North Carolina distributes remaining assets according to state law.
Credit card settlement involves negotiating with your lender to reduce the balance you owe, making your debt more affordable. However, debt settlement comes with serious consequences. As such, you should only consider it as a last resort. If you can afford to pay off your credit card debt, you should do so.
Credit card companies must protect valuable consumer data, such as date of birth, Social Security number, as well as telephone numbers and home addresses. With identity theft growing ever more sophisticated, personal information needs protection and credit card companies must protect private information. However, credit card companies and credit reporting agencies routing share private information, using that private information for verification purposes only.
In debt settlement, a creditor agrees to accept less than the amount you owe as full payment for an overdue debt. Although you have the right to settle your debts, from mortgages to home equity loans to credit card bills, there is a cost, to your wallet and to your credit history. Debt settlement isn't cheap, and the industry includes some unscrupulous companies. However, learning your rights and doing basic research before you sign a negotiator's contract can protect you. You also can try to negotiate a debt settlement yourself by contacting the creditor directly.
Whenever you pay for something using your credit card, you are adding to the balance you owe. There are two major ways to pay off your credit cards. The first is to make regular payments to the credit card company until you have paid the balance off, with interest. The second, which is not guaranteed to work, is to reach a settlement in which the company agrees to receive only a percentage of the amount owed and consider the debt paid.
While a credit score doesn't define you as a person, it does give lenders an idea of how risky it is to offer you credit. If you establish and maintain a high credit score, you typically have access to more desirable loan offers, saving yourself money in the long run. To increase your chances of building a good credit score, acquaint yourself with the elements of your credit history that impact this three-digit number. Several credit scores exist, but most lenders use your FICO credit score to determine your creditworthiness.
Generally speaking, creditors are more likely to lower your interest rate or alter your payment terms rather than reducing the amount of debt you owe. Since you make a legal agreement to pay your debt when you open a credit card account, creditors have various legal means to enforce your repayment of the debt. Ironically, the more you fall behind on your payments, or otherwise show an inability to pay, the more likely your creditors are to settle your debt for less than you owe. Of course, debt settlement damages your credit score and could result in adverse tax consequences.
Settling your debt with creditors takes persistence and patience. When you find that the amount you owe is overwhelming and you can't keep up the payments, it's time to take action and contact your creditors in an attempt to reduce your account balances. Alternatively, there is another option if you do not have the time or ability to do it yourself.
After the death of a spouse, the last thing you want to think about is joint credit card accounts, but such matters are still important to address in a timely fashion. When the credit card account is a joint account and one spouse dies, the responsibility of handling that account will fall on the surviving party.
Many companies promise to be able to settle a debt for pennies on the dollar, meaning that you can pay a small percentage of your debt and the debt collector will consider it paid. Unfortunately, it is not that simple and there are no guarantees that a debt collector will agree to any kind of settlement, much less one that offers such a low percent of the debt.
If you can't afford to pay off your entire debt, you may be able to negotiate a debt settlement. With debt settlement, your creditor agrees to allow you to pay off your entire debt with one lump sum payment that is less than the amount you owe. Occasionally the creditor may agree to a payment plan as well. You can choose to negotiate directly with your creditor, or you may hire the services of a debt settlement firm. The dangers of debt settlement include long-term credit ramifications and possible legal action.
Debt settlement may stop dunning calls from creditors and collection agencies, but it also reflects badly on your credit score. The Equifax, Experian and TransUnion credit bureaus show that you made a settlement rather than payment in full, which is a negative status. Sometimes you can negate the negative credit score effect if you negotiate the settlement to include the account's credit-reporting status.
Settling secure debt can sometimes be more difficult than settling unsecured debt because the creditor may want to seize the collateral securing the debt you owe. Under your promissory note, the creditor has the legal right to seize the items used to secure the debt. A lender can ask for property, either real estate or personal, to cover the risk when making a loan. The property is called collateral, and the lender can seize the property if you default. You can attempt to settle the debt, but the lender may seize the collateral anyway.
Bankruptcy and debt settlement are both options available to debtors who cannot handle their monthly debt payments and need help. Both are serious options: more common options include debt renegotiation and debt consolidation, which either pay off the entire debt or change the debt to make easier to deal with. But sometimes the debtor still cannot make payments or cannot qualify for the necessary changes, so settlement or bankruptcy are the only options. Both have their advantages, but debt settlement is a less drastic option for most situations.
Knowing whom a credit card debt belongs to is the first step in paying, disputing or settling the account. Credit card debt is transferable to a successor creditor, another business or agency who legally receives the account from the original creditor. A successor creditor is still bound to the same laws regarding collection as the original credit card company.
Considered heroes by many, police officers protect, defend and help citizens in dangerous and life-threatening situations. Because of the hazardous and risky nature of the job, hundreds of police officers lose their lives in the line of duty each year, with 160 officers killed on duty in 2010, according to the Officer Down Memorial Page. Many of these officers leave behind spouses and children who must carry on emotionally and financially, which is why a number of scholarships exist from various sources to provide college money to the children of fallen officers.
What happens to your assets when you die depends on how you set up your estate while you are still alive. When you pass away, one of your biggest sources of liquid assets could be a bank account. After you die, the money in your account can be transferred to a beneficiary depending on the type of account you have.
Bankruptcy is a process in which a consumer seeks legal protection from debt. In the case of married couples, both people may be included on the same bankruptcy petition, however, each person must submit his own information and each person is granted a discharge in their individual names. When only one party of a joint account files bankruptcy, the debt is not entirely discharged and the other party on the account must be aware of the consequences.
If your debts are past due and you cannot afford to pay the original debt amount in full, attempt to reach a settlement deal with your creditor. The final decision is up to your creditor, but depending on how bleak your financial situation looks, it may be in your creditor's best interest to accept your offer.
Paying the full balance on your credit card and thus avoiding interest generally makes sense from a financial perspective. One exception is when you can instead use the same money to pay off other debts carrying a higher interest rate; another exception is when you can instead pay off secured debts that carry more serious consequences for nonpayment. In all cases, though, merely paying the minimum required payment on the card will prove much more expensive than it might appear.
If you've dug yourself into a debt hole, you're probably looking for a quick way out. There are many options that can help you eliminate your credit card debt; these methods range from putting together a budget to filing for bankruptcy. One option that falls somewhere in the middle is a credit card settlement.
If you don't pay your credit card debts, the original creditor or the collection agency the debt is subsequently sold to might choose to hire an attorney to obtain a judgment against you. A judgment is a legal avenue for making you pay the debt. However, a judgment can stay on your credit report for a long time, negatively impacting your score and hindering your chances of getting new credit. Thus, it's usually in your best interest to avoid going to court by contacting the attorney suing you.
Debts such as unsecured loans, credit cards and medical bills can become a headache and invade every part of an individual's life. For instance, unpaid bills can result in lawsuits, wage garnishments and a lower credit score. Debt can even cause trouble for a person wanting to buy a home. Therefore, settling debts has major advantages, such as eliminating the unpaid bills, stopping extra fees and charges or avoiding personal bankruptcy.
Credit cards give consumers an easy way to make payments, but this convenience also makes them easier for criminals to steal. If someone takes your credit card or credit card number and uses it, you may be worried about your responsibility to pay the charges. When dealing with fraudulent credit card charges, your liability is relatively small.
Reverse mortgages are home loans with a twist. Instead of the homeowner making monthly payments to the lender, the lender advances money to the homeowner against the sale of the home in the future. These heavily marketed mortgage schemes have become a popular way to keep low-income seniors in their homes, and in some situations have proved to be advantageous to the borrower as well as the lender. However, seniors should look at reverse mortgages as the arrangement of very last resort.
Credit cards often offer bonus programs or zero percent interest offers, which can make them seem like an attractive option for paying off your loan. It's possible to have a loan put on your credit card, but it isn't always the smartest thing to do. Bankrate.com suggests that doing so is a big mistake.
The Credit Card Act of 2009 protects consumers by limiting the amount of interest a credit card issuer can charge to an existing account. Customers who are paying high interest charges are able to receive interest rate reductions. Chase credit card customers receive periodic account reviews for credit line increases and interest rate reductions. However, the best way to increase the chances of having the interest rate on a Chase credit card reduced is to contact Chase directly.
Consumers sometimes look to settling their credit card debts as a possible way to help them out of debt difficulties. Your ability to settle your credit card debt comes from you and your credit card company's willingness to negotiate and enter into an agreement. You can always try to renegotiate the terms of your credit agreement with your creditors, though there is no guarantee it will work.
Creditors may be willing to cut their losses on consumer credit card debt and accept less money than some customers owe on their accounts. There are drawbacks to settling with creditors because debt settlements usually cause credit scores to drop. However, settlements may be the best option for some people who are deep in debt and have no other way to pay their creditors.
Paying for college can be a financial hardship for many young adults, and it can be especially difficult for those who have lost parents as a result of military action. Several organizations aim to offset the financial hurdles faced by the children of deceased military personnel by making scholarships and educational grants available.
If you fall behind in payments on a large a credit card debt, you risk the possibility of being sued in civil court by the company that issued the card. If you lose, you will be legally ordered to pay a certain amount of money to the company in damages. However, you may be able to settle for a smaller amount of money out of court after the civil judgment has been issued.
Collections accounts on your credit report will have a damaging affect on your credit score and will hinder your ability to obtain credit for home and car loans. Settling these accounts instead of paying off the account in full will do more to hurt than help your credit score.
If you're overwhelmed by credit card debt, you may be wondering what your options are for dealing with it. Depending on your situation, you may consider debt management, consolidation or even bankruptcy. If you're behind on your payments, another option is debt settlement, which can reduce what you owe. While you can hire a debt settlement company to negotiate on your behalf, it is possible to settle your credit card debts on your own.
If you're having difficulty repaying your debts, it's generally better to seek out a repayment agreement with the lender rather than to attempt to settle your debts. However, if you're several months behind on repaying your unsecured debts and you have no way of making your monthly payments, it's possible to enter into debt arbitration --- offering a fraction of the account balance to immediately resolve the debt.
When choosing whether to pay a credit card in full or settle, it's usually better to pay in full. But if your financial situation is such that paying the debt will jeopardize other things, like your ability to pay your mortgage or feed your family, it may be necessary to settle. Visiting a qualified credit counseling agency is free and can help you sort out your best options.
You can settle a credit card debt that is on a payment plan -- but only if the credit card company agrees. Settlements are voluntary agreements between two parties, and the card company cannot be forced to settle. The company offered you a payment plan to help you recover from a financial setback. Switching to a settlement will require more discussions.
When borrowers have a loan, they generally have two options: making payments or not paying. When enough payments are made, the borrower pays off both the principal and the interest on the loan until it is paid in full. If the borrower does not pay, the borrower and lender often work out a way to settle the debt through other means, such as a debt restructuring strategy. The lender considers the debt settled if the borrower pays off at least part of the loan and the lender forgives the rest to close the account.
Your credit card debt is climbing. You're losing sleep and ignoring phone calls that could be from credit card companies and collection agencies. Filing for bankruptcy is not an option yet, but may become one if you don't figure something out. That something could be settling your credit card debt, but it may take some work and time and can be expensive.
Having a large amount of credit card debt can be overwhelming, especially if you are no longer able to pay the monthly payments. If you are to the point of considering settling your credit card debt versus declaring bankruptcy, it is a good idea to find out the facts of both options before you decide which avenue to pursue.
In times of economic hardship, people sometimes turn to methods of getting out of debt that they would not normally even consider. For most people, the thought of bankruptcy is an unacceptable or only a last resort. Some people turn to debt settlement as one means of tackling some of their current debt, especially unsecured debts like those accrued through the use of credit cards.
An eviction is a process that a landlord uses in order to remove a tenant from his rental unit. State statutes restrict the specific reasons that a landlord can evict a tenant from his rental, and the length of time that it takes to evict the tenant is dependent on the specific eviction reason. Each state also has different notice periods, so the fastest eviction method in one state may not be as fast in another state.
Accumulated debt from student loans, credit cards or medical bills doesn't simply go away. The type of debt determines how it is handled; for example, student loans from the government must be repaid and cannot be cleared away by filing bankruptcy. Reach out to your debtors and attempt to negotiate either a payment plan or a settlement agreement, which decreases the total amount of debt and could improve your credit score in the process.
You might be able to settle old credit card charge offs or even wipe it from your record. The credit card companies sometimes do this so they can at least get something out of you before you take drastic measures, such as declaring bankruptcy. Settling debt, however, may hurt your credit score but improve your creditworthiness.
When a consumer experiences financial challenges and defaults on his credit card account, it can create a number of challenging results. The card holder may wonder if a default on one credit card could negatively affect his status with other credit cards. Consider the various potential pitfalls of credit card default and its impact on other cards.
When you owe a large debt on a credit card but cannot pay the entire balance, settlement may be an option to consider. Settlement occurs by getting the creditor to accept a payoff of a portion of the balance and closing the account as paid in full. Negotiating the balance to the point that you only pay pennies on the dollar is possible through a series of phone calls with the creditor. Keep in mind that debt settlement affects your credit score negatively and you need to have the money available to make the payment you have negotiated. Also note…
When a parent dies, the surviving child is faced with many challenges, including financial. Several grants and scholarships are available for students interested in attending college.
Children are not responsible for a deceased parent's debt in most situations. Debt, however, does not go away when there are sufficient funds in the probate estate. Children may be liable for a parent's debt if they were jointly responsible for the debt before the parent died. The Fair Debt Collection Practices Act protects surviving family member rights when dealing with debt collectors.
Credit card companies generally have products to fit a range of consumer types. As your credit gradually improves, you may feel enticed to drop a current credit card for a better deal elsewhere. However, changing credit cards can adversely affect your credit score depending on the terms of the new credit card.
Couples getting a divorce often have difficulty dividing their property, but not only the house or family heirlooms. Debts, including credit card debts, must get accounted for in an Illinois divorce. Determining how to divide these debts is not always easy to do, and you should always talk to an Illinois divorce attorney if you need legal advice.
Home ownership won't prevent you from settling your debts, though some creditors and bill collectors may pressure you to borrow against your home to pay your bills. However, if your settlement attempts fail, and your creditors take you to court, they may be able to get a lien on your home. By contacting your creditors in the early stages of your financial problems, or seeking outside help, you may be able to avoid court and get your debts settled.
When the owner of a certificate of deposit dies, the bank or credit union holding the account normally takes no action. The account remains active until the financial institution holding it receives instructions to close it from a party authorized to transact on the account. These mature CDs often rollover multiple times.
Today, credit card issuers may be willing to settle some old credit card debts for just pennies on the dollar. While some people turn to debt settlement companies to help them in this process, there is a great deal of risk in using some of these companies. With some work, you can settle your credit card debt on your own and save some money.
Generally, credit card companies will settle a debt with someone who has business assets -- unless the credit card is a business credit card with the company's assets pledged as collateral. Under that scenario the card company may decide that it has more to gain by seizing some of the business assets than settling the account for less than the full amount owed.
Borrowers who find themselves unable to meet their obligations may consider settling their debts with their lenders. Debt settlement is a process whereby you negotiate with your creditors an amount to pay them to satisfy the loan. The amount that you are able to negotiate depends on your lender, but can be as little as 50 percent of the amount you owe. Settlement is generally an option for unsecured debt, such as credit cards and personal loans, and does have some negative consequences.
If you have a spouse, children or other dependents, and you also have a high debt load, you might worry that if you were to unexpectedly die tomorrow, your debt would be passed on to your loved ones. Alternately, you might worry whether you will inherit a loved one's debt if he dies. There's no easy answer because various factors can affect whether a debt lives on after the holder dies.
When you have a large credit card balance, you may be tempted to try to settle your account for less than you owe. While this can help you save a considerable amount of money on repaying your debt, it can also have some negative consequences of which you need to be aware.
It is possible to legally get rid of all your debts, including a past-due payment on a home equity loan, but you may lose your home. Your home serves as collateral for the home equity loan, and the lender will foreclose if you stop making payments. Filing for bankruptcy can help reorganize your debts and eliminate certain types of debts, such as credit cards. Even after bankruptcy, however, you remain fully liable for mortgage debt. Your only legal option for eliminating the home equity loan is to pay it off, sell the property, or surrender the home through foreclosure or…
If you are about to receive a lump sum due to inheritance, life insurance, lawsuit settlement or for any other reason, you should discuss the situation with your bankruptcy attorney. You may put that money at risk if you file bankruptcy, depending on the state in which you live and whether you need the money to survive.
Separating couples must deal with a variety of issues arising from the breakup of their marriage. Disputes over child support, spousal support and distribution of marital property and debt can drive even the most polite and civil of parties into an all-out war. Fortunately, combat in court isn't the only option available to a separating couple in resolving divorce-related money issues.
Bankruptcy can ruin your credit, forcing you to spend years recovering. The bankruptcy will remain on your credit report for seven years, making it difficult or impossible to qualify for loans at the lowest interest rates. If at all possible you should avoid bankruptcy by working with a government-certified credit counselor. There are dozens of credit counseling agencies in and around Philadelphia and their services are confidential. The counselors can help you avoid bankruptcy by helping restructure your finances and inform you of bankruptcy alternatives available through for-profit companies.
If you settle one credit card for less than the total amount you owe, it can negatively affect your other credit card accounts. The damage the settlement does to your other credit cards depends largely on how the credit card company with which you settled your account reports it to the credit reporting bureaus.
Dealing with the death of a spouse or a loved one is difficult without the additional worry of financial matters. Many spouses struggle with how to deal with the remaining debt after the debt of a spouse. Losing one income, and deciding the best way to care for your family, are all factors in deciding what to do after your spouse dies.
Credit card companies are not required by law to settle a debt with a customer, although some of them may be willing to negotiate a settlement amount under certain circumstances. Credit card debt settlement is a legal option for you to consider as an alternative to bankruptcy, but the credit card company may not be willing to accept a settlement for a lesser amount than what is owed.
U.S. law considers stocks to be a part of a person's estate upon death that are subject to the same inheritance taxes as other assets in the estate. Heirs may wind up with a portion of a relative's portfolio, or the decedent may have willed the stocks to a charity. No matter what happens to stocks after stockholders die, the government imposes strict tax regulations regarding the IRS's cut.
Debt does not die with the debtor, and you can attempt to collect what is owed to you after someone is deceased. This is done by filing your claim with the probate court or executor overseeing the deceased estate. The executor of the estate must pay all debts owed by the deceased before the beneficiaries can receive a penny. This means there is a good chance that you will receive your money, unless the estate was deeply in debt with few assets.
Settling your outstanding debts can be a quick way to get your debt paid off for less than you owe. While this method is effective, it is also an easy way to destroy your credit rating quickly. Debt settlement can negatively affect your credit for some time into the future.
Protecting your credit is essential if you plan to buy a house, lease a car or get a job. Insurance companies also check credit when considering the cost of your policy. If you have good credit with the accompanying credit cards, and the debt load on them is creeping upward, it's a good idea to sculpt a plan to get the situation under control sooner rather than later. It is in your best interest to carefully consider the consequences if your plan includes negotiating a payoff that is less than the amount owed on your credit cards.
When a creditor charges off an account, the creditor may choose to assign the account to a collection agency. If a collection agency is unable to successfully collect on a debt, then the debt may be passed off to another collection agency. When the debt is switched between several different collectors, you may see several collection accounts on your credit report. However, only one collection company can actually collect on the debt.
You have finally realized that no matter what you do your income will not cover your expenses and you're slowly getting in over your head in debt. If you have to decide every month whether food is on the table or the credit card bills get paid, it's time to sit down and come up with a plan to settle your debts and fix your credit. It won't be easy.
If someone close to you dies, the last thing you need is credit card companies calling about debt your loved one left behind. In general, the executor of an estate handles the estate's debts, including credit card debt. Inform creditors of the death and refer them to the estate's executor if they contact you regarding a deceased loved one's debts.
Many parents run up large amounts of credit debt in their later years as they struggle on a fixed income, and their children may worry about whether they will be held responsible for the their parents' debt once they die. Although children are not responsible for the credit card debt, the assets in the estate must stand for any debts incurred before the amount is paid out.
When you settle a credit account for less than the total amount you owe, it can negatively affect your credit score as well as your accounts with other creditors. You can control how it affects your credit report while negotiating the account settlement with your credit-card company. How it affects your other credit-card accounts depends upon the credit practices of the other companies.
Contrary to what many creditors and collection agencies would like surviving children to believe, you cannot inherit a parent's debt unless you were legally responsible prior to the death. However, debt does not disappear and creditors do have a right to collect valid debt through legal means. Unless you are contractually obligated for a debt or are named executor of the deceased's estate,you should direct bill collectors to the probate court administrator or executor assigned to the estate.
In the midst of your grief over losing a parent, you may find yourself fielding telephone calls and letters from creditors requesting payment. Although your parent's credit card provider still possesses a right to collect the outstanding balance on the card, the company may not have the right to collect it from you or any other surviving family member.
If a person passes away still owing a debt on one or more credit cards, the debt generally does not die with him. The settlement of debt after a death can be complex, and often depends on prevailing state laws. If you are left dealing with an estate where there is considerable credit card debt, it's worth treading carefully.
Treat an attorney calling about a debt the same as any other debt collector. Like all other debt collectors, the attorney is bound by the terms of the Fair Debt Collection Practices Act, a federal law. That means he cannot threaten or intimidate you, call you at odd hours of the day or night -- or even call at all if you ask him in writing not to do so. However, attention from an attorney should be taken seriously. The assignment of your debt to an attorney could be the final step before the filing of a lawsuit.
Ignoring credit card companies or debt collectors isn't going to make your credit card debt go away. The MSN Money website reports that you should take a proactive approach to your credit problems by getting help from a qualified source or negotiating with the debt collectors yourself. Refusing to return phone calls or respond to letters could lead to stepped-up collection efforts --- including possible lawsuits. Card companies and debt collectors often agree to payment plans, even on older debts, according to MSN Money.
The death of a spouse can be devastating. Learning about hidden debt and credit card bills can add to the pain. While you may focus on healing from your sudden loss, you may now face problems associated with the debt you did not know about. It can be difficult to decide how to deal with these credit cards.
Settling debt for pennies on the dollar requires strong negotiation skills and an unwillingness to accept "no" for an answer. To be a strong negotiator, you must know how to remain focused and when to end negotiations that are not progressing in a productive manner. The debt-settlement process may extend over a period of days or weeks depending on the creditor and its initial willingness to accept a settlement offer. As time passes, you may find that this willingness increases.
Settling your debts in Ohio can help you eliminate delinquent credit card bills and other unsecured accounts. Secured debts, such as auto loans and mortgages, cannot be resolved through debt settlement. Many people in Ohio consider debt settlement, according to Ohio Attorney General Richard Cordray. However, in 2010 Cordray warned that people should avoid for-profit debt settlement companies because of their high fees and often unethical behavior. Instead, settle your debts yourself.
Settling a debt with a collection agency attorney could help you avoid a court case. You should avoid going to court if at all possible, according to Illinois Legal Aid. The agency reports that you are sure to lose in court if you legally owe the debt and the attorney can prove it. A victory for the attorney could lead to an immediate demand for full payment and possible garnishment of your bank account and wages.
You can resolve credit card debt in Oregon by managing it yourself -- or by employing the services of a debt-management company. The Oregon Department of Consumer and Business Services reports that if you do seek help it should come from a reputable source registered by the state. In 2010 Oregon was cracking down on the debt-management industry by making registration mandatory and requiring companies to display their registration numbers in their advertisements.
The goal to eliminate debt shows a measure of responsibility. High debts can take your extra income and lower your credit score. And once you have a low credit score, it becomes difficult to get a mortgage and auto loan. Many people have successfully eliminated their debts. However, getting out of debt is harder if you do not have extra income. Rather than live with debt, consider ways to get out of debt without a lot of money.
Whether you've been paying off a debt for a month or thirty years, that final payment can bring about relief. In this instance, you might choose to write a letter to a creditor for several reasons, including to request that you be removed from any listings, to validate that you've met all requirements, or to ask that the account be removed from your credit report. Regardless of the specific reason for writing, there are a few guidelines that can help ensure that your final requests are met.
Whether you're looking to reach a debt settlement on your credit card or attempting to pay off a credit card early or with less interest and waived fees, Bank of America has customer representatives specialized in dealing with your specific requests. Banks and other lenders often make special arrangements with customers who show a good-faith effort to pay their debts by lowering interest rates, making payment arrangements or settling a debt for less than what is owed.
Getting out of debt while unemployed may be difficult. Some people who are unemployed find it hard to cover necessary living expenses such as food and shelter. Others who are able to pay for necessities find that there is simply not enough money left to pay down debt, or to even make monthly payments. Telling your creditors about your unemployment could give you more time to find a solution for getting rid of the debt. Some creditors have hardship plans allowing payments to be reduced or even suspended while you are out of work.
Debt settlement can help you quickly get out of debt. The California Department of Consumer Affairs reports that nonprofit credit counseling agencies in the state will manage debt settlement plans for residents of the state. You must deposit money into an account with the counseling agency, which then will negotiate settlement agreements with your unsecured creditors, such as credit card companies. The agency will charge you a fee for the service.
The statue of limitations to settle a debt varies by state. In Texas, the statue of limitations to collect an old debt is four years. This means that once a debt is older than four years, a debt collector can attempt to collect the unpaid debt from you but cannot sue or threaten to sue you. Any debt collector that harasses you or threatens to sue you past the four-year mark is violating the Fair Debt Collection Practices Act (FDCPA). It's important to take proper measures when settling a debt in Texas.
Unless you live in a community property state, you are not legally liable for any debt that your spouse accrues on his/her credit cards. Unfortunately, that fact doesn't always prevent credit card companies and collection agencies from trying to convince you otherwise. Provided the credit cards are not joint accounts held in both your name and your spouse's name, you can formally declare your lack of responsibility for the debts to any creditor attempting to collect from you.
There is no debtors' prison. There is also a statute of limitations on the collection of many types of debt. Because a creditor cannot force a consumer to pay, and can only garnish wages, most creditors would rather obtain a portion of the debt than risk receiving no payment at all, according to Financial Web.
Credit cards can serve as a very convenient payment option. You can use a credit card to pay for small items, such as lunch or a movie, or much larger purchases, such as an airline ticket or laptop computer. The downside of credit usage is the possibility of debt accumulation. If you have credit card debt with Bank of America, the good news is that according to the Federal Trade Commission, it's not necessary to pay someone to settle the debt for you. You can do it yourself by speaking with Bank of America directly.
If you are struggling with high levels of credit card and other high-interest debt, it can be all but impossible to get out from under that burden without renegotiating the terms of your repayment agreement. Fortunately, it is often possible to negotiate more favorable terms with your creditors, since it is in the best interest of those creditors to keep you out of the bankruptcy courts.
If you are swamped with credit card debt but come into a lump sum of money, it may make sense to make an offer to one or more of your creditors to settle the debt for a lower amount than you owe. This helps you avoid high interest rate charges and allows the bank to take that money and lend it to someone else right away. One technique is to contact all your creditors at once and get a settlement offer from each of them, then pay the available funds to the bank that gives you the best deal.
In money terms, debt is when you owe another person or company money. If you make an agreement with a friend to pay her $100 for babysitting your child, you are in debt $100 until she is paid. If you have a credit card with a $500 balance, you are in debt $500. When you fail to repay the debt, you are considered in default. Your friend may not pursue legal remedies, but a credit card company has the legal right to collect and sue you for the defaulted debt.
Credit card debt that is several months past due may be eligible for a settlement agreement. Settlements are reached through negotiation. You can negotiate with your credit card company directly or authorize someone to represent you. Settling credit card debt can result in dramatic savings because it allows you to pay less than the amount owed. However, settlement will also have a negative impact on your credit. You must be at least three months behind in your payments before credit card companies will agree to settle, according to the SmartMoney website.
The average American household had $9,840 in credit card debt in 2007. As debt increases, delinquency rates increase and savings rates drop. Many consumers have more debt than they can ever pay. They are looking for a way out from the collectors constantly wanting money. Debt settlement could be that way out.
Settling credit card debt may seem like the only way to salvage your credit and keep you afloat in a sea of debt. Settling credit card debt can have an immediate negative affect on your credit. Fortunately, the impact is only temporary, in most cases.
Consumers have a number of ways to settle credit card debt. During economic downturns, banks tend to be open to accepting settlements at a significant discount to balances owed. However, such settlements come with long-term consequences, so carefully consider all options before entering into any agreement. Credit scores will negatively reflect these arrangements for seven years and you may owe taxes on the amount of forgiven debt. Always consult a tax adviser.
If your credit card debt is overwhelming, working out a settlement with your creditors may be your best option for avoiding bankruptcy or a lawsuit. In some cases, you can negotiate with credit card companies on your own, though you may want to consider getting outside assistance.
The death of a spouse is a horribly painful experience, which is often compounded by the stress of managing the deceased's financial affairs. If your spouse died leaving behind credit card debt, it is important to know that you may not always be personally liable for these debts. By going through your spouse's credit card statements, you can take steps to secure his accounts against identity theft, stop additional fees while the estate is settled, get the debts paid, and, if you are personally responsible for any of the debt, work toward an amicable settlement with the credit card companies.
If you owe a lot on your credit cards, making even the minimum payment can be difficult, especially if your cards carry high interest rates. Declaring bankruptcy is one way to get out from under those debts, but that drastic step has some serious consequences. You might be able to avoid bankruptcy by working out a credit card settlement agreement with each of your card issuers.
Many people have a lot of debt. If you are working and can pay your bills, everything is fine. However, sometimes unforeseen circumstances come up and you get behind on your bills or cannot pay them at all. This causes a lot of problems for you and your family financially. There are ways to settle your credit card and loan debt and help you get back on your feet.
According to Barry Paperno, consumer operations manager of Fair Isaac, the company that issues FICO scores, settling your credit cards will hurt your credit score. However, just how much your score will be hurt varies, depending on your credit report's condition prior to the settlement.
Credit card debt can bring down your credit score and cost you much more in interest and fees than the amount you originally charged. Some credit card companies are open to settling delinquent debt and credit card debt that has been sent to collections. Some companies may even negotiate with you before your credit card account is delinquent in order to avoid the cost of collection.
Credit card debt can be inhibiting to consumers, especially when the credit-card holder cannot afford the minimum required payment. When a debtor cannot pay the bill, the creditor can turn the account over to collections. This may present the consumer with options.
Credit card debt can cause serious financial strain. Consumers and businesses trying to pay off credit card balances have to deal with finance charges. This can make settling credit card debts more difficult. There are ways, however, in which cardholders can conclude their credit card debts. This involves a settlement process that includes preparing a budget, cutting expenses and contacting credit card issuers.
If you are swimming in debt, you may be forced to make hard choices. Cutting off the cable, reducing your cell phone services and turning off the air conditioner are ways to reduce household costs. However, the monthly payments on high credit card debt can still make your budget untenable. If this is the case, you can negotiate a settlement with your credit card company. Settling a credit card debt for less than the amount you owe will affect your credit score negatively, but so will continued late payments.
According to moneycentral.msn.com, 43 percent of Americans spend more money than they earn annually. The website also states that the debt problems in America are increasing, with the amount of bankruptcies doubling over the past decade. This situation has forced many into debt settlement options. Credit card companies often accept settlement options for less than the full amount if the offer is reasonable.
Job loss, health problems and other issues can contribute to out of control credit card balances. Consumers struggling to pay off these debts may be wondering about options. Credit card settlements allow consumers to make a single payment to settle the debt obligation. This payment is usually much lower than the original balance (pennies on the dollar). Creating a plan for negotiating credit card obligations can assist in getting debt settled.
Unpaid debt can have a serious effect on your credit score. This is especially true if the account has been turned over to collections. Collection activity on your credit history can make securing new credit difficult. Consumers with unpaid debt face higher interest rates, difficulty securing housing and challenges landing a job (if the employer checks credit). Setting old credit card debt can help you clean up these problems.
According to CardWeb.com, the average American household that has more than one credit card carries $8,000 in debt. In 1990, the average figure was $3,000. Moreover, according to the same source, a full 43 percent of American households actually spend more money each year than they earn. A remedy to reduce or eliminate household debt is to settle with your creditors. An individual can settle their own debt without hiring an attorney or enlisting in a debt settlement program. Typically, creditors will ask to be paid in one lump sum in order to settle and if you don't have the…
Debt settlement is often the last resort before bankruptcy. New home buyers are often asked to resolve open credit lines or delinquent reports on their credit files before a lender will approve them for a loan. To get these issues resolved quickly, some homeowners opt to settle with the credit card company by paying a fraction of the percentage owed. However, the effects of settling credit card debt can linger for a long time.
Old balances on your credit reports are probably accounts that are no longer active. Chances are you stopped paying on the accounts at some point and they were closed by the original creditor, who then sold them to a debt collector. The accounts are now considered to be collection accounts and will cause a drag on your credit scores. In some instances the dormant account is not sold to a debt collector but is kept in-house with the original creditor's collection department.
When an individual dies, his grieving family members often must deal with the debts he left behind. An unsecured credit card debt isn't bound to any property that the credit card company can seize for nonpayment of the debt. The creditor's only option to collect is to contact the deceased individual's family about the debt. In most cases, as long as the deceased did not hold a joint credit card account with someone else, no one is legally liable for the debt.
Since bankruptcy stays on your credit report for as long as 10 years and creates a host of other financial problems, avoid bankruptcy if at all possible. If you cannot keep up with your debt payments, there are some alternatives to bankruptcy that may make sense for you. While each strategy may have pluses and minuses, all may be able to help you avoid filing for bankruptcy.
When facing significant credit card debt, you need not jump at the first unsolicited offer that comes your way from a debt settlement company. You can avoid paying fees to such a company and the inevitable drop in your credit score that such an arrangement will bring and reduce or even eliminate your debts all by yourself. It is all a matter of approaching the matter with a strategic game plan.
If you're feeling overwhelmed by your monthly debt payments or you feel as if your debt reduction efforts are going nowhere, debt settlement may be an appropriate alternative. While you can choose to hire a debt settlement company, you can also settle debts on your own if you understand the process and the consequences of default.
Regardless if a creditor files or claims to file a lawsuit, you can negotiate to reduce and settle most debts. You can work with creditors on your own to establish a feasible solution. For and nonprofit debt settlement, companies exist that negotiate with creditors--secured, including like real estate, or unsecured, including credit card debt. Be wary when working with a debt settlement company because many charge high rates or fees to perform work that you can handle independently.
Contracts that you sign with credit card companies and collection agencies are considered binding agreements under common law. The contracts that you initially signed when taking on debts are fully renegotiable at any time. You may even renegotiate your debts if a judgment has been obtained against you in civil court. Debts are contracts that fall under the category of common law, although they are subject to some regulations from the Federal Trade Commission (FTC).
If you find yourself facing a mountain of credit card debt, there is a way to eliminate your debt without declaring bankruptcy. If you've fallen behind in your payments and are unable to consolidate your debts, then you might want to consider debt settlement to erase your debt once and for all. Debt settlement allows you to fulfill your obligations to your creditors while paying less than what you actually owe.
It's easy to get in over your head with credit card debt, even with the best of intentions. When your debt becomes unmanageable, it's important to look for options that will help you eliminate your debt while salvaging your credit score in the process. If you have credit card debt with Chase, you likely want to know the best way to work with them to settle your debt.
Many companies tout their ability to repair your credit or settle your debt for pennies on the dollar. However, these companies often charge exorbitant fees and fail to deliver their promises. Only one person cares enough to repair your credit and settle your debts: you. This is a lengthy process, but can lead to the successful removal of negative items on your credit report and an increased credit score.
Settling your credit card debt for 50 percent of your total balance is possible, but the degree of difficulty will vary depending on the individual situation. For example, someone who appears to be in good financial condition will have a hard time convincing the credit card company to settle the debt for 50 percent. However, if they feel they may lose the entire debt to a bankruptcy or charge off, the company may be willing to work with you.
After a spouse dies, one of the more difficult aspects of squaring things away is settling his credit card debt. As a rule, debts are paid from the decedent's estate, which is handled by an executor (if there is a will) or a court-appointed administrator (if your spouse died intestate). If you're the designated party responsible for handling your spouse's estate, this means contacting his creditors to inform them of his demise, as well as paying the debt from the existing estate. However, there are also circumstances that may make you personally liable for your spouse's credit card debt; these…
With our current economy in a recession, more people need to hone their debt management skills. Among the alternatives, which range from filing bankruptcy to simply paying off your debt until you reach the zero balance we all yearn for, is the option to settle your credit cards for less than you officially owe. It can be a frustrating and humbling experience, but I have personally gone through this. I chose the option of a debt consolidation company, Superior Debt (see reference 1) and was able to pay off my debt of more than $15K in two years.
If you find yourself underneath a pile of credit card debt and struggling to make your monthly payments, consider asking for a settlement to satisfy your balance. A settlement is a deal you work out with the credit card company to settle your account for less than what you owe. You can request a settlement on your own, without an attorney. The Federal Trade Commission recommends you try to negotiate your own balances and to be wary of credit repair or debt management services that may charge you fees to do what you can do for yourself.
Debt settlement is a process by which you can renegotiate the debt you owe to a creditor and pay the creditor less than the current balance on the account. Debt settlement can give you peace of mind and prevent your account from being charged off or turned over to a collection agency. Anyone can negotiate a debt settlement plan. You do not have to hire someone to do it for you. While some creditors are more than willing to work with consumers to settle debt, they are not required to. Do not expect your credit card company to welcome your…
A bad credit card debt can be reported on your record for up to seven years. But there may be some life changes that come up inside of those seven years that would require you to settle the debt with your credit card company immediately. Even though you may be in a desperate situation, when you do decide to settle your credit card debts, don't let the creditor know exactly why you have had a change of heart. That could give you a disadvantage in negotiations.
Personal credit card settlement is becoming a popular means of erasing financial debt. The key is to know when and how to use debt settlement to eliminate credit card problems and restore finances.
Integrity Debt Options is a private debt settlement and consolidation services company. The company offers consumers several products and services designed to help consumers improve their credit score, reduce their debt load and avoid bankruptcy. The company also offers investment opportunities for those looking to earn a return on an investment in credit debt.
Have you ever been sued by a credit card company and wondered how to settle a credit card lawsuit? Due to the current economic recession and loss of jobs, many consumers find themselves having to choose between buying groceries and paying credit card bills. As a result, individuals who once had perfect credit now find themselves with a growing pile of unpaid credit card debt. Finding yourself in such situation can be intimidating, overwhelming and stressful. However, you can settle a credit card lawsuit without going to court. Here's how.
With the recession and rising unemployment, it comes as no surprise that many people are in trouble with their finances. If you are having trouble making your credit card payments each month, you may want to consider settling your debt with the credit card companies. It is really not hard to negotiate debt settlement with your credit card companies, but it can be nerve wracking. Here are some tips to get you started.
Unmanageable credit card debt can be extremely stressful, leading some borrowers to avoid the situation, ignoring creditors' calls while falling further and further behind on payments. But even if the credit card company ultimately writes off the debt, it doesn't mean you are free of the obligation to pay. Instead, an individual still remains responsible for the full amount of the loan, and her credit is ruined at the same time -- potentially making future debt more expensive. By attempting to work with the creditor to settle the debt, individuals may be able to reduce the overall amount owed or…
Settling a credit card debt means getting a creditor or collection agency to accept less than full payment on the debt. For instance, if you owe $1,000, you might convince the creditor to accept $500 as payment in full. It takes time, patience, nerves of steel and a thick skin to settle a credit card debt, but it can save you thousands of dollars you can't afford.
