Can my credit card company sue me?

Can my credit card company sue me? If you stop paying your credit card bill, your credit card company can sue you for payment. They will tack on late fees and interest as well. Your best bet is to just keep paying your bills on time and stay out of trouble.

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How do I get out of debt?

How do I get out of debt? That is a question millions of Americans are asking themselves. Getting in debt is a process, so you guessed it, getting out of debt is a process. You need to really be straight with yourself about the habits that got you in the situation that you are in. Usually it will be pain that will motivate you to get yourself out of debt and that is ok. What it will take is creating a new habit. The first rule to get out of debt, don't spend more than you make. Second rule to get out of debt is to live by your needs and not your wants. You wont die without not having a new 52 inch tv set. You can just suffer with that old 32 inch flat tube set. You wont die without a cell phone or cable tv either. Ya, getting out of debt will cause you to confront places in your life that you haven't looked in a while. What would you rather have peace of mind or worry. For me the choice is simple, I'll take peace of mind any day. Living in fear of your creditors is not living. Do what you need to do and get started.

How do you eat an elephant? One bite at a time.


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What is bad debt?

What is bad debt? Bad debt to a company that is lending money, is money that is owed and not being collected. People who borrow money for various reason just stop paying. They may have lost a job, divorce or even a death in the family will halt a persons ability to repay a debt. A company when declaring it a bad debt, no longer has to count it as a receivable and they are able to write off the loss on their taxes.

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What is a Garnishment?

When your wages are garnished, a percentage of what you make is automatically routed towards paying off a debt. You wages can be garnished if you fail to repay a debt, taxes, court settlement, child support or any other debt that a judgment has been granted against you by a court of law. Only a few states restrict wage garnishment, they are Texas, South Carolina, North Carolina and Pennsylvania. This would be for state and federal debts only. Usually the limit of the garnishment is 25% of what a persons paycheck would be. It is not legal to hide assets to avoid the garnishment. You may be prosecuted for fraud if you try.

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What is a Charge Off?

A charge off is a debt that a company has written off as noncollectable. Once they have written the debt off they can take off the loss on their tax returns. That is not where it ends for the person who took out the loan however. For the borrower they will have a charge off or a collection account on their credit report. This is not a good thing for your credit score. One charge off can drop your credit score over 100 points. The only want to take care of it is to pay it off. You will need to speak with the company that is handling the collection of the old debt. That's right, the old company may have written it off, but that doesn't mean that you are out of the woods on paying it back. A collection agency may buy the old debt for pennies on the dollar and try to collect on it. They have a legal claim to collect from you and will not remove the bad mark on your credit until you pay up.

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An Overview of Student Loan Debt Consolidation

Student Loan Debt Consolidation is one method for reducing your monthly debt which could help you qualify for a mortgage, or a refinance. Debt consolidation will also reduce the number of monthly payments you have to remember to pay each month.

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The Fair Debt Collection Practices Act, What Are My Rights If I Owe Money?

Let's face it, most consumers owe money and at some point, we miss a payment, get ourselves into a jam because we disagree with something we were billed for, or something catastrophic happens and our bills suffer. Even though you either legitimately or illegitimately owe money, you have rights. Knowing these rights could save you a lot of hassle, time and money.

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Tips for Consumer Credit Counseling - Should I Do It? Finding the Right Company

The benefits of a Consumer Credit Counseling program can be great. However, before you start a program take a look at all your options for getting out of debt, and do you homework. There are many companies out there to stay away from. This article covers things to look for in choosing a company.

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Debt Negotiation aka Debt Settlement, What It Is Not, Is It Right For Me?

There is much written about debt settlement or debt consolidation, both pro and con. Critics of debt negotiation have a valid point with respect to bad debt settlement companies. This article spells out what debt consolidation is not.

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How do debt negotiation companies make money?

The dumb answer is debt negotiation companies make money by settling debts. A good firm will make a percentage of what they save you rather than a flat fee. The savings rate percentage can be anywhere from 15-25 percent of what they save you. I like that they have an incentive like this. The more they save you, the more money they make. This way you know that they will do their best to negotiate a good deal for you. Most firms charge you an up front fee which can be paid over a period of a few months. Most companies realize that you are having a hardship, this is the business that they are in. Typically you can be in a program up to 36 months that will have you totally out of debt.

Additional Articles on Debt Negotiation

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How much will my credit score go up if I pay my collection accounts off?

If you pay your collection accounts off your credit score can go up as much as 200 points. It can take a few months to report properly in your credit report. Typically once all the collection accounts are paid off your credit score should go back to normal in about six months. You can negotiate paying off your collections as well. You don't have to pay back dollar for dollar what you owe. You might want to start our negotiating your debt at 25 cents on the dollar and see where you end up. You may have to play with them for awhile however. They usually don't just roll over on the first offer. You may have to back an forth a few times before you will be able to reach a settlement.

If you have any questions about debt negotiation please let me know.

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