What is Debt Consolidation
Credit Card Debt Consolidation
Medical Debt Consolidation
7 Tips About Debt Consolidation
Common Debt Consolidation Mistakes
Debt Consolidation
Risks of Debt Consolidation, Types of Debt Consolidation Loans, Pros & Cons
Balance Transfer or Debt Consolidation?
Debt/Credit Calculators
Discussion Forum
Credit Counseling and You
Non-Profit Credit Counseling
Consequences of Credit Card Default
Effects of Credit Card Default
9 Common Credit Card Mistakes
Eliminate Credit Card Debt in 90 Days
Credit Card Debt
10 Expenses You Can Not Afford If You Have Credit Card Debt
Truth About Credit Card Companies
Should I Tear Apart My $300 Limit Credit Card - The Worst Credit Card Ever?
Disputing Credit Card Debt
401k vs Credit Cards: Where to invest?
Debt Settlement Letters
Sample Letters
Write a Powerful Debt Validation Letter
Reputable Debt Settlement Agreement
Debt Settlement vs. Debt Consolidation
Dangers of Debt Settlement
Avoid Debt Settlement Pitfalls
Debt Relief Tools/Debt Management Programs
Debt Settlement FAQs
Is Debt Settlement Money Taxable?
Reduce Medical Debt
Free Bill Consolidation: Does it exist?
Budgeting to Stay Debt Free
10 Debt Reduction Mistakes
Should I Pay Off my Debt or Save Up for a Down Payment on a House?
Bill Consolidation
Three Secrets to Lowering Your Debt
Tips To Lower Your Bills
Government Debt Help
Debt Help During Recession
Debt Relief During a Recession
What Debt Relief Means
Pay Off $50,000 Debt
Worried About Bills?
Money & Debt Videos
Report Illegal Collection Activity
Managing Medical Bills
Medical Debt & Bankruptcy
The Facts on Debt
Debt Quotations
Drowning In Debt?
Who to pay first?
Managing Debt FAQs
Medical Debt Solution
12 Hot Tips for Eliminating Debt
7 Debt Elimination Mistakes
2 Ways to Achieve Debt Elimination - Debt Snowball Elimination Method
Payday Loan Consolidation
Payday Loan Debt Consolidation
Payday Loan Relief
Default on a Payday Loan?
Payday Loans | Consumer Information
Problems with Payday Loan Stores
Bad Credit Loan Relief
How Payday Loans Work
What is Loan Consolidation?
How to get a $50,000 loan
Get an $80,000 Loan
$100,000 Loan for Debt Repayment
Veteran's Home Loan Refinance Options
Government Loans vs. Private Loans
Finding a Government Loan
Student Loan Consequences
Reputable Debt Consolidation Companies
Debt Consolidation Company Reviews
Reputable Debt Management Companies
List of Debt Companies in USA
Debt Companies By City
How Debt Affects Your Credit
What is shown on my credit report?
Improve Your Credit Score
Correct Credit Report Errors
Can Debt Settlement Ruin Credit?
Can Debt Negotiation Ruin Your Credit?
401k Limits
Safe CD Rates
Financial Planning
Banks versus Credit Unions
AMEX Horror Stories
IRS Tips For Audit
Choosing a Tax Preparer
American's not planning for long term care
Understanding Usury Laws
Unemployed During A Recession
FREE Government Grants
Where does money really come from?
About Us
Contact Us
6 Payday Loan Debts Owe
Borrow a Loan to Pay Off Payday Loan?
My husband was out of his job and Payday Loans were rolling over

Debt Consolidation Facts

1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.

Debt Management FAQs

1)  How Can I Get a Copy of my Credit Report?

Getting your credit report is the first step you should take when assessing your financial situation.  Within this report you will find all your current and past financial accounts.  Look for errors or accounts you have no knowledge of while reviewing your report, these can be more common than you may think.  You can get a copy of your Credit Report from any of these 3 Credit Reporting Sites, simply by writing to them, calling them, or visiting their website. 

You qualify by law for a free credit report once annually from all three major credit reporting bureaus, but you must contact them and request it.  Additionally if you have had a loan or line of credit denied based on your credit report, you are then again entitled to a free report. 

Video: Suze Orman - What is a FICO Score?

To contact the credit reporting agencies:

P.O. Box 740256
Atlanta, GA 30374
Web site: www.equifax.com

PO Box 2002
Allen, TX 75013
(888) 397-3742
Web site: www.experian.com 

TransUnion LLC
P.O. Box 2000
Chester, PA 19022
(800) 888-4213
Web site: www.transunion.com

2)  Can Debt Collection Agencies Check my Credit Report?

Yes, debt collection agencies can legally check your credit report. When you sign on a loan application such as a mortgage loan, credit card debt, auto loan or even a payday loan, you permit the lender to check your credit report at anytime they want, to their discretion. Keep in mind that these peaks into your credit report can be damaging.  Excess checks of your credit report indicate to prospective lenders that you are applying for multiple sources of credit, and that you are most likely being denied by some other lenders.  Additionally these inquiries into your credit report lower your FICO score.  There is an allowance for multiple inquiries into your credit report while you shop for a mortgage.  In this unique situation, your inquires will appear but will not be factored against you.

debt management faqs

3)  Is a Charged Off Debt Still Collectible by Creditors?

Yes a charged off debt is still collectible by creditors, even years after it has been written off.  The length of time charged off debt is still owed by the debtor ranges from 3-6 years, and differs by state.  Also be aware that you may also owe accrued interest and/or penalties on charged off debt.  Finally, charged off debt will remain on your credit report for 7 years no matter which state you reside in.

4)  When Someone Dies, Who is Responsible for Paying His Debts?

If someone dies and leaves behind a debt load, the executor or administrator of his estate or wealth is responsible for paying off and handling the debts. If the dying person did not write a will, then the spouse automatically assumes responsibility of both his estate and all his debts.  If there is no spouse and no estate to make payment, the debt is written off by the lender.  Dependants are never responsible for the debt of their parents, although many collectors may imply that they are in an effort to collect their money.

debt management

5) Know Your Rights.  Read the government’s Fair Debt Collection Practices Act (FDCPA) here

Don’t let credit companies take advantage nor harass you.  By learning what creditors can and cannot legally do with you and your debt, you will be better armed to face your debt problems and get them resolved.  The FDCPA regulated how and when creditors may contact you.  For example if a collector is calling you at your workplace, this is in clear violation of the law.  Learn your rights and don’t let the collection agencies or your creditors abuse them.

Video: Know Your Rights Under the Fair Debt Collection Practices Act

6) Do I Need a Debt Counseling Agency? 

The simple truth is no, you do not.  All services that are offered by debt collection agencies can be completed yourself.  Debt solutions such as negotiation, settlement, and debt management programs, can all be done on your own.  Educate yourself about how to go about making these financial moves alone, and try it yourself.  If your time is too valuable to waste handling these tasks yourself or you feel intimidated by the whole process, get help.  There are plenty of professionals out there who know the industry inside and out and can be of assistance to you.  Make sure you are dealing with a reputable company and never pay a fee just for an evaluation.


Post a Comment
Email address:

Powered by thesitewizard.com