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Debt

Debt questions and answers

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Q: debt?????????????
i am in like over $30,000 debt. is there anyway i could make money with out really budgeting? keep in mind that i own a store, so i have to buy items for it everyweek. oh yeah. and theres a baby in my family too. and ive previously owned another store.

A: I would seek a financial professional. I met with a Primerica representative and they help me get out of debt. There is no fee to see them and they gave me a free financial needs analysis. Since they don't charge clients anything, they do ask for referrals, which I had no problem with.

Q: How was debt and debt remission used by incoming kings to consolidate their power?
How was debt and debt remission used by incoming kings to consolidate their power? Why was this practice so important? What kinds of things do politicians promise today analogous to the practices of old? What is the 21st century "debt remission?"

A: lol u have western civ at cw post???

Q: How do you settle debt with credit card companies?
I've got some debt that's currently in collections. And I got to talking to one of the debt collectors and he revealed that the average company is willing to settle for about 75% of the debt owed. But since they're basically screwing you with outragous interest that never allows you to really pay off the principal debt, are they willing to settle for even less. What are some useful tricks when dealing with these parasites?

A: Do not talk with debt collectors over the phone. No mather how smart you think you are, they are trained to get the best of you. Instead send them a letter stating that the cannot contact you by phone anymore. Any contact has to be by US mail to an address that you specify. Send letter by certified mail and keep copies for your records. Never reveal any personal information to a debt collector. They will use it against you. Don't appear desperate, just play the waiting game with them. Remember, that you have the power, you have the money, and they are the ones who want to get their hands on it. If they come up with a settlement that seems fair to you, include a "pay for delete" agreement. Don't pay them a dime before they agree to delete all derogatory information they have placed in your credit files. It is very important that you get the agreement in writing first before you pay. Good luck.

Q: How old does a debt have to be, before you are no longer legally bound to pay it?
I remember hearing once that a debt after a certain amount of years, is moot. Does it depend on the state where the debt occurred or you current state of residence? I heard that collection agencies that specialize in buying old debts, to try and collect on, HATE for people to know about these laws. Where does one look up information about this? And what exactly does one do to bring it to the attention of the collection people, that you are no longer obligated by law to pay on such an old debt?

A: You are always repsonibile, there have even been cases where peoples social security checks were partially taken until their old student loans were repaid. of course this is extreme but possible.

Q: How can I solve my debt problems and get a mortgage?
I currently live in council accomodation with my husband and 3 children. We both work but cannot get a mortgage as we both have debt problems. I desperately want to change our situation and get on the housing ladder but I need to solve my debt problems. Any tips would be great. I currently have a repayment plan but it is going so slowly at this rate I'll be paying it off in 15 years time!

A: HEre are the steps you need to take: 1) Start keeping track of where your money goes. Yes, this means starting a budget. 2) When you realize where your money is going, find ways to shave costs. Look for way sof consolidating costs if you can, like instead of having insurance on each individual debt, have one individual term policy. Or instead of dealing with seperate people for cable, internet and phone, see if you can switch somewhere and get some bundle discounts. Also, assess your spending into things that are manditory and things that are not manditory. Manditory things are the basics for living. Power, water, shelter, food (not steak and lobster every night either), clothing (within moderation). Stuff like entertainment, cable TV, internet are all things that are not manditory. All non manditory things get split into 2 catagories "life enhancing" and " non-life enhancing" Life enhancing things would be things like internet...makes things more convenient. Life enhancing things might be going out for A beer and wings with your buddies once a month. Non-life enhancing things would be things like Sataleite TV with 600 channels...even anything more than basic cable isn't nessasary, there are better uses of your time. The goal is to eliminate ALL non-life enhancing expenses. 3) once you've freed up some cashflow we get cracking on the debts. Let's say you were able to get rid of $200 of expenses that you didn't need. Take that $200 and apply it to the payment amount for your smallest debt amount (these are ussually the credit cards or things with the highest interest rate as well). for example, if your smallest debt was a $2000 credit card with monthly payments of $50. Now you will be paying $250 a month to pay it off. Once that first debt is paid off, take the entire amount you were paying (in the example, the $250) and apply it to the paymnets you are currently making on the next smallest debt. Let's say that's a loan for $5000 and the payments are $300/month. Now you are paying $550/month on that one. As you can guess by making almost double the payments, you will get this paid off far sooner. When that one is paid off, take the entire amount and apply it to the nest debt. Let's say it's another loan for $8000 with payments of $400. Now your payments will be $950 (the previous $550, plus the $400), so this will get cleared up in less than a year, rather than the 5 or 6. Continue doing this until you've cleared up ALL your debts. When they are all cleared up, you will be used to making those regular payments so you might as well put the money into a savings account, or put it towards a mortgage payment. This snowball repayment plan will rapidly increase the amount of time it takes to pay down your debts and it will also give you a sense of accomplishment becuase you are picking off debts along the way, rather than scattering payments and not seeing debts going away. This strategy is promoted my most financial professsionals like Richard Kiyosaki (author of Rich Dad, Poor Dad series), Dave Ramsey (don't waste you money on the book, you just got the jist of it), and credit consultation companies all over the world.

Q: Can a debt continue to accrue interest after it has been sent to a collection agency?
I have a debt with a bank that went into default and is now with a collection agency. I've been told that the debt is continuing to accrue interest. Is this possible?

A: Yes, a collection agency legally can add interest and fees on top of your balance owed. Although, most of this is just the collection agency trying to make extra money. When your debt gets over six months old, the original creditor gives up on collecting the debt and sells it to a collection agency for pennies on the dollar. Whatever the collection agencies collect over 10 percent of the original balance is pure profit for them. It is usually possible to offer a collection agency a lump sum payment that is much less than the original balance owed. Or better yet, if you don't pay them at all and can avoid being sued until the statute of limitations in your state has past, you're home free!

Q: What is the most debt you have eliminated in a year?
I need some motivation people! I want to commit to reducing my credit card debt this year; but, it seems a bit overwhelming. Please share stories of how you reduced your debt. Maybe that can psych me up to keep sacrificing and paying off these debts. Thanks!

A: YOU can do it. I decided that I would not go out to eat lunch every day while at work On the days that I needed to go out to eat if I could find a wendy's I could get a side salad and a bowl of chili (with plenty of FREE crackers) and a cup of water for about $2.10. I was amazed at how much I saved by just cutting out the 'canteen' while at work. If I needed a soda, I brought it from home... I paid my niece (age 7) to be the 'light police' ! I went to the store and got a few rolls of dimes...everytime she would catch someone leaving a room without turning off a light she would get paid...she loved doing it and since it was so annoying my son got way better about doing it. The biggest way that I saved money was taking a list to the store....(and eating before I went). If it was not on the store I could not buy it...that way I knew before hand nearly how much I was going to spend....and it forced me to actually MAKE dinner for the week....which of course doubled as lunch the next day..... I also sold quite a bit of stuff on ebay. If I hadn't worn in within two years....ebay was going to help me find someone who could...this was a 'double bonus' because it forced me to clean up..... Lastly, I dedicated HALF of my income tax refund to managing debt! Before I did ANYTHING else HALF went to pay down debt. SInce I had two cards, I paid one of them off completely which allowed me to double up on the other If you have small children - check out garage sales for great finds on clothing..often times you can get an entire summers worth of clothing for a 5 6 or 7 year old for less than $20.00 at a yard sale in one of the more exclusive neighborhoods in your town. I went to one last year where everything I could fit into a bag was $2.00. i stuffed it full of jeans that he could pay in while playing at the daycare or outside.... Which brings me to 'washing clothing only twice per week' This allows me to make sure that I have a full load of clothing Guess that is it for now but I did want to say that YOU CAN DO THIS and a little sacrafice now will reap you loads of happiness later

Q: How is debt sold by our government to other countries?
How does the debt system work, what happens when the other countries buy our debt, can they sell our debt to other countries, can they force us to pay our debts at any given time, please explain how the national debt system works? Thanks, I need lots of details and really want to understand so thanks again for your help!

A: It is done when the government issues bonds. For example the US government issues Treasury Bills and Notes that anyone can purchase. When countries hold Foreign Exchange reserves they don't actually hold cash. They hold bonds so that they can make interest. When a foreign country buys the bonds they bought our debt. Yes they can sell our debt (bonds) to anyone at anytime. No, they cannot force us to pay the debt at anytime, only when the bond matures (ie. a 30-year bond expires in 30 years)

Q: What is the difference between an overdraft and debt?
My husband has run almost £2000 overdraft and he says its not debt just an overdraft, nothing to worry about. I am worried sick and I still see it as debt! He had just finished paying a massive debt last year which took him over 10 years to pay off. Now he's started a small one without telling me. I made him promise to tell me if he had any problems with money which he failed to do so. I helped pay off a few of his urgent debts in the past. I can't afford £2000 debt right now as things are different now we have young children and I'm unemployed.

A: Are you confusing debt and loan. An overdraft is definitely a debt no doubt about that. It isn't a loan. The difference between an overdraft and a loan is that a loan you pay back at an agreed monthly rate over an agreed period with an agreed rate of interest on the original borrowing. An overdraft is where your husband is dipping into the banks money and paying it back as and when he can. An overdraft is a much more expensive way to borrow money than a loan as the interest rate will usually be higher but the advantage is that you could pay it back as quickly as you wanted to. It doesn't sound to me like your husband is going to be able to pay this money back any time soon so he would be well advised to speak to the bank about converting it to a loan. Do not be fooled by what you husband is telling you (and himself no doubt) a 2000k overdraft is most definitely something to worry about and an issue that must be addressed immediately. I think you husband has a bigger problem than this overdraft though. He seems to be a spendaholic and is obviously spending money without consulting you. You need to put a stop to it now if you don't want to run into sever financial problems in the future. When you are feeling calm and when the two of you have time to discuss the situation without distractions you need to sit him down and explain to him that a 2000k is not only a debt but it's one of the most expensive ways to borrow money that there is apart from credit cards. Sorry to say it but there is a good chance he has some of those you don't know about as well. You need to convince him that he does have a problem that is affecting the whole family and it must be resolved. Don't be tempted by these ads of the TV for debt consolidation loans. If you want debt advice speak to your local Citizen's advice bureau, they may have debt counsellors there who can help you for nothing. good luck

Q: How do you know which debt settlement or debt consolidation program to choose, when theirs 1000's out there?
How do you know which program is good and which one is right for you. I heard their is a way to check there beruo report or something, not sure what its called. How can you see the results and reputation of the debt settlement program or debt consolidation program.

A: Most of the debt repair/consolation/settlement companies want their fees up front and leave you credit trashed. Check nfcc.org for listings legit non-profit credit counseling services. They can help you set up a budget and work out clearing up your debt. You can tackle your debt yourself by putting every extra penny on the highest interest rate debt, while making minimum payments on the rest. When the highest is paid, move to the next, till they are all paid off. It will take 2 or 3 years but if you work at it, you'll be out of debt with a good payment history.

Q: External Debt: What is the composition of America's external debt and to whom is it owed?
I know the US external debt is around 12 trillion, but what is the composition of the said debt? Treasury securities? What? And second, does anyone have figures for who owns this outstanding debt? I have heard for example that China owns anything from 400 Billion to over 1 trillion. Does anyone have definite figures of these?

A: The public debt (just treasury securities) is about $9 trillion. of this, only $4 trillion is held by non-US governmental entities. of the $4 trillion, about $2 trillion is held by foreign governments and foreign individuals. http://www.fms.treas.gov/bulletin/b2007-3ofs.doc This figure does not include a number of unfunded commitments such as social security.

Q: How can I consolidate my debt and does anyone here knows a good debt management program?
I signed up for Care one debt consolidation and I failed to make a payment because I am overdrawn on my checking account. I feel that this company shouldn't have called me at all about the drp program because I have no assets.So, how can I get rid of debt and does anyone here know another debt mangement program company they use?

A: Be very wary of debt consolidation companies. They reduce your monthly payments by increasing the debt repayment period (which makes your debt MUCH MORE expensive in the long run). For this "service" they then charge a "management handling fee" which of course you can't afford so they add to your debt (and charge interest on it) meaning you are going to be in debt for the rest of your life!

Q: How does the debt collection process work on an unsecured loan?
I am 105K in debt(mortgage, student loan, car and the unsecured loan) and lost my former job due to lack of work. I got a new job but I am out 15K/yr. Through much juggling, I am paying off everyone except the unsecured loan on which I am paying 30/month(they want 260/mth) and they are unhappy I am paying them so little and threatening to sue me. I am trying to sell the house to pay off the mortgage and the personal loan and this is still at the original lender level. I am hoping I will get to work with a collections agency first since I can offer them the 30 I am now paying the creditor and when I sell the house I can pay the bill in full and have the credit bureau remove the blotch from my credit by showing evidence of payment. Do they go to collections or sue first?If they do sue,will they garnish my wages or freeze my checking account(no savings) or both? How does the debt collection process work on an unsecured loan? Tried debt consolidation but my house is not worth enough to do it and having other debt attached to it would reduce my chances of selling the house and paying off the mortgage and the personal loan. I am really looking for info on how the debt collection process works,not how to get out of debt. I have that part figured out unless I get sued. Thanks Thanks Taja but I am asking what the collection process is. I owe 105K out of which only 9K are unsecured debt. I am paying everybody except for the unsecured debt (to preserve my assets) and paying this unsecured creditor 30 a month hoping to sell my house to pay of the mortgage and the unsecured loan which will get rid of 64K off my debt and put approx 4 K in my pocket to move to an area with a better pay labor market. I am trying to find out (by learning how the collection process works) if I am going to have time to get this done before I have to worry about their coming after my wages and/or checking bank account. In other words, if I can work with a collection agency to which I can offer payments and pay the 30 I am now paying until I can sell the house. I already tried debt consolidation and I can't get a loan for 105 K with a house that is worth 79K as the only collateral. The rest I owe is my car and student loans which must be paid or they will be worse than this creditor. BBOYBALL: My mortgage is in perfectly good standing since I pay that before I even buy food. It is the only assett I have and I want to move to an area where I can work without having to commute an hour to do so. That is why I am selling the house: to move and to pay off the mortgage and the personal loan I took out to buy a new furnace and remove asbestos. I am willing to sell for 76K.

A: The debt collection process When you default on a loan or pay less than your contractual agreement – for instance, you have to pay a set percentage of the amount owing on credit cards or a minimum payment – your account will be passed to the firm’s own internal debt collection people. They will contact you to try to recover what is owed and to check your circumstances. Most banks and financial organisations prefer – at least initially – to handle debt problems themselves. However, if the situation continues for any length of time or they are unable to come to an agreement with you, or you ignore their letters and/or phone calls, they may pass the debt on to a collection agency or try to recover their money some other way. Any debt collection agency used by your creditors must work within the same legal restraints as the original financial organisation and cannot, for instance, try to demand money under threat of physical violence. Often the letter you receive will indicate that you have to pay the full outstanding balance of the debt with a threat that if you do not, further serious action will be taken. Some people get frightened by this but it is essential you respond indicating why you cannot pay the full amount and sending a copy of your budget and repayment proposals. Provided that you maintain the proposed payments, update the information in your budget when asked by your creditors to do so and provide evidence (like bank statements and payslips) when they are requested, most creditors should be prepared to help. However, if you do not voluntarily make payments to reduce your debts or keep to your repayment arrangement, the original financial organisation or the collection agency may apply to get a County Court Judgment(s) against you. In this case you will usually be sent a claim form. This gives you an opportunity to respond – either by defending the claim if you dispute it (using the form known as an N9B) or by offering to repay the debt by instalments (using the N9A form which has to be completed with the same sort of information that is included in your budget). In most cases, provided you complete this form, your proposals are realistic and you keep up the payments, no further action will be taken. If you wish you can attend a hearing and explain your circumstances and present your personal budget but this is not normally necessary as long as you have returned the relevant paperwork within the time allowed and your budget is a realistic one. Failure to keep up the payments agreed can lead to further action. If you are employed and fail to make payments to a CCJ, an attachment of earnings order may be made against you. That means the instalments due will be taken directly from your salary by your employer before the balance is passed on to you. If you are under a judgment(s) from the Court and fail to keep up payments, the creditor also has the right to instruct bailiffs to recover the amount due. This is the likely course of action if you are not working or are self employed and fail to keep up the agreed payments. Bailiffs might also be sent if you fail to reply to any letter from the Court that seeks further clarification of your position

Q: Can Asset Acceptance LLC resubmit a debt to the credit agencies after statute of limitations?
Asset Acceptance is holding two small utility debts of mine. The statute of limitations has run out but they resubmitted the debt to the credit agencies as if they are new. Can they continue to resubmit a debt after the statute of limitations has run out? How do I fix this?

A: Asset Acceptance Corp has earned the distinction of one of "AMERICA'S WORST COLLECTION AGENCY'S". They lie, steal, cheat, misrepresent, file bogus claims, create phony documents and commit perjury in the court system JUST to increase their bottom line. You should contact them and let them know that you are aware of the illegal tactics they have used and if they don't remove the item, you will seek civil action against them. Cite the following: RE-DATING OF THE DEBT IN VIOLATION OF [CITE: 15USC1681s-2] § 623. Responsibilities of furnishers of information to consumer reporting agencies a) Duty of furnishers of information to provide accurate information (1) Prohibition (A) Reporting information with actual knowledge of errors A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. (B) Reporting information after notice and confirmation of errors A person shall not furnish information relating to a consumer to any consumer reporting agency if-- (i) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and (ii) the information is, in fact, inaccurate. Here is a link to find out information about them: http://www.budhibbs.com/debtcollectorpages/asset_acceptance_corp.htm http://www.ftc.gov/bcp/menus/consumer/credit/reports.shtm Download a pdf file regarding how to dispute with CRA's LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advice.

Q: How many times can the same debt be placed on your credit report?
I have had the same "debt" put on my credit report by the original lender, a collection agency over 2 years ago and now a brand new collection agency. I questioned the original debt on my report and they removed it, and now, it has obviously been sold to another collection agency who has put it back on my file. The original debt wasn't even mine, it was my husbands so I don't even know how it is getting on my file. If it helps, I live in Ontario, Canada.

A: I guess it has your name on it, so as far as anyone else is concerned, it is yours. You will have to go through the same process as the first time to get this item removed.