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Loosening The Grip Of Student Loan Debt
Funding education can be complicated and difficult to manage. Learn how to control your education debt with these tips and guides.
At this time of year many are seeking ways to cut costs on student loans. You may have a number of programs your...
The best strategy to erase credit card debt
The best strategy to erase credit card debt
Credit card debt is a growing sickness in the United States and Europe. It is very important to eliminate debt and take control of your financial health.
In the below section, I have listed the best...
The Power of a Home Equity Loan to Pay Down Debt
Households across the country are finding themselves in a similar situation. They lack the financial funds to make the necessary changes to their home and need to find a way to fund upgrades and eliminate debt. A popular way of financing these...
Turning Bad Debts into Good Debts through Investing Fundamentals
If you've ever earned enough money to put some aside, like most people you've probably invested it with an eye toward security – since, perhaps, you can't imagine yourself ever getting rich. "Most people dream of becoming rich, but it isn't their...
What You Must Know Before Attepting Debt Negotiation
Debt negotiation should be viewed as a last-resort measure
before filing bankruptcy. A lender has little motivation to
accept a pay off for less than the full amount unless the debtor
is already months behind on bills. Debt negotiation,...
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Credit Card Debt Settlement
Have you started receiving credit card debt settlement notices
in the mail? Have you been receiving collection calls? If this
is the case, you have probably been in debt and been dealing
with financial difficulties for quite some time.
Creditors are sometimes willing to settle the account for a
lesser amount if the credit card account is seriously delinquent
or has been written off. This creditor will usually accept the
settled amount in one payment and the payment has to be made
within a short period of time.
Now you may wonder why a creditor would settle for less than
what is owed. Your credit card issuer is trying to reduce their
losses and they have concerns about you paying this debt. Your
credit issuer feels that recovering some of their money is
better than not getting any of it back. Keep in mind that
accepting a settlement may affect your borrowing ability in the
future with this creditor, but it is a better option than
bankruptcy or doing nothing at all.
A creditor will not usually settle on an account that is
current. Normally, the account has to be at least 90 days
delinquent before they will talk settlement and many credit card
companies will wait longer than that. Here are a few things you
should be aware of before agreeing to a settlement.
1. Your settlement payment may not completely satisfy the debt.
There is a possibility that the uncollected portion of the debt
could be turned over to another collection agency for further
collection activity, but this is not the norm.
2. The IRS considers the amount of the debt that has not
been
satisfied as income. Any amount that exceeds $600 will be report
on a 1099, to the IRS, by your creditors. You will be required
to pay taxes on this amount.
3. Know what's on your credit report. If the debt is not on
their at all, it is not recommended that you do anything with
this debt. If it is showing as being "charged off," this is
negative note on your credit report. If you settle, it will be
noted as "settled for a lesser amount" which as also somewhat
negative, but not as bad as doing nothing about it at all.
The best thing to do is to try to deal with the original
creditor. Communicate with them in writing. If they will not
deal with you, contact the collection agency in writing. If at
all possible, try to negotiate a repayment plan on the balance.
If you decide to settle the debt, get the terms of the
settlement in writing to avoid problems on down the road. Once
you have paid the debt, ask for a "release of debt" as proof
that the company has agreed that the debt has been satisfied.
The best thing that you can do for yourself is to examine the
curcumstances that caused your debt to get to this point and to
put a plan in place that will prevent you from ending up there
again.
About the author:
Marjorie Salada is the owner of debtmanagement1.com, a website that contains
information on getting and staying out of debt. If you are
looking for information on debt consolidation, debt settlement,
debt counseling or how to manage credit card debt this site is
an excellent resource.
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| Debt relief steps, your free guide to debt help. |
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| Factsheet - Debt Relief Under the Heavily Indebted Poor Countries ... |
| The HIPC Initiative is a comprehensive approach to debt reduction for heavily indebted poor countries pursuing IMF- and World Bank-supported adjustment and ... |
| www.imf.org |
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| Special report: debt relief | Special reports | Guardian Unlimited |
| February 6: A year ago the Guardian set out to track the west's promises of action for Africa on aid, trade, health and debt relief. As G8 finance ministers ... |
| www.guardian.co.uk |
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| Economic Policy and Debt |
| May 2006, IMF And World Bank Support Cameroon’s Completion Point Under The Enhanced HIPC Initiative And The IMF Immediately Grants 100 Percent Debt Relief ... |
| www.worldbank.org |
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| Economic Policy and Debt - The Enhanced HIPC Initiative |
| The Initiative’s debt-burden thresholds were adjusted downward, which enabled a broader group of countries to qualify for larger volumes of debt relief. ... |
| www.worldbank.org |
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| Debt relief - Wikipedia, the free encyclopedia |
| Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations. ... |
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| Debt Relief - Social and Economic Policy - Global Policy Forum |
| Aid Inflows, Debt Relief Yet to Translate into Reduced Poverty (March 20, 2006) ... Fearing that the IMF could tie debt relief to economic benchmarks, ... |
| www.globalpolicy.org |
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| Debt Relief - Global Policy Forum - Social and Economic Policy |
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| www.globalpolicy.org |
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| BBC NEWS | Business | Q&A: African debt relief |
| BBC News looks at the progress of international debt reduction efforts, and the sticking points which continue to hamper the process. |
| news.bbc.co.uk |
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| Debt Relief Australia - Start Reducing Debt Today! |
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| Debt Consolidation Australia, Debt Relief & Bankruptcy Information |
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| Oxfam - Debt and Aid - Debt Relief for Nicaragua: breaking out of ... |
| Oxfam policy paper on relationship between international debt servicing and poverty. Linked to table of contents and also zipped for download. |
| www.oxfam.org.uk |
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| What debt relief means for Africa | csmonitor.com |
| This weekend's $40 billion debt cancellation deal could spark major improvements in the lives of the world's poorest people. |
| www.csmonitor.com |
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