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Using
Help To Get Out of Debt
Alternative Ways To Avoid A Payday Loan
Reducing Credit Card Debt
Do It
Yourself Debt Relief
Benefits & Drawbacks to Bankruptcy
More
Ways of Dealing With Debt
How
To Get a Low Interest Credit Card
Debt
Consolidation Tips
Living On What's Left
Money
Priorities when in Debt
Eight Common Mistakes That
Produce More Debt
The
ULTIMATE GUIDE to cleaning up your credit report
All
about Government Grants
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Ways of Dealing With Debt
Bills, creditors,
debt collectors. Are you yearning for the days
when all you had to worry about was the money in
your piggy bank? If so, you are far from alone.
Whether its illness, loss of a job, or simple
overspending, it happens to the best of us. But that
doesn’t mean your financial situation needs to go
from bad to worse.
Steps You Can Take To Regain Control When Finances
Get Out Of Hand...
Developing A Budget: Start by doing a realistic
assessment of how much money comes in and how much
your spend. List income sources, “fixed” expenses
(mortgage or rent, car, insurance) and expenses that
vary (entertainment, clothing, recreation). Don’t
leave anything out, no matter how trivial it seems.
Obviously, the necessities are your first priority.
Then you can prioritize the rest. The bottom line
Is, that unless there’s money to cover, you’re going
to have to cut back on spending.
Contacting Your Creditors: Many creditors will work
with you if you let them know you are having trouble
making ends meet. Tell them why it’s difficult for
you and try to work out a modified payment plan that
reduces your payments to a more manageable level.
Don’t let them give up on you – get to them before
they resort to collection agency action.
Dealing With Debt Collectors: Nobody wants to deal
with the bill collector – least of all you! But,
should it happen, be sure you know the rules. The
Fair Debt Collection Practices Act is the law that
dictates how and when a debt collector may contact
you ...
A debt collector may not call you before 8a.m. or
after 9p.m ... or at work if the collector knows
that your employer doesn’t approve of the calls.
Collectors may not harass you, make false
statements, or use unfair practices when they try to
collect a debt.
Debt collectors must honor a written request from
you to stop further contact.
Bankruptcy: Personal bankruptcy is generally
considered the debt management tool of last resort
because the results are long-lasting and
far-reaching. A bankruptcy stays on your credit
report for 10 years, making it difficult to acquire
credit, buy a home, get life insurance or sometimes
even get a job. Learn more about bankruptcy
On the other hand, bankruptcy is a legal procedure
that offers a fresh start for people who can’t
satisfy their debts. Individuals who follow the
bankruptcy rules receive a discharge or court order
that says they do not have to repay certain debts.
There are two primary types of personal bankruptcy:
Chapter 13 bankruptcy allows you, if you have a
regular income and unlimited debt, to keep property,
such as a mortgaged house or car, that you otherwise
might lose. In chapter 13, the court approves a
repayment plan that allows you to pay off a default
during a period of three to five years, rather than
surrender any property.
Chapter 7 bankruptcy known as straight bankruptcy,
involves liquidating all assets that are not exempt.
Exempt property may include cars, work-related tools
and basic household furnishings. Some property may
be sold by a court-appointed official (trustee) or
turned over to creditors.
NOTE: You can receive a discharge of your debts
under Chapter 7 bankruptcy only once every six
years.
Both types of bankruptcy may get rid of unsecured
debts and stop foreclosures, repossessions,
garnishments utility shut-offs and debt collection
activities. Both also provide exemptions that allow
you to keep certain assets, although exemption
amounts vary.
Personal bankruptcy usually does not erase child
support, alimony, fines, taxes and some student
obligations. Also, unless you have an acceptable
plan to catch up on your debt under Chapter 13,
bankruptcy does not allow you to keep property when
your creditor has an unpaid mortgage or lien on it.
Being burdened by debt is overwhelming and puts you
into a position of great vulnerability. And,
clearly, yielding to bankruptcy is an extreme
measure that requires a great deal of thought. In
the last few years, a record number of consumers
have been filing for bankruptcy.
About the Author
To find out more
about bankruptcy, how the most common chapters of
bankruptcy work, bankruptcy terminology, and easy
steps anyone can take to repair there credit report,
visit:
http://www.creditandyou.com/dealingwithdebt.html
it’s a free information website!
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