Debt Help Services

Posts Tagged ‘Credit Card Debt’

Question: Will I still be able to get a mortgage loan?

In July I was pre-approved for an FHA loan of 130K in Minnesota (which is more house than I need, I was looking mostly at homes around 115K). I decided to wait until this spring to pay off some credit card debt before buying. Now I’m worried that I won’t be able to get a loan. I’m in Moorhead Minnesota and the housing market hasn’t tanked here, my credit is not perfect but is above average. So how bad is it out there now and how bad will it get before April when my current lease is up.

Answer: If you have steady employment and you keep your credit up, you will still be able to qualify. Nobody knows what new things will happen between now and April, but that shouldn’t change. The one thing that seems to have changed with FHA loans is that they are requiring a little bit more down – I think 3.5% instead of 3% down payment. I don’t think that will jump too much more, if any, but you may want to start saving as much as you can now so that when April comes, you can put down a little more if necessary.

They are also changing laws regarding down payment assistance, so you may need to look a bit harder for those types of programs when the time comes, if you do need some assistance with closing costs and down payments.

Why a Smart Consumer Is a Bad Credit Card Customer

And how you can be punished for responsible behavior: In some cases, credit card issuers have rejected applicants who have credit scores that are too good (sometimes over 800). Why? Because these consumers typically pay bills in full and on time, they’re unlikely to make the credit card companies much money. In light of new [...]

Debt Consolidation can lower your monthly credit card debt payments

Question: Has anyone ever been taken to court for credit card debt?

If so, for what amount and what was the outcome of you going to court? Did the judge rule in your favour or the creditor? Thanks!

Answer: I personaly dont but know of many cases.

Usually if you dont appear they rule on creditor favor, if you appear and show you cant pay they try to help you out.

New credit card rules and what they mean to you

Did you know that there are new rules governing the fees and penalties that credit card companies can charge you? The provisions in the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 should save consumers at least $10 billion a year, according to the Pew Foundation.

Your Money: Guide to New Credit Card Rules – NYTimes.com

Question: What is the purpose of a debt validation letter?

Can someone lead me in the right direction? I’m very confused on what my first step is. I have all 3 of my credit reports. I have medical and credit card debt. The medical is with collection agenicies and the credit cards are with them still(no collection agency as of yet). I keep reading about debt validation. Why? And with all of them or just collection agencies?

Answer: The sources listed in the previous answers are my favorite links….go there and read up!

Note one thing, however. Debt validation is required under the Fair Debt Collections Act, but only governs collection agencies, attorneys, and other 3rd party collectors. It does not cover the original creditor, unless your state has implemented their own version of the FDCA and included them (not many do).

So attempting to validate debts from credit card companies themselves may not result in anything.

One MAJOR reason for validating is because collection agencies tend to tack on lots of illegal fees and interest. You want to make sure the amount in contention is accurate. And the only way to do that is to get proof and documentation. They MUST supply you with copies of the signed contract, bills, receipts, last statements, and everything used to calculate exactly what they claim you owe.

Sending you a single statement saying you owe them $xx.xx money is NOT validation.

4 Questions That Need to Be Answered Next Week

Earnings season is all about insight and thesis validation.

Dealing With Debt Collectors – Debt Validation

Question: How can I take a credit card default off my credit history?

I am trying to refi, but an AMEX account that I defaulted on over 15 years ago shows on my credit report. It is effecting my debt-to-income ratio and I want to know how to get it off. Do I have any grounds to have AMEX take it off? I want to know the law before I call AMEX, please help. Thank you.

Answer: This should be off your report by now. 7 years is the max. amount of time it can stay.

Per the Fair Credit Reporting Act you have the right to request written validation of negative entries on your credit files. Per this law they must validate the item(s) within 30 days or remove them from your credit file. Mail a letter via certified mail with return receipt to all three credit bureaus (Equifax, TransUnion & Experian). Include a photocopy of your driver’s license and social security card…If you don’t include these, they may write back requesting them, which would slow the process down by several weeks. Write a separate letter for each credit bureau and include the phrase:

Per the Fair Credit Reporting Act, I am requesting validation that this debt from AMEX is being reporting within the 7-year time frame as allowed under the Fair Credit Reporting Act

Credit card defaults, late payments dip in June

Consumers are getting a handle on their credit card payments, data on defaults and late payments shows. Five of the top six U.S. credit card issuers on Thursday reported declines in June charge-off rates, the unpaid balances they gave up on collecting.

Debtors Beware:How You Can Get Tricked Into Credit Card Default

Question: Have any one out there ever had a credit card you wanted to pay off,but you would like to settle it for less?

for example c-card debt is 3,500 to pay off but u think i got a chance to pay it off for 3,000. or less if so how will i go about asking to lower the pay off. Please any suggestions

Answer: You can ask to adjust the interest with a freeze to your account. Typically what they’ll do is freeze your credit card, no more interest charges at all. What you owe is what you owe. Then when you pay that down (making payments on time each month as agreed) they’ll lift the freeze and you regain use of your card… They prefer to do that than have to chase you down for the next 7 years.. Odds are in your favor.

Been there done that.. good luck!

Corridor G Re-Opens After Motorcycle Accident

The crash happened near Lucado Road around 4:45 p.m. Thursday.

Credit & Debt Consolidation : Credit Card Debt & Low Interest