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How to talk to creditors

The most common thing people do when a debt collector calls is ignore the phone call. No one wants to talk to someone who is trying to collect money they clearly can’t afford to pay back, and it’s an embarrassing and disheartening phone call to receive. The problem is debt collectors and debts don’t just go away when a debt is ignored. Ignoring it does nothing for your financial situation. It’s answering the phone and speaking to the debt collector that helps. It isn’t fun, and it might be a very difficult call to make, but it’s one you can’t ignore.

bankruptcy lawyersWhen a person or business is so heavily in debt that there is no foreseeable way they can pay back that debt, bankruptcy is one solution. Bankruptcy serves as a way for individuals and companies that cannot meet their financial obligations to be excused from having to pay all or at least some of that debt at the time it is due.

The average student loan debt is growing. That is why many borrowers are doing everything that they can to get rid of it. You have probably heard about the Obama Student Loan Forgiveness program. However, there is actually no program with that name. There are companies that will charge you a fee in order to sign up for an income-based repayment program. However, this is something that you can do on your own for free.

Filing bankruptcy is a very serious personal financial decision for everyone. However, not just anyone can file any type of bankruptcy they choose. All potential bankruptcy petitioners must be means tested with respect to how much debt they have compared to household income.

Get your credit checkedfree credit check

Your credit report is one of the most important documents in your name, and it’s imperative you check your report regularly. Each of the major credit bureaus allows you one free credit check each year, and the best way to take advantage of this is to check one at a time every three months.

When a person obtains a loan for a home, car, large household item and more, the item purchased is what secures the loan. This is known as a security interest payment guaranteed. This financial arrangement is based on a person paying on the item while using it. Should a person stop making payments, it is known as a default. Once this happens, a creditor can get legal permission to remove the item from the person. This is known as a repossession.

Many Americans find themselves struggling with the problem of credit card debt. When you owe large amounts of money to your creditors, especially when you have more than one debt, it can negatively affect your credit, leaving you with a bad score and bad reputation. Fortunately, there are some credit cards that can help you to gradually improve your credit. Generally, the best options for rebuilding or improving credit are cards that are secured.

The term underwater mortgage describes a home loan for which the homeowners owe more than the appraised value of the property. For example, you purchased your home for $200,000 with a no down payment loan, and the market value has since dropped to $150,000 or lower. According to 2017 data from the National Association of Realtors, more than 13 percent of homeowners fall into this category.

Many consumers say they don’t understand credit. The truth is, cards and loans are all forms of debt. It’s easy to acquire too much debt or have problems paying it back.

Many debtors take on credit card “loans.” It’s easy to forget to make payments on time. It’s also relatively easy to get into financial trouble by borrowing too much by borrowing the maximum the card will allow. 

If you're in danger of losing your home because you can no longer afford to pay the mortgage, you may have some recourse. Read on to learn more about how the foreclosure process works and how you may be able to save your home.