There are many reasons why someone may not be able to pay their debts. If this is the case, it is in their best interests to send a debt letter to their creditors as soon as they realize they will not be making payments. Many creditors appreciate an honest and timely declaration from a borrower and will be willing to work with the individual to find a solution to their debt.
The main reason many people choose debt settlement is so that they can avoid declaring bankruptcy. Filing for bankruptcy is a debt solution that stays on your credit record for 10 years, but even after 10 years, many creditors and employers will ask applicants for loans or jobs if they have ever filed for bankruptcy. The applicant must give the honest answer even if it was years ago because to lie could result in being found guilty of fraud. Debt settlement will stay on your credit report for seven years, and there is no public record of debt settlement, so once a debt settlement is agreed upon by the debtor and creditor, the debtor can request that the debt be removed from his or her credit report.
If a credit card is lost or stolen, it should be immediately reported to the credit card company or bank that issued the card. This is essential so that the customer is not held liable for unauthorized charges on his or her card or if the card us used for identity theft. It can be done by phone, and the card that is lost, stolen or damaged can be cancelled. Most banks or companies have a 24-hour support number that can be called in just such a situation. The customer may be counting on air miles or other perks that they accumulate on their cards, so receiving a replacement card as soon as possible is essential.
The credit report is a file that is kept on each individual that shows their personal credit history. It expresses to prospective creditors, property-owners and occasionally employers how you take care of your financial obligations. Currently, there are 3 major credit bureaus in the United States that keeps a file on each individual.
A credit score has a big impact on the amount of money an individual spends. With a low credit score number, they pay more interest for credit cards, home loans, other debt and for insurance. With a high score, they can save substantially on all types of debt. Consumers can also have a big impact on their score by following a few tips to raise it to a level that will make them look good to lenders.
Loaning money can sometimes be the culprit behind a dissolving friendship between two friends. Therefore, if you're borrowing from or lending money to a friend, think about your relationship first. Money will always come and go, but once a friendship is destroyed, sometimes it's gone forever.