Student Loan Garnishments - Secrets Revealed on Student Loan Garnishments

In this economy, it is becoming more common for people to be unable to afford their student loan debts. When you have no income and are forced to choose between making a payment and feeding your family, a loan debt can understandably be set aside. However, by not paying your debt, you are leaving yourself vulnerable for a student loan garnishment and possibly a higher overall debt.

What is a student loan garnishment? A student loan garnishment is when your loan payment is taken out of any income you have. This can easily be a paycheck (if you have become re-employed) or an income tax refund.

How does this happen, you wonder? Well, the IRS can legally intercept if you default on your loans. This is one of the most popular ways the Department of Education collects from defaulted loans. In fact, they claim to receive millions of dollars annually through this avenue. This is usually the most common way that government issued loans are repaid if they are defaulted on.

Another way a loan garnishment happens is through your paycheck. How this works is a set amount comes out of each paycheck, via your employer, and goes straight to the loan lender until your debt is fully paid. While no lender can request more than 15% of your disposable income or 30 times the federal minimum wage limit, this can definitely leave you financially vulnerable.

Student loan garnishments can also come via any federal benefits you may have, including Social Security retirement benefits and Social Security disability payments. Again, there is a limit to what can be taken of no more than $750 per month. This student loan garnishment through your retirement and disability income would continue until the debt is paid in full.

The final common way a student loan garnishment takes place is through a lawsuit. Both the federal government and private lenders can take you to court to try to get your loan payments made. This can be even more costly than the initial debt, as court costs and lawyer fees are often tacked onto the full amount. The final judgment amount usually ends up on your credit record and will cause you to have to make higher payments than you originally had.

In short, even if your income is limited, it is beneficial to continue making loan payments. Discuss with your lender your current financial situation and you might be able to get the monthly payment amount temporarily lowered. Now that you are empowered with more information, go out and take action.

How to Write a Convincing Debt Negotiation Letter

Let me ask you a question. Are you searching for a way to reduce your bills through some form of settlement? If so, you may have an understanding of what a debt settlement letter is, and how it could help you financially. You can also look at these letters as a powerful debt negotiation tool.

These letters are very straight to the point and persuading. They could be used in court if either party broke their agreement. These letters are very important if you expect handling debt negotiations yourself and not employ a third - party company. In the planning stage of negotiations, you must understand how to craft a convincing letter that gets results. Understand that a convincing letter is one of your secret weapons to reducing your debt load in a big way. Keep in mind that you must convince the lender that it is in their best interest to settle with you. This in returns lowers your debt.

Right before send out your first letter to the lenders or collectors, make sure that you have a basic knowledge on how the game works. You have to know the ends and out of debt settlement because the creditors and collectors are masters in this area. Here are a few tip you can use when crafting your convincing debt settlement letter.

1. Because the debt settlement letter could be used in court, have an attorney review it to make sure all terms are accurate.

2. You can also seek the advice of a friend who has successfully negotiated debt with these types of letters.

3. Make sure you understand the terms and conditions that you are asking for in the letter.

4. Include what you want eliminated like, fees, taxes, and interest rates.

5. Include the total amount you can pay in the settlement.

6. Let the creditor know that in exchange for the payment, you want the negative item deleted from your credit report.

7. Creditor's know most of the strategies used by consumers and debt settlement companies, so do not try to trick them with words like if you do not accept my payment, I will file bankruptcy. Instead, say that this is all the money I have, and I am are currently unemployed.

Here is a sample debt settlement letter that you can use as a model to write your first letter.

Your name:

Your address:

Address of the creditor or the collection agency:

Date:

Reference account number:

Dear creditor or collection agency,

In the last six months, I have been facing hard times with a lost of my job, my mother passing away and my brother going to jail. I sincerely apologize for falling behind on my debts, but I assure you my neglectfulness was circumstantial. Now that I have a job, I'm ready to settle my outstanding debt, and I would like to offer you 20 cents on the dollar (put a dollar amount here) for a deletion of all negative information from my credit report and no further collection activities. Currently, I'm in negotiations with other creditors on a similar deal, and I would like to close my account with you fast. If I receive a signed agreement from you, I will gladly send payment out overnight.

Sincerely,

Your signature here.

In summary, know what you owe and then compare it to what you have in your bank account. By doing this, you will know where to start with your negotiations. In addition, some creditors will ask for 80% of the balance but this is just a starting point of the settlement. You do not have to have that amount to settle with as it is just the start of negotiations. Your letter must be accurate due to its legal nature, and always double - check the terms and conditions of the letter before sending it out. Now that you are empowered with more information, go out there, and take action.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets debt settlement, please read the first chapter of The Credit Ebook Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Sample Dispute Letter - Can You Show Me One?

When using sample dispute letters, enter the information in the letter as directed. Make sure you put your report number at the top of the letter. Within the sample dispute letter, enter the reason for your dispute. You can find various valid reasons to dispute by cafefully viewing your credit report. Retype and print out the first dispute letter and then sign it. Make a copy of each credit report with the negative items circled and send it with your first letter. Include any proof that will help validate your claim, like receipts stating the item was paid.

Include a copy of your driver's license and a recent utility bill that displays your name and address, as the credit bureau needs this information to verify your identity. Every time you send sample dispute letter, send a copy of your credit report with the negative items highlighted. Mail your letters certified mail with a return receipt to establish a paper trail just in case you have to sue the credit bureau for failing to investigate your disputes. Send your letters to the following credit bureaus listed below.

Experian
NCAC PO BOX 9701
ALLEN TX, 75013

Equifax
PO BOX 105518 

ATLANTA GA, 30348

Trans Union
PO BOX 2000
CHESTER PA 19022

A sample dispute letter looks like this.

Your Full name:
Your Address:
Your Date of Birth:
Your Social Security number:
Report Number:
Date:

Dear Credit Bureau

I'm writing to let you know that your company is reporting inaccurate credit information on my credit report. The FCRA ensures that bureaus report only 100% accurate information. Therefore, I would like for the following information to be investigated.

Account one:
Account two:
Account three:

Please delete this misleading information, and supply me with a corrected credit report within 30 days.

Sincerely,

Print your name here.

Sign your name here.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of The Credit Repair Book/HCRS and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Disputing Your Credit Report - How Can I Remove Negative Items From My Credit Report?

Disputing your credit report can be a time consuming process. Using the dispute process to remove negative items off of your credit report can be frustrating. Nevertheless, it is one of the best ways to get negative information off of your credit report. Starting with the basic dispute process is quite often the fastest and most effective way of disputing your credit report.

Now that you have your reports in front of you, make sure to check the personal information section and check that all entries are correct. Check your name, date of birth, present, and past address, current and past employer, and social security number. After you have verified your basic information, you should scan all three reports and circle or highlight any errors you find. 

Scroll down each report and check for any errors or discrepancies regarding accounts, or 

inquiries.

Here are some important red flags to look for:

When disputing your credit report look for discrepancies regarding accounts and inquiries:

Unauthorized users
Customers listed as deceased
Former spouse name
Negative accounts from your divorce
Negative co-signed accounts
Unauthorized inquires
Illegally re-aged collection accounts (which report an incorrect last date of activity)
Foreclosure attempts
Consumer credit counseling loan indications
When disputing your credit report look for Discrepancies regarding balances and accounts
Balances incorrect
Credit limits listed incorrectly
Duplicate collections
Accounts listed incorrectly
Credit lines not listed
Paid accounts still showing that you owe
Closed accounts shown open
Closed accounts should say closed by consumer and not closed by the creditor

When disputing your credit report look for Discrepancies regarding negative trade lines:

Late payments, 30, 90, and 120 days
Collections
Charge offs
Tax liens
Judgments
Debt consolidation marks
Bankruptcies not saying withdrawn or dismissed
Repossession indication when it should say voluntary surrendered

Now, before you start trying to repair your credit report, let me tell you what the law says about disputing your report.

The Fair Credit Reporting Act regulates how the credit bureaus handle your report under § 611. For procedures in cases of disputed accuracy [15 U.S.C. § 1681i], the law states that if you dispute the accuracy of any item or data in your reports, the credit bureau shall conduct a reasonable investigation within 30 days to determine if the challenged item is correct.

After the 30 days have expired, if the credit bureau has not verified or completed the investigation, the disputed item must be deleted. There you go, that is the law, and you will use it to start your dispute process.

When disputing your credit report, you can write your own dispute letter or use a standard dispute letter that you find on the internet. If you decide to write the letters, you must include your full name, date of birth, address, social security number, the items you're disputing, the reason you are disputing them and your signature at the bottom. Once you have your letter s are ready, send them to the following agencies:

Experian
NCAC PO BOX 9701
ALLEN TX, 75013

Equifax
PO BOX 105518 

ATLANTA GA, 30348

Trans Union
PO BOX 2000
CHESTER PA 19022

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of The Credit eBook/HCRS and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Article Source: http://EzineArticles.com/5549585

When to File for Bankruptcy - 5 Sure Fire Options You Must Explore Before Filing for Bankruptcy

As a credit consultant, my clients always ask me when to file for bankruptcy. As a result, I advise them to file only when you have exhausted all of your available avenues such as talking with your credit card company, car, and mortgage lenders and your student loan representative about the various options you have to explore. You should also look into Consumer credit counseling organizations, debt consolidation, balance transfers and taping your savings and investments. If none of these options worked, and your debt exceeds your annual salary, then it's time to talk with a bankruptcy lawyer. Moreover, you must look at your advantages and disadvantages to filing.

When to file for bankruptcy option 1 - Credit cards

Talk with your lender and see if any of the following options are available.

• Having your interest and payments reduced
• Changing your payment dates.
• Qualifying for a hardship program
• Suspend payments until you get caught up
• Settling your debts for 20% on the dollar

When to file for bankruptcy option 2 - Car

Before you get to behind on your car payment, see if the bank will let you do any of the following:

• Move your late payments to the end of your loan
• Refinance the car for a lower payment and interest rate
• Participate in a hardship program

When to file for bankruptcy option 3 - Home

Talk with your lender to see if they can help you in any way. You can also do the following:

• Try to get your payments reduced and suspended
• Contact your local housing authority for help
• Try refinancing
• Selling the home

When to file for bankruptcy option 4 - Student Loan

Since the student loan can't be discharged in bankruptcy, talk with a representative at the student loan center and try some of the following options:

• Request a deferment
• Apply for a forbearance
• See if you qualify for the income sensitive program

When to file for bankruptcy option 5 - Credit Counseling

Schedule an appointment with credit consumer counselor. The CCC is a non-profit organization that assists consumers who are in financial trouble. Here is what they will do for you:

• Help sort out your financial problems
• Provide credit education
• Help you with a budget
• Provide you with a plan to get out of debt
• Set up a payment plan for you
• Negotiate with creditors on your behalf
• Reduce interest rates and get late fees removed

Concluding, as you can see there are many options you can explore before making the decision to file BK. Just because you are over you head in debt does not mean you should think about BK. Bankruptcies stay with you forever so keep that in mind along with the information you learned in this article. Now that you are empowered with new information, please make the right choice.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Car Repossession - Secrets Revealed About A Car Repossession Article Source: http://EzineArticles.com/5619849

Let's face it, when you default on your financial obligations, the lender will use the courts to take back property that is secured by a loan. If want to keep your vehicle because you were set back do to temporary financial problems, there are multiple technique's you can try to prevent a car repossession.

Car repossession secrets revealed - How do I stop the bank from taking my car

• If you can't afford the vehicle, try to sell it and pay the difference in your loan.
• You can also refinance it if possible.
• Ask your lender if you can add the delinquent amount to the end of the loan.
• Voluntarily surrender it to avoid the car from being repossessed. If you let the repo man take the car, two things will happen. There will be more fees involved because the bank had to hire a company to come out and pick up the car. And the word repossession will be placed on your credit report, which is more damaging than voluntary repossession.

Car repossession secrets revealed - How can I get my car back?

According to the law, you have a certain amount of time to reinstate the vehicle. Call the bank and ask them how much time you have to pay the back payments, late penalty and repossession fees.

Car repossession secrets revealed - What if I owe a balance on my car after the auction?

Once your repossessed car has been sold in the auction, you will receive the deficiency amount (the amount you owed from your original loan minus the auction sale price and fees) from the bank. You can try to settle the debt for 20 cents on the dollar. You can also set up a payment plan to settle the balance, and then subsequently challenge the item. If you don't posses the money to pay, it will go to a collector and possibly to court if it's a large amount. If this happens, follow the strategies used for collection agencies and judgments. See nfa.org for car repossession laws in your state.

Car repossession secrets revealed - What if I'm sued for the deficiency amount?

Find a good lawyer to represent your interest. Once you have found a lawyer, talk with him or her about the various arguments listed below. These defenses can be used to cancel the deficiency amount.

Car repossession secrets revealed - Arguments you can use:

• You have evidence that the mileage disclosure was false.
• The car sale was not commercially reasonable according to the law.
• The dealer failed to display the Federal Buyers Guide as required by Federal Law.
• Upon financing, you did not receive a completed sales agreement in a format required by the Federal law.
• Most state statues list a category of deceptive trade practices (Check your state statute to see if the dealer or the creditor violated any of these practices).
• If your car was sold with a written warranty and was taken back to the dealer for repairs, you may have an argument if the dealer refused to fix it.
• Any breach in warranty is considerable.
• The creditor did not send you a written notice advising you that they would sell the car, and that you would have a certain amount of time to redeem (pay off) the vehicle before it was sold.
• Dealers are required by law to let you know that the car was either wrecked, rebuilt, salvaged, stolen, water-damaged or a buy back lemon. If they did not disclose this information, and it caused you some type of damage, you can use this as an argument.
• Some states require dealers to inspect the engine and drive train on cars purchased after October 1, 1997. The dealer must give the buyer a written disclosure of any defects. If your car breaks down after you leave the lot, then you can use this argument because the dealer did not disclose the problem with the car.

Car repossession secrets revealed - How do I get late car payments off of my credit report?

You want to make the lender prove that you were late for those days indicated on your credit report. Call the loan company and ask them to send you proof that you were behind on your bill. If they can't provide you with proof, contact the credit bureau by letter and advise them that the bank has not provided you with proof and that the late entry should to be deleted from your report.

As you can see there are multiple techniques you can use when it comes to dealing with a car repossession, so take your time and apply the technique that fits your situation.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. If you liked this article, then please sign up to read the first chapter of The Credit Credit Book/HCRS and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com. This article may be freely reprinted or distributed in its entirety in any Ezine, newsletter, blog, or website. The author's name, bio and website links must remain intact and be included with every reproduction.

Hidden Credit Repair Secrets

Credit Card Debt Settlement
Having to many credit cards can be overwelming, I know because I was in your shoes.  But there are ways to deal with this debt and it's called credit card debt settlement.   Click here to get your Free debt Settlement Report  Here

Ways to Increase Your Credit Score in 90 Days

Have you ever image how you could get your credit score up so that you could buy that dream house, new car and that new flat screen TV. Are you tired of being turned down for credit because your three-digit number is too low? What about being charged high inter rates. Well, rest assure because if you apply the four proven strategies listed below, I guarantee you will see results with an increase credit score.

Increase credit score tip 1 - Pull your credit report

You can start by removing errors from your credit report. While scanning your credit report, look for any inquiries that you did not authorize. Inquiries could lower your score as much as five points per inquiry. Get the creditor to prove that you gave them permission to pull your credit report, and if they can't prove it, then the inquiry must be deleted according to the law. You should also inspect your report for the following:

• Accounts that are not yours
• Trade lines that are incorrect
• Outdated debts
• Accounts with the mark of authorized user
• Credit accounts that were paid but still shows outstanding
• Credit limits that are not being reported
• Any errors that require dispute
• Unauthorized Inquiries

Increase credit score tip 2 - Pay your bills on time

Make a list of all of your debts and their due dates. Then type in the due dates into your computer and cell phone calendars with reminders made active. Use the Internet banking program, and your online credit card site to send you email reminders when your bills are due. In addition, you can set up your accounts to have the money automatically taken out at the due date. When paying your bills, you can pay them as they come in, use online banking or bill pay or through your financial institution web site. Using the various methods mentioned above will help you pay your debts. Making each payment on time raises your credit score.

Increase credit score tip 3 Pay down your debt

Put your debts in order from the card with the highest balance to the lowest. Pay each account down to 30% and keep it there to increase your three digit number. Finding money to help you pay down your debt may be difficult, but there are numerous ways to raise extra cash. You can have a garage sale, sell on Ebay, get an extra job, pull from your savings, borrow from friends, and cut your expenses. Any of these are an option.

Increase credit score tip 4 Don't close old accounts

Closing trade lines won't help. In fact, it will hurt your three digit number by reducing your total available credit and making your balances seem higher. It also makes your total credit look young, and the FICO model likes to see age on accounts because of payment history. Last, you want to keep the cards active by having a monthly bill debited from your card at the end of the month to avoid the creditor from closing your account due to lack of use.

Concluding, working to increase credit scores are a time-consuming process because of the many techniques you must apply to make the four strategies work. However, you may not need to use most of the methods to raise your score. So now that you are empowered with new education, go out there and get the financial things you want in life.

Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Article Source: http://EzineArticles.com/5684325