Archive for November, 2009
I’m a Disabled Veteran And Being Chased by My Creditors. – Disabled
“Dear Steve, I’m a disabled vet living off my va disability comp and social sec disability. I am in a serious bind i became disabled in 2005 and i lost everyting i have been faced with collection agencies calling me to pay off the debt for my car that i had to turn in they did take 6 months to pick it up but i am aware that the statutes of limitation is going to run out so they have been extremly agresive and i have recieved threats of being sued what can i do. we are a family of three and we live paycheck to paycheck is bankcruptcy a good option or just hold out for the statutes of limitation run out and hope i dont get sued. i really need to buy a house i have found a few houses that would be less than my rent which is $800 monthly and i have found houses for $45,000 – $80,000 but since my disability i my credit took a plung please help Disabled” Dear Disabled, My advice is not to sit and wait. Just because the statute of limitations runs out does not mean they can’t attempt to collect the debt for ever. I would suggest you consider closing the door completely on these old debts with bankruptcy and then you can focus on moving forward with your life. The good news is that if you are eligible for a VA mortgage you will be able to get a VA mortgage loan two years after your bankruptcy has been discharged. The best step to take next is to meet with a local bankruptcy attorney you like and discuss the situation. The appoint is generally free and you’ll walk away knowing if bankruptcy sounds like the right approach for you to take. If you do decide to go the bankruptcy route, then follow my easy plan to rebuild your credit . Please update me on your progress by posting updates here in the comments section of your question . I’m very interested in how this works out for you. Big hug. Steve @GetOutOfDebtGuy P.S. Be sure to read ‘ The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey ‘. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Source: I’m a Disabled Veteran And Being Chased by My Creditors. – Disabled Other Related Articles to Read Joseph Wambaugh concludes cop trilogy – The Sun News Joseph Wambaugh concludes Hollywood police trilogy – Sacramento Bee Veterans honored at Veterans Day Parade – State Gazette
I Don’t Understand Why My Creditor Will Send Me a 1099C for Forgiven Debt. – Christina
“Dear Steve, After being unemployed for 9 months,- got a job at apercentage of my former pay, and started working on payment plan with creditors. The only people Idid and could not pay were. The of my credit card companies who refused to settle or agree to resonable payment plans based on what I could afford. Got in volved with a settlment company (Allegro, no less) which I am out of, and have called the comapnies to try and work something resonable out now. One is listening, others are still talking lawsuits as they did a year ago. My question is what is the rule for the 10999. Companies write off bad debt anyway, so why would they incur legal fees to pass on to the consumer, instead of making a clean break of the debt. Please note that I have had a wonderful experience with Citibank, who worked with me based on my income and – am about to complete a two year payment plan in March. No lawsuit, clean break. (1) Explain the reality of the 1099C in terms of the credit card industry, and one is not issued for the full amount due at times. (2) Advise for someone who is in risk of law suits, because the heafty downpayments that creditors are asking for in not affordable. Christina” Dear Christina, The 1099C is required to be submitted to the IRS when more than $600 of debt has been forgiven by a creditor. This is a tax issue, not a creditor issue. You may be required to pay your regular income tax rate on the amount of debt forgiven as if you earned the money. So if you default on debt due, or you settle your debt for less than is due, a 1099C will be issued and reported to the IRS. Additionally, a 1099C being issued does not absolve you of the forgiven debt. It is an accounting and tax function. Unless the creditor has specifically notified you that the money is forgiven and not due, they can come back at some point in the future and collect. The only way to avoid lawsuits and break the tie to the debt is with bankruptcy , or by paying the debt as originally agreed or in full. Your confusion here is understandable. You are looking at your situation logically. Creditors don’t do that. They look at consumers as a process. People behind get threats and sued. People who don’t meet certain arbitrary thresholds get sued. It does not cost the creditor any more to sue you than someone else. They dump consumers into a big bucket they pay for and those in the bucket get sued. There is no financial incentive not to sue. Please update me on your progress by posting updates here in the comments section of your question . I’m very interested in how this works out for you. Big hug. Steve @GetOutOfDebtGuy P.S. Be sure to read ‘ The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey ‘. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Source: I Don’t Understand Why My Creditor Will Send Me a 1099C for Forgiven Debt. – Christina Other Related Articles to Read What Happens When a Collection Agency Issues You a 1099? – Charlotte My Husband is Going to 1099 Me. We Are Getting Divorced. – Suki
I Have a Lot of Loans and Credit Cards That Are Raising My Interest Rates. It’s Not Fair. – Kelly
“Dear Steve, I have a lot of loans and credit cards. I pay my bills on time, I just have a lot of them. They are raising the intrest on my credit card and I don’t know what to do, can’t get another loan to pay it off. It’s so unfair!! I have $27,000 on a credit card that they are going to raise the intrest to 30% what do i do? Can’t get another loan to pay it off. Kelly” Dear Kelly, I can see from your email address you are probably a college student. If so, you’ll have to add this to the bucket of stuff you learned while in college. Credit Truths You Need to Know Under current laws creditors can do just about any damn thing they want to do. As long as you carry a balance on your credit cards you can’t afford to pay off that month, you will be subject to the term changes on the card. It’s not your credit card. It belongs to the creditor issuing it. If they want to take it away from you, they can. Everything about your credit card is dictated by the terms and conditions that come with the card. When you apply for a credit card or loan, get it and use it you are bound by those terms and conditions. Terms and conditions favor the creditor, not you. Credit products are not designed to be fair. They are designed to be profitable for the bank. At this point you might want to look at LendingClub.com and see if you can get a lower interest rate debt consolidation loan to pay off your debt. Your other option is to inquire with your creditors if they have an opt-out policy for these new term changes. If they do you will not have your interest rate raised but your card will be closed and you will not be able to use it. It will also not help your credit score as much once it is closed. Please update me on your progress by posting updates here in the comments section of your question . I’m very interested in how this works out for you. Big hug. Steve @GetOutOfDebtGuy P.S. Be sure to read ‘ The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey ‘. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Source: I Have a Lot of Loans and Credit Cards That Are Raising My Interest Rates. It’s Not Fair. – Kelly Other Related Articles to Read Irish Rail dismissal after second chance deemed fair – Irish Times The FTC’s mission and your goal. – Examiner
Brewer: ‘no problem’ on backers’ payday loan work – Arizona Daily Star
Payday Loan News Alert PHOENIX — Gov. Jan Brewer says it’s not inappropriate that some of her political associates are doing work for the payday loan industry that could result in controversial legislation reaching her desk. Those associates include Chuck Coughlin … Visit source for full article: Brewer: ‘no problem’ on backers’ payday loan work – Arizona Daily Star Other Related Articles to Read No Related Post
The State at 1 p.m. – Fox11AZ
Payday Loan News Alert The supervisors are Mark Carlson and Jacques Billeaud. We can be reached at (602) 258-8934 or toll-free at (800) 352-4093. AP stories, along with the photos that accompany them, can also be obtained from http://www.apexchange.com. For technical … Visit source for full article: The State at 1 p.m. – Fox11AZ Other Related Articles to Read No Related Post
Christianity And The Crash – NHPR
Consumer Debt News Alert We’ve heard a number of reasons for it – slack regulation, greedy bankers, sub-prime mortgages doled out to anyone who sign their name, spiralling consumer debt. Here’s a new twist: the prosperity gospel – the belief that material success is … Visit source for full article: Christianity And The Crash – NHPR Other Related Articles to Read No Related Post
Nissan Beefs up the Rogue in an Effort to Attract Male Customers – MSN Money
Scam News Alert Nissan will introduce an accessorized version of its Rogue compact crossover in hopes of attracting more male buyers. The Krom Rogue, on sale Dec. 9, will sticker for about $23,000 in its two-wheel-drive version and about $25,000 as a four-wheel … Visit source for full article: Nissan Beefs up the Rogue in an Effort to Attract Male Customers – MSN Money Other Related Articles to Read No Related Post
How Do I Get Trusted Recommendations For A Credit Card Debt Settlement … – PRLog (free press release)
Get Out of Debt News Alert PR Log (Press Release) – Nov 30, 2009 – In fact, not only will these firms help you manage your bills and work out how to pay off your debt, but you will also be given the tools to start rebuilding your credit. In time, it will almost be as if … Visit source for full article: How Do I Get Trusted Recommendations For A Credit Card Debt Settlement … – PRLog (free press release) Other Related Articles to Read No Related Post
http://twitpic.com/rljx6 In case you are looking for papyrus it’s on c11.
getoutofdebtguy: In case you are looking for papyrus it’s on c11. This is a picture sent from me through TwitPic. Click here to see the bigger version of this picture . You can follow me on Twitter to get all my picture updates. Other Related Articles to Read http://twitpic.com/rebsj Just saying – we CAN do it. http://twitpic.com/rd1qs Here is something you don’t see waiting at light behind you often – horse. http://twitpic.com/rc0of Introducing the Georgia Pacific Rollmastr 3000. What a name for a toilet paper holder. http://twitpic.com/rb0sd I woke this morning to find this person parked next to our bike. WTF! I guess they didn’t think I needed a whole space. http://twitpic.com/r69yy One of the most unusual ways to buy health insurance I’ve ever seen.
We Are Flat Broke And Need to Drain Our 401(k). – Susan
“Dear Steve, Currently collecting unemployment after being laid off from my job back in Feb 2009. It is exactly enough to pay my rent. My husband’s income is mostly from tips and some side jobs he does. We have very poor credit and our utilities are behind and have no savings. We have 2 children, one of which is in her last year of college that also needs financial support from us. I am 42. My husband has no retirement. I have a little over 32k in a 401k. I had borrowed $15k from it in Aug. 2008 as we were moving across country. The balance shows $32k, with $13k of that still owing from the loan. We really need the money now. What will this mean to us if I cash it out now? Susan” Dear Susan, Sometimes you need to do what you need to do. If you need to cash out your 401(k) then you need to talk this over with your 401(k) custodian and ask how to do it. If the original amount was reported as a loan you may now have to pay taxes and a penalty on that original amount when you close out the account. You will be left with a lot less than your balance. I see the need but my concern is what happens once the remaining money is gone and this situation happens again. And it will. Unless we can change the underlying situations the utilities will get behind again, bills will be due and then what. The only thing that will have been accomplished will be the current crisis will have been averted, your entire retirement account will have been plundered and lost and you will be even further up against the wall. This is definitely a tough situation. One I would not want to be in myself. But maybe we need to face the issues with some effective solutions rather than just postponing dealing with them? It might just be you have to have the difficult conversation with your kids that you are broke and can’t help them right now. It is a difficult conversation many parents have had to face over the ages. Maybe you need to talk to social services about utility assistance and food stamps and other benefits. Maybe a trip to the local food bank is on order. Maybe it is time to put everything on the table and reach out everywhere for help but leave the 401(k) alone. When the time is right it is easy to rebuild bad credit. I’m not worried about that. I’m worried unless you address these situations now, you will be homeless with an empty 401(k) account latter. Please update me on your progress by posting updates here in the comments section of your question . I’m very interested in how this works out for you. Big hug. Steve @GetOutOfDebtGuy P.S. Be sure to read ‘ The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey ‘. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Source: We Are Flat Broke And Need to Drain Our 401(k). – Susan Other Related Articles to Read I Am Single, No Savings, 51, and Live Paycheck to Paycheck. – Tamara We Are Thinking of Cashing Out Our 401K to Pay Off Some Debt. – Mary We Make Too Much Money and Have Too Much Debt. I Want to Raid My 401(k). – Paul I’ve Got a Military Retirement And a Fair Amount of Credit Card Debt. What Should I Do? – Jay John Has Questions After Reading My Book “Eliminate Your Debt Like a Pro”