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Can credit card debt transfer to your children after your death?

Posted by on September 1, 2010 3 comments

extisc asked:

An older family member of mine has a large amount of credit card debt and their only major asset is the house that they currently live in. From what I’ve read it seems that creditors will liquidate all of their assets including the house in order to try and cover the debt upon their death.

One of their children wants to purchase the house or assume the mortgage from them now and become the new owner. If the house is sold/transferred in this manner and no longer belongs to my older family member with the large debt, will creditors try to come after her child upon her death?

The house is located in Florida.

Lisa

Does Debt Settlement Affect Your Credit Score

Posted by on July 17, 2010 No comments

Marie Megge asked:

If you’re buried deep in credit card debt, you probably shouldn’t be asking if debt settlement affects your credit score. Instead, you may want to consider if you should really care what your score is. Think about your situation very seriously for a moment. You’re losing sleep and can barely make the minimum payments due on your credit cards. This situation is making you nervous and you can’t shake the sick feeling in the pit of your stomach because you’re always thinking about the money you owe and how you’ll be able to pay it back. Should you be worried? Probably, because this is a legitimate concern, and one that has the potential to remain for several years if you continue making minimum payments.

Now, jump over to the other side for a moment. Let’s say you’ve struggled and sacrificed to make your credit card payments each and every month. Because of this, your credit score is relatively high. So what? Is it worth feeling stressed out just to have a good credit rating? If you should enter a debt settlement program and your credit score is lower than you’d like it to be for a year or two, would you be awake at night thinking about your credit rating? It’s doubtful. If you’re like most people you’ll probably be so relieved to be debt-free, your credit score will be about as significant as your neighbor’s sister’s dog’s puppies.

Entering into a debt settlement program may or may not affect your credit score, depending on what your current situation is. Chances are, if you’ve made some late payments already and/or your credit cards are carrying high balances, your score is probably not as high as you may think it is. Negotiating reduced settlements with your creditors, through debt settlement, however, can save you thousands of dollars, help you avoid bankruptcy and finally get you to the point of being debt-free and stress-free in less than two years – very possibly even sooner.

If you should decide that debt settlement is your best option, be sure to hire a company you trust. If the first representative with whom you speak sounds like a salesperson and not really interested in your concerns regarding your current financial situation, there’s a good chance you’re not going to get the customer service you desire and deserve once you become a client with this particular firm. While going through the process of debt settlement, you’ll want assurance that your questions and/or concerns will be addressed promptly by the company you’ve chosen.

In summary, you should probably take a good look at what matters most to you – a lifestyle free of debt and concern, or a high credit score. When it comes right down to it, the choice really is yours, so be sure to make the decision you’re most comfortable with.

Kyan

Credit Card Debt Consolidation – Getting Rid Of Credit Card Bills

Posted by on July 4, 2010 No comments

Gibran Selman asked:

The day individuals land themselves a job; they are in a hurry to get a credit card in order to experience the thrill of spending without having any money. This is without a doubt pretty enjoyable initially, but once the credit card bill is delivered to your address, the look on your face is not so pleasant. Today, you can buy anything from dinner to a car with your credit card and people often end up buying so many items that by the time they have to repay it all back, they don’t seem to remember how and where did they spend so much.

This eventually results in the piling up of credit card bills and after a period, they all start accumulating interest on the due amount. To get rid of this dilemma, credit card debt consolidation offers a lot of help. This particular service consolidates all your credit card dues into one debt by negotiating with all your creditors. The debt consolidation company that collaborates with the creditors on your behalf makes sure that the creditors understand your condition and give you enough time to repay them.

The Procedure

First, the debt consolidation companies scrutinize your bills and calculate the total amount along with the interest that is pending. Then they work out a plan of how much you can afford to shell out at the end of the month, as repayment. On the basis of this amount, the time required to repay the entire credit amount is calculated. This is then negotiated with the creditors and a time frame is fixed for repayment. When the creditors agree – most of the time they do – then the agreement is sealed and your new repayment schedule begins.

Caution

When you search for a debt consolidation company, you ought to make sure that you obtain quotes from at least four or five different companies before finalizing one. The company that you choose should be the one, which offers you the lowest interest rates. This will ensure that the major chunk of your repayment goes towards the principal amount and not the interest. You should keep in mind that the interest amount that you pay on the loan is eligible for tax deductions. To make certain that you take full advantage of this facility, hire a tax consultant who will guide you and help you save every penny possible. This is one incentive you would not be able to enjoy on other high interest credit card payments. Individuals who apply for debt consolidation on credit card bills are advised against taking any more credit or incurring other debts while on a debt consolidation plan.

Most importantly to avoid getting yourself into this mess of paying and repaying credit bills, it is better not to get yourself a credit card if you are a spend thrift and are not habituated to planning and controlling your expenses. Credit card payments may seem like minor issues, but without proper planning, they turn out to be your worst nightmare.

Floyd

Credit Card Debt Settlement – Doesn’t it Hurt Your Credit Score?

Posted by on March 21, 2010 No comments

Hector Milla asked:

There is no getting around the fact that settling your credit card debt has an effect on your credit score. It would be nice if you could pull something like this off without having any negatives, but that just won’t be the case. When you think about your credit rating, though, you need to think about it in terms of the big picture. Being in debt is not a perfect situation, so there is going to be no perfect way out of debt. By virtue of sitting around with debt problems, you are setting yourself up for a bit of credit related turmoil. You need to be trying to figure out just how much settlement hurts your score when compared to other options.

Right off the bat, consumers will feel a little sting on their credit score. It will be noted on the report and you will have to live with that for a period of time. What most people with debt will tell you is that this is a much better option than just trying to pay off the debt naturally, though. When settling the debt becomes your best option, chances are that you have a past due balance. This hurts your credit much more than settlement, so you will really be improving the situation when you choose to go with a solid settlement firm.

What goes on your credit report?

Consumers who settle their debts will have that noted on their credit report. This is just something that you will have to deal with over time. Having a settlement notice on your credit report is not the worst thing in the world, though. It shows future creditors that you were able to work hard in order to save the money to make a big payment. With the way the laws are worded today, many people are choosing settlement as their best option. As it becomes more common, the creditors are going to have to accept it as a reality for folks who have gotten in too deep.

In closing, you will feel a little pinch on your credit score because of the settlement of your debts, but in the long run it is the best thing for your rating. It will help you clear the debt off of your report quicker, which will allow for a better score in fewer years. Future creditors will understand your situation as it currently exists.

Rodney

Credit Card Debt – What Happens If You Don’t Pay It

Posted by on February 28, 2010 No comments

Debra Proctor asked:

You really didn’t mean to. It didn’t seem like a lot at the time, but several months later when you look at your credit card statement you realize you’re in trouble and there doesn’t seem to be a way out. Be honest. If you’re like most people, the thought of just not paying your bill has crossed your mind. Before you dwell on this thought any longer, let’s take a minute and look at what happens if you don’t pay your credit card bill and a better way to handle this like debt settlement so that you avoid bankruptcy and you don’t go delinquent on your credit card bills.

First of all, if you don’t pay your credit card bills there are several unpleasant things that will happen like creditors calling, being reported to the credit bureaus, and legal action taken against you. You don’t want creditors calling you at home and work. Even if they follow the legal guidelines, you will feel like you’re being harassed. Next, you will be reported to the credit bureaus and negative marks will be made against your credit. Not good. The final resort your creditors will take is filing legal action against you such as garnishing your wages or putting liens against you. They don’t like to do this because it is a lot of work, but they definitely will.

Instead of taking this route, why not consider credit counseling, debt consolidation, or debt settlement? You can check out reputable counseling agencies online and they will help you decide what your best option is to get you some debt relief. The first step will be to review your financial situation. If you don’t have a huge amount of credit card debt, they will plan a budget for you and help you get organized so that you can make your payments on time and get the debt paid off.

They might also suggest credit card debt consolidation. This is accomplished by the agency taking your outstanding debts from different cards and either getting you a lower interest rate loan or a new credit card account with a 0% balance transfer fee and lower interest rates. They transfer all of your other accounts to this new account, close the other accounts, and then you only have one payment to make at a lower payment.

If you do happen to have a large amount of credit card debt, the credit-counseling agency might suggest that you try debt settlement. Again, the agency needs to do this for you. They negotiate with the credit card issuers and settle your accounts for a much lower amount. You can try to do this on your own, but you will have more luck if you use a professional to negotiate for you.

Given the negative things that will happen if you don’t pay your credit card bill, it is advisable that you don’t consider this as an option for debt relief and get professional credit card debt help to take care of your financial situation. This isn’t a “fun” process either but is much better than having creditors calling, legal action, a bad credit rating, or even resorting to filing bankruptcy.

Brandon

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credit card debt, debt management, credit card financing