Dept Management

Key takeaways A balance transfer fee is what credit card issuers charge when you transfer debt, usually credit card debt, to another credit card. Balance transfer fees are typically 3 percent or 5 percent of the total balance you transfer to your new card. It’s difficult to…

Key takeaways Debt relief programs aim to help borrowers get their debt under control. Some programs can be implemented on your own, while others require the help of professionals. Nonprofit agencies may be able to help you without charging as heavy of a fee as a for-profit company. If your…

Key takeaways Typically, debt collection agencies won’t contact you until once your payment is at least 30 days past due, but it often takes longer. Legitimate debt collectors will send you a debt validation letter within five days of first contact. By law, collection agencies are prohibited from harassing or…

Key takeaways If you’re not happy with your credit card’s interest rate, you could try to negotiate with your card issuer. Do your research on your account’s history and terms as well as competing card offers so that you can make an informed argument. Improving your credit score tends to…

Key takeaways Debt consolidation puts multiple debts into a single account to make your payments easier to manage. Consolidating debts may temporarily reduce your credit score, but your score will improve over time as long as you make payments on schedule. You can minimize the impact on your credit through…

Key takeaways Debt forgiveness can reduce or wipe out certain types of debt, but you’ll typically need to meet strict criteria to qualify. Debt forgiveness has benefits and drawbacks, so make sure you understand both before taking this route. Not all types of debt are eligible for forgiveness, but you…

Key takeaways To calculate your debt-to-income ratio, add up your monthly debt obligations and your gross monthly income and then divide your debt by your gross income. While every lender and product will have different ranges, a DTI of 50 percent or more is considered high by most companies. Your…

Key takeaways High debt levels can lead to increased stress and anxiety, pessimism about the future and a diminished social life. Creating a plan to pay down debt can improve your emotional outlook. It gives you a sense of control, shifts you from panic to action and helps reduce harassing…

Key takeaways The federal filing fee for Chapter 7 bankruptcy currently is $338, while Chapter 13 filings cost $313. Additional costs are involved in filing for bankruptcy, such as attorney and credit counseling fees. Bankruptcy filings can stay on your credit report for up to 10 years, impacting your finances…

Key takeaways Your retirement funds are protected by the Employee Retirement Income Security Act (ERISA) if you file for bankruptcy. There are cases where your 401(k) assets can be seized. These can include if you have outstanding unpaid income tax, if you have criminal penalties/fines or if someone files a…