Dept Management
Although walking away from your debt completely may seem tempting, it will have a huge impact on your future financial life. Filing for bankruptcy is generally the more responsible — and safer — option. If you’re struggling to pay off your debts, you may wonder whether to file for bankruptcy…
Key takeaways Filing for bankruptcy can help you discharge debts and regain control of your finances. Bankruptcy clears many kinds of debt but does not necessarily release you of all debt obligations. Owed taxes and court-mandated payments like alimony and child support often must still be paid, even after bankruptcy…
During times of financial hardship, it’s not uncommon to fall behind on regular bills and debts you owe. But if you don’t keep up with your payments for long enough, you may experience a bank levy, which is when any funds you have in the bank become “frozen” and unavailable…
Key takeaways A power of attorney is generally not responsible for debts when the person they are POA for dies. A power of attorney may be responsible for debts if they cosigned a loan, share a joint account or are married to the person they’re POA for and live…
Key takeaways The statute of limitations for some types of debt is typically three to six years. While waiting for the debt to expire, record the start date when your debt was first recorded delinquent, don’t admit to the debt and check your state laws. Dealing with debt can be…
Key takeaways Social Security benefits are generally protected from creditors, but exceptions exist for federal debts, child support and legal judgments. The IRS can garnish up to 15 percent of your Social Security for unpaid taxes, and defaulted federal student loans can lead to benefit reductions. Child support and alimony…
Debt settlement is when you negotiate with creditors to reduce the amount you owe in exchange for a lump sum payment. It might provide relief, but it comes with credit score impacts and tax obligations. Debt settlement is a financial strategy that involves negotiating with creditors, with the help of…
Key takeaways Debt settlement may help borrowers manage overwhelming debt by negotiating a reduction in the amount of debt owed. You can negotiate directly with creditors or hire a debt settlement company to work with creditors on your behalf. Settling debts will almost require you to have a low credit…
No one wants to receive the dreaded call from a debt collector. But if you’ve fallen behind on paying your credit cards, loans or bills, your account may be sent to collections. Dealing with these debt collection companies can be stressful and embarrassing, but it’s more common than you think.…
Key takeaways Governments often borrow money to cover deficits when taxes and other revenues don’t cover expenses. The national debt is the total amount of money a country’s government owes to its creditors. A higher national debt can affect personal debt through increased interest rates, reduced benefit programs and potential…
