What is the Difference in a Credit Delinquency and a Charge-off?
Not all late payments are created equal. Falling behind on credit card payments could have different consequences depending on the level of delinquency. While any late payment meets the definition of a delinquent account, only severely late accounts reach the point of charge-off. Here are the primary differences between delinquency ...
Myth: Bankruptcy is Always a Better Option Than Debt Settlement
Reality: Bankruptcy should always be used as the last resort because it does the most damage to your financial well being. There are multiple solutions available to consumers who are unable to maintain payments on outstanding debts. The optimal choice for you will depend on the severity and length of ...
Best Ways to Cope With Credit Card Debt Stress
Millions of Americans struggle with crippling credit card debt. Unfortunately for most of them, it is not just their financial health that is in ruins but their physical well-being as well. Financial problems such as debt due to credit card balances, loans, bills, and so forth can weigh heavily on ...
Understanding the Credit Lifecycle Part 5:
What Happens if My Debt is Sold? This is Part 5 in a 5-part series on the Credit Lifecycle. Previous posts include Understanding the Value of Your Debt Over Time, Pre-Charge-Off Collection Practices, The Difference Between 1st and 3rd Party Collections, and What Happens to Debt After Charge-Off. It’s amazing ...
The Key Factors Impacting Your Credit Score
Credit scoring companies gather information from creditors and create a proprietary credit score evaluating each consumer’s ability to repay debt. The FICO scoring system is the most widely used credit scoring company used by 90% of lenders. While each company has a proprietary formula used to calculate consumer credit scores, ...
Understanding the Credit Lifecycle – What Happens When My Account Goes to Charge-Off?
Part 4 of a 5-part series of the Credit Lifecycle. The series also includes posts on Understanding the Value of Your Debt Over Time, Pre-Charge-Off Collection Practices, and The Difference Between 1st and 3rd Party Collections. (Link to previous posts) What is Charged-Off Debt? Lenders charge-off credit card debt when ...
How to Access Your Credit Score for FREE
Over the last decade, credit monitoring companies have expounded on the importance of consumer credit scores. The primary message associates power with knowing your score. However, there is a lot more to credit than obtaining a single credit score. Here are the basics you need to know: There are Two ...
Understanding the Credit Lifecycle – What is First-Party and Third-Party Collections?
Part 3 of a 5-part series on the credit lifecycle. This series on the Credit Lifecycle also includes Understanding the Value of Your Debt Over Time, and Pre-Charge-Off Collection Practices. (Links to previous articles) When you miss payments on your credit card bill, the creditor or bank will begin debt ...
What to do When Facing the Reality That Your Debt Will Outlive You
When a loved one dies, the last thing you want is to deal with calls from creditors, yet this often happens when there are outstanding bills at the time of death. In many cases, you have no legal obligation to pay the debt, even if you are the deceased's spouse ...
Can I Settle My Credit Card Debt Myself?
Key Takeaways Financial hardship could make it possible to negotiate debt balances and pay less than the full amount owed. Bankruptcy can wipe out unsecured bills, leaving creditors with no way to recover the debt. Therefore, creditors of unsecured debt are often willing to accept less than the full balance ...
