About Credit / Debt Management
Credit / Debt Management
3 Feb 2012 at 6:01pm
Every month around this time, many people sit down with their bills and their checkbook (or their computer or iPad) and write the checks to pay the bills. With some bills, you pay the exact amount due, no questions. But with credit cards, you may wonder the best amount to pay.
Full payment is the best, but when you can't pay the full balance, you'll have to pay another amount, preferably higher than the minimum. Read How to Decide Your Monthly Credit Card Payment for a few guidelines.
Your Credit Card Payment Amount originally appeared on About.com Credit / Debt Management on Saturday, February 4th, 2012 at 00:01:35.
Permalink | Comment | Email this
1 Feb 2012 at 6:01pm
Negotiating a lower payment is one way to pay off your credit card debt at a lower cost. When the lender agrees to settle your debt for a lower amount, say $500 on a $1,000 debt, part of the debt is cancelled. It's good news for you in the short run, but you could end up paying taxes on the cancelled amount.
The Internal Revenue Service requires businesses to report cancelled debts. Those businesses must also send you a form letting you know the debt was cancelled. When you prepare your taxes for that year, you're required to include the cancelled amount. That could increase your tax liability. Learn more about cancelled debts.
Follow On Twitter | Like On Facebook
You May Owe Taxes on Settled Debts originally appeared on About.com Credit / Debt Management on Thursday, February 2nd, 2012 at 00:01:50.
Permalink | Comment | Email this
1 Feb 2012 at 5:07am
Going forward, you might think twice about accepting an award or prize when you open up a financial account because you could owe taxes on the award. This year, Citibank is sending out 1099-MISC forms for mileage bonuses awarded to new checking account customers in 2011. According to the LA Times, the IRS agrees that this is part of the tax law.
Businesses are required to send a 1099-MISC form when they've paid a person more than $600 a year in prizes and awards among other types of payments. Citibank is valuing the miles at 2.5 cents each, so 25,000 miles is worth $625. At the 25% tax bracket, which applies to citizens with taxable income between $34,500 and $83,600, you'd owe $156 on the bonus.
Fortunately, this part of the tax law only applies to a benefit received as part of opening a new financial account, not miles rewarded as part of a frequent flier program.
More Credit & Debt Related Tax Issues:
Owing Taxes on Settled Debt
Pros and Cons of Paying Your Taxes By Credit Card
Smart Ways to Spend Your Tax Refund
Some Bank Customers Will Owe Taxes on Airline Miles originally appeared on About.com Credit / Debt Management on Wednesday, February 1st, 2012 at 11:07:41.
Permalink | Comment | Email this
29 Jan 2012 at 6:01pm
Don't ruin your credit repair progress by making big mistakes, like falling for a credit repair scam or by focusing on things that don't influence your credit score. Perhaps the biggest mistake of all is ignoring your credit problems instead of taking action.
Here's a list of 10 credit repair mistakes you should avoid.
What You Should to Do Repair Your Credit:
DIY Credit Repair
9 Things That Boost Your Credit Score
How to Rebuild Bad Credit.
Avoid Big Credit Repair Mistakes originally appeared on About.com Credit / Debt Management on Monday, January 30th, 2012 at 00:01:12.
Permalink | Comment | Email this
25 Jan 2012 at 6:01pm
Why does it seem like debt collectors get away with so much? I believe it's because so many consumers simply don't know their rights when it comes to third-party collectors. For example, did you know that you can request proof of a debt's validity when a collector first contacts you about it? If the collector can't prove you owe the debt and that they are authorized to collect on it, they can't legally continue collection efforts.
Read Make Collectors Prove You Owe to find out more about debt validation and how to exercise your rights.
Read More:
Tactics For Paying Off Collections
When Can Collectors Call?
15 Things Collectors Can't Do
Request Validation from Debt Collectors originally appeared on About.com Credit / Debt Management on Thursday, January 26th, 2012 at 00:01:45.
Permalink | Comment | Email this
22 Jan 2012 at 6:01pm
Most credit reports costs a minimum of $10.50 depending on where you purchase from. That's more than $30 for three credit reports at a time.
We're all entitled to a free annual credit report each year from AnnualCreditReport.com, but certain states have laws that grant an additional free credit report each year. Other states have laws that discount credit reports. For example, credit reports cost $3 in Minnesota.
Check out the list to see if your state has laws for free or discounted credit reports. If your state is on the list, make sure you use the credit bureau links at the bottom of the list to order your credit reports. Otherwise, you could end up paying full price for your credit report.
Read More:
How to Get a Free Credit Report When Denied Credit
Where to Get a Free Credit Report With No Credit Card
Six Ways to Get a Credit Report Free
13 States With Free and Discounted Credit Reports originally appeared on About.com Credit / Debt Management on Monday, January 23rd, 2012 at 00:01:13.
Permalink | Comment | Email this
20 Jan 2012 at 6:01pm
It's tough getting a new credit card when you have bad credit. Many credit card issuers won't approve your credit card application because of your negative credit history. It makes rebuilding your credit score difficult since you can't get new, positive information added to your credit report.
Fortunately, there are a few credit cards out there that will approve your application despite your bad credit. Some are regular credit cards and some are secured credit cards - those that require a security deposit. Even if you have to get a secured credit card to rebuild your bad credit, it's better than having no credit card at all. Find credit cards for rebuilding bad credit.
How to Rebuild Bad Credit
Steps to Rebuilding Bad Credit
Using Secured Credit to Rebuild Your Credit
Share Your Credit Rebuilding Tips
Best Credit Cards for Rebuilding Bad Credit originally appeared on About.com Credit / Debt Management on Saturday, January 21st, 2012 at 00:01:36.
Permalink | Comment | Email this
18 Jan 2012 at 6:01pm
Over the years, the debt relief industry has gotten a bed reputation thanks to companies who signed consumers up on expensive plans without completely explaining those plans.
In October 2010, the Federal government passed a law to end many of the predatory practices that debt relief companies engaged in. Notably, most for-profit debt relief companies, that includes debt settlers and consolidators and credit counseling agencies, can't ask you for an upfront payment and they must disclose all costs and negative consequences upfront.
If you're thinking about enrolling in a debt relief program, make sure you completely explore all your options and know your rights with these companies: FTC Rules for Debt Relief Companies.
Read More
Six Debt Repayment Options
The Dangers of Debt Settlement
Types of Debt Consolidation Loans
Know Your Rights With Debt Relief Companies originally appeared on About.com Credit / Debt Management on Thursday, January 19th, 2012 at 00:01:07.
Permalink | Comment | Email this
17 Jan 2012 at 6:01pm
Most of us could use a boost to our credit scores, unless of course, you're one of the 22% of the population with a credit score above 750 (according to CreditKarma.com). If you're planning to shop for a major loan soon, increasing your credit score by a few points could help you qualify for a lower interest rate, thereby lowering your monthly loan payment and the amount of interest you pay over the loan.
Convinced you should improve your credit score? Try any of these nine things that boost your credit score.
Learn More About Your Score
How Your Credit Score is Calculated
15 Things That Hurt Your Score
Benefits of Having a Good Credit Score
Image © Anton Sokolov / iStockPhoto
Give Your Credit Score a Boost originally appeared on About.com Credit / Debt Management on Wednesday, January 18th, 2012 at 00:01:54.
Permalink | Comment | Email this
15 Jan 2012 at 6:01pm
Young adults turning 18 this year are probably excited about the rights they'll gain this year, like being able to get a credit card. But, if your only income comes from your parents and they're not willing to sign for you, you may have to postpone your credit card for a few more years. That's just fine.
Whether you're just turning 18 this year or not, getting your first credit card is exciting. Credit is a big responsibility that you must handle properly so as not to dampen your financial history. Know what to expect with your first credit card. And first credit card or not, here are somethings you should do with a new credit card, e.g. read the pricing disclosure.
Read More
How to Get a Credit Card at 18
Where to Get Your First Credit Card
Steps to Qualify for a Credit Card
Getting Your First Credit Card in 2012? originally appeared on About.com Credit / Debt Management on Monday, January 16th, 2012 at 00:01:05.
Permalink | Comment | Email this
Newsfeed display by CaRP
