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Nov 11, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Bev O'Shea |Aylea Wilkins
Most debt eventually disappears from your credit reports, but some debts stay on your reports for longer than others. Some of the debt on your credit reports demonstrates longevity, which can be positive for your credit score. Removing debt from your credit reports is almost impossible unless the debt is too old to report or time-barred or a reporting error is involved. If you have debts on your credit report that shouldn’t be there, file disputes with the credit reporting agencies.
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Sep 23, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Aylea Wilkins |Thomas Brock
Imagine a close relative calling you, explaining they’re working on an estate plan with an attorney. Because the relative trusts you, they ask if you can take on the power of attorney (POA) tasks. You want to help your relative but aren’t sure what involvement with a POA entails. Will it be a lot of work? Will you be expected to pay your relative’s debt and other expenses? And what happens if that individual dies?
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Sep 16, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Aylea Wilkins
An account delinquency occurs when you don’t pay a debt by the due date. If your payment is at least 30 days late, this information will likely be reported to the credit bureaus. Delinquencies can knock down your credit score and remain on your credit report for up to seven years. This hurts your short- and long-term financial health. The best way to prevent delinquencies is through proactive organization, debt management and contact with lenders and creditors when necessary.
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Aug 19, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Bev O'Shea |Aylea Wilkins
Be wary of any lender that guarantees loan approval without reviewing your financial situation. These promises are often a red flag for scams. Always read the fine print carefully and avoid lenders that impose hidden or upfront fees that are not clearly outlined. Avoid lenders that lack verifiable accreditation or registration. Stay informed about cybercrime trends to safeguard your personal and financial assets from scams.
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Aug 12, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Aylea Wilkins
While the debt forgiveness process could reduce or eliminate what you owe creditors, there are tax consequences to consider. The IRS regards settled debt as gross income, which is assessed at the ordinary income tax rate. All forgiven debt must be reported to the IRS at tax time. There are some exceptions and exclusions tied to debt forgiveness taxation. More than 1.2 million debt accounts were settled in the United States in 2022, with principal balances totaling $5.6 billion.
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Aug 1, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Aylea Wilkins
A May 2024 consumer credit report from the Federal Reserve noted that outstanding debt (including credit card balances) grew by $11.4 billion from the previous month. Many Americans may be part of that growth and wonder how to get rid of their debts. You might be experiencing increased credit card debt resulting from higher costs and reduced savings.
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Aug 1, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Aylea Wilkins
Higher inflation and lower wages are increasing outstanding debts, especially among lower-income households. The steps to take include understanding what you owe, budgeting, resisting new debt and taking part-time work for extra money. When used correctly, debt consolidation loans or debt settlement methods can help reduce what you owe. Inflation and slowing wages have created serious financial issues for many families. Among those challenges are increases in owed debt.
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May 2, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Aylea Wilkins
A lot of people may find themselves up at night worried about how they’re going to pay their debts. If you’re one of them, you might be trying to figure out how to get out of debt as quickly as possible. Not all debt is bad. If your debt increases your net worth or provides future value (like with a mortage), it’s usually good debt. However, if your debt doesn’t do this — and you don’t have enough cash on hand to pay it off — it’s bad.
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Apr 18, 2024 | 
bankrate.com | Amy Wolff Sorter |Aylea Wilkins |other publications. Amy
If you're just beginning your financial life, you should know your credit score starting point. There isn't a starting credit score, but there are minimum requirements for generating the initial score. There are multiple ways to launch and improve your credit score, such as secured credit cards and credit-builder loans. Building credit from a credit score starting point takes time, but it can be done. Credit scores are important for financial success.
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Apr 3, 2024 | 
bankrate.com | Amy Wolff Sorter |other publications. Amy |Bev O'Shea |Aylea Wilkins
A good credit score benefits you in many ways, impacting everything from loan approvals to housing options to job opportunities. You can work toward a good credit score by practicing responsible financial habits. Improving your credit won’t happen overnight — but with patience, you can see results. A good credit score plays an important role in your financial well-being.
