Category Archives: Consumer Credit

Filing for a bankruptcy can clear consumer credit such as credit cards and payday loans.

Rebuilding Credit After a Student Loan Default

Student loan defaults affect millions of borrowers. Many more borrowers may default in the near future if recent research turns out to be correct. Like with many forms of debt, your credit scores will take a hit after a student loan default. Credit scores affect your ability to qualify for loans, jobs and housing. As a result, it is important to have information that can help you rebuild your finances after defaulting on student loans.  Step 1: Get Out of Default Getting out of default will not be an option for everyone. Private lenders may not offer terms that allow borrowers to rehabilitate defaulted loans. Fortunately, federal borrowers are far, far more likely to have this option available. There are several ways to get your federal student loans out of default. The first way is to take advantage of the Department of Education’s loan rehabilitation program. You cannot enroll in…
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Bankruptcy and Credit: Should You Worry About It?

Credit scores are a common concern for people who are considering bankruptcy. In fact, worries over credit scores are a common reason why people sometimes wait to file their cases. Although bankruptcy affects your credit scores, chances are you have more important things to worry about if you are considering bankruptcy. How Bankruptcy Could Affect Your Credit Bankruptcy’s effects on credit scores will vary from person to person, but there are some universal rules. For Chapter 7 cases, the bankruptcy does appear on your credit for up to 10 years from your filing date. Chapter 13 cases remain on your credit reports for seven years after they conclude. It is important to understand that not filing for bankruptcy could have an even more negative effect on the long-term health of your credit scores. For example, creditors are still going to report unpaid debts to the three credit bureaus after a…
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How to Avoid Excessive Debt While Holiday Shopping

We all feel the pressure to get the perfect gift for family members and friends. However, spending a lot of money on gifts can put you into serious debt. Every January and February, credit counselors see a 25 percent spike in the number of people seeking financial help. Many of these consumers blame their financial woes on holiday shopping. If you want to avoid this holiday pitfall, here are some tips to make the festive season more frugal. Make a Budget How much can you afford to spend on presents this year? Look at your finances, set a spending limit and stick to it. Knowing how much you can afford to spend will help prevent excessive spending when you are in the store. Make a List of Who Is Getting Gifts Make a list of the people who are at the top of your gift buying list. You can take…
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