So, what exactly can a debt collector do if you can't pay your old credit card debt? Understanding what's permissible can help you prepare for the steps debt collectors might take if you're struggling to pay off
Cheryl Lock
Credit card issuers place a soft credit inquiry on your credit report when they check whether you're pre-approved. This doesn't affect your credit score. When you submit an actual application for a credit card, the lender places a hard credit inquiry on your credit file, which can impact ...
Looking back, Nitzsche says that liquidating his 401(k) to pay off credit card debt is something he wouldn't do again. "It is so detrimental to your long-term financial health and your retirement," he says. Many experts agree that tapping into your retirement savings early can have long-...
The credit card company may offer you a payment plan or provide helpful information. Balance transfers might help move your debt to a lower-interest credit card, but they also typically charge fees worth being aware of. In summary If unexpected challenges arise and you can't pay your business...
But there are some steps you can take to avoid racking up debt on your high-interest credit card without having to close it. First, call your credit card issuer and see how they can help you. "If you don't pay off your full balance each month and have a high interest rate on your...
A home equity loan is one way to pay off your credit card debt. It generally has a lower interest rate, but it can also put your home at risk.
Consulting a business attorney or tax professional can help ensure compliance and minimize tax risks. Borrowing money from your own corporation allows you to collect more than your normal salary or dividends at a tax-free rate. However, you can't just take as much money as you want. You nee...
On the other hand, if you have credit card debt at 20%, you would be better off putting your extra cash toward paying that debt rather than investing it in the index fund. Unfortunately, it isn’t always that straightforward. Investments can be volatile. That index fund might be up 10%...
“Consider moving to a smaller home, downsizing your current living space or even moving to a new city or state,” said Jonathan De Fex, a financial advisor with Northwestern Mutual in Rockwall, Texas, in an email. “All of these can help reduce housing costs, property taxes and ...