Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Zombie debt is a broad term that refers to past debts that are still affecting you. An example of zombie debt is a three-year-old loan that should be paid off. The term “zombie debt” refers to a past debt that shouldn’t affect you anymore yet continues to appear on your credit report. Dealing with zombie debt can be extremely complicated as debt collectors may re ..read more

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Debt consolidation combines multiple debts into one and can help your credit score. Bankruptcy can reduce your total debt at the cost of ruining your credit. Debt consolidation and bankruptcy are two options for debt relief that have distinct advantages and drawbacks. Debt consolidation means merging multiple existing debts into a single new loan. Debt consolid ..read more

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Debt relief won’t hurt your credit alone. However, closing your oldest accounts can drastically lower your standing. Debt relief and debt settlement options don’t hurt your credit score on their own. These programs aim to help reduce your debt and if that debt is revolving credit, it can reduce your credit utilization and improve your credit. However, a debt relie ..read more

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. A financial hardship letter explains an unforeseen circumstance that has made you unable to make regular payments on a loan and requests a modification to help you get back on track. No matter how well you prepare, many Americans will encounter times of financial hardship due to circumstances outside of their control. Events such as company layoffs, natural disas ..read more

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Debt consolidation allows you to take multiple debts and combine them into one, and you can do this with your credit card debt. Doing this makes managing the debt a little easier, and you may be able to get a lower interest rate. Keeping track of multiple credit card bills can be difficult and potentially cause you to fall behind on payments or forget them altoge ..read more

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Disclosure regarding our editorial content standards. Debt collectors send debt validation letters show what debts you owe, the amount, and to whome you owe it to. While a debt collector contacting you can be stressful, it’s important to pause and remember your rights as a debtor. Before paying the debt collector, verify that the debt is actually yours. The debt ..read more

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. The average household credit card debt in America is $9,654, and the states with the largest amount of credit card debt are Alaska, Hawaii, and New Jersey. Between the first quarters of 2022 and 2023, The Federal Reserve Bank of New York reported that the credit card debt in America rose by $145 billion. As of June 2023, we saw a 12-month inflation increase of 3 ..read more

If you stop making payments on your debts, creditors usually have a set amount of time to pursue repayment. After that time, they can no longer legally pursue the debt. But that doesn’t mean you can just forget about the debt. Learn more about how debt collection and statutes of limitations work. In This Piece How Does Debt Collection Work? What Are the Four Types of Debt? Can a Debt Collector Collect After 10 Years? What “Restarts” the Clock on Old Debt? How Long Can a Debt Collector Pursue an Old Debt? What Is a Time-Barred Debt? What Effect Does Bankruptcy Have on Old Debt? What to ..read more

A judgment is an order issued by a judge or jury to settle a lawsuit. This decision details the rights, responsibilities, and obligations of each party. For example, if you fail to pay a debt, the lender can take you to court. In this case, the judge may order you to pay the other party as part of the court’s final judgment. The order can be issued in one of two forms: A monetary judgment: A judgment that orders one party to pay the other party a specific amount of money. A nonmonetary judgment: A judgment that involves a nonmonetary type of resolution, such as the exchange of property or se ..read more

Credit card debt is reaching record highs. Many people struggle with cost of living increases paired with financial instability and other debts, leaving them to make ends meet by using credit cards. And while credit can be an essential tool for solving some financial issues, it can also become an issue itself. Too much credit card debt can weigh you down with payments and lower your credit score, making it harder to achieve goals such as buying a car or house. Learning how to pay down your credit cards and manage your debt can help you use cards wisely without them becoming an anchor that hol ..read more