Everyone would get and stay out of debt if it were that easy. However, with the current outstanding consumer debt at nearly $3 trillion, there are definitely some problems.
Common Questions Regarding Debt
Is it wise to borrow from my IRA or 401k to pay off debt?
By looking for the money to pay off debt, you ignore the reason you’re going into debt. It is highly suggested to fix your current problems before looking for a final solution to your debt.
A former spouse was assigned specific debts during our divorce but has not paid them and is ruining my credit. What should I do?
As a joint owner of an account, creditors have the legal right to attempt to collect the debt owed from you, and the charge-off of the debt will remain on your credit report. It would be best to contact your attorney and ask about having your ex held in contempt for not obeying the divorce decree.
Can my Social Security benefits be garnished?
Banks are required by the U.S. Department of the Treasury to protect federal benefits from being garnished. However, the federal benefits must be directly deposited into the bank account, and the protected amount is restricted to the total of the two previous months of benefits deposited prior to the garnishment order.
After my fiancée and I are married, will her creditors seek me for her bills?
Debts accrued before the marriage remain the sole responsibility of the person who owes them. If you share a joint bank account with her and her creditors sue in court, it is possible that funds could be garnished from that account.
How do I protect my credit if I co-signed a loan for my relative and he has stopped paying what is owed?
It will likely be in your best interest to make payments on the loan. As the co-signer you share responsibility for the loan, and the lender can collect from you.
My debt is past the statute of limitations. Why is it still being reported on my credit report?
The statute of limitations varies by the kind of debt and by state. Regardless, it has nothing to do with how long the debt can be reported on your credit report.
