Answers
My business is still in the growth stage but we have racked up debt close to $50000 that is sitting on my personal credit cards. Should I transfer that debt to a large credit line under my company name? Will that alleviate the stress on my personal credit debt? or will that not matter because it is still my corporation? Any assistance with this matter is appreciated. I only hope to clear these debts sooner than later..Thanks
Unless you company is publicly traded, you will not be able to move the debt. Your company debt is your debt.
I see this often when I arrange loans.
The real question is "How do I borrow more. while I am in debt?'
The short answer is simply this: Your business needs to start making money and paying down debt. Failing that, you are in trouble.
I wish you luck. I've been there. Not a good place to be.
THEY CUT THE GARBAGE CAN AS THEY CUT THE CREDIT CARDS. CREDIT CARDS. DON'T GET INTO CREDIT CARD DEBT DON'T GET INTO CREDIT CARD DEBT IS ...
that depends where you are from as the law would differ? also what is your approx annual income and value of your assets (including the approximate sum of equity in your home)??
you are unlikely to be able to obtain relief from taxes as per the previous answer, however; again this will depend on your jurisdiction. Please provide further details.
edit: follow Danny's advice at your own peril!!
If someone have debt of $50000 in credit cards/personal loan and he can't able to not pay then what can happen to him?
Credit score is pretty much shot, no chance of anymore loans or credit cards. And unless you can come up with the cash to pay it all, you're most likely doing to have to file bankruptcy. And start screening your calls too, it's them coming after their money.
in value each. I am 2 months late in my 3 mortgages,my income is less because I was bump to part time.
what solution is best to me , Chapter 7 bankruptcy or try and pay the debts.?
I like to give constructive answers for the most part but sheesh man!
You should create a time machine, go back in time, and slap yourself in the face.
I am having 2 credit cards SBI & City Bank with outstanding of 30000/- & 20000/-. Every month I m paying heavy minimum amount from last one year. Now i want to settle the outstanding. I can arrange only 30000/-. What to do to get discount? Is it possible to settle the above outstanding with the cash i can arrange. What action can the credit card company may take if I refuse to pay the whole amount? I m facing financial weakness. Please guide me how to overcome from this problem.
SBI and City Bank? Are you in India?
I am not sure about Indian law, but this is what I do if I am in USA.
I have to pay 50,000 to credit card company. If I call them for discount they will never give it to me if the account is current. That means if I am paying my monthly minimums then they will not discount the amount.
I will stop making payments. This will hurt my credit history for now. but I will do it.
Credit card company will start calling me.
I will not neglect the calls. I will start my offer at 25%.
That means I will offer 12500 for 50000.
I will not increase my offer for many days, then if 25% fails I will increase to 30%, then 35%.
Based on other people's experience they credit card companies accept anywhere from 25% to 40%.
Never go above 40%.
The worst case senario is to pay 40% which is 20000 for 50000 balanace.
This can go upto 6 months.
You said you have 30000.
You still left with 10000.
Use this 10000 to repair your credit plus you have to pay taxes on the difference (50000 - 20000) 30000 amount.
If you don't pay the credit card companies can call you every day, sometimes many times in a day, get judgement against you in the court, garnish your wages or bank account against the judgement, destroy your credit history.
Try not to get judgement from credit card companies.
Credit agency folded, exec got huge payout
For eight years, John Waskin headed a charity set up to help consumers "attain debt free prosperity for their families."
There's little question it brought more prosperity to Waskin's family. When the Cornelius-based group closed in 2005, Waskin got the sort of parting gift most executives in the corporate world would envy: $5.1 million.
It was almost all the money the nonprofit American Credit Counselors Corp. had left in its bank account.
Most of that money was a pension payment approved by the organization's board of trustees - a group that Waskin helped select.
"I was worth every penny of that," said Waskin, 62, who founded the 55-employee group and served as executive director.
Credit Bureau Report - Credit rating Interpretation | platinum ...
Less than 1% of the residents of the United States has a perfect score. If this is your goal, you need a FICO score of 850.
Agencies assign points based on their financial record. In particular, assess the accounts of those who have the kind of debt you have, the age of your account, the frequency of late payments and the ratio of total debt of credit, could have an almost perfect score if you make all paymentstime almost been paid a mortgage, installment loans and pay early.
Employers use the scores to evaluate applications for employment. Hosts for review before leasing. Insurance companies adjust rates based on the level of responsibility they are paid. Government agencies refuse to hire someone with a low score for sensitive operations. If you use these problems, review the file with each of the three major agencies at least monthly.
...News
Credit agency folded, exec got huge payoutCharlotteObserver.com - Dec 20, 2009
Funded by charitable contributions from banks, credit card companies and customers, the organization helped about 50000 people get out of debt, Waskin said.
CBS MoneyWatch.com (blog) - Dec 22, 2009
In his defense, Waskin says that he deserves every penny because ACCC helped 50000 people get out of debt. I doubt it.Bankrate.com (blog) - Dec 10, 2009
It will be difficult to solve because many of these homeowners are over their heads with credit card or auto or student loan debt. and more »Trading Markets (press release) - Dec 22, 2009
The union is asking senior executives at those firms to consider the fate of 50000 YRC employees and their families should the company enter bankruptcy. and more »FOXNews - Dec 11, 2009
Time to Cut Up Congress' Credit CardsThe bill's already been run up; the credit card has already been used. When you get the bill in the mail you need to pay it." Oh, so that's how it works.Myiris.com - Dec 21, 2009
In the above example the EMI was Rs. 50000. Suppose your EMI on a car loan and a credit card loan is Rs 9000, then the EMI that you can afford is Rs 41000 aWhich4U - UK - Dec 21, 2009
Online banking 'can help with money management'"If they have got credit card debt then that should be their first focus", she claims, adding that after this people should concentrate on building up their and more »