Debt settlement companies are companies that have been formed in order to settle debt for debtors at a fraction of what is owed to creditors. A controversy has recently risen within the debt settlement industry when debt settlement companies asked for money up front before providing a settlement service. There has been so many complaints nationwide about the problem that Congress responded by passing new legislation in 2010 that directly dealt with the debt settlement industry.

In effect, the new laws passed prevent debt settlement companies from charging an advance fee before providing any services.

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A recent press release from the National Consumer Law Center highlights a new federal rule that, if not modified in the next two months, will take effect May 1st and should better protect the bank accounts of people receiving government benefits. Here’s what you need to know.

When Creditors Can’t Garnish Your Money

If you’ve ever filed for bankruptcy or been in serious debt, you may be familiar with the practice of garnishment, which occurs when a creditor collects money directly from your wages or bank account to cover a debt you owe.

• Current law protects certain funds: As federal laws now stand, creditors are prohibited from garnishing certain payments from the accounts of debtors (that is, people who owe them money). These

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When it comes to paying off the debts the most logical answer in most people’s minds is to start with the ones that have the highest interest rates. However, you should always keep in mind that all your debts are important and you will need to repair all of them at some point or another.

A good way to help you prioritize them is to analyze the possible consequences of not paying them on time. Therefore, you should start putting the highest priority debts on the top of your list and focus on paying those, although you should be careful to pay the other ones as well, at least from time to time, so that they do not accumulate and thus increase their priority. Full Post…

Personal loans can be very useful for consolidating debt, paying for a vacation, or taking care of other unexpected expenses; however, it can be tricky to get personal loans for bad credit. The majority of personal loans are signature loans, which means that they are backed up by your signature and your promise to pay them back. If you have bad credit, a signature on a contract is often not enough for a bank to lend you money. Use these three tips to help you get a personal loan with bad credit.

1.   Try to find any collateral you may be able to use to get a personal loan. Collateral is something that the bank can seize in the event that you do not pay on your personal loan. S

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