Posted on Wednesday, 15th June 2011 by admin
If you are on a tight budget and are unable to settle some of your outstanding debts to creditors, then it is important that you know how to protect your checking account from being debited by your creditors so that your debts can be covered. Although it is true that creditors may be able to obtain a court order to freeze your savings or checking account if you have unsettled debts with them, you still have rights, provided that you are able to meet the requirements that are stated in the Exempt Income Protection Act of 2009. Read on to find out more on how you can protect yourself and your checking account from being accessed by your creditors.
1. The simplest solution would be to settle your accounts. If you are unable to pay the full amount of your outstanding balance, make sure that you would be contacting your creditor and working out some kind of payment plan. Keep in mind that it is never a good idea to ignore your creditors or forget about the money you owe as it could just hurt your credit history even more and prevent you from taking out a loan or opening a wide range of accounts later on.
2. You can also opt to transfer your money to another account. If the savings or checking account that you have is through the creditor that you would be settling with, they might be able to retain the funds in your account as you go through the settlement process. Make sure that you have already moved your money before starting to settle with your creditor. If you do not do so, your creditor might have a third-party agency use the funds and allocate them in such a way that your debts would be settled.
3. It is also important that you know what your rights are. Although your creditor has the right to demand payment from you, your checking account is protected from being frozen if you owe what are classified as private debts such as medical bills, credit cards and bank loans.
Similar Posts:
- What characteristics have the best debt relief companies?
- Step By Step Guide on How to Rebuild the Credit Score
- Checking Account Fees a Surprise to Consumers
- Line of Credit and Credit Scores
- Are Debit Cards More Popular Than Credit Cards?
Tags: Checking Account
Posted in Credit Cards News | No Comments »