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Information About Debt Repayment Plan
by Admin ·
A debt repayment plan does not erase the background settled in your credit history. Under the Fair Credit Reporting Act, which deals with fair credit reporting, accurate information about your accounts can stay on your credit reports for seven years.
In addition, your creditors will continue to report information about accounts that are being managed under a refinancing plan. For example, a creditor may report that an account is in credit counseling, that payments were made out of date or have not been performed, or that there are depreciation and other concessions.
The demonstration of a pattern of timely payments will allow you to get credit in the future.
Car loans and housing: Generally, refinancing plans for debt repayment cover unsecured debt. Your car loan or housing, considered secured debt, will not be covered by that plan. You must continue making these payments directly to your creditor.
Most of the financing agreements for purchase of cars allow the creditor the seizure of their car at any moment you stop paying your debts. Does not require notification or notice when they take this measure.
In the event that your car is impounded, you must pay the total balance of your loan plus cartage and storage tank to retrieve it.
If you can not pay, the creditor can probably sell your car. If you think you may be unable to pay its debt to the creditor, may be better than selling the car yourself and pay the debt, so you can avoid additional costs of seizure and reporting negative data to your credit report.
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Tags: Car loans, credit counseling, credit reporting, credit reports, creditors, Debt, debt repayment, debt repayment plan, fair credit reporting, loans, payments, secured debt, unsecured debt