Earned Income Credit (EIC): What Is It?

By William Blake

Taxpayers are always very interested in the various tax credits that they can use to reduce their overall tax payments. The Earned Income Credit, commonly referred to as the EIC, is a tax credit which was established in an effort to help people who earn a low income to live as well as possible in their financial situation.

The earned income credit began in 1975. The idea was that the poor were just getting poorer with the taxes they were paying on top of a low income job. The credit gives back to taxpayers a good portion of the money that they paid in taxes throughout the year. In that way, families could keep more of what they earned.

As time has passed, the amount that the earned income credit returns to individuals has gone up. Supporters of the EIC assert that the earned income credit does more for low income workers than simply increasing the minimum wage would. This is because people who are awarded the EIC use the money they get back to make purchases that boost their local economy.

Income that is counted towards eligibility for the earned income credit is of three types. Firstly there is wages earned at a job. Wages include tips if you are a server in a restaurant. Any monies that are paid out to you by your employer such as bonuses are a part of this category.

Secondly, there is money earned as a self-employee. People can own their own business and still not be able to make ends meet for themselves or their families. Every penny earned through the business is considered in the earned income credit equation.

Any money earned by one of your dependents can also be used to obtain the EIC. For example, the money that your teenage son or daughter makes while working summers or before and after school can be counted by you in order to get the earned income credit. This is true even if they have not earned enough to have to file for taxes themselves. The combined total of your income and your children's will be used to determine your EIC.

The money that your investments earn for you is counted as income by the IRS, as is money you collect because of unemployment. These sources of income may reduce your chances of getting the earned income credit. For example, if your investments earn you more than $2,800 in one year, you are disqualified from the EIC.

Sadly, many tax filers are not even aware that they qualify for the earned income credit. Many people think they don't qualify or just are not aware of the EIC. Some people do not earn enough to have to file their taxes, but still qualify for the EIC. Be sure to check into the EIC so that you don't miss out on this opportunity.

About the Author:

Tire of struggling to keep up with your credit card debt? Get some simple credit card tips on the Debtopedia website. Visit http://www.debtopedia.com for a free copy of my "Secrets Of Credit Card Debt" report.

Counseling for Credit Card Debt Management

By William Blake

There is an appropriate and beneficial time to use a credit card. Sometimes we have an emergency or need to make a purchase right away and simply do not have the cash available. That is the time to use a credit card. At times when we receive the statement we are still not quite ready or able to pay for the purchase. This is even worse for people who find it very difficult to control their credit card spending. For them, they truly dread receiving that statement at the end of the month.

How to Get Help With Credit Cards

If you have a credit card that has a growing balance due to the high interest charges don't feel that all is lost. There is something you can do. You can call the credit card company's customer service department and try to negotiate a lower rate. They will be able to inform you quickly if you qualify for such a reduction. If you are able to reduce your interest you can begin to chip away at the balance because you will not be spending so much money each month on the compounding interest.

Utilize the Internet

Other help is available and can be found on line. There are thousands of financial experts out there who can help you with your credit card debt and they can easily be located on line. Sometimes it can be arranged for you to have a live chat with credit counselors that can help you get back on track and better manage your finances. There are also web sites that sell reading material with instructions on how to get out from under debt.

Counselors That Can Help

You can get counseling from people online or in person to help you maintain a better financial routine. They will be able to help you understand where you are going wrong and what you can do to make it better. They will help you work with your current creditors to get your interest rates lowered and may even help you to get your payments lowered. Credit card counseling can help you get your credit score back on top where it should be and help you keep it there.

Counseling Free of Charge

Most of the time credit card counseling is free. There are places that offer this help to the public at little or no cost. You will need to have all of your information ready for them as well as a list of all your creditors and debt amounts. They will find a way that best suits you and help you decrease your debt one step at a time.

About the Author:

Are you tired of struggling to keep up with your credit card balances? Learn some simple ways to pay off credit card bill on the Debtopedia website. Get a free copy of my report "Secrets Of Credit Card Debt" at http://www.debtopedia.com

Remove Cavalry Portfolio Services From Your Credit Report

By Justin Hutto

You must dispute a negative item from Cavalry Portfolio to remove it from your credit history. This is done directly with the credit bureaus.

You are telling the bureaus that you do not agree with the accuracy or validity of a mark when you file a dispute. Upon receipt of a valid dispute letter the bureaus will investigate the mark.

The bureaus will contact the creator of the mark and ask them to verify the account. They will then check the dates and amount of the debt.

If the mark can not be verified then the credit bureaus must remove it from your credit report. Frequently investigations result in the removal of negative marks.

You can write a dispute letter yourself or hire a credit repair service. If Cavalry is the only bad credit item on your report we suggest you dispute it yourself.

However if you have other negative items on your credit report we suggest hiring a credit repair service. A service will be able to use advanced dispute techniques in case the listing is verified.

Who is Cavalry Portfolio Services?

Cavalry Portfolio is a collection agency. They will purchase debt from financial institutions or they will work on a commission basis with an institution.

However they do offer contact information for individuals that want to comment about Cavalry and their collection methods. Most agencies will try to avoid customers and their feedback on their business.

They provide Todd Tipton as a contact his email is ttipton@cavps.com and his phone number is 918.665.5686. They claim to work with their customers to come to an agreement for repayment.

There are times when an account will go to collections due to a lender mistake. This is not uncommon and you will start getting communications from a collection agency.

You will not be able to explain to them that the lender made a mistake. Instead you will have to dispute the negative mark with the credit bureaus.

In sum if you have a mark from them on your credit report you should dispute it. You can do this yourself or hire a credit repair service.

About the Author:

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