Unless you owe Uncle Sam taxes or are behind on alimony or child support payments, your social security benefits cannot be garnished. So, if you've recently lost your job and are worried about your social security payments falling victim to the debt collectors as well, you can rest assured that won't happen.

It's a common misconception among consumers that paying off a collection account will make it disappear from their credit report. However, the truth is a collection remains on your credit report for seven years from the date the account went into serious delinquent status. This date is often pegged as the first 180-day late payment on record.

If you're in the process of settling a debt or thinking about approaching a creditor to begin debt settlement negotiations, it's important to remember that the IRS considers forgiven debt to be taxable income. What this means is that if you owe $10,000 on a credit card and settle with your creditor for $4,000, the difference of $6,000 will be reported to the IRS as earned and taxable income.

What does this financial buzzword you're hearing everywhere really mean? If you're a homeowner facing the possibility of foreclosure, it should mean a great deal to you because loss mitigation is a process available to help keep you in your home. And while loss mitigation includes various methods used to negotiate terms with home lenders, each method has the same goal in mind - to stop the home foreclosure process before it occurs.