Unemployment Numbers A Blip?

Job creation is the new and improved goal of this legislation, and those struggling with debt should pay attention. Recently, President Obama has been touring the nation drumming up support for his new stimulus plan, although no one is actually calling it that. With the unemployment rate still at 10 percent, the president is now taking steps to help the economy recover quicker.

Not only is the president looking to pump more money into the economy to boost job creation in markets like infrastructure and small business, he is offering incentives and tax credits to those companies who start hiring. It’s great news for all of those struggling with debt and looking for a lifeline.

Of course, in any debate there are two sides. Many would hope that the president would take a more direct route that would truly aid failing economies like Michigan and Philadelphia. Michigan unemployment numbers stand at an amazing 15 percent right now, while Philadelphia stands at just over 11 percent. These are incredible numbers that many Americans fear will not change with more stimulus money.

Even when it seems like things might be turning around, when unemployment numbers showed a slight dip over the last month, American consumers are still extremely skeptical that things are turning around. We are still breaking records with bankruptcy filings, credit debt is still through the roof, and in many place the unemployment numbers are still extremely high.

President Obama and the Democrats plan to unveil two bills in the upcoming weeks to help stimulate the economy, help those struggling with debt, and help those who are still having trouble finding work.

The first would top $100 billion and would extend unemployment insurance, temporary food-stamp payment increases and subsidies for health-care purchases by the unemployed. That would likely be attached to a spending bill in coming weeks. The second, a jobs bill estimated at about $70 billion, would contain many of Mr. Obama's initiatives and likely wouldn't reach his desk until early next year. (Wall Street Journal)

There are many hurdles to overcome in trying to convince congress to approve of these two measures, but the president is touring the nation to assure struggling Americans that this is the way to get jobs moving again. He seems to believe that with this stimulus boost, the slowly recovering job market will get a much needed boost and will recovery much quicker.

If you are struggling with debt and are looking for some financial help, look no further. Debt settlement might just be the answer you’ve been looking for. Visit http://ping.fm/2FoUf for more information.

Unemployment Numbers Looking Much Better

Is the economy truly taking a turn for the better? According to new unemployment numbers, it may in fact be getting brighter out there in the job market. While unemployment numbers are still at 10 percent, they are no longer at 10.2 percent, a welcome sign for many economists. (There is no better time than now for debt setlement).

Factory orders are beginning to rise again, which means factories will stop laying off and might even start hiring again. For the hard-working American, this is indeed a welcome sign. Americans are falling into debt and filing for bankruptcy faster than they have been in years, and it’s not only taking a toll on families, it taking a toll on the entire economy. Now that things are beginning to turn around, it’s possible that people will begin to turn around the financial situations as well.

Why is this so important? Why is it that everywhere you look online someone or some news source is praising this new economic upturn? Well, because it’s the first sign that perhaps the economic stimulus is working, or that people are becoming more financially responsible.

I mean, how did we get into this mess in the first place? Well, financial irresponsibility got us here. It wasn’t just stock market greed, or bad housing loans, it was the underlining ignorance of finances. Credit debt was something that Americans weren’t worried about, because that was a factor they’d think about in the future.

In the future, when the money would continue to flow in and life would be wonderful. In the future, where financial strain wasn’t even considered to be an option. But, alas, the future came and the money did not. That home loan you got with an adjustable rate, the one that was so affordable for the first three years and then shot up to 15 percent after that. You know the one, where you thought you’d have the money to cover it in the future.

And those credit card bills just kept piling up, but you were going to pay them off in the future, right? Well, the future has come and gone, and we have learned the error of our ways. It is for this reason that the economy went south, and for this reason that the economy is turning around. Americans are simply becoming more financially responsible, and that is great news for anyone who is looking to get out of debt.

So, as unemployment numbers began to drop below 10 percent, and you get back into the job market and back to bringing in a decent paycheck, it’s important to remember the lessons that we’ve learned along this economic journey. Now is the time to get out of debt. Now, while we are licking our wounds and starting over, it’s time to start fresh.

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Debt Consolidation vs Debt Settlement

Should you consolidate your debt? Maybe a debt loan is more your style? Or perhaps you’ve done your research and know that the only financially responsible way out of credit debt is with Credit debt is a huge problem facing this country. The typical American consumer these days has struggled with credit debt derived from medical bills, foreclosures, job loss, and pay cuts. While unemployment numbers skyrocket, so do bankruptcy percentages and foreclosures. Sure, the economy might be making a sluggish turn-around, but where does that leave you?

It probably leaves you wondering how you’re going to catch up and get out of debt. So, you’ve done some research online and looked at the different ways of getting out of debt. You’ve checked out debt loans and debt consolidation, debt counseling and debt settlement. How do you make your decision and chose the debt recovery path that’s right for you? It’s easy, chose the path and the company that is most affordable with the most reliability.

Let’s talk debt consolidation. So many will tell you that it’s the right way to get out of debt, but if you look a little farther you’ll see that they are the ones who stand to make the most off of you. Debt consolidation and debt consolidation loans involve ‘consolidating’ your debt problem into one giant, heaping mass of regrets. You’ll toss everything together into one interest rate, one payment, and one easy solution, right? Not so much.

Does it make sense to take out a loan to get out of debt? Doesn’t that seem like some sort of oxymoron. I mean, think about it…you take out a loan to get out of debt on something that you couldn’t make the payments on in the first place. So, you consolidate your debt so that you can make payments on a loan….which brings you right back to the beginning of your problem.

Let’s turn the talk to debt settlement. Choosing this path, and a reliable debt settlement company, you can feel assured that things will change. Not only will you have a debt settlement agent to speak to at every turn, you’ll have a debt negotiator who will work diligently to get you a decent settlement. Your debt settlement agent will help you to make the right decisions to change your spending habits, and since you won’t have any monthly payments it will be easy for you to become more financially responsible.

But, how do you chose the right debt settlement industry? Easy, all you have to do is look for those who are members of ACCORD or USOBA, for this means that they are required to adhere to strict guidelines that protect you, the consumer. Another tell-tale sign that you’re chosing the right debt settlement company is whether or not they charge any upfront fees. Many reliable debt settlement companies charge absolutely nothing upfront, and only require you to make a monthly deposit into your savings account for the final settlement.

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Credit Cards Take A Back Seat This Holiday Season

Did you use your credit card this Black Friday? As a debt settlement blogger, I honestly hope your answer is no. According to recent polls taken of the American consumer, more holiday shoppers will be using cash this year to avoid the penalty fees and outrageous interest rates that most credit card companies are charging.

The percentage of shoppers using credit cards is expected to fall 10.2% from last year, with 28.3% of consumers using credit this year, down from 31.5% a year earlier. Debit-card use is expected to rise, but these cards are less profitable for banks. (Wall Street Journal)

That poll was taken before the infamous Black Friday holiday. In another poll, conducted by Reuters, Back Friday shoppers did indeed use more cash this year. Only 26 percent of all shoppers interviewed actually used their credit card to make purchases.

Things are definitely turning around for the American consumer. It may be a slow turn-around, but consumers are becoming smarter and more financially responsible. The credit card numbers above only prove that point, and with that small number comes more fears for the credit card industry.

Credit card companies have taken some huge hits in the past year, and this is just another to add to the pile. With the Credit Card Act of 2009 about to take effect and limit credit card companies’ abilities to raise rates and charge ridiculous fees, that small percentage above means less revenue as well. With less people making purchases on their credit cards, that’s less money going to the credit card companies in way of usage fees.

Even the Fed has taken its stance against credit card companies by running ads to help consumers avoid any credit penalty fees. These ads are currently running ahead of movie trailers in metropolitan areas to remind consumers to be smart and financially responsible with their spending habits.

Hopefully you were able to avoid that plastic habit and use only cash or your debit card this year, but, as always, if you fear you might have gone too far on Black Friday, visit http://www.thedebtsettlementprogram.com for debt recovery options.

Using Credit Cards During the Holidays

Are you saving your holiday shopping for the big sales? Maybe waiting for Black Friday before you open that wallet up for friends and family? Well, you’re not alone. Everyone is saving, searching for the best deals, and being more financially responsible with the little budget they might have for holiday shopping.



While a steady decline in sales since last October has slightly leveled off, amazingly sales of electronics have gone up, as well as online sales. It’s no surprise that online sales are increasing, now that consumers have become both more financially responsible as well as more internet savvy.



Another big seller, if you can say ‘big seller’, this Black Friday will be ‘gifts of lasting value’, as the Wall Street Journal says. Besides shopping for bargain, consumers will also be looking for practical gifts that will last. With unemployment rates at 10 to 15 percent in some places, it’s not really a surprise that consumers are looking for quality items that can withstand the test of time. Who knows what will happen in the future with this economy?



"Retailers have to dig deep and pull out their A-game right now, because it is a very competitive environment," Mr. Snyder said. "Whereas you might have given something more trendy in the past, a down comforter is relevant to what is happening right now." (WSJ)



So, how do you keep your holiday spending within reason this holiday season? It’s all about how you pay. Cash is always best, and while many more consumers will be using cash this year because they’ve learned financial responsibility, many will still use their credit cards. If you must use credit, chose the card with the lowest APR. If you have the funds coming in to pay off your credit spending within a reasonable amount of time, put all your holiday purchases on one credit card, preferably the one with the lowest APR and highest available balance.



But, you say you want those amazing deals that you can only get with a store credit card? Well, then get it, but make all of your holiday purchases with that card at that store. Don’t use another credit card for another family member at another store. This is how the domino effect takes over your credit debt.



This store may have a great deal for Uncle Buck, but that store has a better deal for Aunt Petunia. How can you possibly pick one relative over the other, one store credit card over the other? You’re going to have to if you’re working to keep your credit balance and debt low. Chose one store that you want to get the best deals from, and do all of your holiday shopping at that single store. This will help you stay out of debt.



Sure, you can use your credit card during the holidays, if your financially responsible and completely able to pay off what you spend within a short period of time. If you do get yourself into trouble, give debt settlement a look at http://ping.fm/w5PUl

Obama Signs First Time Home Buyer Extension

Not too long ago we brought up the possibility of a first time home buyer tax credit extension. Well, we’re no longer seeing a possibility, because the extension has become a reality. It’s a great thing for the real estate industry, as well as first time home buyers1

The new deadline for the first time homebuyer tax credit is April 30, 2010, which gives buyers, and sellers, plenty of time to boost the market even more.

The bill will expand the homebuyer tax credit to more families, phasing out for individuals with income above $125,000 and for joint filers with income about $225,000 (the current law credit phases out for individuals with income starting at $75,000 and for joint filers with income starting at $150,000). It also creates a $6,500 credit available to homebuyers who have been in their current residence for five or more consecutive years out of the last eight years. – Maryland RealEstateRama.com

For everyone who is taking advantage of the extended first time home buyer tax credit, it’s important to remember that no matter when you purchase your first home you must file for the tax credit with you 2009 taxes. Speak to your financial counselor or tax man to find out exactly how to do this and claim your credit return.

When President Obama put pen to paper and extended the tax credit, he also extended certain jobless benefits that were all included in the ‘Worker, Homeownership and Business Assistance Act of 2009’. This bill was singed into effect at a time when the national unemployment rate has officially hit 10%, an amazing number. Even while the stock market is climbing and breaking records, and the economy is slowly turning around, the unemployment rate is continuing to rise.

This extension of the first time home buyers credit was a much needed break for many individuals looking to live that American dream. While many first time buyers were scrambling to sign the paperwork before the November deadline, they now have a renewed sense of hope and some much needed time to find exactly what they’re looking for.

The initial tax credit for first time buyers gave a much needed boost to the real estate industry, and thus the economy. Many experts argued that without the tax extension, this volatile housing market that was beginning to stabilize would simply plummet. When it looked that the tax credit was going to expire in November, the housing market slowed and fear rushed back into the minds of those in the real estate industry.

Jim Shirley, a broker at Gum Tree Mortgage in Tupelo, Mississippi said 60 percent of the mortgages his company is working on now in New Albany, Oxford and Tupelo are directly related to the tax credit. – UPI.com

Joey Guyton, owner of J. Guyton Group, said 90 percent of his home sales over the past three months in a neighborhood geared at first-time homebuyers have been directly related to the tax credit. – UPI.com

The growth of the housing market over the summer was due greatly to the first time home buyer credit, and thanks to the extension the market will hopefully continue to grow well past the April deadline.

Looking to get out of debt with your 2009 tax return? Let us help you out! Visit http://www.yourdebtnegotiator.com for more information.

Possible Tax Credit Extension Coming Soon!

While home sales are dipping due to the final days of the first time home buyer tax credit, congress is being urged by President Obama to extend the very successful stimulus for a few more months. If you haven’t purchased your first home yet, you might not be out of luck.

With talks in the works to extend the tax credit, congress is also discussing whether or not to change the credit to include all home buyers, not just first time home buyers. Instead of the $75,000 income limit for the first time buyer credit, congress is discussing setting a $125,000 limit, which would allow for many consumers to take advantage of this stimulus.

The new deadline being discussed is April 30, 2010. We'll keep you updated!

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Before Using Your Emergency Credit Card....

According to CreditCards.com, we are on a fast track to filing 1.4 million bankruptcies this year. We’re already at over 1.07 million, and the number is climbing very fast. Wrap this number around your head; 6,000 bankruptcies are being filled every month nationwide! With the Credit Card Act changing the game of the credit industry, and the unemployment rate at around 10% nationally, and health insurance companies taking advantage of everyone, it really shouldn’t be a surprise that bankruptcy numbers are through the roof.

Sure, consumers are learning how to budget more efficiently. We’re also learning how to keep food on the table and make more than the minimum on the credit card during these rough economic times, but it’s not enough to keep medical expenses down and avoid the inevitable illness and accidents. That’s why lobbyists, legislators, and politicians, as well as hard-working consumers, are taking up the charge and asking for a change in the bankruptcy system.

People file for bankruptcy for many different reasons. The most common would be divorce, credit card debt, and medical bills. Recent numbers have shown that of the millions of bankruptcies filed in 2007, 62% of them were due to medical related issues. Of that number, over 70% of those consumers already had medical insurance, but it wasn’t enough to keep them above water.

Let’s stop and think about this for a moment. If we are on track to rack up 1.4 million bankruptcies this year alone, and 62% of them will be medically related, that’s almost 870,000 people who will be so devastated by medical debt that they will have to file for bankruptcy. If that doesn’t put things into perspective, I don’t know what else will.

Here’s where it gets interesting. If you have to get a transplant, and your insurance is only willing to cover $10,000 (which I overheard was in fact a reality for a local Arizona couple who had insurance) how much is coming out of your pocket? In reality, how much is coming out of your credit balance as well, and then your home, and then anything else that you can get money from to simply stay alive?

Most patients who are dealing with a medical emergency cannot work, thus they can’t pay their bills. In these situations, credit card debt piles up so quickly, and the creditors start harassing so aggressively, that any thought of staying relaxed and in a healthy state of mind is nearly impossible. When you’re stressing about your mortgage and credit card debt, and considering bankruptcy as an option, how are you going to get healthy? Tack onto that your medical expenses that your health insurance didn’t cover and you’ve got some serious problems.

Debt settlement is an alternative to bankrputcy that should be seriously considered. If you’ve dipped into your “emergency only” credit card funds, as well as your home and cars, it’s time to consider other options. Bankruptcy is a tough road to take, and until the system changes it will devastate your financial future.

Currently, bankruptcy is bankruptcy, and whether you are filing due to a divorce, credit card debt, foreclosure, or medical expenses, it’s all the same. The bankruptcy code “does not distinguish between debtors driven into bankruptcy by medical bills and those who become insolvent through poor planning or reckless spending.” (DelawareOnline.com) That is why a subcommittee was held this week to discuss the proposed changes. Hopefully a decision will be made soon.

For more information on alternatives to bankruptcy, visit http://www.bestdebtnegotiator.com.

Fraudulent Debt Companies Taking Advantage of Disadvantaged

Once again, there are thousands of fraudulent debt settlement companies out there. We hear about them every single day, and how consumers paid hundreds and thousands of dollars in monthly fees while the debt settlement companies would literally sit on the money and not work to get them out of debt. But, and I say it again, not all debt settlement companies are like that.

ACCORD, the American Coalition of Companies Organized to Reduce Debt, is an organization that, much like USOBA, United States Organizations for Bankruptcy Alternatives, has set extremely strict guidelines in regards to debt settlement company membership. Any company that wishes to enroll and become credited by ACCORD must adhere to certain policies that truly make it impossible for the company to be fraudulent in any way.

Debt settlement and negotiation companies that join ACCORD agree to operate by these three critical principles:

1.) We believe debt negotiation and settlement must become a solid, credible industry that provides measurable and serious debt relief for consumers facing the overwhelming power of credit card companies. ACCORD member companies agree to operate fairly, transparently and with the goal of delivering some critically-needed balance to credit card company / card holder relationship.

2.) We only get paid when we successfully settle or negotiation our clients outstanding credit card debt. That means absolutely no up-front fees, no interim fees and no payment of any kind unless and until we deliver real savings to the client on their credit card balances. No success, no fee!

3.) We believe in and practice full disclosure to clients and regulators. Before any prospective client signs any agreement, ACCORD companies disclose fully, completely and in the simplest language possible the exact terms of our performance-based agreement and we supply regulators with all the information necessary to evaluate our compliance with applicable laws and regulations.

www.AmericanCCord.com

It doesn’t have to be complicated, or shady. It’s simple, much like The Simple Plan that ACCORD endorses that has been taking the nation by storm. The Simple Plan is ACCORD’s debt settlement program that involves no upfront fees and forces the debt negotiators to work diligently for an affordable debt settlement for their clients. The fees at the end of the 12 to 36 month program is based solely on the amount each client is saved. A percentage of the saved amount is then charged, which entices the debt negotiators to do their absolute best to get the customer the best possible settlement, because everyone wins in the end.

According to the recent article that I read, over 15 million people are out of work, over 5 million of them have been out of work for 6 months or more, and those who are working are averaging on 33 hours a week. Everyone is struggling, and the fraudulent debt settlement and collection agencies are making more money than ever, preying on the middle class. While everyone is barely keeping food on the table, credit card companies, debt collection agencies, and debt settlement companies are sitting high and mighty. But not every debt settlement company should be included in that category.

The reliable debt settlement companies are laying off employees just like everyone else, as they refuse to take advantage of the weak by raising prices and limiting services. ACCORD certified companies are simply changing the way they do business to benefit the consumer, even if it means taking the high road and losing employees.

When researching your debt settlement options, don’t be veered by the bloggers who want to keep you from alternative debt relief options that come from reliable companies, and that might actually help you out in the long run.

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Fraudulent Debt Negotiation Co. in Chicago Get Punished

The debt settlement industry has always been scrutinized for not upholding promises made to consumers who are already struggling. They have always been harassed by the Federal Trade Commission for taking advantage of those in financial strain. And for good reason. Many of these companies are extremely shady and want nothing more than to take your money and run. It seems to be common theme among debt settlement companies.

For this reason, state and federal government agencies are taking back control of the debt settlement industry and placing consumer rights at the fore-front. Illinois Attorney General Lisa Madigan is currently taking charge of the effort in Chicago. According to a Chicago Tribune article, Attorney General Madigan has seen an increase in the amount of complaints that her office receives regarding fraudulent debt settlement companies.

In this case, Debt Solutions of America is under fire for taking their clients’ money and not fulfilling promises to reduce credit card debt by 50 percent! One of the first rules of the debt settlement industry is not to make promises that you cannot keep. To be completely transparent and honest with your client is the best thing that you can do, even if it means not being able to tell your client everything they want to hear.

According to the article, Debt Solutions basically promised to get clients out of debt. With this promise, clients were required to stop payment on any credit cards, and redirect payment to Debt Solutions on a monthly basis. While they were paying monthly debt settlement fees, Debt Solutions did nothing to settle their debt. Many clients were eventually sued by their creditors.

"These charges are outrageous and baseless," the firm said, adding that it has a letter from the state of Illinois "confirming that we are a legitimate business" operating within the law. (Chicago Tribune)

According to ACCORD membership guidelines, a reliable source when it comes to setting debt settlement industry standards, Debt Solutions biggest mistake was its failure to be completely transparent. By telling clients to stop paying on their credit card debt, and not informing them of the possible consequences to their credit score and wallet, they were shuffling around the system. By not informing customers of an estimated time frame, and by not working to meet that time frame, they were changing the debt settlement game to meet their needs.

A respectable debt settlement company will be a member of ACCORD or USOBA. They also will have a great track record and numerous client achievements. In most cases, they will not charge upfront fees. Since the FTC is beginning to really crack down on the industry, if your debt settlement company is still charging upfront fees it will probably have to change soon anyways as the FTC proposes legislation to stop that practice.

In Illinois, Attorney General Madigan isn’t the only one cracking down. Illinois State Treasurer Alexi Giannoulias has proposed new legislation of his own to help keep consumers safe from fraudulent debt settlement companies. According to Giannoulias, many debt settlement companies will tell clients to stop paying their credit cards and instead make that deposit monthly toward the debt settlement. In many of those cases, the debt settlement company promises a settlement worth pennies on the dollar, and yet does not deliver, while the client plunges further and further into credit card debt.

The proposed state legislation would require debt settlement companies to be licensed in the state and the fees they charge would be capped at $50 upfront and $30 per month. Additional fees could only be based on how much consumer the consumer actually saved. Other steps would also require the companies to provide monthly statements and would also bar them from the credit score damaging process of advising people to stop making their regular payments. (Credit.com)

ACCORD members who are a part of The Simple Plan charge absolutely no upfront fees and have no hidden costs. It is a great program that ACCORD is actually working with legislators, politicians, and lobbyists to give some traction to. With The Simple Plan, the fees are based on the amount saved on the debt settlement. This is a wonderful new debt settlement program because it forces the debt negotiators to work hard for their clients’ settlement. The greater savings the debt settlement company gets the client, the more they have to gain. It’s a win-win for everyone involved, and it is completely transparent.

For more information from a respectable debt settlement company who is accredited by ACCORD and USOBA, visit http://ping.fm/3OJwb.

Consumer Credit Card Numbers Improving

Some new credit card numbers have been released from Credit Karma this month, reviewing the past few months of consumer credit debt history. Good news! We are slowly getting gout of debt!

Overall, U.S. consumers have been finding ways to dig themselves out of credit card debt, even with the ridiculous unemployment numbers and foreclosure rates. Nationally, credit card debt has decreased a whopping 4%! That is an amazing number when you consider these rough economic times that we still find ourselves in.

What is also amazing is that overall national credit scores are improving as well. Nationally, U.S. consumers have brought up there credit score by 32%, while 32% have remained the same number and 29% have decreased. Today, the average credit score is 672, which is a pretty good number considering our situations.

While all news isn’t great on the credit card front, and in yesterdays posting we spoke about how tough credit card companies are being on Arizona residents, things are definitely turning around. Louisiana is one of the states that has continued to fall below the line. The latest numbers from Louisiana show a credit debt increase of 15%, although their state average credit card balance is almost a thousand lower than the national average.

As I’ve said time and time again, perhaps this crushing economy hasn’t been all bad for us. If you’ll allow me to get on my soap-box for a minute, we all know it’s been excruciatingly tough for families to keep dinner on the table, however it has also been inspiring to see families spending time together. How many families are sitting around the game table playing Monopoly again? Or talking a walk to the park with the dogs instead of sitting in front of a movie or going out of town? I know many families who spent more time relaxing in a campsite, together and happy, rather than going to an expensive resort and never spending any time together.

Need more information on how to get out of debt? Check out http://www.thedebtsettlementprogram.com.

Credit Card Debt In Arizona

While the Credit Card Act 2009 was supposed to help consumers, many in Arizona are still feeling the pinch of greedy creditors. A disturbing account of credit card activities is chronicled today in the Arizona Republic, telling the stories of many Arizona credit card holders who are not feeling any positive effects from the Credit Card Act. In fact, their situations are actually getting worse.

Hit by fallout from the recession, housing slump and rising unemployment, many institutions have scaled back lending. Last week, the American Bankers Association reported record-high delinquencies in three consumer areas: home-equity loans, equity lines of credit and credit cards.(AZ Republic)

According to the American Bankers Association, it’s Washington’s fault. When they began passing legislation to regulate the credit card industry, as well as home loan lenders, they gave the American people false hope that things in the industry would change for the better. (Really? That’s their reasoning!)

"Sometimes, expectations don't always line up with reality," said Tanya Wheeless, president and CEO of the Bankers Association.

Of the problems that Arizona residents are facing with their credit cards is the out-of-the-blue rate changes, the limit decreases, and the supposedly-fixed-rates being changed to variable rates. Credit card holders in Arizona, and around the country, are furious.

"After they get bailout money, they want more," said one Arizona resident fighting with his credit card company. "Our tax dollars are not enough for them."

But, the bankers and credit card companies continue to blame the government for the new legislation. It’s the new legislation, they say, that has made it harder for them to provide for their clients. Lenders warned Washington that the new legislation would lead to higher borrowing costs, which now seem to be setting in.

While owning a credit card and a bank account usually costs the consumer no additional fees if they make their payments on time, fees for making withdrawals from ATM’s not owned by their bank and bouncing a check are rising dramatically.

The bottom line is to keep an eye on your credit card statements every month. If you see a discrepancy, visit or call your bank. According to the Arizona Republic article, bankers are more willing to work with you if you contact them early. Instead of tossing your statements into the junk drawer to be looked at later when you have time, look at them as soon as they arrive. If there is a problem, a rate hike, or a new fee, call immediately.


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Deadline Quckly Approaching For First Time Home Buyers

Time is running out to cash in on that first time home buyer tax credit. If you’re not making offers on your dream home today, you might not have the opportunity. Closing papers must be signed on November 30^th in order to get that $8,000 back on your taxes. But, then again, rumors are abounding that the tax credit should be extended. Kind of like the Cash for Clunkers extension, pushing these tax incentives longer than originally anticipated kind of reminds me of Favre not retiring when he should. The Cash for Clunkers program is reportedly disapproving consumers and dealerships left and right, so why do we think the first time home buyer tax credit will be any different?

Like it or not, the discussion for extending the tax credit is continuing in the House and Senate. My suggestion, however, is if you’re seriously interested in getting a home, get one now because it’s a better time than ever to purchase a home for the first time. Home prices are still incredibly low, and that incentive is very tempting. Who doesn’t like free money?

Time is definitely running out, however. For most first time buyers, the purchase of a home from searching to closing takes longer than a mere two months. If you’re already looking, think about making an offer soon. The average close on a home takes about four weeks, which would put you right at that deadline if you found a home this month.

If you’re choosing to wait it out and save while you watch to see if congress will extend the first time homebuyer credit, there are some strong arguments in your favor. The Realtors group said in mid-September that 350,000 new buyers would not have purchased a home this year without the credit, according to Business Week. Home prices have increased 1.6% in 20 markets over the summer, prompting industry experts to credit the first time home buyer credit for pushing home sales.

While congress talks about extending the tax credit, the real-estate lobby wants to not only extend it, but to raise it from $8,000 to $15,00, which is making me think we should have waited a little longer to purchase our first home.

According to SubprimeBlogger.com, an extension of the first time home buyers tax credit could grow home sales by 20%! Many experts believe that once the economy picks up a bit, and people start getting jobs and stop losing them, this extension could greatly improve home sales numbers. While numbers have been great for the program so far, one argument is that they will only get better as the economy improves. Kind of like the chicken and the egg, huh?

If you’re thinking about jumping on this bandwagon and taking advantage of the $8,000 that is being offered now through November 30^th, you better start making offers today otherwise you might be out of luck. You never can tell how long a home purchase will take, what with the inspections, offers and counter-offers, and mounds of paperwork.

If you're thinking about using that $8,000 to get out of debt, why not take that step today. Visit http://www.thedebtsettlementprogram.com for more information.

5 Steps When Choosing A Debt Program

After much discussion and financial stress, you’ve decided that it’s time to get some help getting out of debt. You are taking that first step towards financial freedom by realizing that you just can’t do it alone, and someone needs to give you a helping hand. So, now what? Where do you turn? How do you even begin to search for a reputable company that will help you out of debt without emptying your bank account and wallet.

The most important thing that you can do when beginning your debt settlement research is to be informed. Do your homework! I’ve written many, many articles on the debt settlement industry, and I can’t stress enough how crucial it is that you check out your company before you hire them. Remember, you’re hiring them. It’s not the other way around.

1. Two websites that I would recommend checking out when making your debt settlement decision are the United States Organizations for Bankruptcy Alternatives (USOBA), and the American Coalition of Companies Organized to Reduce Debt (ACCORD). These two organizations have proven track records and allow only reliable and credible debt settlement companies to enroll.
   
   
   
   1. USOBA, the older of the two organizations dedicated to equally protecting both the consumer and the industry, and ACCORD have strict guidelines for enrollment. These guidelines include complete transparency when negotiating with consumers, avoiding the urge to make promises to consumers, and being completely realistic when estimating expected time until settlement. If the debt settlement company you’re investigating is not a member of either one of these organizations, it might be best to continue your search.
   
   
   2. The most important factor regarding membership with USOBA or ACCORD is that the debt company must be transparent. This means that they cannot make a promise about what your settlement balance will be and they cannot promise a time frame. In this industry, there is so much negotiation that needs to be done it is nearly impossible to promise exact settlements and time. If the company you’re talking to promises to save you 50% on your balance, run for the hills.
   
   
   3. Is the debt settlement company asking you the right questions? Does this debt company adequately pre-screen its potential clients before enrolling them? One of the most overlooked steps in the process is the qualification of potential clients. Many times a debt settlement company will quickly qualify, get you to sign the contract as they make the big promises, and then realize that they cannot help you after you have gone through the process. It can be the most heartbreaking thing to have to go through, because in many cases you won’t find out until you’ve made many payments.
   
   
   4. Ask what the charges are, and exactly where your money is going. A fraudulent debt company will give you some small percentages and tell you again and again that they will get you out of debt no matter what. If they charge large upfront fees for initiating the program, run for the hills. The FTC is beginning to consider demolishing all upfront fees for debt settlement services, so if your company is still charging you might want to consider looking for a company that does not.
   
   
   5. Are you comfortable with their customer service agents? In most cases, you will be assigned a debt negotiator and/or customer service agent. This person will be your go-to-guy, and you’ll probably talk to them as much as you talk to your husband or wife. Be sure that you are completely comfortable with this person, and that your gut feeling tells you to trust them. If they’re supportive, informative, blunt, and experienced, then you’ve got the right person. If they are aloof and simply tell you what you want to hear, as much as you want to hear the perfect answers, it will not help you in the long run.
      
      
      
      1. How often will they contact you? Will this debt company not only help you to get out of debt, but coach and counsel you on your spending habits. The best debt settlement companies will do more than just negotiate your debt; they will attempt to help you change your spending habits.
      
      
      2. A huge red flag to be aware of, which should be common sense, is if the debt settlement company enrolls you without a contract. You must sign a contract! That contract must lay out exactly what your enrollment entails.
      
      
      
      
   
   
   
   

Finding a debt settlement company that’s reliable and accredited is easier than you might think. Sure, there are hundreds out there who just want to take your money, but there still are the good guys who only want to help you get out of debt. I can assure you that there are still those negotiators and services out there that genuinely enjoy getting that final phone call from their client, that final phone call where the client is nearly in tears from happiness because they received their settlement letter. It just takes a little work to find those debt services. But it’s worth it in the end.

DIY Debt Recovery

I have no doubt that everyone has asked themselves this question at one time or another, especially in this climate. The answer is simple; of course you can get out of debt on your own. If you have the drive, the commitment, and the financial means, then go ahead and get moving on getting out of debt the DIY way. It’s completely possible.

What a debt settlement program or debt negotiation company can do for you is exactly what you can do for yourself. Sure, the debt negotiators are trained and experienced in settling debt and dealing with unruly creditors, but if you have the courage it can be done DIY style.

Here’s what you need to do:

1. Take a few hours to sit down, get out all of you credit card statements, figure out your take home income each month, and configure your budget. Whether you go DIY or you talk to a debt counselor or negotiator, they will have you do the same thing. You have to start out knowing where you’ve been, what you are spending, and what you’re able to put towards getting out of debt. You have to have something to negotiate with, like any other game.


2. After figuring out your budget, do a little research. Know what your interest rates are and what you feel they should be based upon your budget. Be realistic in deciding on a number to negotiate with. In doing your research, look up the rules and regulations regarding your debt rights in your state. Each state has its own rules when it comes to creditors and debt.


3. Prioritize your budget. I know this pre-planning seems time consuming, but it is necessary. Prioritize where your money should be going. Should you be heading out on Friday night or making sure you have enough for your mortgage? These are the things that got us into this economic mess in the first place; literally living beyond our means.


4. Stop using your credit cards! This one I cannot stress enough. If you want to do this DIY debt negotiation, then you have got to take the first step by giving up that addiction. I know it’s rough, but it is completely necessary.


5. Now comes the fun part; calling your lender. Take a deep breath, hold your head high, and find your confidence. Explain your situation. If you have had medical emergencies, a costly divorce, have lost your job, or any other uncontrollable circumstance that has led you into debt, be honest and tell them. If you were to call a debt negotiator today they would ask you about how you got into debt, and if you had an unforeseen circumstance it would be used by your negotiator to barter with the creditor.
   
   
   
   1. When you talk to your lender, be compassionate, honest, and genuine. I know it seems like a hard thing to do when they might just brush you off, but call again and again until you find results. This is where using a debt negotiator comes in handy, because they actually have the time and energy to call again and again.
   
   
   2. Ask your lender to lower your interest rates because you just can’t make those high payments. You want to pay down your debt, but you will not be able to do it with the high interest rates.
   
   
   3. Ask your lender if they will consider debt forgiveness. According to CNN, more and more card issuers are accepting dimes on the dollar as payment in full. Usually you have to be delinquent at least 90 days with a credit report that shows missing payments isn't common. Closing an account due to settlement will affect your credit score for years, and you'll pay tax if the forgiven debt is over $600.
   
   
   4. When getting out of debt on your own, it’s all about desire and commitment. Honestly, if you have those two things in your arsenal you will achieve results. It is entirely possible, but will take some time and a lot of effort. You will also have to change your spending habits, which is the hardest part of the entire process.
   
   
   
   

If you need help going the DIY route, or you’d like someone to do the work for you, don’t forget to contact us by filling out the form or giving us a call at 1-866-332-9312. And there’s always our debt services. Good luck!

Credit Counseling Services For The Consumer

Consumer counseling services are always a great route to take in your DIY attempts to get out of debt, however, it’s important to read the small print and keep in mind that your credit will not be fixed overnight.

Consumer counseling basically aims to lower your interest rates with your creditors while counseling you on how to manage your finances. A credit counselor will sit down with you a specified number of times a week or month, work with you on your finances and where you should and should not be spending money, and will negotiate with your creditors to lower your rates and your payments.

The downfall to all of this is that they do not negotiate your ending balance, and though your monthly payments may lower and your interest rates might look better, your ending balance will only continue to rise and you will be stuck once again.

Most consumer credit counseling services these days prey on people who have never even been late on a credit card payment, but are unhappy with their high interest rates. These days, who isn’t unhappy with their credit card rates? Where the credit counselor will get you is when you agree to listen to their plan, they suck you in and offer you debt settlement services instead, with outrageous upfront fees.

The shadiest part of the credit counseling route is that many companies get a “kick-back” from the lender themselves! Here’s the rub: according to MSN Money, most of the counseling services' fees are paid by the lenders themselves, which send back to the services a portion of the payments received. This has led some critics to charge that credit counseling is just a tool of the lending industry.

So, when do you need credit counseling? Almost never, in our opinion. If you are making your credit card payments on time, then there is no reason to answer the call when the credit counselor hits you up. Even if you have fallen behind slightly, it’s no reason to look to counseling. In most cases, you can go the DIY route and get yourself out of debt rather than use credit counseling.

If you are considering counseling, look for the red flags. Make sure that the company you’re researching is accredited with Association of Independent Consumer Credit Counseling Agencies or ACCORD. Also, if you are charged anything over $15 for the initial set-up fees, run for the hills. They are likely going to charge you for every little thing and take most of it for themselves if they start out by charging you ridiculous fees.

Finally, if the credit counselor makes any promises regarding your balance, interest rates, or credit score, turn around and walk out of his office. Every credited and respectable company knows that promises and guarantees are unfortunately not a part of the industry. While any debt settlement and negotiation company would love to tell you that they can make promises regarding your final balance and repayment time frame, in reality it just cannot be done. There is no way to guarantee results when it comes to negotiating debt, simply because there are too many parties involved to guarantee a final outcome.

For a credited debt settlement company, visit http://ping.fm/l71dv.

Cash For Clunkers Rejections

Cash for Clunkers was the incredibly successful program that offered consumers a rebate of up to $4,500 to turn in their ‘clunker’ for a more fuel efficient car. The program boomed car sales for a short time and gave the failing car companies some much needed (short-term) relief. Now that the program is over, consumers still have a multitude of questions regarding how the money was paid out, how it is going to be paid to those waiting, and who got rejected.

60,000 clunkers rejected from the Cash for Clunkers program?

This is the rumor that’s circulating around the internet the most today. For some reason, consumers are raiding Google to find out about these 60,000 rejected clunkers and how that could happen in a program that was suppose to help everyone. Well, it’s not all it seems to be. While the bloggers are having a field day with this one, the truth takes a little more research.

The government has paid or cleared $2.38 billion of the $2.87 billion worth of dealer vouchers submitted, the Transportation Department said today in a statement. The agency said it has rejected 8.8 percent of applications and is still reviewing 8.1 percent. (Bloomberg)

The truth of this matter is that the dealerships themselves dropped the ball somehow by not information their consumers of all the rules, and now they have the opportunity to make up for it by resubmitting applications. The main reason for many applications being rejected was due to minor details of the rules not being followed such as late car registration payments. Sure, it will take longer for consumers to get their Cash for Clunkers rebates, but the answer to this question is not exactly what it seems.

What do you do if your dealership has to resubmit?

If you are one of the many who purchased a vehicle under the Cash for Clunkers program from a dealership that has been rejected and must resubmit their application, all you can do is wait. If your waiting, and your dealer asks for you to pay in full for the car when you have not yet received your rebate, they are breaking the rules of the program and you have the right to turn them in.

How much did the program help the car companies?

While overall sales are still down compared to recent years, the Cash for Clunkers program has given car companies hope that things are turning around. For a few weeks, their numbers were up, and although they’ve dropped back down, it was encouraging to see consumers are still in need of new cars and are willing to buy if the incentives are there.

While foreign car companies did better in car sales, GM, Ford, and Chrysler accounted for almost 39% of the total 690,000 cars purchased through the program.

A preliminary analysis of the program by the Obama administration said that third-quarter economic growth has been 0.4 percent higher because of auto sales in July and August. In addition, G.M., Ford and Honda all announced that they would increase production at some United States plants because of the increased demand generated by cash for clunkers. (New York Times)

How are consumers feeling about the program?

Eight in 10 consumers said they were satisfied with the way the program was run with another 55 percent of consumers wishing that the program could be reinstated.(Reuters)

What cars were the top sellers?

The top four purchased cars under the Cash for Clunkers program was the Toyota Corolla, Honda Civic, Toyota Camry and Ford Focus. All foreign makes, these cars had the best fuel economy. The Ford Escape was ranked 5th, while the Honda CRV was 6th. The Chevy Silverado, far from a fuel efficient vehicle, ranked in the top ten, as well as the For F150.

For more information regarding debt, feel free to visit http://www.thedebtsettlementprogram.com or call 1-866-332-9312.

Consumers Learning To Balance Recession & Credit

While the economy was taking a tumble, and housing sales were plummeting to all time lows, consumers were struggling to make their credit card payments, in most cases choosing not to pay at all in order to keep food on the table or save their home from foreclosure. During the first quarter of this past year, credit card delinquencies were up to record-breaking levels.

Although people are still struggling, the good news in all of this economic mess is that consumers are starting to take back control. Like the tortoise and the hair, many credit card holders are learning the importance of making payments and regaining some financial dignity. Even as the economy slugs along, the most recent credit card delinquency numbers are showing a slight improvement.

Credit Card Delinquency Improvements

After five straight months of record highs and hurt credit card consumers, things might be turning around, according to Reuters.

Fitch's (Fitch Ratings) prime credit card charge off index, which measures the portion of credit card securitized loans that companies do not expect to be repaid, fell to 10.55 percent in July from 10.79 percent in June. (Reuters)

The first quarter of this year was extremely rough for homeowners and credit card holders. The record breaking credit card delinquency numbers show that without a doubt. But, even though the market hasn’t turned around yet, homes are still being foreclosed on all over the nation, and the unemployment has risen to over 10 percent at times, consumers are somehow managing to stay on top of things.

What is interesting to note is that as the credit card delinquency numbers improve slightly, the average credit card balance has literally stayed the same. Consumers are still using their credit cards to pay for the essentials, but are somehow finding a way to make those minimum payments at the end of every month.

This trend might not be a good sign. Sure, credit card holders are at least making their minimum payments and keeping things in order, but, according to the Associated Press, they are still using the credit to take care of groceries, bills, and gas, the very things that will get them into trouble with the credit card companies.

So, why are the credit delinquency numbers improving?

"Consumers are clearly managing their credit card obligations and lenders are clearly managing the risk in their portfolios," said Ezra Becker, director of consulting and strategy in TransUnion's financial services group. (AP)

Whether it’s the consumer or the credit card companies that are making changes to better delinquency numbers is unclear. But, what is clear is that something is slowly turning around, and with the new Credit Card Act that is taking effect it will be interesting to see how things end up in the next few quarters.

For more information on credit card debt, visit http://ping.fm/1qHeV.

Credit Card Act Might Not Be Enough Help For Consumers

The new Credit Card Act may not be enough to save consumers from some scandalous practices. At least, that’s what the NY Times is saying. We talk a lot about the Credit Card Act here, and for the most part I feel it’s a great thing for consumers. It’s supposed to lead to more transparency in the industry, which is much needed. But apparently it doesn’t do enough.

Research by the credit scoring company FICO shows that in the 12 months ended in April, 58 million people had the amount of available credit on their cards reduced. (NY Times)

Everyone in the industry new that things were going to change dramatically before the Credit Card Act went into effect. Rates were going to be raised and limits were going to be dropped. Fortunately for the consumer, rates cannot be raised without warning anymore, but credit limits can be dropped at any time and for any reason.

If a credit card company lowers your rates, they are lowering your overall available credit which, in turn, can lower your credit score. They will lower your available credit for any reason, or no reason, and you probably don’t have any retaliation other than to close your account, which also might affect your credit score.

So, why didn’t the White House think of adding limitations on the act of lowering your available credit? According to the NY Times, the new Credit Card Act is really just a revised version of the old Truth in Lending Act of 1968. In the late 60’s, credit card companies did not just randomly lower your available credit, so there was no mention of it in the bill. In the last years, when the rewriting of the old bill was taking place, this still wasn’t an issue.

Unfortunately, now it is a big issue. Out of the 58 million consumers who had they’re credit limits reduced, many of them had better than average credit scores and kept a low balance on the credit card. Many who played by the rules were penalized, while at the same time the economy was failing and they were losing their jobs and homes. It’s been a rough year for consumers.

For more information on credit card debt settlement, visit http://ping.fm/2Yhsm.

Cash For Appliances

Cash for Appliances is expected to hit the market hard, but in a good way, just as the Cash for Clunkers program did. Now that the clunkers program is over, 690,000 American’s are driving around in brand new cars thanks to the $4,500 voucher. Under the Economic Stimulus Package, $300 million is going to each state as well as incentives to boost the Cash for Appliances program.

A few posts ago we talked about this program, and said that we’d keep you updated. Well, here are some updates. The Cash for Appliances program has spurred states to start programs of their own where your city will come and pick up old, but working, appliances and offer you another small rebate. All together, you could be looking at getting $250 back in rebates. When you consider the fact that you will save even more than that each year in your power bill, how can you say no to getting some new energy efficient appliances? They will pay for themselves within two years.

On top of the new Cash for Appliances program, many states think that this will boost revenue and create some new jobs for appliance pickups.

In Michigan, where 2008 energy legislation required utilities to cut electricity production by 5% a year, the program is exceeding expectations.

DTE Energy, parent company of Detroit Edison which serves 2.2 million electric customers in Detroit and its suburbs, collected more than 3,300 appliances since starting the recycling program at the end of June. It offers $50 per refrigerator or freezer and $20 for old window air-conditioner units.

"Today's appliances consume three times less than old appliances," says Steven Kurmas, president of Detroit Edison. "We're hoping to get rid of 30,000 by 2011." (USA Today)

For all the info you need on debt, visit http://www.thedebtsettlementprogram.com.

Teaching Your Kids About Credit Card Debt

Teaching kids about debt can be a difficult thing. It’s confusing to us adults. But, if you don’t teach your kids about debt who is going to? Back when I was in school we didn’t have any financial training classes, not credit card education or debt settlement clubs. I knew absolutely nothing about credit and debt, which is one of the reasons I got myself in a bunch of debt at an early age. And it’s the same reason my younger brother has followed the same path.

Teaching your kids about debt and credit cards is extremely important, and now, during these rough economic times, is the perfect backdrop to explain to your kids what debt is all about. According to Sallie May, the average credit card debt in 2008 for a college student was just over $4,000. If you don’t want your child to end up financially ruined by the time they graduate college, like most of us, start teaching them about debt now.

There are many ways to teach your child about debt and savings, and the simplest way is to give them a piggy bank and allowance. By teaching your child to save money, and the importance of saving money, you’ll be setting them on the right path. And, thanks to modern technology, there are some very cool piggy banks out there. Look around and get one that help kids count their savings and see where their money is going.

Giving your child an allowance allows them to understand the importance of working for their money and not getting money for free. By working for their money, and receiving it at the end of the week, much like a paycheck, your child learns the importance of setting a budget for what they might want, and for working extra for money they might be short of. This is a great way to get your child in the habit of budgeting and working for the things they need.

As they grow older, have a joint credit card that you allow them to use as you supervise. Or, have a prepaid or secured credit card where your child is only allowed to spend a certain amount. This way they will not go over their budget and will learn the importance of keeping track of their finances. Try to find a secured credit card where you can put a low balance on it, doesn’t have large yearly or monthly fees, and has a low interest rate.

Pick out a credit card together. This is a great way to teach your child about interest rates, which I have to admit I don’t even fully understand at times, and the extra costs of having a credit card. By choosing a card together you’ll get to spend time together, and it will be a wonderful learning experience probably for the both of you.

For any information about debt settlement, visit http://ping.fm/mH14z.

Cash for Fridges

Cash for Appliances is the new Cash for Clunkers, but you don’t have to trade in your old washer and dryer. This time around, the stimulus package is offering consumers a rebate of between $50 and $200 for purchasing an appliance that Energy Star rated. The new program is to begin in the late fall, sometime around end of October or beginning of November, and is supposed to promote energy efficient purchases. With home sales beginning to turn around, now might be the perfect time for a program like this to work.

Of the $300 million assigned to this program, experts believe the bulk of it will be gone by the end of November.

“These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy,” Energy Secretary Steven Chu said in a statement announcing the plan. (Business Week)

According to the article, only 55% of the appliances purchased in 2008 were Energy Star rated, which actually surprises me because the amount of money that you save on your power bill every month more than makes up for the price of the appliance. If people just understood that energy efficient appliances pay for themselves, and then some, in no time at all more people would buy Energy Star rated appliances. Perhaps this Cash for Appliances program will push people in the right direction.

Many financial experts are truly hoping that this program will push consumer into buying and will add an extra boost to the economy. Appliance sales companies like Whirlpool and GE are struggling more now than ever. Last year appliance shipments were down 10%, and in 2009 they are already down 15%.

We’ll keep you updated on when the Cash for Appliances program actually begins, and how you can cash in.

For information on how to get out of debt during these rough economic times, check out http://www.thedebtsettlementprogram.com.

Credit Card Hacker Of The Century

The largest and greatest credit card scheme of all time has been shut down, and Albert Gonzalez, a 28-year-old from Florida, is probably going to be banned from computers for the rest of his life. A man who has been known as the “soupnazi” in internet circles, and who once worked as an informant for the U.S. Secret Service, made history with stealing account numbers from over 170 million credit cards!

Gonzalez’s story is an interesting one, winding from a lonely childhood where his computer was his best friend, to a “secret” job at a firm right out of high school, to a stint with the U.S. Secret Service. In 2003, Gonzalez was busted for a smalltime hacking job. The U.S. Secret Service saw some extreme talent in their suspect, and offered him a plea deal that included becoming an informant.

Gonzalez’ attorney claims that the government used him as a “machine” in order to find fellow hackers and bring them down. The attorney believes that Gonzalez’s computer addiction should have been treated by a therapist.

Now, this is where the story gets very interesting, and starts to remind me of the movie Hackers. It was sort-of a cult hit back in the day about a young man and his gang who have an affinity with computers and can basically hack into anything, anywhere, doing whatever they want. That was the life Gonzalez led from 2005 until he was busted.

Gonzalez reportedly threw himself birthday parties ranging from $75,000 dollars, used a cash counting machine to literally count the massive amounts of cash he had lying around, and lived the life of a bachelor in luxury by purchasing a beautiful condo.

Before 2008, authorities believed a scam in which he hacked 40 million credit cards was history making, until they learned the truth of his 170 million credit card scheme. Currently, Albert Gonzalez it sitting in prison where he only gets to use a computer when his lawyer comes to visit, and only to update paperwork and evidence for trial.

For information on credit card settlements, visit http://ping.fm/M88dq.

Credit Card Act 2009 Kicks In

Finally, some relief will be heading your way. If you’re in debt and trying to figure out which path to take, the federal government has attempted to relieve your stress. A few months back, President Obama singed the Credit Card Act, putting into legislation a strict attempt to alleviate the pressure that credit card companies place on consumers.

Starting Thursday, credit card companies must send out statements a full 21 days before payment is due. They must also send out notices 45 days in advance of rate increases, and give options for consumers who can’t afford the new rate hikes. In addition, credit card companies will no longer be able to raise rates or penalize consumers after late payments or exceeds a credit limit without giving notice.

An extremely positive new page in the Credit Card Act 2009 requires credit card companies to give consumers the option to remain at their current interest rate and slowly pay-off their balance when a rate hike is on the way. You may have noticed that during the past few weeks your credit card company has raised you rates a bit. This is because they’ve all been preparing for this day and for the Credit Card Act 2009 to kick in, because now you have the right to refuse to pay the new rates and choose to pay-off your balance with your old rate.

However, until February 2010 credit card companies can raise rates to whatever they like. There is not yet a cap on interest rates, which means either you pay-off your credit card at the old rate, and take option A, or you can tough it out and pay the new rates, option B. In February of next year, the part of the Credit Card Act 2009 that requires interest rate caps will kick in, limiting what credit card companies can charge you each month in interest.

The loophole to this legislation is that many credit card companies have switched their fixed rate customers to variable rate ones in order to go around the Credit Card Act. As of today, any fixed rate customers must get the rate hike warning, however, if you hold a variable rate card they are not required to warn you about hikes.

Credit card companies are doing whatever they can to make this process hurt everyone. They have already begun to lower credit limits, tighten approval requirements, and toss out certain card holder privileges and perks. They are also claiming that available credit will decrease, and the cost of borrowing will increase, since they will now have to be more careful about whom they approve.

Word to the wise; check your credit card statements closely. If you haven’t in the past month, you might see some new things on there. Give you credit card company a call and discuss the new changes with them. And if you’re in debt and looking to get out, check out http://ping.fm/QQqhK.

Your grandparents and their credit card debt. http://ping.fm/Fq7s1

Your grandparents and credit card debt. http://ping.fm/icUad

Grandparents and Credit Card Debt

Are your grandparents using their credit cards more than usual? According to a new study released by Demos details the chilling effects this economy has had on our senior citizens. While the college grads are struggling to find their first job in the real world, and parents are struggling to keep food on the table, our grandparents are using their credit cards more than any of us for the essentials.

Low- and middle-income consumers 65 and older carried $10,235 in average card debt last year, up 26% from 2005. Card debt for all borrowers surveyed rose 3% during that time, to $9,827. (USA Today)

And, to heat up this conversation, this health care crisis that we find ourselves in is to blame for most of the credit damage done to seniors. Our grandparents are using their credit cards for groceries, gas, and ridiculous medical bills that Medicare can’t cover.

While the cost of living is rising dramatically, Medicare and Social Security just isn’t able to keep up, and it’s our grandparents that are suffering. From 1997 to 2007, our grandparents were falling deeper into debt than any other demographic in the country, and that was before the recession hit. Today they are deep in debt and deep in trouble.

"You see a great increase in credit card debt for people right near retirement age," says Craig Copeland, a senior research associate at EBRI. "They're probably still working, but they're also the most likely to become disabled," which could force them to rely on credit cards. (USA Today)

There are two huge problems with this situation. First, who is going to be left to pay off this insurmountable debt when the grandparents are gone? Probably their remaining loved ones, which will only put more financial strain on the family.

Second, interest rates are at an all time high for credit cards right now, averaging near to 20%! These rates will continue to rise until the new legislation kicks in that gives debt holders more options when credit card companies want to raise their rates.

For more information on credit card debt, visit http://www.yourdebtnegotiator.com.

College Students and Credit Cards

Students and their . I think that statement alone makes every parent cringe. Every college student that I knew during my college days had a credit card and knew how to use it. How else do you get by? Sure, you might work part-time, but at minimum wage that doesn’t get you very far. There’s always more pizza to order and more bars to hit.

“The average senior who graduated in 2008 had more than $4,100 in credit card debt, up almost 45 percent from 2004,” Gov Pat Quinn of Chicago said on Tuesday when he signed a new credit card law.

Under the law that becomes effective Jan. 1, credit card companies won't be able to give out T-shirts, gift cards or other freebies to entice students to sign up. Also, any Illinois college or university that signs a deal agreeing to market credit cards to students must provide financial education so students understand the consequences of using credit cards, according to the Chicago Tribune.

Of course, the credit card companies hate this new legislation and did everything they could to oppose. At the time the Tribune printed the article, American Express and Mastercard had not returned any calls. It’s not surprising. Credit card companies often remind me of the tobacco industry. Perhaps they work in cahoots behind the scenes, scheming up how they’re going to get their customers while they’re young.

The Tribune article goes on to talk about a sophomore who has maxed out her $5,000 credit card twice, paying off each time. It’s easy to be persuaded by credit card companies when they show up to campus with their school spirit, their special-just-for-students credit card with their school colors and mascot, and their free stuff. I mean, for a freshman who has never lived on their own or ventured out into the real world, this looks like free money!

When it’s Welcome to Campus Day, or Club Day, there are the credit card companies, lined up with the rest of the school clubs trying to get your attention with flashier set-ups. Then they get the kids with their low-interest-while-your-a-student plans, which only entices kids to spend more and pay the minimum so by the time they’re out of school they’re in debt thousands of dollars.

Thanks to the new law, the credit card companies and their freebies will be no longer. It’ll be sad to walk down the main campus and not see your friends from Mastercard sitting there with smiles. The best part of the new law is the financial education that students must go through if the campus decides to let credit card companies market on campus. Teaching the kids about what a credit card really is, and how to budget their lives while in college is a remarkable idea that probably should be a mandatory class for every freshman.

For more information regarding credit card debt, visit http://ping.fm/1x8YX.

Students and credit cards, a lethal combination. http://ping.fm/Bj1Hm

Do you close your credit card after debt settlement? We have the answer. http://ping.fm/t0wJS

Do You Close Your Credit Card After Settlement??

To close or not to close, that is the question. Whether it is nobler to close you credit card accounts after or not remains a burning question for many consumers. But the question is more than just a financial concern, it’s a habitual and mental concern as well. Many consumers have a relationship with their credit card, which is one of the reasons they got themselves into debt in the first place, and ending that relationship, which was probably of many years, can be extremely difficult.

Settling your credit card debt is a financially freeing experience, but don’t run off to celebrate by using your credit card to pay for the alcohol. You and your credit card have been through some great times together. I mean, there was that cruise in the Bahamas a few years back, those shopping excursions where you got the little black dress that made your ex jealous, and the late nights treating your friends to another round.

The long relationship that you had with your credit card was about more than just money. That relationship was about celebrations and new beginnings. Your credit card relationship probably got you through some really tough times as well.

For many years you and your credit card were like peanut butter and jelly. But, when the time comes to possibly say goodbye, it’s not as easy as many say.

After you settle your credit card debt and pay off your balance, it’s hard to decide whether to close your credit card account or keep it open for “emergencies.” That’s what we all say. The credit card is in my wallet strictly for “emergencies.” Sure, I can totally understand that reason, but needing a pair of shoes for a new outfit does not constitute an “emergency,” as much as you would think it does.

So, what do you do with your credit card after settling your debt? You keep it open, but you cut it up and throw it away. Do not close your account. If you were to close your account immediately after settling your debt, you’ll be running the risk of a longer credit score recovery period. By closing your credit card account, you will be brining your total available credit down by probably a huge amount. With your total available credit lowered, your credit score will take longer to recover. The more available credit that you have, and haven’t spent, the more likely you are of getting your credit score back up.

I know, it sounds like a bit of a catch-22; keep your account but trash your card. And cutting up your long-term relationship with this credit card might bring tears to your eyes. But, trust me, if you want your credit score to recover, and you want enjoy your financial freedom, toss out the card. Old habits die hard, and there will be no 2am phone calls or run-ins at the club in this relationship. Cut up your card, and that way you can keep the account open without the urge to spend.

For more information, check out http://ping.fm/g0pVB.

Be mindful of where you use your credit card. They're watching. http://ping.fm/aeNXh

Be mindful of where yo uuse your credit card. They're watching. http://ping.fm/YSJxY

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Allegro Gets Busted

Allegro Law Gets Busted!!

We’ve been talking a lot lately about fraudulent debt settlement companies and how the Better Business Bureau and the Federal Trade Commission are cracking down on “phony” credit debt collectors and debt settlement programs. Well, here’s another story for you that is tearing up the internet.

According to one of our favorite sites, GetOutOfDebt.org, The Attorney General’s Office and the Alabama Securities Commission are suing a Prattville attorney and the companies he is operating in what is alleged to be one of the largest debt settlement schemes in the nation involving approximately 15,000 customers and millions of dollars nationwide.

According to the complaint, Allegro and Nelms have solicited and obtained clients from all 50 states, many of whom made their selection believing they would be represented by a law firm. However, because Nelms is not licensed to practice law in any state other than Alabama, these consumers were deceived. Furthermore, Alabama consumers who believed they were hiring a law firm to represent them were also deceived, because Nelms and Allegro were actually serving merely as a conduit to refer cases that were handled by a third party, Americorp, which is not a law firm. In addition to these deceptive practices, Nelms and Allegro were not licensed by the Securities Commission, as required to conduct debt payment services in Alabama.

The complaint alleges that defendants have violated the Deceptive Trade Practices Act and the Sale of Checks Act. The Alabama Deceptive Trade Practices Act is designed to protect consumers by prohibiting business from committing a variety of deceptive practices including engaging in any “unconscionable, false, misleading, or deceptive act or practice in the conduct of trade or commerce.” The complaint alleges that the defendants violated the Deceptive Trade Practices Act as a result of various deceptive business practices and various false, misleading, and deceptive representations made to consumers. Under the Sale of Checks Act, any person engaging in a business that receives money as agent for obligors for the purpose of paying such obligors’ bills, invoices, or accounts must obtain a license from the Commission prior to conducting business in Alabama. The complaint alleges that defendants have breached their statutory duty to obtain a license pursuant to the Sale of Checks Act prior to engaging in the debt payment services business from their office.

That’s a lot of legal lingo, but basically what Allegro did, of the many things that Allegro did, was to advertise themselves as debt lawyers around the country, when in fact they only had the right to advertise their credentials in Alabama. They also charged outrageous fees and continued to charge these fees throughout the “debt settlement” process while clients saw no return and no settlement. They weren’t saving to pay off their unsecured credit debt, and they weren’t contributing to anything constructive to get them out of debt. Allegro was simply charging them fees, and keeping the money as profit.

Currently, Allegro Law is one of the top ‘debt settlement’ searches on Google, probably because there are thousands of Allegro victims trying to figure out how to get their money back.

Finding reliable and accredited debt settlement companies is a difficult task, especially in such a fraudulent ridden industry. But if you know what to look for, and the questions to ask, you won’t be stuck in a situation like the clients of Allegro. The most important step that you must take when thinking about debt settlement is do your research. If you can look the company’s history and track record up, then you should be able to determine if they’re trust worthy or not.

A huge indicator of whether the company is fraudulent or not is to find out of the company is registered with USOBA (United States Organizations for Bankruptcy Alternatives), a highly trusted organization that only registers reliable debt settlement companies, or Dun & Bradstreet, another organization that keeps track of many business.

Finding the right debt settlement company might take a little hard work, but when you are living financially free, it’ll be worth it.

For more information on how to find the best debt settlement programs, visit http://www.thedebtsettlementprogram.com.

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BBB Warns of Fake Debt Collectors

Protect yourself from phony debt collectors. The Better Business Bureau has sent out a massive warning to Chicago and Northern Illinois, letting people know about the recent rise is fake debt collection attempts. Apparently some fraudulent companies have gotten ahold of some very personal consumer information and is using that information against them.

Phony debt collectors are aggressively harassing consumers who have used a payday advance service in the past. The debt collectors have obtained vital information such as Social Security Numbers, maiden names, addresses, and phone numbers and use these items to claim their intentions.

The phony debt collector will call you, tell you what you owe, when you must pay it and what kind of legal consequences await you should you chose not to pay. They seem legit in every aspect, and if you’re stuck on the phone with them, they will not take no for an answer. This is when you should start to get suspicious.

Knowing what to ask and what the answers should be is a great defense to have when dealing with debt collectors, especially when so many of them are phony. You should instantly be suspicious the moment a debt collector calls you, especially if you live in the affected areas and have used a payday advance service in the past.

According to the Chicago Sun Times, if you are suspicious of a debt collection phone call, do the following:

• • Ask the debt collector to provide official documentation in writing.

• • Not provide or confirm bank account or credit card numbers or other personal information over the phone until the legitimacy of the call is confirmed.

• • File a complaint with the BBB and the Federal Trade Commission if they suspect they're being scammed or the caller is abusive.

For more information on phony debt collectors and debt negotiation visit http://www.yourdebtnegotiator.com.

The FTC Is Getting Serious About Fraudulent Debt Negotiation Companies

A new set of regulations is about to hit the fan, and credit debt negotiation companies are starting to get nervous. The Federal Trade Commission is looking into legislation to keep credit debt negotiation companies in line.

Many debt negotiation companies are extremely nervous about the new proposed regulations, fearing that it will hurt their businesses and limit their negotiation services.

''Our goal is to try to get people out of debt, but in a sense this would make us a creditor as well,'' said Wesley Young, the legislative director for The Association of Settlement Companies, a trade group for the industry. He noted debt settlement can take two or three years, leaving companies providing lengthy services without taking in any revenue, and possibly then being left holding a bill if the consumer doesn't pay.

A case involving numerous creditors and substantial debt could require numerous phone calls for settlements to be arranged, Young said. ''We think this will hurt the service we provide to the consumer and they'll be less successful in the programs.''

The proposed regulations would require debt negotiation companies to be completely transparent, sharing with clients the estimated time it would take to reach a settlement, the affects on their credit score, and the fact that a settlement might never be reached. (Check, check, and check). The debt negotiation company would also have to make clients aware of the fact that creditors will still call and will still harass the consumer. (Check).

The proposed regulations would also prohibit debt negotiation companies from charging any fees before services have been performed (check), and would not allow them to make unreasonable debt settlement estimates just to obtain clients (check).

These seem like realistic guidelines for any respectable and reliable debt negotiation company to follow, and a few of them currently are already adhering to similar guidelines, but many in the industry foresee serious challenges.

The intent of the rule may be well meaning, said Gerri Detweiler, a credit adviser for Credit.com and an expert on debt collection. But she is concerned that the rules might be ''so overreaching that nobody who provides a legitimate service would get into that business,” according to the New York Times.

The new debt negotiation regulations were initially spurred by the amount of complaints filed against companies charging upfront fees for services not yet complete. According to the Consumer Federation, who did the most recent study on consumer complaints, upfront fees were the greatest debt settlement complaint.

Many companies, like The Debt Settlement Program and Your Debt Negotiator, already offer programs that charge no upfront fees. Unlike most debt negotiation services, these companies are prepared for the changing industry and have stepped up their efforts to be ahead of the game.

Consumer Complaints On The Rise

While the recession is technically over, or coming to an end, consumers are doing whatever they can to get every penny they are owed. Not only are people finally understanding the value of money, they are fighting to keep creditors off their backs. Consumer reports has found that complaints aimed towards debt collections has risen dramatically.

According to the NYTimes, consumer complaints is rising while the funds for the customer service staff that deals with all of those calls and complaints is falling. Staff cuts have led to the loss of the investigative tools used to keep customers happy and solve complaints.
The cuts led to staff reductions, program eliminations, fewer consumer education materials being produced and distributed and loss of investigative tools and outside experts. Agencies said budget and staffing issues remain their biggest challenge.—NYTimes

Complaints about home mortgage companies, foreclosure scams, and debt collection services are at the top of the list of consumer complaints. Harassment from debt collectors is number three on the list. It is first on the list of the type of complaint, mostly extreme harassment. One report tells of a store owner harassing the young child of a debt holder, even telling the child his father would be arrested if he didn’t pay his debt.

Consumers are taking a stand against harassing creditors now more than ever. If you are feeling harassed by creditors and are struggling to get out of debt and stay out of debt, give us a visit at http://www.thedebtsettlementprogram.com. We are literally breaking records with our new program, The Simple Plan. It’s a get out of debt program that charges absolutely no upfront fees!

After you report your creditor and take a stand against harassing collections agencies, give us a call and settle your debt!

Cash For Clunkers Out of Cash

For a program that was supposed to last until November, Cash for Clunkers is quickly, and I mean light-speed-quickly, running out of voucher money. The $4,500 that consumers were supposed to get when they trade in their clunker is not guaranteed anymore.

On Thursday evening, car dealerships across the country were told to stop the Cash for Clunkers program, only a week after the program began. While there’s still confusion as to whether the money is there and consumer will get their voucher, or whether the program is in fact suspended, it is known that the $1 billion that was allotted for the Cash for Clunkers program is just about dry.

The White House said on Friday that “cash for clunkers” was still alive, Matthew L. Wald of The Times is reporting. Robert Gibbs, a White House spokesman, said the administration was looking for ways to continue the program. “If you were planning on going to buy a car this weekend using this program, the program continues to run,” he said. “If you meet the requirements of the program, the certificates will be honored.” Mr. Gibbs said the administration planned to meet with Congressional leaders to find ways to save the program. By the way, the “money meter” has been taken down from the C.A.R.S. Web site. —NYTimes

According to many sources, including the Phoenix Business Journal and the Detroit Free Press, congress is considering pumping $2 billion more into the Cash for Clunkers program to keep it alive. The money will come from unused recovery funds, and congress is hoping to get a vote by today (Friday).

Unlike many economic-growing ideas that have come out of congress and the white house, this is one of the few that has actually worked. Other voucher and tax rebate programs for energy efficient technologies has also been effective.

So, the real question is this Cash for Clunkers program helping? The answer: a little bit. Many car companies are seeing a rise in sales as compared to last year, and Ford Motor Company is reporting a “dramatic” rise.

For more information on getting out of debt, visit http://www.thedebtsettlementprogram.com.

Credit Card Companies Get New Rules

Thanks to Obama’s signature on the Credit Card Accountability, Responsibility and Disclosure Act, your credit card company absolutely has to give you a 45 day notice before raising your interest rates. The downfall to this great news is that credit card companies will definitely be raising your interest rates before the rest of the Act goes into effect next year. For now, there is no interest rate cap. In a year, there will be.

As of August 20, your credit card company must notify you of the impending interest rate hikes, and must also give you some options. You can either pay the higher interest rate and just go with the flow. If you have a low balance on your credit card, it might not really affect your monthly payments, but it might affect your credit score if you keep a small balance on the card. Keeping the balance at around 20% could be a good thing for your credit score, if you can afford to do that.

Your credit card company must also give you the option to pay off your current balance at the current rate, before the interest rate rises to something outrageous. This might seem like a great option, considering your credit card company will probably take advantage of the no cap, but it also might affect your credit score negatively.

According to USA Today, paying off your balance at the old rate usually ends up in a closed account, and a closed account is one less account reporting positively to the credit bureaus for you. When you close your credit card account, your total available credit shrinks, which could possibly bring down your credit score because, even though you paid off the account and have no negative reports from them, you also have no positives because you now have less available credit to your name.

It’s really a catch-22, because who wants to pay the outrageous interest rates when you are responsible and making your current payments on time? But, these days who wants to affect their credit in any negative way? So, what do you do?

It depends on your balance, and if you think that you can afford to keep paying it when they raise the interest rates. You have 45 days to come to a decision, so weigh out your options and decide whether your credit is a work-in-progress and you need to keep it as active and positive as possible, or whether your credit is already steady and high and you’re just not worried about it.

For more information regarding debt settlement, visit http://www.yourdebtnegotiator.com.