Debt

Cardholders swiping debit cards more as credit card use falls

Sarah Coffey Sep 9th 2010 @ 6:00AM EST Filed Under: Credit, Debt, Credit Cards, In the News

Consumers in the U.S. are keeping their credit cards in their wallets in favor of using debit cards to avoid building up more debt, according to a new report by Javelin Strategy & Research.

Key findings of the report:

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Secrets of the debt-collection biz uncovered by a reporter

Martha C. White Sep 7th 2010 @ 6:00PM EST Filed Under: Debt

secrets of the debt collection biz book - past due stamp

In 2008, after a 20-plus year career as a business journalist, Fred Williams made what might have seemed like an unlikely career move: He took a leave of absence and applied for a job as a debt collector. Williams wasn't having a midlife crisis; rather, he wanted to see if the collection industry's claims of being law-abiding, professional and decent were true.

Williams got a one-of-a-kind, inside look at the collections industry in America today, which he turned into a book, Fight Back Against Unfair Debt Collection Practices: Know Your Rights and Protect Yourself from Threats, Lies, and Intimidation. He worked for what he describes as a mainstream, well-known firm (although he keeps it anonymous in his book) in the Buffalo, N.Y. area. And while some of what Williams describes -- the drab building, hackneyed motivational speeches and rows of ancient computers -- will be familiar to anyone who's ever held a Dilbert-esque office job, much of what Williams uncovered is surprising and disheartening.

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How do I get out of a home I can't afford? Help Me WalletPop!

Jean Chatzky Sep 3rd 2010 @ 7:00AM EST Filed Under: Borrowing, Budgets, Debt, Family Money, Real Estate, Consumer Ally

If you're having a problem with a business, Consumer Ally can help. Write us at HelpMe@WalletPop.com.

Q. We bought a house in Tennessee, and we are deep into debt. We want to know if we can just ask the bank to take back the house? And would we owe the bank money? We have two car payments we are having trouble paying, we are up to date on all our bills, but have nothing left to live on.

We bought the house this past November and received the tax credit. How does that work? Does that have to be repaid too? We are planning to meet with someone from consumer credit counseling, but we are so stressed from our bills. We are both retired, and we already filed bankruptcy in 2005.

Anonymous
Lenoir City, Tenn.

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Americans are reducing debts but need to monitor spending better

Martha C. White Sep 2nd 2010 @ 2:00PM EST Filed Under: Credit, Debt, Credit Cards

Here's some news from the silver-lining department: A new poll shows that the recession has made Americans more aware of their spending habits and instilled in us a desire -- if not necessarily the funds -- to pay down our debts.

According to a poll of 3,201 Americans recently conducted by the National Foundation for Credit Counseling , slightly more than half of all respondents said the recession has inspired them to take steps to pay down their debt.

"Consumers have apparently become uncomfortable carrying debt, realizing how detrimental it can be to their overall financial well-being, and have gotten serious about doing what it takes to pay it off," Gail Cunningham, vice president of public relations for the NFCC, said in a statement that accompanied the poll.

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Which students are best at paying back college loans?

Evan Minsker Sep 1st 2010 @ 4:30PM EST Filed Under: Money College, Debt

Times may be tough, but some students are still managing to make payments on their student loans. The U.S. Department of Education just released an extensive list of colleges where students have the best -- and worst -- track record of repaying their loans -- and some interesting trends have emerged.

U.S. News and World Report sorted through the list, which ranked 8,412 colleges, job training programs, and graduate schools across the country. One finding: students at nursing schools and institutes of technology are among the most diligent about paying their student loans. Among the top 20 colleges on the list, are the California Institute of Technology (CalTech) and Medcenter One College of Nursing located in Bismark, North Dakota, both of which saw more than 90% of students repay their loans in 2009.

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Beyond spent: The ways women buy dangerously on impulse

Vera Gibbons Sep 1st 2010 @ 7:30AM EST Filed Under: Debt, Shopping

Sure, everyone's watching their spending -- but in some areas, women in particular are blowing it. "There is some dangerous impulse buying going on, and it's being driven by fear, and our obsession with buying bargains," says Kit Yarrow, professor of psychology and marketing at Golden Gate University. She says we overindulge at warehouse clubs, outlets ... and, most predominantly, here:

Sample Sales
"People are just buying stuff for the label even though what's on sale may just be slow-selling merchandise, irregulars, liquidation of a previous season, overstock, or items that buyers didn't want," says Kathryn Finney, author of "How To Be a Budget Fashionista: The Ultimate Guide to Looking Fabulous for Less." "You're better off paying full-price for something you'll wear all the time than half price for something you'll wear once, or not at all."

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Strategies to pay off that credit card debt once and for all

Geoff Williams Aug 27th 2010 @ 5:00PM EST Filed Under: Debt, Family Money

While most of the economic news out there isn't too encouraging, here's something positive to think about: The amount of debt Americans owe on their credit cards is dropping.

In fact, it's at its lowest level in eight years, according to TransUnion, one of the nation's largest credit bureaus. The average amount that people owe on their credit cards is currently $4,951, down from the $5,719 it was a year before. In addition, more borrowers made payments on time in the last quarter compared to the year before.

If you're one of those Americans who has a mountain of credit card debt that you'd like to make into a molehill, this is as good a time as any to rethink or re-tune your debt reduction strategy. Take a look at the following list of tips offered by a few credit experts. We bet you'll find a few tips that will help you pay down your debt faster, even if your funds are limited.

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Warning issued over bogus payday loan debt collector calls

Linda Doell Aug 26th 2010 @ 10:31AM EST Filed Under: Debt, Consumer Ally

If a debt collector calls and threatens to sue or have you thrown in jail unless you immediately authorize a payment from a bank account, hang up because it's a scam, says Illinois Attorney General Lisa Madigan.

Madigan has issued a consumer alert warning people to be on the lookout for scammers posing as payday loan debt collectors. They call and threaten either a lawsuit or even arrest unless a payment is made. The state has seen a rise in consumer complaints of these bogus collection calls in recent weeks. In most cases, the callers already have some personal information about the consumer, including a place of employment and Social Security number. They also say they have the consumer's bank account number on file and ask to confirm the number.

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5 ways to convince the bank you deserve a (better) home loan

Tara-Nicholle Nelson Aug 26th 2010 @ 9:52AM EST Filed Under: Debt, Family Money, Real Estate, Credit Reports, Mortgages

Banks are experiencing Post-Traumatic Stress Disorder from the foreclosure crisis -- big time. They are painfully aware that loose lending kicked off the nasty economic domino effect that ended in millions of foreclosures, and billions of dollars in lost real estate wealth as a result.

We're all aware that, as a result of this mortgage PTSD, banks have raised the bar on what it takes to get a home loan. They know the riskiest borrowers are the ones whose income and assets were undocumented, and those who had no skin in the game because they hadn't put down a down payment. These are the folks who were the most likely to lose or walk away from their homes when the values plummeted.

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