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April 5, 2010

Debt Settlement Nationwide Rolls Out New Debt Relief Program

Author: admin - Categories: Credit Card Debt Articles, Credit Market Updates, Debt Relief Tips, Debt Settlement News, Featured Debt Articles, Featured Debt Relief Companies, debt relief

The California debt relief company, Debt Settlement Nationwide announced a new debt relief initiative to help consumers find the path to debt freedom.  With so many consumers getting behind on credit card bills,  a better solution for debt relief is in demand.  Debt Settlement Nationwide  announced that their debt reduction option to help people get back on their feet their financially.  With bankruptcy laws and lending tightening considerably, consumers look to debt settlement to take the pressure off of the high rate burdens that go hand in hand with unsecured debt.  See the original blog post online > New Debt Relief Programs

August 17, 2009

American Consumers Charged the Credit Card Debt

Author: admin - Categories: Book Reviews, Consumer Debt News, Credit Card Debt Articles, Credit Market Updates, Featured Editorial, Published Debt Relief Articles, credit counseling - Tags: , , , , , , ,

Richard Geisst, a Manhattan College finance professor and former investment banker published a new book, “Collateral Damaged: The Marketing of Consumer Debt to America.” In the book, Geisst traces America’s credit history and finds it riddled with sleepy regulators, congressional nit-wits and sinister financial firms making euphemistic lures to consumers. “A credit card offers $10,000 of credit, not debt. It has a friendlier ring,” he writes.

Consumer debt is at an all-time high, exceeding $2.5 trillion, or $8,000 per person, making it as American as apple pie and apparently equally tasty. But The Great American Debt Machine, as Geisst calls it, is hardly new. Sears established its consumer credit operation nearly 100 years ago, and automobiles have been sold “on time” since 1916. The American debt machine really began roaring in the ’20s, when consumer debt doubled. But fewer than 20% of the population bought anything on credit then.

Credit cards hit the scene with Charg-It after World War II, followed by Diners Club and American Express. Diners Club and American Express required payment in full, however, so their credit card holders couldn’t get in over their heads. Plastic as we know it began about 50 years ago, with Bank of America’s BankAmericard (now Visa) letting card holders finance purchases over time, paying interest on unpaid balances.

Geisst says there are several significant factors beginning in the 1980s played a major role creating the current financial chaos:

o •Variable-rate credit cards and adjustable-rate mortgages shifted credit risks from lenders to borrowers.

o •Financial firms gleefully packaged and traded their debt, making credit easier to obtain than at any other time in history.

o •The Tax Reform Act of 1986 abolished the deductibility of interest, except for mortgages, leading to a stampede toward home-equity loans, on which interest remains deductible, to finance credit card purchases.

In the ’90s, Geisst says, Congress and community activists encouraged excessive lending to low-income groups, expanding the subprime mortgage market. And a 1998 tax law increasing tax-free capital gains on residences to $500,000 per couple “proved to be an irresistible lure for those who thought they could flip their homes for a profit after two years.”

Debt cravings turned to crisis this decade, Geisst writes, as lenders packaged debts and cleared them off their books; regulators relied on bond rating companies to do their work; mortgage originations hit a record $4 trillion (over 13% were subprime also called bad credit mortgages); and bank card customers used plastic to pay for $4.34 trillion worth of purchases. “In order to achieve the American Dream, average American families were going into more debt given the low growth in incomes, factoring in inflation,” the author writes. But Geisst puts excessive blame on consumers without evidence of bad behavior. He maintains that large numbers of homeowners used home-equity loans to run up credit card charges, but he concedes that no statistics confirm this. And the author says the “average American has over 13 credit cards.” In truth, consumers have only about five cards on average, 42% of card holders don’t carry balances and about a quarter of Americans have no credit cards.

How to stop the insanity? Geisst calls for mandatory debt counseling for borrowers who pay only minimums on credit cards; tighter restrictions on tax-free residential capital gains, consumer credit and mortgage approvals; and new laws reinstating state usury ceilings, punishing predatory lenders and creating a Consumer Financial Protection Agency like the one the Obama administration has proposed. Government regulation may help stem America’s debt problems, but the recession will probably do even more to make consumers and lenders more cautious. Book Review and Article was written by Richard Eisenberg.

Credit Card Debt Charge Offs Rise

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles - Tags: , , , ,

A recent article released new info that charged off credit card debt in the U.S. continues to rise for credit card companies like Capital One.  Most analysts believe that the credit crunch will continue as home foreclosures, delinquencies, charge-offs and debt settlement cases keep rising. Finance giant, Capital One reported that they charged off $524.9 million in U.S. credit card debt in July, which is equal to an annualized net charge off rate of 9.83%, the highest charge-off rate of the year. It is also up from June’s rate of 9.73%. Read the complete credit card news post >Credit Crunch and Tightened Home Financing

June 4, 2009

Debt Settlement Debt Management or Bankruptcy

Author: admin - Categories: Bankruptcy News, Consumer Debt News, Credit Market Updates, Published Debt Relief Articles, credit counseling - Tags: , , ,

For those consumers who can no longer to afford minimum credit card payments, Ethan Ewing, president of Bills.com offers tips to help consumers understand their odebt relief ptions for help, including: “Now that credit card reform legislation has passed, it’s a great time for consumers to take control of their debt,” said Ewing . “To do so, consumers need to understand the available debt relief options.”

Debt settlement. A debt settlement company works on consumers’ behalf to lower principal balances due, often obtaining savings of 50 percent of the total debt. The firm does not make monthly payments to creditors, but rather negotiates with the consumer’s creditors while the consumer accumulates funds for the settlement. Debt settlement firms charge consumers a fee for their services, typically a percentage of the debt enrolled or a percentage of the debt reduced.

Consumers who persist with a debt settlement plan can resolve their debts in two to three years at significantly lower cost than that of a debt management plan. Debt settlement typically provides better repayment terms than a Chapter 13 bankruptcy filing and does not leave a permanent bankruptcy judgment on one’s record.

Debt settlement may have a negative impact on credit ratings and profiles and is best suited for consumers in serious financial hardship who cannot afford to make minimum payments on bills and who cannot afford the higher monthly obligation typical debt management programs require.

Debt management. Debt management companies, also known as credit counseling agencies, maintain pre-arranged agreements with credit card companies to lower interest rates on a consumer’s existing debt to a creditor-issued “concession rate.” Debt management companies collect a monthly fee from consumers, as well as revenue from the credit card companies called “Fair Share” payments.

In debt management plans, monthly payments decrease, but principal amounts owed do not. Consumers who are able to continue with the payment plans typically can pay off debt in approximately five years. Debt management plans also require higher monthly payments than debt settlement programs, and are best suited for individuals who are facing a less-severe financial hardship than a typical debt settlement customer.

Bankruptcy. Bankruptcy Attorneys concur that BK’s can leave a severe negative impact on a filer’s credit rating for many years. Credit repair is not as easy as some debt counselors may lead you to believe. Under bankruptcy reform enacted in 2005, it is harder and more expensive to obtain than it used to be. Under the new law, fewer people can eliminate most consumer debt by filing Chapter 7 bankruptcy, taking more people to Chapter 13 filings. Chapter 13 requires consumers to pay back debt on a repayment plan (which can take up to five years), while still suffering the negative repercussions of a bankruptcy on their credit reports and public records. Generally considered a last resort, consumers considering a bankruptcy filing should speak to a bankruptcy attorney licensed in their state.

Read the complete press release online at http://www.emediawire.com/releases/debt/credit/prweb2493574.htm

Debt Settlement is Hip

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles - Tags: , , , , ,

Debt negotiations have become the hip choice for savvy consumers looking to rid their lives of adjustable rate credit card debt. In a recent article, Hector Milla offers suggestions for debt management. He recommends choosing a debt settlement company that has experience negotiating with the finance companies that hold the notes on credit card debt. In the article he reminds us about the pressure that comes with high cost variable rate credit card debt that can get out of hand almost over-night.

When financial obligations begin to mount and it looks like you have no options for becoming debt free, consider debt settlement if you do not qualify for bill consolidation or a second mortgage. A debt settlement company can assist you in improving your financial state by managing and renegotiating outstanding credit card debt. Debt Relief News provides the industry tips and legislation that affects credit, debt, bill collection and bankruptcy laws. > Read original debt negotiations article online.

April 13, 2009

Voice Broadcasting Provides Hot Live Transfer Leads

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Marketing - Tags: , , , , , , , ,

A former California mortgage broker operating a growing loan modification company and recently tested “Press 1” leads for foreclosure prevention and was pleased with the live transfer features.  The mortgage relief outreach reported better than average results from poor credit internet loan mod leads and direct mail marketing.  In addition to mortgage, the lead generation companies have reported high conversion ratios with credit counseling and debt settlement companies as well.

The former mortgage lending company is now diversifying their marketing with Voice Broadcasting method and it is a communication technique to reach more number of customers in a simple way. 

The loan modification company likes the efficiency of voice broadcasting leads and says they can be cost-effective with good mortgage data. This lead generation system enables easy management for the loan modification leads. The voice broadcasting leads are available from companies like the Lead Planet and Experian.  Read more at Live Transfer Leads Offer High Conversions When Voice Broadcasting.

March 9, 2009

Debt Negotiations Myths

Author: admin - Categories: Credit Market Updates, Published Debt Relief Articles

Debt Settlement Buzz reported in an article that the US unemployment rate jumped from 7.2 to 7.6 % in January according to the U.S. Department of Labor and more consumers continue to fight to pay their minimum mortgage and credit card payments. And on the drive to work, I noticed the radio station kept playing a classic debt relief commercial and then I found this blog post- “I heard an ad that asked listeners if they knew they had a right to settle with credit companies that finance unsecured credit lines and consumer charge cards for a fraction of what they owed. Read the article > Debt Negotiation Myths

Mortgage Modification Affect Credit Reports

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles - Tags: , , ,

Maintaing affordable home loans with mortgage modification plans remains a cornerstone of the Obama administration’s housing relief programs for distressed homeowners. Obama’s mortgage relief team allocated $75 billion for an initiative that would reward loan servicing companies for reducing mortgage payments for five years, after which they would rise to today’s current mortgage interest rates which,  remain in the glorious 5% range.  How long will that last? Nobody really knows…

By now, most homeowners understand that a foreclosure judgment is a “significant ding” that will reflect in the credit score and perception of manual underwriting for many years to come. Being delinquent on your home mortgage payments is a serious issue, but if you or your loss mitigation company are already negotiating with your lender, it certainly doesn’t hurt to attempt to get the lender to remove the delinquencies. It’s amazing how powerful a letter from the creditor says that they “made an error in reporting.” But several readers recently wrote to Lisa Sitkin, in an effort to get clarification on the impact of loan modification and the long standing credit implications. If the lender doesn’t agree, consider credit repair.

Borrowers should also request that prior past-due derogatory comments on the credit reports be changed to reflect new current status after the mortgage loan modification. Read more at Credit Hit from Wave of Loan Modifications?

February 10, 2009

Generation Debt with 60 Minutes Examining Consumer debt

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Debt Relief Videos - Tags:

Watch “Generation Debt” a 60 minutes Video Spotlighting Consumer debt

This video highlights the growing concerns of mounting consumer credit card debt. Watch this In depth analysis by 60 minutes of Gen Y and their credit card use.

February 9, 2009

US Consumer Credit Falls Fourth Time in Five Months

Author: admin - Categories: Consumer Debt News, Credit Market Updates - Tags:

In a recent Bloomberg article, discussions of consumer debt declining woke up many debt-ridden families to wonder what they were doing wrong.  The pace of borrowing by US consumers fell in December for the fourth time in five months as the deepening recession and restrictions on bank lending crimped purchases.   Consumer credit fell by $6.6 billion, or 3.1 % at an annual rate, to $2.56 trillion, according to a Federal Reserve report released today in Washington. In November, credit decreased by $11 billion, more than previously estimated and the biggest drop since records began in 1943. Many Americans are losing their homes to foreclosure, but as their spending habits decrease, so have their debts.

Borrowing may shrink further with banks continuing to make it harder to get loans as they grapple with mounting losses and write-downs. Demand for credit is also sliding after consumer spending, which accounts for about 70 % of the economy, posted a record six months of declines.   “The situation is ugly and will only get uglier,” said Richard Yamarone, director of economic research at Argus Research Corp. in New York. “Businesses are slashing jobs at an accelerated pace, and consumers are retrenching just as fast. The economy is in a freefall, and the severe contraction in credit underscores the crisis.”

Before today’s release, economists forecast consumer credit would drop $3.5 billion in December, according to the median of 30 estimates in a Bloomberg News survey. The Fed initially reported a $7.9 billion decrease in consumer borrowing in November.   Get more debt news as it posts.

Rebuilding Your Credit

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles

Millions of Americans continue to struggle with high rate debt and liabilities they can no longer afford.  Bad credit happens when average men and women fall behind on their credit card bills and other debt payments because of unemployment, lack of employment, or the unavoidable challenges of life.  If you have gotten yourself in this state of affairs, it is a good idea to take command of the situation rather than letting your bad credit to get worse. In this article you’ll learn the most to the point method of regaining control over your bad credit and on the road to zero debt.

1.    Get Your Equifax, Experian and/or Transunion Report. Some balance carriers are merely a few billing cycles behind on their credit card bills due to financial hardships, and they may have forgotten about several unpaid bills that are bringing their fico score south. A few of us have gotten ourselves so far back in credit card bill payments that we have lost track of what is due!

Dont Get Trapped by Debt

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles - Tags:

The number one thing that credit card companies know way in advance that we consumers don’t always realize is that life happens. Unexpected bills arise, cars need to get fixedand medical and dental procedures have to be performed. In many of these situations, consumers have found themselves so deep in financial distress that their automatic answer to unforeseen costs is to start swiping. And so continues the saga of American consumers who are trapped by excessive credit card bills and savvy credit card companies that make money off of the desperation and unawareness of consumers.

If you have found yourself in a situation where you have fallen victim to some of these traps and have accumulated a significant amount debt due to life happening, it’s important that you know there is hope, and yes there is a solution to your debt problem. Debt relief programs like the one you’ll find at NetDebt.com have helped thousands of consumers break out of their “debt trances.”

“Recent Changes in U.S. Family Finances: Evidence from the 2001 and 2004 Survey of Consumer Finances.” Federal Reserve Bulletin 2006.  Read the complete debt article >

February 2, 2009

Debt Settlement Nationwide Editorial

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Featured Editorial

The credit card companies have been able to run carte blanche on consumers, slashing their credit lines for the lamest reasons. Mine have been repeatedly slashed because my creditors claim I have “seriously delinquent accounts”. These “seriously delinquent accounts” to which they are referring are ones that are 4.5 years old or older. Three of them are due to fall off my credit reports THIS YEAR due to age. I have one that drops off in May of this year, one in July and one in November. But, yet, the creditors are allowed to continue to punish me for these past financial problems that were actually a result of identity theft. Credit card companies REALLY need to be monitored, and now they are on the radar screen. Now, that it has happened to someone who is high-profile enough to have drawn attention, it will be interesting to see if these practices stop.  The Debt Settlement Nationwide Blog, recently posted some similar comments.  Read the complete Debt Article> Noteworthy Credit Related News

January 28, 2009

Do We Need a Credit Card These Days

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Debt Relief Videos, Published Debt Relief Articles - Tags: , ,

Wondered why do we ever need credit cards? To your surprise, you actually need to have a credit card these days.  But you do NOT need credit card debt. As Suze Orman explains, Credit card debt continues to rise, but we live in a credit era that is automated and not having a credit card will limit some your opportunities.  If you have over $10,000 in credit card debt consider a debt consolidation loan or debt settlement.

January 20, 2009

What the Credit Card Companies Know That Keeps Them in Business

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles - Tags: , , ,

It’s no coincidence that according to the Federal Reserve’s latest survey 46.2% of American families are holding credit card debt and are now in search of debt relief. Credit card companies have made a multi-billion dollar industry out of knowing how consumers think and by predicting the average consumer’s habits.

Here are a few things that banks know that credit card consumers are sometimes in the dark about:

- Possibilities for Problems in the Economy. Many credit card companies have entire teams dedicated to researching the economy and predicting possible economic issues that would cause consumers to use their credit cards more frequently. It is no coincidence that at a time when many people believe that the American economy has hit a recession due to increases in the price of oil, food, and other everyday necessities, the credit card industry is banking more and more interest due to an increase in the daily use of credit cards.

- 0% APR Offers Lure You to Spend More, Thus Owe More. A few years back, credit card companies began sending out numerous 0% APR offers to convince credit card holders at other banks to transfer their balances. While many people took advantage of these 0% offers to save money and pay off debt, they may not have taken into account the fact that by helping to free up money on their credit card accounts, these credit card companies were actually creating somewhat of a trap. If a consumer who is trying to pay off credit cards decides to use the new 0% APR credit card after a certain period of time (even if the 0% balance transfer APR is in effect for the life of the debt), the interest rate on that new purchase balance can shoot up to 18% or more, and is paid off last. That means that 10, 15, or 30 years down the line when the 0% balance is finally paid off, the amount you purchased on the card at 18% has been accruing in interest for all of that time as well. You may find yourself in the same boat as before!

- “Rewarding” You With a Higher Credit Limit Keeps You Hooked. Credit card companies frequently “reward” good customers who pay their bill in full faithfully every month by increasing their credit card limits. But in actuality, they know that as long as your limit continues to rise, you are likely to use the card even more. At some point in that pattern of behavior, you will reach a peak where the credit card company will no longer raise the limit and is profiting from the higher finance charges on your credit card bills. It’s all about predicting the consumer’s behavior.

- Your Past History Predicts the Future. Another bit of invaluable knowledge that credit card companies benefit from is your full credit card history. They have a detailed history of your past purchasing habits, balances, and what you have done in certain situations that have arisen in your financial history. What you have done in the past is a good predictor of your future actions. For example, maybe you started a business and used your credit card to purchase $1,000 in business equipment one month. Now your creditor knows that you are more likely to use your card for both personal and business purposes. In another example, if a creditor sees that you have a penchant for expensive designer clothing, they will not only assume that you will purchase more in the future, but also send you special offers in the mail for designer clothing from its advertising partners.

- Consumers Don’t Always Read the Fine Print. Creditors also bet on the belief that most credit card consumers are too lazy to read the fine print of their credit card bills and agreements. If a credit card customer continues to pay the minimum payment, not knowing what the APR is, and not knowing how payments are applied, they can become trapped in a long cycle where they will pay off credit cards for an extended period of time. Meanwhile, the creditor will continue to reap the benefits of the consumer’s lack of knowledge for a long time to come. Read the entire debt article.

January 16, 2009

Credit Card Debt Crisis

Author: admin - Categories: Consumer Debt News, Credit Market Updates - Tags:

According to the Federal Reserve, nearly half of American families do. Credit card defaults to reach 100 Billion dollars in 2009.  The report indicated thatnearly half of American families also have some sort of bank savings accounts.

 

The next crisis will be credit card defaults by the millions of unemployed. Further exacerbating the crisis and leading us closer to another Great Depression.

January 14, 2009

Fed Chief Requests Credit Market Stimulation

Author: admin - Categories: Consumer Debt News, Credit Market Updates, Published Debt Relief Articles - Tags: , , , , , , , , , , , , ,

In a recent article, Jason Cardiff discusses the impact of bad debts and defaulting mortgage securities being bought by the Federal Reserve and the US Treasury. He offered options to deal with bad credit mortgages and other poor performing assets held by financial institutions.  In addition, Bernanke suggested the government increase their intervention to slow down the foreclosure crisis as the housing market continues to sour.

The Federal Reserve chairman, Ben Bernanke talks about that the $800 billion recovery plan, a combination of tax cuts and increased government spending is now being massaged by the Obama team and the Democrat-controlled Congress could provide a “significant boost” to the floundering economy. He did however; reiterate that such a plan must be part of a broader, multi-pronged government response to fight the worst financial and housing crisis the hit the U.S. and the global economy since the Great Depression in the 1930s.  “Fiscal policy can stimulate economic activity, but a sustained recovery will also require a comprehensive plan to stabilize the financial system and restore normal flows of credit,” Bernanke said.

To help on that front, the Federal Reserve has agreed to lend billions to credit card finance and mortgage companies and purchasing some of these companies’ debt to rebuild the credit markets. The US Treasury Department is overseeing a $700 financial bailout program that has pledged to inject $250 billion into banks in return for partial government ownership.   Bernanke said “more capital injections and guarantees may become necessary” to stabilize financial systems markets while stimulating credit markets that should increase consumer lending. Visit Jason Cardiff Tips online for financing newsletters, real estate articles and debt relief reports at no cost. Read the original article > Fed Chief Says Obama Stimulus Could Revive Economy and Housing Markets.

In a recent CNN program, Lou Dobbs says, “I Told U So” to Secretary Paulson.

Dobbs reminds viewers that he warned the Treasury Secretary a year ago not to buy the toxic assets like defaulting mortgages and abandoned credit debt from these type of investors.