By some estimates, more than a third of the adult population in the US is going to come in contact with a debt collector at some point. If you have never had to deal with debt collector before, your only exposure to the industry could be from the media, and perhaps by way of this […]
banking practices
How Low Interest is Affecting Canadians
Back in January 2015, the Bank of Canada made the surprising move of lowering the key interest rate from 1 per cent to .75 per cent, shocking those who thought a rise was inevitable. But surprise factors like an oil price plunge forced the Bank’s hand, as they made the first adjustment to the key […]
Filing a CFPB Complaint
Throughout this website, and several others I contribute to, I suggest people file complaints with the Consumer Financial Protection Bureau (CFPB). I am usually responding to reader comments when I do, so the reason for suggesting filing the complaint is contained in each comment exchange, but only briefly. I want to be sure readers have […]
Debt Forgiveness and Taxes when Creditors Forgive or Abandon Collection
Settling debt for less than the balance you actually owe involves debt forgiveness. Your creditor is forgiving a portion of the debt owed to them because collecting something from you is better than nothing. But there are IRS rules for your creditors to follow if the amount forgiven exceeds $600.00. Your creditor is required to […]
Inaccurate Information on Your Credit Report can Cost You
The credit report topic has been covered well on our web site, but mostly as it applies to people who need some form of debt relief due to a financial hardship. While that is an important topic and a concern for more and more people as a result of our tough economy – what about […]
Debt Collection Industry Insider Starts Petition to Reign in Collection Abuse
Collection industry insider, Bill Bartmann, has started an electronic petition he will submit to Congress where he suggests the following amendments to the Fair Debt Collection Practices Act (FDCPA): We hereby petition Congress to amend the current debt-collection rules by adding the following provisions: Increase the penalty for violations of debt-collection rules from the current […]
What to Expect in the First Six Months of Not Paying Your Credit Card
This post is part of the Debt Bytes “Charge Off” series and discusses what happens in “pre Charge Off” – when you’re not paying your credit card, and (s) are late between one and 180 days. Credit card debts that go unpaid follow a relatively predictable pattern. When first missing a payment, the phone rings… […]
Credit Card Debts and Charge Off – What it Means to You
The term charge off describes an accounting function followed by your lenders. When speaking of revolving consumer credit card accounts, a charge off occurs when the credit issuer either chooses, or must, recognize an unpaid loan balance as a loss. For lenders, losses are bad news. The bad news gets reported and can affect anything […]
Tax Deductions – A Better Form of Stimulus for the Middle Class
What if tax payers could claim interest payments on debts (other than mortgages) as a deduction? Would it assist in an economic recovery? I would suggest YES. The fundamental reasoning would be two-fold. It would allow consumers with debt to be able to more aggressively pay down that debt with the tax savings, which could […]
High Credit Card Interest Rates can Feel like Plastic Explosives in Your Wallet
Every day thousands of consumers — hard working businessmen and women, mothers, fathers, grandmothers, students — walk through airport security where their purses, bags and wallets are screened and cleared on their way to their new destinations. Yet, unbeknownst to their carriers and their fellow passengers, they are carrying highly explosive materials onto their planes […]