New Credit Card Rules
According to Demos, a public policy research organization, the recently issued rules will ban some of the bait-and-switch tactics in credit card lending. The new rules will:
• Prohibit banks from retroactively increasing the interest rate their customers must pay on existing balances
• Prohibit banks from allocating payments to lower-rate balances first to maximize finance charges
• Ban the practice of "double-cycle billing," which calculates interest over more than one month, and can result in higher finance charges
• Eliminate upfront fees on so-called fee harvesting credit cards when they eat up the majority of the available balance on the cards
What still needs to be done?
While the new rules will provide important new protections, more safeguards may be needed to address other lending practices that can make it difficult for consumers to manage their credit.
According to the Consumers Union, other reforms needed to address some of the abusive practices that hurt consumers are:
• Limiting the amount of "penalty" interest rates, and how long card companies can keep you at these extremely high rates.
• Prohibiting fees for paying a credit card by phone or internet.
• Prohibiting account-opening fees no more than 10 percent of the credit limit.
• Banning multiple over-limit fees during a single billing cycle.
• Require banks to provide consumers a reasonable amount of time to make payments.
How do these new rules affect me?
These new rules are a positive step in the right direction for consumers. Once you complete your debt settlement program, these regulations may help you make a fresh start as you strive to rebuild your credit rating. Keep in mind that it will still benefit you to practice prudent credit card use. Avoid additional interest and fees by only charging what you can afford to pay in full that month. Timely credit card payments may slowly improve your credit score.
Monday, January 26, 2009
Monday, January 19, 2009
How To Get Through A Tough Economy
Have A Support System
Credit cards make it easy for consumers to live beyond their means and impress friends and family. Swiping a credit card can quickly allow you to pick up the tab for an expensive dinner or purchase extravagant gifts for special occasions. As more consumers experience the effects of the economy, you will more than likely be acquainted with people required to tighten-up their budgets instead of people who encourage overspending. Surrounding yourself with supportive individuals that understand your situation may help you persevere and achieve your financial goals to complete your debt settlement. Hopefully, frugal living will become a lasting trend even when the economy bounces back to a prosperous state.
Your Opinion Counts
Consumer Reports' latest national survey finds that more than half (56%) of respondents think that the government has not done enough for them in these tough economic times. Only 17 percent of those polled said the government needs to do more for banks and financial institutions. In the poll, 29 percent said the government went too far in bailing out the financial industry. You have the opportunity to express your views on these types of issues by calling 1-800-BAIL-OUT. Once you call the toll-free number, you will be prompted to speak and share anything on your mind about the current financial situation in America. Your message will be recorded, digitized, and uploaded to http://www.bailoutrants.com/. Other users can listen to your message and comment on it.
Credit cards make it easy for consumers to live beyond their means and impress friends and family. Swiping a credit card can quickly allow you to pick up the tab for an expensive dinner or purchase extravagant gifts for special occasions. As more consumers experience the effects of the economy, you will more than likely be acquainted with people required to tighten-up their budgets instead of people who encourage overspending. Surrounding yourself with supportive individuals that understand your situation may help you persevere and achieve your financial goals to complete your debt settlement. Hopefully, frugal living will become a lasting trend even when the economy bounces back to a prosperous state.
Your Opinion Counts
Consumer Reports' latest national survey finds that more than half (56%) of respondents think that the government has not done enough for them in these tough economic times. Only 17 percent of those polled said the government needs to do more for banks and financial institutions. In the poll, 29 percent said the government went too far in bailing out the financial industry. You have the opportunity to express your views on these types of issues by calling 1-800-BAIL-OUT. Once you call the toll-free number, you will be prompted to speak and share anything on your mind about the current financial situation in America. Your message will be recorded, digitized, and uploaded to http://www.bailoutrants.com/. Other users can listen to your message and comment on it.
Tuesday, January 13, 2009
Achieving Financial Goals
Effective debt management and achieving financial freedom are probably some goals that you consider high priorities. Below are some things to keep in mind as you continue to work towards becoming debt-free.
Stay Organized
Establish a filing system for all of your financial documents. Knowing when your bills are due and paying them on time may help you achieve your goals. Balance your checkbook and make a monthly budget. If you know how your money is being spent, you bring a clearer perspective to your financial plan. Disorganization may cause chaos and confusion, which may delay your financial goals.
Stop Trying To 'Keep Up With The Joneses'
You may know of a friend or neighbor that buys a new vehicle every few years or shops frequently for the latest gadgets. Because we live in such a consumer-driven society, it is easy to fall into this trap. Having the need to always purchase the latest and greatest can really hinder financial goals and create more debt. When compelled to spend a lot of money on items that are not necessities, keep your financial goals in mind.
Don't Get Discouraged
You may stumble upon a series of road blocks on the road to reaching your debt settlement negotation. If you encounter difficult situations remember your ultimate goal is to be free of debt. You can also contact your debt settlement company when you have any questions about your program or a problem with a specific collector.
Stay Organized
Establish a filing system for all of your financial documents. Knowing when your bills are due and paying them on time may help you achieve your goals. Balance your checkbook and make a monthly budget. If you know how your money is being spent, you bring a clearer perspective to your financial plan. Disorganization may cause chaos and confusion, which may delay your financial goals.
Stop Trying To 'Keep Up With The Joneses'
You may know of a friend or neighbor that buys a new vehicle every few years or shops frequently for the latest gadgets. Because we live in such a consumer-driven society, it is easy to fall into this trap. Having the need to always purchase the latest and greatest can really hinder financial goals and create more debt. When compelled to spend a lot of money on items that are not necessities, keep your financial goals in mind.
Don't Get Discouraged
You may stumble upon a series of road blocks on the road to reaching your debt settlement negotation. If you encounter difficult situations remember your ultimate goal is to be free of debt. You can also contact your debt settlement company when you have any questions about your program or a problem with a specific collector.
Monday, January 5, 2009
Creditors Bugging You - Know Your Rights
Charges Are Filed Against Florida Collection Agency
West Virginia Attorney General Darrell McGraw recently filed suit against Florida collection agency for unlawful, coercive debt collection practices. Beginning in 2006, consumers complained that they had received calls from this agency suggesting they would be arrested if they did not pay a cellular telephone bill. According to the lawsuit, this agency tried to coerce payments from consumers by implying that a "federal marshal" would appear at the consumer's workplace, or that a deputy sheriff would serve a warrant for the consumer's arrest. Any debt collection contact involving an accusation of a crime or similar conduct is strictly forbidden by law. Consumers also reported that this agency threatened to sue them if they did not pay. Because this particular collection agency employs no lawyers and does not file lawsuits of any kind, these threats were misleading and therefore, unlawful.
Con Artists Pose As FTC Employees
In their latest effort to defraud the public, con artists claiming to work for the Federal Trade Commission are calling consumers and claiming that they have won a lottery or sweepstakes. As the nation's consumer protection agency, the FTC never collects money directly from consumers. But the public may be fooled, because by using Internet technology, con artists can make it appear that they are calling from Washington, DC, where the FTC is headquartered. The FTC's name may even be displayed on consumers' caller ID machines. All the public has to do, according to the con artists' pitch, is pay the taxes and insurance on their "winnings." The caller asks that consumers wire money or send a check for an amount between $1,000 and $10,000. In reality, there is no prize, and the scammers disappear with the consumers' money. Real sweepstakes don't require you to send money to claim a prize.
West Virginia Attorney General Darrell McGraw recently filed suit against Florida collection agency for unlawful, coercive debt collection practices. Beginning in 2006, consumers complained that they had received calls from this agency suggesting they would be arrested if they did not pay a cellular telephone bill. According to the lawsuit, this agency tried to coerce payments from consumers by implying that a "federal marshal" would appear at the consumer's workplace, or that a deputy sheriff would serve a warrant for the consumer's arrest. Any debt collection contact involving an accusation of a crime or similar conduct is strictly forbidden by law. Consumers also reported that this agency threatened to sue them if they did not pay. Because this particular collection agency employs no lawyers and does not file lawsuits of any kind, these threats were misleading and therefore, unlawful.
Con Artists Pose As FTC Employees
In their latest effort to defraud the public, con artists claiming to work for the Federal Trade Commission are calling consumers and claiming that they have won a lottery or sweepstakes. As the nation's consumer protection agency, the FTC never collects money directly from consumers. But the public may be fooled, because by using Internet technology, con artists can make it appear that they are calling from Washington, DC, where the FTC is headquartered. The FTC's name may even be displayed on consumers' caller ID machines. All the public has to do, according to the con artists' pitch, is pay the taxes and insurance on their "winnings." The caller asks that consumers wire money or send a check for an amount between $1,000 and $10,000. In reality, there is no prize, and the scammers disappear with the consumers' money. Real sweepstakes don't require you to send money to claim a prize.
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