Real Time Debt Statistics – The U.S. Debt Clock

Forget about Facebook, YouTube and Twitter for a moment. Here’s a fascinating site to check out when you need a 5-10 diversion: www.USDebtClock.org

Here are just a few of the statistics it tracks:

U.S. National Debt
Debt Per Citizen
Debt Per Taxpayer
Debt Per Family
Savings Per Family
Total Personal Debt
Mortgage Debt
Consumer Debt
Credit Card Debt

This list just barely scratches the surface. You’ll find WAY more statistics when you visit the site.

Also, each statistic on this site includes a reference for further research if you’re interested.

www.USDebtClock.org

Screw Your Credit Card Debt (at least for the next 15 minutes)

For the next 15 minutes I want you to take a quick break and watch this video. It has nothing to do with credit card debt, but that’s precisely the point. Anyway, just trust me, it will be worth it.

Credit Card Debt Settlement Strategy: Persistence Pays!

Here’s some quick “news from the field” from just last week.

Last Monday, two of my clients attempted to negotiate a settlement for less than full balance on their respective credit card accounts. Ironically, these 2 accounts were with the same credit card company. But that’s beside the point and purely coincidental.

Anyway, on Monday each client was told by the credit card company that “no settlement was available at all“.

Each client then came to me slightly discouraged and wondering what to do next. I reminded them that certain credit card companies (especially this particular one) are often very stubborn, and they know that most people will give up when they encounter any type of resistance.

I then explained to my two clients that if it were me I’d wait a couple days and go back to the credit card company and re-present my settlement proposal. In other words, just good old-fashioned persistence.

That’s exactly what these two clients did.

End result? On Wednesday of last week, one client settled her account for 40% of the balance and the other for 60% of the balance. These results were achieved when just 48 hours earlier they were told that “no settlement was available”.

Nothing fancy here. Just a little persistence.

For more free information on credit card debt settlement, please visit:

www.hoffmanbrinker.com/videos

Also, when in need, don’t hesitate to seek a professional advice from a San Diego Bankruptcy
Lawyer.

Jailed For Past Due Credit Card Debt

Jailed for past due credit card debt

Earlier this week, an article appeared in the Minneapolis-St.Paul Star Tribune describing how some citizens of the state of Minnesota are being sent to jail for having past due credit card debt. As much as I hate to say it, apparently this is really happening.

However, the article is somewhat misleading because the actual reason why these people were arrested was for allegedly failing to comply with a court order or failing to appear for a court hearing in connection with the debt, not the fact that the debt was unpaid. In other words, the people in the article were jailed for a legal technicality.

Although some debt collectors would like you to believe that you can be arrested for an unpaid debt, it is not a crime to owe money. Debtors’ prisons were legally abolished in the United States in 1869.

However, some debt collectors are just plain ruthless in their collection tactics and they’ll stop at nothing in trying to intimidate people into paying. According to attorney, Michael Kinkley of Spokane, WA, “The law enforcement system has unwittingly become a tool of the debt collectors. Debt collectors are abusing the system and intimidating people, and law enforcement is going along with it.”

What’s Really Going On Here

I believe this article will be one of many news stories that will be “leaked” to the press as part of an ongoing public relations campaign by creditors and debt collectors in an attempt to demonize people with outstanding debts. Their goal will be to try and instill a belief in the public consciousness that anyone with an outstanding debt is an evil, immoral, irresponsible, good-for-nothing, low-life scumbag that needs to be locked up if they can’t pay.

And no, I’m not a conspiracy theorist. I honestly believe this is what’s really going on here.

If you go back to the Star Tribune article, one of the people that was jailed had a measly $250 debt, yet they chose to make an example out of her and “send a message” to anyone else that might owe money. As previously mentioned, certain creditors would like you to believe that past due debt equates to jail time, when in reality that’s not how things really work.

For Some Creditors, It’s Better To Be Feared Than Loved

In my consulting practice over the past 15 years, I’ve talked with several thousand people in all stages of financial distress. And make no mistake, the biggest fear that people have is with regard to the legal system. They are scared to death of lawyers, lawsuits, courts and judges. And I don’t blame them one bit.

But don’t think creditors and debt collectors don’t know this. They absolutely do, and they’re doing their best to exploit this fear.

However, my experience is that the vast majority of people with past due debt do not get sued. Lawsuits take time and money. In addition, suing someone does not guarantee that a creditor will recover any money. As the old saying goes, “You can’t squeeze blood from a turnip.” Creditors are very aware of this as well.

So if you’re having financial challenges right now, just keep your head up and do your best. That’s all you can do. And don’t worry about the debt police because you cannot be arrested for an unpaid debt.

If you’d like to read the full article from the Star Tribune, here’s the link:

http://www.startribune.com/investigators/95692619.html

The New Credit Card Law: No Big Deal

no big deal

There’s been a lot of talk lately about the new credit card law that went into effect on 2-22-10. In case you missed it, here are some of the highlights:

Credit card companies are now required by law to disclose how long it will take you to pay off the balance and how much interest you’ll accrue if you just make the minimum payments.
Credit card companies are also required to show you how much needs to be paid each month to pay off a balance within three years. NOTE: The Detroit Free Press published a really neat graphic to illustrate these first 2 points and it can be found here.
Credit card companies cannot raise interest rates on existing credit card balances. In addition, rates can’t be raised unless the account is at least 60 days past due. If payments are made on time for six consecutive months, the original rate must be restored. In the past, if you made a late payment on even just one credit card, a loan or even a utility bill, that could trigger interest rate hikes on your other credit card accounts … also known as a “universal default”.

There are additional changes, but these are 3 of the big ones. For more complete coverage of the new credit card law, please see the links at the bottom of this article.

No Debt, No Worries

Many financial journalists and bloggers are spending a lot of time discussing the new credit card law and how it will affect you, not to mention how the credit card companies might now try to creatively (but legally) come up with new ways to charge consumers.

I don’t know about you, but modern life is complicated enough without having to learn a whole new set of rules/regulations/policies/procedures regarding my credit card or having to read credit card industry trade journals.

Therefore, if you want you want the quick and easy interpretation of the new credit card law, here it is: If you don’t have outstanding credit card debt, this new credit card law does not affect you.

Keep in mind that the new credit card law assumes that a person has an outstanding balance on their credit cards. But if you pay off your credit card bill(s) in full each month, you don’t have to concern yourself with the new credit card law. Yes, it really is that easy.

Simple Is Good

I haven’t carried a balance on my credit cards for nearly 15 years, and I know plenty of other people that live a perfectly normal life without credit card debt.

It’s all about being disciplined and not spending more than you earn, and having the courage to just say no when everyone around you is using their credit card like a drunken sailor.

When you live within your means and commit to paying off your credit card bill(s) in full each month, your life immediately becomes simpler and less stressful. You’ll gradually pull out of the system that used to own and control you. And it’ll be one of the best decisions you ever made.

For additional information on the new credit card law:

http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm

http://freep.com/article/20100304/COL07/3040482/1088/New-credit-law-means-youll-see-what-you-pay-in-long-term

http://www.federalreserve.gov/creditcardcalculator/