Of these 120,000 complaints, the most common complaint making up 21% of the total were related to identity theft and following that in second place at 9% were complaints against 3rd party debt collection agencies.

This proves once again how big of a problem identity theft and debt collection harassment has become today. If you feel that you may be a victim of identity theft or if you are being harassed by a debt collector, contact a Debt Help Lawyer today. They’ll offer you a free inital consultation so that you can find out if you have a case.

The new credit card law is finally here. Starting Monday, banks will need to abide by new regulations on terms and disclosures. The idea behind the landmark law was to prevent banks from using practices that often dug borrowers deeper into debt.

A look at how the credit card law affects key aspects of your account.

INTEREST RATES

THEN: Banks could raise the interest rate on an account at any time, including the rate on an existing balances, even if you weren’t late on payments.

NOW: The rate cannot be raised in the first year after an account is opened unless an introductory rate has come to an end. After that, cardholders must be notified 45 days in advance of any rate change.

For existing balances, 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.

There’s still no cap on rates.

DISCLOSURES

THEN: The fine print on cardholder agreements was often difficult to understand. Rates, fees and penalties for other services such as cash advances, for example, could be hard to find. The impact of the interest rate on paying down a balance was hard to compute.

NOW: Cardholders will see how many months it will take to pay off a balance if only minimum payments are made. Statements will also indicate how much needs to be paid each month to pay off a balance within three years.

SERVICE FEES

THEN: Banks could charge as much as they wanted. They could assess annual fees, activation fees and other fees. This was mostly a problem for subprime cards marketed to those with poor credit scores. One popular card, for example, the Premier Bankcard, charged $256 in first-year fees for a $250 credit line.

NOW: Service fees, such as activation and annual fees, will be capped at 25 percent of the credit limit during the first year of use. After that, there is no cap.

GRACE PERIODS

THEN: Some card companies sent out statements not long before payments were due, and sometimes shifted payment due dates from month to month, meaning that payments would not always have enough time to arrive and get processed before being deemed late. As a result, some cardholders ended up getting charged interest or late fees even when they thought they were sending in payments on time.

NOW: The law requires that due dates remain consistent. Statements must be sent out 21 days before the payment due date, and finance charges and fees cannot be applied before that period is up. In practice, about half of card issuers have extended grace periods to as long as 25 days.

OVER-THE-LIMIT FEES

THEN: Banks set credit limits, then routinely allowed charges to exceed those limits. When that happened, though, the customer was charged an over-the-limit fee as high as $39. These fees were often triggered by interest charges or late-payment fees that pushed a balance over the credit limit. What’s more, multiple over-the-limit fees could get charged in a single billing cycle if the balance was paid down and another charge pushed the balance back over the limit.

NOW: The cardholder must specifically agree to permit transactions that exceed the credit limit. Only then can over-the-limit fees be charged. But the fees can’t be triggered by other fees or interest charges. Only one over-the-limit fee may be imposed during a billing cycle. No over-the-limit fees may be charged unless the cardholder has specifically agreed to permit transactions exceeding their authorized credit limit. These fees can no longer be triggered by other fees or interest charges imposed by the card issuer, and only one such fee may be imposed during a billing cycle.

In practice, several of the largest card companies have dropped these fees. Some banks are using pop-up boxes on their Web sites or other methods to obtain consumer authorization.

UNIVERSAL DEFAULT

THEN: If you made a late payment on one credit card or loan, or even late payments for obligations like utility bills, that could trigger interest rate hikes on other credit card accounts.

NOW: Card companies cannot raise interest rates on existing credit card balances. Interest rates can’t rise during the first year an account is open, unless the original agreement spelled out a promotional rate for a limited time.

Consumers with older accounts must be informed of any interest rate increase on new charges at least 45 days in advance. They must also be given a chance to opt out of the hike by canceling the account and paying down the balance at the old interest rate. If an interest rate is increased, the card company must review the account once every six months to assess whether the rate should be dropped.

STUDENTS

THEN: Students arriving on college campuses often confronted a gantlet of credit card marketers handing out T-shirts, pizza and other gifts in exchange for filling out card applications. Credit cards were frequently handed out without checking the applicant’s income sources. In 2008, 84 percent of undergraduates had at least one credit card. Average balances topped $3,100.

NOW: Credit cards may no longer be issued to anyone under age 21, unless the applicant has a co-signer, or can show independent means to repay the debt. Colleges must disclose any marketing deals they make with credit card companies. Banks are not allowed to hand out gifts on or near campuses or at college-related events.

The following pros to Debt Settlement can also help you decide:

Pros of Debt Settlement

• Pay Off Debt for Less Than You Owe
With Debt Settlement, you can often save between 40-60% on the balance. In addition to saving money on the balance you also save on the interest.
• Get Out of Debt Faster
With Debt Settlement, since you’re paying back a lower balance, you’ll be out of debt faster and get your financial life back on track.
• Avoid Bankruptcy
Bankruptcy is the last resort to financial wellness. Getting your debts paid off more quickly and for less than you owe can help you avoid bankruptcy and the damage to your credit report.

Contact Debt Help Lawyers today for a free consultation about the financial health. The case review is free!

Debt consolidation

A popular choice for many consumers, debt consolidation combines all your debts into a single loan. You will still owe the same amount, but instead of several monthly bills you will have the convenience of only paying one bill a month. Your creditors will be satisfied, and your new lender – your debt consolidator – will consolidate all your debts into one loan. You’ll be responsible for a single monthly payment, which will gradually pay down your debt. A consolidation loan isn’t guaranteed: you will have to apply for debt consolidation, and your monthly income, credit history and type of debt could all be factors in the type of consolidation loan you receive or whether you are approved for one at all.

Debt settlement

When your debts become too difficult to manage on your own, and a debt consolidation loan isn’t the best option, debt settlement could be a smart solution to your financial dilemma. Consumers generally choose debt settlement when their debts are too great to maintain independently, and they need the help of a third party to make creditors stop calling. By selecting a debt settlement service, you will have an impartial third party who will work with you and your creditors to try to come to an agreement – it’s almost like debt mediation. Usually, debt settlement involves negotiating a lower amount of money than the consumer owes, and that amount is immediately paid to the creditor. As a result, the debt is satisfied. Through this service, you can develop a strategy to satisfy your debts and begin the process of re-establishing your credit rating.

Debt management

In debt management, you work with a professional and develop a smart, feasible strategy for getting out of debt. Generally, your debt management company develops a plan by prioritizing your debts by the balance, term, interest rate and other factors. You then pay the management company monthly, and the company in turn begins to pay off your creditors in an orderly fashion. By using this service, you are getting the expertise of a debt management professional, while also knowing your debts are being repaid in a responsible manner.

Bankruptcy

The last resort for any consumer, bankruptcy is the process of a consumer officially declaring that he or she cannot pay creditors. Bankruptcy is an extremely serious process, one that should be done with the counsel of an expert such as an attorney. Anyone considering bankruptcy should consider the benefits and problems with it, its impact on their future credit, and which debts could be eliminated by declaring bankruptcy.

To talk with an attorney qualified to help you choose the debt relief program that is right for you, contact Debt Help Lawyers. The initial review of your situation is free*.

Source: http://www.nodebttoday.com/types-of-debt-relief-programs.php

Robert McKinley of Ram Research says for the first time ever, bank credit card purchases last year totaled more than a trillion dollars. Other statistics are equally staggering — for instance, the average family has a credit card balance of $7,000, and pays out $1,000 a year on interest alone.

If you find yourself overwhelmed with credit card debt, don’t despair. With discipline and a change in spending patterns, you can get out of debt and concentrate your efforts on saving and investing.

“Getting out of debt is easy, but it won’t happen overnight,” says Steve Rhode, President of Debt Counselors of America. “You can’t borrow your way out of debt. It takes discipline and time, and requires making more than the minimum payment every month.”

Here’s an important rule to remember: resist the temptation to dig into a 401(k) or other investment fund to pay off your debt. “When people get into debt, they often liquidate investments to pay it off,” says Rhode. “The problem is the cost of lost opportunity. They could be losing 15 to 20 percent return on that money. It’s one of the costlier ways of paying off debt.”

Debt Counselors of America have identified five easy steps to get out of debt:

• Stop Incurring Debt – Cut out unnecessary spending and avoid impulse buying.
• Track the Cash – Keep a running balance sheet of every expense you make so you can pinpoint areas where you need to cut back.
• Plan for the Future – Set achievable goals such as spending less that you earn each month, and making regular deposits into an investment fund.
• Don’t Expect Instant Miracles – Getting out of debt will take discipline and time. Be patient and stay focused on your goals.
• Seek Professional Help – Debt Counselors of America assist consumers with their financial problems. Call 1-800-680-3328 to request information or visit their Web site.

The temptation to charge is difficult to curb, but not impossible. Here’s some helpful hints for …

Avoiding Temptation

There are no easy, miracle fixes for managing credit card debt. But there are some common sense things you can do to stop increasing debt.

Statistics provided by Ram Research show the average family has 14.7 cards, including bank credit cards, gasoline cards, store cards, debit and ATM cards. Rhode recommends that people limit themselves to one or two credit cards. If you have excess cards, it’s best to close the unnecessary accounts and cut the credit cards up.

You may be enticed by the flood of pre-approved credit applications that arrive in your mailbox. Don’t let yourself get carried away. Rhode suggests evaluating each deal to see if you can get a better interest rate, and shredding the applications that you’re not interested in.

It’s also important to develop a budget and stick to it. For a sound budget creation strategy, see How Do I Handle My Debt? And tap into the collective wisdom of the Investorama community on the Control Your Budget message board.

And while you’re establishing a working budget, don’t forget to …

Begin (or Continue) Saving and Investing

If you’re faced with a hefty credit card debt, you may feel like you’ll never be able to start saving. Don’t wait until you have all the bills paid off before you begin investing. As you work on controlling your spending habits, work equally hard to establish good savings habits.

Look for ways to cut back and put a few dollars aside each week. Even small weekly investments of only $15-20 will add up and pay off in the long run. When you get your debt paid off, you can increase the amount you are investing and build up to your particular savings goal.

Source: http://biz.yahoo.com/edu/md/ir_md2.ir.html

If you find yourself with debt problems, contact Debt Help Lawyers today!

Source: http://biz.yahoo.com/edu/md/ir_md2.ir.html

And if you’re saying to yourself – that that statistic doesn’t seem quite so bad – just keep this in mind:  We’re talking about consumer credit – which does not include debt secured by real estate.  So if you’re thinking that number has mortgage values in it, it doesn’t.

Consumer Credit Breakdown

So just how does that debt breakdown in terms of credit cards and /or the purchase of a new automobile?  Well, roughly 36% of all consumer debt – as of November 2009 - of this type is what is termed revolving credit, which is defined as credit which is repeatedly available as periodic repayments are made.  The most common type of revolving credit would be credit card debt.

The other 64% of that debt is derived from loans that are not revolving in nature.  This type of debt would include automobile loans, student loans, and loans on boats, trailers or even vacations.  In fact, these statistics also tell us that the average new car loan is over $30,400 and the loan to value ratio is 91%.  That means new car buyers are using down payments of around 9% of the car’s purchase price.

Credit Card Debt

According to information gathered by the US Census bureau, there were approximately 173 million credit card holders in the United States in 2006 and that number is projected to grow to 181 million Americans by 2010.  These same Americans own approximately 1.5 billion cards – an average of nearly nine credit cards issued per credit card holder.

In addition, Americans charged approximately $1,950 billion dollars to their credit cards in 2006 – that’s just over $11,300 in charges per cardholder.  This information includes all credit card types including bank cards, phone cars, as well as credit cards issued by oil companies and retail store.

This data also tells us that Americans carried approximately $886 billion in credit card debt and that number is expected to grow to a projected $1,177 billion by the year 2010.  This works out to over $5,100 in credit card debt per cardholder (not household) and that number is expected to increase to over $6,500 by 2010.

You can find more information on this topic in our article on credit card debt statistics.

Bankruptcy and Consumer Debt

In January 2008, the American Bankers Associated reported the percentage of credit card accounts that were 30 or more days past due dipped slightly to 4.18% in the fourth quarter of 2007.  That’s good news because it means more consumers are paying their bills on time.

But even with this decline in late payments, credit card delinquencies were at the third highest level on record.  To James Chessen, ABA’s chief economist, that can signal financial distress and he attributes this distress to the rise in gasoline prices as well as rising interest rates.

Bankruptcy Filings in 2005 / 2006

Despite the Fed’s feelings about consumer credit, the bankruptcy law changes that were instituted last fall resulted in a rush of indebted consumers to file for bankruptcy in 2005.  That rush pushed personal bankruptcy filings to their highest levels on record – with estimates in excess of 2 million filings.

In fact, according to Lundquist Consulting, a research company based in California, there were 200,732 bankruptcy filings in the second quarter of 2007.  That’s an increase of over 11.6% from the filings recorded in the first quarter of 2007.  On an annualized basis, and using Census statistics on the number of households that mean nearly one in every 35 households in the United States filed for bankruptcy in 2007.

So that leaves it up to you to think about this question – Is the growth of consumer debt really a concern in America?

Source: http://www.money-zine.com/Financial-Planning/Debt-Consolidation/Consumer-Debt-Statistics/

In July 2008, the federal HOPE for Homeowners Act was enacted. This Act created a program designed to help homeowners who are considered to be at risk for foreclosure. Homeowners who qualify will be able to refinance their currently unaffordable variable rate mortgages into affordable 30-year fixed rate mortgages insured by the Federal Housing Administration (FHA), if their lenders agree to participate.

Overall, this new program will support the refinancing of loans up to an aggregate value of $300 billion. The government estimates that between 300,000 to 400,000 homes may be saved from foreclosure through this program. However, the government’s estimates may be premature — a number of unresolved factors make it tough to accurately predict how effective the program will be.

If your home is in danger of foreclosure contact Debt Help Lawyers today to see if one of their debt relief programs are right for you.

What if you could possibly eliminate your debt without permanently damaging your credit? What if you were given a chance to have a fresh financial start? Bankruptcy may not be the right decision for you, but you owe it to yourself to become educated about all of your options so that you can make an informed decision.

First, assess your financial situation.

Take a close look at your current financial situation. We know this is often a stressful thing to undertake but IT IS VERY IMPORTANT. Perhaps the best way to approach this may be to gather all of your bills and financial information and make an appointment. An experienced attorney can help alleviate the stress of going through this process alone, and they will help you understand your options. Sometimes it’s important to hear from an experienced professional that things may not be as bad as you think.

Ask yourself:

Are you in debt with what appears to be little prospect of getting out of that debt in the near future?

Are you in fear of your creditors or are they threatening foreclosure on your home, or repossession of your car or other legal action that may result in you losing your property?

Has your income dramatically dropped and you don’t see it improving any time soon?

Are you frequently not paying certain bills or making late payments?

Do you only pay the minimum payment on your credit cards? Or, Are you unable to make even the minimum payments?

Do you find yourself giving up basic necessities trying to make ends meet?

Are you paying out more money than you bring home just to pay your monthly bills?

Are you losing sleep wondering how you’re going to make it?

Are you bouncing checks, or have you bounced more than two checks in one month’s time?

Is your paycheck currently, or in jeopardy of, being garnished by a creditor?

Are you partially or totally disabled making it difficult to meet your financial obligations?

Are you the process of a divorce that may result in a decrease of income and an increase in your debts or monthly expenses?

If you answered yes to any these questions its important that you investigate your options right away. Talk to a qualified bankruptcy attorney. Don’t continue to struggle along all the while worrying that your creditors are going to take further action. We understand that all of the collection calls, late fees, penalties, mounting interest, and sleepless nights make keeping your head above water seem almost impossible. Make an appointment for a FREE no obligation consultation right now.

Source: http://www.moneyproblems.com/Bankruptcy_Right.asp

Don’t worry; we’re with you every step of the way.

Here’s your six-step action plan for getting your debt under control. To help you, we’ve borrowed several worksheets from the Fool’s old personal finance service, TMF Green Light. As you’ll see, most of the steps have corresponding worksheets to guide you through the finish line. Take it at your own pace, and check off each step with a thick-line Sharpie when you’re done. (Trust us, it’s satisfying.)

1. Stop using your cards.
The last thing you want to do with credit card debt is add to it. Take all your credit cards out of your wallet or purse and leave them at home – safely out-of-reach behind a major appliance, or trapped in an ice block in your freezer. (You may want to keep one for emergencies. And no, a really great sandal sale or a cool new Bluetooth-enabled gadget does not qualify as an emergency.)

2. Assess your debt-to-income ratio.
It’s time to face those debt demons and get a bird’s-eye view of where you stand. Some debts, like mortgages and student loans, are just part of life. But the other ones (credit cards, car loans — a.k.a. “bad debt”) can bring down your financial house of cards with an innocent sneeze.

3. Dig into the details.
Don’t just throw yourself at a mountain of debt without preparation. Knowing the dirty details about your enemy is half the battle in conquering credit card bills. How many cards do you have? What interest rates do they charge? Which have the highest balances? Are the payments flexible? Is the debt “secured” or “unsecured”?

4. Reduce your interest rates.
One phone call can save you thousands of dollars. Sounds like marketing hype, but it’s true. Getting your lender to lower your interest rate will fast-track your debt freedom plan.

5. Plan your attack.
It’s time to form your battle plan. Pick a date. That’s when you’ll celebrate “Freedom From Debt Day.”

6. Schedule a few (inexpensive) rewards.
Debt boot camp can get dull. Without a few treats along the way, you risk slipping back into old spending habits.

Source: http://www.fool.com/personal-finance/credit/how-to-guide-reduce-your-debt.aspx

• use threats of violence or harm;
• publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies);
• use obscene or profane language; or
• repeatedly use the phone to annoy someone.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

• falsely claim that they are attorneys or government representatives;
• falsely claim that you have committed a crime;
• falsely represent that they operate or work for a credit reporting company;
• misrepresent the amount you owe;
• indicate that papers they send you are legal forms if they aren’t; or
• indicate that papers they send to you aren’t legal forms if they are.

Debt collectors also are prohibited from saying that:

• you will be arrested if you don’t pay your debt;
• they’ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or
• legal action will be taken against you, if doing so would be illegal or if they don’t intend to take the action.

Debt collectors may not:

• give false credit information about you to anyone, including a credit reporting company;
• send you anything that looks like an official document from a court or government agency if it isn’t; or
• use a false company name.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not:

• try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge;
• deposit a post-dated check early;
• take or threaten to take your property unless it can be done legally; or
• contact you by postcard.

If a debt collector is using any of the above tactics to harass you about an alleged debt, contact an attorney at Debt Collector Problems today!