Debt Relief Services…Make Sure You Get The Facts

If you’ve maxed out your credit cards and don’t know how you’re going to pay off your debts, you may think that a company that promises to erase the debt for pennies on the dollar is the answer to your prayers. Not true! Debt negotiation can be risky, and it can have serious, long-term consequences for your credit report and your ability to get credit in the future.

FTC Offers Pay-Off Information to Consumers with Non-Bank Credit Cards

Carrying a credit card balance can be expensive for consumers, especially for those who make only minimum monthly payments. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires that consumers be provided with toll-free telephone numbers to call for an estimate of how long it will take to pay off their credit card balance, if they make minimum payments.

Helping Families Save Their Homes Act of 2009 (H.R. 1106)

The Helping Families Save Their Homes Act will give authorization to bankruptcy courts to modify the terms of mortgages made on homeowners’ primary residences, a practice which is barred by current law. The bill, when passed by both houses, would permit bankruptcy courts to restructure the debt on home mortgages by reducing the principal owed, extending repayment periods, reducing interest rates, and prohibiting, reducing, or delaying future interest rate increases. Bankruptcy law currently permits such restructuring only for vacation homes, family farms, and yachts. Under this bill, eligibility is limited to homeowners with mortgages originated before the enactment of the legislation who have received notice that a foreclosure may be commenced. The legislation restricts the situations in which bankruptcy judges can reduce – or “cram down” – the principal owed.

‘Til The Cows Come Home

Debt – It’s the four-letter word that’s acts as a cancer on the wealth of the American family.  Taking on debt that’s beyond one’s ability to payoff in the short-term, prioritizing want purchases over needs, spending for the sake of spending can all lead to a drop in household wealth.

Sure, debt is a reality when it comes to buying a home and vehicles but the question is, do we really have to take the 30-year finance route to pay it off when we could accomplish the same in less than half the time?  Do we really have to finance that new car every 2 or 3 years?

National Consumer Protection Week

Servicemembers Civil Relief Act
(formerly known as The Soldiers’ and Sailors’ Civil Relief Act of 1940)

Continuing with our spotlight on National Consumer Protection Week, here are some great Q&A’s about the Servicemembers Civil Relief Act provided by the U.S. Department of Housing and Urban Development.

Who Is Eligible?

The provisions of the Act apply to active duty military personnel who had a mortgage obligation prior to enlistment or prior to being ordered to active duty. This includes members of the Army, Navy, Marine Corps, Air Force, Coast Guard; commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration who are engaged in active service; reservists ordered to report for military service; persons ordered to report for induction under the Military Selective Service Act; and guardsmen called to active service for more than 30 consecutive days. In limited situations, dependents of servicemembers are also entitled to protections.

Majoring in Debt

I came across an interesting article published by Newsweek Magazine titled, “Majoring in Debt”. It highlights the ways students are targeted by credit card companies.