Archive for July, 2011

In Debt Collecting, Location Matters

Posted on July 27, 2011 by Saldutti

For U.S. consumers with too many bills and not enough money, the end of the line is often a small-claims court.  As companies and debt collectors try to collect on overdue bills that piled up during the financial crisis, the recession and their aftermath, they are borrowing a tactic from plaintiffs’ lawyers: They shop around for the best places to bring their claims. Debt collectors aren’t so much worried about whether a court will rule that the debtor owes the money—most cases are fairly clear-cut on that point—but about how aggressively collectors can pursue a debtor’s assets. Lawsuits to collect…

Money 101: Your Savings

Posted on July 19, 2011 by Saldutti

How much of your income should you be saving?  A common rule of thumb answer used to be that 10% of income should go into savings.  Saving that kind of money seems so daunting that most people don’t even try, which is why the national savings rate ended up actually being negative in the mid-2000’s. Today, consumers are spending less and saving more, but the national savings rate is still in the low single digits – well below the 8 to 10 percent rate in the 50’s and 60’s. 10 Percent Is Not Enough!  Here’s the real kicker: based on…

Debt Delinquency Timeline: What to Expect

Posted on July 12, 2011 by Saldutti

At a time when unemployment remains stubbornly high and job prospects seem dismally low, the danger of missing a credit card payment or two is all too possible for many borrowers. Some may be tempted to try to outrun the debt by dodging collection calls and throwing away creditor letters. But sooner or later, your debt will find you.  Your delinquent debt can follow you on your credit report and possibly all the way to court if you refuse to pay. Bankrate.com outlines the timeline for debt collection efforts and reveals what to expect and what you can do at…

Happy 2nd Anniversary, Economic Recovery

Posted on July 07, 2011 by Saldutti

This is one anniversary few feel like celebrating.  Two years after economists say the Great Recession ended, the recovery has been the weakest and most lopsided of any since the 1930s.  After previous recessions, people in all income groups tended to benefit. This time, ordinary Americans are struggling with job insecurity, too much debt and pay raises that haven’t kept up with prices at the grocery store and gas station. The economy’s eager gains are going mostly to the wealthiest. Workers’ wages and benefits make up 57.5 % of the economy, an all-time low. Until the mid-2000s, that figure had…