Debt Collection In Amercia

ABC News has just published a very timely review on the state of debt and debt collections in America.

More than 35% of Americans are in some for of Debt Collection Action.

Empty Pockets

Debt's in the hands of Debt Collectors averaged just over $5,100

The Percentage of Americans in some form of collections has remained fairly steady, while the size of credit card debt has actually declined.

Credit Card Debt as a percentage of income, has reached its lowest level 10 years.

Only 2.44% of all credit cards are overdue by more than 30 days, as opposed to a 15 year average of almost 4%.

If the amount of credit card debt is being handled much better by Americans in general, why is it that better than 1 in 3 American's are still in collections.

The answer to that seems to lie in that American income has not really grown, and that expensive credit card debt is being taken care if instead of other debt.  Gym contracts, Cell Phone Contracts, mortgages, Auto Loans seem to be taking a back seat to managing credit cards.

Perhaps this is a good thing, perhaps not.  The American Psyche seems to be saying, Credit Cards cost me more, I will pay them first, and perhaps as that debt gets more and more controlled, the population will be able to turn to their other debts with the same diligence.

Real income needs to grow to resolve our massive debt crisis.

The article showed that most debt collections are focussed here, in the Southern States.

The Florida Debt Collection Law Firm of Marcadis, Singer, PA have also noticed a shift in the demand for debt collections, away from institutional credit card lenders, and towards other industries.

Marcadis Singer, PA

Florida Debt Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

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Ext. 242

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Ext.  245

http://www.marcadislaw.comhttp://www.marcadislaw.com

6 Sure Fire Ways To Get Upside Down in Debt! - (Con't.)

4. Ignore your credit report and credit score.

Ignoring your credit report is the same thing as saying that you totally trust the folks issuing your credit -  what the heck, let them run the show  -  they certainly have your best interests in mind!  WRONG!

Here's the truth of the matter.   The FTC believes that over 25% of all credit reports contain errors... that's 1 in 4.  Gather 4 friends together.. one of you has an error on their credit report.

Not only do things go wrong, but sometimes there are way past due bills you have legitimately forgotten about, maybe someone gets ahold of your credit card... Not knowing your credit value puts you at a huge disadvantage.

A very rational strategy is to get your free credit report - you are entitled by law to a free report every year.

Take a look at it, and dispute any mistakes.  Then one by one, find the items on that report that hurt you the most and go to work on them.  What you will find is that as your credit score improves, you will be able to negotiate for cheaper credit.   Move your score in the right direction, and next thing you know, you get offered a cheaper credit card.  Pay off the expensive card, and use the cheap card, and instantly you have saved money!   Hold off on major purchases like a house or a car until your score is stronger, and save more money over a long period of time.

Of course, if you don't know what your credit looks like, you are flying blind - and are easy prey to predatory lenders... Get your free credit report - its easy.  Manage your credit and start having more money available to you at the end of ever month.

6 Sure Fire Ways To Get Upside Down in Debt! - (Con't.)

3. Overspend or simply spend spending future earnings that haven't been banked yet.

That contract is going to come in next month with a big fat commission, so I can afford to buy the television today... right?

One of life's little realities are that the money doesn't always come, or come when you expect it, but the credit card bill is always on time.

Another trap is that the money comes, but before the credit card bill arrives, and gets spent on a celebratory trip, and then the credit card comes, and there's no extra money to pay it.

One of the best strategies is to spend when the money gets there, don't spend ahead.

Improve Your Credit Score, even when you have Bad Credit!

Small, and sometimes significant, improvements to your credit score can be made with some relatively simple changes in behavior.

Always be cautious with your new found credit worthiness, that it doesn't end up leading you to even more credit problems.   Once your credit improves, instead of rushing out an getting things that won't help your financial future, consider using your new credit power to renegotiate your current credit, with lower interest rates so that your monthly bill is lowered, and contribute the difference to debt reduction.

It pains us, as debt collection attorneys in Florida, to see people that could be making small incremental changes to their credit behavior, that could ultimately find themselves out of debt.

Here's the 4 simplest ways to improve your credit.

1. Check your credit report for mistakes.

Yes, there's mistakes, there's identity theft, people forget to take paid bills off your record, you can track when certain debts ere set to expire and plan your credit accordingly.  How can you improve something without measuring it?   Check your score often!

2. Always pay bills on time.

A $200 Power bill, with a $50 late fee, and a $35 bounced check charge, followed by a $100 reconnect fee.... and your $200 power bill not only hurt your credit, but it cost you an extra $185, money that could have been used to help pay down other debts.   The world is far less expensive when you pay on-time.

3. Reduce your outstanding debt.

Even $10 extra with every payment.  The idea is lower the income to debt ratio.  Everything you pay, but don't consequently spend the new credit, will lower your credit score.  Making minimum credit card payments will sometimes not even cover your credit card fees and interest charges.  That means making minimum payments could even hurt you credit scores as the ratio of credit to available credit never changes, never goes down.

4.  Negotiate Credit Limits.

Here's a tricky one, because if a credit agrees to extend you more credit, the knee jerk want, is to go spend more money.  What we really want to see is a creditor granting you more credit, but you don't increase the amount of debt.  This increases the ratios of debt to available credit, and makes you look better on paper as you go and apply for that mortgage.

Try calling your credit card companies once or twice a year and asking for a credit increase.  A no answer won't hurt you, a Yes answer, will improve your credit score, as long as you are disciplined.

The simple truth is people with better credit scores, pay less for their credit.  If you were to diligently work on lowering your scores, and leveraging those scores into lower credit costs, the savings could be re-invested in paying off even more debt.. and in that never ending circle you find yourself on the road to responsible credit use, and a great credit score.

Keep Holliday Spending On Track

Intelligently managing your credit over the holiday season is the best way to make sure you don't have to deal with debt collection attorneys next year!  Here's 8 new tops for keeping your holiday budget under control.

Happy Holidays from Marcadis Singer, PA, Debt Collection Attorneys, Tampa and all of Florida.

1. Set a Budget for your holiday spending
2. Save beofre you shop
3. Make a list and keep to it
4. Pay cash, or pay credit cards in full.. pay 'em off!
5. Keep track of what you spend
6. Shop Early
7. Look for sales and discount ALL year
8. Look for ways to reduce your holiday travel expenses, either booking early, or last minute.

Have a joyous Holiday Season

Marcadis Singer, PA

Debt Collection Attorney's Tampa

http://www.marcadislaw.com

Progress in Debt Collections from the EU

Marcadis Singer PA are debt collection attorney's, focussing our efforts in Florida.

We have often been called on to help overseas firms collect debts from debtors that have moved to Florida.  Navigating the many complexities of laws in Florida can often be challenging, and we enjoy these partnerships.  Florida is known internationally as a Debtors State, appropriate legal counsel can help expedite the payment of debts, even to overseas companies.

With this experience in debt collection for overseas creditors, our interest was piqued, at a recent article about tremendous progress make by the European Commission Justice Ministers adoption of a proposal that will fundamentally shape the way cross-border collection of debts can be secured in the European Union.

Well done to our friends overseas, and we wish you the best of success as you work to reach final agreement on the cross-border recover of debts law.

A brief article can be found here.

http://www.neurope.eu/article/council-agrees-cross-border-recovery-debts