Denver Debt Piles Up When Consumers Can’t Save

February 29th, 2012 by admin

Nearly half of all Americans aren’t able to save up as much money as they should, often necessitating debt relief in Denver and elsewhere in the country.

This is according to a recent poll which found about 45 percent of people have less savings than credit card debt. Denver debt relief attorneys know that the economy is inching toward improvement, but many people are so deep in debt that they find it nearly impossible to claw their way out.

This most recent survey, from Bankrate.com, analyzed the spending habits of more than 1,000 adults, and looked at how much people have been able to save. What they found is that just 54 percent of U.S. consumers have more savings in case of an emergency than they do credit card debt. If and when an unplanned event or emergency happens, half the people in the country will be in serious financial trouble.

What’s more, about 16 percent don’t have any savings.

These figures represent about a 2 percent improvement over last year – not much to celebrate.

This kind of financial insecurity is harmful to the economy overall, experts say, because when people aren’t able to save, they aren’t likely to spend on more than what they need day to day. If they do, they are risking their own financial future, as having money stored away for an emergency can be critical in helping you avoid finding yourself crushed by debt.

Meanwhile, another survey found that Americans are having a hard time saving for retirement. In fact, almost half the country isn’t saving enough to allow for a decent standard of living once they are no longer able to work. That survey also found that a third of Americans don’t have enough to cover an unexpected doctor’s visit or car repair. On average as a country, we’re saving less than we used to.

Stephen Brobeck, the executive director of America Saves, said what this all collectively illustrates is that the recession has ended for a large number of families, particularly those in the lower income brackets. Working families are still struggling with a sagging housing market, sky-high unemployment rates and incomes that have stayed stagnant.

An experienced Denver debt relief attorney can help.

Denver Debt Relief Needed Because Banks Target Vulnerable

February 25th, 2012 by admin

Banks continue to reach into consumers’ pockets for anything they can, regardless of whether it is going to require people to seek debt relief in Colorado or elsewhere as a result.

Now, Denver debt relief attorneys are somewhat encouraged to hear of an announcement made by the U.S. Consumer Bureau chief, who says the agency plans to go after banks for their outrageous overdraft protection fees.

Chief Richard Cordray, who recently took over the post, said the agency is also going to be asking for thoughts from the general public on how these fees are worded on checking account statements.

Cordray was quoted by CNN Money as saying that the way banks initiate overdraft fees has resulted in severe financial harm to people who are often the least able to afford it.

Banks have tried to defend themselves by saying the overdraft fees are put in place to spare their customers from being embarrassed when a purchase is denied because there isn’t enough money in their account. But when that transaction is completed, the person is hit with penalty fees that generally range between $30 and $35 – sometimes for a purchase that may be just a few dollars. The example given was when a $3 cup of coffee becomes a $40 cup of coffee, due to overdraft fees.

Recent research by the Federal Insurance Corp. determined that in 2008, people who overdrew their accounts more than 20 times annually paid more than $1,600 in overdraft penalties. This is especially alarming when you consider that someone who is likely to overdraw their account that many times is probably someone who is struggling with debt in Denver or elsewhere.

That report spurred action that caused the banks to ask whether customers actually want overdraft protection – instead of signing them up automatically – but banks can still automatically enroll people for overdraft protection for online bills.

Another aspect that the bureau intends to look at is the common bank practice of clearing large purchases before smaller ones. This is a banking strategy that makes it more likely that a customer will overdraft on several smaller purchases – triggering even more fees.

The final part of the bureau’s investigation is going to focus on why so many of these fees come down especially hard on younger and low-income consumers. In fact, nearly 47 percent of younger bank customers were at some point slammed with overdraft fees. Of those, more than 15 percent had higher than 10 overdrafts annually.

Colorado Foreclosure Decline: More to the Story

February 22nd, 2012 by admin

Recent media reports indicating that Colorado foreclosures are on the decline don’t tell the whole story.

Colorado foreclosure attorneys know there is much more to it, and many families continue to suffer as the result of greedy banks and careless politicians.

According to a story by Reporter Heather Draper of the Denver Business Journal, the urban counties in Colorado have seen a dip in the numbers of foreclosure sales and filings this past January, as compared to a year ago.

Draper cites the new figures released by the state’s division of housing, which reports that foreclosure filings have dropped nearly 30 percent since last year, from 2,699 in January 2011 to 1,939 this January. She also cites foreclosure auction sales, which dipped from 1,499 last January to 1,150 this January.

While all this might be true – and encouraging if it continues on this same slope – we must remember that this report is only comparing two, 30-day time frames. A 23 to 30 percent decrease sounds like a lot, but we’re not talking about this in terms of an entire year.

In truth, the housing crisis in which this country finds itself embroiled is far from over. And what many homeowners might not realize is that filing for bankruptcy can actually help by allowing the opportunity to shed their second and third mortgages on homes that are underwater anyway. Filing for bankruptcy will also halt the foreclosure process, and potentially give you and your family the opportunity to stay in your home, at least temporarily, until you can work with an attorney to determine the next step.

One misconception people have is that they have to be current on their mortgage payments in order to keep their home. This is not always true. A Colorado foreclosure attorney can help you sort through the legal mess.

According to the Journal, all counties except Broomfield showed a decrease in foreclosure auction sales. It’s important to note, however, that some of those counties saw only minimal slides, like Mesa County which reported a 2.5 percent decline. A percentage like that is within the margin of error, and therefore not definitive enough to say whether things are actually improving or not.

Foreclosure can be a complicated process, but with the help of an experienced attorney, it can be far less stressful.

Student Loans Require Colorado Debt Relief

February 20th, 2012 by admin

College students know that getting a decent education is not going to be a cakewalk, either in terms of their studies or their finances. Unlike in years past, however, students are more frequently coming to expect that their college debt will hound them for years, causing them to likely seek debt relief in Colorado and across the country.

Colorado debt relief attorneys know that for some, it has caused them to put off college until the economy improves, while others choose never to go at all.

A number of recent media reports indicate that student loan debt is a problem that has the potential to bubble over into the next major “bust” for our economy.

Standard & Poor’s has just released a report detailing the problem, which involves higher education institutions that are receiving fewer endowments and students who are graduating with minimal job prospects, and therefore little hope of paying back their loans. In fact, the Project on Student Debt determined that three years ago, nearly 70 percent of college students were strapped with student loan debt after graduation. For students who attend for-profit or private schools, as opposed to state-run universities, the statistics are even higher.

Students at public universities typically run an average debt of about $20,000, while students at private universities run an average debt of between $28,000 and $33,000.

Last year, a similar report was released by Moody’s Analytics, which found that while other sectors of the economy are showing improved health, the student loan sector has not. One of the main problems is that institutions have unrealistic expectations of how much a student will make upon graduation. If they aren’t making much, they won’t be able to afford to pay down their debt.

This is why having an experienced Colorado debt relief attorney is so critical. Sorting through a mountain of bill notices and harassment from collectors is extremely stressful especially when, through no fault of your own, you’re either unemployed or under-employed. This is apparently accounting for an increasing number of our youth, as the National Association of Consumer Bankruptcy Attorneys recently conducted a survey, which found that four out of five bankruptcy attorneys in Colorado and throughout the country are taking on clients for whom student debt is a serious problem.

Credit Card Company Preys on Poor-Credit Consumers in Colorado Springs

February 13th, 2012 by admin

Imagine a credit card that charged a 36 percent APR, slapped you with a fee when your credit limit increased and cost you $400 a year just to own — yet, the company tells you they’re doing you a favor.

It’s a reality.

Our Colorado Springs bankruptcy attorneys know that credit cards with predatory lending practices are one of the main reasons so many people get embroiled in debt. We previously discussed how many people are choosing to avoid using credit cards in order to avoid having to seek debt relief or file for a Colorado Springs bankruptcy. This card represents one of the most shameful examples of why people are backing away.

The platinum card, distributed by First Premier, (FIRST PREMIER, if you can dig it) already has nearly 3 million customers, according to CNNMoney, and it solicits another 1.5 million every month. The company’s CEO claims the business is doing people a favor, because the card is aimed at people with poor credit, who might otherwise not be able to get a credit card. The fees are justified, he said, because of the risk the company is taking on.

One has to wonder, though, whether customers who are already struggling financially could possibly beneift from being slammed with such outrageous fees.

The CEO of CardHub, which allows users to compare credit cards online before applying, was quoted by CNNMoney as saying that perhaps the worst of those fees involves a credit limit increase fee, which charges the customer 25 percent of whatever amount the limit is increased by. So if your spending limit is increased by $200, you pay an automatic $50 fee. Another online credit card comparison site CEO says he knows of no other company that does that.

“While (First Premier) is bragging about helping people back on their feet, they’re in fact beating people when they’re down,” he said.

We understand that credit cards can be very useful – they can help improve your credit score and sometimes, you can’t make major purchases unless you have some credit history. But a card like this isn’t your only option if your credit is bad.

One different option is a secured card, which come with lower fees because the card holder has to deposit their own money into the account. That mitigates the lender’s risk, without forcing the card holder to be shackled by fees.

Credit Cards Declined by Colorado Springs Consumers

February 10th, 2012 by admin

Credit cards are more and more frequently being declined – by consumers.

Recent reports out of Great Britain echo the consumer trend that has been continuing in U.S., with people seeking debt relief by unburdening themselves from lending institutions that often jack up interest rates to boost their bottom line.

While it might seem that a floundering global economy might contribute to a rise in credit card usage, what many people seeking debt relief in Colorado and elsewhere are finding is that owning a credit card simply isn’t worth it.

Our Colorado Springs debt relief attorneys know that credit cards are, in fact, one of the leading causes of bankruptcy in the U.S. Most Americans, according to CNNMoney, have racked up an average of more than $10,000 in credit card debt.

USA Today reported that revolving credit, which is comprised mostly of credit card debt, fell by 20 percent in 2010, and new credit card accounts dropped nearly 50 percent from 2008 to 2010.

Often, the decision stems from exasperation over the standards by which the credit card industry governs itself, which are often seen as unfair to consumers. These include predatory lending and a tendency to hike interest rates to 20 or 30 percent at even the smallest hint of financial trouble.

Congress passed a law in 2009 that is supposed to make it difficult for companies to charge certain types of fees or raise interest rates on balances that already exist. Leading up to those changes, though, many companies aggressively increased their rates, even for customers who were paying them on time.

Now in Europe, and particularly in England, credit card usage is facing what is being called a “mid-life crisis,” with more people turning instead to digital payments, payday loans and debit cards.

Even for those who have decided not to take on more credit card debt, digging their way out of the trench they are already in can be cumbersome. That’s where an attorney experienced in the debt relief process can be a lifesaver.

Here are some basic tips to helping you manage your debt:

1. Some borrowing, such as for a home or college, can be beneficial. But be mindful of how much you are borrowing, and don’t accept more than what you can afford to pay back.

2. Keep your spending in check. People often spend outside of their means, and quickly end up with an overwhelming amount of debt. Write down your monthly expenses, and stick to your budget.

3. Pay off the debts with the highest interest rates first.

4. Pay more than the minimum monthly balance on your credit cards. Otherwise, you’ll barely be making a dent in the principal amount you owe.

5. Seek help as soon as you realize you need it. A reputable Colorado Springs debt relief counselor can help you get your bills consolidated and help you better manage your finances.

Good News for Colorado Springs Foreclosure Victims

February 7th, 2012 by admin

If Democratic state lawmakers are successful, the simple signature of a bank-employed attorney will no longer be enough to push through foreclosures in Colorado Springs or anywhere in Colorado.

A new bill targets a years-long practice in Colorado that unfairly skews the benefit toward large financial institutions. Under the current system, attorneys paid by banks are allowed to rubber stamp the bank’s right to pull a home out from underneath its owner – without having the proper mortgage documents to back it up. In the last few years, this has meant a windfall for bankers and led to a crisis whereby people were forcibly removed from their homes by a lender that may not have had the right to do so.

The problem started in 2006, with a change to state law that seemed to go largely unnoticed. It allowed banks to take a person’s home with scant evidence, aside from the signature of the bank’s attorney.

While the entire U.S. banking industry has come under scrutiny for less-than-savory practices throughout the housing bubble burst, our Colorado Springs foreclosure attorneys recognize that our state has not done nearly enough to protect homeowners.

The Denver Post reports that many banks are being scrutinized because for decades, lenders traded, bought and sold mortgages as securities. However, those deals were rarely recorded in property records. Then, when homeowners began getting notices of foreclosure, the paperwork originated from a bank they had never done business with. For many, the question of who actually owned the rights to the home loomed large. As Colorado homeowners tried to sort through a convoluted paper trail, banks easily claimed their own rights with the stroke of a pen.

Rep. Beth McCann of Denver, who is sponsoring the bill, told the Post that the integrity of the foreclosure process is at stake.

“This bill prevents a lawyer from saying a bank can foreclose simply on their say-so,” she told the paper. “That’s a huge presumption.”

Indeed.

Another aspect of the foreclosure process that HB12-115 addresses is how judges review individual cases. Right now, judges almost always approve auctions. The only thing a judge really analyzes in a case is whether the homeowner hasn’t paid and whether he or she is in the military. They don’t look at whether the bank or lender requesting the auction is actually authorized to do so.

It wasn’t always this way. A 1989 decision by the state’s supreme court gave Colorado homeowners the right to challenge a bank’s standing in a foreclosure proceeding. The 2006 legislation, however, overruled that right.

Steps to Reducing the Stress of Colorado Springs Bankruptcy, Debt, Foreclosure

February 1st, 2012 by admin

With the economy continuing on a downward spiral, millions of people are battling debt, foreclosure and bankruptcy in Colorado Springs and across the country. For many people, the stress can be overwhelming.

Medical experts have long warned that stress is a major catalyst for a number of serious and potentially life-threatening physical ailments, including weight gain, heart disease, gum disease, gastrointestinal problems and more.

It’s a vicious cycle because the more stressed you are, the more your health suffers and the more you end up shelling out on health care – almost twice as much as someone who is carefree, according to researchers with the Health Enhancement Research Organization.

Many of the financial troubles you face can be addressed with help from an experienced Colorado bankruptcy attorney. Tackling your personal financial struggles with someone who has helped thousands of people in similar situations will not only augment the balance on your bank statements, it will also improve your well-being.

In addition to taking this crucial step to free yourself of these financial burdens, there are other steps you can take to alleviate these concerns.

First, seek help from your employer. According to a 2010 study by Buck Consultants, nearly three-quarters of all U.S. employers offer some form of wellness program, which encompass everything from discounted yoga classes to reimbursements for gym memberships. Stepping up your work-out routine will help to clear your mind and give you confidence to keep that same momentum in other aspects of your life.

If your company doesn’t offer this type of reimbursement, look on sites like Groupon or search for trial memberships that might give you a few weeks free. Many gyms also want new customers, so they may be willing to cut you a deal directly if you ask.

Secondly, consider talking with a counselor. Many employers offer free or reduced-cost access to counselors on a weekly or monthly basis. Some also offer group sessions, which specifically address techniques to manage stress.

And finally, take some time each day to breathe deeply. A recent study conducted by researchers at Harvard found that meditating each day improves a person’s memory and reduces stress. Even a few minutes a day can make a huge difference.

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