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.

Colorado Unemployment Rate Dropping, But Bankruptcy More Beneficial Than Ever

January 26th, 2012 by admin

Recent news reports suggest that Colorado’s unemployment rate dropped to 7.9 percent, continuing a steady drop, which is certainly good news.

Colorado Springs bankruptcy lawyers certainly believe that steady, well-paying jobs are the key to getting our national economy back on track. With industry leaving our country to do the work for less elsewhere and companies worried about hiding because of the tumultuous global economy, jobs are still fairly tough to find. Seasonal hiring helped, as the private sector was credited with bringing on 200,000 new people.

But even at 7.9 percent unemployment, which is better than the national average, that still leaves many people without work and steady income. Whether employed or not, months spent looking for work can lead people to considering Colorado Springs bankruptcy protection.

Much is made about bankruptcy and much of it is negative, due to successful lobbying on the part of the credit card companies. They despise bankruptcy because they know that people who file for bankruptcy are allowed to get rid of years’ worth of debt. And that means the debt they attempt to sell to investors is going to be less and less attractive if consumers are using these laws to their advantage.

According to The Denver Post, analysts believed 10,000 jobs would be added statewide in 2011, but they had hoped to see the number be closer to 17,700. The 7.9 percent rate in December was a slight drop from 8 percent in November. In December 2010, the unemployment rate was 8.9 percent. The national rate in December was 8.5 percent.

In 37 states, the unemployment rate dropped in December, while in 10 states it was unchanged. The rate only increased in three states, The Post reports.

When people spend months at a time looking for work, they may be forced to consider unemployment benefits from the government. While this small influx of money may be beneficial, it’s unlikely to maintain the person’s bills and monthly expenses. This leads to credit card debt and dependence on loans. That puts people deeper and deeper into debt, which requires a way out.

With credit scores dropping and few positive prospects in sight, Colorado Springs bankruptcy can help. Filing allows consumers to lose the debt that has given them great frustration and kept them held hostage to their lenders. It allows a fresh start and a way to move on with life without the baggage of debt.

Colorado Foreclosures Down, Still Among the Top 10 in U.S.

January 25th, 2012 by admin

Colorado foreclosure rates have dropped over the last year, but they are still among the highest in the country, according to a a recent report by the Denver Business Journal, which cited figures released by RealtyTrac.

The report outlines a nearly 30 percent decline in the number of foreclosures filed in 2010 compared to 2011. But still, our state is ranked 9th in the nation for the most foreclosures.

Our Colorado bankruptcy attorneys know that filing for bankruptcy can help you to stop a looming foreclosure of your home.

What many homeowners may not understand is that they don’t have to be current on their mortgages in order to save their home from foreclosure. Filing for a Chapter 13 bankruptcy in Colorado can allow you to pay your past-due debt over a 3 to 5-year period, rather than all upfront.

This is an option best-discussed with a legal expert with a great deal of experience, as well as the resources to challenge large banks, which often are more interested in their bottom dollar rather than keeping people in their homes.

The Journal’s report indicates that there were nearly 40,000 foreclosure filings last year – or one for every 56 housing properties in the state.

That’s a staggering figure.

Perhaps more encouraging is that in December, there were roughly 3,500 foreclosure filings, or an average of 1 property for every 620 – a 7 percent decline from November.

Nationally, the numbers appear to be falling at a faster clip. The Journal reported that there were 1.9 million properties foreclosed on across the country last year, representing a 34 percent drop from the year before and the lowest number of filings in five years.

But as RealtyTrac’s CEO told the Journal’s reporter, the dip in foreclosures likely has more to do with legal entanglements than an improved economy.

“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” Moore told the publication.

He added that a lack of clarity with regard to much of the documentation, as well as legal issues that plague the foreclosure industry, means that the entire process is dysfunctional and inefficient.

Boost in Colorado Springs Consumer Debt Highest in a Decade, Though Bankruptcy Can Help

January 20th, 2012 by admin

USA Today is reporting that consumers increased their debt in November by more than $20 billion, the largest monthly increase in a decade.

What this shows our Colorado Springs bankruptcy lawyers is not that the economy is in a better position than it has been in years, but more likely that consumers used their credit cards more during the winter holiday season.

For those whose expenses are in tough shape, bankruptcy in Colorado Springs can help them get out from the predatory practices of credit card companies. These businesses consistently send out invitations for consumers to get their plastic, even if it’s not in their best interests.

They offer “perks” and “rewards” that are highly unattainable or require consumers to spend big and pay it off quickly. And if a person misses a payment or pays it late, they are instantly slammed with late fees and hidden fees that consumers didn’t even know existed. Companies can then try to increase interest rates, just another tactic to try to keep consumers in their grasp as they battle with debt.

USA Today reports that consumers added $20 billion in debt in November, the biggest monthly jump in nearly a decade. Not including mortgage debt, Americans owe $2.48 trillion. Consumer credit increased at an annual rate of 10 percent, while credit card debt increased at an annual rate of 8.5 percent.

The November 2011 increase was the largest since November 2001, when consumers borrowed $28 billion just a few months after the September 11 terrorist attacks.

Some analysts believe that this shows consumers are feeling more confident in the economy, which has had modest gains in recent months. Our Colorado Springs bankruptcy lawyers believe it may also have to do with the ongoing unemployment struggles that many Americans are dealing with. The less money they have, the more they rely on credit card loans.

Consumers should be glad to know that filing for bankruptcy in Colorado Springs can wipe out credit card debt, regardless of the amount. This is an important tool to utilize for consumers who are behind on payments and don’t see help in sight.

If you are struggling with debt and need to speak with an experienced Colorado Springs bankruptcy lawyer, contact attorney Stephen H. Swift at 866-893-2440 or 719-359-8179 for a free initial consultation.

Additional Resources:

November boost in consumer debt is most in 10 years, by Michael Winter, USA Today

Can Bankruptcy in Colorado Springs Help After a Divorce?

January 18th, 2012 by admin

What may come to mind for many people considering divorce in Colorado is what will happen with the kids, who will get the home and how will I make ends meet after the divorce?

But what they should also consider is whether a Colorado Springs bankruptcy could actually help them during the divorce process. Our Colorado Springs bankruptcy lawyers have been able to help many clients who are going through a difficult divorce and who realize that filing for bankruptcy provides them with financial help at a difficult time.

While people consider how assets will be split, what about debts? Unless it is paid off, the house is likely more of a debt than an asset, plus there are car payments, credit card bills, utilities, memberships and other bills that will stack up.

This falls into the field of expertise for a divorce lawyer. But perhaps consulting with a Colorado Springs bankruptcy lawyer, who has the skills to assess your financial situation, would be a smart move if you are considering or in the middle of a divorce.

Money and divorce go hand and hand. And while there are certainly emotional issues that must be taken into consideration during this difficult and life-changing time, a spouse must also be diligently looking out for their financial prospects after a divorce.

Consider recent statistics from the U.S. Census Bureau, which reported that Colorado’s divorce rate is far higher than the national average and among the highest in the country. In 2009, the average divorce rate for men was 9.2 percent and for women, it was 9.7 percent. In Colorado, the divorce rate for men was 11.6 percent and for women it was 9.4 percent. So, it appears women in Colorado divorce at the national average, but men are far above the national average with widowhood making up the difference.

For couples willing to work together to this end, filing for a joint bankruptcy in Colorado Springs before or during a divorce may be beneficial to both spouses. Often, though, a divorcee may have to make this decision on their own after the divorce is finalized.

Colorado Springs Bankruptcy Can Help Students Struggling With Debt

January 14th, 2012 by admin

College students, especially those at the University of Colorado at Colorado Springs, have it difficult these days because they are thrust into debt with job prospects looking bleak.

The cost of higher education in this country has continued to rise, even as more and more students are seeking education after high school than decades earlier. And because of the recession, there are fewer jobs available for students while they’re in school and after they graduate.

But filing for bankruptcy in Colorado Springs may be an option worth exploring for some students. While bankruptcy laws currently don’t allow for student loans to be discharged during bankruptcy proceedings — though some lawmakers are trying to change that — it can allow students the financial freedom to pay off those loans. Our Colorado Springs bankruptcy lawyers recognize that bankruptcy is a big step and one that shouldn’t be taken lightly, but there are some advantages.

For one, let’s look at the recent program put into place by the Obama administration that allows students to make income-based payments and if income changes, they can modify the loans. After two decades, the balance of the loan can be forgiven.

As a recent USA Today article points out, this program doesn’t do anything for students who have private loans, only those who have federal-backed loans. And experts say that private lenders aren’t nearly as forgiving as federal lenders. Sources quoted in the article state that they are rarely able to get a loan modification or any type of help for people who are struggling with debt.

This is where bankruptcy may be a strong option. While it may be difficult to get the actual student loan debt discharged through bankruptcy, all other unsecured loan debt likely can be wiped clean. This would then allow the student, or recent graduate, to cancel making payments on other loans, which frees them up to continue making payments on their college loans.

In some rare cases, a Colorado Springs bankruptcy lawyer may be able to find a way for those student loans to be discharged, but it depends on special circumstances. Either way, this can be an option to consider, especially if finding a job proves difficult and debt stacks up.

Additional Resources:

Few options on private student loan aid, by Sandra Block, USA Today

Colorado Springs Foreclosure Numbers Dip, But Bankruptcy Can Still Help Distressed Homeowners

January 12th, 2012 by admin

Foreclosure numbers in Colorado fell in 2011. But most experts believe this has less to do with the real estate market recovering and more to do with a delay in filings by the country’s biggest banks.

Some people believe they can fight back against banks by attempting to show that the bank filing the foreclosure doesn’t actually own the note. But our Colorado Springs bankruptcy lawyers believe there is another option that is more beneficial to Colorado Springs homeowners.

That option is filing for bankruptcy in Colorado Springs.

Did you know that filing for bankruptcy immediately stops a foreclosure? Whether your home has just received its first default notice or is slated to be sold at auction, filing for bankruptcy halts the process.

This can buy homeowners valuable time while they attempt to get their finances in order. Through the bankruptcy process, consumers can discharge their outstanding debt, such as from credit cards, medical bills and other loans, which can enable them to again make house payments.

Or, perhaps homeowners are currently in a house that has an underwater mortgage, meaning they are paying more on the loan than the house is worth. Many people are in that position. Filing for bankruptcy may allow the homeowner to get rid of their debt and their house after the foreclosure process has gone through.

The Denver Business Journal recently reported that Colorado saw a 28.6 percent dip in properties with foreclosure filings from 2010 to 2011, but the state still had one of the top 10 highest foreclosure rates nationwide, foreclosure tracking company RealtyTrac reported.

One out of every 56 houses had a foreclosure notice last year, totaling 38,557 properties. In December, one in every 620 properties went into foreclosure, a 7.29 percent drop from November.

Most analysts believe that foreclosure numbers dropped in 2011 because big banks in 2010 halted their foreclosure practices after investigators found out they were using “robo-signing” tactics and other unlawful means to take away people’s homes.

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