Colorado Springs Bankruptcy Attorneys on the 7 Deadly Sins of Credit Card Usage

Colorado Springs credit card debt is easily one of the main sources of financial upheaval.

Of course, Colorado Springs debt relief attorneys know that they can be a great asset if you use them the right way. However, when times are tough, some see them as easy access to money they don’t have. But that’s the problem: If you don’t have the money know, chances are you aren’t going to have three times the money next month when the bill arrives. This is where people find themselves in deep trouble.

MSN Money recently had an interesting take on the whole issue, by defining the “Seven Deadly Sins” of credit card usage. The advice is worth heeding.

1. Gluttony. Mostly, this involves maxing out your credit cards or borrowing just about up to your limit. For example, if the issuer of the card offers you a $5,000 limit, that doesn’t mean you should take out $4,500 of it just because you can. What’s more, when you take out that much, you risk harming your credit score. It increases your debt-to-income ratio, and makes it appear as if you are high-risk.

2. Pride. Many people simply assume that their credit score is Ok, so they don’t bother checking it. However, in a lot of cases, errors are common. Sometimes, creditors mark that you are delinquent on a payment, when in fact you aren’t. It’s important to know where you stand.

3. Lust. This comes in the form of applying for more credit than you can actually afford. Plus, the more credit card inquiries you have, the worse your credit score will be.

4. Greed. Cash advances on credit cards are usually a bad idea. The interest rates on these transactions can sometimes top 25 percent. Take out only what you need – and know that you can pay back in a timely manner.

5. Envy. When you apply for a credit card that is above what you can afford. A lot of times, platinum or gold cards come with astronomically high annual fees. They only really pay off if you travel enough to earn the rewards.

6. Wrath. There may be a temptation to cut up all your credit cards if you’ve been badly burned by one company. However, this is a bad idea because it won’t give you a chance to rebuild your credit.

7. Sloth. If you don’t check your monthly statements, you risk the possibility that you could be paying for things that you previously signed up for and have since forgotten about.

Colorado Bankruptcy: Wisely Rebuild Your Credit

Some people make the mistake of swearing off credit cards in the wake of a Colorado bankruptcy.

This is not only unnecessary, Colorado bankruptcy attorneys know it’s probably going to hurt you in the long-run because you need to rebuild your credit in order to earn consideration of future loans on a vehicle, mortgage and other items.

The key is to be wise about and protecting your score and your money. A Colorado bankruptcy allows you a fresh start, and a skilled attorney can help guide you through the process. It’s you, however, who will have to call the shots and make wise decisions because the truth of the matter is, even with the Credit CARD Act (Credit Card Accountability, Responsibility and Disclosure Act), there are still a number of ways that credit card companies and banks can take advantage of you.

A few things to consider as you start on the path of rebuilding your finances:

1. Don’t put more on the card than what you can pay off in a short period of time. This will not only help you to slowly boost your score, it’s going to give you more leverage with the company if you’re unhappy about a rate increase or an annual fee.

2. Keep an eye on your credit score and your credit history. Make sure things are up-to-date and you aren’t a victim of any sort of fraud. Even a small, typographical error can bring down your score dramatically. It’s a good idea to review it about three times a year.

3. Know what kind of protections your card offers – and what it doesn’t. Sometimes, cards will offer extended warranties if your purchase is stolen or accidentally damaged. Of course, the card companies aren’t going to highlight this to you, so you’ll have to look through the disclosure statements to see.

4. Go over your credit card statement for errors. Billing errors are common, and fraud can happen to anyone.

5. Protect yourself from online identity fraud by making sure you are entering sensitive information into the company’s secure database and don’t give away your card number – or any other personal information – without being confident in the site.

Colorado Debt Relief Watch: Stopping Harassing Creditor Calls

In this second-half of a two-part series on dealing with personal debt, Colorado Springs debt-relief lawyers examine the federal guidelines for what constitutes debt collection “harassment” and offer tips for Colorado consumers dealing with seemingly unrelenting creditor calls.

According to the Fair Debt Collection Practices Act, a debt collector may not “harass, oppress, or abuse any person in connection with the collection of a debt”. Among other things, this means in an effort to collect a debt, a creditor may not:
~ threaten violence,
~ use profane or obscene language,
~ publish the names of consumers who have unpaid debts (except to a credit reporting agency),
~ use false, deceptive, or misleading information in an attempt to collect a debt, or
~ threaten action that is either not legally permitted or not intended to be pursued.

As reported by Investopedia, abusive debt collectors capitalize on consumer fear and ignorance, banking on the notion that the average debt holder doesn’t realize they have considerable rights when it comes to how debts can be collected. With that in mind, the Federal Trade Commission arms consumers with one tool that can stop the constant calling  – the certified letter.

According to the FTC, if a consumer has communicated by phone with a debt collector and now wishes to cease contact, sending a ‘cease-and-desist’ letter – via certified mail, return receipt requested – is the first step to stopping contact.

Upon receipt, the FTC reports that a debt collector can only continue contact for two reasons:
~ to advise a consumer there will be no further contact, and,
~ to advise a consumer of creditor plans to take legal action.

While a consumer can still be sued for the balance of a debt, this step should at least stop contact.

For many families seeking Colorado debt relief, stopping harassing creditor calls is the first step on a path back to personal financial security. If you or someone you know is feeling overwhelmed by creditor calls, speaking with an experienced Colorado bankruptcy attorney can help you achieve debt relief. For a free consultation, call (719) 359-8179 or toll free at (866) 893-2550.

Denver Debt-Relief Watch: Debt Collection Practices Top List of Colorado Consumer Complaints

Denver bankruptcy attorneys were not surprised to read that a 2011 national consumer complaint survey found that out of 1.8 million consumer complaints, debt collection trailed only identity theft for lead complaint category. In this two-part series on dealing with personal debt, Colorado debt-relief attorneys break down the numbers for common consumer complaints and offer tips on dealing with debt collection calls.

According to the Federal Trade Commission report, identity theft complaints captured 15 percent of all consumer complaints filed in 2011 with debt collection claiming second place at 10 percent. Nationally, the ‘Top 10′ consumer complaints and their rankings are as follows:
1. Identity Theft: 279,156 complaints (15 percent).
2. Debt Collection: 180,928 complaints (10 percent).
3. Prizes, Sweepstakes and Lotteries: 100,208 complaints (6 percent).
4. Shop-At-Home and Catalog Sales: 98,306 complaints (5 percent).
5. Banks and Lenders: 89,341 complaints (5 percent).
6. Internet Services: 81,805 complaints (5 percent).
7. Auto-Related: 77,435 complaints (4 percent).
8. Impostor Scams: 73,281 complaints (4 percent).
9. Telephone and Mobile Services: 70,024 complaints (4 percent).
10. Advance-Fee Loans and Credit Protection/Repair: 47,414 complaints (3 percent).

Further, the FTC report indicates that across Colorado, consumers registered 28,854 complaints (33,010 if you include identity theft complaints) in 2011. Of those, debt collection topped the list by a comfortable margin. Statewide, the ‘Top 10′ consumer complaints and their rankings are as follows:
1. Debt Collection: 3,210 complaints (11 percent).
2. Internet Services: 1,966 complaints (7 percent).
3. Shop-at-Home and Catalog Sales: 1,928 complaints (7 percent).
4. Impostor Scams: 1,881 complaints (7 percent).
5. Banks and Lenders: 1,705 complaints (6 percent).
6. Auto-Related: 1,456 complaints (5 percent).
7. Prizes, Sweepstakes and Lotteries: 1,327 complaints (5 percent).
8. Telephone and Mobile Services: 1,176 complaints (4 percent).
9. Advance-Fee Loans and Credit Protection/Repair: 1,021 complaints (4 percent).
10. Credit Cards: 931 complaints (3 percent).

According to the Coloradoan, Colorado had the highest per capita consumer complaint rate with 573.7 complaints filed per 100,000 residents, and was followed by Delaware and Maryland, respectively. At least one Colorado-based consumer expert attributes the high number of statewide complaint filings to better consumer awareness.

If you or someone you know has been plagued with harassing debt collection calls, Colorado Springs bankruptcy attorney Stephen H. Swift can help you navigate the bankruptcy process and reduce the financial stress facing many Colorado residents today. To schedule a free confidential consultation, call (719) 359-8179 or toll free at (866) 893-2440.

Flip-Flopping Gas Prices Offer No Relief From Colorado Personal Bankruptcy

For Colorado Springs debt-relief lawyers, a pair of competing headlines about statewide gas prices serve as a perfect illustration of just how complex, uncertain and stressful the economic recovery remains for many struggling families who are overwhelmed by debt and thinking about filing for Colorado personal bankruptcy. 

On March 18, the Denver Post reported that Metro Denver recorded the lowest gasoline prices of any major city in the country last week, registering a whopping $1.23 difference in per gallon prices with Los Angeles, where gas prices were highest.

But just one day later, an article in the Reporter Herald revealed a recent and dramatic 4.6 percent spike in statewide gas prices. In Fort Collins alone, gas climbed more than $0.15 per gallon in one week.

TIME offers a few tips for Colorado motorists hoping to save pennies at the pump:
~ Invest the $40-55 for annual membership a big-box retailer (for example: Costco or Sam’s Club) that offers discounted gas.
~ Paying cash inside (instead of using your credit card at the pump) can mean up to $0.10 per gallon in savings at stations where credit card payments come with a premium price tag.
~ Go the there’s-an-app-for-that route by downloading a gas-price checker app, or turn to websites like gasbuddy.com to find the cheapest gas in town.

According to the American Automobile Association, so far this week Colorado per gallon prices for diesel, premium, mid-grade and regular fuel are highest in Vail and lowest in Fort Collins. With that said, Denver and Boulder have tied for lowest premium price at $3.88 per gallon. (Meanwhile in Vail, premium gas tops $4.26 per gallon).

Denver bankruptcy attorneys know that for many Colorado families fighting to make ends meet, spending a few cents more (or less) at the pump can be the difference between staying in the black or reaching a personal financial crisis. For nearly three decades, the Law Office of Stephen H. Swift has helped thousands of Colorado families obtain debt relief. To schedule a free initial consultation to discuss what we can do to help you, call (719) 359-8179.

Colorado Debt Relief Watch: Legislation Aims to Reduce Medical Bill Stress

As our Colorado debt-relief attorneys discussed in an earlier post to the Swift Law blog, whether a Colorado family has health insurance coverage or not, the ever-increasing cost of medical care continues to bankrupt families across the state and nationwide. In 2007 alone, crushing medical bill debt was tied to more than 60 percent of all personal bankruptcy filings in the United States.

With that said, the Colorado legislature is hoping to change this grim statistic. The Denver Business Journal reports that Senate Bill 134, also known as the “hospital charity-care bill”, recently passed the Colorado Senate with an overwhelming majority vote of 28-6.

Bill sponsor, Sen. Irene Aguilar (D-Denver) — who is also a practicing medical doctor — told ABC-7 News that she proposed the bill on behalf of the 829,000 Coloradans don’t have health insurance: “A lot of these people are middle-class Americans who are very responsible with their bills, and sometimes they make medical decisions based on the fact they they’re afraid of a bill from the hospital.”

Key points of SB-134 include:
~ requiring hospitals to provide patients with clear and accessible information about their charity, financial aid, payment plan, and cash discount programs,
~ directing that hospitals turn to collection agencies only after all other options of medical bill debt collection have been exhausted, and
~ prohibiting hospitals from billing patients more than the lowest cost they bill insurance companies for the same procedure.

According to Colorado Public News, Colorado hospitals currently charge uninsured accounts nearly 400 percent of costs on average while a private insurer — thanks to group bargaining — is being billed at closer to 100-150 percent of costs for the same services.

Denver debt-relief lawyers with the Law Office of Stephen H. Swift understand that even hard-working Colorado families can find themselves overwhelmed by unmanageable (and often unexpected) medical bill debts. Call (719) 359-8179 or toll-free at (866) 893-2440 today to schedule a free consultation.

For Those Seeking Colorado Debt Relief, Mounting Medical Bills a Stressor

Because reports of skyrocketing medical costs span both statewide and national news, Denver debt-relief attorneys were not surprised when a recent Centers for Disease Control and Prevention national health survey revealed that one-in-three American families are feeling the financial pinch of outstanding medical bills.

Of that same group, the CDC reports that one-in-five families are struggling to pay down their outstanding medical bills, while one-in-10 families are simply unable to pay any portion of medical debts at all.

Overall, MSNBC reports that nearly 39 percent of families with children aged 17 and younger are experiencing financial stress linked to medical care, including bills that are being paid down over time and bills they just can’t pay, period.

In one notable — if not ironic and certainly tragic — instance, South Florida small-business owner Mary Brown, who is perhaps best known for her outspoken stance against the Affordable Care Act, is herself now seeking personal bankruptcy protection. The Kansas City-Star reports that about $4,500 of her $60,000 consumer debt is unpaid medical bills.

Meanwhile across the country, the Sacramento Bee reports that the number of Northern California hospital stays resulting in charges of $1 million or more rose from 430 in 2000 to almost 3,000 during 2010. The article spotlights three achingly-familiar storylines:
~ a gas station attendant diagnosed with liver cancer,
~ a new mom whose premature son has spent the first four-and-a-half months of his life in the hospital, and
~ the fast-food worker whose near-fatal car accident has left him $1.3 million in debt.

Hospital officials and health experts both say they expect the growth in million-dollar hospital charges to continue thanks, in part, to an exploding aging population reluctant to seek medical care until a health issue has reached a critical stage. Pair that with sharp and ongoing increases in medical staff pay; costly, necessary and frequent add-ons to infrastructure (think: high-tech/high-dollar equipment); and, the fact that hospitals charge a premium for critical-care services, and the cost-of-care boom makes sense.

Colorado bankruptcy lawyers know that for families struggling to stay solvent, health issues can be exacerbated by the stress of how to pay for them. We are here to help. For a free initial consultation with the Law Office of Stephen H. Swift, call (719) 359-8179 or toll free at (866) 893-2440, today.

Denver Debt-Relief Tips: Teaching Minors About Money Matters

In the first half of our two-part series on young Americans and debt, Denver debt-relief attorneys identified key financial stressors currently plaguing young Americans aged 34 and younger. These include:

~ a job market unwelcoming to recent college grads (one recent Pew Research Center reports reveals that in 2011, the unemployment rate among 18- to 24-year-olds was 16.3 percent, 6 percent higher than among 25- to 29-year-olds (10.3 percent), and more than 7.5 percent higher than among 3o to 34-year-olds),
~ student loan debt in excess of $25,000 per 2010 college graduate, and
~ the accumulation and persistence of other personal debt — such as car payments, outstanding medical bills, and large balances on multiple credit cards.

In this post, Colorado debt-relief lawyers focus on turning our collective financial stress into a teachable moment.

The Denver Post reports that many minor-aged children aren’t just living with parents struggling to avoid harassing collection calls, foreclosure and bankruptcy, but that they themselves are also drowning in debt.

Industry experts suggest that to help teens avoid their own credit nightmares, lessons on spending and saving should happen alongside teaching basic hygiene. One consumer advocate, FoolProof, has gone so far as to set up lesson plans that teach young earners about money and financial responsibility. Their interactive online modules cover everything from credit scores to spending decisions to predatory lending.

One Ohio educator started her own don’t-do-it-my-way blog about the realities of personal financial crisis after she and her two young sons had to move back home with her mother. (In her case, it was an expected car repair that broke the bank.)  Her straight-talking “What Not To Do” series offers pragmatic financial advice, from embracing a don’t-live-above-your-means lifestyle to explaining why treating credit like “free” money is a bad idea.

Struggling with debt is not something you have to do alone, because you aren’t alone. The Colorado debt-relief attorneys with the Law Office of Stephen H. Swift have helped thousands of Colorado residents slash their debt and start fresh. To set up a free consultation, call (719) 359-8179 or toll free at (866) 893-2440 today.

Recent College Grads Most in Need of Denver Debt Relief

As the economy continues to rebound at a seeming geologic pace, Denver debt-relief attorneys know that Americans aged 25 and younger still face great challenges finding a path to financial and job security. This two-part series on young Americans and debt will focus on two areas of concern: the economic realities facing many recent college graduates, and minors, credit and financial literacy.

For the recent college graduate, debt-relief lawyers in Denver report a troubling outlook. The employment rate for young adults today has dropped to 54 percent — the lowest since the government began tracking such data in 1948.

The Grand Falls (NY) Post-Star reports that as of 2011, outstanding student loan debt has now exceeded both the $1 trillion mark and our national credit card debt for the first time ever. And, for those college students who graduated with student loans in 2010, on average they carry more than $25,000 in debt into their post-college lives.

Unfortunately, they are carrying that debt into a bleak job market while also frequently bearing other significant debt in the form of credit cards, car payments, even medical bills.

According to a recent survey conducted by the Pew Research Center, for young Americans aged 18 to 34, the recession has done more than drain their bank accounts.

The PRC report further reveals that:
~ 24 percent of young Americans surveyed say they have taken an unpaid job to gain work experience,
~ 24 percent say that they have moved back in with their parents, (among those ages 25 to 29 that number jumps to 34 percent),
~ 22 percent say they have postponed having a baby because of the bad economy, and
~ 20 percent say they have postponed getting married.

Colorado debt-relief attorneys with the Law Office of Stephen H. Swift understand that the financial pressures facing young Americans today can seem overwhelming. With that said, we have been helping people achieve debt relief for more than 20 years. During that time, we have helped thousands of Colorado residents make a new financial start by eliminating or reducing their debts. Call us today at (719) 359-8179 or toll free at (866) 893-2440 to schedule a free consultation.

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

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.

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• Colorado Springs Bankruptcy and Same-Sex Couples
• Colorado Springs Bankruptcy Attorneys on the 7 Deadly Sins of Credit Card Usage
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• Colorado Springs Bankruptcy Attorneys: How to Help a New College Grad
• Colorado Debt Relief: Smart Spending

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