Credit card users throughout America may not have realized it, but for the last few years a law passed by the United States Congress in 2009 has been providing them with significant protection. That law is known as the CARD Act, and it became effective on February 22, 2010.
Many of our Escondido readers have probably heard financial "experts" opine on the difference between "good debt" and "bad debt." For instance, a mortgage is often considered to be "good debt" because as a homeowner repays the loan they are building equity in what was once considered to be a very safe investment - real estate.
There are a lot of nationwide problems that are being discussed by politicians and the news media these days. Immigration concerns currently top the list, but other problems, like highway funds and student loan debt, are certainly issues that have an impact on Americans in every state, including California. However, there is apparently at least one large issue that does not seem to garner much attention, but that affects nearly one-third of all Americans: debt obligations that have been folded into the collections process.
Freedom, independence and liberty were widely celebrated throughout America over the recent holiday weekend, and hopefully all of our Escondido readers were able to have a good time with friends and family members. Recognizing the importance of these American principles in the everyday lives of millions of people, a recent article took a somewhat different approach to how they can be implemented to practical effect - through freedom from credit card debt.
It is hard to believe that the year is almost half over already. For some people, 2014 has so far been the year when they are finally getting their family finances in order after several years of a tough American economy. This can include paying back credit card debt.
Many of our Escondido readers dread receiving their credit card bills in the mail each month. Not only do these statements point out the thousands in credit card debt that is owed, but they also point out the often very high interest rate that applies to the balance, as well as the minimum payment - which by itself can seem daunting for the average person who is simply struggling to make ends meet in today's troubled economy. With all of these terms spelled out, sometimes in bold lettering, these monthly statement can seem more like contracts in which the only party getting what they want is the credit card company.
Millions of Americans use credit cards on a daily basis for a variety of reasons. Some use credit cards on every purchase simply to accumulate those enticing rewards that so many of the credit card companies hold out in front of consumers' noses in an attempt to get them to use their cards. Those same people will usually pay their credit card balances in full each month. However, the unfortunate reality is that many people use their credit cards because they have no other choice - they don't have enough money in the bank, and they need to buy the necessities for their family. But the fact is that many people, no matter how or why they use credit cards, often don't know much about these complicated financial tools - and as a result they end up with massive credit card debt.
Some California residents see debt troubles coming as their financial challenges progressively get worse. For others, the problem just seems to come out of nowhere, due to a sudden loss of employment or unexpected medical expenses. No matter how it happens, being in debt can have a number of significant impacts on an Escondido resident's life, including poor credit and harassment from creditors. So, once a trying debt situation is at hand, what is the best way to approach the problem, besides filing for bankruptcy?
Escondido residents, like millions of Americans, struggle with how to effectively manage their credit cards. No matter how problems arise, whether through unexpected medical expenses or the loss of a job, credit cards can often be a valuable emergency financial tool that can keep a family afloat during financial challenges. However, credit card debt can become a major problem if balances get too high. And when that happens, the issue of rebuilding credit can take center stage in a family's finances.
Our Escondido readers know that it can be difficult to get on the right path toward financial stability, especially after filing for bankruptcy. Daily financial hardship seems to have become the "new normal" for millions of Americans, even as thousands of people have taken advantage of the benefits of filing for bankruptcy and addressing debt over the last several years. For many people, the struggle to "get ahead" is seemingly a struggle without end. With that in mind, a recent article suggested a few tips for trying to get the most out a household balance sheet, while at the same time acknowledging the reality of financial challenges.