Written by Administration | 11 October 2011

From the streets of America to the floor of Congress people everywhere are taking a proverbial swipe at the new BofA debit card fees. Sen. Dick Durbin, who no doubt considers himself a modern day Paul Revere for sounding the alarm, "The Debits are coming!", has called for the heads of the heads of the big bank. And angry mobs are using their fees to buy office supplies, taking to the streets to voice their displeasure.

I understand both sides really, why should consumers be charged to use their own money by institutions who use that money to make a profit in the first place? And how many fees can they possibly charge us?

In defense of the banks, they were simply trying to increase profits in a difficult climate.  After a tough series of losses in the housing market and tightening lending standards, money is drying up in the industry, layoffs have begun, and the bank needed to try something.  So, much like with the up to $30 billion made by the banks in credit card and loan late fees, overdraft fees, etc., they thought lets just tack a harmless little surcharge on to everyone's bill. I would imagine that Bank of America really didn't consider the literal brown stripe that would be put on their company image if that added a simple $5 a month fee for using your debit card. Unfortunately, anarchy took over, locusts, end of days...blah blah.

What does this mean for any of us really?  In a generation where we spend five dollars on a cup of coffee without batting an eye, is this really where we are drawing the line in the sand?  What should you do to protect yourself if this does affect you?  More legislation isn't the solution or more tax on the bank, costs they will just pass along to the consumer one way or another anyway. Maybe if you don't like it you could change banks.  That is until other banks follow suit, like SunTrust, who is scheduled to add a fee of their own on come November 10, 2011.  But what about Wachovia, BBT, Wells Fargo, et al?  That is the point here.

In the free market system, the banks are free to try to make a profit and we are free to make a choice.  When banks started adding checking fees on accounts, the big draw became, "Come to our bank for FREE checking." Someone, somewhere will offer a solution and everything will be okay...or maybe you could just not use your debit card.  I would also suggest not using your credit card.  The freedom theme here is that you are free to make choices about your day-to-day finances.  To swipe or not to swipe, where to house your money, and what fees your are comfortable paying to access and use your own money.  Take charge of your money. Read your statements every month on every account and know that you are comfortable with what you are paying. If not, move on down the road, I'm sure someone will be happy take your money.

And Canada, be careful, this is one American trend that you won't want to follow.

 

DM

 

Written by Administration | 14 September 2011

Raise MY debt ceiling!

 

The US government and the quickly failing countries in the European Union are reaching out for more cash in the form of having their credit limits raised.  Oh sure, they’re calling it “raising their debt ceilings” but it is the equivalent of us calling RBC or Visa to have the amount we can spend on our credit cards lifted a bit to hold us over.  Wouldn’t that be nice? To be able to not truly worry about spending within our means or managing the money we are taking in with any real responsibility would be pretty nifty.

Unfortunately, we can’t run our households like governments, we actually have to pay our bills and when our credit runs out... it runs out!  Not to mention that when we default on our credit obligations there are real consequences.  At some point prior to being “out on the streets” we have to take action.  Whether it was the economy or poor money management that caused your situation it is important that you take charge of your finances by;

1)      Constantly assessing credit obligations and income

2)      Making arrangements as needed with creditors to deal with difficult times

and,

3)      If it any point you need help, put pride aside, and reach out for it. 

It is important to assess your options for help as well. Try first working with your creditors and then, as needed, look for counseling, settlement, and even consumer proposal services that provide viable alternatives to bankruptcy, which should always be your last resort.

And….in times of need, with real questions….ask Debt Man

Written by Administration | 08 September 2011

Death, Taxes, and Debt!

It’s now 3 things that are certain…

They used to just say, “The only things you can count on are death and taxes”.  Well throw one more euphemistic log on the fire because you can apparently now count on your debt following you in to the hereafter.  And if it’s not stalking you in a restless payment purgatory, you can count on your debt being there for your grieving relatives.

 

According to a recent article  by Janna Herron on Bankrate.com, you can expect collection notices to show up in the mail long after the condolence cards have tapered off.  It might be tacky but one source in the article stated, “Creditors certainly have the right to pursue the estate for debts owed by the consumer when they were alive," says John Ulzheimer, president of consumer education at SmartCredit.com.  "In some cases, they could sue the estate for payment."  Well isn’t that thoughtful.

So what do you do to protect yourself and your loved ones in the event of your demise?  Take action on your debt at most and at the very least make sure your estate spells out what to do with your debt to shield your family as best you can.

I suggest reading the entire article for more details and getting help with your debt before it’s too late… That way, when the creditors say, “I’m sorry for your loss,” you can reply, “And I’m sorry for yours!”

 

Written by Administration | 30 June 2011

 

I can’t remember how I recently came across an article on a site called Lip Gloss Culture, either my wife sent it to me or I was looking for a foundation to match the green in my Debt Man suit. Regardless, it had some great tips and very good reasons to avoid having too many credit cards. 

When it comes to getting in over your head with credit cards, it's easier than you think.  The offers can be very tempting, you’re at the checkout counter of your favorite store with an arm load of clothes or electronics and they offer you a 10-15% discount if you sign up for their store credit card.  This is the same tactic casinos use when they offer you free drinks.  Nothing is free and the house always wins.  The stores know that while they will be giving you money today in the form of a discount, over time plus interest, you will more than pay their investment. That’s just the beginning of the damage that’s done to you and your finances.

I’ll sum up the long and the short of the article with some easy to follow bullet points but I highly recommend checking out the full article for a well-written look into why to avoid falling prey to the credit traps that are out there.

1.       Having too many cards makes it hard to keep up.  From rate changes, payment dates, and other tricks of the credit trade, there are a number of ways that not keeping up with too many cards can cost you big money.

2.       Having too many cards can lead you to spend more.  If you’re one of those people who write checks because you have some left in the checkbook, credit cards are not for you. Open lines of credit for you will be an open invitation to financial ruin.

3.       Having too many cards is bad for your credit.  Of course, so is having too many, small balances, big balances, paid cards, seriously, who understands this?  Maybe this is why my credit score and golf score are so close.

4.       Having too many cards means you are probably paying too much in fees.  Start up fees and more can really add up.  If you were to do the math on what you could be buying in cash for just what you’re spending to be a part of their little “club” it may not look so good.

5.       More cards means more chances for credit card fraud.  You’re probably thinking, “Isn’t saving us from that the job of the Debt Man?”  Help me out a little by looking after yourself please…

 

If you don't find yourself in over your head with debt reach out for help before it's too late!

 

Written by Administration | 08 June 2011

For every problem there is a solution and for every solution there is an industry to provide that as a service.  Sadly, along with almost any industry, there are opportunists who try to take advantage of those in need by taking money for poorly or un-rendered services.  Most recently an industry of need that has sprung to life is helping those with debt work through their difficult financial times.  Unfortunately the same country that brought the world Lite beer, monster trucks, and the glory that is rap music, has now taken assisting troubled debtors to a new low.

In an effort to thwart a booming industry that was rampant with fraud, in 2010 the US passed a law that said companies who offered debt help services could no longer charge “up-front fees”.  That is to say that; any company which offers help settling, restructuring, or assisting people with debt could no longer require people to pay to the debt settlement companies prior to receiving the settlement services they were promised. 

                While this is good news for those who would have been taken by scammers it was bad news for companies in the US which provided legitimate help.  Now it also appears to be causing new problems for Canadians, as those would-be fraudsters move north for new hunting grounds.

According to a recent article one Florida-based company, Vortex, has already stirred up problems for those buried under more debt than snow.  Kevin Hollett, spokesman for the British Columbia Better Business Bureau said, "The beginning of this year we started to hear a lot about this company, since then we've received approximately 1,500 inquiries.”  That’s just in B.C. Meanwhile back in the States, Vortex has big problems in California and Florida and was recently banned from doing business in Missouri.

          Why are Canadians falling for the schemes offering an easy way out of debt?  According to the article, "These are people are vulnerable."  After all, “what Canadian would enter into a contract with company not licensed or bonded in Canada?”

            Outside of being banned from deceptive or misleading business practices in the US, American companies are coming because there are currently no laws banning upfront fees in Canada.  As well, there are many other protections not in place to protect consumers and no recourse to punish companies who operate across the border with less than savory practices.

             So if you are looking for help with overwhelming debt, what can you do to protect yourself?  At least in the province of BC you can make sure the company you work with is:

-         Licensed

-         Deposits your funds into a trust account

-         Signs a contract with you

Beware of high pressure sales tactics from telemarketers and be sure that when searching out help you look at all the options.

Another great story was also done on CTVBC…

Written by Administration | 07 June 2011

A recent article in the Herald Tribune, a Southwest Florida paper, gave the normally slogan chanting residents something to hide their heads about. According to the latest reports, Florida led the nation in identity thefts, and a variety of counties really stood out at getting ripped off in a variety of ways.

One of the most interesting tidbits for those of you struggling with credit card debt was mention that debt collection scams ranked among the biggest tricks. Great! So the credit card companies get you on the way in and the collection scammers get you on the way out. And they have the audacity to go after debt settlement companies?

Whether you are dealing with too much debt or just doing your best to keep your finances in check, the article did have a number of great tips to watch out for yourself and keep the thieves at bay. Besides the standard breaches of security and Nigerian bank scams you should;

- Never give away personal information, i.e. credit card numbers, bank accounts, social security numbers, etc

- Never send anyone money you don’t know (and some you DO!)

- Monitor debit and credit card activity by always reading your statements

- Check your credit once a year, no matter how painful it may be to see

Thieves and scammer are always trying to find new ways to get at your money without the hard work it took you to get it. Most of the ways they are tricking us is by appealing to our desire to make a fast buck. Don’t fall for it! Debt Man can’t always rescue you…

Written by Administration | 31 May 2011

24 December 2010

What do you want first, the good news or the bad news? I guess it doesn't matter what I give to you first because the news and how you perceive it really depends on your financial condition and what you do for a living. Alright then, let me just give it to you and you can decide for yourself.

According to the Federal Reserve credit card use is down again this month and hasn't seen an increase since August of 2008. A separate survey by Javelin Strategy and Research found that 56% of people used credit cards in 2009 compared to 87% in 2007. The first aspect of good news vs. bad news may be that people are no longer spending willy-nilly on credit living lives they can't afford, now or when the payments hit. This may be because either, as some economists like the ones at Javelin say, "people are extraordinarily cautious about a double-dip recession" or they don't have the credit to play with anymore. Many people have had their available credit slashed, some by up to 90%.

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24 December 2010

When your financial seasons change from summer to fall and your credit statements start to turn pretty colors like the autumn leaves... you know it's about to get nasty. Of course, you knew before your creditors that things were getting tight but now you're behind on your payments. You know they'll be coming for you soon enough, they aren't called "Chase Bank" for nothing. The first way banks and collectors let you know is by mail and the calls come next. Caller ID, which was originally invented to duck out on pesky in-laws...can't save you either. How bad can it get? What are they allowed to do? And what should you do?

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24 December 2010

The in-laws took out the trash a little early last night. As with most of us it's a delicate balance of time between taking it out the night before or making the mad dash in your PJs the next morning trying to catch the garbage truck. For years I've worried about taking it out early and risking animals or weather tipping it over and dealing with a mess, but now there's a new concern. Apparently, they went out early the next morning to put in one more thing and their trash had been stolen. That's right, stolen! My first thought was that time's have gotten so bad that people are sneaking into gated communities and to pilfer high-end leftovers. I've eaten at their house enough to know that's not a bad idea. My wife was quick to point out though their trash was probably stolen for the purposes of identity theft.

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