Consumerist

debt

Student Loans, Gateway Drug To Debt Slavery

By Ben Popken 9.2.10

One of the most important lessons students learn in college is how to get into debt and stay there. It’s crucial to the success of the Republic. An indebted population is easier to control; needing to pay off crushing debt – a debt that if defaulted on has been stripped of many normal consumer protections and rights – graduates more willingly shuttle into cubicles, becoming the square pegs demanded by the square holes. After a few futile years of floundering idealism, their souls have been successfully jackbooted into powder and they’re ready to keep the thumb on the next generation of would-be drones so as to protect their empire of matchsticks. But how did we get here? This chunky infographic examines the origins and (d)evolution of the student loan leviathan. [More]

How To Avoid An Emergency Room Bill That Sends You Back To The E.R.

By cwalters 8.9.10

Emergency room bills bring a special sort of sticker shock, because they don’t usually show up until weeks later, and then come packed with all sorts of over-inflated fees and add-ons. The New York Times calls them “notoriously high and perplexing,” and although it’s unlikely you’ll ever end up paying the full amount listed on the bill, there are strategies you can use to bring that initial figure down. [More]

debt

Don't End Up In Jail For Debt

By Ben Popken 8.4.10

Friend of the show Caveat Emptor has advice on how to not get thrown in jail for your debts. (Yes, this is happening in America). [More]

yeager

Do You Have What It Takes To Be A Cheapskate?

By cwalters 7.22.10

Jeff Yeager, Wise Bread blogger and author, has just published a new book titled The Cheapskate Next Door, where he interviews over 300 self-described cheapskates to find out what makes them tick. In an interview over at Daily Finance, he says that for most of his subjects, the choice to live frugal lifestyles wasn’t primarily about money. [More]

debt

Force A Reality Check With This "Real Cost" Credit Card Tool

By cwalters 7.19.10

The next time you want to splurge on some big ticket item, you might want to head over to The Real Damage first to see what it’s going to actually cost you in the long run. The free online tool looks at your current balances and interest rates, as well as your monthly payments, and then approximates how much extra you’ll pay in interest on your new purchase before you’re totally debt free. [More]

jobs

Former Debt Collectors Tell All

By cwalters 7.19.10

CNN’s Money mag has published ten short confessionals from current and former debt collectors. A guy who’s been doing it for twenty years says that “being authoritative and abrasive was like a high,” and that it helped him provide for his two daughters. A woman who’s been in the business for ten years says she knows collectors who hold contests to see who can make the most people cry each day. Another ten-year veteran quit after a debtor he was harassing shot himself. Yeah, it’s a fun Monday morning read. [More]

debt

FTC To Take A Closer Look At Debtors Being Thrown In Jail

By Meg Marco 7.16.10

It’s not a crime to owe money, and debtors prisons have been abolished — but that doesn’t mean that people are not being routinely arrested and put in jail for failing to pay debts. A few weeks ago the Minneapolis Star-Tribune published an investigative piece about arrest warrants being issued for people with less than $100 in debt, many of whom didn’t even know that a collector had taken legal action against them. Now, following a letter by Sen. Al Franken (noted hater of the Comcast, NBC merger), the FTC has agreed to look into the issue. [More]

debt

Debt-Riddled Illinois Is A Subprime Borrower

By Meg Marco 7.14.10

Illinois credit rating sucks, which is unfortunate for the Sucker State, because it needs to borrow millions of dollars to pay its bills. This means that the state is paying a premium for the loans, which are going to be used to improve roads, bridges and schools. As a product of Illinois’ public schools, I can honestly say that the $900 million in new bonds it is issuing will not be enough. Whether this is because we are too poorly educated to figure out how much money is actually needed, or because it really isn’t, no one can say. [More]

readers

Debt Collectors Discover New Levels Of Relentlessness

By Ben Popken 7.12.10

It makes sense that as the economy has soured that the rapacity of debt collectors would rise, but this much? [More]

credit histories

25 Percent Of American Consumers Now Have Low Credit Scores

By cwalters 7.12.10

Before the recession hit, roughly 15% of Americans had FICO credit scores below 600. But after the past couple of years of late payments, defaults, and foreclosures, that number has grown to 25%, or about 43 million people. At the same time, the number of people with excellent scores (800 to 850) has increased nearly 5% from pre-recession average, which the Associated Press says is partly a result of people cutting spending and working to pay off loans more quickly. [More]

debt

POLL: How Much Debt Do You Have?

By Ben Popken 6.18.10

Let’s play a fun game. I’ll show you mine if you show me yours. Debt, that is! [More]

college

Students, Your College May Be Selling Your Info To Banks

By Phil Villarreal 6.18.10

Just in case students don’t slog through college with enough debt hanging over them, their colleges and universities have cut semi-secret deals with banks to share personal info meant to market credit to them afterward. The Huffington Post says Bank of America has such deals with 700 schools. [More]

credit scores

Washington Wants Better Oversight Of For-Profit Colleges

By cwalters 6.15.10

Enrollment in for-profit colleges like the University of Phoenix, DeVry University, and Kaplan University–Gawker calls them fake colleges–tripled in the past decade, and has become such a fast-growing segment of the education market that some members of Congress think it needs better oversight. [More]

readers

Debtors Increasingly Thrown In Jail. Wait, What?

By Ben Popken 6.9.10

Did you know you can get thrown in jail for not paying your debts? Yes, in America, in the 21st century, debt collectors are effectively deputizing local police forces to collect on debts, manipulating the system and using your tax dollars to do their dirty work. [More]

debt

3 Reasons To Avoid Using A Debt Settlement Company

By Meg Marco 6.8.10

As the economy has weakened and unemployment has caused debt to become unmanageable for many people — one type of company has flourished — debt-settlement services. [More]

bill collectors

86-Year-Old Receives Surprise $19k Bill From Macy's

By cwalters 6.7.10

Lorene Pounds is 86 years old and says she hasn’t shopped at Macy’s in years. That’s partly why she was surprised when Macy’s called her up and told her she was delinquent on her credit card account. The other reason she was surprised was they said she owed $19,791. [More]

debt management plans

CredAbility.org: 911 For Personal Finance Emergencies

By Ben Popken 6.7.10

If your house catches on fire, you call 911. But who do you call when your personal balance sheet catches on fire? [More]

ramit sethi

Prepare For The Unexpected With A "Stupid Mistakes" Savings Account

By Ben Popken 6.1.10

One thing that can derail people digging themselves out of debt are the random unexpected setbacks life likes to throw at us to keep us on our toes. The accidental parking ticket, the bike that breaks down, the illness that requires pricey pills. Any of these can be enough to upset even the most carefully orchestrated budgeting and debt payment schedule, unless, you are smart like Ramit Sethi, and set up a “stupid mistakes” sub-savings account. Here’s how it works. [More]

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