Consumers with personal financial problems might be in for a few more. As the economy worsens and the number of consumers facing financial difficulties increases, creditors are taking a hard stance against them without regard to how these consumers ended up without the means to pay off their debts. Plus, creditors are tacking on fees that make it almost impossible for some consumers to pay this debt off, essentially guaranteeing that some consumers never get out of debt for years and years.
More and more people are finding themselves in a position defending themselves against creditors who take them to court over unpaid bills. Once this happens, creditors are in a position, provided they win, to garnish the funds of these consumers. Especially if the consumer doesn't respond to Creditors can legally seize a portion of their paychecks or take money from their bank accounts in order to cover the debts the consumers have amassed whether or not these consumers can afford to lose these sums of money.
That the consumers might owe their creditors thousands of dollars might not actually be the point here. In fact, most consumers would admit that yes, indeed, they do owe the money in question. However, the reasons behind this unpaid debt might very well be legitimate ones including the loss of employment, extraordinarily high mortgage payments, unforeseeable medical expenses, and newly tacked on fees and interest rate spikes.
Do creditors care whether or not these consumers have good reasons for their failure to pay off their debts? Of course not! All the creditors care about is getting their money back and getting it back quickly. If creditors were more willing to work with their customers -they might just get their money and help this country pull out of the worst recession many of us have seen in our lifetime.
Does it matter that the banks received big bailouts from the very people they are so quick to sue? No. Borrowers have learned the credit card companies are not so generous when it comes to offering a reciprocating gesture of kindness. Rather, borrowers soon discover their left with little in their paychecks as wages were garnished, checking accounts emptied and left to accrue overdraft charges.
Are creditors being held accountable to use these bailout funds in the manner in which they were intended to be used? No. Shouldn't creditors be held accountable to act fairly in much the same way that they expect consumers to pay off their debts?
If consumers are already struggling to make good on their debts, how is destroying their credit, tacking on fees and higher interest rates helping anyone?
The real problem here is that creditors choose not to work with their customers. The fact that currently, creditors can say and do as they please when it comes to suing consumers over debts, whether or not it's good for our economic recovery or not only compounds the problem.
What happened to the days where we could at least claim interest paid on credit card debt just the same as we claim mortgage interest? With interest rates sky high -and expected to climb higher-wouldn't that be a option worthy of revisiting?
Think you know just how ridiculous the big banks are? Test your bank knowledge by taking part in this latest project from Americans for Fairness in Lending and Americans for Financial Reform. "What the B@nk?!"
Image by Getty Images via @daylife
More and more people are finding themselves in a position defending themselves against creditors who take them to court over unpaid bills. Once this happens, creditors are in a position, provided they win, to garnish the funds of these consumers. Especially if the consumer doesn't respond to Creditors can legally seize a portion of their paychecks or take money from their bank accounts in order to cover the debts the consumers have amassed whether or not these consumers can afford to lose these sums of money.
That the consumers might owe their creditors thousands of dollars might not actually be the point here. In fact, most consumers would admit that yes, indeed, they do owe the money in question. However, the reasons behind this unpaid debt might very well be legitimate ones including the loss of employment, extraordinarily high mortgage payments, unforeseeable medical expenses, and newly tacked on fees and interest rate spikes.
Do creditors care whether or not these consumers have good reasons for their failure to pay off their debts? Of course not! All the creditors care about is getting their money back and getting it back quickly. If creditors were more willing to work with their customers -they might just get their money and help this country pull out of the worst recession many of us have seen in our lifetime.
Does it matter that the banks received big bailouts from the very people they are so quick to sue? No. Borrowers have learned the credit card companies are not so generous when it comes to offering a reciprocating gesture of kindness. Rather, borrowers soon discover their left with little in their paychecks as wages were garnished, checking accounts emptied and left to accrue overdraft charges.
Are creditors being held accountable to use these bailout funds in the manner in which they were intended to be used? No. Shouldn't creditors be held accountable to act fairly in much the same way that they expect consumers to pay off their debts?
If consumers are already struggling to make good on their debts, how is destroying their credit, tacking on fees and higher interest rates helping anyone?
The real problem here is that creditors choose not to work with their customers. The fact that currently, creditors can say and do as they please when it comes to suing consumers over debts, whether or not it's good for our economic recovery or not only compounds the problem.
What happened to the days where we could at least claim interest paid on credit card debt just the same as we claim mortgage interest? With interest rates sky high -and expected to climb higher-wouldn't that be a option worthy of revisiting?
Think you know just how ridiculous the big banks are? Test your bank knowledge by taking part in this latest project from Americans for Fairness in Lending and Americans for Financial Reform. "What the B@nk?!"
NEWSLETTER SIGN UP
SUBSCRIBE
CONTACT
WHY are the banks and wall street and many many more, who blatantly did whatever they wanted to with our money, still even in charge AT ALL?? Every one of those SOB Bank Presidents and a lot more who were on "trial" HA, should PERSONALLY be fired and held PERSONALLY accountable just like any other individual. Let them FEEL IT not just blow hot air as usual or make those ridiculous "formal apologizes". Who cares?! How about if I did that if I owe them money? "Oh I'm sorry" would that get ME off the hook? HELL NO! But no, they get "bailed out" and THEN even RAISED OUR INTEREST RATES at that time destroying even more lives. "OUR" country is so controlled by Politicians, Federal Reserve, Bankers and Dunn and Bradstreet and until that changes we're all screwed. Do they even KNOW how to spell "ethical" or "moral"?! Very Doubtful. But they sure must help the drug industries buying sleeping pills because I doubt they sleep well at the end of the day.