The North Carolina Bankruptcy Information Blog

Need signs that credit card companies are getting more aggressive with their credit card tactics and tricks? Well, there’s 346 million reasons from one particular credit card purveyor, Citigroup.

Based on a new report from The Wall Street Journal, in the third quarter alone, the bank mailed more than 346 million credit card offers to unwitting customers. Keep in mind, that’s more than the approximately 308 million people in the U.S, according to the Census Bureau.

Despite this high volume of consumer credit offers, according to the financial experts at Bloomberg, revolving credit usage, which includes credit cards, dropped the most in six months in July.…

For many recent graduates from colleges and universities all across the country, any job must feel better than no job at all. Shortly after graduation in May 2011, thousands of grads from Washington State to UNC-Wilmington, turned their back on student life and turned back on their computers only to begin their first official job searches—sending out e-mail-loads of resumes in what would become for many a months-long search for work….any work.

Once the summer had started in earnest many of this newly-minted workforce found that they had applied for dozens, if not hundreds of positions, only to hear back from a handful of potential employers, most of whom would likely reject them about as quickly as these same students were running through their bank accounts, savings, leftover student loans or whatever their parents could provide, during only the very beginnings of what would become an entire season of  just job searching.…

This week, Citigroup will launch a brand, spanking new credit card that purportedly carries with a trifecta of post-recessionary perks: no late fees, no penalty rates and a single interest rate for purchases, balance transfers and cash advances.

As reported by The Associated Press, Citi’s revamped “Simplicity card” sells itself as exactly that: it will be marketed to those who are “juggling busy schedules” and “want a credit card with simple terms.” In fact, Jud Linville, CEO of Citi Cards told the AP, “It lets them not have to worry that they’re going to be late on a payment. It provides some flexibility.”

But amid Citi’s claims that their new card is somehow different than the plastic that has placed so many an American budget in financial jeopardy over the past several years, there are many reasons to think twice before sending in an application for their Simplicity.…

With the rebound of the credit card industry in full swing for 2011, more and more credit cards are being made available to consumers—often via aggressive tactics—than in quite some time. And amid these plentiful offers for plastic there come enticing rewards of all types, with a litany of merits for the cautious consumer and just as many drawbacks for average Americans attempting to get out (and stay out) of debt.

Along with this trend comes a study from the Federal Reserve Bank of Chicago, revealing that holders of cashback reward cards, in particular, are more willing to assume and carry higher debt loads.…

These summer months are shaping up (again) to be tough times for recent college graduates. This latest round of job seekers continues to face high unemployment and mounting debt. So what happens when these poor economic conditions coincide with payment deadlines for sometimes astronomical educational loans? One word: defaults. In the end, this feeling of financial helplessness leaves many recent grads reeling, and rightfully so, in an economic climate may mean they will never be as successful or financially secure as their parents.

According to a recent article in The Huffington Post, chronicling graduates’ search for better jobs (albeit without hope for a better future), this recent post-recessionary phenomenon may signify a broader trend.  “Historically, college graduates weather periods of economic recession better than their less-credentialed counterparts.…

Whether you’re considering bankruptcy or just coming out of it, you may be wondering the best ways to rebuild credit as soon as possible. Obviously, credit cards are one way to rebuild your credit history (and future) more quickly; but most people entering or exiting the bankruptcy process are well aware of the perils of plastic…and how difficult it can be to qualify for a card with a dinged credit past.

Here are a few ways to select a good credit card despite a bad credit history:

(1) Make to a Call to the Potential Creditor
You may not get offers in the mail, so it’s a good idea to “make the first move.” Give banks that appeal to you a call at the 800 number listed on their website in order to address their practices, policies and intentions.…

Becoming better with credit post-bankruptcy can be a daunting task for many clients. You’ve repaid or dissolved your existing debts, and are about to close your bankruptcy case with a new and improved outlook on your financial life. Unfortunately for many in your position, even well-intentioned Americans can return to their debt-full ways, even after the many lessons learned from their bankruptcy filing.

As a result, it’s important to take a first (or possibly second) look at the best ways to break the cycle of debt, this time for good! Five sound (but simple) strategies include:

(1) Bank on it.
Banks inevitably issue real credit offers.…

Just as average Americans are beginning to see more budgetary benefits from 2009′s landmark credit card protection legislation, the Credit CARD Act, they can also expect to see some not altogether unexpected side effects from their credit card providers: additional fees and higher rates.

In fact, while the CARD Act demands that card companies review customer files and lower rates where applicable to good payment history, according to a recent report from Marketplace’s Stacey Vanek Smith (of American Public Media), the changes can come at a cost.

“Millions of people saw their interest rates get jacked up and their credit limits slashed during the recession.…

In the midst of millions riding the waves of the real estate reckoning, even more ordinary Americans are facing the rising tide of credit card APRs. In fact, according to new data, the average credit card interest rate has recently climbed to an all-time high, with averages hovering just below 15%. These skyrocketing rates can be a serious burden for those carrying balances; forcing many to think twice before paying with plastic, and many others to lament last year’s holiday purchases.

The reason for these higher rates may initially seem surprising: better money management and credit card reforms. Recent increases in both the number and amounts of credit card fees, as well as the escalation of interest rates are a response to the fact that the overall amount of credit card debt that Americans are carrying has diminished in the wake of the recent recessionary spending practices.…

There is no denying the power of association marketing. That is, the attachment, or association, of a brand to a particular public person or entity. We see it in sports, cars, alcohol, clothes, cell phones and just about any other sort of consumer you can imagine. And yes, credit cards have long used such tactics to lure consumers.

Enter the Kardashians.

Wait, who?

Don’t pretend you don’t know you they are. But, in a way, you’re right. For what on earth are these women famous?

Pardon the digression.

The Kardashian sisters, we’ll call them socialites, recently attached their name to a pre-paid debit card backed by University National Bank, called the Kardashian Prepaid MasterCard.…

The credit card industry is changing. Some of the change is good, some of it may be bad. But the best news is, the credit card industry is changing.

It was recently reported that since the start of the year, eight million fewer people used a credit card.

There are not many industries that would be happy with losing eight million customers in only a year. However, they did not all walk away by choice. Whether through bankruptcy, charge-offs or account cancellations, many credit card users were simply told to hit the road. That’s fine. It’s for the better.

The recent stats were assembled and published by TransUnion.…

You’re in credit card debt, often with a double-digit interest rates that can balloon over time into a monthly amount more than even your car payment. You may have sold (or lost) your home, but without much equity to go around, you have downsized with little to show for it. You’ve minimized the amount you contribute to your future—retirement, savings, investments—in the hopes of having more to pay down mounting bills.

And what has it done for you? In many instances, debtors facing these same situations find themselves no better off than before they tried to buy themselves time to get out of debt.…

Just a few years ago, home ownership was something available to just about anyone—an economic reality that to an extent, contributed to where we are today. Nevertheless, the mortgage boom helped a lot of people realize that benefits of home ownership. It’s simply too bad that it came with so many hidden financial pitfalls, many of which have subjected sub-prime borrowers (and also those with standard mortgages) to serious, long-term hardships.

Today, almost the exact opposite has become reality. Mortgages are exceptionally more difficult to obtain and when they can be approved, the houses themselves don’t qualify because of drastically diminishing real estate values.…

Debtors attempting to avoid bankruptcy by waiting for housing prices (and equity) to increase may be waiting a long time. In fact, according to The New York Times, wealth-building via housing booms may have also gone the way of guaranteed pensions, free healthcare, and secure employment.

Per the NYT, “many real estate experts now believe that home ownership will never again yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg. The wealth generated by housing in those decades, particularly on the coasts, did more than assure the owners a comfortable retirement.…

Without insult, you should accept the fact that you read at a ninth grade level. It’s okay, four out of five adults do. It doesn’t mean you like the “Twillight” series, it means that the depth of your vocabulary and comprehension skills are at the most efficient level needed to succeed in today’s society. In short, it’s fine. And that’s not really the point of this post anyway.

It should come to no surprise then, that credit card companies create their agreements, notices and paperwork at a reading level on par with the comprehension and reading skills of only one in five Americans.…

For most recent college and post-college graduates, the hot summer months are a chilly reminder that student loan repayment deadlines are mere months away. These impending debts arrive at some of the toughest economic times ever for the newest round of job seekers, as the nation, and especially its youngest workers, continue to face record unemployment and mounting consumer debt. So what happens when poor economic conditions coincide with mandatory payback timelines for budget-busting student loans? Two words: loan defaults. Now, the countdown is on as many recent grads will soon exceed the 270-day window for paying back their educational debts, beginning a bad precedent for staying current in an economy that may or may not be heading into another recession.…

The summer months are shaping up to be tough times for recent college graduates. This newest round of job seekers continues to face record unemployment and mounting consumer debt. So what happens when these poor economic conditions coincide with mandatory payback timelines for astronomic educational loans? One word: defaults. In fact, many recent grads will soon exceed the 270-day window for beginning paying back their student loan, triggering a default on their mounting student loans—loans that often have high interest rates.

So what can you do if you can’t pay your student loans or have already defaulted?

Categorize Your Loan: Private or Federal
In these default scenarios, the type of student loan can make all the difference.…

Just when the credit card industry thought it was safe in Washington, Uncle Sam has decided to keep them over his knee for a few last good swats of discipline in the form of tighter regulations on late fees.

For many who struggle with credit cards, the problem is not always uncontrollable spending—it’s the fees. Late fees, annual fees and over the limit fees can pile up faster than Feburary snow in Minnesota, pushing customers over the edge into an avalanche of additional credit problems.

However, earlier this week the Federal Reserve proposed new limits on how credit card companies apply penalty fees for things like missing a deadline or going over the limit.…

It’s 2010, the year we take charge, so to speak, of our credit cards. In only a couple of months, credit card companies will have to fully abide by the provisions of the Credit Card Accountability, Responsibility and Disclosure Act (CARD). Some components of the act have already been in action.

Nevertheless, consumer advocates are expecting a slew of new credit card company tactics to increase, damage and elevate our debt, credit reports and heart rates. This is especially frustrating for those trying to re-establish a sound credit rating after bankruptcy. If more fees and restrictions come into play, it will take that much longer to use a credit card as a reputable credit source.…

It has been a number of months since new laws were passed to address the aggressive marketing tactics of credit card companies and their downright crooked methods of making money through penalty fees and interest rate hikes. To date, even with some facets of the law intact, few consumers are realizing a positive impact. This is because credit card companies have used the government intervention as an excuse to increase rates and invent new fees before the real teeth of the law come into effect in February of 2010.

Thankfully, it sounds like lawmakers behind the effort have caught wind of the ongoing tactics and are now pushing to enact the laws sooner than expected, as early as December of this year.…