If you have had some difficulty with making debt payments recently, this article may be for you.
It is has been reported in several places including the Wall Street Journal, that even though people declared bankruptcy, some lenders still tried to collect on the old debt. This is an illegal practice, where the lenders or collectors are fishing, hoping some people would pay, even though they have been legally released of the liability. If this happens to you, ignore the requests. If you have paid, you may have grounds for a lawsuit.
A few lenders are now loaning money to people wanting to buy cars, even though they may have been late on mortgage payments. This is good for the auto industry, and those for who this borrowing makes sense. The best thing is to buy good used cars cheap, drive them a long time, learn personal financial management, don’t borrow to buy deprecating assets like cars, pay off debt, save and pay cash for things that are needed, such as your next used car.
Lastly, with the controversial appointment of Richard Codray to lead U.S. Consumer Financial Protection Bureau, Richard has announced that they are going after pay-day lenders. Look for regulations to severely restrict these institutions ability to continue to shackle and take advantage of the poor.
