I would say no. If you have not paid your overdue credit card bill and have been receiving demand letters from the credit card company, you actually don't have to sell your properties or pawn your jewelries. In the Philippines, no one has been imprisoned for not paying his / her credit card bills.
In 2010, total unpaid credit card bills in the Philippines has ballooned to nearly P6 billion and the credit card companies are having headaches on how to get these huge collectibles. So they sell the bill to law firms. And that's they reason why these lawyers (as they claim they are) harrass you into paying your bills.
But don't worry, if you really don't have money to pay your bills, you won't get imprisoned. You won't even get charged in court. But don't just relax. You have an obligation to fulfill. You've used up your credit card and you should pay for it.
Friday, July 23, 2010
Friday, November 6, 2009
Credit Card debt haunts millions
Credit card debt is likely to remain a widespread problem with a national unemployment rate that climbed to 10.2 percent, said Timothy Green of Credit.com.
The newest figures from the U.S. government confirmed a longtime expectation among many economists that the unemployment rate would finally exceed 10 percent. Other signs of economic improvement have been seen in the stock market and some consumer spending figures, but employment is often slower to gain momentum during an economic recovery.
"We have known for some time now that the unemployment rate could reach this level, and it is an unacceptable situation. We are working hard to reverse these circumstances for the millions of Americans who need and want work but cannot find it," said Labor Secretary Hilda Solis.
Nationwide, the economy lost 190,000 jobs in September as unemployment climbed to its highest point in more than 25 years, although Solis noted that at the peak of the recession, monthly job losses were closer to 700,000.
A statement from the White House noted that there had been 33,700 jobs created in the temporary help sector, which is said to frequently see growth earlier then other industries when a recovery is underway.
The newest figures from the U.S. government confirmed a longtime expectation among many economists that the unemployment rate would finally exceed 10 percent. Other signs of economic improvement have been seen in the stock market and some consumer spending figures, but employment is often slower to gain momentum during an economic recovery.
"We have known for some time now that the unemployment rate could reach this level, and it is an unacceptable situation. We are working hard to reverse these circumstances for the millions of Americans who need and want work but cannot find it," said Labor Secretary Hilda Solis.
Nationwide, the economy lost 190,000 jobs in September as unemployment climbed to its highest point in more than 25 years, although Solis noted that at the peak of the recession, monthly job losses were closer to 700,000.
A statement from the White House noted that there had been 33,700 jobs created in the temporary help sector, which is said to frequently see growth earlier then other industries when a recovery is underway.
Credit Card debt haunts millions
Credit card debt is likely to remain a widespread problem with a national unemployment rate that climbed to 10.2 percent, said Timothy Green of Credit.com.
The newest figures from the U.S. government confirmed a longtime expectation among many economists that the unemployment rate would finally exceed 10 percent. Other signs of economic improvement have been seen in the stock market and some consumer spending figures, but employment is often slower to gain momentum during an economic recovery.
"We have known for some time now that the unemployment rate could reach this level, and it is an unacceptable situation. We are working hard to reverse these circumstances for the millions of Americans who need and want work but cannot find it," said Labor Secretary Hilda Solis.
Nationwide, the economy lost 190,000 jobs in September as unemployment climbed to its highest point in more than 25 years, although Solis noted that at the peak of the recession, monthly job losses were closer to 700,000.
A statement from the White House noted that there had been 33,700 jobs created in the temporary help sector, which is said to frequently see growth earlier then other industries when a recovery is underway.
The newest figures from the U.S. government confirmed a longtime expectation among many economists that the unemployment rate would finally exceed 10 percent. Other signs of economic improvement have been seen in the stock market and some consumer spending figures, but employment is often slower to gain momentum during an economic recovery.
"We have known for some time now that the unemployment rate could reach this level, and it is an unacceptable situation. We are working hard to reverse these circumstances for the millions of Americans who need and want work but cannot find it," said Labor Secretary Hilda Solis.
Nationwide, the economy lost 190,000 jobs in September as unemployment climbed to its highest point in more than 25 years, although Solis noted that at the peak of the recession, monthly job losses were closer to 700,000.
A statement from the White House noted that there had been 33,700 jobs created in the temporary help sector, which is said to frequently see growth earlier then other industries when a recovery is underway.
Thursday, November 5, 2009
House passes bill on credit card reforms
The bill that protects against interest rate icnreases on existing credit card balances has finally passed the House with the support of Rep. Michael McMahon.
The bi-partisan Expedited CARD Reform for Consumers Act would begin immediately after President Obama signs it into law, rather than the original Feb. 22, 2010 start date.
The bill protects against interest rate increases on existing balances, double-cycle billing and what McMahon called due-date gimmickry by credit card companies.
"Rather than curtailing their exploitative practices, many credit card companies implemented outrageous fees and interest rates in advance of the Credit CARD Act taking affect in February," said McMahon (D-Staten Island/Brooklyn).
"It's unfair that some banks are trying to squeeze strapped consumers for additional revenue before the strong federal law takes effect. Moving up the date by which the bill's protective provisions come into effect makes sense, especially with the holiday season approaching. American consumers should not be subject to these unconscionable practices one day more."
The bi-partisan Expedited CARD Reform for Consumers Act would begin immediately after President Obama signs it into law, rather than the original Feb. 22, 2010 start date.
The bill protects against interest rate increases on existing balances, double-cycle billing and what McMahon called due-date gimmickry by credit card companies.
"Rather than curtailing their exploitative practices, many credit card companies implemented outrageous fees and interest rates in advance of the Credit CARD Act taking affect in February," said McMahon (D-Staten Island/Brooklyn).
"It's unfair that some banks are trying to squeeze strapped consumers for additional revenue before the strong federal law takes effect. Moving up the date by which the bill's protective provisions come into effect makes sense, especially with the holiday season approaching. American consumers should not be subject to these unconscionable practices one day more."
Credit report – a major factor in loan or credit approval
The global financial crisis and the collapse of major financial institutions have forced banks and lenders to tighten its policies and strictly review one’s credit reports before approving a loan or credit application, a consumer education manager revealed.
While credit reports account for only 15 percent of the applicant’s total credit score, the consumer education manager for Experian, a national credit agency, said stains on one’s credit reports will surely cost a person’s loan application as lenders now take a closer look at the applicant’s ability to pay.
The source said applicants don’t need to have a perfect credit score as long as current and past credits are well managed, as reflected on credit reports, and credit grantors will not have any reason to think that an applicant is a risk.
Each time a person applies for loans from banks or lenders, the financial company will immediately bring out the applicant’s credit report to check loan payments history, said the source from Experian.
To ensure that your credit report comes clean and impressive to banks or lenders in the future, experts suggest making payments on agreed dates and avoiding the declaration of bankruptcy, which in turn will show that you don’t have the ability to pay your debts at all.
Failing to pay on time breaks the agreement between the lender and the borrower and could hurt one’s credit report, the source said. It is also important, he added, to keep the credit consumption below 50 percent of the limit, creating an impression that the person is spending within the bounds of his or her means.
Avoiding mortgage defaults, unpaid tax liens, or civil judgment can also boost ones credit report, the source said, coupled with a history of diverse loans that are paid on time.
It is best to maintain a clean credit report, the source said, because a bad credit report takes years to clean up, which could mean you will not be qualified for any other loan. Income, employment history, and financial standing really don’t matter much to the lender. He said it’s the credit report that defines the decision of the financial firm.
For a bank or financial institution, a persons ability to pay on time and the number of times the person was able to take out a loan and paid for it, which are all reflected on the credit report, are the most important factor in approving or disapproving a loan, the source said.
Times have changed, said the source. While bankers and lenders were lenient in approving credits and loans before, the financial crunch have forced these lenders to tighten up their belt and ensure that the money they release to borrowers will get back to them on time.
A copy of credit reports can be requested for free from the government-ran www.annualcreditreport.com.
While credit reports account for only 15 percent of the applicant’s total credit score, the consumer education manager for Experian, a national credit agency, said stains on one’s credit reports will surely cost a person’s loan application as lenders now take a closer look at the applicant’s ability to pay.
The source said applicants don’t need to have a perfect credit score as long as current and past credits are well managed, as reflected on credit reports, and credit grantors will not have any reason to think that an applicant is a risk.
Each time a person applies for loans from banks or lenders, the financial company will immediately bring out the applicant’s credit report to check loan payments history, said the source from Experian.
To ensure that your credit report comes clean and impressive to banks or lenders in the future, experts suggest making payments on agreed dates and avoiding the declaration of bankruptcy, which in turn will show that you don’t have the ability to pay your debts at all.
Failing to pay on time breaks the agreement between the lender and the borrower and could hurt one’s credit report, the source said. It is also important, he added, to keep the credit consumption below 50 percent of the limit, creating an impression that the person is spending within the bounds of his or her means.
Avoiding mortgage defaults, unpaid tax liens, or civil judgment can also boost ones credit report, the source said, coupled with a history of diverse loans that are paid on time.
It is best to maintain a clean credit report, the source said, because a bad credit report takes years to clean up, which could mean you will not be qualified for any other loan. Income, employment history, and financial standing really don’t matter much to the lender. He said it’s the credit report that defines the decision of the financial firm.
For a bank or financial institution, a persons ability to pay on time and the number of times the person was able to take out a loan and paid for it, which are all reflected on the credit report, are the most important factor in approving or disapproving a loan, the source said.
Times have changed, said the source. While bankers and lenders were lenient in approving credits and loans before, the financial crunch have forced these lenders to tighten up their belt and ensure that the money they release to borrowers will get back to them on time.
A copy of credit reports can be requested for free from the government-ran www.annualcreditreport.com.
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