CHICAGO, IL, Feb 22, 2012 (MARKETWIRE via COMTEX) — The national credit card delinquency rate (the ratio of borrowers 90 or more days past due) reached 0.78% in the fourth quarter of 2011, a drop of almost 5% from the same period one year ago and continuing well below historical norms. Average credit card debt per borrower increased $239 from the same period last year to $5,204, though it too remains near record-low levels. For the quarter, credit card delinquencies and debt both experienced seasonal increases. This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers, evaluating how they are managing credit related to mortgages, credit cards and auto loans.

“2011 closed out with the lowest year-end card delinquency rate nationwide since 1995,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit. “This is the net result of riskier loans having worked their way through the system, cautious risk management strategies on the part of lenders and consumers working to maintain the health and good status of their card relationships.”

Total card originations in 2011 grew by more than 14% relative to 2010. Moreover, in 2010 only 21.8% of new card accounts went to consumers with a VantageScore(R) lower than 700 (on a scale of 501 - 990); In 2011, that number had risen to 25.2%. So not only are more non-prime consumers gaining access to card credits, they also comprise a larger percentage of the cards entering the market. “We have seen a shift toward non-prime borrowers beginning in the second half of 2010 and continuing through the fourth quarter of 2011, which makes the current low delinquency rates even more remarkable,” added Becker. “This shift is driven in part by the fierce competition among lenders for prime borrowers, as well as the effects of ongoing consumer deleveraging efforts in the prime credit range. As a result, many lenders have put more of a focus on originating cards in the non-prime market.”

On a quarter-over-quarter basis, delinquency rates have risen slightly from the all-time low reached in Q2 2011. This is driven mostly by seasonality. “We are still well below historical delinquency norms for credit cards, indicating that consumers are still effectively managing this debt and their relationship with the credit card providers.”

Credit card delinquencies rose 9.9% from 0.71% in Q3 2011 to 0.78% in Q4 2011 while average credit card debt per borrower increased $442 from $4,762 to $5,204 in that same timeframe.

Between the third and fourth quarters of 2011, only Maine, New Hampshire, the District of Columbia, and Alaska experienced decreases in their credit card delinquency rates, and two states remained unchanged. On a more granular level, 79% of metropolitan statistical areas (MSAs) saw increases in their respective credit card delinquency rates in Q4 2011. This was down compared to last quarter, when 89% of MSAs experienced an increase.

Based on revised economic assumptions, TransUnion forecasts that credit card borrower delinquency rates could continue to drift upward in the short term, but then begin to gradually drop towards the end of the year. This forecast is based on seasonality effects and various other economic factors such as anticipated gross state product, consumer sentiment, disposable income, and employment conditions. The forecast changes as the economy deviates from a conservative economic forecast, or if there are unanticipated shocks to the economy affecting recovery.

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WASHINGTON – The nation’s new cop on the consumer-finance beat is zeroing in on debt collectors and credit reporting companies.

The Consumer Financial Protection Bureau on Thursday proposed to add debt collectors and credit bureaus to the list of industries that agency officials can supervise in-person.

The agency gained the power to oversee payday lenders, mortgage companies and private student lenders last month, after President Obama used a recess appointment to install its director. It also can write rules to supervise other big companies.

Officials say they chose debt collectors and credit bureaus because those industries touch a vast number of consumers. They say consumers can’t shop around if a debt collector is abusive or unfair.

It’s the first time those industries would face in-person supervision similar to bank oversight.

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By James S. Granelli Los Angeles Times

February 15, 2012, 2:30 p.m.

Got your cellphones and your landline phones on the nation’s Do Not Call list, but you’re still getting telemarketing calls at dinner time? Especially those aggravating automated robo-calls?

The Federal Communications Commission clamped down on telemarketers Wednesday – even those you do business with, such as your bank – by placing severe limits on robo-calling and even texting.

FCC Chairman Julius Genachowski said Congress and his agency have long recognized the need for consumers to have control over the telemarketing calls that come into their homes, and the FCC has long had rules to put consumers in control.

“But despite these clear ground rules, too many telemarketers, aided by autodialers and prerecorded messages, have continued to call consumers who don’t want to hear from them,” Genachowski said.

In a 3-0 vote, the commissioners adopted changes to its telemarketing rules that:

– Require telemarketers to obtain prior written consent before placing robo-calls to consumers,

– Eliminate the exemption for companies that have an “established business relationship” with consumers,

– Require telemarketers to provide an automated, interactive opt-out mechanism during each robocall so consumers can immediately tell the telemarketer to stop calling and

– Strictly limit the number of so-called dead-air calls in which consumers answer phones and hear nothing.

Commissioner Robert M. McDowell bemoaned the seemingly constant telemarketing calls. “Sometimes, it seems like there’s no escape,” he said.

McDowell noted that the rules, which also are more consistent with Federal Trade Commission regulations, were narrowly limited to telemarketing robo-calls. He said the changes do not affect current requirements about informational calls or calls involving charities or political speech.

And with the election season upon us, you’ll definitely want to take those calls from Mitt, Rick, Newt and Barack.Read More Collection articles here

 Collections & Credit Risk | Wednesday, February 8, 2012

U.S. consumer debt unexpectedly climbed for the fourth straight month in December, a sign of increasing demand, willingness to spend and that consumers are feeling more confident about the economy.

The Federal Reserve report Tuesday showed that the total of all consumer credit outstanding grew a little softer $19.3 billion, or 9.3% at annual rate, in December after surging to a decade-high of $20.4 billion in November. The increase was the biggest gain in a decade, and much larger than expected by Wall Street economists.

Non-revolving credit, including student loans, car loans and loans for mobile homes, advanced 11.8% at annual rate to $1697.3 billion in the month from $1680.8 billion in November. Improving labor market condition coupled with increasing pay rate boosted demand on autos.

Auto sector posted another strong month for car sales, with 14.1 million annual rate cars sold last month. Also, demand on student loans increased as more Americans go back to school.

Revolving credit, which mostly measures credit card use, edged up 4.1% at annual rate to $801 billion in December from $798.2 billion in the prior month. Spending on credit cards grew for the second straight month as consumers continued to use credit cards more to purchase goods and gifts for holiday seasons.

Besides, since some of big banks imposed new fees on debit card use, more debit-card owners switched to credit card to avoid those fees.

For the year, total consumer credit rose 3.7%, the largest increase since 2007.

“We view this report as being consistent with broader trends of increased bank willingness to lend to consumers and increased consumer demand for credit” seen in the Fed’s recent survey on loan officers, said Cooper Howes, economist at Barclays Capital in a note to clients.

Most of the gain in non-revolving credit in December came from student loans, Howes said.

Credit card debt declined from a peak of $972.2 billion in September 2008 to $790.2 billion last April. Since then, the trend has flattened out and picked up to $801.0 billion in December.To read original article click here

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 By Hope Nelson-Pope, The Motley Fool

It can happen days, months, or years after getting your first credit card.

One day you look at the bill, and the minimum payment is almost out of reach. Years of purchases, enumerated monthly on sheets of paper, spell out what seems to be a lifetime of repayments and a small fortune in interest accrual. Maybe using those credit cards got you through college and you never broke the habit. Maybe you’ve got a sweet tooth for shopping. Or maybe, like so many people in this era, you and your family have fallen on hard times, and when the choice was between seeing your electricity cut off or putting the bill on credit, a little extra debt didn’t seem so bad.

However it happened, now you’re mired in debt and staring down a mountain of bills just as you’re trying to position yourself for retirement. It’s a horrifying situation, one you never expected to find yourself in, at least not now, when you should be dreaming about your upcoming golden years.

Take a deep breath. You’re not alone. And you can dig out.

Step 1: Know thy enemy.

Before you can do anything about your debt, you’ve got to know where your finances actually stand. Map out your current financial status, including all those ugly bits you’d just as soon not mention.

First, write out a detailed budget for your regular expenditures. Of course you’ll include the usual suspects — mortgage/rent, utilities, telephone, and groceries. But don’t forget to widen your budget to focus on other regular expenses.

Do you subscribe to Netflix (NFLX)? Pay a monthly fee for cable? How much are you spending on entertainment? Dining out? Shopping? What about those once-a-year expenses it’s so easy to forget, like insurance, new eyeglasses, car maintenance, or new school wardrobes for the kids? Figuring in all of these numbers will help you determine the true state of your finances.

But you can’t stop at a budget and call it a day. You need to map out the exact amount of debt you hold and itemize it based on its source. You’ve already plugged your cards’ minimum payments into your budget. But now, take it a step further and create a new chart listing the balance, interest rate, and minimum payments for each of your debts. Don’t forget to include student and auto loans, too!

Once you know what you’re dealing with on both sides of the financial coin, you can begin your quest to drive down your debt.

Remember: It’s not easy. But it is doable.

Step 2: Snowball like it’s December.

Now that you know the cold, hard facts of your financial situation, it’s time to get to work. You want to make your money work for you in an efficient manner — after all, with interest rates bearing down on your accounts, time is of the essence!

One word: snowball.

Now, in order to make good use of the snowball method, you’ve got to have the funds for your minimum payments well in hand. (If you don’t, then scroll on down to Step Three and I’ll meet you back up here when you’re finished.) The key to snowballing your debt is to pay the minimums each month on every debt, but then take an additional amount and apply it to one predetermined debt — let’s call it Debt A — until it dwindles down to nothing.

Once Debt A is gone, you take the money you were paying on it (minimum and extra together) and add it to what you were paying on Debt B until that debt is paid off. Lather, rinse, repeat until you’re debt-free.

If you’re looking for a quick win, select the debt with the lowest balance and work your way up. You’ll feel a sense of accomplishment sooner, which will help keep you on track toward your long-term goal.

But even though I’m a fan of the quick payoff, this snowball method isn’t my favorite. Find the debt with the biggest interest rate and get to work. It doesn’t just pay down your debt; it also saves you all the extra interest you would be paying, and a few extra percentage points can really add up.

So if I had three credit cards that looked like this:

Then I would arrange my snowball like this:

This way, no matter what the balances are, I’m paying down Card C quicker so I don’t have to sacrifice as much of my hard-earned money to interest alone. It takes diligence to pay in to a card that may not seem like the “quickest win,” but it’ll save you some cash in the long run.
Step three: Give your cash flow a nudge.

Use your current profession as a jumping-off point for additional work — if you’re a teacher by day, why not be a private tutor by night? Or set your alarm clock for the ripe old time of 3 a.m. and head out for a paper route (they’re not just for kids on bicycles anymore).

In short, sometimes the key to debt reduction is to give your cash flow a quick infusion. It’s often inconvenient, to be sure, but the payoff can be worth it.

Step 4: Invest in your future.

It may take months or even years, but if you consistently pay down your debt, you will eventually see the light at the end of the tunnel: financial freedom. It’s not a bad place to live. But your journey doesn’t end there.

Once you’re debt-free, your former snowball can help manifest those golden years you’ve been dreaming about. You can save that money in a savings or money market account. Create an emergency fund that will sustain you through life’s tough times (and life does bring with it some unexpected crises) so you won’t have to load up your credit cards with expenses you can’t afford to pay back. When you’ve got that under control, keep on saving — with an eye toward a long-term account to fund your retirement dreams.

If you’ve got a long-term time horizon, you might want to consider investments that bring a higher return. If you’re long on time but short on expertise, an index fund or ETF, such as the Vanguard Total Stock Market Index (VTSMX) or SPDR S&P 500 (SPY), may be a sensible choice. With one investment, you’ll access companies spanning the breadth of the S&P 500, including ExxonMobil (XOM), General Electric (GE), and Microsoft (MSFT).

The path from the red to the black side of the ledger can be long, but take heart. With some deft financial moves and a basket of patience, you can climb back out — and with money in your pockets, to boot.

Hope Nelson-Pope is online coordinating editor at The Motley Fool. She owns shares of Microsoft but none of the other companies mentioned in this article. The Motley Fool owns shares of Microsoft and has sold short shares of SPDR S&P 500. Motley Fool newsletter services have recommended buying shares of Netflix and Microsoft, as well as creating a bull call spread position in Microsoft.

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You may know them as those annoying scraps of paper that litter your purse or flutter from your wallet at inopportune moments, but receipts for credit card transactions are actually worth paying attention to.

Here’s what you probably didn’t know about them, but should:

Receipts are more secure than you think … Unless a merchant made a big mistake, you won’t see your whole credit card number on a receipt. That’s because the federal Fair and Accurate Credit Transactions Act — an amendment to the Fair Credit Reporting Act that took effect in 2006 — legislated that for better financial security, only the last four or five digits of your card number can appear. That’s why you see something like XXX-XXXX-1234 instead. Your card expiration date can’t show either.

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Summary:

ClearOne Advantage executives caution consumers against falling back into the credit-debt cycle—a potentially tempting option in light of positive economic reports.

Baltimore, MD, January 13, 2011- Executives at ClearOne Advantage, a Maryland-based debt resolution company, encourage cautious optimism in response to recently reported positive economic signs.

The jobless rate fell to 8.5 percent, the lowest rate in nearly two years (since February 2009) according to the U.S. Department of Labor:

“Both the number of unemployed persons (13.1 million) and the unemployment rate (8.5 percent) continued to trend down in December. The unemployment rate has declined by 0.6 percentage point (sic) since August,” according to the most recent report.

Furthermore: “The data surpassed economists’ expectations and mark a six-month stretch in which the economy generated 100,000 jobs or more in each month. That hasn’t happened since April 2006,” reported MSNCB’s Bottomline.

But millions continue to struggle. For example, the unemployment rate does not include the underemployed—those who have some, perhaps part-time work, but cannot afford to meet all of their financial obligations. Those consumers often rely on credit cards to make ends meet. But ClearOne Advantage executives recommend paying off or resolving unsecured debt over the continued credit-debt cycle for long-term financial success.

“Relying on credit keeps consumers dependent on—literally indebted to—credit card companies,” said ClearOne Advantage CEO Tomas Gordon. “Debt settlement can be an effective way out of the debt cycle for certain consumers.”

Debt settlement is a process in which debt professionals attempt to negotiate their clients’ unsecured debts (e.g., credit card debt, medical debt) down to a more affordable amount, until a mutually agreeable amount is reached between the creditor and the consumer.

“Simply put, debt settlement is a way for consumers to resolve their overburdening debt, even though—through no fault of their own—they cannot afford to repay their debts in full,” said Gordon.

Debt resolution options like debt settlement, including consumer credit counseling and bankruptcy, are especially helpful at this point in the economic recovery. While some economic figures offer hope that the country is heading in the right direction, experts agree that recovery is slow at best.

“This is not the time to start depending on credit, a mistake many were forced to make when unemployment rates began to soar at the beginning of the recession,” said Gordon. “Instead, this is a great time to break the debt cycle and learn how to get free from credit card debt completely.  For those who are able, we encourage them to pay off their debt in full and live within their means going forward. For consumers struggling with larger amounts of debt, we ask that they give us a call to see if we can help.”

To learn more, visit ClearOneAdvantage.com. To read more debt settlement articles click here

ABOUT US:

ClearOne Advantage is a full-service debt settlement company providing settlements of credit cards and other unsecured debts. Our executive leadership team is comprised of financial industry professionals with expertise in many of the industries that provide consumer lending services, making ClearOne Advantage the obvious choice when looking to settle debt. To learn more about the products and services that make ClearOne Advantage an easy choice in debt settlement call 1-888-785-5376 or visit ClearOneAdvantage.com.    

RESOURSES:

BLS.gov

http://www.bls.gov/news.release/empsit.nr0.htm

MSNBC.com

http://bottomline.msnbc.msn.com/_news/2012/01/06/10002777-hiring-gained-traction-in-december

CONTACT INFO:

ClearOne Advantage

1501 S. Clinton St. Ste. 320

Baltimore, MD 21224 

1-888-785-5376

CS@ClearOneAdvantage.com
www.ClearOneAdvantage.com

Summary:

Encouraged by a surge in the Consumer Confidence Index, ClearOne Advantage executives are cautiously optimistic for an improved economy in 2012, and are recommending that consumers begin 2012 with a financial budget in order to spend wisely and avoid additional credit card debt in the New Year.

Baltimore, MD, December 30, 2011- Executives at ClearOne Advantage, a Maryland-based debt resolution company, encouraged by an increase in the Consumer Confidence Index (CCI), are urging consumers to start the New Year on the right financial foot.

“As we head into the New Year, we can already see some encouraging signs,” said ClearOne Advantage Chief Operating Officer John Wrinn referring to the CCI, which rose much more than expected in December. Wrinn and other ClearOne Advantage executives are encouraged by this news, as well as holiday retail reports that indicate better-than-expected sales.

The CCI is issued by The Conference Board, an independent economic research organization. Their monthly Consumer Confident Survey is “a monthly report detailing consumer attitudes and buying intentions.” Simply put, the more confident consumers feel about the economy, the more likely they are to make purchases. According to an article by CNBC, “the surge builds on another big increase in November, when the index rose almost 15 points from the month before.”

This news comes in the wake of a holiday shopping season that surpassed expectation, according to the National Retail Federation, and—with returns and gift cards pulling consumers back into stores—is not yet over.

“While these positive indicators are certainly welcome news, consumers should be ready to spend money wisely in the New Year,” said Wrinn. To help their debt settlement clients and all consumers in the New Year, ClearOne Advantage is offering a few financial tips for starting 2012 off right:

• Prioritize 2012 goals: Instead of casually declaring New Year’s resolutions, write down one specific and realistic goal.
• Plan now for next year: With the holidays still fresh in mind, consumers should record all of their holiday spending, save receipts in a “Holidays 2011” envelope, and plan to set aside cash next year.
• Use gift cards before they expire: Consumer should avoid throwing gift cards in a drawer or waiting until stores begin imposing fees or reducing the value of the card. But once in the store, consumers should stick as close as possible to the gift card’s value.
• Budget: Tracking expenses can reveal exactly where money goes each month, which can also help consumers find ways to save more money by cutting unnecessary spending. Consumers should learn a few options for creating a budget, choose the best method for their family, and stick to it year round.
• Commit to using coupons consistently: Shoppers can save $5 to $15 per grocery trip, and possibly more with the grocery store’s loyalty savings card.
• Start filing taxes: Start collecting records now, find necessary forms on the IRS website and consider e-filing. When taxpayers e-file, they received their refunds faster (especially when using direct deposit) and confirmation that their forms were received. Plus taxpayers who find out they owe this year will have more time to plan for that payment.

“There are many ways that individuals can start the New Year with realistic financial goals,” said Wrinn. “At ClearOne Advantage, we aim to help individuals struggling with overwhelming debt get the help they deserve in 2012.”

Wrinn explained that while some economic indicators give people hope about the country’s economic improvements, many individuals will continue to feel financial pressure while unemployment rates remain high. Companies like ClearOne Advantage help consumers settle their unsecured debts, such as credit card debt and medical bills, at the time they need professional assistance.

To learn more visit ClearOneAdvantage.com.

ABOUT US:

ClearOne Advantage is a full-service debt settlement company providing settlements of credit cards and other unsecured debts. Our executive leadership team is comprised of financial industry professionals with expertise in many of the industries that provide consumer lending services, making ClearOne Advantage the obvious choice when looking to settle debt. To learn more about the products and services that make ClearOne Advantage an easy choice in debt settlement call 1-888-785-5376 or visit ClearOneAdvantage.com.

RESOURSES:

CNBC.com

http://www.cnbc.com/id/45795931

The Conference Board

http://www.conference-board.org/data/consumerconfidence.cfm

Consumer Reports Poll

ConsumerReports.org

National Retail Federation

http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1278

CONTACT INFO:

ClearOne Advantage

1501 S. Clinton St. Ste. 320

Baltimore, MD 21224

1-888-785-5376

CS@ClearOneAdvantage.com www.ClearOneAdvantage.com

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ClearOne Advantage is advising consumers against charging holiday shopping to credit cards, especially when many stores—e.g., Kmart, Sears, Walmart, Best Buy—offer consumers layaway payment plans.

 Baltimore, MD, December 25, 2011 –(PR.com)– Executives at ClearOne Advantage, a Maryland-based debt resolution company, are encouraging holiday shoppers to avoid additional credit card debt and instead to use cash or sign up for layaway payment options available at large stores such as Walmart, Kmart, Sears, Best Buy, and other furniture and department stores.

While many credit card companies offer incentives for purchases, these offers rarely result in significant savings for consumers. Instead, ClearOne Advantage executives are urging consumers who cannot afford to pay cash for last-minute holiday purchases, to choose layaway over charging purchases to their credit cards.

“It’s easy to overspend spend on loved ones this time of year, sometimes despite financial realities,” said ClearOne Advantage Executive Vice President John Repetti. He emphasized that paying cash for holiday spending can not only help consumers spend less overall, but will let shoppers start the New Year with less credit card debt.

However, he acknowledged that many shoppers simply don’t have the upfront cash, which is why layaway payment plans are available. Layaway lets consumers spread payments over a series of weeks or months. Shoppers can lock in holiday sale prices, avoid additional credit card debt, avoid interest payments, and spend within their means on major holiday gifts.

“Most of the big stores let shoppers pay for major purchases over several weeks, which not only helps them avoid charging purchases, but also provides an opportunity to start the New Year with a monthly budget in place,” explained Repetti. “Plus consumers can avoid the inevitable interest payments that accompany charging holiday purchases.”

In addition to Kmart and Walmart, other large retail stores that offer layaway include Marshalls, T.J. Maxx, Burlington Coat Factory, Sears, Best Buy, and Toy “R” Us. As with all financial agreements, shoppers should understand the payment terms before signing up.

“It is easy to rack up debt—especially when more and more consumers are forced to depend on credit to meet monthly expenses,” said Repetti. “Exploring layaway options may help some people at precisely the time of year many tend to overspend.”

About Us:

ClearOne Advantage is a full-service debt settlement company providing settlements of credit cards and other unsecured debts. Our executive leadership team is comprised of financial industry professionals with expertise in many of the industries that provide consumer lending services, making ClearOne Advantage the obvious choice when looking to settle debt. To learn more about the products and services that make ClearOne Advantage an easy choice in debt settlement call 1-888-785-5376 or visit ClearOneAdvantage.com.