Avoid Personal Bankruptcy

The financial services industry spent a whopping $117 million to lobby Congress and the federal government in the first three months of 2011, according to research by the Center for Responsive Politics. A major focus of all that lobbying pressure was to delay, change or repeal various parts of the Dodd-Frank financial reform law, which Congress passed last summer.

“A lot of people think the lobbying stops once a bill goes into law, but that is definitely not the case with Dodd-Frank,” says Michael Beckel, spokesman for the center. “There’s a lot of deep-pocketed interests that are trying to slow down or thwart or repeal completely the regulations that were passed last year.”

That total includes all industries of the financial and consumer credit sector, including $9 million from credit companies, $14 million from real estate, $16 million from commercial banks, $25 million from securities and investment houses, and $40 million from insurance companies, the center found.

Lobbyists don’t have to write on their disclosure forms what exactly they’re lobbying about. But the fact that Dodd-Frank remains a major focus is seen in the large shift that’s taken place recently. When Dodd-Frank

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Tune in to this week’s installment of The Credit Line, hosted by Credit.com’s chairman and co-founder Adam Levin on Los Angeles’ KFWB 980 AM this Saturday, July 15, at 9 a.m. PST/Noon EST.

The show is co-hosted by L.A. radio personality Jeff Levy.

The Growing Epidemic of Child Identity Theft

This week you’ll meet Jaleesa, who became a victim of child identity theft while in the California foster care system. Unfortunately, she didn’t discover the crime until she applied for her first credit card and was told she already had bad credit.  Studies estimate that hundreds of thousands of people under the age of 18 become identity theft victims every year. What’s worse, it may not necessarily impact young victims’ daily lives when it occurs, but can have a devastating impact when they reach adulthood and look to build a financial future.

Matt Cullina, CEO of Identity Theft 911, will introduce Jaleesa and speak about the company’s project with Joint Star to help thousands of children within the foster care system who are victims of identity theft. As a foster pare

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The unsecured debts have tied up U.S. consumers and made them run out of money to such an extent that they are simply at a loss. Although there has been much speculation about the use of credit card and strengthen the idea of ​​putting a complete ban on its use, it is easier said than done. A great option that can be seen as the solution of credit card debts is debt consolidation service.

This is probably one of the most widespread and accepted ways to reduce credit card debt because debts are merged into a single amount and the payments are made to the creditor. Another way is to transfer the balance to a low interest card. However, credit card debt is, in itself, hardworking and the best way out is to save lots of money and take longer to pay off credit card debt. For example, if the payments to be made are based only on the amount of interest is a good idea to make duplicate payments, because through the process to clarify the amount of interest, it will be possible closer to that principle. In this way, the amount of the debt burden can be reduced to a large extent.

There are many debt consolidation companies at the market, so make a proper research, before choosing a reliable specialist. Con Read more…

If you’re feeling a bit fuzzy about what prepaid cards can (and can’t) do for you, you’re not alone. There’s a lot of conflicting information out there right now. Let’s take a look at three common misconceptions and debunk a few myths.

Misconception #1: Prepaid cards can help you qualify for a credit card

  If you’re considering getting a prepaid card because you can’t qualify for a credit card, I understand your dilemma. But keep in mind that prepaid cards—that is, cards that don’t offer credit but are instead preloaded with your own money—will not help you qualify for an unsecured credit card. A secured credit card, on the other hand, is a credit-extending card that is backed up by a security deposit you’ve placed in a bank account. Keeping up with your payments on a secured credit card can help you eventually qualify for an unsecured, traditional credit card.

Listen, I know this can get a bit confusing because some prepaid cards claim to help build your credit history. They say this because they report to PRBC, an agency that reports alternative data like rent and utilities. If you’re in the market for

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Call it another debit card that got away. We don’t know how we missed this, but Procter & Gamble was so gassed (oh, the puns!) about its heartburn medicine Prilosec OTC that it offered $25 prepaid debit cards to consumers who bought two big boxes of the stuff. The promotion ended in February.

Perhaps the best thing about the cards, besides the free money, was the goofy purple Prilosec logo printed on them. Another short-lived debit card with silly things on the front was the Kardashian Kard, a prepaid debit card emblazoned with a photo of the Kardashian sisters themselves. The Kardashians pulled their sponsorship within weeks of the card’s introduction, after they were blasted for promoting a debit card with such exorbitant fees.

In a similar reversal of fortune, nobody seems to want anything to do with the Prilosec OTC card anymore, either. Procter & Gamble spokeswoman Elizabeth Mang didn’t respond a bunch of calls we made asking for details.

Still, it leaves us wondering. Is it worth $25 to go to a store and swipe a card that veritably screams, “Hi! I have lots of gastrointestinal issues!”

There’s a new kind of private student loan in town, with pros and cons that should be weighed before signing up. Wells Fargo and U.S. Bank have recently rolled out fixed-rate student loans to attract more consumers, as the private loan market continues to lose ground to the federal government, which is currently offering subsidized loans with a hard-to-beat 3.4% fixed rate.

Still, at least these two banks are trying their best to provide more options to consumers.

Wells Fargo has announced fixed-rate options for several of its existing education loans. Fixed rates range from 7.75% to 14.25%, depending on the applicant’s credit worthiness. The better your credit, the lower your interest rate. The bank’s variable rate loans, meanwhile, carry rates between from 3.50% to 12.74%.

U.S. Bank’s fixed-rate student loan carries a 7.99% interest rate, subject to a credit approval. The bank’s variable rate loan options range from 3.45% to 10.95%.

Are they worth it?

First, the pros: Private student loans typically carry variable interest rates, which can fall or rise based on a benchmark rate—either LIBOR or the prime rate—so these new fixed-rate loans do eliminate some risk. You’ll sleep be Read more…