Category Archives: Debt Management

Student Loan Debt Continues To Rise Faster Than Income

Freedom Financial Network Continues to Urge Consumers to Spend Conservatively

FFN Quarterly Comment: Debt continues to rise faster than income increases.

San Mateo, CA – September 11 – When it comes to the nation’s economic recovery, the summer of 2014 was hot, from real estate prices to auto sales to credit card debt, notes the Freedom Financial Network Quarterly Comment on consumer debt and credit issues.

Freedom Financial Network observes several economic indicators closely and provides consumer education in its work to help consumers get out of debt and stay out of debt.

“In the past quarter, consumers continued to respond to a healthier economy by dusting off credit cards and replacing vehicles,” said Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network (FFN). “This optimism is heartening, but we caution consumers to remember the lessons of the past economic downturn and prepare for the future. Fortunately, we’re seeing a hint of this caution as people saved a higher portion of their income this summer.”

In July, non-revolving consumer debt increased by more than 10 percent compared to this time last year. The increase was driven in part by motor vehicle sales that were more than 5 percent higher than last year and 10 percent higher in August than in July. Hand in hand with those sales are increases in auto loans with terms of six to seven years. Experian Automotive data show that nearly 25 percent of all new-car loans were for 73-84 months in the first quarter, up from just 10 percent four years ago.

“Those new vehicles on the road might be good for the U.S. economy, but consumers need to be cautious when evaluating whether a purchase – of a car, home, vacation, education or other goods – will be good for their personal economy,” added Andrew Housser, FFN co-founder and CEO. “We become concerned when we see debt increasing at a double-digit rate, while income increases at a tenth of that pace.”

Recent financial data as reported:

1.    Total consumer debt continues to skyrocket compared to past years. In July (the most recent data available), consumer credit rose by 9.75 percent, year over year. With the increase, total consumer debt (excluding mortgage debt) is projected at $3.238 trillion, which is $16 billion higher than the previous month. This makes 32 consecutive months of record highs.

2.    Revolving debt also climbing. In July, total consumer revolving debt, which includes credit card debt, rose 7.4 percent. The total amount of revolving debt held by U.S. consumers was $880.5 billion, or $5.3 billion higher than in June.

3.    Personal income rising, but slowly. In July (the most recent data available), personal income rose by $28.6 billion, or 0.2 percent. Disposable personal income rose $17.7 billion or 0.1 percent, the Bureau of Economic Analysis reports.

4.    Unemployment stays put. The U.S. Bureau of Labor Statistics reports the national unemployment rate was 6.1 percent in August, little changed in recent months.

5.    Consumer savings improved. In July, consumers saved 5.7 percent of their income, up from rates in the 3 percent range several months ago.

The FFN Quarterly Comment pulls together significant statistical releases and provides quarterly comment on timely debt and credit issues that matter to consumers. To schedule an interview with Kevin Gallegos or Andrew Housser, contact Aimee Bennett at 303-843-9840 or aimee(at)faganbusinesscommunications(dot)com.

Freedom Financial Network (http://www.freedomfinancialnetwork.com)
Freedom Financial Network, LLC (FFN), provides comprehensive consumer credit advocacy services. Through the FFN family of companies – Freedom Debt Relief, Freedom Tax Relief, ConsolidationPlus, FreedomPlus and Bills.com – FFN works as an independent advocate to provide comprehensive financial solutions, including debt consolidation, debt resolution, debt settlement and tax resolution services for consumers struggling with debt. The company, which has resolved more than $3 billion in debt and assisted more than 265,000 clients since 2002, is an accredited member of the American Fair Credit Council, and a platinum member of the International Association of Professional Debt Arbitrators.

Based in San Mateo, Calif., FFN also operates an office in Tempe, Ariz. The company, with 650 employees, was voted one of the best places to work in the San Francisco Bay area in 2008, 2009, 2012, 2013 and 2014, and in the Phoenix area in 2008, 2009, 2010, 2012 and 2013. FFN’s founders are recipients of the Northern California Ernst & Young Entrepreneur of the Year Award.

Contact Information
Aimee Bennett
Freedom Financial Network, LLC
http://www.freedomfinancialnetwork.com/
+1 303-843-9840

Tips on Improving Credit Scores

The Home Loan Arranger, Jason M. Ruedy, Provides Tips on Improving Credit Scores Before Applying for a Mortgage

Mortgage interest rates are still sitting near record lows, and it’s The Home Loan Arranger, Jason M. Ruedy’s, goal to help as many people as possible refinance their current mortgage or obtain a purchase loan before interest rates rise.

Denver, Colorado – September 10 – Denver Mortgage Banker Jason M. Ruedy, also known as The Home Loan Arranger, is on a mission to help as many people as possible refinance their current mortgage or obtain a purchase loan before mortgage interest rates rise. With interest rates still sitting at record low levels, Mr. Ruedy believes that now is the best possible time to either refinance or apply for a new mortgage. However, the lowest available mortgage interest rates are usually given to individuals with the highest credit scores. Therefore, Mr. Ruedy offers advice on how to raise a credit score prior to applying for a refinance or new mortgage.

On August 5, 2014, RealtyTimes, a website dedicated to providing real estate news and advice published an article entitled How to Improve Your FICO Scores Quickly. The article focuses on the fact that now is a great time to refinance or apply for a purchase loan – but mortgage lenders focus on FICO scores, so it’s important for potential borrowers to improve their scores as quickly as possible before attempting to refinance or apply for a new loan.

The article lists several dos and don’ts for individuals attempting to quickly raise their credit score. Some examples of the published tips include: keeping existing credit cards open, not maxing out or consolidating credit card accounts, not transferring transfer credit card balances, not changing change jobs right before applying for a mortgage, paying bills on time, paying down debt, and shopping around for the best possible mortgage terms from multiple lenders.

According to The Home Loan Arranger, there are several other methods not listed in the RealtyTimes article that can be used to try and quickly raise a person’s credit score. These methods include:

Reviewing your credit report, spotting errors, and disputing all errors until they are corrected.

Requesting that your credit limits be raised.

Avoiding the establishment of new credit cards, lines of credit, or other types of debt too quickly.

“As a mortgage lender who has been in this business for more than two decades, I’ve seen first-hand how high and low credit scores can affect the mortgage interest rate offered to potential homebuyers. If anyone is thinking about either refinancing their current mortgage, or applying for a purchase loan, my advice is to plan ahead. Make sure to get your credit score as high as possible before applying for a loan. Don’t wait until you’re half way through the application process before you start worrying about how you’re going to raise your score so you can obtain the best possible interest rate.” – Jason M. Ruedy, The Home Loan Arranger

About The Home Loan Arranger:
Mr. Jason M. Ruedy, also known as The Home Loan Arranger, has 20+ years of experience in the mortgage business. His company was built around the crucial principles of hard work, discipline, and determination. The Home Loan Arranger evaluates client applications quickly and efficiently and structures loans with the best possible terms. Mr. Ruedy is successful in achieving loan closings for clients while meeting their highest expectations. Jason M. Ruedy is ranked #2 in the state of Colorado by Scotsman Guide, which is the top leading resource for mortgage originators.

For media inquiries, please contact Mr. Jason M. Ruedy, “The Home Loan Arranger”:

The Home Loan Arranger
512 Cook St #100
Denver, CO USA
Phone: (303) 862-4742
Toll Free: (877) 938-7501
http://www.thehomeloanarranger.com/

Bad Business Debt Timeline

C2C Resources Releases Bad Business Debt Timeline in Response to Business Summer Slump

Licensed commercial debt collection agency C2C Resources released a bad business debt timeline for companies struggling through the seasonal summer slump.

Atlanta, GA – September 10 – C2C Resources, a leader in commercial debt collection across the United States, released a bad business debt timeline today to assist companies who are struggling through the seasonal summer slump.

With employees often taking leave for family vacations, the summer months typically result in a delay in sales and productivity. Many businesses also feature season products and services such as pool supplies, AC repair and summer tourist town attractions. C2C Resources believes B2B and B2C companies of all sizes struggle from the summer slump.

“Unfortunately, while your business may have forecasted a decreased cash flow in the summer, there are other businesses that do not, and many could be your customers,” explained Todd Tinkler, President of C2C Resources. “The ripple effect can easily occur once this happens. To overcome it, stick to a schedule when invoicing customers and following up on past-due accounts.”

The company released the following timeline to help companies decrease bad business debt by establishing credit and accounts receivable policies.

Day 0: Send the invoice to the customer.

Day 15: For new customers or large invoices, place a pro-active call to confirm the customer has received the invoice. Always verify that the shipment was received and the order was correct. It is a good way to avoid a dispute later.

Day 35: Depending on the payment agreement, send a past-due reminder notice.

Day 45: Send a past-due follow up notice on smaller accounts and make initial past-due calls on larger accounts. If time permits on smaller accounts, a call is better than written communication at this stage.

Day 55: Move forward with the initial past due call or follow up call depending on the action taken on Day 45.

Day 65: Send a termination of credit notice or a 60-day demand notice to the delinquent customer.

Day 80: Call the client with a final demand for payment.

Day 90: Send a final demand notice.

“After 90 days you need to turn to a third-party agency for help,” said Tinkler. “Don’t risk losing the chance for payment. The longer you wait, the harder it will be.”

About C2C Resources:
C2C Resources is a global Commercial Debt Collection agency headquartered in Atlanta, Georgia. The company collects commercial debt on behalf of their over 25,000 clients and is considered one of the top agencies in the country. The executive team at C2C brings more than 60 years of experience helping businesses collect their accounts receivable.

C2Cs powerful combination of Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, can help your company be more effective with your own in-house collecting and maximize recovery of accounts turned over for collection.

Contact Information
Trey Cefalu
C2C Resources LLC
http://www.c2cresources.com
+1 5046168434

Best State to Pay Back Student Loan

Utah is the Best State to Pay Back Student Loans, Maine is the Worst

A new Schools.com study of student loan debt, job markets, earning potential and cost-of-living found that Utah is the best state for college graduates to repay student loans, while Maine is the worst.

Foster City, CA – September 15 – With growing job opportunities, strong scores in earning potential, and low cost-of-living rates, Utah tops the list as the best state for graduates to repay their student loans, according to the 2014 Schools.com Best States to Repay Student Loans study. Maine ranked as the worst, based on high debt-to-income ratios, above-average percentage of residents with student loan debt, and a bottom five ranking for average income.

Utah ranked in the top 10 nationally in every category, including a No. 7 ranking for average income and No. 4 for debt-to-income ratio. Wyoming took the No. 2 spot thanks to low unemployment rates, lower than average student loan debt amounts and a No. 2 rank nationally in student debt-to-income ratio. Washington came in third due to its No. 1 ranking for annual income and top three score for student debt-to-income ratio.

“Although the average debt burden varies state-by-state, the national average amount of student loan debt is nearly $30,000 and college graduates are feeling the pressure of those loans,” says Michelle LaFrance, Web Producer of Schools.com. “The best states for repaying student loan debt relieve that pressure by offering college graduates opportunity in the form of growing job markets, competitive salaries and perceived impact of student debt: cost-of-living coupled with earning potential.”

Meanwhile in Maine, the combination of bottom three ranking nationally for student debt-to-income ratio, the second worst annual average income and average student loan debt near $30,000, resulted in the state’s ranking as the worst state for repaying student debt. Rhode Island is the second worst state due to its high cost-of-living and bottom five scores in annual average income and student debt-to-income ratios.

Iowa followed Rhode Island, ranking in the bottom five nationally for average annual income, student loan debt-to-income ratios, average student debt amounts and percentage of students with debt.

“Indeed, it remains a tough economy for many states,” notes LaFrance. “Students may need to consider relocating or broadening their job search to other areas for better employment opportunities that allow them to pay down their loans as quickly as possible.”

Here are the 10 best U.S. states to repay student loans in 2014, according to the Schools.com Best States to Repay Student Loans study:

1. Utah
2. Wyoming
3. Washington
4. Nevada
5. Virginia
6. Tennessee
7. California
8. Colorado
9. Kansas
10. Texas

Here are the 10 worst U.S. states to repay student loans in 2014, according to Schools.com Best States to Repay Student Loans study:

1. Maine
2. Rhode Island
3. Iowa
4. New Hampshire
5. New Jersey
6. Pennsylvania
7. Vermont
8. Mississippi
9. West Virginia
10. Montana

For additional details on this study, please see the Schools.com articles on the Best States to Pay Back Student Loans and Worst States to Pay Back Student Loans for 2014.

Methodology

This analysis of the Best and Worst States to Pay Back Student Loans is based on each state’s Economic and Arrears Factor, a proprietary metric developed by Schools.com that considers the following:
Average salary, according to figures from the Bureau of Labor Statistics (BLS), 2013
Cost of living, based on data from C2ER, 2014
Unemployment rate, based on figures from the BLS, June 2014
State-level student debt statistics, based on figures from the Project on Student Debt, 2012
Student debt-to-income ratio, based on data from the BLS and the Project on Student Debt, 2012
Likelihood of having debt, based on figures from the Project on Student Debt, 2012
Student default rate by state, based on data from the Department of Education, 2013

Schools.com is a resource for the career-minded student. With industry leading information on education and career opportunities in the U.S. and Canada, Schools.com provides students and prospective students with the right information to help them advance their education and career. Featuring in-depth information on popular degrees and certifications, careers and industries, and college and education news, the site is a higher education resource for the career-seekers and career-changers. Schools.com is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Interneuuwt marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that meet their needs. The company is a leader in visitor friendly marketing practices. For more information, please visit QuinStreet.com.

Contact Information
Erin Ellis
QuinStreet, Inc.
+1 (650) 578-7822

Commercial Debt Collection Agency Tips

C2C Resources Releases Four Reasons to Partner with a Licensed Agency

As a leading commercial debt collection agency, C2C Resources released a tip sheet of the top four reasons to partner with a licensed agency.

Atlanta, GA – September 09 – C2C Resources, an expert in licensed commercial debt collection and a member of the International Association of Commercial Collectors Inc. (IACC), released a tip sheet today of the top four reasons to partner with a licensed agency.

With over 20 states requiring commercial collection agencies to be licensed to do business in their state, C2C Resources is also fully licensed in every state where they do business.

“We hold our agency to high standards, exceeding the requirements of state licensing, because we value our customers and the struggle they are going through with delinquent payers,” explained Todd Tinkler, President of C2C Resources. “It is a shame that so many businesses are operating illegally. We always advise companies who inquire about our services to ask about licensing when researching who they want to partner with. We know we don’t have anything to worry about!”

The following are the top four reasons to partner only with a licensed commercial collection agency:

1.    Licensing is the law.
2.    Licensing protects the business’s money through required trust accounts and bonds.
3.    Licensing protects the business from a possible lawsuit.
4.    Licensing maximizes recovery. If the debtor finds out that the agency is unlicensed, he or she could threaten to report it. In some states, regulators will require the agency to give the collected money back if reported.

If the company is located in one of the following states, the agency must be licensed to handle your business: Alaska, Arizona, Delaware, Florida, Idaho, Illinois, Minnesota, Nebraska, Nevada, New Jersey, New York (City of Buffalo), North Dakota, Oregon, Tennessee, Utah, Washington and West Virginia.

If the delinquent customer is located in one of the following states, the agency must be licensed: Arizona, Arkansas, Delaware, Idaho, Illinois, Minnesota, New Jersey, New York (City of Buffalo), North Carolina, North Dakota, Oregon, Utah and Washington.

For a PDF version of the tip sheet, visit: http://www.c2cresources.com/site/License.pdf. The above is not intended to serve as legal advice.

About C2C Resources:
C2C Resources is a global Commercial Debt Collection agency headquartered in Atlanta, Georgia. The company collects commercial debt on behalf of their over 20,000 clients and is considered one of the top agencies in the country. The executive team at C2C brings more than 60 years of experience helping businesses collect their accounts receivable.

C2Cs powerful combination of Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, can help your company be more effective with your own in-house collecting and maximize recovery of accounts turned over for collection.

Contact Information
Trey Cefalu
C2C Resources LLC
http://www.c2cresources.com
+1 5046168434