Saturday, December 10, 2005

 

Some interesting articles

I found this story on MSN Money, its about how a single mom with 3 kids, 2 mortgages and a car payment is surviving on a salary of 31k. There are some good tips in the article on getting by with less, plus I find the fact that she is able to get by inspiring.

A second article I found at MSNM is about the business of bad debt collecting. It seems that the latest thing in debt collection is to buy old charged off debts for pennies on the dollar and try to get people to make payments against them. The problem is that many of these debts are beyond the statute of limitations and have gone off of peoples credit reports, for instance 10 years ago abe owed 2000 he couldn't pay. His credit card company gave up on him and charged off the debt. It stayed on abe's credit report as a charge-off for 6 years (each state differs) then the statute of limitation kicked in and the debt was no longer on abe's credit report. Then his debt was purchased by the debt collection agency who managed to talk abe into making a payment on it. That reopens the debt again and bingo abe's clean credit report is not so nice again. Even if abe pays it all off, it still stays for another 6 years. The article recommends that if you have to go to the extreme of not paying a debt, once the charge-off is off your credit report make sure it stays off and don't pay anything if someone is trying to collect on it.

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