Rusty Law

The Payoff

Extortion has become an increasingly popular crime.  High profile cases such as those of David Letterman and John Travolta have come forward on a national scale, but on a smaller celebrity degree, the caseload of such threats has increased to five times what it used to be for a security and investigation firm in New York.  Also increased is the number of debt servicing ambiguities—companies collecting for debts they do not own.  

You may owe the money, but who owns the debt?  Often in small claims court, credit card collections go uncontested; defendants start making payment arrangements before verifying that the company they are paying is really the company whom they owe.  This can be the situation for credit card debt and mortgage debt alike, where we have “show me the note” cases.  If you are unclear on the servicer trying to collect, ask.  Seek legal counsel.  Furthermore, there may be other options available to you besides what the bank or financial institution will offer.  A second look could be worth it.  

Security experts advise against unguarded use of electronic communication as a thwart to blackmail.  That is a lot to give up in this age of personal technology.  Your life does not have to come to a halt in the case of credit card debt or foreclosure, but you may want to have your case reviewed by an attorney.  

Last Minute Shopping

Fiscal fitness through the holidays is nearly as difficult as dieting.  ‘Tis the season to go shopping!  Keep in mind, though, that credit cards are plastic band aids on purchases which can result in substantial debt over long-term interest rates.  Your horoscope may not say “avoid credit card debt,” but your credit score will.  

If you are going to use credit cards on holiday purchases, stack the deck in your best interest.  Use lower interest rate cards first before you rely on higher interest rate cards.  This will help reduce cost of debt over time.  

How you handle debt affects your purchasing power for Christmas-yet-to-come, and other days as well.  Everything piles up on your credit report, which can affect your ability to buy a house, a car, a student loan, a lot of things.  You decide if your credit score is going up or down for the holidays.  Last minute shopping can create long-term debt.  As you rush on final impulses, beware of what you pile on your cart and credit card balance.  

Bad Credit Card Debt

Credit cards are a great way to bulk up on large debt at premium pricing.  That’s not a good thing.  As easy as it is to obtain and use a credit card, the bills are often NOT easy to pay off.  

The Federal Reserve has new rules to take effect in July of 2010 regarding credit card practices, and the Senate has just passed a bill underscoring some of those regulations, including online or phone payments without added fees, and 45 days’ notice of interest rate changes with accompanying explanations, plus stricter control on usage of credit cards by those under 21.  

In the meantime, credit card debt relief or reduction can be a long and arduous process.  You may want to seek legal guidance to streamline your route.     

In looking for a lawyer to help with credit card debt, you want an attorney who handles consumer law or bankruptcy.  Of course I would appreciate your business, but if you’re a credit card aficionado, you’re probably used to shopping.  Often practice areas are given on attorney websites, or listed in the phone book.  It costs nothing to ask an attorney to consider taking your case.