Asian Journal- The Filipino-American Community Newspaper

Danger, danger. According to a recent newspaper article, a lot of consumers are falling behind on their credit cards at an alarming rate.  This conclusion comes from analysis of financial data obtained from the country’s largest credit card issuers.  The greatest increase, according to the study, is among accounts that are 90 days late.  If you have ever been 90 days late on paying your bills, you know that by this time, your accounts are usually turned over to a collection agency.  The collection agency is the creditor’s “hired gun” and their only job is to harrass you and make your life miserable.

Experts agree that this growing problem is partly a result of the subprime mortgage crisis and is only expected to get worse in the days ahead. Obviously, when homeowners can barely afford to even make their mortgage payments, other debts such as credit cards simply have to wait to get paid. Some of the biggest lenders like Advanta, GE Money Bank and HSBC are reporting increases of 50% or more on delinquent accounts compared with the same period a year ago.  Economists are predicting that delinquencies and defaults will rise further as the foreclosure crisis worsens.

What does all of this mean to most people?  Well, I think what this means is that uncontrolled debt problems can easily leak into other areas of your finances unless you are careful.  For example, some people tell me that the only way they are able to make their credit card payments each month is by borrowing from other credit cards.  This may work for a short period of time but if you continue to do this, you will end up being bankrupt when you can no longer pay the increasing monthly payments.  Trying to borrow your way out of debt is committing financial suicide.  It simply doesn’t work.

Just a few years ago, a lot of debt-ridden homeowners were at least able to tap into their home equity (as a last resort to avoid bankruptcy) and use the cash to pay debts.  But with the current real estate market condition where property values in some areas are down as much as 50% from just a few years back, these same homeowners are finding it impossible to refinance their mortgage or obtain an equity line of credit.  Because banks are no longer willing to loan money like they used to, a lot of homeowners are left with no option but to miss payments on their monthly debt obligations.

If you are facing serious debt problems, the time to seek help is now, not later because the longer you wait, more often than not, the more you limit the options that may be available to you.  If you are one of the thousands of homeowners in this country who are dealing with a foreclosure remember that time is of the essence and important legal and property rights may be at stake.  Seek counsel immediately from an experienced and knowledgeable bankruptcy attorney who can advise you regarding possible legal options.  In most cases, it’s not as bad as you think but it is important to act quickly before it’s too late.

For a free attorney consultation, please call our office at Toll-Free 1-866-477-7772.  We have offices in Glendale, Cerritos and West Covina.

(None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray Bulaon has successfully helped over 4,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at  TOLL FREE  1-866-477-7772).

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