A financial institution Trans Unions presented us with a quarterly analysis of new trends in the mortgage industry. The data collected found that mortgage loan delinquency increased for the twelfth straight quarter and hit 6.89 percent, which is an all time national average high. This is the only time in American history where delinquency rates rose and did not decelerate after three consecutive periods.

The statistic has been traditionally looked upon as a precursor to foreclosure and it increased by 10.24 percent from the previous quarter's 6.25 percent average. Mortgage borrower delinquency is up by around 50 percent, up from 4.58 percent.

Mortgage borrower delinquency rates in the fourth quarter of 2009 were highest in Nevada and Florida while the lowest mortgage delinquency rates were North Dakota, South Dakota and Alaska. Areas that showed the biggest amount of growth in delinquency from the quarter before were the District of Columbia, Delaware and Louisiana. Each state in the United States saw an increase in mortgage delinquency rates.

The information collected was not completely dismal for the mortgage sector in the fourth quarter. Thirty eight Metropolitan Statistical Areas actually pointed to a decrease in their mortgage loan delinquency rates since the third quarter. Areas in Oregon, Indiana and Pennsylvania boasted the most improved credit conditions.

The variations in delinquency point to the fact that the recession and eventual recovery are both contingent on house price conditions and unemployment levels. A bit of good news is that in the third and fourth quarters of 2008, the median price of single family homes that already existed plummeted to almost seven percent between 2008's third and fourth quarters, but in 2009 it only dropped -0.4 percent between the third and fourth quarters of 2008.

What does this mean for the future? TransUnion predicts that 60 day mortgage delinquencies will peak between 7.5 and 8 percent over the course of 2010. Additionally, it is believed that Nevada will experience the highest mortgage delinquency rate by the middle of 2010, and North Dakota is expected to continue to show the lowest mortgage delinquency rate by the summer.

Income is limited these days for everyone, who struggles to maintain the standard of living. In the past, loans carried you through college, but now that you're out these debts have come out to haunt you. You may be contacted by various debt collectors and left a frantic mess seeking someone who can help you with a school loan consolidation.

A good deal of students that have just finished their education and are currently looking for jobs try for federal school loan consolidation first. This loan has a great deal of benefits. First, the government is the source of this loan but it is issued by private lenders. That means that the time you have to repay the loan can be extended for a long duration.

Maybe the most tempting aspect of school loan consolidation is that the multiple student loans are substituted with just one loan. The overall sum of the debt is reduced; at times this reduction can even go up to 60%. This, of course leads to reduction in your monthly payment.

Even better, the new rate of interest is determined by the weighted average of the rates that are applied on your present loans. In addition you'll get rid of the mental stress associated with remembering the details about multiple loans. Consolidation does not require a cosigner or any checking of the credit score, and you can utilize this opportunity to improve the credit score or rating.

The only drawback is it is hard to prove yourself eligible for the federal school loan consolidation if you are delinquent or in default. Regulations from the official Federal Education Website include:

Eligibility Requirements:

1. To qualify for a Direct Consolidation Loan, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan.
2. They must make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.
3. Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.
4. Borrowers who have only a Direct Consolidation Loan cannot consolidate again unless they include an additional loan

 The standards to be qualified for this loan can be tricky to navigate through, leaving many ineligible for the loan. Nevertheless, it is worthwhile to check to see if you qualify. It could be a good resource for protecting your finances in the future.

Identity theft is a crime that is growing more rapidly than any other type of illegal activity in America today. According to the Federal Trade Commission, one in every ten people will fall victim to identity theft this year. One form of this crime is known as credit card skimming. This is a way for identity thieves to get your credit card information and keep it on a storage device to be utilized later for fraudulent purposes.

An identity theft has to simply swipe the card through the skimmer, like when you swipe it through the machine at the local store. It takes a small amount of technology and all of the items that are needed to make a skimmer are available at radio shack or the internet. The criminals will utilize the information themselves or sell it to other criminals all over the country, or even the world.

This crime can happen anywhere that you can use your credit or debit card. Examples include retail stores, gas pumps, ATMs, basically anywhere you can swipe a card. A bar or restaurant is most likely the easiest place for skimming to happen because you will hand someone your card and lose sight of it for a period of time.

There are a few simple precautions that one can take to avoid credit card skimming. First, only use your credit or debit card in environments that you are comfortable and familiar with. Be aware of your surroundings.

Utilize cash more often than credit cards. Check out the machine you are using. If it doesn't look right don't take the chance. And most importantly, treat your credit card like it is gold! Finally, check your accounts on a daily basis.

If you are a victim to a fraudulent charge it is suggested that you let law enforcement know and close up your accounts before the activity gets out of control. It can be helpful to law enforcement if the first point of credit card skimming can be located. Investigations like these have the capacity to be lengthy and usually involve several states and jurisdictions. The sooner you can catch the fraudulent activity, the better.

Bad debt can sometimes feel like a monkey on your back. It's constantly on your mind, and oftentimes the stress can be crippling. You may be able to take solace in the fact that you are not alone. There are thousands of people just like you in the United States that are going through the exact problems.

Filing for bankruptcy might seem like the best choice at the moment, helping you to get around loan payments. But before you jump the gun, think long and hard. If you end up filing for bankruptcy, this will stay on your credit report for ten years and any attempt to improve credit, obtain a job or residence, or car are futile.

Something to consider is professional help to settle your credit card debt. Do some research. Browse through the internet, talk to financial agencies and take recommendations from others who have gone through the same problems. Be sure that your debt settlement agency is legit. Many tout promises of debt annihilation but will merely tell you to file bankruptcy and charge you to do it.

After you find the perfect debt settlement agency, work with them step by step. One of the beautiful things about this is that the company will work and communicate with the bank or card company for you. That means no more phone calls from the banks or collection agencies.

Also, debt settlement corporations have a professional relationship with the banks and other such establishments that can help you. They will let the creditor know that you are on the verge of bankruptcy and that they will not collect anything if this is going to happen.

So, you can see now why considering aid from a professional to take care of your debt makes a large difference. You can use this way to obliterate all of your credit card liabilities; one at a time from the card that charges the highest quantity of interest to the card with the lowest.

Your credit score is like your criminal record. Both follow you around for a very long time, and both are supposed reflections of the person you are. Only you and perhaps your lawyer know your criminal record. But your credit score can be pulled when you apply for a credit card, or go to get a new car, or even try to move in to a new place.

For those not in the know, your credit score is based on a number system between 300 and 850. A secret formula (OK a mathematical algorithm) determines what your score should be. Analysts and creditors agree that your credit score is a very accurate prediction of how likely you are to pay off your bills.

Your credit score is imperative. If you already have a credit card, the creditor will probably take a gander at your credit score to try and decide whether to decrease your credit limit, or give you a higher interest rate. Those lucky people with the highest scores get the lowest rates.

But don't freak out yet if you have a low credit score; there are ways to improve your credit report. The most important thing is to try to pay your bills on time. Paying late or even worse, allowing a negative account to go to a collection company can have a negative impact on your credit score. It logically follows that the longer you pay your bills on time the better your credit score will be.

Attempt to pay off debt rather than move it around. It's just the most effective way to improve your credit score. Don't close your unused credit cards. Closing is going to close the gap between the amount of credit you are using, and the whole amount available. If you have a lot of credit, and only use a little, its good.

And for the love of everything holy, don't open new accounts. New accounts aren't even useful in credit scoring because they will diminish your average account age. Which leads me to my final point. Longevity. Try to maintain your oldest accounts. Longevity has a lot of clout on credit reports, so the oldest account you have is the most available.

by Mallory Megan

January brought us the new year of 2010. Many of you may have made a resolution to decrease the amount of debt that you owe. It is a good idea to use this year's first credit card bills to assess your debt and choose the best way to pay it off.

The Credit Card Accountability Responsibility and Disclosure Act of 2009 can aid you in accomplishing your resolution. This federal law restricts over the limit fees, puts a curb on marketing to adults younger than 21 and includes major changes in how issuers can impose interest rate increases.

One major change that will happen next month when the CARD Act takes effect is a mandate that credit card statements provide newer, clearer and timelier disclosures of the terms and accounts from before and after the account is closed.

And one specific feature is that statements should include details that caution consumers about the costs of making only the minimum payment. Keep this example in mind:

Someone has a $1,000 credit balance at a 17 percent annual percentage rate and pays only the minimum monthly payback which is $15. It could take more than 17 years to pay off the debt. And the total payback will be $3,082.

And if that person paid $5 more a month, it could take just a little over seven years to pay back the debt at a cost of $1,750.

Additionally, the credit card law requires that statements display the monthly payment that is required to pay off the existing balance in 36 months, and the statement will also show the total cost of payments and interest.

If you are able to make your minimum payment, with an additional 20 percent of that minimum each month, most likely you will pay off your debt in three to five years without outside help. The CARD act is expected to bring about many changes and is considered a landmark law.

Junk mail. No one likes it. Most people will take a glance at the envelope then throw it away. But it's key to give each letter a thorough check. Some credit card issuers are now sending cardholders statements in plain, unmarked white envelopes that look like a solicitation, or junk.

While statements incognito can reduce the chances that your credit card bill will be stolen from your mailbox by an identity thief, analysts say that consumers should be concerned about the statements that are unmarked. If you throw out a credit statement without looking at it, it can lead to large credit troubles.

The reason why credit card issuers have altered the look of the envelopes is because delinquencies at credit card companies are rising more and more every day. Because of this, issuers are outsourcing more of their jobs to call centers and agencies. Third party agencies are prevented from a number of techniques that the original creditors could have done. To avoid potential lawsuits and violation of law, agencies are now sending out statements using plain white envelopes.

Because payment history is accountable for about thirty five percent of your credit score, one missed payment due to the mistake of throwing the white envelope away can be costly.

To keep unmarked bills from ruining your credit score, choose a way to receive statements that is safer then the post office. Go on the internet and track your statements there. Always open all of your mail, even if you feel that it may be junk. Come up with a list of your monthly expenses and all of your accounts. Include due dates for bills in this list.

In a recession it is key that debtors protect their finances and do their best to keep a good credit score. Taking these easy measures could do a world of good.

by Mallory Megan

Even in the hard economy, it looks like consumers are racking up more and more debt and getting ahead of themselves financially. There are numerous reasons why credit cards could hurt you financially, but a debit card could be what is putting you over the limit.

A sound routine is to go to the bank, take out enough money to last you a week and then attempt to live on those funds. It is believed that relying on paper money in the wallet instead of plastic will increase budget discipline and reduce impulse purchases. By relying only on ten, twenty or even fifty dollar bills, you tend to buy only what is necessary as opposed to what you think you want or need.

Debit cards can be beneficial. They can prevent you from going overboard with a large purchase like you can with a credit card. It also keeps track of where and how you spend the money, but a small book for a dollar at the local pharmacy could become your new budget book.

What it comes down to, is that anything that makes it simpler to spend cash means that whoever has it will in fact spend more money. Evidence illustrates that people spend more when using debit cards in place of cash. While they may not go overboard with big purchases, they do go overboard with small purchases. Also, debit card users are more likely to overdraw their bank accounts. A story in the New York Times revealed that banks earn billions in overdraft fees that were sparked by small debit card purchases.

Debit card processing fees are extremely expensive for retailers. Despite the fact that card issuers allege the higher sales from customers make the expense worth it. Many retailers, mom and pop stores in particular, are starting to protest debit card processing fees and asking customers to pay in cash.

60-Second Guide to Getting out of Debt
by JR Rooney

Imaginefor a second being free of debt -- no more sleepless nights overmounting credit card balances, no more ball-and-chain of debt feedingyour anxieties, and no chance of threats from dreaded collectionagencies. You can do it! Here's the scoop -- in one minute flat.

0:60 Resolve to spend less than you make! Make it a habit asfundamental as brushing your teeth. Realize once and for all that ifyou can't pay for it today -- you can't afford it.

0:55 Distinguish between Bad Debt and OK Debt. OK Debt has an interestrate well under 10% -- preferably with some tax advantages to boot. Inthe best case, what you bought with borrowed funds will appreciate invalue. Home mortgages and student loans are examples of OK Debt.Automobile loans are on the border: They often satisfy the low-ratepiece, but automobiles almost never appreciate in value. Bad Debt iseverything else -- from your titanium credit card to the 35% loan fromKarl's Kwik Kash.

0:50 Pick a winner. Out of all your cards, pick the one or two majorcredit cards that feature the lowest annual interest rate. Resolve touse those cards for emergencies only. As for all the other plastic palsin your wallet, remove temptation by taking them out of your wallet.Throw them behind a major appliance, freeze them in a bowl of water, orput them to a shoe box. Do whatever it takes not to use them.

0:41 Gather all the bills from your accounts. Line these up on thekitchen table. Find the minimum monthly payment for each account andthen add these up to get an overall monthly minimum. Make a decision topay this overall minimum PLUS a hefty additional chunk every month --enough to make a solid dent in the outstanding balance of at least oneaccount. If you can't pull this off, you'll have to make a drastic moveto increase your income or lower your expenses. It's harsh, we know,but it's also an inescapable fact.

0:34 Pick the highest interest rate account and: Attack! Next, orderthe latest bills according to annual interest rate charged. Apply the"hefty additional chunk" (beyond the minimum) to the highest rateaccount(s). Repeat this process monthly until the last Bad Debt accountis paid in full.

0:26 Ask for a lower interest rate. Grab a bill from any accountcharging you more than 14% interest. Call the toll-free number on thebill and demand to have your rate reduced -- say, to 11%. Tell themthat you'd really like to stay with them out of customer loyalty(embellish according to your acting skills), but that you have receivedoffers for much-lower-rate cards. Expect to be made very uncomfortable,but stand firm and remember that, to them, you are both a customer anda cash cow. You also stand to save a bundle. Practice makes perfect.

0:18 Be prudent. Be aggressive in paying down the cards, but don't getso ambitious that you risk missing minimum payments on your mortgage,automobile, or any other secured credit account. (Secured means that ifyou miss enough payments, the bank can show up and take away the item.)

0:12 Commiserate with others. You'll find plenty of emotional supportand great ideas by visiting debt relief discussion boards. Help otherscelebrate their debt-free "happy dance."

0:05 Dance, Fool! You're done when the Bad Debt is 100% exorcised andyou can make remaining OK Debt payments with ease, leaving plenty ofbudget room for savings.

JR Rooney writes articles about Credit and collections. JR has 10 years experience working for a bill Collection Agency. Take it from JR you don't want to end up dealing with a Collection Company.

How is this economy treating your small business?
by JR Rooney

You would have to be living under a rock if you don't know that we're in the worst financial crisis in our lifetimes in the USA. If you find yourself worried about your business and what can happen next, you're certainly not alone.

As I write this, the next few days bring great uncertainty about what the government is going to do to try and help bail out the failed banking system in the US. While it's not clear what form the assistance will take, it appears almost certain that the US government will have to do something to fix the mess created in the financial system by rampant greed. What is going to happen? Who knows! What is obvious is that the vast majority of Americans are very unhappy with the situation and quite angry about spending billions of dollars to bail out an industry known for greed.

The fact of the matter is, a bailout is not the end of the troubles for those of us who run small businesses. The United States economy is in deep, deep trouble and this will not be fixed very quickly. All the major news outlets have commentaries about what's happening and what to expect. It seems the consensus is that it's unlikely we're going to experience a level of unemployment seen during the Great Depression. That's the good news. The bad news is that things are ugly and their likely get much worse before they get better. And if that wasn't enough, things are probably not to get better in the near future.

Small business owners are highly unlikely to land the line of credit they need in order to expand their business in the near future. So what can you do? No one can tell you what you need to do in your particular business, but I've always been a huge supporter of the low-cost direct marketing style in my businesses. I suggest you start rethinking all the many ways you can seek out additional revenue at a minimum cost. This means not only getting new customers at that minimum cost, but just as important, you need to try to sell more services to the customers you already have.

The situation is more complicated than simply not being able to obtain credit, but it is also going to be difficult for many business owners to even make it through the next several years. There has already been a big drop in consumer spending in the United States, and getting new customers as well as maintaining the ones you already have is going to get more difficult. That is why this is the time to get yourself back to the basic and most important task which is to get your business well marketed. There is nothing more important for your business in difficult times such as these than your marketing efforts.

Rapid Recovery Solution is a debt collection agency