Has Your Credit Card Company Raised Your Interest Rate?

Or lowered your credit limit? You're not alone...as this news piece "Keep Your Credit Clean" for which I was interviewed points out.


Watch the video here.

Can You Help a Hungry Senior?

For many years when I lived in Washington DC I did grocery shopping for an elderly woman who was living on her own in a small rent-controlled apartment. Edna and I became friends and she often made a meal for me on the Friday nights when I would come by with her weekly shopping.

Edna is no longer around, and I wonder what things would be like for her now, with the price of groceries, medicine, etc.

Last week I received this email from my good friend and colleague Mary Reed, and felt compelled to share it:

I watched a heartbreaking segment on the Nightly News Hour (PBS) last night. I was in tears midway through. It was about the financial plight of a growing number of retirees -- older people who are living on fixed incomes and are trying to absorb (with little success) the rising costs of food, utilities, prescription drugs, etc.

A high percentage of them are ending up in bankruptcy and even those who avoid having to take that step are skipping meals and doing without other essentials in order to cope. The show interviewed one woman whose recently deceased husband had developed dementia and in order to pay the bills, they had gotten 6 new credit cards and accessed cash from each one and then were unable to keep up with the credit card payments. So last year, the same year that she lost her spouse, she filed for bankruptcy.

The show also talked about the fact that Meals on Wheels, which is an essential lifeline for so many seniors -- the only real meal some of them eat all day -- is struggling because of the cost of gas. Volunteers can no longer afford to deliver meals in some areas and the organization is having a very hard time recruiting new volunteers. Meanwhile, the list of seniors who need meals delivered is growing.

It's a crime that we treat our seniors this way. I think we all have a responsibility to help them. I am going to figure out what I can do on my end. How awful it must be to be alone and forgotten, hungry, worried and struggling to make ends meet. So much for the "golden years"!!! If there is an older person in your neighborhood, go out of your way to get to know them. Maybe you can bring them a nourishing meal each week (casserole, lasagna, soup, etc.), take them to the grocery store or pharmacy, whatever. Or, volunteer with your local Meals on Wheels. Just an hour or two out of your week could make a huge difference in their lives. I am stepping off my soapbox now.

But I'll confess, I wasn't sure what I can do. My travel schedule now is crazy, and with a full-time job and a second job as a Mom, I am not sure what I can fit in. Then I received another email from Mary's friend Aletha:

I'm a driver for Meals-on-wheels and I'd just like to put in a good word for how simple it is to be a driver. My route takes me exactly a half hour-45 minutes to complete, from the time I pick up the meals, deliver, and back to my doorstep. The route is just under 7 miles total, one day a week, and with 24 mpg my car gets, it doesn't even cost me $5. There are 6 people on my regular route and i just knock, hand them the meal, a brief hello, and I'm on my way again.

I do think that more people would take part in this if they realized how simple, cheap and fast the whole process is. And it means so much to the people receiving the meals. There's probably no other way to do so much with such a small time investment. (And you get to feel good about yourself for free too!) I have a friend who works at a busy real estate firm and everyone is very accommodating to him to do his route. I'm self employed so my schedule is a bit more flexible, but this is still such an easy thing to do.

Please go to www.mealsonwheelsandmore.org. Just think for a moment what it's like to be unable to drive or cook for yourself, due to age, illness or injury, and someone shows up at your door every day and hands you a hot lunch. It's a real lifesaver for some. It's so easy to make such a big difference in someone's life. Feel free to pass this on.

Aletha's email got me thinking that perhaps I can find some way to help. I am going to check into it and see.

Will you?

Debt Collection Question: 19-Year Old Gym Membership?

The ink is barely dry on our new book, Stop Debt Collectors: How to Protect Your Rights and Resolve Your Debts (written with Mary Reed and consumer law attorney John Ventura) and already we are being swamped with questions about how to handle debt collectors.

I'll be appearing again on CNN's Issue #1 on Tuesday August 19th and won't be surprised if the topic of dealing with debt collectors comes up again.

In the meantime, here's one of the questions we've received:

Q: I recently recieved a call from a collection agency about an unpaid gym membership from 19 years ago, saying that in order to keep my excellent credit I would need to pay this debt. I have heard that paying a debt from such along time ago could actually hurt your credit. Is this true? I didn't think that it was an issue any longer I haven't heard anything about it in years. He did mention something about 2007 but it was actually from 1999. What would be your suggestion?

A: This sounds like a "zombie debt." You know, those debts that seem to rise out of the grave?

First, the only way this debt can now affect your credit is if they take you to court and win a judgment. Collection accounts can only be reported for seven and a half years from the original date of delinquency regardless of whether you paid the debt or whether it was sold to a new collection agency. And any statements to the effect that it will be reported if you don't pay, or that it can be reported as a new debt, etc. are likely illegal violations of the Fair Debt Collection Practices Act. Monitor your credit reports, and if the collection account shows up, talk with a consumer law attorney.

In every state, the statute of limitations has expired on a 19 year old debt. (Though I am confused by your reference to 1999 -- is that when you fell behind or when you last made payments? If so, the statue of limitations may begin then.) If the debt is truly 19 years old (meaning you haven't made any payments on it since then) you can simply send a certified letter telling the collection agency stating the debt is too old, and ask them to stop contacting you.

This is the reason that we wrote Stop Debt Collectors -- to help people understand their rights when they are contacted by debt collectors. The debt collection industry generates more complaints to the FTC than any other industry. Our book is not about wiggling out of debts you owe, but about helping you find a way to resolve your debts so you can move forward financially.

We hope it helps!

PS: I am not an attorney, and although my co-author John Ventura is, this post is not meant to be taken as legal advice. It is educational only. For your specific questions, contact a consumer law attorney.