News You Need to Know: How Old Debt Is Coming Back to Haunt Consumers

readingRemember the days when newspapers were the main portal to local and world info? Me too – and my job as a writer online doesn’t stop me from still relishing every Sunday morning when that paper lands on my doorstep.

Even still, there’s no denying the fact that the internet is the main place to read the news nowadays. Problem is, there’s just so much of it! We want to help – when it comes to financial news, that is. Every Wednesday we’re going to start disseminating the financial news you need to know in one easy to digest format.

So tune in every Wednesday afternoon to find out about important legal changes that could affect you, updates that might make your life easier, and trends that could endanger your finances (and how to fight back). Are you ready? Here goes:

Old Foreclosure Debt Coming Back to Haunt Former Homeowners – CNN Money
For many, foreclosures symbolize an ending. In the worst case, it’s a loss of a home. In the best case, it’s a chance to start fresh financially. Until now, that is.

Debt collectors are now going back to sue former home owners for the amount lost in the foreclosure. CNN Money talks more about this frightening trend.

Debts Canceled by Bankruptcy Still Mar Consumer Credit Scores – The New York Times
Speaking of financial actions that should signify an ending, consumers are now being haunted by accounts that should have been voided in bankruptcy proceedings. Some major banks are trying to charge consumers later for these discharged accounts and continue reporting them to the credit reporting bureaus as past due.

Consumers are now paying to have these accounts removed from their credit reports – but should not have to do so. The New York Times discusses this epidemic further.

Financial Pressure Eases on Students, Studies Say – The New York Times
On a more positive note, the trend of ever-increasing student loan debt may be nearing a point at which new and incoming students can get a break on the high cost of tuition. According to The New York Times, schools are coming under pressure to stop increasing costs at the level they have been in past years. If this trend continues, this could mean a more manageable student loan debt load for many.

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U.S. Students Need More Help Dealing with Loan Companies – Reuters
On the other side of the coin, current students and college graduates aren’t getting the help they need in managing their loans – and that could leave them prey to predatory lending tactics.

Reuters explains how the lack of education and transparency in student lending is affecting student borrowers and what they can do to protect their finances.

And for this week’s interesting perspective:

Viewing Others Through a Prism of Money – The New York Times
Carl Richards challenges us to face the way we consciously and subconsciously make judgement calls on what appears to be others’ economic status. Also, why we’d all do a lot better to think twice before judging a book by its cover!

Image Credit: Svein Halvor Halvorsen

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