레이블이 Charged Off Debt Buyers인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Charged Off Debt Buyers인 게시물을 표시합니다. 모든 게시물 표시

2013년 12월 4일 수요일

About 'bad debt buyers'|8 Things We Learned From FTC Report On Debt-Buyers







About 'bad debt buyers'|8 Things We Learned From FTC Report On Debt-Buyers








               In               recent               weeks               credit               rating               agencies               Moody's               and               Standard               &               Poor's               have               cautioned               that               the               U.S.

AAA               credit               rating               may               be               downgraded               unless               a               deficit-reduction               plan               is               put               in               place               in               the               range               of               $4               trillion               in               cuts.

Today,               S&P               have               indicated               a               50               percent               chance               that               the               U.S.

will               be               downgraded               to               a               AA               rating,               perhaps               as               soon               as               this               August.
               To               small               businesses               in               the               United               States               this               is               bad               news               indeed.

With               the               United               States               government               currently               paying               $250               billion               in               interest               a               year,               a               downgrade               in               its               credit               rating               will               cause               interest               on               U.S.

debt               to               rise               to               as               much               as               a               trillion               dollars               a               year.

The               U.S.

government               will               have               to               shrink               and               redistribute               revenues,               or               more               likely               tap               producers               for               higher               taxes.
               For               small               businesses,               higher               taxes               mean               less               money               to               reinvest               in               the               business.

The               second,               hidden               tax               imposed               through               quantitative               easing               will               effectively               inflate               the               money               supply               to               provide               government               with               the               cash               it               needs.

This               will               lead               to               the               erosion               of               savings               and               an               overall               price               increase               that               will               hit               small               businesses               in               the               form               of               higher               rents,               rising               production               and               transport               costs,               and               higher               operation               and               employee               salaries,               which               in               turn               will               force               small               businesses               to               reduce               inventory               and               raise               prices.
               As               the               economy               shrinks               under               the               burden               of               inflation               and               increased               taxation,               people               will               have               less               money               to               spend,               and               small               businesses,               which               have               a               small               buffer               for               economic               downturns,               will               be               hit               hardest               with               higher               costs               and               lower               revenues.
               At               this               point,               credit               may               help               small               businesses               to               stay               afloat;               however,               if               the               U.S.

credit               rating               is               downgraded               the               yield               on               its               bonds               will               have               to               rise               to               attract               buyers               of               U.S.

Debt.

This,               in               turn,               will               affect               the               U.S.

prime               rate,               which               the               Federal               Reserve               bases               on               30-year               bonds.

When               the               prime               rate               will               go               up,               so               will               all               variable               rates               on               U.S.

credit               cards               and               variable               mortgages.

For               small               businesses               this               means               higher               interest               rates               on               business               loans.
               Government               spending               today               is               at               levels               equal               to               WWII.

This               has               put               the               country               on               an               unsustainable               path,               with               the               government               set               to               double               its               size               in               five               years,               or               triple               it               in               ten               if               the               nation               follows               the               President's               budget.

Several               plans               are               currently               being               discussed               to               deal               with               the               U.S.

debt               crisis.
               The               McConnell               plan               proposes               to               bypass               the               Constitution               and               give               the               Executive               Branch               (the               President)               the               power               to               raise               the               debt               limit               without               reference               to               Congress,               in               which               case               the               U.S.

credit               rating               is               sure               to               be               downgraded,               making               credit               less               available               to               small               businesses.
               The               Gang               of               Six               plan               proposes               to               cut               spending               by               $3.7               Trillion               over               10               years               (for               which               no               specifics               are               available),               but               to               increase               taxes               by               $1.2               Trillion,               which               is               sure               to               weaken               small               businesses               who               rely               on               money               staying               in               the               hands               of               individuals               not               bureaucrats.
               Finally,               the               only               plan               that               is               already               a               bill               (which               has               passed               in               the               House)               is               Cut,               Cap               and               Balance.

The               bill               proposes               to               cut               $111               Billion               in               government               spending               in               the               first               year               alone               and               cut               $6               Trillion               over               10               years.

Even               more               importantly               for               small               businesses,               the               bill               will               cap               government               spending               as               a               percentage               of               the               economy.

Finally,               the               bill               includes               a               balance               budget               amendment               to               the               constitution,               which               will               include               a               spending               limitation               and               a               super-majority               requirement               for               raising               taxes,               both               of               which               will               introduce               a               climate               of               certainty               into               the               economy               and               help               small               businesses               survive               the               financial               turbulence               of               today               and               plan               for               a               better               future.
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