Article Abstract:
Personal bankruptcies in the US have been growing at an alarming rate in recent years. Personal bankruptcy filings went beyond the one million mark in 1996, resulting in credit losses of around $7.5 billion for the bankcard industry. A comprehensive study of the credit bureau profiles of two million consumers identified four types of consumers. 'Goods' are good consumers whose worst credit payment record was 30-59 days late during the one-year study period. 'Indeterminates' are those who were 60-89 days late, 'Non-Bankrupt Bads' are consumers who were 90 days late, while 'Bankrupts' are those who filed for bankruptcy during the study period. The findings indicate that the Goods and potential Bankrupts have many similarities, including the number of satisfactory trades, active tradelines and new bank revolving trades. Suggestions on how creditors can identify Bankrupts and protect themselves from the rising bankruptcy trend are offered.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The latest development in the Canadian credit industry is the increasing popularity of allowing business owners to hold secured credit on the assets of their own business. Under this arrangement, business owners with money to invest in their own firms hold at least a portion of it through secured debt. A major contributor to this practice is the rising number of bankruptcies in the marketplace. In another development, politician and broadcaster M. Yves Michaud has succeeded in his campaign to present his proposals to shareholders as part of the proxy circulars connected to the yearly meetings of chartered banks in Canada. His recommendations call for a cap on bank executives' salaries and a limit on a director's service term. Finally, a new banking legislation in Ottawa proposed by a newly created task force on financial services reform is on hold.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Changes in the economy and in the business environment are compelling Americans to take greater responsibility for managing their personal finances. Unfortunately, many are unprepared to deal with the sheer number of financial options that are currently facing them. The credit industry has an important role to play in educating consumers about the basics of personal finance. Aside from helping the very people that they seek to serve, credit companies can benefit from consumer education through higher collection rates, improved efficiency and enhanced public image. In promoting financial education among consumers, credit issuers should start within their own organizations, make a long-term commitment to the program, and focus on teaching consumers about establishing good credit and avoiding credit card fraud.
User Contributions:
Comment about this article or add new information about this topic: