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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsEconomic Shock Wave: 1 in 7 Americans Pursued by Debt Collectors
I went through the Federal Reserves Quarterly Release on Household Debt and Credit released today, and there were two notable trends. One is that the amount of consumer debt is declining, but that delinquency rates are stabilizing above what they were before the crisis. And the second is in this graph below, which is that the number of people subject to third party collections has doubled since 2000, from a little less than 7% to a little over 14% of consumers. Ten years ago, one in fourteen American consumers were pursued by debt collectors. Today its one in seven.
The experience of debt collection can be chilling, as this 2007 ABC News report suggests.
Consumers around the country have taped threatening phone calls from collectors who have called in the middle of the night, used abusive language and have threatened to have people fired from work or thrown in jail. All of these tactics are illegal under federal law.
There are now thousands of people legally jailed because they arent paying their bills, ie. debtors prisons have returned. Occasionally elites let it slip that this is not an accident, but is their goal former Comptroller General David Walker has wistfully pined for debtors prisons overtly (on CNBC, no less).
http://www.alternet.org/economy/154329/economic_shock_wave%3A_1_in_7_americans_pursued_by_debt_collectors/
RebelOne
(30,947 posts)I was afraid to answer my phone at home or at work. Finally, I declared a Chapter 13 bankruptcy. I couldn't file a Chapter 7 because my income exceeded my expenses. But it got the bill collectors off my back. It took me 3 years to finally pay everybody off. And now I have vowed to never have another credit card. Since I only have the normal expenses -- rent, utilities, car and home insurance, cable, Internet and phone, I do not buy anything now unless I can pay cash. I am living on a fixed income since I retired in 2010, so I can't spend more than I make.
PA Democrat
(13,225 posts)HockeyMom
(14,337 posts)Athough she had insurance, on her $10/hour salary it wasn't enough to pay her share. Apart from what it did to her credit, she had collectors threatening her, and ME, with the "consequences" of not paying. Do I pay the rent, eat, or pay them? That is what happened to her. It took about 15 years for her to pay down her debt on the salary she made.
oldtime dfl_er
(6,931 posts)if you don't mind being a total asshat to people who can't pay.
w8liftinglady
(23,278 posts)PA Democrat
(13,225 posts)People recovering from serious illness or injuries should not be further stressed by bill collectors.
Zalatix
(8,994 posts)They'll need another 1 in 7 just to watch that many people. And there won't be a big enough tax base to support that.
kestrel91316
(51,666 posts)they want debtors to be enslaved. Literally. Because it's in Leviticus.
Forced labor is their goal, for the benefit of the 1%.
Zalatix
(8,994 posts)That's at least 40 million people you have to put behind bars. No military in the world outside of China has ever had the firepower to kill 40 million people in the event of a revolution. You jail that many people and there will be a revolution; and it will mean more than 40 million will rebel.
The logistics alone would crush the US military; especially since their families will also become targets, and the enemy is on their turf, along with their armories, bases, and tons of tanks, all screaming "steal me". It won't go like Syria.
The 1% are hoping the debtors will go quietly and that most won't fight back... that ain't gonna be the case. You can't enslave 1/7th of your populace in this era...
lovuian
(19,362 posts)No bills
Wake up America