Low Interest Credit Cards

If you’ve ever defaulted on a loan or credit card, you have likely had creditors knocking on your door. If you fail to pay what you owe, many creditors hire private debt collection agencies to chase after you and try to recoup some of that cash, even if it’s just pennies on the dollar. But what happens if you fail to pay your city’s water or trash bill?

The practice of hiring debt collectors was primarily reserved for private companies, but things have changed in this shaky economic climate. Several city governments are now relying on private debt collectors to gather up funds from residents for unpaid utility bills, according to CNN Money.

Pittston, a small town in Pennsylvania with a population of just over 8,000, is one example. Residents currently owe the city about $250,000 in garbage fees. Rather than letting trash pile up around town, the city cleaned up anyway. But someone has to pay for the trucks, the fuel and the workers’ salaries. According to CNN Money, the city government has contracted with an outside debt collection agency to help return some of that money back to the city. Greg Gulick, a spokesman for the city, is quoted as saying, “They are going to go after them with whatever means they can.”

CNN has found that more than ever, institutions such as school boards, county courts, libraries and prison systems are also using outside debt collectors. In rough economic times, people have a harder time paying their bills, but these organizations still need funds to pay their workers and keep their own utilities running. Before you skip out on a utility bill, remember that the city can use the same type of debt collectors that your credit card companies employ. To say they are persistent is an understatement (check out Dan’s post on what it’s like being their target even when you don’t actually owe them money).

If you want even more credit card news, tips and advice, check out the round-up below of 10 of my favorite personal finance blog posts from the past week. Enjoy!
 
1.    Get Rich Slowly reveals a new Web site that helps consumers find the perfect financial adviser for their individual needs.
2.    While it sounds a bit counterintuitive, Rich Credit Debt Loan explains how you can actually use debt to improve your credit score and secure your future.
3.    When you’re in a financial pickle, it can be hard to decide whether you should save for an emergency fund, pay off credit card debt or invest. Debt Free Adventure advises a reader who is facing job loss and unsure of which financial strategy to take.
4.    Ask Mr. Credit Card reveals a tip that many readers may not be aware of: You can fund a new checking account with a credit card.
5.    WalletPop discusses how you can get burned by debit cards if you aren’t careful, and lists out some of the dos and don’ts for debit cards.
6.    A guest post at Consumerism Commentary reminds readers of the important role your credit score plays when it comes to getting approved for a mortgage or rental contract.
7.    Do you have a shopping addiction? Have you always wanted to be a television star? Living Almost Large informs readers of a casting call for a new television show that will offer help for those experiencing financial turmoil.
8.    Green Panda Treehouse explains why it is important to not have too many credit cards and discusses what the ideal number should be.
9.    Christian PF lists five reasons why you may not be out of debt yet. According to the post, one of the most overlooked aspects of debt is that it’s not a one-time shot — you have to correct long-term behavior.
10.    Master Your Card offers insight about the major pros and cons involved in paying your taxes with your credit card.

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