Recession Briefing: Job Doesn’t Equal Happy

What you need to know today to survive and thrive in the recession.

Hit by the recession, many families are moving their children from private to public schools. The shift is already bringing subtle changes to the culture of many public schools as some families seek the personal attention they received from private schools. (USA Today)

As the sour economy leaves people less and less able to pay their debts, the abuses by debt collectors have become so flagrant and numerous that authorities have moved to shut down several agencies where the most heartless and bullying telephone calls originated. At least 20 people have been sued or arrested on criminal charges. (Associated Press)…

Recession Teaches Americans How to Use Credit (Finally)

Americans are pretty dumb about money. If you’re tempted to argue with that statement, just remember that we’re in a financial crisis of our own making.

The good news is, the downturn seems to be making us smarter—at least when it comes to credit cards. People are actually becoming more responsible, taking on less credit card debt and paying off their balances promptly. How do we know? Because it’s hurting the credit card companies! According to the Washington Post, Capital One Financial, the company that issues the Orbitz and MTV Visas, among other cards, is losing money in part because it’s not making as much from fees.

“Many have witnessed the financial turmoil and threats of layoffs and taken a more disciplined view of their finances, making sure to submit payments on time and adhere to limits,” the Post says…

Recession Briefing 7.28

What you need to know today to survive and thrive in the recession.

As he deals with the economic crisis and the woes of other homeowners, Treasury Secretary Tim Geithner is also having trouble selling his own house. (ABC News)

Many Americans are being forced by economic necessity to open up their homes and share living space. (Boston Globe)

Many middle-class people are asking themselves unfamiliar questions about welfare and food stamps for the first time, after being abruptly laid off, losing their health insurance and struggling to pay their bills. (New York Times/City Room)

Recession Briefing 7.20

What you need to know today to survive and thrive in the recession.

As they ride out the economic recession, some American rodeos are bucking the hard times while others are sitting on the fence. (Associated Press)

540,000 Americans will exhaust their unemployment insurance benefits by the end of September, and a whopping 1.5 million will run out of coverage by the end of the year. (National Employment Law Project)

Federalism, often described as one of the great strengths of the American system, has become a serious impediment to reversing the downturn. (New Yorker)

Bad Debt Settlement Companies

It can’t be said enough that debt settlement companies are a poor option if you’re strapped with overwhelming credit card debt. From the New York Times Saturday:

When you sign up, many firms require you to pay a sizable fee upfront. Or they may levy initial set-up and monthly fees, and charge a percentage of the amount they saved you. They typically advise you to stop paying your debts and tell you to put aside money each month in a separate account over a period of two or three years. That sum will eventually be used to negotiate a settlement, usually about 60 percent of what you owe. In the meantime, though, credit card companies continue to charge interest and late fees. The creditor may sue. And the phone will probably continue to ring incessantly. The companies can offer no guarantees — except that your credit score will drop.

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