Bankruptcy is all over the news these days. With the global economic crisis strengthening its grip on stock exchanges and banks across the world, there is little question why large-scale bankruptcies have become common. As news of financial collapse is splashed across the headlines and television screens of America, people are feeling apprehensive about their own financial futures.

People are saving money and tucking it away to prepare for a financial emergency. While this is a good idea, the slower economy might also be a good time to start decreasing your credit card debt.

In times like these, many people feel the need to cut back on luxury items and save money. But why not use the money that is being set aside to catch up on debt?

Part of preparing for tough times is to eliminate as much debt as possible. If you have begun to cut back on entertainment, eating out, or Sunday drives, you might consider applying some of that money to paying off credit cards. If you’ve decreased your spending, you’re probably not using your credit cards as much, so this is the perfect time to erase some of that debt.

Carrying a balance on your credit cards hurts your credit rating. With the global financial system in a tailspin, loans are becoming difficult to obtain even if you have a good credit score. Paying the minimum balance each month is not enough to lower your credit card debt. A large portion of the minimum payment goes to paying the interest, not the principle. By taking a little extra of the money you’re already saving, you can lower your credit card balances and improve your credit score.

Sometimes you run across a website that gives good information on a topic.  If you’re dealing with zombie debt and just want to know what to do if it happens to you, read this article.

Consumers facing problems with debt collection abuse and credit reporting errors have few reliable resources for information.  Most consumer lawyers don’t blog, which is a shame.

Thankfully, there are some excellent resources out there.  They include:

Alabama Consumer Law Blog:  Operated by John Watts and M. Stan Herring, this is a terrific site for Alabama consumers.

Caveat Emptor:  Law, politics, news and information from Sam Glover, consumer lawyer

Consumerist:  Consumer information

Consumer Law & Policy Blog:  Published by a diverse group of lawyers and law professors who practice, teach, or write about consumer law and policy.H osted by Public Citizen’s Consumer Justice Project,

Are you wondering who’s looking at your credit report?

The Fair Credit Reporting Act (FCRA) puts strict guidelines on whom and who cannot look at your credit history. The FCRA protects the consumer’s privacy by defining “permissible purposes”. A permissible purpose is the special circumstance under which a consumer’s credit report may be disclosed.

An organization or individual who wishes to view your credit report must have a viable reason, such as considering you for the extension of credit or hiring you for employment. Lenders and retailers will often purchase a membership to one of the credit reporting agencies so they can easily access thousands of credit reports to check credit histories on potential customers.

Your current employer or a potential employer may be able to check your credit history. Since they are only checking your credit report for an indication of your financial integrity, they will receive a modified credit report that does not contain your account numbers. However, they must obtain your written permission to do a credit check.

Insurance companies check your credit report to check your credit history. This can influence the rate of your insurance premiums. Landlords can also check your credit report. They want to know if you have the ability and integrity to pay your rent.

Lenders of any kind, such as banks, credit unions, car lots, furniture stores, anywhere that you might borrow money, will check your credit report. In some cases, even utility companies and cell phone providers will check your credit history.

Government agencies and child support collection agencies will access your credit report to determine your financial status.

In short, any individual or organization that has a legitimate business need may access your credit report. However, anyone who obtains a copy of your credit report under false or suspicious circumstances and be fined and jailed for up to one year.

If you check your credit report and see inquiries from companies that you have never heard of, it’s time to contact me (or, if you’re outside of New York, a qualified local consumer protection lawyer). Inquiries may lower your credit score, and impermissible inquiries may be the signal of larger problems such as identity theft.

Looking for a job in this economic climate? Don’t forget to check your credit report before you submit that application.

The bad news is that yes, bad credit can keep you from getting your dream job or any job. The good news is that not all employers will bother with a credit check. However, it is becoming increasingly common for a potential employer to check your credit history.

Different types of jobs will use different parts of your credit history. They may check the information on your application or resume, such as addresses and past jobs, against the information on your credit report and question any variances. They may check your payment history to judge whether you will be a responsible employee. If you are applying to an industry that deals with any type of securities, banking or finances, your credit report will carry more weight than a position such as factory worker or construction worker.

If you are planning on sending out job resumes or attending an interview, it might be a good idea to check your credit report. While you won’t receive the same credit report that a potential employer will, it will still give you an indication of any problems you might have.

If an employer is going to use your credit history as a reference for employment, he should first ask you to sign a Fair Credit Reporting Act disclosure and release form. When you are signing the form would be a good time to bring up any indiscretions you might have on your credit report. It is much better to be up front and honest with a prospective employer about your past credit histories as it pertains to the position you are applying for. You don’t have to disclose any private matters in depth, just make the employer briefly aware of what is on your credit report. Then he won’t get any surprises and just maybe your bad credit won’t count against you.

However, the best thing you can do is keep a check on your credit report for inaccuracies and try your best to resolve any credit reporting issues before you have that big job interview.