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Question
QUESTION: I wasn't sure where else to ask a question related to credit problems, but I was wondering what groups of people are most likely to have problems paying back their credit card?
ANSWER: James,
I would say anyone who is feeling the effects of the recession, the loss of a job, someone going through a divorce or a death in the family. I hope this helps!
Michelle
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QUESTION: I didn't mean so much circumstancially, I meant more like age groups and ethnicities? I think we are all feeling the recession these days.
ANSWER: Exactly right. Everyone is feeling the affects except maybe for the very wealthy. Students that are graduating high school and college are having the worst times finding jobs and with American companies outsourcing jobs overseas that makes it even harder for any American to get a job, including minorities. I don't think there is a specific age group or ethnic group that is suffering with this, I think every American is having a very hard time.
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QUESTION: Ok, but I'm not refering to the job market. I'm talking about responsible spending with credit cards.
The job market directly affects how credit cards are used and how they are paid. In my opinion, the only responsible spending with credit cards is when you use a card to purchase something and pay off the entire balance each month. The average American family carries approximately $11,000 in credit card debt, so this is not responsible spending. Then with the economy a mess and the credit crisis raging, many people are using credit cards for things such as food and gas, and are not able to pay off the full amount each month but they may feel they have no other options since they are out of work, working part time or on unemployment benefits.
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Answers by Expert:
Michelle Dunn
Expertise
As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.
Experience
I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com
Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.
Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.
Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.
Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.
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