Six of the 10 cities where wages have fallen the fastest this year are in New York.  Average wages fell dramatically in Rochester, Syracuse, Albany, New York, Poughkeepsie and Buffalo - and the decline has been devastating on New York State’s finances, according to a study released last week from the Brookings Institution.

It is unusual, according to the Brookings study, even in the depths of a recession, for wages to fall.  Usually, employers prefer to cut jobs than to cut salaries.  But in New York City, wages fell 1.5% in the first quarter of 2009.  Upstate New York suffered even larger declines in wages.  Rochester wages declined 2.3%, and in Syracuse wages went down 2.2%.

These decreases in wages, combined with large layoffs is having a devastating impact on New York’s tax revenues.  In May, personal income tax revenues were 44% lower than in 2008 according to State Comptroller Thomas P. DiNapoli’s office. 

You don’t have to put up with harassing phone calls from bill collectors.  In 2008 alone, over 78,000 consumers filed complaints with the Federal Trade Commission.

The Fair Debt Collection Practices Act (”FDCPA”) sets restrictions on how creditors can attempt to collect debts.  The Federal Trade Commission enforces the FDCPA, and has stated that debt collectors cannot:      A full list of prohibited conduct and other useful information can be found on the Federal Trade Commission’s website at:

·         Call at inconvenient times, for example, prior to 8 a.m. or after 9 p.m.

·         Use threats of violence or harm

·         Publish a list of consumers who refuse to pay their debts

·         Use obscene or profane language, or repeatedly use the telephone to annoy

·         Use any false or misleading statements, such as imply that they are attorneys or government representatives; imply that you committed a crime; or say you will be arrested for non-payment of a debt

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

You can sue offending creditors in State or Federal court and get statutory damages of $1000 plus any specific damages you incurred as a result of their inappropriate conduct.  Even if you don’t file a lawsuit, you can send the debt collector a letter stating that you are invoking the protection of the FDCPA and that you wish to be contacted by mail only.

The FDCPA is not necessarily the only law that protects the consumer from debt collector harassment.  Many states have their own version of the FDCPA.  Contact your local State Attorney General’s Office to find out if your State has its own version of the FDCPA.

This online article provides an interesting 7-step “how to” handle the emotional implications of debt:

1. Acknowledge that you are in debt and in over your head.
2. Forgive yourself and focus on repaying.
3. Understand how you got here so that you do not return in the future.
4. Make a plan to break the overspending habit.
5. Do not make the problem worse by waiting to take action because of procrastination or guilt.
6. Share your problem with your spouse or a close friend.
7. Get professional counseling, if needed.

This list provides a great starting point.  It can also be very helpful to discuss your situation with an experienced consumer attorney for two reasons.  First, many people find the process of discussing their situation with a consumer attorney often helps provide emotional relief.  Second, a consumer attorney is trained in issues relating to debt, credit, and finance and can often provide you with ideas and avenues you may not have considered on your own.

(Source of list:  eHow Personal Finance Editor)

A recent article in the Summer 2009 USAA magazine (published for its members’ benefit) by Lisa Holton provided sound advice on “Where To Get Money Now” — how to manage cash shortages in today’s economy.  Ms. Holton is the former Business Editor for the Chicago Sun-Times and offers wise advice to the USAA readers–to stay away from the flashy, quick fix to financial troubles  while categorizing the options into easily understandable ”danger” categories: Read the rest

Pennsylvania initiated a new program to assist Pennsylvanians facing financial difficulties (i.e. credit, finance, and bankruptcy) called “Get Help Now PA!“  The program provides free assistance and referrals on issues related to credit, finance, and bankruptcy by visiting a help desks staffed by volunteer lawyers and financial professionals.

Beginning on July 7, 2009 through September 11, 2009, volunteer professionals will be available on Tuesdays and Thursdays from 1 P.M. to 6 P.M. at designated locations.  As of the date of this post, the help desk locations are as follows: Read the rest