One in three Americans paying bills late: survey - Americans Being Jailed For Not Paying Their Bills

More than half of adults nationwide — 56 percent — have no budget and one-third don’t pay all of their bills on time, a financial literacy survey shows.

The survey, released Tuesday to recognize Financial Literacy Month, also revealed that 39 percent carry over credit card debt from month to month; two in five are saving less than they were a year ago and 39 percent have no day-to-day savings.

The results show that the painful financial lessons of the recession and high unemployment “are quickly being forgotten,” said Susan C. Keating, president and CEO of the National Foundation for Credit Counseling, which sponsored the survey.

For the first time, the survey looked at how people use pre-paid debit cards. The results revealed that 72 percent use pre-paid debit cards to keep from spending money they don’t have, and 73 percent believe the cards are safer than carrying cash.

Keating said the survey shows that Americans are saving less, spending more and failing to understand basic financial steps required to build a stable future.

http://posttrib.suntimes.com/business/11698828-420/one-in-three-americans-paying-bills-late-survey.html

NPR reports that it’s becoming more common for people to serve jail time as a result of their debt. Many borrowers facing jail time don’t even know they’re being sued by creditors.
Here is how it works. A company will often sell off its debt to a collection agency, generally called a creditor. That creditor files a lawsuit against the debtor requiring a court appearance. A notice to appear in court is supposed to be given to the debtor. If they fail to show up, a warrant is issued for their arrest.
More than a third of all states now allow borrowers who don’t pay their bills to be jailed, even when debtor’s prisons have been explicitly banned by state constitutions. A report by the American Civil Liberties Union found that people were imprisoned even when the cost of doing so exceeded the amount of debt they owed.
The Wall Street Journal reports that since the start of 2010, judges have signed off on more than 5,000 arrest warrants since in nine counties alone.

http://www.opposingviews.com/i/society/crime/americans-being-jailed-not-paying-bills