Posts Tagged: ‘Credit Card’

4 Tech Tools to Help you Get Out and Stay Out of Debt

December 15, 2017 Posted by kingcade

According to the Federal Reserve Bank of New York, household debt has reached almost $13 trillion as of September 30, 2017. If you are hoping to get a handle on your debt in 2018, here are a few tech tools to help you reach your goal.

  1. Make a Payoff Plan: Unbury.Me

Unbury.Me is a free online tool that allows users to create an account, list all of their debt and map out a payment plan to suit their needs. The app allows users to either use the “avalanche” method, attacking the highest interest rate debt first, then moving to the second highest and so on or the “snowball” method, which focuses on the lowest balance first.

  1. Attack Debt Subconsciously: Qoins

Qoins rounds each of your purchases to the nearest dollar, then applying that cash to your student loan or credit card debt. Nearly $1 million in spare change has been saved since the app launched in January 2017. To sign up, you log in and link your financial account to begin saving.

  1. Meet Payoff Goals Via Savings Goals: Digit

A great strategy for paying off debt is being able to do so without having to think about it. Digit is an app that analyzes your spending habits to gauge the right amount of money to auto-save for your goals. It only transfers an amount it thinks you won’t notice and the cash is moved from your checking account to an in-app savings account. You can also set a goal amount for a certain debt and once you have saved that amount, it will notify and congratulate you.

  1. Avoid Future Debt by Rethinking Credit: Debitize

If your goal is to pay off credit card debt, it is a good idea to put your plastic in a drawer and lock away the key until you have reached your goal. If you have paid off your credit card debt or you are hoping to avoid accruing more debt, Debitize is an app that will help you avoid more credit card debt. The app enables users to think of credit more concretely by automatically withdrawing the funds to cover any purchase you make immediately – then paying off the balance on your behalf within a day or two. Users end up with a credit card balance of zero each month.

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If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Woman Wins $83 Million in Lawsuit Against Debt Collector

November 8, 2016 Posted by kingcade

A Kansas City woman won $83 million in a lawsuit she filed against a debt collector for illegal debt collection practices for a $1,000 credit card bill. The Missouri jury found the collection agency, Portfolio Recovery Associates LLC, guilty of “malicious prosecution.”

The agency reportedly violated the Fair Debt Collection Practices Act, for which it will pay $250,000 in damages. Maria Guadalupe Mejia was also awarded $82,990,000 for malicious prosecution over a credit card debt that did not belong to her.

PRA Group Inc., which owns Portfolio Recovery Associates, sent a statement about the verdict to Credit.com. “This outlandish verdict defies all common sense. We hope and expect the judge will set aside this inappropriate award, and we plan to file motions to make that request formally in the near term. Any fair reading of the facts of this case makes plain that a verdict of this size is not justice by any means, and cannot stand,” spokesman Michael McKeon wrote.

In 2013 Portfolio Recovery sued Mejia over credit card debt that belonged to a man in Kansas City, Kansas, with a similar name. The agency, which is one of the nation’s largest debt buyers, attempted to collect on the debt for over a year after Mejia first received notice of the lawsuit.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Life After Bankruptcy

October 27, 2016 Posted by kingcade

You have filed for bankruptcy and are looking forward to a fresh start. However, your credit rating has taken a substantial hit. The bankruptcy is likely to stay on your credit report for ten years, therefore, for a period of time it may be difficult to get a loan or credit card. However, you can take these steps after your debts are discharged to take advantage of your fresh start.

Start an Emergency Fund

If you filed a Chapter 7 bankruptcy, you have likely had most of your debts discharged. This means that your salary is yours to spend and you will most likely be living on cash rather than credit. It is imperative that you build an emergency fund with your extra cash.

Rebuilding your Credit

In order to restore your financial life, you have to rebuild your credit. You can begin establishing good credit immediately after your debts have been discharged. However, it may take some time to build up your credit score. If you own your home, paying your mortgage on time is a good place to start. Mortgage lenders report to the credit bureaus.

Adopt a Positive Attitude

Experts agree that attitude and persistence make a huge difference in your life after bankruptcy. For example, if you start a savings account, carry no debts and have an emergency fund, you are telling yourself that you can take control of your finances.

First New Credit Card

Once you have established good spending and financial habits, you can apply for a secured card as soon as six months after your debts are discharged. Secured cards allow you to put money in an account and the credit card company will give you a credit limit of that same amount. You pay the bill as you normally would and then get the deposit back when you close the account or switch to an unsecured version.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Credit Card Debt Approaches Post Recession Levels

October 26, 2016 Posted by kingcade

 According to the Household Debt and Credit report released by the Federal Reserve Bank, total household debt balances grew slowly throughout the second quarter of this year. As of June 30, 2016, total household debt had reached $12.29 trillion, up $35 billion from the first quarter of 2016.

At the same time, the nation’s cumulative credit card balance reached $729 billion, which is up $17 billion from the first quarter. While still below its peak of $866 billion in the fourth quarter of 2008, economists say that the numbers are on track to reach pre-recession levels of credit card debt around the second quarter of 2017. However, economists also say that conditions might change and previous numbers do not necessarily mean we will enter into another recession.

While credit card debt is up, credit card usage is actually down substantially from previous highs. Credit card usage peaked in 2008 at 68 percent of borrowers, then swiftly declined to 59 percent during the recession due to banks reactively and proactively closing accounts.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

7 Ways to Build Credit without a Credit Card

February 5, 2014 Posted by kingcade

Whether you are buying a home, car or other big purchase item, the first thing a lender will look at is your credit score. Before applying for a major loan, it is important you know where you stand with your credit score. Many people believe that the only way to establish and build credit is by opening and using a credit card.

Here are a few alternatives to help you put the plastic away and establish good credit.

1.) Ask companies to report on your behalf. If you have recurring bills that you pay on a monthly basis (i.e.- rent, utilities, cell phone, etc.) request that these providers report your payment activity to the three major credit bureaus- TransUnion, Experian and Equifax. Of course before you do that, make sure you have a responsible/on-time payment history. Payment history accounts for 35 percent of your credit score and can have significant impact if there is not a lot of other data on your credit report.

2.) Become an authorized user on another credit card. Do this ONLY if the cardholder has a strong credit background. Signing on as an authorized user will enable you to piggy back off their stellar credit.

3.) Open an account with a credit union and take out a small personal loan. Credit unions typically offer financing options at lower interest rates than traditional banks. To give your credit score a boost, apply for a small personal loan. If denied, inquire about a secured loan-where a certificate of deposit or savings account- will be used as collateral. This request will likely be approved because the risk in minimal on the lender’s end.

4.) Apply for an installment loan. These loans paid in a timely manner over an extended period of time build your credit score because they show creditors that you are a responsible borrower.

5.) Federal student loans. A credit check is not required to obtain a federal student loan. Since it is an installment loan, it can help boost your credit score. Aim for one that is subsidized and deposit the money into a safe interest-bearing account so the funds will be available when repayment starts.

6.) Peer-to-peer loans. Companies like Prosper and Lending Club offer peer-to-peer loans, where borrowers are connected with individual investors. The interest rates are low and these lenders report to the major credit bureaus.

7.) Try an alternative credit score. Check out Payment Reporting Builds Credit (PRBC), which helps consumers create a nontraditional credit score, an alternative to the big three credit bureaus.

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If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.