Bankruptcy Law Archives - Page 20 of 128 - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Credit Cards Are a Way of Life for Most Americans

Posted on February 28, 2019by Admin

For many Americans, credit card debt has become a way of life. According to CreditCards.com, more than 39 million Americans have carried some form of credit card debt for at least the last two years. While using a credit card responsibly can help establish credit, it can become problematic when the debt accumulates.

Credit card companies camp out at universities, promoting their cards to students at colleges and offering free gifts for those who sign up that day. The problem is, many of these students have no idea how to pay off debt and see these cards as a way to buy products without any consequence. Before they know it, these cardholders are carrying a balance they have no way of paying. According to the survey from CreditCards.com, eight million of those surveyed say they do not remember a time when they were not in debt.

The CreditCards.com survey was conducted by YouGov, who surveyed over 2,500 adults. Of those surveyed, 1,780 were credit cardholders and 1,040 of them carry debt on these cards. These cardholders are not charging unnecessary expenses, however. In fact, most of the individuals surveyed said that they used their credit cards to pay for daily spending on necessary expenses, such as groceries or utilities, or on emergency expenses, including medical bills and car repairs.

The survey also reported that the millennial generation was the group that was the most concerned about credit card debt. Due to their high level of student loan debt, many of these younger consumers are not able to cover their daily living expenses on top of their student loan payments.

While the consumers surveyed who were in older generations who use credit cards to pay off medical expenses, millennials say they have no choice but to resort to credit cards to pay for food and living expenses. When the bill arrives, they are not able to pay off the balance in full.

The key to handling credit cards successfully is to not let the balance get out of hand. If possible, pay the balance down monthly after using the card for required expenses. Since the average interest rate is at 17.55 percent, carrying a balance from month to month can make it nearly impossible to pay down the debt. Minimum monthly payments will only allow the cardholder to pay off any interest accrued during that monthly billing cycle.

If you are struggling to pay off credit card debt, certain tips can be helpful in dealing with the debt. One tip is to not fall victim to companies promising rewards for spending on their cards. If you are paying the balance off in full every month, the rewards offered can be beneficial, but if you are carrying a balance and still using the card to earn rewards on top of the balance owed, you are only making the situation worse. If your credit card has a high interest rate, consider a balance transfer to a new card with a lower interest rate. However, be sure that you know what the promotional period is for that card so that you pay off the balance before the promotional time expires. Otherwise, you may end up with an even higher interest rate when all is said and done.

People living in the Miami metro area, which includes both Fort Lauderdale and West Palm Beach, carry the second-highest credit card debt balances in the country, second to San Antonio, Texas.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges. It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that do not even make a dent in your actual debt. We offer additional tips for eliminating credit card debt on our blog.

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If you have 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.

Bankruptcy Law, Debt Relief, Student Loans, Timothy Kingcade Posts

Millennials Hold Over $1 Trillion in Debt

Posted on February 26, 2019by Admin

With the increase in student loan debt, it is hard to ignore the effects it is having on a particular generation. The most recent statistics reveal that “Millennials,” individuals who were born after 1982, hold more than $1 Trillion in debt – much of that being student loan debt. In fact, the amount has risen 130 percent since 2008. These figures come from the New York Federal Reserve Consumer Credit Panel and are the highest debt levels reported since before the 2007 recession.

Most students end their undergraduate careers with an average of $37,000 in student loan debt. If they choose to move onto graduate studies, that debt can reach six figures before the student is done. Following graduation, most of these students are struggling to meet basic living expenses on top of meeting their monthly student loan payments.

The student loan debt burden has also impacted millennials’ ability to purchase a home. Consumer debt is reported at a record high of $13.5 trillion. Mortgage debt constitutes most consumer debt nationwide, but that is not the case for the millennial generation. Since 2009, mortgage debt increased by only 3.2 percent while student loan debt jumped 102 percent.

Overall, student loans make up the second largest category of consumer debt. Credit cards and auto loans follow. At the end of 2018, car loans made up the third largest percentage of debt in the U.S., followed by credit card debt.

If a borrower is not able to maintain payments on his or her student loan debt, the damage that results to that person’s credit can be significant, and this hit to a credit score can seriously hurt the person’s chances of obtaining a mortgage down the road. This fact could be another reason why fewer millennials are taking out mortgages.

Student loan debt is different from other types of debt. It is currently estimated that somewhere around 40 percent of all student loan borrowers will default at some point on their student loans. Many different mistakes can be made when it comes to student loan repayment. If you believe you qualify for student loan debt relief, speak with an experienced bankruptcy attorney about your options.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all 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.

Related Resources:

https://www.badcredit.org/average-student-loan-debt/

Bankruptcy Law, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

The Top Ways To Get Out Of Debt

Posted on February 25, 2019by Admin

Debt is a weight that can drag you down and make you feel like you are drowning without any way out. Having extreme debt can affect your health, happiness and personal relationships. Getting out of debt can be an even bigger struggle, if you do not devise a plan that works for your specific situation.

Debt Consolidation

One popular method of paying off debt is through debt consolidation. What consolidation means is the consumer’s debt is combined into one, single debt amount owed. Debt consolidation can be done through many different methods. A consumer can apply for a personal loan or consolidation loan to pay off all of the debts with the monies from the loan. This method allows you to only make one payment to one creditor rather than multiple creditors. With this method, we strongly advise that you do your research. Not all debt consolidation companies are reputable, and it is important you understand the terms of the loan before signing on the dotted line. For most debt consolidation loans, you need good credit to be approved. If you are already struggling financially, many lenders will see you as a risky bet and will avoid lending to you without a co-signer or at least some collateral to secure the debt.

Credit Counseling

Many different credit counseling resources exist, and they usually involve a professional counselor who will work with the debtor on understanding his or her financial situation and researching possible options to get out of debt. Credit counselors often will work with the individual to organize and manage their debt, and the counselor will also contact the debtor’s creditors on payment arrangements, including creating payment plans or negotiating lower interest rates. Credit counselors can also put together a debt management plan that allows the debtor to make lower monthly payments through the debt counselor who, in turn, pays the individual’s creditors.

Like debt consolidation companies, it is important that you do your due diligence in choosing a credit counselor. Less-than-reputable agencies do exist, so make sure you choose someone who has your best interests in mind. Know that a credit counselor cannot make certain promises, such as guaranteeing that your creditors will work with them or that they will be able to directly reduce your debt. While they can certainly work towards that goal, lenders are not obligated to work with credit counselors. If a ‘credit counselor’ is promising you this or telling you that they can completely eliminate your debt by having you pay a low monthly payment to them, this is a BIG red flag.

Debt Settlement

Another potential option for paying off debt is through debt settlement. This process normally involves a third-party company that works with a debtor’s creditors to allow the debtor to pay a lower amount than what is owed. However, with this option the likelihood of scams is very high. Many of these companies have been reported for taking the debtor’s money and never negotiating on the debt. Additionally, debt settlement can result in a person’s credit taking a rather serious hit due to the fact that the debtor will normally have to stop making payments to the creditor, pushing the accounts into default. Unless the creditor agrees to work with the debt settlement company, a judgment can easily be issued against the debtor, resulting in wage garnishment to satisfy the debt.

Filing for bankruptcy

Debt can be complex and oftentimes frightening to deal with. Many times, people are hesitant or feel ashamed to ask for help. However, not properly dealing with debt can only make problems worse. Rather than run the risk of being sued by a creditor or have your wages garnished, it is best to deal with your debt head on. There are a number of debt relief options available, including filing for bankruptcy, which can completely wipe out unsecured debts like credit cards, medical bills, personal loans and more- and give you a fresh financial start. Exploring these options with the guidance and support of an experienced attorney can help you make the right decision.

Do not let your debt cost you another sleepless night. Here are some of the signs that bankruptcy is right for you. 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. The consultation is free, the relief is real! You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

What It Means to Commit Bankruptcy Fraud

Posted on February 21, 2019by Admin

When filing for bankruptcy, it is extremely important that you fully disclose all information requested and that all information provided be accurate and true. Although, most people who file for bankruptcy are honest hardworking people, some individuals can be tempted to hide property and assets. This is called bankruptcy fraud, which is a federal crime that the U.S. Department of Justice takes very seriously.

Bankruptcy fraud occurs when a person knowingly and fraudulently commits certain prohibited acts in their bankruptcy case. It is estimated that somewhere around 10 percent of all U.S. bankruptcy filings include some form of bankruptcy fraud. If this fraud is discovered, the person committing the fraudulent act can face fines up to $250,000 and even imprisonment for up to five years in federal prison.

The four most common types of bankruptcy fraud include: concealment of assets, petition mills, multiple-filing schemes, and bust-out schemes. It must be shown that the person intended to commit the crime of bankruptcy fraud, which means that intent to deceive must be present. The person must have planned to commit the fraudulent act. If, for instance, someone makes a mistake in their forms or accidentally forgets an asset when preparing the documents, fraudulent intent is not necessarily there.

One of the most common types of bankruptcy fraud is concealment of assets. Concealing assets accounts for approximately 70 percent of all bankruptcy fraud cases reported. A person should never assume they can outsmart the bankruptcy court. Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing.

Another form of bankruptcy fraud is making false statements either in sworn documents filed with the court or in person to the bankruptcy trustee. Debtors are required to fill out a bankruptcy petition and a number of other supporting documents, which includes a schedule of income and assets as well as a sworn financial declaration. By submitting these documents, you are swearing that all information provided is completely true.

Bankruptcy fraud can also be committed by someone filing too many bankruptcy cases in two or more states. These filings can be made using the same name and information or also false name and information, so long as they were filed by the same person. In these types of cases, the debtor will list the certain assets on some claims while other assets on the others, thus confusing the system. The ultimate goal of these multiple filings is to keep assets from total liquidation, giving the person time to conceal assets he or she wishes to keep.

Another form of bankruptcy fraud that seems to focus heavily on non-English speaking claimants involves bankruptcy petition mills. These “mills” are fraudulent schemes committed by a third-party, where that person claims to be a consultant who can help someone avoid eviction. That person gets all of the tenant’s information and files a bankruptcy petition without the tenant ever knowing. While the bankruptcy case is pending, the perpetrator of the crime will often completely clean out the tenant’s bank accounts and destroy his or her credit. Sadly, these types of schemes are on the rise, especially in areas where many non-English individuals reside.

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Bankruptcy Law, Credit Card Debt

A Growing Number of Americans Have More Credit Card Debt than Savings

Posted on February 20, 2019by Admin

Many Americans are fighting a never-ending battle between saving money and barely making enough to pay their day-to-day expenses. More and more Americans are relying on credit cards to not only pay for big expenses but everyday expenses, resulting in a major imbalance when it comes to credit card debt and emergency savings. In fact, for many Americans, that emergency savings is essentially non-existent.

According to a new study published by the personal finance company Bankrate, nearly 30 percent of Americans have more credit card debt than they do money in savings. This number is up from 2018 when 21 percent claimed they had more credit card debt than savings.

The increased reliance on credit cards could be indicative of the fact that many households are under a great deal of financial strain. According to Bankrate, 41.2 percent of households nationwide carry some level of credit card debt with the average balance being $5,700. Income may be increasing at a rate of about three percent annually, but the cost of living is surpassing that. Oftentimes, the increase in pay does not keep up with the jump in basic living costs.

According to Federal Reserve data, 39 percent of American consumers say they have enough money in savings to cover a $1,000 car repair or unexpected emergency room visit. The level of savings, of course, does vary by income classification. In 2018, the median American household had $11,700 in savings, but for those who do not have enough to meet even just a $1,000 bill, this amount of savings is never realized.

The recent government shutdown did not make this financial situation any easier for many struggling consumers. The shutdown and lack of pay forced government workers to take on debt just to keep up with expenses, which added to the debt many already carried before the shutdown occurred.

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Bankruptcy Law

Famous Celebrities Who Went Bankrupt before Becoming Rich

Posted on February 19, 2019by Admin

Sometimes you have to go through hard times before you make it big. In fact, many famous people did just that before they became successful. They represent your typical rags to riches stories, and these life stories go to show that even the most successful people struggle on their way to the top. For individuals thinking of filing for bankruptcy, these stories often give them hope that filing for bankruptcy will be the beginning of greater things to come.

Dave Ramsey

Dave Ramsey is known for his financial advice, so it may seem hard to believe that even he struggled financially at one point in time. However, even his rise to the top had its peaks and valleys. He started with a great deal of real estate holdings through his brokerage firm, Ramsey Investments, but his real estate success was not long-lasting. His holdings ended up being leveraged, resulting in creditors calling in their debts. Ramsey eventually filed for bankruptcy. After bankruptcy, he went a different direction and focused his efforts on financial counseling for his local church. He attended workshops on consumer financial issues and used this knowledge to build his own seminars. Now he is known for his first book and subsequent programs titled Financial Peace. His net worth is over $55 million, and individuals all over the world swear by his program in their own financial success.

Abraham Lincoln

You would not assume that one of our nation’s most famous presidents would have filed for bankruptcy, but it is true. In his 20s, before he entered politics, Lincoln and a partner opened a general store in Illinois, buying their store’s inventory on credit. However, as business did not sore, their debts were not paid off. He ended up selling his sake in the store, but after his business partner died, Lincoln was on the hook for over $1,000 in debt. While technically bankruptcy did not exist at that time, he worked out a payment plan to repay his creditors successfully over the span of 17 years.

Walt Disney

Orlando, Florida is well-known for one specific name, and that name is “Walt Disney.” Like the others mentioned, you would not think that Disney would have gone through something like bankruptcy, but it is, in fact, true. He was barely out of his teen years when he filed for bankruptcy. Disney formed a company called Laugh-O-Gram Studio in 1920 where he made animated fairytales. He formed the company on the assistance of a financial backer, but after that source went broke, Disney was not able to pay off his debts, let alone his animators, forcing the company to file for bankruptcy one year later. He obtained a family loan in 1923 when he started a new company. Five years later, Disney created Mickey Mouse, and his career and the company took off. Disney almost had to file for bankruptcy in 1937 upon the release of Snow White and the Seven Dwarfs, but he was able to get a bank loan to finance the movie. The company took off even further from that point, resulting in the rest of the classic movies we all know and love.

P.T. Barnum

Even the creator of one of the greatest shows on earth went through his fair share of financial struggles. P.T. Barnum is one of the founders of Ringling Brothers and Barnum & Bailey Circus, a show that lasted from 1871 to 2017. Barnum began his career at 25 when he purchased the Scudder’s American Museum in New York City, one of the most popular attractions in the city at that time. However, the building burned down five times, resulting in Barnum to continually put out money to refurbish the building. The cost of keeping up with building expenses was not supported by the museum’s revenue, forcing him into eventual bankruptcy. He ended up conducting lectures on “The Art of Money Getting,” which allowed him to repay his past debts. It was not until he was 64 when he joined forces to create one of the most famous circus attractions of all time.

Willie Nelson

Willie Nelson is one of the most well-known country singers of all time, but even Nelson struggled financially. Growing up during the Great Depression, his family struggled to pay their living expenses, and Nelson even had to pick cotton to earn money for his family. Oddly enough, his cotton picking sparked his desire to perform. At age 13, he chose to sing in local dance halls to earn money. He became a disc jockey at a local radio station in Texas, which allowed him to do his own recordings, thus sparking his career. While he never formally filed for bankruptcy, he went through extreme financial difficulties after the IRS claimed he owed over $32 million, resulting in them seizing his assets in 1990. He was able to eventually settle the debt, but it was definitely a defining experience for him. He even released an album called The IRS Tapes: Who’ll Buy My Memories. All profits from the sale of that album went directly to the IRS.

Elton John

Another famous singer, Sir Elton John, went through his own financial struggles. He first came onto the music scene with the release of the single Your Song in 1970. After that, he released hit after hit, resulting in enormous fame and wealth. He lived quite the lavish lifestyle, and eventually in 2002, that lifestyle caught up with him. He declared bankruptcy after properties he owned incurred a large amount of debts. It is estimated that he spent somewhere near 1.5 million British pounds monthly around that time, which definitely led to his financial issues. However, he has managed to bounce back after he entered into a contract to perform in Las Vegas at Caesars Palace in 2003. He also contributed on several Walt Disney movies, including The Lion King, resulting in a steady cash flow, bringing his wealth currently to approximately $450 million.

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Bankruptcy Law, Credit

A Record 7 Million Americans Are 90 Days Past Due on Their Car Loans

Posted on February 14, 2019by Admin

The struggle to keep current on monthly bills is a real one felt by many Americans. It can be hard to meet all your obligations, from utility bills to car loans. It is estimated that seven million Americans are at least 90 days past due on their car loan payments, according to the Federal Reserve Bank of New York.

What does this mean for the economy? Many economists believe it is an indication that, despite the strong economy and low unemployment rate, many Americans are still struggling to make ends meet. In fact, when the rate of car loan delinquencies is high, this means that Americans in the lower-income classes are significantly struggling financially.

The problem is a car is extremely important to someone who is having a hard time paying bills. That person needs it to get to and from work, and not having a form of transportation can cause that person to lose his or her job, thus continuing the cycle. Losing your car, leading you to lose your job will result in losing other important items, such as a place to live.

The Federal Reserve figures showed that the majority of people who were behind on their car loan bills had lower credit scores and were under the age of 30. What this indicates is that younger consumers are struggling to pay for their car loans on top of other expenses. One of these expenses that older Americans do not have that these younger consumers have are student loans. Perhaps these young consumers are not able to pay both their student loan expenses as well as their car payments?

Reports show that 17.5 million vehicles were sold in 2016 in the U.S. Car sales are not suffering by any means, and for the most part, those consumers purchasing cars have enough credit to be approved for decent loans and are able to repay their loans. However, the category of borrowers who are considered “subprime,” meaning they have credit scores under 620 seem to default more frequently.

One thing financial experts warn American consumers about is to be cautious as to where they get their financing. For the most part, banks and credit unions have smaller default rates as compared to companies that claim to be “auto finance” companies. One way to ensure that you are getting a good loan is to not get your auto financing from the dealership, unless it comes from a bank directly. Get the financing first and then go to the dealership with the financing documents in hand.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Medical Debt a Factor in Two-Thirds of Bankruptcy Filings

Posted on February 13, 2019by Admin

Coming to the decision to file for bankruptcy is an extremely difficult and personal one to make, but for many Americans, they have no other choice but to file. Why are so many of them at the point where bankruptcy is their only viable option? According to a recent study published in the American Journal of Public Health, medical debt is the leading cause behind many of these bankruptcy filings.

The study was conducted by two medical professionals, two attorneys and a sociologist from the Consumer Bankruptcy Project. The data reported showed that two-thirds of filers cited medical debt as the reason for their filing. They surveyed 910 Americans who filed for bankruptcy between the years 2013 and 2016. Of those surveyed, 58.5 percent reported that medical expenses either “very much” or “somewhat” contributed to their bankruptcy case. Additionally, 44.3 percent of those surveyed cited a serious illness that resulted in work loss as a contributing factor. Two-thirds of those surveyed said that medical reasons were one of the factors that led to them filing for bankruptcy.

It is estimated that approximately 530,000 medical bankruptcies are filed annually. Even after the passage of the Affordable Care Act (ACA), medical bankruptcies are still a common occurrence. High medical costs can lead to the person falling into financial difficulties, but so can losing time at work or even losing a job because of an illness or injury.

The study concluded that, even with the ACA, those who are considered “chronically poor,” tended to be the group that was most affected by the ACA coverage expansion. This group tends to also not have access to credit or assets to utilize to handle unexpected medical expenses. Many of these filers are already strapped financially and unable to make ends meet. Of those surveyed, 45 percent of them said they filed for bankruptcy due to foreclosure or the inability to pay their mortgages; 44.4 percent stated they were living beyond their means; and 24.4 percent of them were struggling after a divorce or separation.

According to Dr. David U. Himmelstein, distinguished professor at Hunter College and the founder of Physicians for a National Health Program, the lack of sufficient healthcare coverage is a leading cause these filings. Lack of savings is also a contributing factor. All it takes is for one major, unexpected medical crisis for a person to fall into a desperate financial situation where he or she cannot pay medical bills, and struggle to afford basic living expenses.

How is Medical Debt Handled in Bankruptcy?

In bankruptcy, medical debt is treated the same as credit card debt. Medical bills are listed as general unsecured debt and can be easily wiped out in a Chapter 7 bankruptcy filing. Making the decision to file for bankruptcy is never an easy one. It can be difficult to get past some of the myths associated with filing for bankruptcy. Sometimes by waiting, an individual facing a lot of debt can find himself or herself in an even worse situation. Filing for bankruptcy can help protect valuable assets, including your home, pension, IRA and social security. It will put an end to wage garnishment and any lawsuit being filed to collect on the debt, thanks to the protections of the automatic stay.

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Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

40 Percent of Palm Beach and Broward County Residents Are Struggling to Meet Basic Needs

Posted on February 12, 2019by Admin

A number of residents in the Palm Beach and Broward counties are struggling to make ends meet, according to a recent report published by The United Way. It is estimated that around 40 percent of residents living in some of the area’s oldest neighborhoods are barely able to meet their most basic expenses.

This report comes from a study produced by the United Way called the ALICE report. ALICE stands for “Asset Limited, Income Constrained, Employed.” It is a formula that takes federal, state and local income and expenses data and adds the percentage of households that are said to below the federal poverty guidelines. The result of this formula is the ALICE category, which includes households of working families who produce income but still do not have enough money coming in to meet their basic needs or save for the future. The ALICE rate is the number of families who fall into this category.

The ALICE report showed that six states, including Florida, New Jersey, California, Michigan, Connecticut and Indiana, struggle the most. In these states, up to half of the households surveyed are struggling so much that they have to make difficult decisions such as whether they pay their utility bills or buy groceries for the week.

Florida reports an ALICE rate of 45 percent. Specifically, in Palm Beach County, the ALICE rate is 41 percent while it is 47 percent in Broward County. It is reported that of the 64,229 households in Palm Beach county, 12 percent of them are below the poverty guidelines while 29 percent of them are employed but still not able to meet their most basic needs. In Broward county, of the 90,321 households reported, 14 percent of them are in poverty with 33 percent working but struggling to meet daily expenses.

What is considered to be poverty? It depends on the area of the country and the specific living expenses in each area. For example, in Palm Beach, a family of four needs to bring in $52,379 in income annually. In this area, the study reports that an average family of four spends $1,138 on housing costs, $1,146 on child care expenses, $655 in transportation costs, and $531 on food and groceries. These expenses are similar for the same sized family in Broward county, requiring them to earn an annual income of $52,712 to meet their basic daily living expenses.

However, the problem is most families in these areas do not bring in much more than this income. In many communities within both of these counties, households struggle even more. One area includes South Bay, which has an ALICE rate of 70 percent. Belle Glade has an ALICE rate of 68 percent and Rivera Beach comes in with a rate of 55 percent.

Even more concerning were the reports that in half of Broward county’s 32 communities, residents were not able to pay for necessary living expenses. Of all of these communities, the one that struggles the most is the Pembroke Park area, which reported at a 72 percent ALICE rate. Following Pembroke Park were Deerfield Beach, Lauderdale Lakes, Lauderhill, North Lauderdale and Pompano Beach.

The older neighborhoods with smaller homes and older appliances in the homes tend to be the areas that struggle the most. Many of these individuals are just on the edge of what the poverty guidelines dictate, which means they are just above the level of where they would be able to receive government assistance for expenses, which makes their situation that much more difficult.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Two New Ways to Raise Your Credit Score

Posted on February 11, 2019by Admin

Credit scores play a major role in your ability to do many different things in life, ranging from getting a mortgage or car loan to being approved for renting an apartment. A good credit score can also secure a lower interest rate when you do receive financing for a large purchase. It pays to have a good credit score and rebuilding a damaged credit score can take time.

There are two new ways to boost your credit score. These new programs include the UltraFICO from Fair Issac, the creator of the FICO Score, and Experian Boost. These two new programs can potentially help you increase your score, especially if you have a limited credit history or have a lower credit score.

UltraFICO

The first of these scores, the UltraFICO was launched in January 2019 and is planned on being available to most lenders in the U.S. by mid-2019. The program is part of a joint venture with FICO, Experian and Finicity. UltraFICO allows FICO to look at a consumer’s bank and financial accounts to show lenders that you do have savings and the money available to make loan or credit payments if approved for financing.

FICO anticipates that this program will benefit approximately seven out of ten consumers whose financial accounts can show a history of good savings and financial behavior. Even consumers who do not have a FICO score currently could still be eligible to receive an UltraFICO score.

This score could be more beneficial to someone who has a rather large bank balance but a limited credit history. So long as the consumer can show he or she can save money responsibly, the fact that he or she has not applied for credit much in the past will not hurt them with the UltraFICO score.

One point to keep in mind is UltraFICO is only available for loans or credit cards that are applied for with a lender who uses Experian. If the lender uses Equifax or TransUnion, the borrower will not be able to take advantage of this opportunity. Before applying for the loan or credit, as the company which credit bureau they use to review new applicants. If the company says they do not use Experian, it may be advisable to use another institution if you believe the UltraFICO score will help you.

Experian Boost

Another program is set to be released in the early months of 2019, known as Experian Boost. The Experian Boost program is different from UltraFICO in that it allows lenders to review the borrower’s financial history through their bank accounts, specifically related to utility bill payments. The key is not to see that a consumer has a sizeable savings but rather a demonstrated, good history of paying his or her utility payments in a timely manner over a set span of time. Also, unlike the UltraFICO score, the data found through this review is added automatically and directly to your Experian credit report. The borrower must opt in to allow his or her utility information to be visible in the Experian credit report, and if the results are positive, they will be posted immediately to the borrower’s Experian score. Borrowers are allowed to sign up for early access to the program.

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