Credit Card Debt

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

How to Free Yourself from Holiday Debt

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On average shoppers spent approximately $1,007 this holiday season.  The retail trade association expected shoppers to spend between $717.5 billion and $720.9 in November and December, which is up over 4 percent from 2017’s total of $687.87 billion.  While shopping for the holidays can be exciting, the post-holiday period can be stressful. If you ended up overspending this holiday, we have some tips to help you get out of debt – FAST.

Review your financial situation.

You cannot eliminate debt without having a clear picture of where you stand financially.  Make sure you compile all receipts and documents related to your holiday expenditures.  Aside from the gifts, do not forget to include food and costs related to holiday entertaining. Many people who end up with high credit card bills at the end of the holiday season say they never planned on spending as much as they did. If you do not plan your expenses ahead of time, it can be easy to end up purchasing way more than you originally intended. Planning can go a long way in lowering your holiday spending costs.

Come up with a plan.

Write down all your debt amounts along with the interest rates.  Focus on the higher-interest rate debts first and consider paying more than the minimum to eliminate the debt faster. We offer some important tips for eliminating credit card debt. Some utilize the snowball method whereby they focus all their efforts in paying a higher interest card down, focusing on one card at a time. Another method is through the “island” approach where the consumer has two credit cards: one which is paid in full every month and the other card, which is a promotional no-interest or low-interest rate for big purchases, allowing the person to finance those large purchases over time.

Sell what you do not need.

With all the sales going on over the holidays, it can be easy to over buy. Most of these items either end up in the garage or saved for next year. Check through your closets and look for those unnecessary gifts and items you bought during the holiday that you can sell.  Also, consignment is a great way to get some extra cash post-holiday.  Everything from clothes you no longer wear, to baby toys, baby clothes and accessories- many of these stores are eager to give you cash for the same.

Pay More than the Minimum.

Consumers traditionally take approximately four months or more to pay off debt incurred during the holiday season. Many times, they are only able to make minimum monthly payments, which can prolong their ability to pay off the debt in full. Minimum payments often result in the person only paying the interest incurred that month, and if the cardholder is spending on top of the balance already owed, the debt can balloon quickly.

Get help.

Credit card debt is a major problem for many Americans. The ability to conveniently shop and pay the balance later has led to many people living in a cycle of debt, especially after spending over the holidays. The credit card system is designed for consumers to lose.

Credit card debt is one of the most common problems facing those with serious financial issues. With skyrocketing 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, the people we work with frequently point to credit card debt as among their most troubling financial issues.

At Kingcade Garcia McMaken, the number one piece of advice we give to our clients, family members and friends when dealing with creditors is to be honest.  If you are unable to afford payment- tell them that, never make a promise to pay and never give a creditor your bank account number or credit card information.

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, Credit, Credit Card Debt, Debt Relief

Average U.S. Household Carries more than $8,000 in Credit Card Debt

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Americans are borrowing more this year, as the average household carries $8,284 in credit card debt, according to the personal finance site WalletHub.  This total surpasses the previous year, where the amount of debt was $8,107 per household.

The total amount of credit card debt held by Americans is now at a staggering $974.2 billion, which is three percent more than the $949.9 billion reported last year.  Miami is reported as the second highest metropolitan area with the most credit card debt in the U.S.

One major problem with these figures is how close the debt is to being at the point where it is considered “unsustainable” when comparing the debt held to the average income being brought in by the average American.

The current debt load is said to be $177 from this point of “unsustainability.” What is even more worrisome is the Federal Reserve is expected to increase interest rates on December 19.

The study reports that American credit card debt is nearing the highest point it has been since the Great Recession. Financial experts are concerned that it could go past that point in 2019 if things do not change.

Not all the figures from this study were so dismal. Many Americans have worked diligently to pay off their debt, and WalletHub’s data showed that Americans paid off $40.8 billion in credit card debt in the first quarter of 2018. This figure represents the second-largest quarterly payoff of debt ever reported, which is promising. However, the study did also report that since that time, Americans have added $38 billion back to their credit card debt balances.

Many consumers have looked for resources to find debt relief. For some, credit counseling is a valid option, although it is important you know what to look for when choosing the right credit counseling agency. Our attorneys are here to help you if you are struggling to deal with credit card debt and wish to know your options.

Click here to read more on this story.

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.

 

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Going into the holiday season with debt? Proven ways to keep your finances in order.

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The holidays are upon us, and so is the biggest shopping season of the year. U.S. shoppers have already spent $1.75 billion online, up 28.6 percent from 2017.  Many people rely heavily on credit cards to make these purchases, and before they know it, their balances quickly spiral out of control. Here are some helpful tips to keep credit card spending under control and help you maintain your finances during the holiday season.

The first of these tips is to know your debt situation before you begin shopping. If you are already in debt, the thought of going even deeper into debt can be daunting. It helps to make a few rules first with yourself before beginning your shopping. The first of these rules is to set limits on your buying. Put together a list of everyone you will be purchasing gifts for before shopping. Set a limit on how much you will be spending for each person on your list.

If you have a large family, focus your efforts on the children first and suggest a holiday gift exchange or Secret Santa program for the adults. Keep in mind that it is not how much you spend on each person but the thought you put into the gift that counts. Consider making something if you cannot spend a great deal of money or give the gift of time or fun experiences for family members.

If you still want to purchase an item for your family members, you do not necessarily need to go with luxury items for gifts. Many stores have discount sections with gifts that are thoughtful and creative, and there is nothing wrong with shopping at a discount store for items. You can use these items as standalone gifts but also as craft supplies to make something unique and personal for your loved one. Many drugstores have a special holiday section that offers inexpensive gifts.

Sometimes you may also have money available to use without even knowing it. If you do have a credit card, check into whether you have credit card rewards that will allow you to purchase gifts using those points. You should also look into using store rewards programs when purchasing your gifts to get special bonuses, as well, for after the holidays. Use caution if you decide to utilize store credit cards, the risks oftentimes outweigh the rewards.

Sometimes using a credit card to make a purchase is unavoidable. If possible, try using a credit card with a zero percent APR on any of these purchases. Make sure you pay off the balance during the introductory period before being hit with penalties on these purchases. Most of these timeframes are anywhere from 12 to 20 months. Be sure to keep the purchases down to an amount that is manageable to pay off in the end.

After the holidays, consider doing a balance transfer on purchases made during the holiday season to a card with a zero percent introductory APR. Many credit card companies have special offers in January based on the assumption that consumers will spend more than they can handle over the holidays. Another option to pay off debt is a consolidation loan through your bank or financial institution.

Click here to read more.

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, Credit, Credit Card Debt, Timothy Kingcade Posts

Repayment Trick to Help Pay Down Credit Card Debt Faster

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If you are struggling with credit card debt, you are not alone. As of September 2018, the Federal Reserve reported that Americans have more than 1 trillion dollars in revolving debt, which includes debt like credit cards. Many people are only able to make the monthly minimum payment on their credit cards each month. However, a new repayment trick is helping consumers get out of credit card debt faster.

The study produced by researchers at several universities, including Harvard Business School, University of Pittsburgh, the Ohio State University, and the Yale School of Management, show that a repayment by purchase method of paying off credit card debt can be even more successful when it comes to getting the balance down to zero.

This method is also known as a form of budget reckoning where you, as the account holder, review your credit card statement as soon as it is received to evaluate where most of your purchases are made. Rather than make one small payment based on the minimum payment quoted or even just a random lump sum, these researchers believe that by paying off certain expenses, you are more likely to make headway when it comes to paying off the balance.

The research recommends that you look at specific line items and see which items can be paid off each month. For example, instead of making a payment of a random amount, such as $100, add together the number of meals charged that month and pay that amount to cover all the food items purchased that month. You could also target a certain expense, such as a clothing purchase or a travel expense.

By paying off a specific item or type of expense, you are holding yourself accountable for what you spend every month. In addition, researchers argue that the cardholder feels more of a sense of accomplishment after paying off a specific item rather than throwing a minimum amount towards a large balance.

American Express offers a similar plan called “Pay It Plan It,” which lets cardholders split up large purchases of more than $100 to repay them over time. A fixed monthly fee comes with the use of this program.

We offer some important tips for eliminating credit card debt. Some utilize the snowball method whereby they focus all their efforts in paying a higher interest card down, focusing on one card at a time. Another method is through the “island” approach where the consumer has two credit cards: one which is paid in full every month and the other card, which is a promotional no-interest or low-interest rate for big purchases, allowing the person to finance those large purchases over time. Keeping to a strict budget is important if you are planning on using this approach.

Please click here to read more…

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

New FICO Program Aims to Help Consumers Improve Credit Scores

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Consumers are always looking for new ways to improve their credit scores. Lenders and other financial institutions use these scores to determine whether a consumer is a risk when it comes to receiving a loan or credit so it is important that the scores reflect a consumer’s positive financial behavior. Currently, several different credit scores are available to financial institutions and lenders based on consumer behavior, but now there is one more as FICO launches its “opt-in” credit score.

FICO is the largest and arguably best-known company that provides software to calculate a person’s credit score. Originally known as Fair, Issac and Company, FICO has now become a fixture for consumer lending in the U.S, and a consumer’s FICO score is often seen as a major factor in determining a consumer’s fiscal responsibility.

The traditional way of improving a credit score has been for the consumer to exercise good financial behavior, such as paying bills on time, keeping a low balance on their credit card accounts, and avoiding spending over their given card’s limit. While this behavior is still encouraged, FICO is offering a new way to incorporate good financial data into a consumer’s FICO credit score.

This new score is being referred to as the Ultra FICO Score. It is a product created in partnership with two other financial institutions, Finicity and Experian, and allows the consumer to give these companies permission to have electronic access to certain financial information that will help boost their credit scores. This access can include data from the consumer’s bank accounts to show how long these accounts have been open, provide proof that the consumer has savings and show frequency of activity in these accounts.

For consumers who have credit scores in the upper 500s to lower 600s, it is hoped that the Ultra FICO program will help these individuals rebuild their credit, especially if they are struggling after a significant crisis in their lives. This program is expected to launch at the start of 2019. However, the access to the pilot program will be limited until approximately mid-2019.

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.

Related Resources: https://www.washingtonpost.com/business/2018/11/08/fico-has-new-way-help-consumers-improve-their-credit-score/?noredirect=on&utm_term=.1c1c57126b71

Credit, Credit Card Debt

More than Thirty Percent of Homeowners Paying for Home Renovations with Credit

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Despite the fact that American homeowners hold more equity in their homes than ever before, a growing number are using credit cards for major renovations. This trend has financial experts scratching their heads as to why these homeowners are choosing to use credit cards in lieu of less risky options to pay for major home expenses.

According to a recent study done by home improvement website Houzz and Synchrony Financial, of the home renovations completed in 2017, over 36 percent of them were funded by credit cards. This figure has jumped over 25 percent from 2011 where 29.5 percent of home renovations were paid with a credit card.  It appears as if this number is steadily increasing over the years.

In the survey, 85 percent of those who responded said that they utilized cash or savings to pay for their renovations, which is the ideal situation. However, 33 percent of them said they used credit cards to pay for the renovations, while only 15 percent of them used a home equity loan.

This new trend seems to be led by the millennial generation. These younger homeowners prefer to use credit in lieu of a long-term loan to pay for major expenses. Of the homeowners surveyed between the ages of 25 and 34 years old, 41 percent of them paid for home renovations with credit cards. Of the older demographic, specifically homeowners over the age of 55 years old, only 30 percent of them used credit cards for major renovations.

This younger generation of homeowners is more likely to pay off these expenses over the course of time. According to the survey, over 60 percent of those individuals intend to pay those credit card balances over the course of time. In fact, many of these homeowners make these large expenses by using a promotional card, many of which offer low or no interest for a specific period. If the homeowner can pay off the expenses within that period, they will not have to pay on any interest. The problem arises when the homeowner is not able to pay the balance before the promotional period expires. If that happens, he or she will be paying a large interest rate on the remaining balance. This possibility of incurring interest is additionally why many older homeowners prefer to pay for renovations with a home equity loan.

Another reason these younger homeowners are using a credit card for payment is the quick access they have to the funds. Applying for and being approved for a home equity loan can be a much longer process, and if the homeowner needs the money quickly, a credit card may seem like the better option. However, the consequences of using a credit must be weighed against the benefits before determining which option is best for you.

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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, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Tips to Protect Yourself from Zombie Debt Collectors

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Debt collectors can be persistent when it comes to trying to collect on a past-due account. While many of these efforts may be completely valid, debt collectors will even try to collect on debt that is not legally collectible, otherwise known as “zombie debt.”

What exactly is zombie debt? A zombie debt is a past-due account that is outside of the statute of limitations, meaning it is not legally collectible. Every state has a statute of limitations which sets how long a creditor has to sue on an unpaid debt.

Florida’s statute of limitations varies depending on the type of debt. For example, written contracts such as personal loans, the statute of limitations is five years. So once this type of debt is more than five years past due, the lender can no longer sue to collect money owed. For other debts, the statute of limitations is shorter. Oral contracts and revolving accounts such as credit cards have a statute of limitations of four years.

However, just because the timeline has passed does not mean the creditor will stop trying to collect on the old debt. Many debtors will mistakenly pay on a debt that is past the statute of limitations because they are not aware of this legal protection.

It is extremely important that you not pay on a debt that is past the date for the statute of limitations.  A single payment can reactivate the debt and reset the clock on the statute of limitations. This tactic is otherwise known as re-aging an old debt, and it is one that is commonly used by debt collectors to trick debtors into paying on a debt that they would not be legally obligated to pay.

If a debt collector contacts you on a debt, the first step to take is to request written verification on the debt. The debt collector must provide you with information to show how old the debt is and how much is owed. If the debt is past your state’s statute of limitations, you will not be legally required to pay back the debt.

It also helps to know your rights when it comes to communications from debt collectors. Under the Fair Debt Collection Practices Act (FDCPA), third-party debt collectors are prohibited from engaging in collection tactics that are harassing, threatening or illegal. If the collector is contacting you before the hours of 8:00 a.m. or after 9:00 p.m., they are in violation of the FDCPA.

The same rule applies if they contact you at work if you have informed them that they are not to contact you there. They are prohibited from using threatening or abusive language when trying to collect on the debt, as well. They also cannot misrepresent who they are by saying that they are an attorney or litigation firm when contacting you. They are also not allowed to threaten a lawsuit if they know they have no grounds to file one, especially if the statute of limitations has expired.

If you feel you have been a victim of zombie debt collection, first request that the debt collector provide you written documentation verifying the debt and check for any discrepancies. It is important that you respond to all court summonses to ensure that a debt collector does not win a court case by default.

If you have received notice of a lawsuit on a debt that has expired per the statute of limitations, do not ignore the suit and simply assume the court will recognize on its own that the debt is old. Courts give you a limited time to file an answer to a legal complaint, and by not responding, you could end up with a default judgment that is not in your favor. If you receive a notice of a claim for a debt that has expired, it is important that you contact an attorney who can file an answer on your behalf stating that the debt is past the statute of limitations and further protect your legal rights.

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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, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

How to Lower Credit Card Debt and Improve your Credit Score

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Having a good credit score can make many things in life easier, especially when it comes to purchasing a new home or vehicle. However, it can be easy to get off track. Credit card debt with a high interest rate is one way to lower your credit score, but for many Americans, that is exactly what has happened to their financial situations.

The problem of credit card debt may be more widespread than we think. According to Experian, the average American consumer owes more than $6,000 in credit card debt. This figure has gone up three percent in just one year. This amount of debt can be very difficult to get out of, even for someone earning a decent annual income.

Retail credit cards can be particularly tempting, especially when offered a great deal at the cash register, but these cards come with high interest rates and can be easy to rack up debt. Unless you are able to pay the retail card off in full after making the purchase, it is not recommended that you sign up for these department store cards.

Many consumers believe that not having a credit card is best when it comes to staying out of debt, but it is important to at least establish a credit score. Having one card, using it for minimal expenses and making payments on the balance in full on a regular basis every month can be an excellent way to establish that strong credit score. In fact, by having a high credit score, you have a better chance of getting a card with a low interest rate when opening the account.

What happens if you do have credit card debt that has gotten out of hand?  If possible, it is best to make a larger payment than the minimum payment amount. If any extra money is available in the person’s budget, it is best to put that extra money towards paying the debt. In addition, it can help to focus efforts on one card at a time, usually the card with the highest interest rate first. Once that card is paid, focus all the money that was going towards the first card on the next one and so on until the accounts are paid in full.

If you are not able to keep up on payments, contact the credit card company to negotiate a lower payment. If you fall behind on payments, it may be wise to contact a credit counselor to discuss repayment plans or negotiate the debt amount. If you are not able to make either of these options work, it may be time to talk to a bankruptcy attorney to discuss the options available to help eliminate the debt.

Click here to read more on this story.

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.

Credit, Credit Card Debt, Debt Relief

How Your Grace Period Can Save You from Credit Card Debt

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Using a credit card for certain purchases doesn’t have to be a bad thing, but problems arise when these purchases pile up and the account holder is not able to pay off the statement balance every month. Successfully utilizing the credit card’s grace period, can help avoid this.

What Is a Grace Period?

The grace period is the time an account holder’s credit card billing period ends and when the payment is due, as indicated on the statement. It is during this period that the account holder will not be charged interest on any purchases made during the billing cycle so long as he or she pays the balance in full by the due date.

Benefits of Grace Periods

A card’s grace period can allow for the cardholder to make a large purchase interest free. If the consumer makes the purchase right after the closing date of a current billing cycle, he or she can leverage the grace period to avoid interest charges.

Word of Caution

One word of caution should be issued when it comes to grace periods. Not all credit cards offer them. It is important the cardholder review the fine print for the account to make sure that the grace period exists and for how long.

Can a Grace Period Be Lost?

If the account holder is not careful, he or she could lose a grace period. One misconception is if the person carries even a small balance from one billing cycle to the next cycle, the cardholder will lose the grace period. However, many cards offer initial terms that include zero percent APRs on purchases so long as they make these purchases within the period offered, which is normally 12 to 18 months. Even if the cardholder loses the grace period, many cards will reinstate it if the cardholder pays the card’s outstanding balance in full for two straight months.

Can a Grace Period Be Extended?

Sometimes it is possible to extend a grace period. Many companies will change the card’s due date if requested and push the due date back can allow the cardholder extra time. Not all cardholders will allow for it, but it does not hurt to ask if this is a possibility.

Click here to read more on this story.

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, Credit Card Debt, Debt Relief

Study shows women struggle more with credit card debt than men

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Credit card debt is a problem for many Americans but according to a recent study by WalletHub, it appears to be more prominent among women.

Credit card spending is at an all-time high. Last quarter, consumers ran up nearly $30 billion in credit card debt, the highest seen since the 2008 financial crisis.

In this study, women cardholders reported that they were struggling with their card payments, on top of other monthly expenses. In fact, one in four female cardholders reported that they did not feel confident at all in their ability to pay their bills in full monthly. This figure is double the percentage of men reporting the same sentiments.

Approximately 31 percent of women surveyed reported that they were able to pay their credit card monthly statement balances completely in full once or less in the past six months.

What does this mean for female cardholders? According to these figures, if we had two groups of individuals, one group female and one group male, each carrying $5,700 of credit card debt, paying this balance off in full will end up eating up much more of the total annual income for the women than the men.

Federal reserve figures report that the average female salary is $41,554 annually while their male counterparts earn on average $51,640 annually. Paying just shy of $6,000 in credit card debt ends up taking a much larger percentage of their annual income, making it much harder to keep up with other monthly expenses.

Single mothers are a subgroup that is suffering particularly hard. Many of these women are already on tight budgets, and when a major expense hits, it can be hard for them to keep up with monthly bills, let alone pay a credit card off in full. Some even rely on credit cards to cover daily expenses.

Did you know that one of the leading causes of bankruptcy in America is divorce? Many people say issues regarding money cause divorce, but money problems after divorce can also be equally troubling. In many instances, single mothers become the sole financial providers for themselves and their children.

Click here to read more on this story.

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.