Credit Card Debt

Credit Card Debt

What Happens to Credit Card Debt When a Person Dies?

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After an individual dies, one of the big questions that comes up from those handling the estate of the deceased is what happens to that person’s debt? These debts can include medical bills, taxes, and credit card debt. One of the main concerns brought up by clients is whether they will be personally responsible for the credit card debt of their deceased relative. The good news is only the estate will be responsible for any outstanding debt and not the family of the deceased.

Whether the person has a will or no will, his or her estate will need to be processed through probate court. If the deceased had a will, he or she will have named a personal representative who will handle the estate, and if the person has no will, the court will appoint someone to administer the estate.

Credit Card Debt, Debt Relief, Medical Debt, student loan debt

Tips for Managing Student Loans, Medical Debt, Credit Cards and More

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DMP - Debt Management Plan acronym, business concept background

Consumer debt encompasses several different categories. However, many people often struggle with the same few categories, mainly student loans, medical debt, and credit card debt. It helps to know how to attack the debt individually in each category if a consumer is looking to pay down their various debts.

Student Loan Debt

If you are struggling with student loan debt, you’re not alone. In fact, it has been reported that Americans carry over $1.5 trillion in student loan debt. This figure amounts to an average individual load of $32,731 per student. If the consumer proceeds towards a master’s degree or professional degree following graduation from undergraduate studies, that amount can get into six figures. Paying down that debt can be a struggle for many, especially during recent times. Currently, the federal government has issued a forbearance on all federal student loan debt during the COVID-19 crisis, which has been extended past September 30.

Credit Card Debt

4 Cost Effective Ways to Pay Down Credit Card Debt

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Paying down credit card debt can seem like a never-ending struggle.  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 and penalties, and never-ending minimum payments that do not seem to make a dent in the total balance.

According to data from the New York Federal Reserve, the total national credit card debt being carried has hit $14.3 trillion, which represents a 1.1 percent increase from the previous quarter. One of the biggest problems’ consumers face when it comes to credit card debt is paying down a large balance or balances once they are incurred. However, certain tactics have been proven to be successful when it comes to paying off credit card debt.

Credit Card Debt

The Most Common Credit Card Fees and How to Avoid Them

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Most Americans have at least one credit card, if not more, that they use on a regular basis. These credit cards can be useful when paying for monthly expenditures, so long as the balances are kept to a minimum and paid in full. Additionally, most credit cards come with fees that make it nearly impossible to pay the card down if the balance becomes too high. According to a 2019 Consumer Reports study, one-third of American credit card consumers say that they struggle with the fees that came along with their credit cards. It is important that consumers be aware of these fees and take steps necessary to avoid them if possible.

Read the Fine Print

One of the best ways to determine what fees come with a credit card is to carefully review the fine print that comes with the consumer’s credit card contract. If any fees will be charged to the card, this information will be found in that fine print.

Credit Card Debt, Debt Relief

Tips for Conquering High-Interest Debt

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Being saddled with debt is a stressful experience, but paying it down can be even more difficult, especially if that debt has a high interest rate. It helps to identify and prioritize these debts.

Of the types of high-interest debts, credit card debt is arguably the most common and most expensive to pay down. One reason credit card debt can be so hard to escape is the fact that it is revolving. What this means is the consumer has access to a continuing stream of credit, which can make it tempting to continue adding to the outstanding balance owed. In fact, there is nothing preventing the consumer from adding more to the debt until he or she reaches the credit limit.

Credit Card Debt, Debt Collection, Debt Relief

How to Continue Paying Debt While Unemployed During COVID-19

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The coronavirus (COVID-19) pandemic has caused countless Americans to lose their jobs. More than 30 million Americans have filed for unemployment in the wake of the outbreak. Paying for basic expenses can be difficult enough but paying down debt while unemployed can seem impossible.

However, with proper planning and by taking advantage of opportunities available during this time, it can make things a little easier. The first step is to evaluate all expenses coming out monthly and create a budget to see what payments can be made. Additionally, the Coronavirus Aid Relief and Economic Security Act (CARES) provides some relief, as well, that can make this process easier.

Coronavirus, COVID-19, Credit Card Debt, Debt Relief

Nearly Half of U.S. Adults Now Carrying Credit Card Debt Amid Pandemic

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Credit card debt has dramatically increased since the coronavirus (COVID-19) pandemic, according to recent data from CreditCards.com. Their data reports that 120 million U.S. consumers, or 47 percent of all consumers, had credit card debt as of April 2020, which is a 43 percent increase from March.

Millennials were hit the hardest with 34 percent of them reporting that they used credit regularly. Experian, one of the three main credit reporting agencies, reported in March that U.S. consumer debt reached a staggering $14.1 trillion with credit cards making up $829 billion of this debt. This level is the highest seen since the Great Recession.

Coronavirus, COVID-19, Credit Card Debt, Debt Relief

Simplified Rules for Paying Down Debt

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When it comes to paying down debt, the process can seem daunting if not impossible. During COVID-19, many Americans are being forced to take a different approach when it comes to their finances. With the uncertainty of how long this pandemic will last and how it will affect the nation’s economy, many are concerned how to manage their existing debt while trying not to incur new debt.

One good rule of thumb is to look at the debt that is costing you the most in the long run. How is this “cost” determined? The interest rate on the debt is often a good predictor of whether a debt will end up taking longer to pay off and will end up costing someone more when the debt is eventually paid in full.

Credit Card Debt, Debt Collection, Debt Relief

What Happens to Unpaid Debt When A Person Dies?

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Given the amount of debt consumers carry during their lifetime, it comes as no surprise that for many people this debt will remain unpaid after death.  What happens to that debt when the person who was originally responsible for the debt passes away?

Ultimately, how that debt is handled depends largely on the type of debt owed. After someone dies, anything that person owned at the time of his or her death and anything he or she owed is all a part of the deceased individual’s estate.  Essentially everyone has some type of debt when they die, even if it is just payment for funeral and last medical expenses. All this debt will need to be handled in the person’s estate by the personal representative, either appointed in a Last Will and Testament or appointed by the probate court.

Coronavirus, COVID-19, Credit Card Debt

How to Keep Credit Card Debt Under Control During the Covid-19 Crisis

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During the Covid-19 pandemic, many Americans have resorted to using credit cards to purchase basic living expenses. With many Americans out of work and stuck at home, this crisis has wreaked havoc on their finances.

Analysts at Bankrate.com estimate that over 110 million consumers entered this crisis carrying credit card debt. A great portion of this debt was already incurred by paying for necessary living expenses, such as childcare and groceries, with credit credits. These expenses also included paying for repairs to cars or homes, as well as emergency medical expenses.