Credit Archives - Page 19 of 82

Credit, Debt Relief, Timothy Kingcade Posts

How to Reduce the Cost of Your Auto Loan

Posted on June 9, 2017by Admin

When applying for an auto loan with less than perfect credit, it is inevitable the loan will come with a higher interest rate. While this makes the vehicle more expensive, there are ways you can reduce the cost of your loan. Follow these simple tips:

Consider the choice of your vehicle. This is probably the most important decision, when it comes to determining the cost of your loan. You can save more money simply by choosing an affordable vehicle. Subcompact, compact and midsize cars are better choices than trucks, vans and large SUVs. These cars not only come with a lower price tag, but insurance rates, gas mileage, depreciation and maintenance costs will also be less. Important consumer tip: Make sure your car payment is below 10-15% of your monthly income.
Keep the loan term short. The length of your car loan plays a big part in how much you will end up paying for your vehicle. The shorter the loan term- the lower the overall cost of the loan.
Make a down payment. Making a down payment will help reduce the cost of your car loan. If you can put down at least 10% at the time of purchase, this will save you a lot of money in the long run. Making a solid down payment will also help offset the higher interest rate over the life of the loan.

Your goal when financing a car should be to get the vehicle you need while getting the chance to improve your credit through on-time loan payments. Here are three more tips to keep in mind: know your budget before beginning your car search; stick to your instincts and do not allow yourself to get talked into a more expensive car; focus on the total cost of the loan as opposed to just the monthly payment.

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 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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

“Disappearing” Bankruptcies Could Prompt new wave of Home Buying

Posted on June 6, 2017by Admin

Approximately 6 million Americans will have their bankruptcies disappear from their credit reports over the next five years. Chapter 7 personal bankruptcies peaked in 2010 during the housing market crash then decreased over the next few years before leveling off in late 2015 – 2016.

The number of Chapter 7 bankruptcies, the most common type of bankruptcy, which involves no repayment plan and in most cases is a complete discharge of debt, increased to nearly 1.14 million, in 2010.

Now seven years later, millions of Americans are seeing these bankruptcies fall off their credit reports, improving their credit scores and allowing them to re-enter the housing market and purchase a home.

Credit scores reached a record high this spring, which we discussed in a recent blog. This will create even more buyers in an already competitive market. With home prices continuing to increase as inventory levels drop, experts do not expect it to let up anytime soon.

Hispanic homeownership could also see an increase in the next few years as the President and his administration seek to “dismantle” the Dodd-Frank Wall Street Reform Act, which could give lenders more freedom to originate loans outside traditional qualified mortgages.

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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 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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Scores Hit Record High as Economy Continues to Improve

Posted on June 2, 2017by Admin

U.S. consumers’ credit scores reached a record high this spring thanks to falling unemployment and continued economic growth. An added bonus: The passage of time since the recession and housing market crash has helped many household balance sheets. Bankruptcies and foreclosures are now falling off Americans’ credit reports.

More than six million U.S. adults will have personal bankruptcies disappear over the next five years, according to a recent Barclays PLC report. Wiping away these events helps boost consumers’ credit scores. Lenders rely on both credit reports and scores when qualifying consumers for loans and determining interest rates.

The higher scores lead to more available credit and more activity in terms of loan approvals and credit card approvals. The average credit score nationwide was 700 in April, according to data from Fair Isaac Corp. Average credit scores have not been that high since 2005.

The share of consumers deemed to be the most risky, with credit scores below 600, hit a new low of roughly 40 million, or 20% of U.S. adults who have FICO scores. That is a decline from 20.5% in October and a peak of 25.5% in 2010.

Consumers who filed in 2007 for Chapter 7 bankruptcy protection, the most common type of bankruptcy, in which certain debts are discharged and creditors can get paid back from sales of consumers’ assets are starting to see those events fall off their credit reports. Some 500,000 Chapter 7 bankruptcy cases were filed in 2007, a figure that ballooned to nearly 1.1 million in 2010, according to the Administrative Office of the U.S. Courts.

As credit scores rise, banks and other lenders are likely to make credit more widely available to consumers, and at a lower cost. Consumers who have a bankruptcy filing removed from their credit report experience a near $1,500 increase in spending limits and $800 more in credit-card debt within three years, according to the Federal Reserve Bank of New York.

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

South Florida Student Loan Scam Shut Down by FTC

Posted on May 30, 2017by Admin

A federal court has shut down a phony student loan debt relief and credit repair company that was operating in Lake Worth, Delray Beach, Boca Raton and Las Vegas. The FTC charged its operators with scamming millions of dollars from consumers by falsely promising to reduce- even eliminate their student loan debt.

The owner of Strategic Student Solutions and related entities used corporate funds to pay for personal expenses, including: jewelry, casino tabs, mortgage payments, luxury vehicles, clothing and the construction of a pool, according to the FTC.

The U.S. District Court for the Southern District of Florida has halted the company’s operations and seeks to permanently stop the alleged illegal practices and refund consumers. Borrowers, who trusted Strategic Student Solutions, watched their student loan debt go from bad to worse.

The operators of Strategic Student Solutions lured student loan borrowers with promises such as, “Payments as low as $0 monthly” and “Save 60 percent or more on your monthly payments.”

However, consumers discovered the defendants failed to enroll them in any loan forgiveness or payment reduction plans, and found out none of their monthly payments were applied to their student loan debt.

The company falsely represented that they would provide credit repair services and improve consumers’ credit scores. Instead, they charged consumers illegal fees of up to $1,200 and monthly payments of $49.99.

The bottom line: Never pay an up-front fee to a company promising to deliver debt relief. Through deceptive marketing practices, this company and others like them, claim to offer borrowers the opportunity to get them out of debt, consolidate their loans and lower their monthly payments for a fee. It is important that borrowers know, these same services are offered by the Department of Education — for free. Borrowers looking to reduce their monthly student loan payments should contact the Department of Education for official guidance.

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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. 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, 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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Auto Loans & Default Rates on the Rise

Posted on May 26, 2017by Admin

According to data released this week by the Federal Reserve Bank of New York a record 107 million Americans have auto loan debt. That accounts for approximately 43% of the adult population in the U.S.

Auto loans have been increasing rapidly. In early 2012, only 80 million Americans had car loans. But now more Americans have auto loans than home loans- and according to recent numbers, many are having trouble affording their monthly payments. There are currently 6 million people who are 90 days or more behind on their car payments.

After the financial crisis, so-called “sub-prime” auto loans were routinely given to borrowers with less than perfect credit. Low quality loans spiked to pre-crisis levels in 2015 and 2016, according to federal data.

Many of the consumers qualifying for these loans do not understand the terms and conditions. The interest rates can be astronomical- sometimes as high as 20% and penalties for default can be severe.

Santander Consumer USA Holdings Inc., which is counted among the biggest subprime auto-loan firms, verified income on just 8% of borrowers. Limited verification of loan applicants’ stated incomes and employment “creates more uncertainty around whether borrowers will be able to afford their monthly payments, which becomes particularly important if they have poor credit records and risky loan terms,” the analysts wrote.

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

Student Loan Debt is Not Just a Millennial Problem- Baby Boomers Reportedly Struggling, too

Posted on May 25, 2017by Admin

Student loan debt has increased eight-fold among Americans aged 60-64 over the last decade. Moms, dads and even grandparents are shouldering more of these debts. From 2005 to 2015, the amount of student loan debt held by those ages 60-64 has increased from $4.85 billion to $38.35 billion.

For those aged 55-59, the increase is about five-fold, from $13.9 billion to $65.47 billion. Many seniors are having trouble paying these loans off or making payments at all: 12.6% of debt held by 60- to 64-year-olds was in default at the end of 2015, a higher default rate than anyone under 40.

To make matters worse, the Trump administration is not shaping up to be particularly friendly towards people struggling to pay off these debts. Most recently, education secretary, Betsy DeVos, scrapped an Obama-era plan to streamline the government’s system for servicing student loans. And just this week, an education budget obtained by the Washington Post revealed a proposal to end a student loan-forgiveness program for public servants, creating uncertainty for some 400,000 borrowers.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

A New Credit Card that Helps Consumers Repair their FICO Score and Avoid Pay Payday Loans

Posted on May 24, 2017by Admin

If you have a credit score below 600, chances are you will have difficulty qualifying for a credit card. However, Americans with poor credit scores are oftentimes the ones who need credit the most. Many are forced to turn to alternatives like payday loans that come with exorbitant interest rates and penalties. In rare circumstances, these loans can help but most times it ends up in a cycle of debt and borrowers are never able to recover.

FS Card is a start-up whose sole product right now is a credit card targeting those with “less than perfect” credit histories. The card, which is called “Build” and has MasterCard branding, allows consumers to avoid the local payday lender’s sky-high rates and gradually improve their FICO sore.

FS Card’s strategy is to target “deep subprime customers” in the 550 to 600 credit score range, offering transparent rates and fees and low spending limits to start, said the company’s CEO.

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Credit, Debt Relief, Student Loans, Timothy Kingcade Posts

Good News for Home Buyers with Student Loan Debt

Posted on May 12, 2017by Admin

Mortgage lender Fannie Mae has just made significant rule changes that should make it easier for former students with costly student loan debts to purchase their first home or do a “cash-out” refinancing to pay off debt.

These new policies could be game changers for a large number of consumers. Approximately 43 million Americans are carrying student loan debt, totaling $1.4 trillion nationwide. Costly student loan debt not only impedes on borrowers’ ability to save money for a down payment, but it is also a key reason why so many young, potential home buyers remain renters or are living with their parents.

Below are three big changes that Fannie Mae has made that could affect you:

If you’re one of the 5 million borrowers who participate in federal-reduced payment plans on your student loan, your actual monthly payments, as reported to the credit bureaus, will count toward your debt-to-income (DTI) ratio calculations. For example, if your payments were originally supposed to be $500 a month but you have had them reduced to $100 through an income-based repayment plan, only the $100 will be added to your monthly debts for DTI purposes. Previously, lenders were required to factor in one percent of your student loan balance as your monthly payment on the student loan, even though you were actually paying a fraction of that.
For an estimated 8.5 million American homeowners who are still carrying student debt, Fannie Mae has lowered the costs of a “cash out” refinancing, provided the extra cash you pull out from your equity is used to retire your student debt. Among the potential beneficiaries: parents participating in “parent plus” programs that help pay off their kids’ student loan debts, and parents who have co-signed for their children’s student loans. Fannie is eliminating the usual extra fee it charges for cash-outs, as long as the funds that borrowers withdraw pay off student loan debts.
If you have nonmortgage debts that are being paid for by someone else such as your parents, these will no longer be included in your DTI computation, provided the payments have been made steadily for 12 months. This should improve the DTI ratios of young buyers who are still getting a little help from their parents.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Puerto Rico Files for Largest U.S. Municipal Bankruptcy

Posted on May 11, 2017by Admin

Last week Puerto Rico filed for municipal bankruptcy with a total of $123 billion in debt and pension obligations. It is the largest municipal bankruptcy filing in U.S. history, far exceeding Detroit’s $18 billion bankruptcy filing in 2013.

Governor Ricardo Rossello said, “Given the deficit that we inherited, it is my responsibility to guarantee the best interests of the Puerto Rican people.”

The court proceedings could potentially make the island solvent again for the first time in decades. However, many of the prominent Wall Street firms who own Puerto Rico’s bonds are not too happy about the bankruptcy filing because they fear they won’t get paid back the money they are owed.

Puerto Rico has been in an economic recession for more than a decade and the unemployment rate is 11.5 percent. The island’s financial crisis is so bad that Congress installed a Fiscal Oversight Board last year to call the financial shots. However, the board stopped negotiations with creditors last week and filed for bankruptcy.

While on the campaign trail, Donald Trump said he would not “bail out” Puerto Rico. He repeated that again in a recent tweet. His budget director also said that the White House pushed hard to ensure no federal dollars would go toward paying the island’s debts in the latest Congressional budget deal.

Related Resources:

http://money.cnn.com/2017/05/03/news/economy/puerto-rico-wants-to-file-for-bankruptcy/

https://www.nytimes.com/2017/05/03/business/dealbook/puerto-rico-debt.html?_r=1

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

Dance Moms Reality Star Abby Lee Sentenced to One Year in Prison

Posted on May 10, 2017by Admin

This week Abby Miller, former “Dance Moms” star was sentenced to a year and a day in prison. The reality TV star was charged with hiding $775,000 worth of income and bringing $120,000 worth of Australian currency into the U.S. without reporting it.

U.S. District Judge Joy Flowers Conti also fined Miller $40,000 on top of the $120,000 in currency she is forfeiting as a part of the guilty pleas she entered last year. She was also ordered to spend two years on probation after her prison sentence.

In late 2010, Miller filed for bankruptcy after defaulting on a $245,000 Florida condominium mortgage and a $96,000 mortgage on her Abby Lee Dance Company studio in Penn Hills, outside of Pittsburgh.

U.S. Bankruptcy Judge Thomas Agresti nearly approved a plan to let her repay her creditors at lower interest rates and longer terms before he saw her on TV one night. Miller had declared in court that she was only making $8,899 per month.

It is a crime to deceive a bankruptcy judge regarding one’s income and assets because that information is used to determine how much and how soon creditors will receive in the court-ordered repayment plan.

She later paid out $288,000 in TV income she did not initially report in 2012, then the federal investigators found that she had hidden nearly $550,000 more from personal appearances, dance sessions and merchandise sales.

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