Credit Archives - Page 24 of 82

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How a Balance Transfer Affects your Credit Score

Posted on March 1, 2017by Admin

If you are struggling to pay down credit card debt, the interest is not making it any easier. Transferring the debt over to a 0% interest credit card can save you money in the long run. But applying for a new credit card, or any type of new credit requires a “hard inquiry” to determine if you qualify.

This can have a small, but short-term effect on your credit score. The five biggest factors in determining your credit score include: credit utilization, payment history, types of credit, credit inquiries and the ages of your accounts.

Here is an explanation of how each of these can be affected when you do a balance transfer.

Your Credit Utilization: Suppose you owe $10,000 on Card A, which has a limit of $12,000. You are using 83% of your available credit. But now you open Card B and move all $10,000 onto it (it has a credit limit of $10,000). You are now using a total combined available credit of 45% (a combined $22,000 on both cards). The new lower credit utilization will help boost your credit score.
Payment History: If you made regular, on-time payments on your old card, doing the same with the new card will not cause you to see a drop in this area.
Types of Credit: Diversity is key. Having a good mix of credit cards, auto and mortgage loans that you pay on time every month will help you generate a good credit score. Since you were using a credit card previously, you will likely not see any difference here after a balance transfer.
Credit Inquiries: Applying for a new credit card will put an inquiry on your credit. As long as you are not applying for multiple lines of credit at the same time, you are probably only looking at your credit score dropping 5 points, which is only temporary.
Age of Credit. Once you receive your new card, keep the old one. Do not cancel it. You want to keep your oldest cards open so you can build up that history for as long as possible.

Bottom Line: Opening a new account and transferring the balance over can save you money, as long as you do not charge more on the new one and focus on paying it down. Do not expect a huge jump at the very beginning, but as you begin to pay down your balance by making on-time payments, you will see your credit score improve. The new lower credit utilization will help boost your credit score.

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.

Related Resources:

http://www.cbsnews.com/news/how-a-balance-transfer-affects-your-credit-score/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Three Simple Ways to Pay Off Credit Card Debt

Posted on February 28, 2017by Admin

Many consumers know the problem with using credit cards is that oftentimes you end up paying for purchases after you buy. The average interest rate on a credit card is 13.51%- if you carry over a balance. As of September 2016, cardholders carried on average a balance of $7,527. When you pay off your credit cards in full or have your debt discharged in bankruptcy, you have more disposable income for your financial goals and can better plan for your future. But how do you get there?

Here are three simple steps to eliminating your credit card debt.

Step one: The obvious- Stop using your credit cards. Pay in cash for all of your purchases. For online purchases use PayPal or your debit card. Using a “cash only” system allows you to spend what you have.

Step two: Make extra payments toward the principal. Lenders are required to show you how long it would take to pay off your credit card if you only made the minimum payments. Request your statements be mailed to you, online you may not be able to see this number. It will certainly give you a wake-up call. For example, the average American with $7,527 in debt, would spend 11 years paying the card off if they only paid the minimum balance. The interest would cost you $2,869!

Step three: Set financial goals and SAVE for them. Set up savings accounts for your big purchases. For example, if you are going to need a new car in the next 6 months or are planning a family vacation this summer.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Effects Debt Has On Your Emotions

Posted on February 24, 2017by Admin

The average U.S. household carries debt- more than $132,000 in fact, including mortgages. Approximately 40 percent of households have credit card debt. The interest on credit cards alone is costing as much as $1,300 per household per year.

If you are struggling with debt, understanding the common emotions and actions surrounding debt can help you take positive steps moving forward to help improve your financial and mental health.

Powerlessness. If you have a large amount of debt, it can make you feel powerless. The best way to fight back is to take control. Get on a budget and stick to it. Knowing that you are taking control and have a plan in place will help you regain a sense of power.

PTSD-like symptoms. A recent survey found that one in four people who are in debt have symptoms similar to post-traumatic stress disorder, or PTSD. That number is even higher for millennials. Among people age 18-34 who are in debt, 36 percent suffer. Symptoms can include denial, avoidance (such as not paying bills), and not being able to sleep.

Fear & Anxiety. Debt can make us anxious. Be proactive and set up auto-pays on recurring bills you have. It will give you one less thing to think about. Put credit cards away (only temporarily, remember not to close out the accounts).

Retail Cravings. Nearly two-thirds of women and 40 percent of men have spent money to improve their mood, according to research. If you overspend, any euphoria you experience will surely diminish once the bills arrive in the mail. When you feel yourself wanting to spend, ask yourself what’s really going on. Think of the HALT acronym: Are you hungry, angry, lonely or tired? Address these feelings head-on without the use of a credit card.

Lowered defenses. Lowered defenses might be caused by anything from having a couple of glasses of wine to a break-up, to battling a cold. Be smart about your spending. To resist online impulse buys, delete credit card information stored on your computer and mobile devices.

Celebration. Did you recently receive a bonus or land a big account? When it comes to the risk of debt, feeling overly happy can be just as dangerous as feeling overly sad, which can oftentimes cause a financial splurge. Put any financial gain toward your debt or into savings.

Related Resources:

http://www.wbrc.com/story/34555906/6-ways-debt-can-wreak-havoc-with-your-emotions

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

Struggling with Student Loan Debt after 50? You’re not alone

Posted on February 22, 2017by Admin

Student loan debt is no longer limited to the young. In fact, Americans age 60 and older are the fastest-growing population of student loan debtors. Those seniors who are living month-to-month on fixed incomes are the most likely to default. When this happens to borrowers 65 and older, the government can seize a portion of their social security benefits, even if this pushes them into poverty.

Approximately 20,000 Americans 50 years of age and older had their Social Security checks cut below the poverty line in 2015 because of student loan debt.

Many have accumulated the debt helping their children or grandchildren, either by borrowing directly or co-signing on loans. As these borrowers age, it becomes more difficult to afford their loan payments while also paying for food, housing, prescriptions, and dental and medical expenses.

Many seniors who are carrying federal student loan debt are eligible for income-based repayment plans, where borrowers can pay as little as zero dollars per month or may even qualify to have their loans forgiven after a specified period of time.

But loan servicing companies have not made it easy for borrowers to enroll in the programs or even let them know it was an option. This deprives seniors of information about payment plans that would allow them to meet their loan obligations without having to skimp on food or necessary medical care.

The federal government needs to make this group a priority, which means ending the practice of garnishing the Social Security benefits of poor or disabled student loan debtors.

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.

Related Resources:

https://www.nytimes.com/2017/02/13/opinion/haunted-by-student-debt-past-age-50.html?_r=0

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

South Florida Pair Arrested in Bank Fraud Scheme

Posted on February 20, 2017by Admin

Authorities have apprehended two bank fraud suspects who reportedly owned $17 million worth of property in Florida and New York, then victimized tenants and residents who lived there.

Issak Almaleh, 63-years old and Antoaneta Lotova, 51-years old were arrested in Hollywood on charges of conspiracy to commit bank fraud, bank fraud, and other offenses. The Sun-Sentinel reported the two chose properties in foreclosure that were owned by FDIC-insured banks. Authorities say they filed fraudulent and forged warranty deeds to show the transfer of those properties to corporations they controlled.

Almaleh, who was a notary, would notarize the documents as genuinely signed by representatives of the financial institutions and Iotova would sign the documents on behalf of the companies they controlled, officials said. This allowed them (with the help of police) to evict residents from their home and change the locks on the properties. The tenants were informed by the bank that their lease agreements were invalid and that they needed to vacate the property, officials said.

The two remain in jail.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://tampa.cbslocal.com/2017/01/26/south-florida-pair-arrested-in-17-million-bank-fraud-scheme/

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

Lawyers May Have Discovered a Way to Wipe away Student Loan Debt

Posted on February 17, 2017by Admin

Student loans are some of the most difficult to get rid of – even in bankruptcy. But some attorneys are challenging the laws and creating hope for millions of struggling borrowers. Bankruptcy attorneys in Florida and New Hampshire are filing cases in the hopes of establishing “paths” to help bankrupt borrowers and their attorneys better manage, even eliminate student loan debt in bankruptcy.

Congress exempted federal student loans from discharge in bankruptcy, except in extreme circumstances. Lawmakers extended that exemption in 2005 to private student loans as well. In order for borrowers to have their student debt discharged in bankruptcy, they must prove that the debt is causing them to suffer “undue hardship.”

Although Congress never defined the phrase “undue hardship,” a series of court rulings have created an undue hardship standard that is notoriously difficult to meet. So instead of trying to meet the standard, attorneys are turning to other legal strategies that challenge private lenders’ ability to collect on the loan and in the case of federal debt help borrowers better manage the loans while in bankruptcy.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Qualifying for a loan is getting harder for some consumers

Posted on February 15, 2017by Admin

Banks are becoming more selective when it comes to approving loans for those with less than perfect credit. The data is surprising as many consumers seem to be benefiting from job growth and lower debt levels. However, 11.7% of banks have tightened their standards for auto loans in the first quarter, from 3.3% last year, according to the Federal Reserve and Deutsche Bank.

Credit card standards were strengthened by 8.3% of banks, compared to none in the fourth quarter. With the economy in its eighth year of recovery, lenders are extending their reach to those with cash flow pressures, borrowers at low – and middle class income levels to increase revenue.

The share of delinquent personal loans and credit card debt increased in the third quarter to 3.53% and 1.33% respectively, according to TransUnion and UBS. Out of those consumers surveyed, 18% said they expected to default on a loan payment in the next 12 months, up from 12% in December.

The number of subprime auto loans (those requiring a FICO score of 600 or lower) that were at least 90 days delinquent reached the highest level since 2010 in the third quarter at 6 million. The number of bad loans were by auto finance companies, not banks.

Two-thirds of the households who earn less than $40,000 say financial concerns have increased over the past six months for them. The latest numbers reflect the incomes of many low- to moderate-income working families are not keeping up with the costs of rising health insurance deductibles and monthly expenses.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

6 Credit Score Killers and How to Avoid Them

Posted on February 14, 2017by Admin

There are financial missteps you can make that are guaranteed to lower your credit score. One of the biggest factors in determining your credit score is your past payment history, but there are other things you may be doing that can affect your score in a negative way.

A first missed payment. Per a FICO study, a single 30-day late payment can cause a good credit score of 780 to fall 90 to 110 points. An average score of 680, can fall by 60 to 80 points. You can avoid missing payments by setting up auto-pay from a linked checking account every month. If auto pay makes you uneasy, you can set up automatic alerts that will remind you when your bill is due.
A maxed out credit card. Credit utilization is the second most important factor of credit scores, so reaching your card’s credit limit can be problematic. What’s worse, is if you have multiple cards you are doing this with. Remember, for optimal credit score results, it is recommended you keep the amount of debt you owe collectively and on individual cards below 30%, and ideally 10% of your credit limit.
An error. This happens more often than you might think. A report from the Federal Trade Commission discovered that one in five Americans had an error on their credit reports. Staying on top of your credit score and monitoring it for mistakes can help.
An account in collections. That medical bill you thought insurance covered or a utility bill you forgot to pay in college can drop your score 50 to 100 points (if it winds up on your credit report). That account can legally stay there for up to seven years, plus 180 days from the date of your first missed payment. Keep an eye on your mail for any outstanding debts and resist the urge to ignore a call from a debt collector.
Applying for several credit cards or loans at a time. These credit inquiries account for 10% of your credit score. Keep credit applications to a minimum. Making several requests in a short period of time can cause your credit score to dip.
Closing out your old credit cards. Another component of your credit score, 15%, is the length of your credit history. Closing old credit cards, especially your oldest card, makes your credit history seem shorter than it really is.

Related Resources:

http://finance.yahoo.com/news/5-big-credit-score-killers-110000016.html

https://www.thebalance.com/things-that-hurt-credit-score-960510

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What Happens to Your Home When You File for Bankruptcy?

Posted on February 13, 2017by Admin

Bankruptcy gives people a chance for a fresh start and to have their debts forgiven. Through Chapter 7 bankruptcy, filers are essentially saying they do not have the money to make payments on their debt and want to have their debt eliminated. As part of the process, consumers may have their assets seized to pay off a portion of their debt.

However, not all assets can be seized. These exemptions include: retirement accounts and pensions, your home and your car, based on how much they are worth. So, it is possible to file bankruptcy and keep your home and your car. Exemption amounts vary from state to state. But generally, any assets with equity lower than the exemption amount cannot be seized.

Chapter 13 bankruptcy is a process where consumers can work out a payment plan over three to five years to pay off their debt. Consumers who file Chapter 13 will not lose their property as long as they keep making payments on time. And consumers who start off filing Chapter 7 bankruptcy but then realize that their property may be seized may be able to switch to Chapter 13 bankruptcy, which would allow them to keep their assets and get current on payments.

Consumers who are thinking about filing for bankruptcy should speak to an attorney and research the bankruptcy exemptions in their state to know exactly how much of their property is at stake. It is important to know that certain debts, such as student loans, tax debts and child support obligations, cannot typically be discharged in bankruptcy.

Related Resources:

https://www.washingtonpost.com/news/get-there/wp/2016/07/26/what-happens-to-your-property-when-you-file-for-bankruptcy/?utm_term=.26292275820e

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Card Fraud on the Rise despite New Security Chips

Posted on February 10, 2017by Admin

Even though the new security chip technology has made it more difficult for criminals to counterfeit credit and debit cards, fraud has actually risen over the last year, according to a recent study.

The new study from research firm Javelin Strategy & Research found that incidents of identify fraud rose 16% in 2016, costing consumers $16 billion in losses. In total, 15.4 million victims were affected, 2 million more than in 2015, representing 6.15% of all consumers.

Many thought the use of electronic chips on credit cards would help curb this criminal activity. However, the new security chips seem to be causing more fraud than they prevent, as numbers are at an all time high. Even though the chips have made it harder for thieves to walk into stores and purchase goods with a counterfeit card, more criminals are keeping their activity strictly online, bypassing the security chips all together.

Account takeovers have increased 61% over 2015, totaling 1.4 million incidents. Account takeovers occur when thieves gain access to someone else’s account and change the password and security information on that account. The criminals are then free to make charges without the victim’s knowledge since any warnings or notifications are sent back to the thieves themselves. Incidents where new accounts were opened in consumers’ names without their knowledge increased 40%. This has accounted for 1.8 million victims.

As evidenced by the latest numbers, it shows thieves’ ability to adapt to changing security measures, no matter the number of safeguards put in place. Banks, credit card companies, and retailers will need to keep being vigilant in order to keep fraud under control. But consumers also must take preventative measures, like installing anti-virus and anti-malware software on their computers, guarding their credit cards and account numbers, and paying close attention to the security on any website that credit card information is being accessed. Taking these simple precautions can help safeguard your finances.

Related Resources:

http://fortune.com/2017/02/01/credit-card-chips-fraud/

https://www.wsj.com/articles/credit-card-fraud-keeps-rising-despite-new-security-chipsstudy-1485954000

https://www.consumerprotect.com/consumer-safety-fraud-guide/