Credit Card Debt, Debt Collection, Debt Relief

U.S. Cities Seeing the Highest Increase in Millennial Debt

Consumer debt is increasing nationwide, affecting individuals in all types of economic and sociographic groups. However, millennials seem to be the generation hit the hardest. In fact, millennials living in certain U.S. cities are hurting the most when it comes to their debt, according to a recent study from LendingTree.

LendingTree found that individuals in the millennial generation, born between the years 1981 and 1996, carried large amounts of auto debt, as well as student loan debt. These two categories made up the biggest portion of non-mortgage debt carried by millennial consumers.

Bankruptcy Law, Debt Collection, Debt Relief

Student Loan Tax Refund Garnishment and What Borrowers Need to Know

Many student loan borrowers struggle to keep up with their federal student loan payments upon graduation, but defaulting on student loans can end up resulting in the loan servicer garnishing the borrower’s state and federal tax refunds. Here’s what borrower’s need to know about tax refund garnishment.

The Treasury Offset Program, established in 1986, overseen by the Bureau of Fiscal Service, gives departments within the federal government the ability to ask the Internal Revenue Service (IRS) to garnish tax refunds to collect on defaulted debt owed toward either state or federal government entities. This action is known as a tax offset. A tax offset does not mean that the borrower will lose all his or her refund. The government can choose to seize the entire refund or a portion of the refund, depending on how much debt is owed. If part of the refund pays off the debt owed, including fees and interest charges, whatever is left of the refund will then be forwarded to the borrower.

Debt Collection, Medical Debt

Military Hospitals Aggressively Pursuing Medical Debt

Medical debt collectors can be relentless, and when someone has no money or resources to pay medical debts, this process can be extremely stressful. Recent reports have shown that private hospitals are not the only entities persistently collecting on medical debt. Federally backed governmental institutions, including military hospitals, are some of the worst offenders when it comes to pushing patients hard to pay on their medical bills.

A recent piece in The Atlantic highlighted just how dire the situation has gotten for many individuals. A Texas man, Ricardo Gonzalez Jurado, faced aggressive debt collection efforts from Brooke Army Medical Center (BAMC), a trauma center where he received treatment after sustaining significant injuries on a work site. Gonzalez Jurado did not have the funds to pay his bills in full, so he began a payment plan with the hospital. He kept to the payment plan and even agreed to pay more after the hospital requested higher payments. He later received a letter from BAMC after some time stating that his balance had been paid in full even though he had only paid a portion of the bill at that point. Despite trying to reach the hospital and continuing to send in his payments, BAMC returned his monthly checks.

Debt Collection, Debt Relief

5 Disclosures You Should Never Make to a Debt Collector

In life, honesty is always the best policy, but not when it comes to communicating with a debt collector. In fact, it is best to use caution when making any statements to a debt collector, as they could be recorded and used against a person later. By no means should the consumer lie to the debt collector, but he or she should at least use reasonable care when talking with someone who is collecting a debt.

It is important to be aware of the tactics that many debt collectors will use to get you to pay on a debt. They often will resort to scare tactics or bullying to put the individual in fear of losing his or her home or livelihood if he or she does not pay on the debt. One key piece of advice is to know that all consumers have rights under the Fair Debt Collection Practices Act (FDCPA).