Debt Relief

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

How to Manage Credit Card Debt After Losing a Job

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Many South Floridians are finding themselves out of work due to the coronavirus (COVID-19) pandemic. This loss of income can be devastating and make it difficult to continue paying monthly expenses, including credit card debt.

Before the crisis hit, credit card debt had reached an all-time high after the Federal Reserve reported that the fourth-quarter of 2019 credit card debt increased by $46 billion to $930 billion nationwide. It is expected that balances will only increase as Americans find themselves shut in with limited income being earned. Additionally, serious delinquencies were on the rise at the end of 2019, and these numbers are also expected to trend upward, specifically for consumers between the ages of 18 and 29.

Bankruptcy Law, COVID-19, Debt Relief

Unemployment Skyrockets as a Record Number of Bankruptcies Anticipated

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The coronavirus (COVID-19) crisis has hit the American economy hard, which is evident in the number of unemployment claims being filed. It has been reported that approximately 17 million American workers have filed for unemployment over the course of three weeks after many businesses have shuttered.

Research from three different Federal Reserve banks have shown that bankruptcies related to the economic downturn from the COVID-19 crisis could increase by 200,000 to reach a record 1 million filings. However, this increase is possible only if government stimulus programs do not offset this increase.

Coronavirus, COVID-19, Debt Relief

Tips for Dealing with Debt During the Coronavirus

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The coronavirus (COVID-19) crisis has hit South Floridians hard. With stay at home orders issued, many are finding themselves out of work and stuck at home. Many have lost their jobs due to temporary or even permanent layoffs. Without a reliable source of income, these individuals may find themselves struggling to pay their bills. The following tips can help consumers manage their debt during this difficult time.

Federal Student Loan Payments

Under the federal Coronavirus Aid, Relief and Economic Security Act or CARES Act, which was signed into law by President Trump on March 27, 2020, federal student loan payments held by the U.S. Department of Education will be suspended for a period of six months with no interest accruing until September 30, 2020. This payment suspension occurs automatically and does not need to be requested by the individual.

Coronavirus, COVID-19, Debt Relief

How to Receive Financial Help During the COVID-19 Crisis

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The coronavirus (COVID-19) has hit our nation’s economy hard, with many Americans finding themselves suddenly out of work.  Countless small businesses have had to close their doors due to the spread of the coronavirus. Financial assistance is available during the COVID-19 crisis.

A record number of American workers filed for unemployment last week, which totaled 3.28 million people. The biggest form of financial help comes in the form of a recent $2.2 trillion stimulus package passed by Congress just last week. President Trump signed the stimulus bill into law on March 27, 2020.

Bankruptcy Law, Credit Card Debt, Debt Collection, Debt Relief

Tips for Gen. X’ers Battling Credit Card Debt

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Credit card debt is a problem that countless consumers struggle with. But according to recent data provided by Experian, Gen X consumers carry more credit card debt than any other generation.

Experian’s data showed that Gen X holds the highest average credit card balances at $8,658. As members of Gen X approach middle age, many of them raising families, they are also struggling to pay down credit card debt they have been holding since their 20s.

Coronavirus, COVID-19, Debt Collection, Debt Relief

Debt Collectors Argue They are ‘Essential’ to Consumer Financial Health During COVID-19 Shutdown

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The coronavirus (COVID-19) has hit American consumers hard, putting many of them temporarily out of work. Relief efforts have been made on a state-by-state basis to assist consumers.

New York residents have been given a 30-day freeze period from state-owned medical debt and student loan debt collections. Another similar announcement came from the mayor of Chicago with respect to city debt through April 30, 2020.  The Department of Education has suspended collections on federal student loans, and they are encouraging private student lenders to do the same.

Credit Card Debt, Debt Relief

Understanding the Difference Between Good and Bad Debt

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Debt can oftentimes come with a negative connotation, but not all consumer debt is created equal. In fact, some types of debt are better than others. It is important for consumers to know the difference between the two types before taking on additional debt.

Good debt, for the most part, is debt that is used to help a consumer pay for goals or purchases that will enhance his or her overall wealth. Debt in this category includes mortgages and student loan debt, as well as small business loans. These types of debt tend to carry low interest rates and are tax deductible. Good debt is associated with a piece of property or collateral to guarantee the debt, although that is not always the case, such as with student loans.

Debt Collection, Debt Relief

What Rights Do Consumers Have When it Comes to Debt?

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When someone is in debt, he or she may feel trapped with nowhere to turn. According to Northwestern Mutual’s 2018 Planning & Progress Study, the average American consumer has $38,000 in debt, not including their mortgage.

As soon as creditors or debt collectors begin contacting the consumer regarding what he or she owes, the person may feel like he or she has no choice but to do whatever is being demanded of him or her. However, most consumers do not realize that they do, in fact, have rights when it comes to debt they owe. It helps to know what these rights are when debt collectors or creditors come calling.

Debt Collection, Debt Relief

Tips for Getting Your Debt Out of Collections

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Getting out of debt can seem like a never-ending battle. Once someone falls behind on one or more bill payments, the debt collector calls can be relentless. The late fees and penalties that are often assessed on past-due accounts, not to mention the interest rate spikes that come along with missing a payment, can make getting back on one’s feet nearly impossible. There are certain steps that can help consumers who are facing these types of situations get out of debt and stay out.

Remain Calm.

It can be easy to react out of stress or panic and make decisions that someone would not normally have made, especially when dealing with debt collectors. It is important that whatever decisions are made by the consumer are ones that are carefully considered and logical. Many consumers may react out of fear and enter into payment agreements that they would not normally agree with and cannot realistically afford just to get the debt collector to back down. The aggressive techniques used by many debt collectors have this motive in mind. Make sure you understand and get the terms in writing, first. Never agree immediately to a payment arrangement over the phone with a debt collector.

Debt Collection, Debt Relief

The Adverse Effects Debt Has on Mental Health

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Carrying any amount of debt can be stressful, but when an individual is carrying a sizeable amount of debt, the effect that debt has on the individual’s well-being can be detrimental. According to a 2017 study published by the Journal of Consumer Research, the likelihood that an individual struggling to handle his or her debt will end up with a mental health issue is three times higher when compared to someone who does not have debt.

One major reason someone struggling with debt may suffer emotionally has a lot to do with the fact that most people keep their feelings regarding debt to themselves and internalize the problem. However, the problem is, keeping these emotional struggles to oneself will only lead to more stress on that person’s mental health, leading to even worse problems, including depression and anxiety.