Debt Relief

Debt Relief

How Consumers Can Resolve Their Debts with the IRS

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Tax season is not always a happy time for everyone. While many consumers look forward to filing their tax returns to obtain their tax refunds, others are left with balances they owe to the IRS in the form of tax debt.  The good news is relief options are available when dealing with the IRS.

Tax debt relief is available to individuals who owe the IRS money but are not able to pay on their debts. If a taxpayer anticipates having to pay any amount in taxes, it is important that he or she first determines how much that amount will be. It is best to first file your taxes to determine what the amount owed will be.

Credit Card Debt, Debt Relief

Debt Among Older Americans Reaches Record High Levels

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American seniors have seen their debt levels increase significantly over the past two decades.  It is estimated that the total debt load carried by American consumers over the age of 70 years old increased by 543% between 1999 and 2019. It now stands at a record high of $1.1 trillion, according to the Federal Reserve Bank of New York.

Individuals who were in their 60s saw their debt increase by 471%, bringing their total debt load to $2.14 trillion. Seniors were not the only group who saw large increases in their debt, but these two age groups saw the largest increases.

Debt Relief, Medical Debt

How Coronavirus (COVID-19) Testing Could Trigger Medical Debt

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The coronavirus has many people worrying about what will happen if they contract the virus. Now that the virus has spread to parts of the U.S., Americans are concerned about whether they should get tested for the coronavirus if they experience flu-like symptoms. Since this virus is relatively new and not completely understood, its testing may not be covered by private health insurance. Out-of-pocket medical costs can cost patients thousands of dollars, if the testing is not covered under their health insurance plan.

Florida businessman, Osmel Martinez Azcue reported experiencing flu-like symptoms after he returned from a trip to China in January. When he began experiencing the symptoms, Azcue went to the hospital to be tested for the virus. One of the tests he was offered at the hospital was a CT scan, which is one of the best methods used to detect the virus. He first went with the simple flu test to rule out the possibility that he was suffering from the common flu, which fortunately is what it turned out to be.  For him, the CT scan was not necessary.

Credit Card Debt, Debt Collection, Debt Relief

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

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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

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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 Relief

U.S. Household Debt Jumps the Most in 12 Years

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The total amount of household debt carried by American consumers increased by $601 billion in 2019, according to recent figures from the Federal Reserve.  This increase represents the largest annual jump seen since before the 2007 financial crisis, according to officials at the New York Federal Reserve.

While total household debt has increased by $601 billion, the total amount outstanding has now reached $14 trillion for the first time. The last time the nation has seen national household debt grow this much was in 2007. At the time, household debt jumped by just over $1 trillion.

Debt Relief, student loan debt, Student Loans

An Alarming Number of Student Borrowers Have Made No Progress on their Loan Balances

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A disturbing number of student loan borrowers who began their repayment plans between 2010 and 2012 have made little to no progress towards reducing the principal balance owed on their student loans. According to a recent report from Moody’s Investor Services, 49 percent of student loan borrowers whose loan repayment plans began during that time have made no progress. Even worse, many of them have seen their balances grow.

This problem could be due to several factors, including poor job prospects and low salaries in their first jobs after graduation. Depending on the degree pursued by each borrower, it can be difficult, if not impossible, to find a viable job that will allow the borrower to make appropriate payments to pay down their student loan debt.

Credit Card Debt, Debt Relief

Tips for Paying Down Holiday Credit Card Debt

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Now that the holidays are over, consumers are about to receive a New Year’s “surprise” in the form of a credit card statement. Those who already had a substantial balance on their credit cards, the extra holiday spending has only added to those balances. According to a report from credit bureau, Experian, the average credit card balance has climbed to $6,629.

You are probably wondering the next steps to take to pay down holiday debt before the interest starts mounting. We recommend taking a realistic approach in paying down the balance over the course of the first quarter of the year. By calendaring and planning out the payments, the cardholder can visualize the end goal of paying off the debt.

Debt Relief

Growing Number of Personal Loans Could Mean Danger for U.S. Economy

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The rise in personal loan debt has financial experts worried. According to a recent study from Equifax, personal loans are up 10 percent from the previous year. In fact, all three major credit agencies report a double-digit increase in the use of personal loans over the past few months.

More often than before personal loans are being utilized by consumers looking to pay for unexpected or needed expenses. In fact, personal loan debt was reported as being the fastest growing category of consumer debt.

Debt Relief

‘Debt Crushing’ a Top Priority in 2020

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Becoming debt-free is a popular resolution in the New Year. As people are coming off the holidays, they often have larger credit card bills coming due. Approximately 7 in 10 people have at least one credit card.  More than half of the cardholders already in debt were willing to put gifts and holiday expenditures on credit cards, according to Creditcards.com.

Snowball or avalanche method

What is the best way to pay down debt?

The snowball method involves looking at all your debts and picking the one with the smallest balance. Ignore the interest rate and type of debt. Choose the smallest amount and put all your resources into paying that off. While doing so, keep up with the minimum payments on all your other debts. The theory is that aggressively attacking the smallest amount will allow the individual to see immediate results, which then kicks motivation into high gear.