Timothy Kingcade Posts

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

Student Loans Vs. Other Debt: Find your Most Powerful Debt Payoff Strategy

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Many Americans struggle when trying to prioritize which debts to pay off first. Here is a helpful guide for deciding when to prioritize paying off student loans before other debts.

4 Reasons You Should Pay Down Your Student Loan Debt First

  1. You have high student loan rates. If your student loans have the highest interest rate of all your debt, that is where you should begin. You may also want to explore refinancing your student loans if you qualify for a lower rate.
  2. Your student loans have a small balance. Paying off your student loan with a small balance first is called the debt snowball method. This method allows you to see results and to stay motivated to keep up with your payoff plan.
  3. You have private student loans. Private student loans are considered “riskier” forms of debt than federal loans, which is why you should pay them off sooner rather than later. The reason they are riskier is because they do not offer the same repayment protections and options as federal loans, such as income-based repayment plans.
  4. You are close to defaulting on your student loans or declaring bankruptcy. Defaulting on a federal loan can lead to wage garnishment much more quickly than if you are not making credit card payments. Therefore, if you are struggling with student loan debt, make it a priority to make those payments first.

 

5 Reasons You Should Pay Down Other Debts First

  1. You are following the debt snowball method. The debt snowball method may lead to you paying off student loans first, however; it may also lead you to target other debts with higher interest rates or lower balances first.
  2. You value federal loan protections. Federal student loans offer repayment options and other protections that other types of debts do not offer.
  3. You hope to qualify for the Public Service Loan Forgiveness program (PSLF). The PSLF is slated to forgive federal student debt for more than 550,000 Americans, according to the Washington Post. Any balance remaining after 10 years will be forgiven to eligible borrowers. The more you pay on this debt, the less you will be left for the government to forgive.
  4. You want to improve your credit. Decreasing your debt is a good way to improve your credit score. However, certain types of debt will increase your score faster than others. Higher balances on revolving debt will give you a higher utilization ratio – which can damage your credit. If you have your credit cards maxed out, you should target this debt first.
  5. You want to claim interest tax deductions. When considering which debt to prioritize, it can help to consider the potential tax benefits you can claim. Most consumer debt cannot be claimed as a tax write-off, but student loan debt and home mortgages are exceptions.

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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

How to Handle Debt Collectors When They Call

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Receiving a call from a debt collector can be stressful, especially if you are tight on money. However, sometimes collection agencies have the wrong contact information or may be trying to collect on a fake debt. Collection agencies may also use aggressive tactics to scare you into paying a debt. Here are some tips from the Better Business Bureau to help you respond to debt collectors correctly.

Your rights under the Fair Debt Collection Practices Act:

  • Debt collectors are required by law to provide information in writing. If you are contacted by a debt collector, ask to be provided with an official “validation notice” of the debt.
  • You must respond in writing within thirty days of receiving the debt notice to avoid further action by the collector. If you have proof that the debt has been paid, provide that as well.
  • A debt collector must prove that you owe the money before they can try to collect if you dispute the debt in writing within 30 days.
  • They cannot harass, oppress or abuse you. They are prohibited from swearing at you or calling repeatedly.
  • They cannot contact you at work if you tell them not to do so.
  • They cannot continue to call if you request, in writing, that they only communicate with you by mail.
  • They cannot collect a debt that you do not owe.

Click here to read more on this story.

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, Student Loans, Timothy Kingcade Posts

Credit Card Debt a Growing Concern for College Students

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A recent study conducted by Nellie Mae, the nation’s leading student finance firm, revealed that the average undergraduate carries a credit card balance of $2,169.  According to the study, many students use their credit cards without knowing how the bills will even be paid off.  It also showed that many students used credit cards to pay for tuition and books, instead of federal student loans that offer lower interest rates.

Four out of five college students amass nearly $1,000 a year in credit card debt.  One cause of credit card debt is college students’ difficulty in adjusting to their newfound financial freedom.  Parents and students need to come up with a budget for credit card spending before their child leaves for college.  Make sure your college student knows not to use money they do not have, even for a one-time purchase.

Use resources available to keep them on the right path.  You and your college student should sign-up for overdraft alerts on all accounts. Online alerts and apps on your Smartphone can help with this.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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.fastweb.com/personal-finance/articles/dealing-with-credit-card-debt

http://www.nbcdfw.com/news/local/Credit-card-debt-a-mounting-concern-for-college-students-441338263.html

Bankruptcy Law, Credit, Student Loans, Timothy Kingcade Posts

Student Loan Servicer Accused of Mismanaging Debt Forgiveness Program

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According to a lawsuit filed by the attorney general of Massachusetts, one of the country’s biggest servicers of federal student loans has mismanaged its debt forgiveness program, raising repayment costs for hundreds of thousands of borrowers who work in public service jobs.

The loan servicer, FedLoan, has made numerous errors, potentially keeping many students in debt far longer than they expected, according to Maura Healey, the Massachusetts attorney general.

The company’s actions have jeopardized the financial futures of teachers and public servants nationwide. Consumer watchdogs and government officials have raised concern with the government’s public service loan forgiveness program, which promises qualifying workers — including teachers, librarians, police officers and doctors and nurses — forgiveness of their remaining federal student loans in return for a decade of full-time service.

Approximately 612,000 borrowers have signed up for the loan forgiveness program and submitted at least one approved certification, according to data from the Education Department.  However, many of the borrowers are concerned about how many of their monthly payments will be counted — or even if the certification itself will be revoked.

The Education Department said that the approval notices the company sends to borrowers seeking certification are not binding and can be rescinded by the department at any time. Four of those borrowers whose approvals were withdrawn are in continuing litigation with the department.  The Education Department says their student loan debt forgiveness was in error.

Click here to read more on this story.

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.

Foreclosures, Timothy Kingcade Posts

More Seniors Taking Out Loans Against Their Homes – But at What Cost?

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An increasing number of seniors facing foreclosure are opting to take out reverse mortgages on their property, according to recent federal data.  A reverse mortgage allows cash-strapped seniors to borrow against the equity in their home that has built up over the decades- but it also comes with financial risk.  Property owners are still responsible for keeping up with other charges, including the taxes and insurance on the property.

A HUD report issued last fall found that nearly 90,000 reverse mortgage loans held by seniors were at least 12 months behind in payment of taxes and insurance and were expected to end in “involuntary termination” in 2017.  That is more than double the number the year before.

More than 18 percent of reverse mortgage loans taken out from 2009 to June 2016 are expected to go into default because of unpaid taxes and insurance, according to the HUD report.

The federal Consumer Finance Protection Bureau has warned seniors about deceptive advertising practices when it comes to reverse mortgages.  Last year, the federal agency fined three companies — American Advisors Group, Reverse Mortgage Solutions and Aegean Financial — for alleged false claims, misleading seniors to believe that if they took out a reverse mortgage they would not have to make monthly payments or face foreclosure, leaving out the risks of failing to pay property charges.

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

6 Things Debt Collectors May Not Want You To Know

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If you have been contacted by a debt collector in the last year, you are not alone. Nearly a third of all U.S. consumers have reported being contacted by a creditor or debt collector about a debt. As a consumer, your rights are protected by the Fair Debt Collection Practices Act (FDCPA). Here are some key facts to know if a debt collector contacts you.

  1. You do not have to reveal personal information. Debt collectors might ask you for your Social Security number, date of birth or other information. However, you are not legally required to provide this information. Collectors should use the information they already have available to them.
  2. You have a right to ask for details – and you can ask a debt collector not to contact you. You should always ask that they verify the accuracy of the debt. This means the collector must provide details of the debt when they speak to you, or in writing, within five days of the call. This allows you to confirm that you actually owe the amount. If the information is inaccurate, you have 30 days to dispute the debt.
  3. You can ask to have a settled debt removed from your credit reports. If you pay off an account in collections in full, it will not erase it from your credit reports right away. In fact, it will remain on your reports for seven years. However, if you negotiate with the debt collector to settle the debt, you can ask to have that debt removed from your credit reports.
  4. Debts have a statute of limitations. State laws determine how long a creditor has to collect an amount owed to them. The time period ranges from two to six years. After this time, you still owe the debt, however; creditors can no longer come after you to collect it. This type of debt is sometimes called zombie debt or time-barred debt.
  5. You can file a complaint. If you believe a debt collector is acting unethically or has violated your rights as a consumer, contact authorities. Some states have debt collection laws that differ from the FDCPA.

Click here to read more on this story.

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.

Debt Relief, Student Loans, Timothy Kingcade Posts

Student Loan Debt Impact on Older Americans

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Student loan debt is not just a problem for younger Americans; a new study shows older Americans are shouldering an increasing share of the nation’s $1.34 trillion student loan debt.

A new report released by FICO showed the percentage of Americans ages 65 and older with student loan debt increased 300 percent from 2006 to 2016. This jump is three times higher than the increase in student loan debt seen in Americans ages 35-64. The trend is expected to continue increasing as the population ages and older employees turn to workforce retraining programs to learn new labor skills.

The report also showed that the age group with the highest amount of student loan delinquencies is Americans aged 25-34, with a default rate of 25.1 percent. However, older Americans are also having a more difficult time repaying their debts. Delinquencies for Americans ages 65 and older were 13.5 percent last year, which is an increase of 3.6 percent from the prior decade.

Click here to read more on this story.

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.

Credit, Debt Relief, Timothy Kingcade Posts

Law Firm Faces Debt Collection Lawsuit

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On August 18th, a federal appeals court reinstated a Fair Debt Collection Practices Act (FDCPA) lawsuit against a law firm that misstated the principal and interest due on a credit card loan in a collection effort.

The FDCPA prohibits debt collectors from making false statements when collecting debts. It also states that any such false statement would be considered “material.” However, the FDCPA does not specifically define the term “material.” As a result, the U.S. Court of Appeals for the Ninth Circuit focused on that question when issuing a ruling in the case of Afewerki v. Anaya Law Group. The lawsuit came after the Anaya Law Group of Westlake Village, California attempted to collect on a debt from Robel Afewerki, who owed $26,916.08 on a loan with a 9.65 percent interest rate.

The Anaya Law Group sued Afewerki in state court, stating that he owed $29,916.08, which is $3,000 higher than the loan. The firm also misstated the interested rate, saying that it was 9.965 percent, which is 0.315 percent higher than the rate. Afewerki sued the firm under the FDCPA, but a district court held for the firm on summary judgment, said the misstatements were not material.

The Ninth Circuit Court disagreed and vacated that ruling, saying the misstatements were material based on how the “least sophisticated debtor” might react to the misstatements. The court said the least sophisticated debtor in Afewerki’s position, “may well have simply paid the amount demanded in the complaint and would have overpaid by approximately $3,000.”

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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

Top Debt Mistakes to Avoid

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From credit cards to car loans, there are many ways to get in over your head with debt.  Here are some common debt mistakes to avoid.

  1. Credit card debt. Avoid this at all costs- if you can.  Most of these cards come with high interest rates, so any remaining debt at the end of the month increases daily.  Make sure you are only using credit cards on items you can (and will) pay off each month.
  2. Amassing bad debt. Borrowing money should be something you do as an investment in your future.  Student loan debt and a mortgage loan are examples.  In contrast, “bad debt” is money you borrow for purchases that decrease in value.
  3. Paying late. Constant late payments or missing payments can cost you penalties and lower your credit score. If you struggle to remember your payments, take advantage of automatic payments.
  4. Paying only the minimum. Making minimum payments on your credit card is tempting, but it will ultimately cost you more money due to the loan debt interest rate.
  5. Not budgeting. The only way to get out of debt is to stop living beyond your means, and the only way to stop living beyond your means is to stick to a strict budget.
  6. Ignoring your lender.  Lenders want their money, and they want you to be able to pay it- even if that means settling for less. Do not ignore their calls.  If you cannot afford to pay, tell them.  Never promise to pay or give your bank account information if you cannot afford to pay.  Chances are, a simple conversation will lead to a solution, whether that is a lower interest rate or a simple payment plan.

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If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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, Debt Relief, Student Loans, Timothy Kingcade Posts

The Costs of Deferring Your Student Loans

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Many Americans are struggling to pay back their student loans.  According to a recent study, 30 percent of direct loans are in deferment.  When a borrower defers a student loan, temporarily suspending repayment due to unemployment or other financial hardship- the interest on the loan continues to accrue.  If no payments are made during the deferment period, the interest will capitalize and be added to the total amount of the loan.

Interest rates are expected to rise in 2018.  Undergrads will pay 4.45 percent on loans distributed from July 1, 2017 to June 30, 2018, which is up from 3.76 last year. There are limited time frames for how long a loan can be in deferment.  Deferring your student loans can also eliminate your eligibility for certain public forgiveness programs.

Deferring your student loans can be costly.  Here are some alternatives:

  • Utilize income-driven repayment plans offered by your lender;
  • Refinance your student loans;
  • See if your employer offers loan assistance to employees;
  • Forbearance, which suspends student loan payments is typically at the loan holder’s discretion. These specific qualifications are detailed on the government’s Federal Student Aid

Click here to read more on this story.

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.