Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Taking on multiple sources of debt is a balancing act and it’s easy to become overwhelmed. The first thing you should do when considering taking out another loan is to determine your total monthly payments for current outstanding debt and the amount you are looking to borrow. Next, figure what percentage of your monthly income will go towards paying off that debt.

It is recommended that no more than 30% of your take-home pay go toward housing costs and no more than 20% go toward servicing other debt, such as car loans and credit cards. If you exceed these percentages, you could find yourself easily overwhelmed with debt.

Before taking out another loan, experts suggest having a repayment plan in place. Some borrowers find it motivating to pay extra towards the smallest loan in order to quickly eliminate it. If you already have a car loan or credit card payments, before taking on additional debt, you may want to consider refinancing the loan or getting a lower interest rate balance transfer credit card. You can then pay down the principle of the higher rate credit card faster if you transfer the balance to a lower interest rate credit card, provided you continue to make the same monthly payment.

Click here to read more on how to manage multiple sources of debt.

If you are in a financial crisis and are considering filing 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.

For parents with kids heading off to college in the next few years, it’s not too late to implement these last minute savings tips.

1.) Compromise on School. Parents and children should have open and honest conversations and make their school choice based on learning needs and career ambitions, not name recognition.

2.) Take Advantage of Government Loans. Every family should take advantage of government education loans. According to Bill Harris, founder of online wealth management company Personal Capital, there is no “means testing” with the Stafford Loan, which means a family making $200,000 and one making $40,000 are both eligible.

3.) Invest in a 529-College Savings Plan. The earlier parents start funding a 529-college savings plan, which is a tax advantaged way to save for the college, the better, but it’s never too late to start. Many states give tax deductions for contributing to a 529-plan.

4.) Take advantage of American Opportunity Tax Credit. Families with an overall income under $160,000 per year, or $80,000 for single filers, can qualify for a tax credit of up to $2,500 during the first four years of a child’s college education. This tax credit includes expenses for things like books, supplies and equipment that aren’t necessarily paid to the college or university.

5.) Move Assets out of a Child’s Name. Many parents open savings accounts in their children’s name, which is a great way to build a nest egg, but it can have a negative impact when it comes to paying for college. When determining eligibility for federal financial aid, 20% of any assets under the child’s name will count against him or her in the amount of aid offered.

6.) Explore Alternative Loan Types. Most private loans from a bank of credit union have higher costs and higher rates of interest. Instead, consider peer-to-peer lenders to see if they offer a lower fixed rate and always check with the financial aid department at your college to see what kind of tuition assistance is offered.

Click here to read more on last minute college savings tips for parents.

If you are in a financial crisis and are considering filing 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.

It is important to keep your credit score high. A good credit score can earn you low mortgage and refinancing rates, more negotiating power and increased credit limits. But even financial behaviors that do not directly affect your credit score can be a red flag that you are headed towards serious financial problems.

Here are five red flags that will not show up on your credit report:

1.)Taking out payday loans. Resist the urge to take out a payday loan. This can be toxic to your finances and a red flag that you are off track financially. You should resist the temptation no matter how tough your situation seems because the high interest rates and payment terms typically put people even further in debt.

2.) Fighting with your spouse about money. People often ignore this sign because they think it is a sign of marital issues, not financial issues. But arguing about money typically means that you are not on the same page with your spouse on financial issues. The deeper you get into financial trouble, the more people find themselves fighting with their spouse about how to spend money and how to get out of debt.

3.) Paying household bills with your home equity loan or line of credit. While paying your household bills with home equity money will not show up on your credit report, it is typically a sign that you are running out of options to pay your bills. ‘Revolving debt is unsecured, so it is very risky to borrow against a secured loan, such as your mortgage.’

4.) Bouncing Checks. If you are routinely overdrawing your bank account or bouncing checks, then you are most likely either not able to manage your finances or are in serious debt. While bouncing checks does not directly show up on your credit report, overdrawn accounts can result in a negative check writing history report.

5.) Tapping into your retirement fund. In addition to the early withdrawal penalties, you are costing yourself the compound interest you would have earned by leaving the money in the account.

Click here to read more on the 5 warning signs that you could be headed toward financial hardship.

If you are in a financial crisis and are considering filing 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.

The month of June continues to be regarded as the most popular month for tying the knot. With that being said, there are important steps you need to take before walking down the aisle in order to avoid fighting over finances. Couples need to first understand each other’s attitudes and concerns about money and then concentrate on the strategies and tools they will use to organize their financial affairs.

1.) Have a pre-wedding financial discussion: Share past money management experiences, and be honest. Discuss where you want to be financially in five, 10, and 20 years and express any fears you might have associated with money and brainstorm ways those fears could be alleviated.
2.) List your financial goals: this is a way to find out what is important to each of you. Rank the items on the list according to importance so that when the lists are compared and consolidated it will be easier to concentrate on the most important issues.
3.) Make a monthly budget: Many people cringe when they hear the word budget, but keep in mind you do not have to deny yourselves the things you love, just work them into the budget.

Money problems are one of the most significant factors that can lead to divorce.

Click here to read more on the financial steps you need to take before walking down the aisle.

If you are in a financial crisis and are considering filing 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.

Following a natural disaster, such as the recent Oklahoma tornados and California wildfires- not to forget Florida’s hurricane season, the last thing you want to think about is whether you have paid your Visa bill.

Putting such tasks on the back burner while you are focusing on more important issues such as temporary housing along with food and water can be devastating to your credit score. Just a few delinquent payments can ruin your credit score when you need access to credit the most.

Here are six ways to ensure that your old debts do not jeopardize your financial future:

1.) Get a copy of your credit report. By having a copy of your credit report before it reflects any financial impact resulting from the disaster, you can later make the case to a lender or someone else checking your credit that the disaster, not financial mismanagement, caused your low credit score. You can get a free credit report each year from each of the three big credit bureaus (Experian, Equifax and TransUnion) from AnnualCreditReport.com
2.) Create a post-disaster budget. While you’re waiting for a check from your insurance company, take a realistic look at your savings and any income that’s coming in. Once you have your post-disaster budget, you will know how much you have left to pay on your credit cards and other debts.
3.) Initiate contact with creditors. Once you know how much money you are working with, it’s time to reach out to your creditors. Sometimes when disasters occur, credit card companies will email their customers to let them know they are aware of the disaster and will waive late fees that month for those who have been affected.
4.) Document all conversations. When contacting your creditors, be prepared to tell them how the disaster affected you, how long you think your ability to pay will be impacted and how much you can afford to put toward your bill. Keep a detailed record of the conversation, knowing who you talked to, what they promised and when the phone call took place.
5.) Explain the disaster’s effects on your credit reports. As you are recovering financially from a disaster, you can add a 100 word statement to your credit report explaining that you experienced a natural disaster and it caused your credit to suffer.
6.) Look for long-term recovery funding. Your insurance policies and government assistance may help you rebuild your home or possibly replace your car, but you may have to seek additional resources to help you pay for other debt obligations, particularly if you lost your job following the natural disaster.

Click here to read more about the six ways you can protect your credit following a natural disaster.

If you are in a financial crisis and are considering filing 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.

Thanks to the Credit Card Act of 2009, cardholders are getting hit with fewer penalty fees and surprise interest rate hikes. However, according to a recent news story, a sequel to the Credit Card Accountability, Responsibility and Disclosure Act of 2009 could be in the works as regulators sort through a fresh batch of complaints. Regulators at the Consumer Financial Protection Bureau collected the comments earlier this year about the post-CARD Act environment. The CFPB plans to issue a study in coming months that will look at the law’s impact on the availability of credit, and at how card issuers’ practices are affecting consumers.

Several groups pointed at deferred interest cards as the most dangerous trap lying in wait for unwary borrowers. Deferred interest cards allow people to purchase appliances, furniture and other expenditures they cannot pay for upfront without accruing the added interest. The delayed interest deals are also becoming popular with some doctors and dentists as a way for their patients to finance expensive medical procedures. These type cards are often the most dangerous traps for unwary borrowers, because these cards come with very complicated contracts. One unwary Denver resident told Consumers Union that she and her spouse wound up paying more than $1,000 in surprise interest on a deferred deal. Having made their first payment in October, the couple figured that the final payment on the one-year deferral would be due the following October — but that was a month late. As a result, they were charged the full year of accrued interest, which took a few more months of payments to erase.

Click here to read more on the new protections being proposed by regulators and consumer advocates when it comes to the Credit Card Act of 2009.

If you are in a financial crisis and are considering filing 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.