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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Top Debt Mistakes to Avoid

Posted on August 18, 2017by Admin

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.

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.
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.
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.
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.
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.
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

Posted on August 17, 2017by Admin

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

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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

Record High Credit Card Debt Exceeds Previous Numbers Set Prior to the 2008 Recession

Posted on August 16, 2017by Admin

U.S. credit card debt is just over $1 trillion, exceeding the previous high set in April 2008 right before the Great Recession. The average amount of credit card debt per household is $9,600. That equals about 17% of the average U.S. household income. Since the average interest rate on a credit card is 16%, and about 24% for those with “less than perfect” credit, that debt grows between $1,600 and $2,300 each year.

A recent survey found millennials’ knowledge on credit card use troubling. A few millennials (6%) actually believe that missing a credit card payment would “improve” their credit rating. 17% said missing a card payment would have no effect on their score. Some 36% have maxed out credit cards and 48% carry card balances over to the next month, paying high interest rates and other monthly fees.

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Debt Relief, Foreclosures, Timothy Kingcade Posts

New HUD Budget Wording Threatens Reverse Mortgage Protections

Posted on August 15, 2017by Admin

A slight change to the wording in a proposed HUD budget request could lessen the protections of reverse mortgages and increase the risk of foreclosure for some elderly homeowners. The wording change affects 2-year-old provisions in federal housing rules that award certain rights and protections to the spouse of a borrower who takes out a reverse mortgage and later dies.

This wording change could increase the chances that the surviving spouse who did not sign the documents could lose their home in foreclosure.

Senators Marco Rubio (R.-Fla.) and Catherine Cortez Masto (D.-Nev.) sent a joint letter to Ben Carson, the secretary of the Department of Housing and Urban Development, and Mick Mulvaney, director of the Office of Management and the Budget, seeking clarity on the proposed wording in the budget request and asking whether the agency was seeking to reverse the earlier policy change.

The fact that there has been no response from HUD raises concern. Before this change in policy two years ago, a surviving spouse who had not signed the mortgage document often had to pay what was left on the loan in full or was at risk of being evicted, due to the home going into foreclosure.

In the letter to the Department of Housing and Urban Development, the senators referred to the old policy as a “loophole” that had “compounded the stress faced by widows and widowers at a time when they were already grieving the loss of their spouse.”

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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.

Credit, Debt Relief, Timothy Kingcade Posts

Wells Fargo Latest Lawsuit Involves Customer Car Loans

Posted on August 14, 2017by Admin

After settling one class action lawsuit involving the exploitation of customers by opening bogus credit card and savings accounts to meet sales goals, Wells Fargo faces another lawsuit involving its auto lending business and unnecessary auto insurance policies.

A borrower who financed an automobile in February 2016 through Wells Fargo filed a lawsuit in U.S. District Court in San Francisco on Sunday, July 30, claiming he was charged for insurance he did not need and is seeking class-action status to represent all U.S. borrowers in the same situation.

After more customer complaints, an internal investigation revealed that some 490,000 customers were charged for auto insurance they did not need and an additional 60,000 customers in states with specific disclosure requirements may not have been told about the insurance by the third-party vendor that issued it.

The loan contracts required customers to maintain auto insurance and allowed Wells Fargo to purchase it for them if the customer did not have insurance with another company. Some 20,000 customers may have defaulted on loans and had their cars repossessed because of the additional charges, the bank said.

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Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

How do you know if it’s the IRS Contacting You?

Posted on August 11, 2017by Admin

When the IRS contacts you, their first form of communication is through the U.S. Postal Service. The IRS will NEVER initiate contact though email, social media or text messages.

Here are some additional ways the IRS will contact tax payers. It is important to be aware of these so you do not fall victim to an IRS-related scam.

An IRS agent or tax compliance officer may call you after mailing a notice to confirm an appointment or discuss an item for a scheduled audit;
Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities- but only after the taxpayer and their representative has received written notice;
Private debt collectors for the IRS must respect taxpayers’ rights and abide by the consumer protection provisions of the Fair Debt Collection Practices Act (FDCPA).

All payments should be made to the U.S. Treasury. Taxpayers should never use a prepaid debit card or wire transfer to make a payment. Specific guidelines to make tax payments can be found at irs.gov/payments.

IRS employees will NEVER:

Be hostile or insulting;
Demand payment without giving taxpayers the opportunity to question or appeal the amount;
Require a specific payment method (i.e. – a prepaid debit card);
Threaten lawsuits, arrest or deportation for not paying;
Request credit or debit card numbers over the phone.

A special page on IRS.gov, “How to know it’s really the IRS calling or knocking on your door,” helps taxpayers determine if a person claiming to be from the IRS is legitimate or a scammer.

Related Resources:

http://www.examiner-enterprise.com/business/20170806/how-do-you-know-when-irs-is-contacting-you

Bankruptcy Law, Debt Relief, Timothy Kingcade Posts

Senate Approves Legislation to Fight Scammers who Target the Elderly

Posted on August 10, 2017by Admin

A new law protecting seniors, The Seniors Fraud Prevention Act, passed unanimously and strengthens the federal reporting system for fraud complaints and requires the FTC to monitor fraud schemes targeting seniors.

This story and thousands more like it prompted the new law:

A Duluth elderly mother had picked up the phone to happy news. She had won the lottery- $2.5 million and a new Mercedes! But before she could claim her prize, the contest organizers needed something from her. You can probably guess what it was. In a matter of days, the phone scammers had defrauded the 82-year-old woman out of $47,000, forcing her into bankruptcy.

Seniors are extremely vulnerable and face a constant influx of lies and scams to their mail boxes, inboxes even their phones. These phony contests, fraudulent charities, fake investment opportunities, even scams involving their supposed “grandchildren” who got in trouble overseas and need money wired to them, immediately- all attempt to drain seniors’ of their hard-earned life savings. A new fraud scheme targeting seniors appears almost daily, according to a fraud investigator for the AARP.

The Seniors Fraud Prevention Act of 2017 strengthens the federal reporting system for fraud complaints and requires the Federal Trade Commission to monitor the market for fraud schemes targeting seniors.

This bill directs the Federal Trade Commission (FTC) to establish an office within the Bureau of Consumer Protection to advise the FTC on the prevention of fraud targeting seniors and to assist the FTC in monitoring the market for mail, television, Internet, telemarketing, and recorded message telephone call (robocall) fraud targeting seniors.

The office must: (1) disseminate to seniors and their families and caregivers information on the most common fraud schemes, including methods of reporting complaints either to the FTC’s national toll-free telephone number or to the FTC’s Consumer Sentinel Network, where complaints become immediately available to the Federal Bureau of Investigation, state attorneys general, and other appropriate law enforcement agencies; (2) provide, in response to a specific request about a particular entity or individual, publicly available information regarding the FTC’s enforcement action; and (3) maintain a website as a resource for information on fraud targeting seniors.

Related Resources:

http://www.startribune.com/senate-signs-off-on-legislation-to-fight-scammers-who-target-the-elderly/438744333/

https://www.congress.gov/bill/115th-congress/senate-bill/81

Credit, Debt Relief, Foreclosures, Timothy Kingcade Posts

New Underwriting Rules Make it Easier to Obtain a Mortgage with Student Loan Debt

Posted on August 9, 2017by Admin

If you are struggling with student loan debt the prospect of ever qualifying for a mortgage may seem out of reach. However, last week changes made to underwriting rules by Fannie Mae could make easier for borrowers with student loan debt to obtain a mortgage.

The new rule impacts borrowers with federal student loan debt who are currently enrolled in income-driven repayment plans. An income-driven repayment plan sets your monthly student loan payment at an amount that is affordable based on your income and family size. Your monthly payments could be capped at 10% of your income. If your discretionary income is low enough, your monthly payment could be as low as $0.

In order to qualify for the mortgage, a borrower must meet certain debt-to-income (DTI) requirements.

A statement from Fannie Mae says that reduced payment can be used, even when the payment is $0. According to Fannie Mae, “if the lender obtains documentation to evidence the actual monthly payment is $0, the lender may qualify the borrower with the $0 payment as long as the $0 payment is associated with an income-driven repayment plan.”

These new changes will allow more borrowers to qualify for a home, but there are exceptions. These rules do not apply to all mortgages, and are specific to “agency-backed” mortgages that represent more than half of the mortgage market. The changes do not apply to borrowers with private student loans. As a general rule, student loan borrowers should max out federal loans before considering private loans.

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Uncategorized

Memories From The Last Summer

Posted on August 8, 2017by Admin

My first true love happened when I was a student at Shaw University in Raleigh NC and I must say it was a wonderful experience. She was a freshman, and she was so beautiful with caramel skin and soft dark eyes.

She had a sweet slim frame and curves of a finely chiseled piece of clay. Everybody knew her government name, but, eventually they knew her by the name I affectionately called her by, “Blue”.

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

Student Loan Mistakes to Avoid in your 20’s

Posted on August 8, 2017by Admin

Student loan debt can feel like a dark cloud hanging over your future- particularly if you just graduated college and may not have landed your “dream job,” yet. Here are some mistakes to avoid early on when paying back your student loan debt.

You wait until the end of the grace period to begin making payments. Upon graduation, your lender will likely give you a grace period of six months to start paying back your debt. Nice of them, right? Wrong. On the contrary this is a trap. Most student loan debt begins accruing interest immediately upon graduation.
You ignore the auto pay option. Automatic payments will deduct the amount directly from your checking account, ensuring you do not incur late fees or penalties. Most loan providers will also give you a 0.25 percentage discount if you do this.
You fail to plan. It is important to strategize- particularly if you have multiple student loans with different lenders and different interest rates. The way you pay these off can make a big difference in how much interest you will pay in the long run.
You do not consolidate your federal loans and refinance private loans. If monthly payments are too much for you, look into whether you qualify for an income-based repayment plan. Consider consolidating federal loans into a federal direct consolidation loan and refinancing your private loans.
You do not make your student loan debt a priority. Financial experts advise to first prioritize your company’s 401(k) match program. Second, work to establish an emergency fund that will cover your living expenses for at least three months. Repaying your student loan debt should be at the top of this list.

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