Tag: Auto Loan Debt

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, Credit, Debt Relief, Student Loans

Over 44 Million People Affected by Student Loan Debt

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According to a survey by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, student loan debt affects more than 44 million borrowers, who owe about $1.3 trillion.

Student loan debt surpassed auto loan and credit card debt. However, mortgage debt remains higher than education debt.

The survey used data from 1,161 four-year colleges throughout the country and found that college students at in-state public schools paid an average of $20,090 in annual tuition for the 2016-2017 school year. This is up 2.6 percent from 2015-2016.

Despite these trends, the average amount of debt incurred by graduating students in the U.S. fell 1.5 percent to $27,975 last year.

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.

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

The New Shape of U.S. Household Debt

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Household debt in America has been reshaped in ways that could potentially affect how financial experts are able to help manage a consumer’s liabilities. The overall debt of U.S. households is $100 billion smaller than it was in 2008. According to the Federal Reserve Bank of New York, it also looks a lot different now than it did then.

Mortgage debt remains the largest debt burden. However, its share of household debt has declined along with that of credit card debt, while the share of student loan debt and auto loan debt has grown.

By the end of 2016, mortgage debt accounted for 71 percent of household debt, down from almost 79 percent in 2008. Student debt had more than doubled since 2008 and more than tripled since 2003 to 10.4 percent.

Auto loan debt had a 9.2 percent share at the end of 2016, which is approximately one-third larger than it was in 2008. All three types of debt had larger shares of households’ income than credit card debt.

All of this means that housing debt fell $1 billion from its peak in 2008 of $9 trillion, while student loan debt rose $700 billion and auto debt rose $350 billion.

Financial experts attribute the change in household debt to a change in the demographics of U.S. debt. Households that are headed by those 60 years old and older now account for just over 22 percent of outstanding U.S. debt, which is up from 16 percent in 2008.

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, Timothy Kingcade Posts

What happens to my car when I file for Chapter 7 bankruptcy?

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In most cases, when you file Chapter 7 bankruptcy you have the option to either keep your vehicle or surrender it to the lender.  If your vehicle is paid off, you will likely be able to keep it after filing for bankruptcy- as long as its value is below your state’s vehicle inspection amount.

If you are still making payments on the vehicle, you have two options: (1) you can return the car to the lender and assume no liability, or (2) you can keep the vehicle and continue making payments on it.

If you choose to keep your vehicle, you will have to prove to the court that it is in your best interest to do so.  Probably the easiest way to keep a vehicle that you still owe money on during in bankruptcy is through redemption.

With redemption, you pay the trustee the current value of the vehicle in one lump sum. This is a beneficial option for those who are underwater, because the filer only has to pay the current value of the car, even if the loan amount is greater.

For example, if you still owe $10,000 on your car loan, but the vehicle is only worth $6,000, if you pay $6,000 to redeem the car, you will not be responsible for the remaining loan balance.

If you are current on your payments, but cannot afford to redeem your vehicle, you can continue to make payments by entering into a reaffirmation agreement. The lender will then send you an agreement that may be similar to the original loan contract.

At this time, with the help of an experienced bankruptcy attorney, you may be able to negotiate a better deal. The lender knows that you have the option to surrender the car and assume zero liability. This usually gives them an incentive to at least get some money out of the car.

A hearing will then be scheduled to determine whether or not the reaffirmation agreement is in your best interest.  In making the decision, the judge will consider your income, the value of the car and the amount you still owe on the loan. This is important, because the whole point of filing for Chapter 7 bankruptcy is to eliminate the burden of debt.

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.autocreditexpress.com/blog/your-car-in-chapter-7-bankruptcy/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Tips to Quickly Pay Off Credit Card Debt

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In 2015, the average American had approximately $15,762 in consumer credit card debt and the United States as a whole had more than $733 billion. Credit card debt was the fourth largest type of debt in the country, following student loans, auto loans and mortgages. However, most consumers retain this debt for many years and end up racking up thousands of dollars in interest. This typically occurs because consumers prioritize other payments such as mortgage payments, student loan payments, hospital bills and car payments, and therefore only make the minimum credit card payments each month.

Below are some tips to help you quickly pay off $10,000 in credit card debt.

• Find out your total balance. The first thing you need to do is find out your total amount of debt, totaling all of your consumer credit cards.

• Stop the interest. The next thing you need to do is look for a card that is offering a long lasting “0% intro APR balance transfer” promotion. Next, transfer your balance to this card. If you have more than one card with a balance, try to consolidate all of your credit card balances to the same card offering 0% interest. In many cases, interest accounts for as much as 75% of your monthly payment! According to NerdWallet, the average household pays $6,658 in interest per year in various debts.

• Power through the balance. After you have transferred your balance, it is important to take advantage of the interest-free period of your new card. Continue to make the same payments you made before and your balance will start shrinking much faster.

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.lendingtree.com/info/powerful-2-step-method-pay-off-credit-cards?esourceid=6164156&cchannel=bd&csource=cnn-money&siteid=CC-pay-off-10k-hp

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/