Tag: credit card debt

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Miami Residents Carry Second Highest Credit Card Debt Balance in the Country

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Credit card debt is a problem for many people and breaking the cycle can be even more of a challenge. While no one specific timeline works for every person when it comes to paying off credit card debt, it can take years of dedication and regular payments above the minimum to finally pay off a credit card. According to a recent study, it takes the average Florida resident around two years to get out of credit card debt.

The study published by CreditCards.com reported that people living in the Miami metro area, which includes both Fort Lauderdale and West Palm Beach, carry the second-highest credit card debt balances in the country, second to San Antonio, Texas. Texas was reported as being a state with three of the five cities that reportedly had the highest credit card debt.

According to the study, Florida residents holding this much credit card debt would need an estimated 21 months to pay off the current card balance. Those living in San Antonio were reported as only needing one more month, meaning 22 months, to bring the balance to zero.

The CreditCards.com study reviewed median income across the country to average credit card debt by taking data that was provided through the credit reporting company, Experian. The data looked at high debt burdens when the balance on the card was significantly high as compared to the residents’ income being reported as average or below average.

At the opposite end of the spectrum, San Francisco, a well-known area for residents living with higher-than-average income, was reported as having the lowest-reported credit card debt. The average San Francisco resident can pay off his or her debt in 13 months. The reason that debt can be paid off so quickly is the average San Francisco resident earns enough income to pay off this debt comfortably.

Other cities that reported lower debt burdens included Minneapolis, Boston, Seattle and Washington, D.C.

The report indicated that the size of the debt was not so much the problem in the Miami area but rather the debt-to-income ratio. \South Florida residents are taking on more credit card debt than they have the income to handle.

The CreditCard.com study is not the first one that had reported that many Miami-area residents suffer from low income and high financial obligations. An additional report recently shows that Miami residents paid the highest proportions of their income on rent than any other area in the nation. In fact, it has been reported that the Miami-area is one of the least affordable places to live in the nation.

Click here to read more on this story.

If you have questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Debt Collectors’ Dialing Strategies Come Under Scrutiny in State Supreme Court Ruling

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A recent Massachusetts Supreme Court ruling has given consumers more protection from creditors seeking payment on outstanding debts while leaving some questions unanswered for creditors. The court has ruled in Armata v. Target Corporation, that creditors are not exempt from rules that limit contact with consumers who owe them money.

A copy of the decision can be found here.

In this case, the consumer, Debra Armata, incurred debt through her Target-brand debit card, and this debt became more than 30 days past due. Target then began to collect on the debt and contacted Armata using a predictive dialer. These devices transfer the cardholders who do answer the phone to a live representative about 95 percent of the time with the other five percent of the time leading the person to a recorded message.  There are no voicemails left if the person does not answer the phone.

Under Massachusetts law, debt collection laws limit how many times a creditor can try to contact a consumer telephonically to collect on a debt, limiting these calls to two every seven days. However, according to the Massachusetts Attorney General, any unsuccessful attempts by the creditor do not constitute initiation of communication if the creditor was “truly unable” to reach the debtor or leave a message.

Target did not argue that it contacted the plaintiff more than two times in seven days. However, the company argued it did not initiate communications because it uses an auto dialer and does not leave voicemails if no one answers. The company stated it was exempt from these regulations for this reason as it was “truly unable” to reach Armata.

The Court disputed this argument stating that Target was trying to create too large of a loophole that would essentially allow any creditor to avoid the limits imposed by state law by using auto dialing technology. It would leave debtors unprotected from these continuous communications.

The attorney general’s term “truly unable” was better defined in the opinion. One example given by the court was if the person did not answer the phone and did not set up his or her voicemail. If that situation occurred or the person’s voicemail was full, or phone disconnected, then the company would qualify as being “truly unable” to reach the consumer.

The court also clarified that creditors who use automatic dialers or those who voluntarily decide to not leave voicemail messages, such as Target, are subject to the state’s regulations.

Target had also argued that the company was not able to leave voicemail messages because doing this would risk violating the Fair Debt Collection Practices Act (FDCPA). The court pointed out that the company did not fall within the restrictions of the FDCPA, since that law covers third-party debt collection agencies and not the actual creditors themselves, such as Target.

Click here to read more on this story.

If you have questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

 

Bankruptcy Law, Credit, Credit Card Debt, Debt Relief, Timothy Kingcade Posts

Floridians Hold Some of the Highest Amounts of Credit Card Debt in the Nation

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Credit card debt is a problem for many Americans, but according to a recent study, it seems to be a more significant problem in Florida.  In fact, the Sunshine State has been ranked among the top three states where residents hold the highest amount of credit card debt.

Florida residents carry a total balance of $59.2 billion in credit card debt, as of the end of 2017. The State of California tops the list with its residents holding $106.8 billion in credit card debt, followed by Texas at $67.3 billion.

Interestingly enough, California has traditionally been known to be a state where individuals need to earn the most income to be considered “wealthy” by most standards. Considering the high level of credit card debt residents in California carry, this leads one to conclude that this “income” involves resorting to the use of credit cards, instead of solely relying on earnings.

According to the report, the states with the highest amounts of credit card debt in 2017 were:

  1. California $106.8 billion
  2. Texas $67.3 billion
  3. Florida 59.2 billion
  4. New York $58.1 billion
  5. Pennsylvania $33.2 billion
  6. Illinois $32.2 billion
  7. New Jersey $29.6 billion
  8. Ohio $26.7 billion
  9. Virginia $26.5 billion
  10. Georgia $26.3 billion

Florida residents were also in the top ten for credit card delinquency rates, meaning balances were left unpaid for 90 or more days. Nationally, approximately 7.5 percent of credit card debt was delinquent by these standards. Florida was above this average figure and ranked third in terms of delinquency reported.

The report stated that credit card balances on a national level declined between the years 2008 and 2013 but began to rise again in 2014. As of 2017, more than 470 million credit card accounts were open, totaling $3.5 trillion. The total debt figures were compiled by the Federal Reserve Bank of New York.  The full report can be viewed here.

If you are struggling with credit card debt 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

https://patch.com/florida/southtampa/florida-among-states-highest-credit-card-debt

 

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Millennials Struggle to Keep up Financially with Previous Generations

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The financial crisis may have hit the ’80s generation the hardest. Americans who were born in the 1980s, otherwise known as “millennials,” are finding themselves struggling financially more than generations before them. Following the Great Recession, which began in 2007, individuals born in the ‘80s are at wealth levels which are 34 percent below where they would be had the financial crisis not occurred. Most millennials have to save longer to buy a home, struggle with student loan debt and rising home prices.

The generation known as “millennials” is categorized as being born between 1981 and 1996. According to a report issued by the Federal Reserve Bank of St. Louis, people in this generation are at risk of being termed “the lost generation.”

“Not only is their wealth shortfall in 2016 very large in percentage terms, but the typical 1980s family actually lost ground in relative terms between 2010 and 2016, a period of rapidly rising asset values that buoyed the wealth of all older cohorts,” the report says.

This can be attributed to a number of factors. One major setback this generation faced was entering the workforce as the financial crisis was beginning. In fact, this generation seems to have been hit the hardest for this very reason. Entering the workforce at the time of a recession put these young workers at an immediate disadvantage for earning an income, as well as saving money towards big purchases or retirement.

Once the recession passed and the economy began to improve, these individuals faced difficulty in recovering from the hard hit.

Millennials have been on the receiving end of a 67 percent increase in wages since 1970, but this increase in pay has not kept up with the rising costs of living, including rent, home prices, college tuition, costs for childcare, healthcare, and entertainment.

This generation also has to deal with large amounts of credit card debt, on top of six figure student loan debt. After graduating from college at a time when jobs are not as prevalent, these individuals have had to resort to credit to pay for these expenses.

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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Related Resources:

http://www.businessinsider.com/1980s-millennials-wealth-the-great-recession-2018-5

https://blogs.wsj.com/economics/2018/05/21/crisis-hits-1980s-generation/

Bankruptcy Law, Credit, Debt Relief

5 Ways to Erase Your Credit Card Debt

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Credit card debt can be frustrating to no end and is easily one of the most common debts individuals who later file for bankruptcy find themselves battling. Every situation is different, and while there is not a single solution for getting out of credit card debt, certain tips and tricks can help individuals who find themselves drowning in this type of debt.

  1. Use All Resources to Pay the Debt

The most common method used in the past was to take all resources available to pay off the debt. While it is an effective method, it is one that requires a lot of dedication, as well as a lot of time. It starts with the individual cutting up their credit cards and using cash only to pay for essential living expenses. It is recommended that the person first sit down to make a list of all cards he or she has, writing down the interest rate for each card, as well as the minimum payment on each.

Utilizing what is known as the “debt avalanche” method, the person targets one credit card balance at a time. This means that the person pays the minimum payments on all other cards with the exception of the first card with the highest interest rate. To come up with the amount the borrower can afford to pay towards this car, he or she will need to create or revise a budget, eliminating all unnecessary expenses, and see what amount is left after all living expenses are covered. The person will throw all of the money towards the first debt, and as soon as that debt is paid, the card with the next highest interest rate is handled and so on until all debts are paid.

However, when the card’s interest rate is too high, the individual has too many debts to handle or he or she has no extra money to contribute to paying the cards off, other options may need to be used.

  1. Balance-Transferring Card

If the individual still has a good credit score, it is possible he or she could transfer the balance from one or more of these cards to a newer one with a lower interest rate. Many cards offer a limited-time 0 percent annual percentage rate for a certain period of time and waive a balance transfer fee during this period. This time period can allow the payer a chance to catch up without the debilitating interest rates preventing any progress. However, the key is the person needs a good credit score, as well as savings or funds available to pay off the balance during this period of time with 0 percent APR.

  1. Credit Card Consolidation Loan

Sometimes paying off the credit card debt can be too much to pay without help. In these situations, credit card consolidation loans are a possibility. According to Bankrate, the average rate for these loans is 16.84 percent for credit cards these debtors are facing, which can be near impossible to conquer. A credit card consolidation loan allows the person to pay off the credit card balance with a loan for the same amount but a lower rate. The rates for these loans start around 10.00 percent with lower fees than the credit cards. These personal loans are available for borrowers with less than perfect credit, but the borrowers will need someone to cosign the loan or at least put up collateral to cover the loan.

  1. Debt Management

Another option is for the borrower to enroll in a debt management program or plan (DMP) and receive assistance from a credit counseling service. A qualified credit counselor will work with the individual to put together a budget, create a plan to pay off the debt and to work with the creditors to negotiate the debt. Also, under a DMP, the person will consolidate the debt into one monthly payment with a small monthly fee that is capped by the state. This option is available for individuals with poor credit, and the process can take approximately four to five years.

It is important that the person find a company who is qualified, such as the Financial Counseling Association of America. If a company promises the debtor that it will be able to completely get rid of the debt, it is likely a scam. Do the homework before choosing a company.

  1. File Bankruptcy

Sometimes, the individual has no choice but to file for bankruptcy if the amount of debt is too much to handle. It is at this point that a bankruptcy attorney needs to be consulted. An attorney can help the person determine whether other options exist, and if no other option does exist, the attorney can advise the individual on what type of bankruptcy is best for his or her situation, whether that be Chapter 7, 11 or 13 bankruptcy.

If you have questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com

Related Resources: http://blog.credit.com/2018/05/5-ways-you-can-erase-your-credit-card-debt-183081/

 

Bankruptcy Law, Credit, Timothy Kingcade Posts

Household Debt Continues to Climb- Here’s the Categories that have seen the Biggest Jump

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As a nation, household debt is continuing to increase.  Debt is increasing in all major categories, except for auto loans during the last quarter of 2017.  The two categories with the most significant growth were mortgage debt, which increased by more than $3,000 per household and credit card debt that went up by $250 per household.

The growth in credit card debt can be partially attributed to holiday spending. The last quarter of 2017 credit card debt per household stood at $15,983.  Mortgage debt totaled $178,037 per household.

Credit card debt often comes with high interest rates, which means carrying debt month to month can create significant financial stress.  Carrying this debt for many years can cause thousands of dollars in interest to accrue.  Some quick tips to pay off credit card debt include: Finding out your total balance, doing a balance transfer to stop the accruing interest and powering through the balance (i.e. – take advantage of the interest-free period of your new card).

Click here to read more on this story.

If you are struggling with insurmountable credit card debt or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

New Poll Reveals the Majority of Millennials are in debt, Postponing Major Life Events

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Nearly three out of four millennials in the U.S. are in debt and according to a new poll credit card debt is the most prevalent type of debt among the group- not student loan debt.

A quarter of millennials — those 18 to 34 years old — are more than $30,000 in debt, including 11 percent who are over $100,000 in debt.

Debt has resulted in savings taking a backseat for many millennials and has caused a third, or 34 percent, to hold off on buying a home.  Debt has also affected the millennial generation family structure.  Fourteen percent of millenials have delayed marriage due to their debt and 16 percent have postponed having children.

Here are some additional findings from the NBC News/GenForward survey:

  • Sixty-two percent of millennials owe more in debt, than they have in a personal savings account
  • Three in 10 millennials have less than $1,000 in their personal savings, and only 1 percent have over $100,000 saved.
  • A quarter, 24 percent of millennials, have no personal savings.
  • Two-thirds of millennials, or 67 percent, said they would have difficulty paying an unexpected bill of $1,000 right away.
  • Credit card debt is the most prevalent type of debt among the group, while just two in 10 millennials say they have a mortgage or home loan.
  • Only 22 percent of millennials are debt free.
  • Fourteen percent of millennials have delayed getting married due to debt, and 16 percent have delayed having children.
  • Debt has caused a third of all millennials, or 34 percent, to hold off on buying a home and 31 percent to delay saving for retirement.

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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Credit, Debt Relief, Timothy Kingcade Posts

Are you paying off your credit cards the right way?

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If you have multiple credit cards you are making payments toward, paying off the cards in the right order can make all the difference in how quickly you get out of debt. Turns out most consumers are using a repayment strategy that takes longer and costs more than it has to.

Here are some quick tips to help you tackle credit card debt the right way:

Go above the minimum.  When you receive your credit card statement, it will include the minimum monthly payment you are required to make.  This is typically 2 to 5 percent of your entire balance.  Paying only the minimum will have you avoid late fees and keep you from being reported to the credit agencies, but that is about it.  Depending on the interest rate of your credit cards, paying only the minimum could keep you in debt for 30+ years!

Avoid balance-matching.   According to a recent study, many consumers are allocating their credit card payments in proportion to the balances on each account.  For example, bigger payments are going towards cards with bigger balances, while smaller payments are going towards cards with smaller balances, also known as “balance-matching.”  The problem with this strategy is it avoids the interest rate entirely, which is a determining factor in how long it will take you to pay off the debt.

Utilize the debt avalanche method.  This is the optimal payment method and requires making additional payments to your highest-interest cards, first while making only the minimum payments to your lower interest credit cards.  Once your highest-interest credit card is paid off, move to the next highest-interest card, and so on, until your debt is eliminated.  This debt elimination strategy ignores the balances and uses only the interest rate to determine how to allocate payments.

Click here to read more on this story.

If you have any questions on this topic or are struggling with out of control credit card debt, 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 McMaken 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 McMaken website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

U.S. Credit Card Debt Exceeds $1 Trillion for the First Time

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Consumer credit card debt in the United States has exceeded $1 trillion for the first time, according to a recent study by WalletHub.  The average U.S. household owes $8,600 on credit cards. Florida is in the top 5 states with the highest credit card debt burden, according to CreditCards.com.

Financial experts attribute this increase to consumer confidence.  In the fourth quarter of 2017 alone, consumers added $67.6 billion while the charge-off rate remained at historic lows.  Charge-off rate refers to the percentage of credit card users whose unpaid balances credit card companies are unable to collect.

Household indebtedness in the fourth-quarter rose to $13.15 trillion from $12.96 trillion in the third quarter, an increase of 1.5 percent. Mortgages accounted for the largest component of household debt, according to a quarterly report published by the Federal Reserve Bank of New York.

In addition, the average credit score for U.S. consumers has declined.  It is now 675, just four points lower than the average in 2007, according to consumer credit reporting agency Experian.

Click here to read more on this story.

If you have any questions on this topic or 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 McMaken, 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 McMaken website at www.miamibankruptcy.com.

 

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

New Data shows 43 Percent of Credit Card Holders Have More Than $15,000 in Debt

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According to the Federal Reserve, credit card debt is the highest it has ever been in the U.S. In December, American’s had a total of $1.029 trillion in credit card debt. This means the average household had $8,732 in credit card debt. A survey conducted by Student Loan Hero reported that 43 percent of credit card holders surveyed had more than $15,000 in credit card debt and 58 percent had at least $6,000 of credit card debt for more than a year.

The Federal Reserve also reported that the average interest rates on credit cards are approximately 14.99 percent, which makes it much more difficult for Americans to pay off their debt.

Carrying a consistent credit card balance is detrimental to your financial well-being. One option that is often overlooked by cardholders is getting a credit card consolidation loan. According to Student Loan Hero, only 52 percent of cardholders that have more than $6,000 in credit card debt have consolidated.

Below are three ways credit card consolidation loans may help you.

  1. They typically come with lower interest rates than credit cards do, meaning you are paying less in the long run.
  2. Installment loans set firm repayment plans, unlike credit card companies. This means you are more likely to pay off your debt when making your minimum payment each month.
  3. They combine your payments. This comes in handy if you have debts across multiple credit cards.

Click here to read more on this story.

If you have any questions on this topic or 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 McMaken 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 McMaken website at www.miamibankruptcy.com.