Tag: credit card debt

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Key Differences between Secured Debt and Unsecured Debt

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There are two main types of debt, these include: Secured debt and unsecured debt.  Knowing the difference between the two can help you prioritize paying off your debts and keep your assets.  Secured debts are tied to an asset that is considered collateral for that debt.  Lenders place a lien on the asset, giving them the right to repossess it if you stop making payments on the loan.  Examples of secured debt include a car loan and a home mortgage.  A title loan is also a type of secured debt.

When it comes to unsecured debts, lenders do not have rights to any collateral for the debt.  If you fall behind on payments or stop paying all together, the lender can generally not take any of your assets for the debt.  The lender can take other actions against you to collect on the debt.  For example, file a lawsuit against you and ask the court to garnish your wages.  Unsecured debt can include credit card debt, student loans and medical bills.

So how do you know which debts to prioritize? Secured debts, those tied to a specific piece of property, are typically the best choice to pay first.  These payments are often harder to catch up on if you fall behind and you risk losing essential assets, like your home or vehicle.  Here are some ways bankruptcy can affect your debts– both secured and unsecured.

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.

Related Resources:

https://www.thebalance.com/the-difference-between-secured-and-unsecured-debts-960181

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

When you should stop paying your credit cards and file for bankruptcy

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If you are struggling to make the minimum payments on your credit cards, the thought of filing for bankruptcy has probably crossed your mind.  Whether it is in your best interest to file for bankruptcy depends on:

  • Whether you can afford to ever pay back your debt;
  • Whether you are being sued by creditors;
  • Whether you are facing wage garnishment, and;
  • The amount of nonexempt property you own.

There are additional signs you should file for bankruptcy.  In certain cases, you may be able to negotiate with the credit card company and settle your debt for less than the total amount.  You can also request a lower interest rate on your credit cards.

If you have stopped making payments on your credit cards, you will likely begin receiving numerous calls from collection companies.  The more delinquent you are, the more frequent and harassing the calls will become.  For many people, the constant calling is enough to consider bankruptcy protection and relief.

If you are struggling to pay your credit card debt, know your rights and what debt collectors can and cannot do.  The Fair Debt Collections Practices Act (FDCPA) limits the tactics that debt collectors can take to collect on a debt.

Not making payments on your credit cards can result in a lawsuit being filed against you.  If the credit card company obtains a judgment against you in court, your wages could be garnished. If you are facing a lawsuit due to your outstanding debt, it is time to consider the consumer protections under bankruptcy law.

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.

Bankruptcy Law, Credit, Debt Relief

Why Credit Card Debt is Bad for Your Health

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The economy is improving and with that comes consumer confidence, increased spending and rising credit card debt.  But while household income has grown over the past decade, so has the cost of living.  This has caused many consumers to access lines of credit and utilize more credit cards.  Credit card debt hit its highest point ever in 2017, surpassing $1 trillion, according to the Federal Reserve.

Close to 2 in 5 consumers who have been in credit card debt say it has affected their overall happiness, according to a recent study by NerdWallet. One-third said it negatively affected their standard of living, and 1 in 5 said it negatively impacted their health. Still, the average American has about three credit cards and a total balance of $6,375, up nearly 3% from last year, according to Experian’s annual study on the state of credit and debt in America.

There are steps you can take to deal with credit card debt with rising interest rates.  Don’t let your debt cost you another sleepless night. Sit down with an experienced Miami bankruptcy attorney to discuss your options in greater detail.  The consultation is free, the relief is real. 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://www.usatoday.com/story/money/personalfinance/budget-and-spending/2018/02/19/why-credit-card-debt-can-bad-your-health/341044002/

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

Top 10 Reasons People File for Bankruptcy

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While it is commonly assumed that people who file for bankruptcy cannot resist the temptation of using credit cards or are self-proclaimed shopaholics, most people go bankrupt for other reasons.  Here are the most common reasons people file for bankruptcy.

  1. Medical debt. Medical expenses account for approximately 62 percent of personal bankruptcy filings in the U.S., according to a recent Harvard University study.  And interestingly enough, the study revealed that 72 percent of those who filed for bankruptcy due to their medical bills had some form of health insurance.
  2. Reduced income. Companies are cutting back on expenses and for many employees that means pay cuts. Less income, combined with an unexpected expense can end in bankruptcy.
  3. Job loss. The sudden loss of a job can quickly deplete ones savings.  Approximately 62% of Americans have less than $1,000 in savings and 21% live month-to-month.
  4. Credit card debt. This is not always the result of irresponsible spending, but can accumulate due to an unexpected medical expense, illness or job loss.
  5. Divorce. This can mean a significant loss of income and assets for both partners. It can also mean taking on a portion of your partner’s debt if you co-signed on a loan during the marriage.
  6. Unexpected expenses. Emergencies can happen to any one of us, whether your vehicle breaks down, you suffer a debilitating illness or a catastrophic storm damages your home—these events can deplete savings quickly.
  7. Student loans. Even though these are difficult to discharge in bankruptcy, statistics show that student loans account for at least one percent of all U.S. bankruptcy filings, which translates to approximately 15,000 bankruptcies a year.
  8. Utility payments. For many homeowners, the rising costs of utilities- such as heating, air conditioning and electricity- can quickly add up and pave the way to bankruptcy.
  9. Foreclosure. A number of people file for bankruptcy in an effort to save their homes from foreclosure.
  10. Money mismanagement. Money management has become more difficult, thanks in part to inflation.  A combination of poor spending habits and incorrect budgeting can quickly spiral into debt.

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.

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

New Study Reveals- 24 Percent of Americans have more Credit Card Debt than Savings

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The new statistic comes from a 2017 Bankrate study, which also revealed only 52% of Americans have emergency savings that exceed their outstanding credit card balances.  Meanwhile, the average U.S. household owes $7,136 in credit card debt and an estimated 57% have less than $1,000 in the bank.

There are ways to break the cycle of debt and boost savings simultaneously.  It starts by creating a budget. Without a budget, you will have no idea where your money is going each month and where you can cut corners.  Downsizing your living space can free up several hundred dollars a month.  But keep in mind, cutting back on leisure purchases, eating out and clothing can do the same.

Taking on a side-job to earn extra income is another way to pay down debt and boost savings.  Of the 44 million Americans who currently have a second job for supplemental income, more than one-third bring home upwards of $500 a month as a result.

Getting out of the debt cycle begins with creating a realistic budget and getting a grasp on your current financial situation.  There are specific ways you can deal with high interest credit card debt.   If you are struggling with insurmountable debt, whether it is credit card debt, medical debt or student loan debt, consider sitting down with an experienced Miami bankruptcy attorney for a free consultation who can assess your financial situation in more detail and let you know if bankruptcy is right for you.

Click here to read more on this story.

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

The Negative Effects Store Credit Cards Can Have on Your Credit Score

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Getting a deal on holiday purchases can end up costing you more in the New Year- a lot more, in fact.  The reality of a cheerful sales clerk asking, “Would you like to save 20 percent on your purchases today by opening a store credit card?” Sounds tempting, right?  But these cards can ultimately hurt your credit score.   Store credit cards can have a large impact on your credit usage, which is a big factor in credit scores.   Applying for these cards requires an inquiry on your credit report and reduces the average age of your credit accounts.

Store credit cards have significantly higher APR’s and it is easy to fall into debt. The credit limits on these cards are typically 10 percent compared to other cards.  How much of your credit limit you use has a substantial impact on your credit score.  The one factor that matters more is paying on time. Credit experts advise staying below 30 percent of the limit on any card. Consumers with the highest credit scores use less than 10 percent.

When you apply for a store credit card, the card issuer will pull one of your credit reports.  This helps qualify you, but it can cause a temporary dip in your score. On top of potentially hurting your credit scores, retail cards have usability issues. These cards are good only at one store or retail chain.  They are typically accompanied by high interest rates and severe penalties if a payment is missed.  These cards also have less security features.

If you shop at a particular store often, it might be worth opening a store card to access ongoing discounts, presales and insider benefits.  But avoid making this decision lightly and in the checkout line.

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.