credit card debt Archives - Page 16 of 24

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

The Key Differences between Secured Debt and Unsecured Debt

Posted on March 1, 2018by Admin

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

Posted on February 27, 2018by Admin

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.

Bankruptcy Law, Credit, Debt Relief

Why Credit Card Debt is Bad for Your Health

Posted on February 21, 2018by Admin

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.

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

Top 10 Reasons People File for Bankruptcy

Posted on February 17, 2018by Admin

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.

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.
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.
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.
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.
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.
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.
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.
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.
Foreclosure. A number of people file for bankruptcy in an effort to save their homes from foreclosure.
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.

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

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

Posted on February 8, 2018by Admin

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

Posted on January 5, 2018by Admin

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.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Life after Bankruptcy: 5 Things You Need to Do After Bankruptcy

Posted on January 2, 2018by Admin

If you recently filed for bankruptcy, you are likely experiencing a sense of relief from having your debts discharged and getting a fresh start financially. These tips for “life after bankruptcy” will help you avoid future debt problems and improve your credit score once your case is finalized.

Collect and preserve all paperwork from your case. Your bankruptcy attorney should provide you with a copy of your bankruptcy petition (i.e. – 40-50 pages of detailed financial information – including the facts about the debts and assets involved in your case.) You should also have a notice of bankruptcy filing directly from the court, which shows the deadlines that affected your case. Finally, you should have a copy of your discharge order entered by the bankruptcy judge. This is important as some lenders require to see a copy of the bankruptcy papers before lending you new credit.

Check your credit reports regularly. You can obtain your credit report for FREE from each of the three main credit bureaus once a year. It is important to see what creditors are saying about you. Especially after a bankruptcy, you want to make sure that all of the discharged debt is being reported to the credit bureaus with a zero balance so it does not count against you as outstanding debt. You also want to make sure the account is not transferred to a new collection agency who falsely pursues you for the discharged debt.

Start a budget and review it regularly. Creating and sticking to a budget is the key to staying on track financially. It is also a great way to manage your income and expenses and see where every dollar is going. Just like in the Means Test that compared your income and expenses over a six-month period to standards set by the Census Bureau and the IRS. The concept was to identify those who actually had the means to pay their debts, but who were living an extravagant lifestyle financed on credit cards and other debt. It’s an urban myth that people who file for bankruptcy live lavishly and are financially irresponsible. Statistics monitored since 2005 show that a very small percentage fit into this category. Most bankruptcies are caused by an unforeseen illness or medical expense, job loss, or even a divorce.

Start an emergency fund. When establishing a budget for yourself, make sure you put aside a portion of your income for savings. Having an emergency fund will help you avoid incurring unplanned debt or taking out cash advances to cover unexpected costs like a car repair or appliance repair.

Think about new credit. A great way to rebuild your credit after filing for bankruptcy is to obtain a secured credit card. You can open this card by depositing money into an account as security. Your credit limit is the amount you deposited into the account.

Related Resources:

http://blog.credit.com/2014/12/5-things-to-do-after-bankruptcy-103308/

https://www.legalzoom.com/articles/life-after-bankruptcy-get-back-on-your-feet-after-filing-chapter-7

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Beware of these Holiday Debt Traps

Posted on December 22, 2017by Admin

The holidays are officially here and if you have some last minute shopping to do this weekend, make sure and avoid these common holiday debt traps. Last year shoppers took on an average of $1,003 worth of debt, up from $986 in 2015. The merriment and excitement of holiday shopping can be replaced with anxiety and fear of debt in the New Year.

Keeping up with the Joneses. The pressure to purchase the latest and greatest holiday gifts ranging from expensive electronics to brand new cars all contribute to holiday debt. From the tree, to elaborate light displays and decorations, if not limited to a budget can all leave you with debt in the New Year.

Hot holiday toy crazes. On average, parents plan to spend $495 per child, according holiday shopping data from Rubicon Project. When the ‘must-have’ toy items start to run out, prices increase. Plan accordingly, and budget throughout the year for holiday spending.

Store credit cards. Avoid store credit cards at all costs. The 10% off the day of purchase can have big consequences if a single payment is missed on one of these cards, such as 29.99 percent APR.

Holiday parties. Hosting hordes of holiday visitors and entertaining guests can cost hundreds of dollars, not only adding to your grocery bill, but your utilities in the month of December.

Indulgent spending. The problem is that many consumers do not plan for holiday spending. Sometimes, they mentally plan to go into debt. We advise planning ahead for the next season, start checking items off the list in February or in the summer months when fewer people are buying and prices are lower.

Related Resources:

http://www.wbir.com/article/money/magnify-money/watch-out-for-these-holiday-debt-traps/507-493900752

Bankruptcy Law, Credit, Debt Relief

Things Not To Do Before Filing Bankruptcy

Posted on December 20, 2017by Admin

If you are considering filing for bankruptcy, the list of actions to avoid is just as important as the list of things to do before filing. If you do not avoid these simple decisions, it may prevent you from getting debt relief.

Do not transfer assets out of your name. Doing so raises huge red flags in bankruptcy court, particularly if the transferal of assets occurs right before bankruptcy filing. In some cases, hasty asset transfers may be illegal.
Do not use a credit card for large cash advances. Many filers choose to max out their credit cards before filing for bankruptcy because they fear losing credit later or they assume the debt will be discharged. However, if someone has no intention of paying money back, it is considered fraud.
Do not pay off a preferred creditor. Oftentimes, bankruptcy filers try to pay off debts with friends and family members before filing. However, bankruptcy court may make them give the money back so other creditors can get their share.
Do not make large purchases. It may seem like a good time to make large, expensive purchases since your debts are about to be discharged, however; the bankruptcy court may consider these purchases fraudulent.

Click here to read more on this story.

Credit, Debt Relief

3 Tips for Dealing with Credit Card Debt with Rising Rates

Posted on December 19, 2017by Admin

The Federal Reserve announced earlier this year that it would begin withdrawing some of the trillions of dollars it has invested since the Recession began in 2008. Although the decision is a sign that the bank is confident in the continuation of economic growth, it also means that interest rates will continue to hike. At the recent policy meeting, central bank members decided to push the target range to 1.25 percent to 1.5 percent, raising the benchmark interest rate a quarter point. This means consumers’ credit card debt is becoming more and more expensive.

Below are three tips to help you reduce or eliminate your credit card interest before the Fed increases the rate again.

Try a balance transfer from one credit card company to another. Typically, credit card companies will offer you competitive rates if you inquire about transferring a credit card balance. Companies often allow you to pay a low introductory rate for a specified number of months. Before completing a transfer, ask if there is a transfer fee, and make sure the transfer makes sense.
Opt for a personal loan. In recent years, many consumers are taking out personal loans as an alternative to credit cards. Although the payments are typically higher, the loans have fixed terms of five years or less and force you to get out of debt much quicker. Another selling point of personal loans is that they have fixed interest rates, which means if the Federal Reserve raises interest rates, personal loan rates will not be affected.
If all else fails, another alternative is calling your credit card company and simply asking for a lower rate. Your credit card company may not reduce your rate a significant amount, but every little bit helps in the long run.

Related Resources:

https://www.forbes.com/sites/nickclements/2017/12/04/3-strategies-to-deal-with-credit-card-debt-in-a-rising-rate-environment/2/#3e811eed1b19

https://www.cnbc.com/2017/12/13/fed-hikes-rates-by-a-quarter-point.html

https://www.nytimes.com/2017/09/20/business/economy/fed-bond-buying.html