credit card debt Archives - Page 17 of 24

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.

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:

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

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

4 Tech Tools to Help you Get Out and Stay Out of Debt

Posted on December 15, 2017by Admin

According to the Federal Reserve Bank of New York, household debt has reached almost $13 trillion as of September 30, 2017. If you are hoping to get a handle on your debt in 2018, here are a few tech tools to help you reach your goal.

Make a Payoff Plan: Unbury.Me

Unbury.Me is a free online tool that allows users to create an account, list all of their debt and map out a payment plan to suit their needs. The app allows users to either use the “avalanche” method, attacking the highest interest rate debt first, then moving to the second highest and so on or the “snowball” method, which focuses on the lowest balance first.

Attack Debt Subconsciously: Qoins

Qoins rounds each of your purchases to the nearest dollar, then applying that cash to your student loan or credit card debt. Nearly $1 million in spare change has been saved since the app launched in January 2017. To sign up, you log in and link your financial account to begin saving.

Meet Payoff Goals Via Savings Goals: Digit

A great strategy for paying off debt is being able to do so without having to think about it. Digit is an app that analyzes your spending habits to gauge the right amount of money to auto-save for your goals. It only transfers an amount it thinks you won’t notice and the cash is moved from your checking account to an in-app savings account. You can also set a goal amount for a certain debt and once you have saved that amount, it will notify and congratulate you.

Avoid Future Debt by Rethinking Credit: Debitize

If your goal is to pay off credit card debt, it is a good idea to put your plastic in a drawer and lock away the key until you have reached your goal. If you have paid off your credit card debt or you are hoping to avoid accruing more debt, Debitize is an app that will help you avoid more credit card debt. The app enables users to think of credit more concretely by automatically withdrawing the funds to cover any purchase you make immediately – then paying off the balance on your behalf within a day or two. Users end up with a credit card balance of zero each month.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Signs it’s Time to File for Bankruptcy

Posted on December 6, 2017by Admin

Filing for bankruptcy is a complicated process and a decision that should not be taken lightly. But for some, it is the only solution that will get them out of debt and serious financial problems. So how do you know if bankruptcy is right for you? Here are five signs it’s time to consider filing for bankruptcy:

You are being sued by debt collectors. When you fail to make payments on a debt, that debt gets turned over to a collection agency. If the collection agency’s calls and letters go unanswered they may file a lawsuit against you. Fighting these lawsuits can be difficult and if you lose, you will likely end up paying more in attorneys’ fees and court costs. It is best to not let it get to this point. Filing for bankruptcy provides you legal protection against creditors and debt collectors. Once the automatic stay is issued, it bars any additional collection attempts, including lawsuits being filed against you.

Your credit cards are maxed out. This not only is affecting your credit score negatively, but you are likely trapped in a cycle of making only the minimum payment on these cards while the interest accrues to amounts you will never be able to pay off. Credit card debt is one of the easiest kinds of debt to discharge in bankruptcy.

Your wages are being garnished. If a creditor obtains a court order for a wage garnishment, your employer is required by law to abide by the order and withhold money from your check each pay period until the debt is paid off. If your wages are being garnished you can still be protected by the automatic stay, which will halt further wage garnishment.

You cannot afford your bills. If you were recently laid off from your job or had an unexpected medical expense, for many Americans it is just a matter of time before even a small amount of debt can spiral into something much greater. Chapter 7 bankruptcy is specifically designed for individuals and families whose income level is not sufficient to pay their debts.

You are in danger of losing your home. If your financial situation has reached the point where you are behind on mortgage payments and facing possible foreclosure, filing for bankruptcy can help you get caught up on those payments while staying in your home.

Related Resources:

https://smartasset.com/credit-score/4-signs-its-time-to-file-bankruptcy

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Subprime Warning Issued by the Fed As Household Debt Hits New All Time High

Posted on November 30, 2017by Admin

U.S. household debt has grown $605 billion in the past 12 months, with $116 billion, accumulating in the latest quarter, according to the Federal Reserve Bank of New York. Debt is ballooning on mortgages, student loans and auto loans. Credit card debt has increased 3.1 percent in the latest quarter.

Total U.S. household debt was $12.96 trillion in the three months to September, up $116 billion from the prior three months. Debt levels were $605 billion higher than during the third quarter of 2016.

Auto loans grew by $23 billion and credit card balances increased by $24 billion, while student loans saw a $13 billion increase. Credit card balances increased by $24 billion. The combined credit card limit rose for the 19th consecutive quarter, with a 1.5% increase.

Some financial experts are saying this build-up is reminiscent to the financial crisis of 2007 and 2008. Federal data shows an increase in credit cards and auto loans moving into delinquency.

Aggregate household debt increased for the 13th consecutive quarter, rising by $116 billion (0.9%) to a new all time high. As of September 30, 2017, total household indebtedness was $12.96 trillion, an increase of $605 billion from a year ago and equivalent to 66% of US GDP, versus a high of around 87% in early 2009.

If you are struggling with 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.

Click here to read more on this story.

Related Resources:

http://www.zerohedge.com/news/2017-11-14/fed-issues-subprime-warning-household-debt-hits-new-all-time-high

Credit, Debt Relief, Timothy Kingcade Posts

Debt Consolidation: What will it do to my credit score?

Posted on November 17, 2017by Admin

Accumulating debt each month can be stressful and overwhelming. As you research options to lower or eliminate your debt, consolidating credit cards or loans may seem like a good option. But many wonder what effect this will have on their credit score. It all depends on how you consolidate and what you do with your debt moving forward.

Debt Consolidation Loans. This is one of the most popular forms of consolidation. But finding a loan that has decent terms, when you have less than perfect credit can be challenging. Double-check certifications to make sure that you are working with a legitimate consolidation company. Scams are prevalent in the loan consolidation business. Effect on Your Credit: Consolidating credit cards with high balances using an installment loan with fixed monthly payments may improve your credit rating for a period of time. But at the same time, any new loan can cause a short-term dip in your credit score.
Debt Management Plans (DMPs). These type plans are oftentimes confused with debt consolidation. DMPs are offered through credit counseling agencies. You make a “consolidated” payment to the counseling agency, which then pays your creditors- usually at a reduced interest rate. This option requires you to close or suspend your credit card accounts. Effect on Your Credit: If you have a good credit score and adhered to a creditor’s repayment terms in the past, a DMP could have a negative impact on your credit as it indicates that you are experiencing or have experienced difficulty with payments.
Credit Card Debt Transfer. Transferring high interest credit card debt to a card with a lower rate or 0% interest rate card is another way to consolidate. However, it is important to always read the fine print. Effect on Your Credit: It depends on how you use the transfer. You will often see a temporary dip in your credit score when opening a new card. You may also lose points if you open a new card and use a majority of the credit line to consolidate.

Paying down debt can have a tremendous impact on your credit scores. The biggest risk, though, is that it is easy to run up new balances on the cards you paid off in the consolidation. When paying down debt, periodically check your free credit report to see where you stand.

Related Resources:

http://blog.credit.com/2017/11/will-debt-consolidation-help-or-hurt-your-credit-64133/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Increase in Personal Bankruptcy Filings among LuLaRoe Consultants Spark Speculation

Posted on November 10, 2017by Admin

A number of women who currently or formerly sold clothing through LuLaRoe have seen income from their “small businesses” decline dramatically in recent months, forcing some of the women to file for bankruptcy.

The personal bankruptcy filings- from January 2016 to October 2017- came up during a search of court records because the women or couples filing said they were “doing business” as Lularoe or LuLa Roe.” At least 24 have been identified, but it is estimated the number is much higher.

Experts noticed on average that the families reported a “quick downward fall” in income from their business from around 2015 to when they filed. For example, one woman, a single mom in California reported she made $61,330 in 2016 from “operating a business,” which is presumed to be her LuLaRoe business since it is the only one she says she owns.

But from January to July 2017, she had only made $10,547.42 from her business, less than half she had made midway through the year before. She reported her average net income in 2017 from her business was $184.39 a month.

She was spending just as much in some months, if not more, on “operating expenses” for her business as she was making, according to the filing. For example, in May 2017 she earned $1,796.12, but spent $2,666.13 to keep her business afloat.

She lists $28,991 in assets and $8,000 worth of “inventory.” Her $85,253.43 in debts include thousands of dollars on multiple credit cards and almost $1,000 owed to her Paypal merchant account. She filed for bankruptcy in July of 2017.

Some of the other women identified, listed unpaid unsecured business loans, which shows a “clearer tie to the LuLaRoe” business.”

The co-founders of LuLaRoe appeared on CBS This Morning to speak out against the recent allegations the company is facing about merchandise quality and refund policy complaints. A $1 billion lawsuit was filed on October 23 by two former consultants on behalf of all LuLaRoe consultants alleging the company is operating a pyramid scheme.

Related Resources:

https://www.cbsnews.com/news/lularoe-clothing-retailer-founders-speak-out-against-pyramid-scheme-accusations/

https://www.buzzfeed.com/stephaniemcneal/lularoe-bankruptcy?utm_term=.bjkXAJ1kn#.vva5gXLwK

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Credit Stress? Here are 5 Ways to Negotiate with Your Credit Card Company

Posted on October 27, 2017by Admin

Opening up a credit card statement each month can be a daunting task. However, negotiating the terms of your debt with your credit card company is not as hard as you think. If you take the right steps, you will be surprised at how eager some banks and credit card issuers are to work with you.

Here are five things to keep in mind when negotiating with credit card companies.

Go right to the top. When you call your credit card company to negotiate the terms, ask to speak to a manager right away. Be polite and assure the representative there is not a problem. If the representative asks you if there is a way for them to help you, explain what you are trying to accomplish.
Request a due date change. An easy adjustment to make to your credit card terms is to simply change your payment due date. Most credit card companies are willing to move the date to help increase timely payments. If you consistently make late payments, it would be in your best interest to request a more suitable date.
Bargain for a lower interest rate. Have you been getting some competitive offers from other credit card companies? If so, you may be able to use the offers as a bargaining tool. Before you go to your credit card company, make sure you jot down all the perks, interest rates and other benefits that you would be getting if you switched cards. Your credit card company most likely will not want to lose you as a customer and will be willing to work with you.
Request a late payment fee waiver. If you have a responsible payment history with your company, they may be willing to waive late fees. If you consistently make late payments, they will likely suggest you sign up for automatic payments.
Negotiate to get the annual fee removed. Some credit card companies charge as much as $95 per year in annual fees in exchange for a few perks. When you signed up for your card, the annual fees may have worked in your favor because of the benefits you received as a cardholder. However, it may be time to reevaluate whether or not the benefits, such as cash back rewards and travel points, are outweighing the annual fees.

Click here to read more on this story.