credit card debt Archives - Page 18 of 24

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Nearly Half of U.S. Carries Credit Card Debt for At least Two Years

Posted on October 6, 2017by Admin

A new survey by CreditCards.com reveals that 43% of adults have carried credit card debt for more than two years, and 23% have been carrying debt for five years or longer.

Those most likely to carry credit card debt were older Baby Boomers (age 63-71) at 63%, while the Silent Generation (ages 72+) was at 57%. What was more surprising was that out of the 2,000 some adults surveyed, those with more education were less likely to pay their credit card bill in full every month. Only one in five cardholders with a high school degree or less carry a credit card balance, but one in three college graduates admit carrying one.

Everyday spending, such as grocery shopping and utilities, were the leading contributors to their credit card debt- not luxury purchases. Other reasons included medical bills, home repairs, retail purchases, and vacation expenses.

When it comes to income, Americans earning less are actually more likely to pay off their balances. Only 24% of cardholders who earn less than $50,000 a year carry a credit card balance, compared to 38% of cardholders with an annual salary of more than $50,000.

Florida is in the top 5 states with the highest credit card debt burden, according to CreditCards.com. Here are some tips on how to tackle long-term credit card debt.

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.

Related Resources:

https://www.creditcards.com/credit-card-news/card-debt-survey.php

https://www.forbes.com/sites/reneemorad/2017/09/30/why-43-percent-of-adults-have-carried-credit-card-debt-for-more-than-two-years/#4a75fdb5e263

http://www.foxbusiness.com/features/2017/09/28/nearly-half-americans-carry-credit-card-debt-for-at-least-2-years.html

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Boost Your Credit Score in 30 Days by Doing This

Posted on September 25, 2017by Admin

Rebuilding your credit score can take time and there are not many shortcuts, but paying your credit card bill early can give you an added boost in just 30 days. Some consumers saw their credit score increase as much as 100 points. Here is how it works:

Timing is everything. There are two factors that have the biggest impact on your credit score: One is paying bills on time versus paying late. Making early payments can help with the second factor: credit utilization (i.e. – how high your balance is compared to your credit limit).

It is recommended that you keep a balance below 30% of your credit card limit and the lower the better. Consumers with the highest credit scores typically use less than 10% of their available credit. Here are some tips to reducing your credit utilization.

Set up alerts to let you know when you have reached a certain percentage of your available credit. When you get an alert, go online to make a payment.
Setting up charge alerts or checking your account regularly so you can pay off purchases as soon as they post.
Making scheduled “micropayments” every week or two to keep balances low.
Be cautious with retail credit cards that typically offer lower credit limits. If you have just $250 in purchases on the card and the credit limit is $500. You have already used 50% of your credit utilization.

Related Resources:

https://www.usatoday.com/story/money/personalfinance/2017/09/11/credit-move-can-bump-up-your-score-30-days/629455001/

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Why Debt Settlement is Still a Bad Alternative to Bankruptcy

Posted on September 8, 2017by Admin

Increased regulation and enforcement has forced debt settlement companies to do what they promise in recent years, rather than charge people hefty upfront fees and fail to deliver any relief. However, debt settlement is not as consumer-friendly as the industry presents it, and many of the people who praise the companies and the process do not fully understand their alternatives or the long-term consequences of settling debts. A few of the minor consequences you might experience if you opt for debt settlement include: tax bills on the forgiven debt, a dip in credit scores and increased interest on new purchases.

Here are some of the biggest problems with debt settlement:

The debt settlement process takes years. Customers are told to stop paying their credit card bills, loans and other debts and put money into a savings account, however; negotiations may take years. According to the Freedom Financial Network, the largest debt settlement company, half of all customers eventually settle at least 75 percent of their debt, but the process usually takes three to four years. In the meantime, customers risk being sued over their debts. On the other hand, Chapter 7 bankruptcy halts collections activity, including lawsuits.
The math doesn’t add up. Debts are typically settled for 45 to 50 percent of the current balance, which is often higher than the initial balance because of late fees and interest. The average debt settlement fee is 20 percent of the debt at the time of enrollment. The amount of forgiven debt is usually reported to the IRS and is taxable as income. If the borrower is in the 25 percent federal tax bracket, the total cost of the settlement can equal 90 percent or more of the original amount owed.
Debt settlement companies tend to demonize bankruptcy. For example, National Debt Relief, a large debt settlement company, claims on the website, “Declaring Chapter 7 bankruptcy may mean saying goodbye to most of the assets you have accumulated over the course of your life.” However, few people who file for Chapter 7, which erases most debts in three to six months, lose any assets thanks to state laws that typically protect most if not all of what filers own.
Debt settlement companies also claim that bankruptcy is harder on credit scores. However, both processes often drop scores into the mid-500s. Credit scores can begin the recovery process immediately after either process is complete. The difference is that Chapter 7 bankruptcy typically takes only months to complete, while debt settlement typically takes years to complete.

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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

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

Credit Card Debt a Growing Concern for College Students

Posted on August 30, 2017by Admin

A recent study conducted by Nellie Mae, the nation’s leading student finance firm, revealed that the average undergraduate carries a credit card balance of $2,169. According to the study, many students use their credit cards without knowing how the bills will even be paid off. It also showed that many students used credit cards to pay for tuition and books, instead of federal student loans that offer lower interest rates.

Four out of five college students amass nearly $1,000 a year in credit card debt. One cause of credit card debt is college students’ difficulty in adjusting to their newfound financial freedom. Parents and students need to come up with a budget for credit card spending before their child leaves for college. Make sure your college student knows not to use money they do not have, even for a one-time purchase.

Use resources available to keep them on the right path. You and your college student should sign-up for overdraft alerts on all accounts. Online alerts and apps on your Smartphone can help with this.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

https://www.fastweb.com/personal-finance/articles/dealing-with-credit-card-debt

http://www.nbcdfw.com/news/local/Credit-card-debt-a-mounting-concern-for-college-students-441338263.html

Bankruptcy Law, Credit, Debt Relief, Student Loans

Over 44 Million People Affected by Student Loan Debt

Posted on August 22, 2017by Admin

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

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

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

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

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Top Debt Mistakes to Avoid

Posted on August 18, 2017by Admin

From credit cards to car loans, there are many ways to get in over your head with debt. Here are some common debt mistakes to avoid.

Credit card debt. Avoid this at all costs- if you can. Most of these cards come with high interest rates, so any remaining debt at the end of the month increases daily. Make sure you are only using credit cards on items you can (and will) pay off each month.
Amassing bad debt. Borrowing money should be something you do as an investment in your future. Student loan debt and a mortgage loan are examples. In contrast, “bad debt” is money you borrow for purchases that decrease in value.
Paying late. Constant late payments or missing payments can cost you penalties and lower your credit score. If you struggle to remember your payments, take advantage of automatic payments.
Paying only the minimum. Making minimum payments on your credit card is tempting, but it will ultimately cost you more money due to the loan debt interest rate.
Not budgeting. The only way to get out of debt is to stop living beyond your means, and the only way to stop living beyond your means is to stick to a strict budget.
Ignoring your lender. Lenders want their money, and they want you to be able to pay it- even if that means settling for less. Do not ignore their calls. If you cannot afford to pay, tell them. Never promise to pay or give your bank account information if you cannot afford to pay. Chances are, a simple conversation will lead to a solution, whether that is a lower interest rate or a simple payment plan.

Click here to read more on this story.

If you have any questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief

Record High Credit Card Debt Exceeds Previous Numbers Set Prior to the 2008 Recession

Posted on August 16, 2017by Admin

U.S. credit card debt is just over $1 trillion, exceeding the previous high set in April 2008 right before the Great Recession. The average amount of credit card debt per household is $9,600. That equals about 17% of the average U.S. household income. Since the average interest rate on a credit card is 16%, and about 24% for those with “less than perfect” credit, that debt grows between $1,600 and $2,300 each year.

A recent survey found millennials’ knowledge on credit card use troubling. A few millennials (6%) actually believe that missing a credit card payment would “improve” their credit rating. 17% said missing a card payment would have no effect on their score. Some 36% have maxed out credit cards and 48% carry card balances over to the next month, paying high interest rates and other monthly fees.

Click here to read more on this story.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

5 Mistakes keeping you in Credit Card Debt

Posted on July 20, 2017by Admin

Approximately 122 million Americans carry credit card debt. In fact, the average debt per household is $8,448. With interest rates averaging 14%, that means Americans are paying more than $1,000 in interest alone each year. Many consumers remain trapped in this cycle. Here’s why:

Failure to create a realistic budget. When establishing a budget for yourself, it is easy to look forward and see how much you will spend. However, the most effective budgets are created by looking backwards, and understanding where your money (every last penny) went.
Not making the tough decisions. Oftentimes, the right decisions are easy to calculate but hard to execute. For example, knowing your car payment is too high but not taking the steps to trade it in and purchase a less costly, slightly older model.
Taking advantage of automation. It’s easy to automate your student loan and retirement payments, but what about your credit card payments? If you plan to become debt-free you can make sure the only money remaining in your checking account at the end of each month is your budgeted spending money. Data has shown that automation is the best way to achieve your financial goals.
Convincing yourself the reward points, miles, cash back, etc. are worth it. Earning cash back and “free” flyer miles are a great way to put some extra money in your pocket. But if you are deep in credit card debt, those flights and reward points are costing you more than the perks.
Trying to borrow your way out of debt. Debt consolidation and balance transfers can help reduce the cost of your debt, but if you have not dealt with your spending problems these tools can be dangerous.

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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

What You Should Know before Closing out A Credit Card

Posted on July 19, 2017by Admin

When closing out a credit card, the effects it can have on your credit score lie in the details. Here are some important facts you need to know before closing out your card.

Age Matters. The age of your credit card that is. The average age of your open accounts makes up 15 percent of your overall credit score. So if the card you are closing out has been open for a long time, it really is better to keep it open and pay it in full, otherwise your score will be negatively effected.
Available Credit. Your credit utilization ratio is important. A low credit utilization ratio would be if you have $300 or less on a credit card that allows you to spend $1,000. A high credit utilization ratio is if you have $993 in charges on a card that gives you a credit limit of $1,000. Lenders do not like you to do this and your score will be penalized as a result.
Automatic payments. If you have been using your credit card to make payments on your car insurance or electric bill each month automatically, make sure and update this information timely before closing out the card. This way you can avoid getting hit with late fees and other penalties.
Rewards. If you have accumulated reward points on your credit card, redeem them first before closing out the card. Otherwise you will likely lose them.
Verify. It can take up to a month or two before the account is closed, so keep that in mind. Mistakes on credit reports are also fairly common. In fact, a recent study revealed that one in five consumers have at least one error on their credit report. It is always a good idea to double-check your account has been completely closed out.

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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Debt Relief, Timothy Kingcade Posts

Higher Vehicle Costs Driving a Rise in Auto Loan Delinquencies

Posted on July 13, 2017by Admin

The price tags on vehicles continues to the increase, which means consumers are borrowing more money to make their purchases. This in turn is having an effect on household budgets, pushing some families to the max. New cars now cost an average $35,000, compared to an average $31,000 in 2013, according to Edmunds.com.

The monthly payment on a new vehicle with a $31,000 outstanding loan is about $516 a month, before insurance, gas and maintenance costs are factored in.

Used vehicles have also become more expensive. The average loan on a used car bought at a dealership costs about $21,000 and carries an average $380-a-month payment.

Credit requirements have been less strict in recent years, as banks and other lending institutions began pushing auto loans, even sub-prime loans to meet the car-buying demand.

Delinquencies in indirect auto loans- those arranged through a third party, such as an auto dealer- increased to 1.83 percent. Delinquencies in direct auto loans- those arranged directly through a bank- increased to 1.03 percent.

Consumers have over-extended themselves in other areas as well, according to the American Bankers Association. Delinquencies in bank credit cards rose to 2.74 percent. Home equity lines of credit delinquencies rose to 1.11 percent.

There certainly seems to be a correlation. Consumers with credit card debt often struggle with auto loans and mortgage loans, too.

Just like with homes, consumers can end up with upside-down car loans, where the value of the car is worth less than what they owe. This is oftentimes due to higher interest and the terms and conditions of the loan itself. Many consumers who end up trapped in these type loans are considered to be a higher credit risk. They oftentimes end up being sold a lower-quality car at a higher cost.

When filing for Chapter 7 bankruptcy, consumers have some leverage because the lender knows that bankruptcy gives them the option of surrendering the vehicle and canceling all liability. Banks lose a lot of money on repossessions, so they have an incentive to offer a better deal, such as reducing the principal of the loan to the vehicle’s current value.

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, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources:

http://www.post-gazette.com/business/money/2017/07/10/Car-loans-delinquencies/stories/201707090086

http://www.nolo.com/legal-encyclopedia/car-chapter-7-bankruptcy-29608.html