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Bankruptcy Law, Credit, Timothy Kingcade Posts

Men vs. Women: Does Gender Matter when it comes to Debt?

Posted on April 15, 2014by Admin

While no person falls neatly into statistical averages, understanding the differences between men and women when it comes to debt management can help couples understand each other’s “money personalities.” According to credit counselors interviewed in a recent study, women more often handle the household budget, paying bills and spending money on necessary and discretionary items.

Because of this day-to-day spending responsibility, women carry more guilt for debt woes, which can be compounded if their spouses blame them. Women appear to shy away from debt compared with men, according to an Experian analysis released last year. On average, men carried 4.3% more debt than women. Their mortgages were also 4.9% higher than home loans taken out by women. The study also found that women used less available credit on their credit cards than men- 30% versus 31%.

While men may appear to be more comfortable taking on more debt, they also get into financial trouble more often. Experian found that men were more likely to fall 60 days or more behind on their mortgage payments than women – 5.7% versus 5.3%. Despite having more problems handling a larger debt load, men seek help later than women, according to credit counselors.

Several of the counselors interviewed said women respond to financial crisis by eliminating items on the household budget, where men work more to increase the income to get out of debt. The best solution is a combination of both along with an understanding between the two spouses.

If you have any questions on this topic or are in a financial crisis and are considering filing 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.foxbusiness.com/personal-finance/2014/04/02/men-women-and-debt-does-gender-matter/?intcmp=related

Bankruptcy Law, Credit, Timothy Kingcade Posts

7 Ways to Build Credit without a Credit Card

Posted on February 5, 2014by Admin

Whether you are buying a home, car or other big purchase item, the first thing a lender will look at is your credit score. Before applying for a major loan, it is important you know where you stand with your credit score. Many people believe that the only way to establish and build credit is by opening and using a credit card.

Here are a few alternatives to help you put the plastic away and establish good credit.

1.) Ask companies to report on your behalf. If you have recurring bills that you pay on a monthly basis (i.e.- rent, utilities, cell phone, etc.) request that these providers report your payment activity to the three major credit bureaus- TransUnion, Experian and Equifax. Of course before you do that, make sure you have a responsible/on-time payment history. Payment history accounts for 35 percent of your credit score and can have significant impact if there is not a lot of other data on your credit report.

2.) Become an authorized user on another credit card. Do this ONLY if the cardholder has a strong credit background. Signing on as an authorized user will enable you to piggy back off their stellar credit.

3.) Open an account with a credit union and take out a small personal loan. Credit unions typically offer financing options at lower interest rates than traditional banks. To give your credit score a boost, apply for a small personal loan. If denied, inquire about a secured loan-where a certificate of deposit or savings account- will be used as collateral. This request will likely be approved because the risk in minimal on the lender’s end.

4.) Apply for an installment loan. These loans paid in a timely manner over an extended period of time build your credit score because they show creditors that you are a responsible borrower.

5.) Federal student loans. A credit check is not required to obtain a federal student loan. Since it is an installment loan, it can help boost your credit score. Aim for one that is subsidized and deposit the money into a safe interest-bearing account so the funds will be available when repayment starts.

6.) Peer-to-peer loans. Companies like Prosper and Lending Club offer peer-to-peer loans, where borrowers are connected with individual investors. The interest rates are low and these lenders report to the major credit bureaus.

7.) Try an alternative credit score. Check out Payment Reporting Builds Credit (PRBC), which helps consumers create a nontraditional credit score, an alternative to the big three credit bureaus.

Click here to read more on this story.

If you are in a financial crisis and are considering filing 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.

Credit, Foreclosures, Timothy Kingcade Posts

Trend Alert: U.S. Mortgage Trouble Threatens

Posted on December 17, 2013by Admin

Mortgage trouble threatens as U.S. borrowers are reportedly missing payments on home equity lines of credit taken out during the housing bubble. The loans are a problem now because many are hitting their 10-year anniversary, at which point borrowers usually are required to start paying down the principal on top of the interest, they have been paying all along.

This trend could deal another blow to the country’s biggest banks, as more than $221 billion of these loans from Bank of America Corp, Wells Fargo & Co, Citigroup Inc, and JPMorgan Chase & Co will hit this mark over the next four years. Approximately 40 percent of the home equity lines of credit are now outstanding. This shift could more than triple the average consumer’s monthly payment. Another problem, these loans usually carry floating interest rates.

For example, a consumer with a $30,000 home equity line of credit and an initial interest rate of 3.25 percent would see their required payment jumping to $293.16 from $81.25, analysts from Fitch Ratings calculate.

Banks aggressively marketed home equity lines of credit before the housing bubble burst. Big banks, including Bank of America Corp, Wells Fargo & Co, Citigroup Inc, and JPMorgan Chase & Co have more than $10 billion of these home equity lines of credit on their books each, and in some cases more than that.

That is why the loans are starting to be problematic: For home equity lines of credit made in 2003, missed payments have already started increasing. A high percentage of home equity lines of credit went to people with poor credit — more than 16 percent of the home equity loans made in 2006, for example, went to people with credit scores below 659, seen by many banks as the dividing line between prime and subprime.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Tips for Smart Holiday Spending: Part II

Posted on December 13, 2013by Admin

With the holiday shopping rush officially here, we thought it was important to do a follow-up posting on our smart holiday spending series. We hope these tips will help you make smart financial decisions this holiday season and help plan financially for the New Year.

1.) Create a realistic and affordable budget. Decide on an amount you are willing to spend per person and do not exceed it.

2.) Shop with cash and use a ledger. This will keep you in touch with your spending; you could even spend up to 20 percent less.

3.) Avoid impulse buying and last-minute shopping.

4.) Pay off any holiday debt as soon as possible, so you do not accrue additional interest. This is especially important with store credit cards.

5.) Think outside the box. Consider gift alternatives like a breakfast, lunch or just a day together. Handmade gifts are also cost effective.

6.) In the New Year, start saving the amount you spent this year on holiday gifts and open a separate account for next year’s holiday expenditures.

7.) Comparative shop and take advantage of Christmas discounts immediately after the season. This is the best time to purchase gifts for the following year.

Bankruptcy Law, Credit, Timothy Kingcade Posts

South Florida Trails in Consumer Debt

Posted on December 12, 2013by Admin

A recent report from Equifax concludes that a lack of mortgages is what has lead to a decline in consumer debt in South Florida. Debt is down by 4.2%, the greatest drop among the country’s 25 largest metropolitan areas. Out the 25, six posted gains in consumer debt as more people took out mortgage loans and home equity lines of credit following the housing market crash.

Experts say that when it comes to credit card balances and other household debt, the South Florida region has a noticeably smaller share of debt tied to residential real estate. Florida’s large number of foreclosures has significantly effected the rankings since bank seizures essentially wipe out a consumer’s debt on a property. Experts also attribute this to the large number of recent cash purchases in South Florida’s real estate market. These type transactions, that do not create mortgage debt, could also be skewing the numbers.

Click here to read more on this story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Protecting your Credit Score when Canceling a Credit Card

Posted on October 4, 2013by Admin

Your credit score can vary from day to day and it is not an exact science. There are dozens of different models out there, the most popular being the FICO score- ranging from 300 to 850. When you need a good credit score, for example, when purchasing your dream home, your credit score becomes very important. If you have a credit score of 730, many mortgage brokers will give you their best rates. If you have a credit score over 740, it’s not going to make much difference- you are already getting the best rates available.

If you are applying for a mortgage, hold off on closing the credit card, until after your loan closes. Closing an account does not only affects your debt-to-credit-limit ratio; it can also adversely affect your credit score if the card you close is your oldest card, because length of credit history is seen as a good thing. The best way to permanently improve both your finances and your credit score is to get the debt-to-credit ratio to zero.

Click here to read more on protecting your credit score when canceling a credit card.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Rebuilding Credit after Bankruptcy

Posted on June 3, 2013by Admin

More than a million people file for bankruptcy each year in this country. It is important to remember that immediately after filing bankruptcy you can begin rebuilding your credit. Below are five steps you can take to rebuild your credit after bankruptcy.
1.) Go to annualcreditreport.com and pull your three credit reports (Experian, Equifax and TransUnion). Make sure all of the debts affected by the bankruptcy are listed. Also confirm all information is accurate on each of the reports.
2.) Start getting new credit. The best way is through a secured credit card. Almost everyone is approved and a deposit will guarantee that you are able to cover the charges.
3.) Pay off the card timely, along with all of your other bills each month.
4.) Start a savings account. Having emergency savings means you will not be as likely to tap into your credit.
5.) If you made mistakes, learn from them. You should not feel ashamed after filing for bankruptcy.

Click here to read more on ways to rebuild your credit after bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The 4 BEST Credit Cards for BAD Credit

Posted on May 23, 2013by Admin

It’s almost impossible to get around these days without a credit card. However, if you have poor credit, you are probably concerned you will not qualify for a card or the interest rates, penalties and fees will make it too difficult. Fear not, those individuals with poor credit (a credit score below about 640-660) should consider the below cards- which are not only easy to qualify for, but if used properly can help boost your credit score.
• Capital One Secured MasterCard. This card reports automatically to all 3 credit bureaus. This is a real credit card, not a prepaid card. You can increase your line of credit without increasing your refundable security deposit, and you can get up to a $3,000 line of credit. There are no processing or application fees. You can also utilize tools to track your credit score. No balance transfer fee. $29 annual fee.

• American Express Prepaid Card. This prepaid card doesn’t affect your credit score since it doesn’t report to any of the credit bureaus. With this card, you can load up to $2,500 to your card. You can order up to 3 American Express Prepaid cards. All your prepaid cards will benefit from roadside assistance and purchase protection, as well as excellent customer service. No annual fee.

• PASS Card from American Express. This prepaid card is mainly for parents to get for their teenage children so that they can learn to use a card to pay for their purchases and always have some money handy. You can reload this card whenever you want or schedule reloads, such as monthly or weekly for your child’s allowance. This card will give your teen special access to entertainment events, as well as purchase protection and roadside assistance. No fraud liability. No annual fee.

• BuyRight Prepaid MasterCard. This card requires no credit check. You can enjoy the online billpay feature that will allow you to pay your bills, checks and rent online. You must pay a $9.95 activation fee to use your card for the first time. This card allows you to earn rewards when spending at Starbucks, purchasing iTunes, RedBox, prepaid cell phone minutes and more. There is a $7.95 monthly fee.

Click here to read more on the four BEST credit cards for bad credit.

If you are looking to rebuild your credit history, it is recommended that you apply for Capital One Secured MasterCard as it reports monthly to the three major credit bureaus in the U.S. The key with this card is to pay your bill on time and maintain your account balance well below the credit limit.

Bankruptcy Law, Credit, Timothy Kingcade Posts

How to Rebuild your Credit after Filing for Bankruptcy

Posted on May 15, 2013by Admin

A poor credit score can affect everything from your credit card and mortgage interest rates to your insurance premiums. It can even affect your employment prospects. Repairing credit takes time, but it’s not impossible. If you are in the subprime category because of a foreclosure or bankruptcy, below are some steps you can take to start improving your credit and getting your score above the all-important 700 mark.

1. Get a secured credit card: A secured credit card can be a good payment method to keep you out of debt. If you deposit $500 to your card, your credit limit becomes $500. Make sure that the issuer reports your activity to the three main credit bureaus (i.e. – TransUnion, Experian and Equifax) to help raise your score.

2. Use Retail or Gas Cards: As your credit score improves with secured or prepaid cards, you will eventually qualify for retail cards from department stores and gas stations. The interest rate on these cards is often high making it essential that you don’t hold a balance beyond the grace period.

3. Beware of Quick Fixes: Do not pay a lot of money to somebody promising to rebuild your credit in a short amount of time. There are no quick fixes. It will take time to repair your credit, but you will likely have a score above 700 before the bankruptcy falls off your report.

Click here to read more about how to improve your credit after filing for bankruptcy.

Bankruptcy Law, Credit, Timothy Kingcade Posts

South Floridians’ Average Credit Score Declines despite Paying Down Debt

Posted on May 14, 2013by Admin

Despite debt dropping in South Florida, credit scores have actually worsened from a year ago making it hard for consumers to capitalize on low interest rates and qualify for personal loans. According to CreditKarma.com, the average credit score in Broward and Miami-Dade fell to 646 in March after it had been at 658 a year earlier, even though credit card, mortgage and student loan balances improved during the same period. Credit Karma’s CEO, Kenneth Lin, attributes this to South Florida still experiencing fallout from being among the hardest-hit U.S. metro areas for foreclosures, short sales, bankruptcies and layoffs during the Great Recession.

Consumers being late even once in making a monthly credit card payment can hurt their credit score. Banks also could have inadvertently lowered many consumers’ scores when they cut credit card limits during and after the recession. Consumers also could have hurt themselves by closing accounts, which lowers their borrowing limit. Many young South Floridians with student loans are unfairly marked down because when their payments are deferred, they are scored as if they are delinquent in paying.

So what can consumers do to turn this trend around? Young people can apply for credit cards to have their on-time payments reported to improve their credit scores. You can also make sure the three credit reporting agencies- TransUnion, Experian and Equifax are free of errors. All South Floridians should check their credit reports once a year to make sure there are not any mistakes that can hurt their score.

Click here to read more about the average credit score decline despite South Floridians paying down their debt.