Tag: Kingcade Garcia McMaken

Credit Card Debt

New Study Reports Consumers Have Fallen Back into Bad Credit Card Habits

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American consumers are falling back into bad spending habits when it comes to credit card use, according to a recent study released by the personal finance website, WalletHub. Credit card debt increased by $39.6 billion during the third quarter of 2022. This increase is part of a larger trend that started in 2021, if not before.

During 2021, U.S. consumers added a total of $86.2 billion to the nation’s credit card debt balance. In the fourth quarter alone in 2021, credit card debt increased by $73.1 billion. Consumers did start the new year off well enough in 2022 by paying down approximately $12.5 billion in credit card debt, only to add $67.2 billion during the second quarter, followed by $39.6 billion during the third quarter. This figure is a record for Q3 reports.

Credit Card Debt

U.S. Cities with the Least-Sustainable Credit Card Debt

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High interest rates and high inflation are making it harder than ever to pay down credit card debt. American consumers started the year with over $1 trillion in outstanding credit card debt.

According to a recent study, the average U.S. household has over $8,900 in credit card debt, which is up 4.5 percent (4.5%) from last year. Consumers in certain cities seem to struggle more than others. This fact was recently documented in a study produced by personal finance website, WalletHub, listing which American cities had the least sustainable credit card debt.

Debt Relief

Make a Resolution to Eliminate Your Debt in the New Year

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Some of the most common New Year’s resolutions involve improving one’s physical health through diet and exercise, cutting out bad habits, and losing weight.  Other popular New Year’s resolutions involve improving one’s financial health, getting finances in order, and eliminating debt.

Credit card debt, medical expenses, and the rising cost of living is weighing on many South Florida residents, causing more to fall behind on their monthly bills.

Consumer News

What Another Federal Reserve Hike Will Mean for Consumers

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With inflation continuing to cause problems for American consumers, financial analysts worry another Federal Reserve rate increase is on the horizon. No official news has been released regarding whether an increase will happen, but experts anticipate one in the near future. Its effects could prove to be damaging to the nation’s economy, however.

The Federal Reserve has already increased interest rates this year, and the effects have been felt. The cost of existing credit card debt has already gone up by just under $23 billion due to the Federal Reserve’s rate increases so far in 2022. If the Federal Reserve increases rates again before the year ends, existing credit card debt is expected to go up by another $3.2 billion. Additionally, WalletHub projects that consumers will end 2022 with approximately $110 billion more in credit card debt than they started the year 2022 with, which makes a national record.

Bankruptcy Law, Consumer Bankruptcy

What Documents do you need to File Bankruptcy in Florida?

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At the start of a bankruptcy case, the filer is asked to fill out certain documents, including disclosures regarding the person’s financial affairs. This disclosure includes the person’s income, expenses, assets, debts, and any property transfers.

The filer will also need to provide supporting documentation, and the documents required are essentially the same for both Chapter 7 and Chapter 13 cases, with slightly different variations. It is often helpful to check with the bankruptcy trustee to ensure that all required documentation is submitted. Some trustees require more proof than others, and many times, this evidence will also be determined by the facts of the individual’s case.

Bankruptcy Law, Consumer Bankruptcy

How the Homestead Exemption Works in Bankruptcy

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When filing for bankruptcy many clients worry about losing everything they own, including the roof over their heads. However, the U.S. Bankruptcy Code provides bankruptcy exemptions, which allow the filer to protect certain property from being sold off during the course of bankruptcy. The State of Florida offers some of the most generous exemptions in the country for bankruptcy filers, including the homestead exemption.

The homestead exemption allows the filer to protect the equity he or she has in the home in which the filer resides. Florida bankruptcy law allows the filer to claim an exemption on his or her homestead for the full amount of the home, allowing him or her to keep the property during the bankruptcy. The key is, however, the homeowner must have bought and owned the property for at least 1,215 days prior to the bankruptcy filing.

Foreclosure Defense, Foreclosures

Florida Foreclosure Filings Increase by 71 Percent Since 2021

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Foreclosure rates in the State of Florida are on the rise by over 71 percent since 2021, according to new foreclosure data released by real estate company, ATTOM. As a result, Florida now ranks number two for the top five states with the highest level of foreclosure starts.

Rates have been steadily increasing throughout the year as pandemic relief programs have ended.  ATTOM reports that 9,284 foreclosure filings were made in the past quarter with 6,671 of these being foreclosure starts. Fortunately, foreclosure starts are still behind where they were before the COVID-19 pandemic hit, even though numbers are starting to rise.