Credit Card Debt, Debt Relief

Debt Among Older Americans Reaches Record High Levels

American seniors have seen their debt levels increase significantly over the past two decades.  It is estimated that the total debt load carried by American consumers over the age of 70 years old increased by 543% between 1999 and 2019. It now stands at a record high of $1.1 trillion, according to the Federal Reserve Bank of New York.

Individuals who were in their 60s saw their debt increase by 471%, bringing their total debt load to $2.14 trillion. Seniors were not the only group who saw large increases in their debt, but these two age groups saw the largest increases.

Debt Relief, Medical Debt

How Coronavirus (COVID-19) Testing Could Trigger Medical Debt

The coronavirus has many people worrying about what will happen if they contract the virus. Now that the virus has spread to parts of the U.S., Americans are concerned about whether they should get tested for the coronavirus if they experience flu-like symptoms. Since this virus is relatively new and not completely understood, its testing may not be covered by private health insurance. Out-of-pocket medical costs can cost patients thousands of dollars, if the testing is not covered under their health insurance plan.

Florida businessman, Osmel Martinez Azcue reported experiencing flu-like symptoms after he returned from a trip to China in January. When he began experiencing the symptoms, Azcue went to the hospital to be tested for the virus. One of the tests he was offered at the hospital was a CT scan, which is one of the best methods used to detect the virus. He first went with the simple flu test to rule out the possibility that he was suffering from the common flu, which fortunately is what it turned out to be.  For him, the CT scan was not necessary.

Credit Card Debt, Debt Collection, Debt Relief

U.S. Cities Seeing the Highest Increase in Millennial Debt

Consumer debt is increasing nationwide, affecting individuals in all types of economic and sociographic groups. However, millennials seem to be the generation hit the hardest. In fact, millennials living in certain U.S. cities are hurting the most when it comes to their debt, according to a recent study from LendingTree.

LendingTree found that individuals in the millennial generation, born between the years 1981 and 1996, carried large amounts of auto debt, as well as student loan debt. These two categories made up the biggest portion of non-mortgage debt carried by millennial consumers.

student loan debt, Student Loans

Keep Our Graduates Working Act Gathers Support in Florida

A new piece of legislation has been introduced in the Florida State Senate which would protect the professional licenses of student loan borrowers from being suspended or revoked in the event they fall into default on their loan obligations.

The measure is Senate Bill 356, also known as the “Keep Our Graduates Working Act.” The bill expressly prohibits a state authority from suspending or revoking an individual’s professional license, registration, permit or certificate due to the person falling into delinquency or default on his or her student loan obligations.

Bankruptcy Law, Debt Collection, Debt Relief

Student Loan Tax Refund Garnishment and What Borrowers Need to Know

Many student loan borrowers struggle to keep up with their federal student loan payments upon graduation, but defaulting on student loans can end up resulting in the loan servicer garnishing the borrower’s state and federal tax refunds. Here’s what borrower’s need to know about tax refund garnishment.

The Treasury Offset Program, established in 1986, overseen by the Bureau of Fiscal Service, gives departments within the federal government the ability to ask the Internal Revenue Service (IRS) to garnish tax refunds to collect on defaulted debt owed toward either state or federal government entities. This action is known as a tax offset. A tax offset does not mean that the borrower will lose all his or her refund. The government can choose to seize the entire refund or a portion of the refund, depending on how much debt is owed. If part of the refund pays off the debt owed, including fees and interest charges, whatever is left of the refund will then be forwarded to the borrower.

Debt Relief

U.S. Household Debt Jumps the Most in 12 Years

The total amount of household debt carried by American consumers increased by $601 billion in 2019, according to recent figures from the Federal Reserve.  This increase represents the largest annual jump seen since before the 2007 financial crisis, according to officials at the New York Federal Reserve.

While total household debt has increased by $601 billion, the total amount outstanding has now reached $14 trillion for the first time. The last time the nation has seen national household debt grow this much was in 2007. At the time, household debt jumped by just over $1 trillion.

Bankruptcy Law

Timing is Important When It Comes to Filing for Bankruptcy

When it comes to filing for bankruptcy, it is not always a matter of “if” but rather a matter of “when.” Depending on a person’s financial situation, it can pay to properly time out a bankruptcy filing. Whether it is the right time to file for bankruptcy can depend on several factors including whether someone is facing foreclosure, vehicle repossession, wage garnishment, or any of the following.

Mortgage Modification

When someone is facing foreclosure, a few different steps can be taken to delay or even prevent the process. One of these solutions is through a mortgage modification. Homeowners facing foreclosure should try this approach first before filing for bankruptcy.

Debt Relief, student loan debt, Student Loans

An Alarming Number of Student Borrowers Have Made No Progress on their Loan Balances

A disturbing number of student loan borrowers who began their repayment plans between 2010 and 2012 have made little to no progress towards reducing the principal balance owed on their student loans. According to a recent report from Moody’s Investor Services, 49 percent of student loan borrowers whose loan repayment plans began during that time have made no progress. Even worse, many of them have seen their balances grow.

This problem could be due to several factors, including poor job prospects and low salaries in their first jobs after graduation. Depending on the degree pursued by each borrower, it can be difficult, if not impossible, to find a viable job that will allow the borrower to make appropriate payments to pay down their student loan debt.

Debt Collection, Medical Debt

Military Hospitals Aggressively Pursuing Medical Debt

Medical debt collectors can be relentless, and when someone has no money or resources to pay medical debts, this process can be extremely stressful. Recent reports have shown that private hospitals are not the only entities persistently collecting on medical debt. Federally backed governmental institutions, including military hospitals, are some of the worst offenders when it comes to pushing patients hard to pay on their medical bills.

A recent piece in The Atlantic highlighted just how dire the situation has gotten for many individuals. A Texas man, Ricardo Gonzalez Jurado, faced aggressive debt collection efforts from Brooke Army Medical Center (BAMC), a trauma center where he received treatment after sustaining significant injuries on a work site. Gonzalez Jurado did not have the funds to pay his bills in full, so he began a payment plan with the hospital. He kept to the payment plan and even agreed to pay more after the hospital requested higher payments. He later received a letter from BAMC after some time stating that his balance had been paid in full even though he had only paid a portion of the bill at that point. Despite trying to reach the hospital and continuing to send in his payments, BAMC returned his monthly checks.

Bankruptcy Law

Tips to Recover Quickly from Bankruptcy

Bankruptcy offers consumers a fresh financial start, but many people hold off on filing bankruptcy for fear of the negative effect it will have on their credit.  This is one of the most common bankruptcy myths,  and can keep individuals who are drowning financially from filing for bankruptcy. Bouncing back after bankruptcy is possible, and with proper discipline, it can be done relatively quickly.

According to a recent study by LendingTree, 65 percent of people who filed for bankruptcy in 2017, had a credit score of 640 or higher in two years.  The following tips can help you bounce back quickly after bankruptcy.