Credit Card Debt, Student Loans Overburden Families

Today, young people may be more vulnerable to falling into early bankruptcy than at any other time. Although America appears to be in a slow state of economic recovery, the rate of Chapter 7 bankruptcy filings remain considerably higher than just 10 years ago. Three of the highest personal financial obligations that the average person carries are credit card debt, student loans and the monthly mortgage. When young people starting out in careers and growing their families run into financial difficulties, these burdens can become a recipe for disaster.

Debt Discomfort

During the last half-century, the culture has become increasingly comfortable carrying personal debt. Forbes reported that the average household now bears the burden of $200,000 in overall debt despite a mean income of only $55,000. At the center of this upside-down equation are credit card debt, mortgage payments and student loans. Revolving debt hit $3.34 trillion last year and nearly one-third of that was credit card debt. An average household today shoulders more than $5,000 in credit card debt, the highest of any era.

Since 2007, many households have been operating in the red because of fast-rising student loan obligations, according to the Congressional Budget Office. Student loan debt leapt from $29,000 in 2007 to a staggering $41,000 in 2013 and is projected to keep rising. This downward trending financial house of cards places young families in a position that one bad illness or loss of employment can force them into filing Chapter 7 bankruptcy.

Bankruptcy

Having to clear out debt in a Chapter 7 filing is an unwelcome reality, but it may be the only way to save someone’s financial future. The courts generally exempt certain types of property from being seized or sold to pay creditors. These exemptions commonly include:

  • Automobiles
  • Life Insurance
  • Pensions
  • Child Support
  • Alimony
  • Veteran benefits

But when it comes to saving your home, things can get complicated. Whether you are behind on your mortgage payments will have a tremendous impact on keeping your home or not. Many states have what is known as a “homestead exemption” that helps protect homeowners from being put on the street. However, if you are behind with the bank, you may need to mount a foreclosure defense.

Saving Your Home

It’s safe to say that no one in America is unaware of the predatory lending schemes banks employed. Judges are more inclined to consider those practices when someone brings a foreclosure defense. The process of getting in front of a judge varies from state to state. About half the states automatically send foreclosure matters to court. In other states, people need to file a civil lawsuit to be heard. There are three basic foreclosure defense arguments.

  • Unfair Mortgage Terms: This stems from the predatory lending practices that caused mass foreclosures after the housing bubble burst. A judge may determine that your mortgage has grossly unfair terms. As they say in legal jargon, it is “unconscionable.”
  • Active Service: The brave men and women serving in the military are protected under the Service Members Civil Relief Act. The SCRA allows them postponements while on active duty among other protections.
  • Procedural Defense: If a lender doesn’t follow all of the technical requirements of a foreclosure case, they can be made to begin the process all over. This may provide time to get caught up on payments.

The ability of college graduates and young people that want to own a home and start a family has grown increasing costly. While there has been a cultural shift to be comfortable with negative debt-to-income ratios, the numbers show that unforeseen circumstances can disrupt financial stability and futures.

Sources:

https://www.valuepenguin.com/average-credit-card-debt

http://www.creditcards.com/credit-card-news/credit-card-debt-statistics-1276.php

http://www.bankruptcyaction.com/USbankstats.htm

http://www.uscourts.gov/news/2015/04/27/march-2015-bankruptcy-filings-down-12-percent

http://www.nolo.com/legal-encyclopedia/medical-debt-chapter-7-bankruptcy.html

http://www.consumerfinance.gov/askcfpb/1791/what-debt-income-ratio-why-43-debt-income-ratio-important.html

https://www.federalreserve.gov/releases/housedebt/

Need Cash Now? A Title Pawn Can Help!

Get rich quick schemes never work, but did you know there are options for those who need cash now? Many haven’t heard about title pawns, but they’re one of the quickest and easiest ways to get a loan without a perfect credit score. If you have no idea what’s going on when you hear the term “title pawn,” you’ve found the right article! Cash for car title loans are a great option for anyone who doesn’t have a pristine credit score and really needs some quick money to get them out of a rough spot with bills, a layoff or any other financial issues. There are plenty of reasons why a loan on a car title is the easiest money you’ve ever gotten and why tons of people have done it in the past to make their problems disappear! Haven’t considered a title pawn for your situation? Keep reading and find out why it’s probably the best option you have!

Can I Get Cash for Car Title Loans?

What’s better than cold, hard cash? Absolutely nothing and that’s what you get when you get a loan on a car title. Getting a title pawn is just about the easiest thing you can do. Do you own a car? Do you have the title and registration? Perfect! A loan on a car title means that you can use your car is collateral in securing a loan. When you go to the bank, they ask a million questions and it takes weeks to finally get your loan. You might not even get it at all. A loan on a car title doesn’t involve your credit score or employment history. All you need is some basic ownership proofs and you can get your money fast! It takes as little as one day to secure your loan so you can take care of what you need to.

The best part about cash for car title loans is that you can keep driving your car! That’s right, get the money, keep the car. What’s better than that? You can still get around and do what you need to do without having to take the bus or rely on others for rides. A loan on a car title might just be the smartest thing you’ve done in a while so why not give it a shot? If you need cash and a car, there’s no reason you shouldn’t check out a great cash for car title loans company and find the loan which suits your needs!

Credit Card Debt

It can be an easy path to go down. You go to the store or out to eat and simply pay with your credit card. Then you get your statement at the end of the month and can’t believe how much money you actually spent. While it can be easy to fall into credit card debt it can be very difficult to climb out of the debt you’ve accumulated. . If you’re struggling with high credit card debt and simply can’t afford the monthly payments, now is the time to talk with a debt relief attorney.

People often don’t think about how much money they’re spending and they think that they’ll be okay because they don’t have to pay it all back right away. This is a bad mentality to have though, and when you only make the minimum payments on your credit cards it can be a seemingly endless cycle to pay off your credit cards. Speaking with a knowledgeable and professional attorney can help inform you of different options you have when trying to eliminate your debt.

Can bankruptcy help me eliminate my credit card debt?

For those who have accumulated high credit card debt sometimes filing for bankruptcy may be the best option. When you file for bankruptcy the harassing collection calls will end and you can eliminate your debt. Once your debt is forgiven you can then begin to work on rebuilding your credit. Bankruptcy is a fresh start and can allow you to regain financial freedom. With smart financial decisions you can immediately begin rebuilding your credit. To learn about the different types of bankruptcy and what may be the best option for you, call an experienced attorney today.

What options do I have other than Bankruptcy?

While bankruptcy may be an option, sometimes it might not be the best option for you to eliminate your credit card debt. There are other debt relief options available that do not involve filing for bankruptcy. These plans typically will combine your debts and allow you to make manageable monthly payments as you work towards repaying your debts.

When you fall into a high amount of credit card debt it can be scary thinking about how long it may take to pay back these debts. When monthly payments become unmanageable you need another solution. When you’re struggling with credit card debt you need to speak with a professional. For the best advice on how to eliminate your credit card debts call a professional debt relief counselor today.

Chapter 7 Bankruptcy

When you fall into debt it can be difficult to find a debt solution plan that works for you as you try and eliminate your debt. There are many factors that can cause someone to fall into debt, and people from all walks of life can find themselves suffering with high amounts of debt. If you’re struggling with debt and can’t afford to pay your monthly bills it’s important to speak with a bankruptcy attorney. A bankruptcy attorney can help you learn about the options you have as you look for ways to consolidate and eliminate your debt. Chapter 7 bankruptcy is one option that you have when your debt has become unmanageable.

Should I File for Chapter 7 Bankruptcy?

There are a few different option that you have when considering filing for bankruptcy. It’s important to speak with a bankruptcy attorney to discuss the options you have so you can find the best plan to tackle your debt. Chapter 7 bankruptcy is the liquidation form of bankruptcy and involves selling your assets to pay back the debt you owe. This allows you to get a fresh start and when you file for chapter 7 bankruptcy the harassing creditor calls will immediately stop. Chapter 7 bankruptcy can help you eliminate unsecured debts including:

  • Credit card debts
  • Medical bills
  • Utility bills
  • Personal loans
  • Some taxes

If you’re struggling with debt bankruptcy could be a good option for you. Chapter 7 bankruptcy may be the best option for you depending on the type of debt you have and the amount of debt you’re in. To best learn about all the options you have it’s important to speak with an experienced bankruptcy attorney.

While bankruptcy can have an impact on your credit, chances are your credit isn’t very good if you need to file for bankruptcy. While it can affect your credit once you file for bankruptcy you can then start rebuilding your credit. Bankruptcy is a way to relieve you of your debts, and when you file you are given a fresh start. With smart and responsible financial techniques you can start to rebuild your credit.

It can be very easy to fall into high amounts of debt and it can seem impossible at times to pay back those debts. Various factors can cause you to fall into debt, and if you’re struggling with debt it’s time to talk with a bankruptcy attorney. They can help you determine if filing for chapter 7 bankruptcy is the best debt solution plan for you.

Foreclosure Defense

Are you facing foreclosure or worried that you may soon face the possibility of your home being foreclosed? If so, it’s important to speak with a foreclosure defense attorney. The sooner you speak with a knowledgeable and professional foreclosure defense attorney the sooner we can work with you to keep your home. The thought of losing your home is devastating and if you’re facing foreclosure speaking to a foreclosure defense attorney is the best way to fight to keep your home. We know that facing foreclosure can be an overwhelming process, but our team of skilled attorneys will fight to best protect your rights.

Can bankruptcy help me keep my home?

In some cases filing for bankruptcy may be an option to help you avoid foreclosure. There are a few different options when it comes to bankruptcy when an individual decides to file. Chapter 7 and 13 bankruptcy are the two most popular options, but when dealing with foreclosure chapter 7 bankruptcy might be the best option to help you keep your home. When you file for chapter 7 bankruptcy an automatic stay is placed so that all creditor collection attempts will end, and that includes foreclosure.

Who should I call when facing foreclosure?

When you learn that your home may be up for foreclosure the first step is to speak with an experienced attorney. When you have a case evaluation you’ll go over the potential ways in which you can fight to keep your home. In some cases filing for bankruptcy may be an option, and it other instances you may need to look towards other foreclosure defense strategies. Assistance from our foreclosure defense attorneys is imperative if you want to keep your home. We can provide the guidance you need and we’ll discuss all the options you have when facing foreclosure.

We know the threat of foreclosure is very scary and can be potentially devastating to you and your family. There are many ways in which people can fall into debt and when they do they risk having their home foreclosed on. Don’t allow time to pass after you’ve been notified of foreclosure. You need to speak with a foreclosure defense attorney right away in order to best fight to save your home. You have a few different options when it comes to foreclosure defense and when you talk with a licensed attorney they can help you find the best way to battle foreclosure and keep your home.