Posts tagged "filing for bankruptcy"

Handling credit card interest rate increases

Arizona credit cardholders might be interested in learning more about why credit card interest rates sometimes increase. In some cases, it is because a promotional APR has expired, so the cardholder is being charged the normal rate. Another reason is because the cardholder has missed two or more payments and is being charged a penalty rate. Those who are charged a penalty rate may have their rate reduced if they make on-time payments for six months or more.

Binding arbitration clause information for Arizona consumers

On March 10, the results of an extensive study by the Consumer Financial Protection Bureau were released. The CFPB found that binding arbitration clauses in consumer contracts severely limit their ability to be able to sue a creditor in the event of a legal dispute.

Credit card debt statistics for 2014

Arizona residents who owe thousands of dollars in credit card debt are not alone, according to a recent analysis of Federal Reserve statistics and government data. As of December 2014, the average household in the United States has $7,281 in outstanding credit card debt. When the households without any debt are taken out of the equation, the average household owes $15,608 on credit cards. In total, Americans owe approximately $881.8 billion in credit card debt as of September 2014.

Things to keep in mind about credit card debt

Arizona residents with a lot of credit card debt may feel overwhelmed by what they owe. However, there are some important things to keep in mind that could cause consumers to breath a sigh of relief. The first thing that all debtors should know is that they will never go to jail for nonpayment of a debt. Although there could be some legal repercussions for missed payments, none of those penalties will ever be time behind bars.

Creditors may seize some financial assets

Arizona credit card holders who have trouble making their payments due to job loss, divorce, medical expenses or other unforeseen circumstances may worry about the safety of their retirement funds if they default on their credit card agreement. Banks and other creditors must go through a process before they are able to garnish wages or seize funds from a bank account. In most cases, though, retirement accounts are exempt from such seizures.

Can medical debt affect credit worthiness?

Some Arizona residents may have experience dealing with different forms of medical debt. According to the Consumer Financial Protection Bureau, recently published research indicates that having medical debt may inadvertently cause lenders to underestimate someone's credit worthiness. Another study performed by the Federal Reserve Board is said to have found that more than half of all collections in credit reports are associated with medical debt.

Determining the average household credit card debt in America

Arizona residents who are dealing with credit card debt may be interested in statistics about American credit card debt. Determining the exact number poses some problems, however. While many different companies gather data and attempt to determine the average American's credit card debt, the answer is not that simple.

Most credit card debt due to job loss, illness

Arizona families who find themselves overwhelmed by credit card debt are most likely not in that position due to carelessness or ignorance about finances. A recent survey reveals that people with credit card debt are often there due to turning to credit to pay for necessities, and they tend to spend less and budget more than people who are debt-free.

The consequences of not paying credit card minimums

Arizona readers who are carrying the weight of credit card debt may be interested in an article discussing what happens if minimum payments are not made. While there will be bad news for a person's credit, the penalties will not be quite as harsh as some bill collectors may imply.

Unpaid medical bills cited as top reason for consumer bankruptcy

Arizona is home to many older people who may find themselves with seemingly overwhelming medical costs from hospitalization or surgery. Although the Affordable Care Act increased access to medical insurance for many individuals and families, a 2013 study stated that unpaid medical bills were the top reason for bankruptcy filings. That means healthcare forced more people into filing for protection from creditors than did mortgage debt or credit card debt.

  • MCBA | Maricopa County Bar Association
  • State Bar of Arizona
  • ABA | American bar Association | Defending Liberty Pursuing Justice
  • Oregon State bar
  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
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