Blog

Are your revolving balances on your credit cards too high?

As inflation continues to rise, it can be difficult not to use your credit cards. After all, the goods and services you use every single day are presumably more expensive than ever. Still, if you cannot pay off your credit cards monthly, you may notice an immediate decline in your credit score. Your credit score provides an instant snapshot of your creditworthiness to lenders, landlords and even some employers. While many numerical calculations go into determining your credit score, having high revolving balances on your

January 28, 2022 No Comments

Why should you track credit card spending?

Credit cards get a bad rap because a lot of people do not understand how to responsibly use them. However, the strategic use of credit cards can benefit you in a number of ways including helping you to build rapport with lenders. Tracking your credit card spending can help you avoid some of the common pitfalls of having plastic money. Catch errors One of the more common causes of erroneous charges to your bank account is when an unauthorized person gets a hold of your

January 18, 2022 No Comments

Your trustee’s role during a chapter 7 bankruptcy

When you file for a chapter 7 bankruptcy, you will be working with a bankruptcy trustee. This person will have a great deal of leverage in your case, so it helps to understand what his or her role is. Your trustee will monitor your case, recover property from your estate and distribute assets to creditors. This individual is not a lawyer and cannot represent you in any way, but he or she is not your enemy either. How your trustee can help you Your trustee

January 10, 2022 No Comments

When may bankruptcy discharge my unpaid medical debts?

Chapter 7 bankruptcy may discharge most consumer debts including your outstanding medical bills. According to the U.S. Census data, about one out of every five U.S. households has unpaid medical debts. As reported by Credit.com, health care expenses contributed to nearly 67% of bankruptcy petitions submitted in 2019. If you paid for your family’s health care treatments with credit cards, the court may discharge these debts regardless of their amounts. When could medical debts end up in collections? Medical bills may contain errors. Professionals estimate

January 3, 2022 No Comments

Do credit card balances increase credit scores?

Of all the dangerous and misleading myths circulating about credit scores, one of the most damaging involves your balance. Unfortunately, many people hold a mistaken belief that carrying a balance on a credit card can actually increase your score. Interest-bearing balances actually have no impact on your score, though. Not only does it not improve your score, but it does not give you points with lenders, nor is it necessary to establish credit history. So just where did these rumors originate? Diverse credit mixes and

December 20, 2021 No Comments

Show documentation to receive a loan modification

When you can no longer afford to pay your mortgage, you may feel tempted to stop making these payments. However, you could be able to receive a loan modification. In this situation, your lender usually needs to see several kinds of documentation. You might hesitate to speak to your lender until you feel that you are out of options. Nerd Wallet recommends that you reach out to your lender as soon as you know that you cannot make payments. It may take some time to

December 9, 2021 No Comments

How may a bankruptcy help after defaulting on my home loan?

A lender sending you a notice for defaulting on a mortgage generally means that your account has not received a payment for 60 days. As noted by U.S. News and World Report, the next step your lender takes may include filing a lawsuit to begin foreclosure. Creditors follow their own timeline to determine when borrowers have defaulted. Your loan’s terms most likely define how many months can pass without payment. Some mortgage companies allow two months. Credit card issuers, however, often go up to six

November 16, 2021 No Comments

5 mistakes you must avoid when filing for bankruptcy protection

No doubt it is with a feeling of relief that you have decided to file for bankruptcy protection. However, if you want the bankruptcy process to go smoothly, you must be alert to potential problems. Here are five mistakes you must avoid. 1. Failing to list all creditors The law stipulates that you list all your creditors when you file for bankruptcy. Double-check to make sure you have not missed one. If you fail to list a creditor, your trustee may not discharge the associated

November 4, 2021 No Comments

How may a Chapter 13 bankruptcy plan work repay my debts?

Debtors with steady income may qualify for a Chapter 13 bankruptcy. As described by CreditKarma.com, you may personalize a three-to-five-year payment plan to repay creditors. This may provide a workable option to restructure your debts by consolidating them into an affordable monthly payment schedule. To qualify for a Chapter 13 plan, you may not earn more than Maryland’s median income. The qualification process also considers your marital status and how many individuals live in your household. Which debts may a payment plan include? The bankruptcy

November 1, 2021 No Comments

What should you know about debt collectors?

Debt collectors must abide by the Fair Debt Collection Practices Act (FDCPA), an act enforced by the Federal Trade Commission. This act classifies certain practices, behaviors and actions as illegal and harmful to the person these collectors have targeted. In order to fully protect yourself from debt collector harassment, it is important to understand what this harassment can look like. You must understand what the FDCPA can provide protection from, too. Can a debt collector call 24/7? The Federal Trade Commission examines information about debt

October 16, 2021 No Comments