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Orlando Bankruptcy Law Blog

Students seek debt relief from fraudulent loans

College students in Florida and elsewhere around the country often incur a large amount of debt while working toward their degrees. Unfortunately, some students obtained loans from schools that acted fraudulently. Recently, it was reported that more than 87,000 debt relief applications are pending at the nation's Department of Education.

Some senators have asked the Secretary of Education to forgive these student loans, which is within the authority of the position. Many of the lawmakers are dismayed that the Secretary has not discharged any of these loans and are asking that she do what is right. Many of the students were duped by marketing ploys and entered into predatory loan agreements with schools no longer in existence.

Credit card debt tops list of millennial concerns

Financial websites frequently survey Florida residents and others throughout the nation. Many surveys are conducted based on generational breakdown. Recently, a financial advice website surveyed millennials about what scared them the most in their lives. According to the survey, credit card debt topped the list.

500 people who currently have incurred credit card debt participated in a nationwide survey. Over 33 percent of respondents stated that the scariest part of their lives is credit card debt. In comparison, 20 percent listed the thought of death as the most scary, while 17 percent were troubled by the thought of war.

New application introduced to simplify loan modification process

After the mortgage crisis that affected many Florida residents and others around the nation, several mortgage assistance programs arose. However, many of these programs were cumbersome and complicated. The Federal Housing Finance Agency recently introduced a new program that is promised to simplify the loan modification process for consumers.

The goal of the new process is to make it easier to navigate. The agency partnered with Fannie Mae and Freddie Mac to design the new Mortgage Assistance Application. It was created after the housing crisis to address several principles in the loss mitigation process, including accountability, affordability and accessibility.

When to pay off credit card debt

Many Florida residents and others around the country utilize credit cards as part of their everyday finances. In some cases, consumers are able to pay off balances each month and do not incur high amounts of interest. However, others may find themselves with a substantial level of credit card debt. Experts frequently weigh in on how to reduce or eliminate this type of debt. While the predominant advice is to always use extra funds toward paying credit card balances, it may be more prudent to focus on another area first.

Statistics show that the average credit card balances for households in the country is approximately $16,000. Many consumers are only able to submit the minimum payment each month, which results in interest charges being assessed on the remaining balance. Therefore, when someone does find any surplus cash, he or she is inclined to apply it to credit card debt. Experts, however, recommend that every household have an emergency fund in place.

3 ways you can recover financially after bankruptcy

If you are thinking about filing for bankruptcy soon to get out of debt, you may have concerns about what your finances will look like after the fact. You may worry that bankruptcy will damage your credit for life and you will never truly recover.

However, this is not true. While bankruptcy will certainly impact your financial life, it can actually be a blessing in disguise and give you a fresh start. Here is a guide to recovering financially from bankruptcy to give you peace of mind that things can get better. 

Take these steps before getting a debt consolidation loan

Florida residents may sometimes find themselves in situations where their level of debt feels overwhelming to them. There are several options available to consider to help alleviate the debt. One solution is to consider a debt consolidation loan. As with anything, there are positive aspects of this type of loan. However, it would be wise to carefully consider several tips fully before signing on the dotted line.

First, experts advise that shopping and spending habits need to be addressed. It is likely that current habits led to the debt situation, so it is important to make appropriate changes. Creating and maintaining a budget is critical in the process of debt management.

Survey shows that credit card debt may be a deterrent in dating

There are a variety of factors to take into account when determining who to date. Opinions on religion, politics and child rearing are often areas of concern. According to a recent study by an online refinancing marketplace, money and finances are also major factors to consider when dating. In fact, the survey showed that over 30 percent of residents in Florida and all over the country considered credit card debt when deciding whether to date a person.

The survey revealed that the level of credit card debt was more important than someone experiencing a previous divorce. It was also viewed as more critical than if they had children from an earlier marriage. It also showed that just around 12 percent of the survey respondents had an issue with student loan debt.

Recent hurricanes cause of home foreclosure increases

Over the past several weeks, two major hurricanes caused catastrophic damage to areas in the country. Hurricane Harvey affected many areas in other states, while Hurricane Irma wreaked havoc to several Florida communities. Given these disasters, the level of non-current mortgages and home foreclosure numbers rose significantly for the month of September.

The numbers, released by a national financial services company, mainly showed increases in areas that were affected by the storms. Before Hurricane Irma, Florida ranked 22nd in the nation for homes in active foreclosure or payments over 30 days past-due. After the storm, Florida jumped to third in the ranking. Another telling statistic is that the annual mortgage delinquency rate rose for the first time since July 2010.

Take control of credit card debt

Many Florida residents and others around the nation use credit cards for emergency purposes or even for routine expenses. However, a recent survey showed that roughly 40 percent of consumers use their cards for a variety of non-essential expenses. The survey also shows that over half of the survey respondents carry a significant amount of credit card debt. Experts have offered several suggestions to break the cycle and get the debt under control.

Financial planners often note that many individuals often ignore the situation and resist discussing it. However, once someone acknowledges the situation, it is easier to make a plan to address it. Making a list of all the debt is a good place to start, including on it balance information, interest rates and minimum payments. Once the list is made, prioritizing the debts is the next logical step.

Debt consolidation may be good option for consumers

Credit card debt for Florida consumers and others throughout the country is at its highest level in almost 10 years. While many cardholders are carrying higher balances, interest payments are steadily increasing. It is difficult for some to get out of the seemingly unending cycle of trying to pay down balances and get out of debt. Financial experts suggest that debt consolidation may be a valid option for some consumers.

Debt consolidation is a way to bring all credit debt card together. By refinancing all the debt, it eliminates the need to pay multiple credit card companies, since only one monthly payment is necessary. In many cases, the rate on the refinanced loan is lower than those for the credit cards.

Paul Urich
Orlando Office

Law Office of Paul L. Urich, P.A.
1510 East Colonial Drive
Suite 204
Orlando, FL 32803
Phone: 407-896-3077
Fax: 407-896-3041

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