Category Archives: Personal Finance

Experienced DC bankruptcy attorney Kevin Judd provides advice on how to improve your personal finances, pay down debt and find financial freedom.

18 States Sue Betsy DeVos Over Delays in Student Loan Protections From Colleges

18 states and counting have now filed lawsuits following delays in vital protections designed to help students that were victimized by predatory student loan practices. Much controversy was made this year about the largest student loan provider, Navient, after they were sued by the Federal Government. They were found guilty of malicious misinformation, hidden fees and rate increases, and breaking promises to dismiss loans for employer-sponsored repayment plans. Student loan debt in the US currently sits at approximately $1.4 trillion, according to the Federal Reserve. This extreme debt crisis is a hot button issue in legislature right now. Barack Obama implemented a rule designed to allow victims of these unfair lending practices to have their bad student debts dismissed, but the Trump-elected Secretary of Education, Betsy DeVos, has delayed the ruling from going into effect. The Obama ruling was scheduled for July of 2017. The Obama rule highlighted “Borrower Defense…
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What Are the Benefits of Debt Consolidation?

If you are struggling with repaying debts, you are certainly not alone. Consumer debt has now reached all-time high levels at $12.73 trillion, according to the New York Fed Consumer credit panel. However, you have many options when repaying debts.  You can renegotiate loan terms with your lenders and consolidate multiple debts into a single debt, which can lower your interest rates. This can make the repayment process easier. It is important to consider contacting a bankruptcy lawyer before signing a debt consolidation loan, as they have resources to offer different repayment strategies that can better fit your needs. What Kind of Debts Do You Have? Secured debts: These are debts that involve physical property as collateral for the repayment plan. For example, mortgages and car loans. Failure to pay these debts can result in the repossession of the property at stake. Unsecured debts: These debts are not tied to…
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Why Is Consumer Debt at Record High Levels?

According to a 2017 first quarter report completed by the Federal Reserve Bank of New York, consumer debt is now at an all time high in the United States, reaching $12.73 trillion. This means that now more people than ever before are experiencing serious debt problems. The biggest contributors to the increase in debt are student and auto loans. Reasons Why People Get Trapped in Loan Debt Bad auto loans: As with all debts, borrowers with lower credit scores are the most vulnerable. One of the main reasons for the increase in auto debt is that loans are easy to get for people with bad credit and little financial knowledge, making them very vulnerable to predatory lending practices. Taking on an auto loan with bad credit will get you a loan with a higher monthly payment and interest rate. Failure to pay on the loan can cause the debt to…
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