Tag Archives: WashingtonDC

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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Republican Tax Modifications Aim to Make It More Difficult to Take on Debts

The American debt crisis has gotten way out of hand. According to government data cited in a recent LA Times article, US consumer debt has reached 12.58 trillion, topping the amount of debt in 2008 which led to the recession. Data indicates that borrowers are more responsible in repaying their debts now, but the amount of debt is still very alarming. Legislators are now aiming to pass legislation that would make business have to pay taxes on debts that they take out. New Tax Modification Explained The new modification is the elimination of the ability for businesses to write off debt interest as a tax deduction. Republican lawmakers propose that this new tax revision will generate about 1.5 trillion in government revenue over a decade. Private equity companies and wall street companies who have debt-oriented business models would be most affected. This change is designed to limit the amount of…
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4 Reasons You Shouldn’t Ignore Debt Collectors

There are several likely outcomes that stem from trying to ignore debt collectors, and none of them are advantageous. To put it frankly, ignoring your debt won’t make it go away. Here are the most likely scenarios that ignoring your debt will lead to, though. Why You Shouldn’t Ignore Debt Collectors Your credit suffers – A collection account is likely to appear on your credit reports whether you work with debt collectors or not. If you attempt to speak with a collector, however, you will at least have the chance to present your side of the story and maybe work something out with them. Your debt grows – Failure to pay your debts could result in the collector adding interest and collection costs to your debt. It all depends on the contract you agreed to when you took out the loan or signed up for the given credit card. Generally,…
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