U.S. Household Debt Hit Record in First Quarter

U.S. Household Debt Hit Record in First Quarter

The total debt held by American households reached a record in early 2017, exceeding its 2008 peak after years of retrenchment against a backdrop of financial crisis, recession and modest economic growth.

Much has changed over the past 8½ years. The economy is larger, lending standards are tighter and less debt is delinquent. Mortgages remain the largest form of household borrowing but have become a smaller share of total debt as consumers take on more automotive and student loans.

Should I file for bankruptcy? Find out if bankruptcy is right for you

Should I file for bankruptcy? Find out if bankruptcy is right for you

Introduction

While the United States economy seems to be bouncing back from the recession of the early 2000s, many people are still saddled with debt that may be impossible to eliminate. This overabundance of debt can lead people to consider filing for bankruptcy as a last resort when debt consolidation, mortgage restructuring or selling personal property aren’t enough to help them out of a financial hole. Although it is often thought of as a sign of failure or an admittance of defeat, the truth is that bankruptcy gives many people fresh starts for new financial futures. This guide is designed to give people considering bankruptcy enough information to make the best financial decision for them. I cover the different types of bankruptcy they can file, the positive and negative aspects of filing for bankruptcy and the steps involved in filing for bankruptcy.

3 sneaky ways debt can change how you think

3 sneaky ways debt can change how you think

For some people, debt leads to sleepless nights and anxiety about incessant collections calls. But for others, it causes quieter changes that still leave them drowning in bills without a clear way out.

Understanding the ways in which your debt can affect the way you feel, think and act may give you perspective that’ll help you conquer it. Here are three subtle ways you may be responding to being in debt.

Americans are dying with an average of $62K of debt

Americans are dying with an average of $62K of debt

You’re probably going to die with some debt to your name. Most people do.

In fact, 73% of consumers had outstanding debt when they were reported as dead, according to December 2016 data provided to Credit.com by credit bureau Experian. Those consumers carried an average total balance of $61,554, including mortgage debt. Without home loans, the average balance was $12,875.

Student loan defaults are rising faster than you think

Student loan defaults are rising faster than you think

A new analysis of federal student loans reveals that the number of people severely behind on repaying their debt has soared in the past year, painting a bleak picture of one of the largest government programs.

The Consumer Federation of America (CFA) released a study Tuesday that found that millions of people had not made a payment on $137 billion in federal student loans for at least nine months in 2016, a 14 percent increase in defaults from a year earlier. The consumer watchdog used the latest data from the Education Department, which manages $1.3 trillion in federal student debt owed by 42.4 million Americans.

Bankruptcy Becomes an Option for Some Borrowers Burdened by Student Loans

Bankruptcy Becomes an Option for Some Borrowers Burdened by Student Loans

Borrowers are beginning to win battles to erase some student loans in bankruptcy court, overcoming stiff obstacles that have generally blocked that path except in extreme cases of financial hardship.

Since March, several bankruptcy courts have allowed borrowers to cancel private student loans with a new legal argument that relies on vague wording about the legal definition of a student loan.

Bankruptcy law says that, without proving extreme hardship, a borrower can’t discharge a loan made for an “educational benefit.” This language has opened a window to cancel loans for students who argue their loans falls outside this category of debt. Such reasoning has been applied to loans obtained to attend schools without accreditation or to study for a bar exam.

Six Common Mistakes People Make With Their Student Loans

By: Anne Tergesen

As millennials struggle to repay record levels of student-loan debt, many are making costly mistakes that threaten to undermine their long-term financial security.

For instance, roughly one in four is behind on repayments or in default, which can result in a host of negative consequences, from damaged credit to garnished wages. Meanwhile, many others are struggling to find enough money, after making their loan payments, to save for retirement. Among 401(k) participants with student debt in plans administered by Fidelity Investments, two-thirds say they have reduced or stopped their 401(k) contributions or have taken out a 401(k) loan or hardship withdrawal.

With total college-loan debt in the U.S. more than five times what it was just 20 years ago, “the consequences of managing that debt have never been greater,” says Heather Jarvis, an attorney who teaches financial professionals about student loans.

What follows are six student-loan mistakes people commonly make and how you can avoid them.

Solomon to lead New Long Beach Democratic Committee; Zapson out

Long Beach Democrats have elected a new party chairman, but party leader Michael Zapson has resisted leaving his post and turning over campaign funds and property.

The New Long Beach Democrats Committee, which was formed in June to nominate candidates for a City Council primary, unanimously elected Long Beach attorney Rob Solomon on Thursday as the new Long Beach zone and city chairman, to represent the city in the Nassau County Democratic Party.