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Promoting a Proactive Approach towards Financial Security

October 2018 Archives

Make sure you're eligible before filing for Chapter 7 bankruptcy

Perhaps you've been struggling for quite some time now to restore financial stability after things got a bit off track. Maybe you had some unexpected medical bills, lost a job or encountered any number of challenges that cause many California residents to experience money problems. The good news is that your problems are likely temporary, as most financial troubles are.

Credit card marketing and payday loans contribute to runaway debt

Many consumers in California recognize that a crisis like a job loss or medical emergency can force someone to borrow money. Credit card marketing and the temptation of payday loans represent two more forces that can push people into taking on debts that they cannot repay.

Bankruptcy may soon include the option to discharge student debt

Bankruptcy doesn't always exclude student loan debt, but under certain conditions, it may be available as dischargeable to Chapter 13 filers in California and elsewhere. There seems to be an increased sentiment among many in the judiciary to make relief from often crippling student loan debt more available to a broader spectrum of the general public than the current laws permit.

Why individuals should reexamine their credit card use

California residents may choose to get rid of their credit cards after paying down an existing debt balance. However, that may not be a wise choice. By getting rid of a credit card, holders may harm their credit score. This is because they will now have less credit to use and may also reduce their credit mix. These are both key factors when calculating a credit score.

Does bankruptcy always ruin a credit score?

When it comes to financial topics, there is one that tends to be a bit controversial, meaning it has a negative stigma attached and therefore leads people to think it is a bad thing. That topic is bankruptcy. The truth of the matter is that there are several types of bankruptcy, and if you are facing a serious financial crisis, one of those types may be a viable option, not only to help you obtain debt relief but to lay the groundwork for a stronger financial future as well. 

More Americans carrying credit card balances

Credit card debt nationwide is on the rise overall, but the average debt is declining. More people in California and across the U.S. are carrying credit card balances. According to data gathered by the Federal Reserve, 38.1 percent of Americans had balances on their credit cards in 2013; that number rose to 43.9 percent by 2016.