If the Medical Debt Relief Act were to pass, it would require 180 days to pass before medical debt could be reported on a credit report. It would also remove medical debts that had been settled or otherwise paid off. This could work to improve the credit scores of many people who live in Texas and throughout the country. The legislation was recently introduced again by Senator Jeff Merkley of Oregon.
A study released recently by the investment bank Charles Schwab suggests that many young people in Texas and around the country get into problems with debt even before they are old enough to legally purchase alcohol. The researchers also found that many millennials and members of Generation Z see student loans and mortgages as bad debt while viewing credit card balances as good debt. Financial experts generally believe the opposite.
A long-term study conducted by the Consumer Bankruptcy Project found that the bankruptcy rate among seniors has nearly tripled since 1991. In addition to shrinking incomes, many older adults are also struggling with rising health care costs. This is a growing problem throughout Texas and the rest of the country, and some experts believe that these filings are only going to increase in the coming years. Bankruptcy can be a very useful tool when used correctly, but seniors often file well after most of the damage has been done.
When someone decides to file for bankruptcy, it is natural to wonder if the proceeds of a retirement account such as an IRA would be vulnerable to creditors. Another concern is whether IRA proceeds would be safe if the beneficiary files for bankruptcy.
In October 2009, the unemployment rate throughout the country was 10 percent. Roughly 10 percent of credit card accounts went into bad status. Between 2008 and 2013, Texans and other Americans had begun to make paying down debt a priority as a result of the recession. However, by the first quarter of 2018, household debt in the United States was at $13.2 trillion, which was the highest total ever recorded.
Texas residents who are struggling to pay off debt are advised to create a repayment plan as soon as possible. They are also advised to overcome the urge to go deeper into debt on meals or other items that may provide temporary satisfaction. Part of a debt repayment plan should include making credit card and other payments on time. Cutting down on current expenses can be an effective way to pay off balances faster.