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chapter 13 bankruptcy Archives

Millennials carry large debt load in San Antonio

Of all American cities, San Antonio is where millennials have the highest median debt. Those between the ages of 22 and 37 who live in San Antonio have a median balance of $27,122, according to LendingTree. While student loan balances make up the majority of that debt nationally, auto loans are the largest source of debt in San Antonio. On average, car loans make up 43 percent of what is owed to creditors.

Medical debts can create headaches for patients

In a recent study, more than 2 percent of credit reports had a medical debt of less than $200 sent to a collection agency. The study, which was published in the journal Health Affairs, looked at 4 million credit reports from 2016 to come to that conclusion. While these medical debts may seem small, they can turn into major issues for Texas residents who have them sent to collection.

Study reveals high debt levels among young Americans

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.

Household debt increasing to record levels

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.

Interest rate hikes may mean higher bills for consumers

Some Texas consumers may be paying a significant amount of money in credit card fees and interest. The personal finance website MagnifyMoney looked at data provided by the Federal Deposit Insurance Corporation and found that Americans had paid over $104 billion in interest and fees over the past year. That number is anticipated to increase.

Chapter 13 bankruptcy may allow for additional financing

As many people in Texas know, it is sometimes necessary to file bankruptcy. Things happen that cause financial hardship, and debtors need relief. Chapter 13 bankruptcies can span three years or five years, sometimes creating a challenge for debtors who find themselves needing to purchase an automobile during this time.

Store credit card delinquencies on the rise

An increasing number of people in Houston and across the country are finding it difficult to pay the bills for their store-branded credit cards. Delinquencies of 60 days or greater on the payments for these bills have gone up to 4.65 percent as of May 2018, an increase from 4.08 percent in March 2017. This is the highest rate of default that Equifax, the credit bureau, has seen for this type of card since 2011. The agency warned that it could be a sign of growing trouble for household debts across the board.

Utilization, revolving credit and credit card debt

According to an infographic from Supermoney that draws on a report from the credit agency Experian, the average credit card debt of people in Texas falls somewhere in the middle of the national average. People in Iowa carry the lowest balances with an average of $5,155. Alaskans have the highest at $8,515. In Texas, the average is $6,902.

3 approaches to eliminating credit card debt

Unemployment, medical emergencies or unexpected vehicle repairs can send people in Texas reaching for their credit cards. Although numerous reasons can cause someone to fall into debt, the balances need to be paid at some point. Debtors have several approaches to choose from when confronting credit card balances and high interest rates.