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Posts tagged "bankruptcy"

Easing credit restrictions may help Kentucky borrowers

According to a Federal Reserve Bank of New York survey released in February 2015, borrowers with credit scores under 680 had a roughly 50 percent chance of increasing their credit card limits. This represents an increase from October 2014, where a similar survey showed that borrowers with subprime credit scores had a success rate of roughly 33 percent. While this may be good news for borrowers with checkered credit pasts, it has consumer advocates concerned.

How the 2009 Credit CARD Act limits interest rate increases

Kentucky residents may be aware that the 2009 Credit CARD Act placed restrictions on credit card interest rate increases. Issuers are still allowed to increase rates in certain situations, but they must notify consumers in writing 45 days before the new rate goes into effect. The law also allows consumers to decline the new interest rate and pay off their outstanding balance.

Credit card debt climbs

Though defaults on credit card payments reached a six-year low last year, Kentucky and the rest of the United States added a record-breaking $57.1 billion in net credit card debt. These and other findings related to American consumer debt are based on the results of a recently released CardHub survey.

How does a debt management Plan work?

Kentucky residents who are feeling overwhelmed by debt may have heard of debt management plans, but they may not be certain how they work or what they are. These plans are often used in order to help an individual debtor pay off his or her debts, normally over a period lasting around five years.

Cancelled debt may return as a tax bill

Anyone in Kentucky who has their credit card debt forgiven in whole or in part can expect to receive a 1099-C form from the issuer or collection agency. When this form is sent out, it is also sent to the Internal Revenue Service. In many cases, the amount of cancelled debt becomes taxable income for the card holder and could potentially result in a very large tax obligation.

Improving credit by managing credit card usage

People in Kentucky can work on improving their credit simply by managing credit card debt, making payments on time and proactively checking their accounts every day. After time passes, they can see their credit scores improve as a result.

Another way of looking at credit card debt

Many people in Kentucky carry high levels of credit card and other types of consumer debt. Some tend to use credit cards in order to purchase things they cannot otherwise afford. It is important for people to try to address their credit card debt, as significant debt levels can cause many financial problems.

Unsecured creditors and property liens

Although credit card companies are normally unsecured creditors, they may still be able to go through a process in order to convert their interest into a secured one in Kentucky. In the event a debtor is sued civilly and a judgment is issued, the creditor may then try to secure a lien against the real property owned by the debtor.

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