Can Lenders Foreclose When Payments Are Current?

Florida is often one of the hardest-hit areas in the country for foreclosures and that held true this year, too. During the first three months of 2022, Florida was the eighth-highest state in the country for foreclosures. In total, one out of every 1,211 housing units was foreclosed on in Florida. That is a total of 8,147 units foreclosed on, for a total of 0.08 percent.

Many people understand that when homeowners do not make their mortgage payments, their lender may foreclose on their home. However, many do not understand that a foreclosure can happen even when the mortgage is current and has been paid regularly. Below, our Florida foreclosure defense lawyer explains when foreclosure could occur even when payments are current.

Property Taxes Have Not Been Paid

All municipalities throughout Florida collect property taxes on homes. Taxes are sometimes made as part of the mortgage payment, which is known as escrow. When taxes are not paid through a mortgage payment but are paid separately, the homeowner is responsible for paying the taxes directly to the government. When homeowners do not pay the taxes themselves, the lender may make up the payment. The homeowner is then responsible for paying the property taxes to the lender. If they fail to do that, the bank will likely foreclose on the property.

Outdated Homeowners Insurance

Like property taxes, most mortgage contracts include a clause that requires homeowners to purchase homeowners insurance and to keep it up to date. Any homeowner who does not carry and maintain up-to-date insurance is in violation of their mortgage contract. Any violation of a mortgage contract can result in foreclosure, including violating the homeowner’s insurance clause.

The Property is Not in Good Condition

Many people understand that their mortgage contract requires them to pay property taxes and to maintain up-to-date homeowners insurance. However, some homeowners do not realize that their mortgage contract also requires them to keep the property in good condition. This typically means that the lawn needs to be cut regularly, and that any part of the home that has fallen into disrepair must be corrected as soon as possible. Any time a homeowner fails to keep their premises in a safe and good condition, their lender may foreclose on the home.

Homeowner Association Fees Have Not Been Paid

Over the past several years, homeowners associations (HOAs) have become extremely popular. HOAs are community boards that outline regulations and rules all homeowners must comply with when they live in a specific neighborhood or in a multiple-unit building, such as a condominium. HOAs also maintain shared spaces, such as lobbies, courtyards, and other spaces open to anyone who lives within the HOA.

In exchange for their work, HOAs charge the homeowners they represent fees, also known as dues or assessments. HOA fees are typically paid every month, just like the mortgage. Also just like a mortgage, when HOA fees are not paid, the homeowners association can petition a court and obtain a judgment that allows them to sell the property to recover the debt, even if the mortgage is current.

Mortgage Payments were Made to Incorrect Lender

It may seem like a mistake no one could ever make but sometimes, mortgage payments are not paid to the right lender. Unfortunately, it happens more often than people think. Lenders often bundle mortgages together and then sell them to another lender. Sometimes, homeowners do not even realize that their mortgage has been sold to another lender. As a result, they continue making their mortgage payments to the original lender. The entity that purchased the mortgage may then foreclose on the home because they have not been receiving their mortgage payments.

How to Avoid Foreclosure

Facing foreclosure is not only financially devastating, but it is also emotionally traumatizing. It will also damage your credit score for many years to come, making it a challenge to obtain any credit in the future. The good news is that even if your lender has already started the foreclosure process, there are ways to stop it so you can keep your home.

One of the most popular options for stopping foreclosure is a loan modification. A loan modification can change any part of the loan, including the interest rate, the duration of the loan, and more. To obtain a loan modification, you have to ask for one from your lender. There is no guarantee that any lender will approve a loan modification, but they are more common than people think.

Payment suspensions and repayment plans are other options for avoiding foreclosure. A payment suspension allows you to stop making payments for some time, which is a good option when people suddenly become unemployed or there is another situation that prevents them from making regular mortgage payments. A repayment plan will temporarily increase the number of your payments so that you can get caught up on your mortgage little by little.

For any of the above options to work, you must stay in contact with your lender. Even if you do not think those options will work for you, it is still critical that you do not ignore your lender. Simply staying in communication with them and keeping them updated about your situation can go a long way when you are trying to avoid foreclosure.

Call Our Foreclosure Defense Lawyers in Florida to Discuss Your Legal Options

If you have missed several mortgage payments, or your lender has notified you that they are starting the foreclosure process, it is important to remember that you do have options. At Loan Lawyers, our Florida foreclosure defense attorneys have helped thousands of people stay in their homes and we can put our experience to work for you, too. Our seasoned attorneys are skilled negotiators and can work with your lender on your behalf so you have the best chance of a favorable outcome. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.

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Ten Signs Your Credit Card Debt is Out of Control

Residents of Fort Lauderdale carry some of the highest credit card debt in the country. In the first quarter of 2022, credit card debt in the city stood at $983.2 million, averaging approximately $13,115 per household. This is well over the average nationally and is among the most of any large city within the United States. Clearly, many people are struggling with debt that has gotten out of control. Unfortunately, many people do not even realize their debt has reached such unmanageable levels. So, how can you tell if your debt has gotten out of control? Below are ten signs.

1.Your Credit Cards Are Maxed Out

If you do not pay your full credit card balance every month, you can quickly max out all of your cards, and even go above your limit, which will cost you more in interest and late fees. If you have more than one credit card that is maxed out, it will only compound the problem. If your balance exceeds the limit, the company that issued you your credit card is likely to increase your interest rate. This will only make it even more difficult to pay off your balance.

2. You Can Only Afford Your Minimum Monthly Payment

Credit card companies will always give you a minimum balance you must pay. However, you should always pay more than the minimum amount so you pay more towards your balance and eventually eliminate your debt. Ideally, you should pay off your full credit card balance at the end of every month. If you are finding that you cannot afford to pay more than your minimum monthly payment, it is a sign that your credit card debt has spun out of control.

3. You Make Late Payments

If you miss making credit card payments, it is going to hurt your credit even further. A late payment increases the amount you now need to pay to catch up on the debt, and it will also result in late fees being added to your balance. If your credit card is maxed out, even just one late fee could push you past your limit, hurting your credit even further.

4. You Use Other Debt to Pay Off Your Credit Cards

Repeat balance transfers, cash advances, and payday loans are convenient and they may seem like a great option to pay off your credit card debt. Unfortunately, you are only going into more debt and if you use your credit card after you have paid the debt, the situation only becomes worse. If you need to take out debt to pay your debt, it means it has gotten out of control. It is important to determine how you are going to pay off your debt, without taking on any more.

5. You Use Credit Cards to Purchase Every Day Necessities

Using credit cards to pay for groceries or other daily necessities can help you earn cash back and rewards. If you pay your balance every month, it can even help improve your credit score because you are showing that you can afford to take on the debt. If you are using your credit card to make daily purchases because it is the only way you can afford them, that is very concerning.

6. Your Credit Score Has Dropped

You should not use more than 30 percent of your overall credit. Thirty percent is considered a good credit utilization ratio or, in other words, how much credit you are using compared to the credit you have available. If your credit utilization ratio is higher than 30 percent, it will lower your score and is a sign that your credit card debt is out of control.

7. You are Denied New Credit

Credit card companies may notice that your credit card debt is out of control before you do. If you have been denied a new credit card, the credit card issuer should have sent you a letter notifying you of the reason for the denial. If the credit card company said they could not approve your application because of high balances on your credit card, it is a sign that it is time to stop spending and pay back your debt before the situation becomes worse.

8. You Hide Your Debt

If you feel as though you have to hide your debt, it is a sign that it has become unmanageable. Hiding your debt could mean that you do not tell your spouse about it, or that you do not open credit card statements when they come in the mail.

9. You Do Not Have Any Savings

A significant amount of debt will mean that you do not have money for anything else, including savings. If you do not have savings, you may have to eventually take on more debt if an emergency occurs, which will only make paying it off even more challenging.

10. You Worry About Paying Off Your Credit Cards

Anyone who has struggled with debt knows that worrying about paying it off can keep you up at night. If you have noticed that you are increasingly concerned about paying off your debt, it may mean you have more than you can handle. However, do not think that if you do not stress about your debt that it is under control. You may be in denial about the seriousness of the situation, or you may just be ignoring the problem.

Problem with Debt? Call Our Consumer Debt Lawyer in Fort Lauderdale for Help

Struggling with debt often means receiving harassing calls from debt collectors, and facing lawsuits that could result in wage garnishment or other consequences that will make your life more difficult. At Loan Lawyers, our Fort Lauderdale consumer debt lawyers can help with any legal action you may be facing and will give you the best chance of a favorable outcome. Call us now at (954) 523-4357 or contact us online to schedule a free review of your case and to learn more about how we can help.

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Is Using a Personal Loan to Pay Off Credit Card Debt a Good Idea?

According to the latest data released by the Federal Reserve, consumer credit increased by a record $38 billion in April of 2022. The increase shows that as Americans also deal with record-high inflation, they are starting to lean on credit cards more. Revolving credit, which largely includes credit cards, totaled a record $1.103 trillion, inching about the old record of $1 trillion set prior to the pandemic.

The news is not all bad, considering that increased credit card balances mean increased consumer spending, which is important for the economy. Still, while credit cards are a convenient way to make daily purchases, they can become a real burden when the balances grow out of control and you cannot repay them. There are many strategies people use to pay off credit card debt. One of those ways is by using a personal loan. So, is using a personal loan to pay off credit card debt a good idea?

How to Use a Personal Loan to Pay Off Credit Card Debt

Credit card debt is known as revolving debt because you can regularly pay it off, freeing up more credit for you to use. Personal loans are not a revolving type of debt. They are paid in one lump sum, which you can then use and repay over a certain period of time. When you use a personal loan to pay off a credit card, you are essentially using the loan to consolidate the credit card debt. Doing so has many benefits, but there are some drawbacks to consider, as well.

Benefits of Using a Personal Loan to Pay Off Credit Card Debt

Using a personal loan to repay credit card debt is a good option for some people, particularly if your current repayment plan is not working for you. The benefits of using a loan to pay off the debt are as follows:

• Better debt management: The average American carries four different credit cards. One of the biggest challenges that comes with having so much debt spread out across so many different cards is that it becomes difficult to manage. You will have to pay close attention to due dates, minimum amounts, and interest fees. If you miss a payment simply because you did not realize it had come due, it will damage your credit score. With a personal loan, you only have one form of debt to keep track of, making repayment much easier and possibly more affordable.
• Better interest rates: One of the biggest reasons people find it challenging to repay their credit card debt is because so much of their payment goes to interest rates. In August of 2021, the average interest rate on credit cards was 17.13 percent. Compare that with the average interest rate on personal loans of 9.39 percent and it is easy to see how much a personal loan could save you.
• Better credit score: You may also see your credit score improve when you use a personal loan to pay off credit cards. Thirty percent of your credit score is based on your utilization ratio, which refers to the amount of the available credit limit you are using. When you pay off credit card debt using a personal loan, you bring the balances on your cards down to zero, improving your utilization rate and your credit score as a whole. It is important that you do not use your cards to make purchases, and that you consistently make your personal loan payments.

Drawbacks of Using a Personal Loan to Pay Off Credit Card Debt

While there are many benefits you may realize when using a personal loan to pay off credit card debt, there are some potential drawbacks, as well. These include:

• You could incur more debt: It is not uncommon for people to use a personal loan to pay off their credit card debt, only to add back to the balances of the credit cards by using them. If this happens, you will not reduce your debt, you will only take on more. You will also increase your credit utilization rate, which will further damage your credit score.
• Fees are sometimes high: Not all lenders charge fees on personal loans, but many do. For example, personal loan origination fees are very common with this type of debt. When applying for a personal loan to repay your credit card debt, it is crucial that you read the fine print in the agreement so you are not unpleasantly surprised in the future.
• Saving money is not guaranteed: While it is true that the interest rates on personal loans are lower, on average, than credit cards, this is not always the case. If you do not have a fairly high credit score, you could pay a higher interest rate on a personal loan than you are currently paying on your credit cards. Lenders will view you as a higher risk and so, they will charge more in interest to recoup any potential cost of giving you the loan.

How Much Can You Borrow on a Personal Loan?

The amount available to you using a personal loan will depend on many factors. These include the specific lender you are choosing, and your own credit score and financial situation. In 2020, the average balance of personal loans was $16,458. However, there are lenders that offer personal loans with balances as high as $100,000. It is extremely important to thoroughly research any lender you are considering using for a personal loan, so you know upfront how much you can expect to receive, and how much you can expect to pay for it.

Our Consumer Debt Defense Lawyers in Fort Lauderdale Can Advise You of Your Legal Options

If you are struggling with a high amount of debt, our Fort Lauderdale consumer debt defense lawyers can provide the legal advice you need. At Loan Lawyers, our seasoned attorneys can outline your options including negotiating the debt or defending against unfair claims for it. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.

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What are the Differences Between the FDCPA and the FCCPA?

Recently, the Eleventh Circuit court vacated a dismissal of a mortgage borrower’s complaint. In Daniels v. Select Portfolio Servicing, the plaintiff argued that the mortgage lender violated both the Fair Debt Collection Practices Act (FDCPA) and the Florida Consumer Collection Practices Act (FCCPA). Daniels argued the lender was asking for an incorrect amount of debt to be paid. The court found that because there was certain language included in the statements sent by the mortgage lender, their collection practices were subject to both the FDCPA and the FCCPA.

The FDCPA and the FCCPA are two important laws that protect all borrowers throughout Florida. Although these two sets of laws are very similar, there are differences. Below, our Fort Lauderdale Broward County consumer debt defense lawyer explains what those are.

Protection for Borrowers Under the FDCPA

The FDCPA specifically outlines certain actions debt collectors can and cannot take when trying to recover debts from borrowers. For example, the Act prohibits debt collectors from using harassing or threatening tactics when trying to collect any debt, and they also cannot communicate with third parties about your debt, although there are some exceptions to this rule. Additionally, debt collectors are not allowed to contact your employer or call you at work if you have asked them not to. They also cannot call you at home at unreasonable hours, such as very early in the morning or very late at night.

The FDCPA is extensive and the above are just a few of the protections it provides for borrowers. Any time a debt collector violates the law, borrowers can file a lawsuit against them to collect damages.

Protection for Borrowers Under the FCCPA

The FCCPA largely mirrors the FDCPA, but it does offer more protection for borrowers in Broward County. Under the FDCPA, debt collectors and creditors are prohibited from using harassing, abusive, deceptive, fraudulent, or misleading tactics when collecting debts. Some of the other actions debt collectors and creditors are prohibited from taking according to the FCCPA are as follows:

• Fraudulently represent themselves as law enforcement, or as though they are working on behalf of a government agency
• Threaten to use or use violence or force
• Speak to, or threaten to speak to your employer about the debt, unless they have obtained a wage garnishment judgment against you
• Communicate with any third party, other than family members, in a manner that affects your reputation or creditworthiness, knowing the information is incorrect or that the third party does not have a valid business need for the information
• Report or threaten to report a disputed debt with any credit reporting bureau without also informing them of the nature of your dispute
• Call you before 8:00 am or after 9:00 pm
• Tell you that a lawyer is involved when that is not the case, or misrepresenting themselves as an attorney
• Send you notices, forms, or summons intended to look similar to a government document or attorney letter when the material is not of a legal or official nature
• Use profane, obscene, abusive, or vulgar language when speaking to you or any members of your family
• Attempt or threaten to enforce a debt against you when the debt is illegitimate
• Communicate with you directly knowing you have legal representation
• Mail you documentation that contains embarrassing phrases or words where they are visible to others

Who Do the Laws Apply To?

One of the biggest differences between the federal law and the state law is that the FDCPA applies to debt collectors and certain third party debt buyers. Under the law, a debt buyer is defined as any person or entity that purchases debt from original creditors and tries to recover the amount owed by the borrower. The FDCPA is also applied to certain attorneys, when they try to collect on a debt or represent an entity trying to collect a debt. The FDCPA does not typically apply to original creditors.

Fortunately for borrowers in Broward County, the FCCPA does apply to original creditors. It also applies to debt collectors and debt purchasers.

Damages Available Under the Law

If a creditor or debt collector violates either state or federal law when trying to recover a debt you owe, you do have the legal right to file a lawsuit against them. If you are successful with your lawsuit, you can recover certain damages, which include:

• Any actual damages you sustained as a result of the violation, such as lost income if you were fired after a debt collector phoned you repeatedly at work
• Statutory damages up to $1,000

Under the FCCPA, plaintiffs who are successful in their lawsuit can recover damages that include:

• Any actual damages you sustained as a result of the violation
• Statutory damages up to $1,000
• Court fees
• Attorney fees
• Injunctive relief
• Punitive damages, in some cases

Statute of Limitations on Debt Defense Lawsuits

When filing a lawsuit against a debt collector or creditor for violating the law, you only have a limited amount of time. This is another significant difference between the two sets of laws. Under the FDCPA, you have only one year from the date the violation occurred. If there were several violations, such as if a debt collector regularly called you late at night, the statute of limitations is one year from the date of the last violation.

The FCCPA provides borrowers additional protection in the statute of limitations, as well. Under this law, you must file a lawsuit against a debt collector or creditor within two years from the date of the last violation. Although the statute of limitations does differ between the two laws, one thing remains the same. If you allow the statute of limitations to expire, you will lose your right to claim any damages at all.

Our Consumer Debt Defense Lawyers in Broward County Can Help with Your Lawsuit

If a creditor or debt collector has violated the law while trying to collect a debt they allege you owe, our Broward County consumer debt defense lawyers can help. At Loan Lawyers, our seasoned attorneys have helped thousands of borrowers successfully fight back against creditors and debt collectors, and we want to help you, too. Call us now at (954) 523-4357 or reach out to us online to schedule a free consultation.

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What Is Cash for Keys in Florida Foreclosures?

A bank foreclosing on a homeowner behind on their mortgage payments may face a long, expensive legal process to get the homeowner out of the property. To avoid the time and cost of pursuing eviction proceedings, many lenders have been turning to ”cash for keys” agreements.

What Is a Cash for Keys Agreement in a Foreclosure?

In a cash for keys agreement, the bank or new owner of the property pays the current occupant to vacate the property peacefully and on time. A cash for keys agreement may be used in a Florida foreclosure proceeding where the bank has already obtained a foreclosure judgment and needs to evict the former owner. It can also be used when the homeowner is pursuing a deed in lieu of foreclosure.

When a property is sold at foreclosure, the bank or new owner is entitled to have the former owner off the premises by a certain date. If they refuse to leave, the new owner will need to pursue an eviction order from the court. To get the property back cheaper and quicker, banks and purchasers of foreclosed property may negotiate a cash for keys agreement with the former owner still on the property.

How Do Cash for Keys Agreements Work?

In a cash for keys agreement, the former owner is paid for leaving the property on time. This money is intended to help the previous owner move out by covering costs such as a security deposit for new living arrangements and moving expenses.

Along with leaving the property on time, the former owner also agrees to leave the property in a “broom swept” condition. This means they must remove all their possessions, clean the property, and not vandalize anything. When the previous owner vacates the home, the bank, purchaser, or their representative will usually inspect the property to make sure it has been left in the condition required under the agreement.

Benefits of a Cash for Keys Agreement

A cash for keys agreement provides a defaulted or foreclosed homeowner with money they can use to move out. Homeowners who have defaulted on their mortgage may not have the cash on hand to secure new living arrangements or pay for moving costs.

Banks or purchasers of foreclosed property benefit from cash for keys agreement by avoiding the time and expense of evicting a former property owner who is unwilling or financially unable to vacate the premises. The agreement also helps make sure the previous owner will take care of the property rather than damaging it before leaving.

Talk to an Experienced Foreclosure Defense Attorney in Fort Lauderdale, FL Today

If you are facing the prospect of foreclosure, a foreclosure defense attorney from Loan Lawyers is ready to help. Contact us today for a free, confidential consultation to learn more about your options and how our firm can negotiate cash for keys agreement on your behalf.

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How to Discharge Student Loans Through Bankruptcy

Discharging student loans through bankruptcy is so notoriously difficult, many people think it is impossible. Fortunately, that is not the case. However, successfully discharging your student loan debt does present certain challenges. In July of 2021, a federal appeals court in New York ruled that private student loans cannot be discharged in a Chapter 7 bankruptcy. Federal student loans, which account for $1.6 trillion of student loan debt, may be eligible for a bankruptcy discharge. To do it, you have to prove the loans place an undue hardship on you.

If your student loans have become unmanageable, it is important to know how bankruptcy works and if your debt is eligible for discharge. You also may have other options you might want to consider. Our Fort Lauderdale bankruptcy lawyer explains more below.

Understanding Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

If you cannot repay your student loan at all, you will have to file Chapter 7 bankruptcy. Not all student loans qualify for bankruptcy discharge when filing Chapter 7. You will also have to meet other qualifications, such as passing the means test. This test essentially shows that you cannot currently manage your debts and existing bills. If you successfully file Chapter 7, you can discharge your student loan debt along with any other debt you are struggling with.

In a Chapter 13 bankruptcy, your debt is reorganized into a repayment plan that is more manageable for you. Your student loan payments may be reduced and you might have three to five years to repay the full balance. Or, you may be able to get your student loan debts completely discharged in a Chapter 13 bankruptcy. Once the repayment period is over, you will have to repay the balance remaining on your federal student loans, unless you can prove undue hardship.

Proving Undue Hardship when Discharging Student Loans Through Bankruptcy

If you can prove that you have an undue hardship that prohibits you from repaying your student loans, you may qualify for a discharge. If you can prove a private loan did not provide an educational benefit, you may also qualify for a discharge. When establishing whether you have an undue hardship, the courts will typically use the Brunner Test. Under the requirements of the Brunner Test, you must establish:

• Making payments on the student loan would prevent you from maintaining a basic standard of living.
• Your strained financial situation is expected to last for an extended period of time.
• You have made an effort in good faith to repay your student loan before you filed for bankruptcy.

The above elements are extremely difficult to prove. Additionally, the Brunner Test is fairly subjective. Every state, and even every county, will have different standards when determining whether the Brunner Test applies.

The Brunner Test is not always the only one used to determine whether someone’s student loans are dischargeable in bankruptcy. Some courts will also consider the “totality of the circumstances.” This test examines the overall financial situation of the borrower and it is usually not as restrictive as the Brunner Test.

How to Discharge Student Loans Through Bankruptcy

If you need to discharge your student loan by filing bankruptcy, there are a few steps you must take.

You will need a considerable amount of documentation to prove undue hardship. You can help speed up the process by collecting your paperwork ahead of time. Collect your tax records, pay stubs, bills, and bank statements for the past two years. Gather as much documentation as you can that shows that your earnings are not enough to cover your expenses.

If you are trying to discharge a private loan, you will have to show that it did not provide an educational benefit. For example, you may discover that you did not cover the same curriculum as someone else in the same program at a different school. You may now have trouble finding work as a result. In this case, you may be able to show you did not receive an educational benefit and get the loan discharged.

You are not required to work with a bankruptcy lawyer in Fort Lauderdale, but it is always recommended that you do. Discharging student loans in bankruptcy is particularly complicated, so it is critical that you work with an attorney who has experience with these types of cases.

The bankruptcy courts will grant you a discharge if they feel there is a need. However, they do not want to discharge your debt only to find you back in bankruptcy court in the near future. To prevent this from happening, borrowers are required to complete a credit counseling session within 180 days before they file for bankruptcy. When you file your bankruptcy petition, you will have to include a certificate of completion issued by the program.

Once you have completed the credit counseling program, you can then file for bankruptcy. An attorney can help you through the necessary steps, which may include a meeting of the creditors and filing for an adversary proceeding. During the adversary proceeding, you will prove you have an undue hardship.

Bankruptcy Alternatives

If you do not qualify for bankruptcy, or you do not want to file, there are other options available. You may be able to switch your student loan repayment method to one of the four repayment plans available for federal loans that are based on your income. You may also qualify for the Public Service Loan Forgiveness program, or the Total and Permanent Disability (TPD) Discharge.

Our Bankruptcy Lawyer in Fort Lauderdale Can Help Get Your Student Loans Discharged

The cost of student loans continues to climb throughout the entire country. If yours have become unmanageable and you would like to get them discharged, our Fort Lauderdale bankruptcy lawyers can help. At Loan Lawyers, we know the challenges these cases present, and how to overcome them so you get as much debt discharged as possible. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.

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Tips to Help You Handle the Rising Cost of Living

Inflation in the United States remains at a 40-year high, and everyone is feeling the pinch because of it. People are paying more at the grocery store just to feed their family, and prices at the gas pumps continue to rise. As there is little to be done about these rising costs, as they are largely tied to the war in Europe, families have to figure out how to deal with the increased costs. Below, our Florida debt defense lawyer provides some tips on how to do just that.

Dealing with the Cost of Food

Over the past year, the cost of poultry, meat, eggs, and fish have risen by 14.3 percent. One of the best ways to deal with these rising costs is to invest in a chest freezer. The additional space will let you take even more advantage of these items when they go on sale, as you will have somewhere to store them. Keeping your pantry stocked can also make food more affordable as you always have beans, lentils, and vegetables on hand.

You may also be able to find food sales in unexpected places. More convenience stores and drug stores are offering fresh food options, and they are often cheaper than what grocery stores charge. When choosing a grocery store, warehouse clubs such as Costco typically offer better deals by allowing you to buy in bulk.

Dealing with the Cost of Fuel

Prices for gasoline dropped by 6.1 percent in April, but they are still 43.6 percent higher than the same time last year. The cost of fuel has largely been driven by supply chain bottlenecks and disruptions due to the war in Europe. According to AAA, gas prices have recently hit a record high of $4.40 per gallon. It is expected that gas prices will remain high during the summer driving season, but that they will start to drop by the end of the year.

There are many things you can do to reduce your fuel consumption and cut back on the price of gas. These include simple driving practices, such as removing any roof rack that could cause drag, driving evenly, and always following the speed limits. Many people have also decided to put off a road trip they were planning because they simply cannot afford the price of gas. It is useful to remember that different states will have different gas taxes. Before traveling to another state, check the difference in taxes between the two states and then fill up in the one with the lowest.

Dealing with the Cost of Major Appliances

Despite the fact that the cost of major appliances dropped 0.8 percent in April, prices still remain 12.1 percent higher than 2021 due to the supply chain and production slowdowns caused by the pandemic. There is still a major shortage of refrigerators, washing machines, and other major appliances, which is pushing up the cost.

Before shopping for a major appliance, first consider what you need versus what you would like. For example, choosing an appliance that has a stainless steel finish may cost less than a specialty finish because the latter finishes are not always readily available. As such, they will be more costly. Like with any other purchase, it is critical to shop around before you make your final decision. Consider researching prices at big box stores as well as independent retailers to determine where you will receive the best price and service.

Dealing with the Cost of Internet and Telephone Services

Telecom customers got a bit of a break early in the pandemic. The cost of wireless and telephone services only rose minimally, and some providers even gave customers a break by suspending data caps.

To keep the costs of these services down, start by looking for a cheaper cell phone plan. Internet providers often offer different wireless packages and yours may offer a discount if you bundle all of your services together. If your family is considered to be lower income, you may qualify for the federal Affordable Connectivity Program, which can help lower your monthly bills for the internet.

Streaming services such as Netflix are also increasing the cost of their services. However, by cutting the television cable cord, you can choose the streaming services that offer the programs you watch most and still save money.

Dealing with the Cost of Vehicles

The cost of new vehicles has soared by 13.2 percent over the last year due to the scarcity of computer chips, factory shutdowns, and even shortages of parts due to the pandemic. The cost of used vehicles has increased by even more, a staggering 22.7 percent.

The only real ways to offset the rising cost of vehicles is to research any vehicle you are considering very carefully, and ask yourself what value you will get for the cost. You should also check out publications that are trusted within the industry, such as Auto Trader, to find a good deal on a vehicle that will work for you and your family.

Also, do not focus on bargaining for a discounted price, something that was once fairly standard practice on car dealership lots. Many dealership lots are empty, or have only a few vehicles on them. As such, the purchaser has lost much of their bargaining power. It has also given car dealerships incentive to mark up vehicles even more. It is becoming more common for vehicles to be purchased well above the asking price. Instead of focusing on getting the lowest price for your vehicle, focus on getting a fair price.

Our Debt Defense Attorneys in Florida Can Help when Debt Becomes Too Much to Handle

Inflation has made it even harder for borrowers to get ahead, particularly when they were already struggling with debt. If your debt has become too much to handle and you cannot repay it, our Florida debt defense attorneys at Loan Lawyers can help. We can defend against lawsuits filed by creditors and debt collection agencies, and advise you of your other legal options. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.

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How to Handle Medical Debt

In recent years, the majority of people filing for bankruptcy have cited medical issues as one of the key contributors to their strained financial situation. Medical issues can cause a financial downfall in two ways. The first is the high cost of healthcare in the country, and the other is the time off from work people need to recover from their medical issues.

Although bankruptcy should always only be a last resort, it is easy to see why medical debt drives so many borrowers to it. On average, healthcare spending per person in the United States cost $11,945 in 2020. That is more than $4,000 more per capita than any other high-income country. If you are suffering from medical debt, our Broward County debt defense lawyer explains different ways to handle it below.

Be Proactive

Once you have received a costly medical treatment, there is nothing you can do about the debt incurred by it. To avoid future medical debt, you should always get quotes in writing. If you do not, the medical provider may charge you more than you had agreed to, and it may be for an amount you cannot afford.

If you have to receive treatment in a hospital, ask your medical team if they work out of network. For example, if you need surgery, you should ask your anesthesiologist if they are out of network. If they are, it means they do not have a contract with your insurance provider. That may result in your insurer not covering the procedure, and leaving you to pay it out of your own pocket.

Know What to Expect

If you fail to pay your medical bills, the hospital or your doctor’s office will first make many attempts to contact you regarding the debt. If you do not respond or pay the debt, it is then sold to a medical debt collections agency. Accounts are usually sold to these agencies once the debt has been unpaid for 60 to 120 days. After the agency has purchased your debt, they will then start to call you, email you, and they may even text you.

Continuing to ignore the debt at this point will hurt your credit score. The debt collection agency will report you to the credit bureaus, and the medical facility you originally owed the debt to may have also reported the debt. If you still do not pay the debt, the collection agency may then file a lawsuit against you. If they obtain a judgment against you, they can then garnish your wages, levy your bank account, and more to recover the debt.

It is important to note that even though a debt collection agency may have the right to file a lawsuit against you, there are certain actions they cannot take. Debt collectors are never allowed to harass, threaten you, or call you at unreasonable times.

Recent Changes to the Law on Credit Scores

While medical facilities and debt collection agencies can report your debt to the major credit reporting bureaus, there have been significant changes to the law recently.

As of July 1, 2022, the major credit reporting bureaus – TransUnion, Experian, and Equifax – will automatically remove paid medical debt from borrowers’ credit reports. This means if a medical debt has been paid, it will no longer be shown to anyone checking a person’s credit report and will no longer affect their score. Additionally, while medical facilities and healthcare personnel currently have to wait 180 days before they report an unpaid medical debt to the credit bureaus, that will increase to one year. Lastly, if your medical debt is less than $500, it will not impact your credit score.

Review Medical Bills for Mistakes

If you receive a medical bill or expenses you did not expect, it may have been billed in error. Call your doctor and ask them how the procedure was coded, as miscoding is a big problem in the healthcare industry. These mistakes can cost patients thousands of dollars. You may have also been billed twice for the same procedure, or the hospital fees may be erroneous.

Medical billing errors can become very expensive. You have the right to ask for an itemized bill so you can review it looking for mistakes that need correcting.

Negotiate Medical Costs

People often think that medical bills are non-negotiable, but that is not true. You may be able to negotiate with your medical provider for a lower amount. Debt collection agencies are also very accustomed to negotiating the debt of borrowers.

Medical providers and debt collection agencies are willing to negotiate the debt for many reasons. In many cases, they would rather receive a guaranteed lump sum, even for a lower amount, than risk not recovering anything on the debt at all. They may also discount the debt if you make a down payment and then pay the rest of the balance slowly over time. If you are uninsured, the healthcare facility may be even more willing to negotiate your total balance.

Consider Bankruptcy

Filing bankruptcy is never anyone’s first choice, and it never should be. However, it is an option that can help when you are suffering from a significant amount of debt you do not think will be able to repay. Before you file, consider the decision very carefully. A bankruptcy can remain on your credit report and affect your credit score for up to ten years, which may be much longer than the medical debt you initially owed.

Call Our Debt Defense Attorney in Broward County

At Loan Lawyers, our Broward County debt defense attorneys know the strain medical debt can put on your finances. If you have debt you cannot pay, we can negotiate the balance with medical providers and debt collection agencies. We can also advise on whether bankruptcy is a good option for you and if so, help you throughout the entire process. Call us now at (954) 523-4357 or reach out to us online to schedule a free review of your case.

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Why You Should Avoid a Zombie Foreclosure

ATTOM recently released their “Vacant Property and Zombie Foreclosure Report for Q2,” which showed that 1.3 million residential properties throughout the country are vacant. To put that in perspective, that represents 1.3 percent of all homes in the United States, with one in 76 homes sitting empty. If you are facing foreclosure, it is important that you speak to a Fort Lauderdale foreclosure lawyer before packing up and leaving your home. You likely have many more options than you think. Below, our seasoned attorney explains why you should avoid a zombie foreclosure.

What are Zombie Foreclosures?

When a homeowner abandons their property after receiving notice of a foreclosure, but the lender never completes the foreclosure process, that is considered a zombie foreclosure. It is natural for homeowners to want to walk away from a property they cannot afford, but the consequences of doing so are significant.

Regardless of what happens before a court gives a lender permission to foreclose on your property, your name will still be on the title. That means you still legally own the property and are still legally responsible for it. If you hold the title to a zombie property, you have what is known as a zombie title.

Since you will still hold the title of the property, you are still financially responsible for it until the foreclosure process is finalized. If the lender never forecloses on your home, it will never be sold and you will remain responsible for any property taxes, maintenance, and other financial issues that may come up.

Why Do Lenders Abandon Foreclosures?

There are many reasons why lenders start the foreclosure process only to eventually abandon it. The lender may have decided that the repairs and upkeep are too costly, or there may be too many back taxes owed on the property. Lenders sometimes find it difficult to sell a foreclosure property and they may not think a sale would provide enough funds to cover the debt owed. Generally speaking, if lenders simply think a foreclosure will not be worthwhile for them, they will stop the process.

If your lender has notified they are going to foreclose on your home, it is important to know this can happen to you. The pre-foreclosure proceedings do not necessarily mean your lender will complete the process. Until you receive a court order, you are still responsible for paying the mortgage.

Your Lender Does Not Have to Notify You the Foreclosure Stopped

You may think that because you have not heard from your lender that they are abandoning the foreclosure, they intend to move forward with the process. This is not always true, though. Lenders do not have a legal obligation to tell you that they are not going through with the foreclosure, or that you are still legally responsible for the home. Even if your lender tries to contact you to inform you of the status update in the case, they may not be able to reach you if you have left the home quickly.

A Zombie Foreclosure Can Haunt You for a Long Time

When you are still named on the title of the home, you are responsible for paying taxes, dues, fees, and fines.

First, you are still responsible for any property taxes owed on the home. Over time, these property taxes can build up and if you do not pay them, the city can sue you for them. To determine if you owe property taxes, you should check your tax documents or contact the assessor’s office in your county.

If your home is controlled by a homeowner association (HOA), you are likely also responsible for paying HOA dues. You are still responsible for paying these dues even if you leave the property but the title is still in your name. If you do not pay the dues, the HOA can file a lawsuit against you to recover unpaid assessments.

Zombie foreclosures often fall into disrepair because there is no one looking after the property and caring for it anymore. This can become an eyesore, and one that your municipal government may not look kindly on.

Realizing that the property has been abandoned, they may pay the cost of garbage removal, repairs, yard maintenance, and more. The municipality is not going to be willing to pay for these costs and so, they will bill you for them. They may also fine you if the property is not in compliance with zoning laws, housing codes, or municipal ordinances. Just like any other expenses associated with the home, you are responsible for these fines if your name is still on the title.

A Zombie Foreclosure Can Hurt Your Credit

Any time a due, fine, or fee goes unpaid, it will end up on your credit report. If your credit score undergoes a significant reduction, it can make it even more challenging to obtain credit or a loan in the future, at a time when you really need it. Although you will not be able to purchase a new home for many years after a foreclosure, this also holds true with zombie foreclosures.

Zombie Foreclosures Hurt Neighborhoods

When a neighborhood contains a zombie foreclosure property, it can bring down the value of the rest of the homes in the community. Abandoned properties mean that crime is more likely to occur there. Squatters and criminals looking for a place to buy or sell drugs may use the property, knowing that no one is caring for it. Due to the fact that zombie foreclosures also fall into serious disrepair, the home can become unsightly, which will also cause surrounding property values to drop.

In Pre-Foreclosure? Our Foreclosure Defense Lawyers in Fort Lauderdale Can Help

If you are facing foreclosure, it is important to know that you have many legal options. At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys can advise you on what those are and give you the best chance of a successful outcome. Call us now at (954) 523-4357 or reach out to us online to schedule a free review of your case.

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Is Debt Settlement or Bankruptcy Right for You?

When you are struggling with a large amount of debt and do not know how you will pay it off, you do have options available. Two of these that are often pursued by borrowers are bankruptcy or a debt settlement. Each of these options can make it easier for you to repay the debt, or even potentially allow you to become debt-free. Debt settlement is very different from bankruptcy, though, and both options have their own advantages and drawbacks. Below, our consumer debt defense lawyer in Broward County outlines what these are.

What is Debt Settlement?

A debt settlement is an agreement between you and your creditors to repay a lower amount than what is owed. Usually, a debt settlement will also include a repayment plan that allows you to make affordable payments over a certain amount of time. It is important to note that not all creditors will be willing to agree to a debt settlement.

Additionally, while there are debt settlement companies that can negotiate for you, it is always best to work with a consumer debt defense lawyer. Debt settlement companies are for-profit businesses, and they are not always honest or ethical. If you hire a lawyer, you will know you are working with someone who is bound by ethics and must comply with certain rules and standards. A lawyer will also have the necessary experience to negotiate with your creditors on your behalf and creditors are often more willing to work with borrowers who have legal representation.

It is often recommended that you start considering a debt settlement even before you fall behind on your payments. Creditors are often more willing to work with proactive borrowers, and you may also be eligible for a hardship program offered by your creditor, which will make it easier to manage your payments.

What is Bankruptcy?

There are two main types of bankruptcy consumers file when they are struggling with debt. The first is Chapter 7 bankruptcy, which is the most common type. During a Chapter 7 bankruptcy, your non-exempt property is sold to repay your creditors. If you are successful with your case, most if not all of your debt is discharged. Not everyone qualifies for Chapter 7 bankruptcy, though, and you will have to pass a means test showing that you are unable to repay your debt.

Individuals who do not qualify for Chapter 7 bankruptcy can file for Chapter 13 bankruptcy. During a Chapter 13 bankruptcy, you do not lose any of your property but you do repay at least a portion of your debt. The debt you are currently carrying is reorganized into a repayment plan that will make it easier for you to make payments and eventually become debt-free. You typically have three to five years to repay all of your debt.

Debt Settlement: The Pros and Cons

Before deciding if a debt settlement option is right for you, it is important to consider the pros and cons of this method. The pros of a debt settlement are as follows:

• A debt settlement agreement that works for you: If you work with an experienced consumer debt attorney who has relationships within the industry, you may get a stronger settlement offer that is more affordable for you.
• Confidentiality: Regardless of the type of bankruptcy you file, it will have to go through the courts, which means it becomes a matter of public record. A debt settlement is a private negotiation, so future employers and others who may perform background checks will never know about it.
• Better for your credit: If you have gotten behind on bills and are struggling with debt, your credit score has already likely taken a hit. With a debt settlement, any debts currently on your credit score will remain there for seven years. However, that time becomes much longer in bankruptcy, which could stay on your credit report for as many as ten years.

Unfortunately, few things in life are perfect. Debt settlement can have some downsides too, and they are as follows:

• It is not a quick fix: Even though a debt settlement will allow you to manage your debt easier, it may also include a repayment plan that can take several years.
• The forgiven debt is taxable income: If a creditor forgives a certain portion of your debt, it becomes taxable income, meaning you will have to pay taxes on it.
• Potential lawsuits: With a debt settlement, creditors can sue you before an agreement is reached, or if you do not make payments as part of the program.

Bankruptcy: The Pros and Cons

Bankruptcy, too, has many pros and cons. The biggest benefits of bankruptcy are as follows:

• Eliminate most of your debt: Through a Chapter 7 bankruptcy, you can discharge most of your unsecured debt, such as medical bills and credit card debt.
• Collection calls will stop: With either type of bankruptcy, a judge will issue an automatic stay at the beginning of your case. This prohibits creditors and debt collectors from contacting you to try to recover the debt.
• No taxes: The debt discharged in bankruptcy is not considered taxable income, so you do not have to pay taxes on it.

The biggest drawbacks to bankruptcy are as follows:

• Hit to your credit score: Regardless of which type of bankruptcy you file, your credit score will take a hit and the bankruptcy will show on your credit report for up to ten years.
• You cannot discharge all debt: Some types of debt, such as alimony, child support, tax debt, and student loans are not dischargeable during bankruptcy.
• Public record: Few people will bother to check the public record to see if you have ever filed bankruptcy, but it could hinder certain opportunities for you, such as employment.

Our Consumer Debt Lawyers in Broward County Can Advise on Your Case

No one can determine whether bankruptcy or a debt settlement is right for you without first fully reviewing the facts of your case. At Loan Lawyers, our Broward County consumer debt lawyers can advise on the best way to handle your debt, and help you through whichever option is right for you. Call us now at (954) 523-4357 or reach out to us online to schedule a free consultation.

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How Long Will It Take to Pay Off a Student Loan?

The average borrower will take approximately 20 years to pay off their student loans. Of course, the amount of time it takes to become free of student loans will depend on a borrower’s employment and financial situation, the type of school they attended, and the degree they earned while in school. Although no one can determine how long it will take you to pay off your student loans, there are some guidelines you can follow, and ways you can repay your student loans faster.

The Type of Degree Matters

The level of degree you earned, as well as the costs of your education, will have a direct impact on how long it takes you to repay your student loans. If you attend a private school or pursue postgraduate opportunities, you may have to take out additional student loans, which will mean they will take longer to pay off. The approximate length of time it will take to repay student loans for public colleges, by degree, are as follows:

• An Associate’s degree: Just over four years
• A Bachelor’s degree: Just over five and a half years
• A Master’s degree: Nine years
• A Doctorate: 5 years
• A professional degree: Just over 27 years

When taking out a student loan, you will have to choose a repayment plan and that will directly affect the length of time it takes to repay the debt. If you choose a plan that has a shorter term, the monthly payments you make will be higher, but you will pay off your student loan debt faster. If you choose a repayment plan with a longer-term, or the plan is income-based, it will likely take longer to repay your debt, but your monthly payments will be lower.

How Much is the Average Student Loan Payment?

In 2019, the average borrower paid between $200 and $299 a month on their student loan. The amount paid also depends on the type of degree earned, as the more education one receives, the costlier a student loan is. The average payments made on student loans, by degree, are as follows:

• An Associate’s degree: Just under $400
• A Bachelor’s degree: Just over $500
• A Master’s degree: Just under $700
• A Doctorate: Just over $800
• A professional degree: Just over $800

Seeing just how high student loan monthly payments can be, it is no wonder that collectively, 42.9 million people throughout the country owe $1.56 trillion in federal student loan debt alone, according to the Department of Education. Fortunately, there are ways you can pay off your student loans sooner, and become free of the burden of debt.

Limit Borrowing

It is tempting to take out as much student loan debt as you are approved for, but it is essential that you only borrow the actual amount you need. The fewer student loans you take out, and the lower the amounts are on those loans, the faster you will be able to repay the debt. Another way to limit the amount you have to borrow is to consider what type of post-secondary institution you will attend. The difference in cost of attending a public school versus attending a private institution is tens of thousands of dollars.

Applying for scholarships can also help offset the cost of school and therefore, the number of student loans you have to take out. Even small scholarships that provide even just $1,000 will make a significant difference in the amount of time it takes to repay your student loan. If you can earn a scholarship, no matter how big or little, it will reduce the amount of your student loan, and the interest that you pay on it. Speaking of interest, if you can pay the accruing interest on your student loan while you are still attending school, even though it is not usually required, that can also reduce the amount of time it takes to repay your loan.

Pay More than Required

As with all debts, it is always better to pay more than the required minimum payment when repaying your student loans. If you can increase the amount you pay every month, even slightly, you will gradually chip away at the principal balance and can pay off your student loan faster. Also, if you get a raise or some other type of windfall, paying that towards your student loan can also reduce your balance, allowing you to repay the loan sooner.

When making additional payments, make sure you speak to the servicer of the loan first. You need to make sure that the extra payment will be applied to the principal balance, and not the interest you owe or the payment for the next month.

Apply for Loan Forgiveness

Sometimes, repaying your student loan is simply not possible and when that is the case, you should look into many of the student loan forgiveness programs that are available today. Some employers offer student loan forgiveness options, military student loans are often eligible for a certain amount of forgiveness, and the Public Service Loan Forgiveness program is another option available for many. If you have chosen an income-driven repayment plan, you may also qualify for the remainder of your loan to be forgiven after you have made payments for 20 to 25 years. Certain volunteer programs also offer student loan forgiveness for those who serve with them.

It is important to research any student loan forgiveness program you are considering. These programs typically have eligibility requirements depending on the number of payments you will make towards your student loan while in the program, the field you work in, and the timeliness of your loan payments.

Have Trouble Repaying Your Student Loan? Our Debt Defense Lawyers in Fort Lauderdale Can Help

Student loans are a big problem throughout Florida and the entire country. If you cannot repay yours, it is important to know that you have options. At Loan Lawyers, our Fort Lauderdale debt defense attorneys can explain what they are, so you become debt-free as quickly as possible. Call us now at (954) 523-4357 or reach out to us online to schedule a free consultation.

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