The state of American Consumer Debt

Thank you nerdwallet for this great overview of the current state of American Consumer Debt.

It would appear that American consumers have become more conservative in their accumulation of debt.  Like all economic news, its a double edged sword.  Less spending slows down the economy overall, while less debt strengthens a families financial safety net.

The numbers are a bit skewed due to a small percentage of households being in a huge amount of debt, and a large number of households with no debt at all.

The average American household debt is just under $15,500.

U.S. household consumer debt profile:

• Average credit card debt: $15,480
• Average mortgage debt: $156,474
• Average student loan debt: $33,424

In total, American consumers owe:

• $11.74 trillion in debt
  • An increase of 5.% from last year
• $872.2 billion in credit card debt
• $8.24 trillion in mortgages
• $1,131.7 billion in student loans
• An increase of 14.2% from last year

	Total Credit Card Debt	Average Household Credit Card Debt	Average Indebted Household Debt
May 2014	$872.2 billion	$7,221	$15,480
Change from April	0.21%	0.14%	0.14%
Change from May 2013	1.83%	1.01%	1.01%
Change from April, annualized	2.46%	1.65%	1.65%

	March 31, 2010	December 30, 2012
Total revolving debt	$906.7 billion	$849.8 billion
Number of U.S. households	116,716,292	119,397,330*
Average credit card debt per household	$7,768	$7,117*
% of households with a credit card balance	43.2%	46.7%
Average credit card debt per indebted household	$17,630	$15,257

Marcadis Singer, PA

Florida Debt Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

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Tampa; Number 3 best city for job seekers

 

The Great Recessions’ Impact

Throughout the two year course of the Great Recession, Tampa by itself lost 140,700 jobs. In effect of this, job seekers outnumbered job openings by a significant amount. One would expect that in order for structural unemployment to be a part of overall the unemployment, there would have to be a consistent number of labor shortages in some areas due to unsuitable applicants. But unfortunately this is not the case. Unemployed workers proved to significantly outnumber job openings in every sector. This meant that the main issue of the Great recession wasn’t the lack of correct workers, but instead the lack of jobs.

The Study

A WalletHub study expressed the rankings of the largest cities in order based on 13 different metrics. These metrics included industry variety, employer-provided health benefits, costs of living and job openings per capita. The organization of this list was based on the strength of the job markets within each city, as well as the greatest prospects for long term financial security within each job opening.

The WalletHub study shows that Tampa was ranked the number 3 best city for employment in the nation,  number 8 for best paid after the cost of living was taken into account, and number 9 for the most diverse industrial mix.

While Washington D.C. ranked number one on this list, two other Florida cities on the list included Jacksonville at number 35 and Miami at number 30.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

http://www.marcadislaw.com

Q&A Regarding the handling of debt.

Everyone would get and stay out of debt if it were that easy.

However, with the current outstanding consumer debt at nearly $3 trillion – there are definitely some problems. 

Common Questions Regarding Debt

Question: Is it wise to borrow from my IRA or 401k to pay off debt?

Answer: By looking for the money to pay off debt, you ignore the reason you’re going into debt. It is highly suggested to fix your current problems before looking for a final solution to your debt.

Question: A former spouse was assigned specific debts during our divorce but has not paid them and is ruining my credit? What should I do?

Answer: As a joint owner of an account creditors have the legal right to attempt to collect debt owed from you. Not to mention that the charge-off of the debt will remain on your credit report. It would be best to contact your attorney and ask about having your ex held in contempt for not obeying the divorce decree.

Question: Can my Social Security benefits be garnished?

Answer: Banks are required, by the U.S. Department of Treasury, to protect federal benefits from being garnished. However, the federal benefits must be directly deposited into the bank account and the protected amount is restricted to the total of two previous months of benefits deposited prior to the garnishment order.

Question: After my fiancée and I are married will her creditors seek me for her bills?

Answer: The sole responsibility of any debts accrued is of the owner of the debt after marriage. If you share a joint bank account with her and her creditors sue in court, then it is possible that the funds can be garnished from the bank account.

Question: How do I protect my credit if I co-signed a loan for my relative and he has stopped paying what is owed?

Answer: It will likely be in your best interest to make payments on the loan. As the co-signer you have a responsibility towards the loan and can collect from you.

Question: My debt is past the statute of limitations. Why is it still being reported on my credit report?

Answer: The statute of limitations varies on what kinds of debt and debt by state. Regardless, it has nothing to do with the reporting your credit.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245

http://www.marcadislaw.com

How Taxes Can Impact Your Credit

How Taxes Can Impact Your Credit

It’s that season, and we are all (hopefully) eagerly awaiting out tax refund.

There are a few cautions regarding the impact of taxes on your credit.

1. Adding New Debt to Pay for Taxes

Creating additional debt to pay your tax obligation will probably show up on your credit report.  In the long run, it is far better to show a loan on your credit, than a tax lien, but it is still worth noting that the loan to pay your taxes may have an adverse impact on your credit score.

2. Quick Refunds

Tax Preparers and others provide a “quick Refund”  which is really a loan, and usually a loan with very high interest.   Often, you will be offered a larger loan as a line of credit at the same time.  Some providers, like H&R Block, will report that loan, and any late payments to credit agencies.

3. Tax Liens

If you owe too much to the IRS, and can’t pay it back, you might be facing a Tax Lien.  This will have a horrendous impact on your credit scores.  If you get a tax lien, paying it as quickly as possible (assuming the rest of your credit is good) will improve your scores again.

4. Bankruptcy because of taxes

Your tax debt is not forgiven in bankruptcy, however, if you file for bankruptcy for relief from your other debts, in order to pay your tax bill, expect an extreme negative impact on your credit score for 7 to 10 years!

5. Identity Theft.

The IRS reports you got your refund, but its not in your account??  You probably are the victim of identity theft.  Identity theft has run rampant in recent years.  While there are means of cleaning up your credit after identity theft, you can expect a long and tedious process will ensue.

Marcadis Singer, PA

Florida Collection Attorney

5104 South Westshore Blvd.

Tampa, Florida 33611

info @ marcadislaw.com

(888) 547-1881

(813) 288-1881

New Clients 

Ext. 247 Gil Singer

Ext. 240 Ralph Marcadis

Existing Client Client Liaison

Ext. 242

To Pay a Claim

Ext.  245