Tampa Student Loan and Bankruptcy Lawyer Blog — February 25, 2020
I read in the Pomp Letter today that the average credit card debt is $21,000. The average interest rate is 28,6%. Wow. In 30 months the debt would have doubled. In our bankruptcy practice in Tampa, Florida we regularly see people with 100k credit card debt. You could get a windfall, such as a new job that pays more or an inheritance. Even if you got a new job that paid much more, you’d still have to put money aside quickly to pay off your debt. During the foreclosure crisis, we met a lot people who believed that they would be able to catch up as soon as they began working again. Didn’t happen. Even a $20k pay increase is not enough to get you from paycheck to paycheck
. The balances grew or remained the exact same with the high interest rates. It’s best to speak with a bankruptcy lawyer in your area. They are very different. We see all sorts of misconceptions. I know that someone’s credit rating is important. Did you know that a credit score of 800 or more doesn’t matter if you have maxed out your account? Or the financial conditions of the economy in general cause less credit to offered. I can’t bring my self to pay it back because it has zero percent interest. I haven’t looked at the paperwork but I imagine if I missed a payment, the interest could go up from the beginning. Read your loan docs. Keep an eye out for your auto payments. Guess who is responsible when automatic payments aren’t made. I understand the risks, even though 0% interest is appealing. The only way that the finance company can make money is if I default. Maybe I should pay off the loan to avoid the risk. What about those who got 0% a few year ago and couldn’t pay it back?
By way of the way, if bankruptcy is filed, the 0% loan will not be honored. You can either reaffirm the debt and keep the vehicle, or, if the vehicle is underwater and you cannot afford the payment, surrender it. Buy what you can afford. Sustainability is important. At least be aware of your options. See what we can offer you if you live in the Tampa Bay region, including Hardee County, Hernando County, Hillsborough County, Manatee county, Pasco county, Pinellas county, Polk counties, and Sarasota counties.
