Millions of Americans are in debt. In fact, according to a 2015 report by the Pew Research Center, 89 percent of individuals ages 36 to 51 and 86 percent of individuals ages 20 to 35 are in debt. From a home mortgage and student loans to credit card and medical debt, many individuals age 50 and younger will spend the rest of their lives attempting to pay off debt.
A job loss, health emergency or unexpected car repair can result quickly result in an individual accruing thousands of dollars in debt. For the millions of Americans who struggle each month to pay the bills, it’s easy to become overwhelmed and to feel hopeless. While it’s often very easy to fall behind and accrue debt, high interest rates make it exceedingly difficult to pay down or off debt.
According to the Institute for College Access & Success, 69 percent of public and nonprofit college graduates have student loan debt, the average amount of which totals in excess of $28,000 per student. Combined, U.S. college graduates have accrued massive amounts of student loan debt to the tune of $1.2 trillion dollars.
With the introduction of major credit card companies like Visa and MasterCard in the mid-1970s, the U.S. public fell in love with the concept of having it now and paying for it later. Since that time, the credit card industry has grown into a multi-billion dollar one, with the average U.S. consumer having four credit cards with an average total household balance of nearly $8,000.
"New York state court administrators said Tuesday they have finalized rules designed to ban the collection of debts that consumers did not incur, have already paid off or which have been extinguished by the passage of the six-year statute of limitations. Chief Judge Jonathan Lippman said the new rules will reduce instances where abusive and aggressive collectors-often holding debts that have changed hands several times over several years-seek default judgments against consumers in court based on incomplete or erroneous documents.
"In Shea v. Commissioner the U.S. Tax Court decided in favor of the taxpayer, a developer of planned residential communities, and allowed the taxpayer to defer the recognition of income from the sale of homes under its completed contract method of accounting for long-term home construction contracts until 95% of the costs of the development were incurred. That is, in applying the "95% completion" test, the subject matter of the contract was considered to be the entire development or phase of a larger development and not each individual house and lot. Thus, the allocable costs attributable to the subject matter of each contract included the costs of common improvements and amenities of the development, in addition to the costs of the house and lot. This decision addresses a long-standing controversy in this area and could help other builders and developers that currently are using the completed contract method to defer income related to home construction projects."
Being in debt is stressful. When you’re behind on bills and credit card payments, your debt sometimes get sold to third-party collectors, who begin calling you constantly. If you missed or did not get a notice that your debt was being sold, you may have no idea who is behind these harassing calls meant to collect money from you.
There are many ways to gauge the nation's financial health. One of these measures is the average household credit card debt. This is thought to be a good way to view the level of financial health among our country's households across the board. But is this measure really as accurate as it's made out to be?
There are many ways in which New York residents could find themselves in a big financial hole. Spending on credit cards can quickly spiral out of control with interest charges and late fees, for example. Moving money around to pay credit card bills could leave you short on a mortgage payment; continual nonpayment of mortgage payments could send you down the road to foreclosure.
Many Long Island residents are struggling with debt, but some of the worst problems are borne by the young, working poor who have been saddled with debt from health care costs and student loans. These people are seriously in need of debt relief.