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Tag: debt relief

  • Biden’s student loan forgiveness plans can advance, judge rules

    Biden’s student loan forgiveness plans can advance, judge rules

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    A federal judge in Georgia declined to block President Joe Biden’s second attempt at broader debt relief and transferred that case to a Missouri federal court. The move could open the door for more than 20 million Americans to see their student loans debt discharged.

    Brad Smith sits down with Betsy Mayotte, president and founder of the Institute of Student Loan Advisors, on Wealth! to discuss what the news means for borrowers.

    “I’m certainly more cautiously optimistic than I was. We have to remember that the judge is just sort of moved this to a different court. So the fight is not over yet, but it is possible that some borrowers may see some see some relief sooner rather than later,” Mayotte tells Yahoo Finance.

    She says, “Because of what’s been happening over the last couple of years with these Republican states and these types of debt relief, I do expect they will probably try to file another suit. The question is whether they can show that they have standing and if they can’t, then this debt relief can go forward and it may be able to go forward in the meantime.”

    “It’s important to clarify that what this relief does for most borrowers. It’s not going to forgive all their loans. The most borrowers that would benefit from this would be people who owe more now than when they first went into repayment. And with this debt relief would do was sort of bring them back to where they started, [rather than] forgive the whole thing. There are some borrowers that who have been paying for decades that would get full relief, but most people that would get this benefit would just sort of see them be brought back to where they started, which is still a great thing.”

    For more expert insight and the latest market action, click here to watch this full episode of Wealth!

    This post was written by Naomi Buchanan.

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  • Mass. pays off $14.6M in college loan debt

    Mass. pays off $14.6M in college loan debt

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    BOSTON — More than 700 health care workers will have millions of dollars in student loans paid off under a taxpayer-funded state repayment program aimed at easing workforce shortages.

    The program, which launched in 2022, pays off up to $300,000 in college loans for eligible health care professionals in a variety of disciplines, including dental, medical, mental health and substance abuse.

    The state Executive Office of Health and Human Services, which oversees the MA Repay program, announced a new round of disbursements this week totaling $14.6 million.

    The latest round of loan repayments specifically targets direct care human service workers, supervisors and home health professionals, the agency said.

    Health and Human Services Secretary Kate Walsh said the program provides “meaningful student loan relief to our dedicated human service and home health professionals.”

    “Their work is vital to our communities, and these loan repayment opportunities are one way we can show how much we really value the people who do these important jobs,” she said in a statement.

    The repayments are the latest under the program, which was approved as part of a $4 billion pandemic relief bill signed by Gov. Charlie Baker in December 2021.

    The loan repayments are aimed at recruiting and retaining new workers in a sector of the state’s health care system that is traditionally among the lowest paid.

    Under the program, psychiatrists are eligible for up to $300,000 if they are employed full time and $150,000 if they work part time. Psychologists can have up to $150,000 in loans repaid if they are full-time workers, $75,000 if they work part time.

    Nurses, nurse practitioners, advanced practice nurses, physician assistants and social workers with master’s degrees who are employed in mental health settings can receive $25,000 to $50,000. Workers in those professions with bachelor’s degrees can get between $15,000 and $30,000.

    Those who qualify must commit to working for at least four years in the state under a “service commitment” to receive the financial relief. That employment can be with up to two employers, according to the program’s requirements.

    To date, the state has repaid $117.5 million in college debt for health care workers under the program, according to the state agency.

    The Healey administration is planning another round of disbursements through the program totaling $61 million and targeting behavioral health workers. The agency began accepting applications earlier this month.

    The state’s loan repayment program comes as federal efforts to ease the impact of crushing college debt – including President Joe Biden’s federal loan forgiveness program which was rejected by the U.S. Supreme Court – have been shot down amid court challenges.

    In 2023, the U.S. Department of Education launched a policy called the Saving on a Valuable Education, or SAVE, plan, which it touted as “the most affordable repayment plan ever created.” The plan is estimated to cost about $156 billion over the next 10 years.

    But Biden’s loan forgiveness plan is in jeopardy as he prepares to step down from office in January and a recent federal court ruling siding with Republican-led states that sued to block the program.

    The plaintiffs, which include Alabama, Florida and Missouri, argue that the Biden administration exceeded its legal authority by enacting the student debt relief plan.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Personal loan versus line of credit: Which should you choose? – MoneySense

    Personal loan versus line of credit: Which should you choose? – MoneySense

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    Personal loans vs. lines of credit

    With a personal loan, you borrow a single (fixed) amount of money from a bank or other lender. In return, you agree to pay back the principal plus interest over a certain period of time. This is called “installment credit.” Often, personal loans are for specific expenses. For example, you might apply for a car loan to buy a vehicle, or a debt consolidation loan to reduce your debt. Personal loans can be secured with collateral or unsecured, and the amount you’re eligible to receive is tied to your credit history and financial picture.

    When you’re approved for a line of credit, the bank, firm or lender extends a certain amount and you can borrow on an as-needed basis. Whatever you pay back, you can access the credit again, just like with a credit card. This is called “revolving credit.” You can use the money for any purpose you wish. Just like with loans, lines of credit can be secured or unsecured. 

    Here are the key differences at-a-glance.

    Personal loan Line of credit
    Type of credit Installment (non-revolving) Revolving
    Payment schedule A fixed amount over a fixed time period. As-needed, with a minimum monthly payment if you borrow
    Interest rates Fixed or variable Usually variable, and tied to the Prime Rate (which is currently 6.45%.)
    Interest applicability On the whole loan Only on what you borrow
    Extra fees Transaction or service fees Transaction or service fees
    Uses A need specified when applying Any purpose, no need to reveal

    Pros and cons of a personal loan

    Here are the pros and cons for personal loans.

    Pros

    • Interest rates can be lower than with credit cards
    • The fixed payment schedule ensures your loan will be repaid by a certain date.

    Cons

    • Typically higher interest rates than the majority of lines of credit.
    • To use more credit you have to refinance the loan or get a separate loan.
    • Lenders may charge fees for administering the loan.
    • There might be limitations on what you can spend the money on. A car loan is only for the purchase of a vehicle, which may seem obvious, but other loans may only be used for renovations or debt consolidation. 

    Pros and cons of a line of credit 

    Here are the pros and cons for lines of credit.

    Pros

    • Typically have lower interest rates than personal loans.
    • Interest is only charged on the portion of credit used.
    • There is no fixed term so you can pay it off at any time without penalty (as long as you pay the minimum monthly amount).
    • The credit is “revolving”, meaning that once you pay it back you can borrow again without refinancing.
    • You can use the money for any purpose.

    Cons

    • Interest rates are variable, based on the prime rate, so the loan rate will fluctuate. For example, you might have a line of credit where the interest rate is prime + 1.5%. As the prime rate changes, so will the total interest on your line of credit.
    • Lenders often offer the maximum amount which can make it easy to overborrow. 
    • As there is no fixed payment schedule, you must manage repayment on your own. 
    • A secured line of credit against your home (like a HELOC) will require a one-time appraisal as well as legal fees. 

    How interest rates work for loans and lines of credit

    The interest you pay on a personal loan or a line of credit will depend on many factors including the lender, your credit history, the terms of the credit and the prime rate (in the case of variable interest). That said, these are the variables you can negotiate to get the best rates. 

    For a personal loan:

    • Interest rate
      Look for the lowest rate available to you, and decide whether you prefer a fixed or variable rate. 
    • Fixed or variable rate
      Loans most often incur a fixed rate, meaning that the interest is the same throughout the term of the loan. With a variable-rate loan, the interest rate will change in the same direction as the prime rate. 
    • Secured or unsecured
      You might negotiate a lower interest rate if you can secure the loan with collateral, such as a home. 
    • Amortization period
      Amortization is the amount of time you take to pay off the loan and can range from six months to 60 months (five years) for personal loans, reports the Financial Consumer Agency of Canada. Adjusting your amortization period might affect your interest rate.
    • Fees or penalties
      Loans come with fees. With personal loans, for example, you may pay a penalty if you pay it off early.

    For lines of credit:

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    Keph Senett

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  • What happens if you don’t use your credit card? – MoneySense

    What happens if you don’t use your credit card? – MoneySense

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    If you find that you no longer need the credit, review any potential closure fees before deciding to cancel the card, too. Instead, you could look into downgrading the card, transferring balances, or using the card at least once a year for a small purchase to keep the account active.

    The impact of dormant cards on your credit rating

    Letting a credit card go dormant can impact your credit score in a few ways. As noted above as a con, if you don’t use a card for a long time, your credit issuer might close the account, which reduces your total available credit limit. For example, if your total credit limit drops from $10,000 to $8,000 with the account closure but your spending remains at $2,000, your utilization ratio rises from 20% to 25%. A higher ratio can negatively affect your credit score because it suggests you’re using more of your available credit.

    Having a mix of different credit types—such as credit cards, student loans, mortgages and car loans—helps maintain a healthy credit score. If a card is closed, you lose some of this diversity, which can also impact your score.

    Consistent on-time payments are crucial for maintaining good credit. Even if a card is dormant, missing payments can damage your score. To avoid this, pay more than the minimum payments on your credit cards and make all payments on time, every time. 

    It is important to review your credit report and score at least once a year to make sure there are no errors. You can obtain your credit report and score through Canada’s two credit bureaus, Equifax and TransUnion, a third-party service, or your bank’s website or mobile app. Even without any errors, regularly checking your report can help you better understand how your financial habits can affect your score and helps you see ways to improve it and manage debt better.

    Should you ever stop using your credit card?

    If you’re worried about letting your credit card go dormant, there are a few alternatives. Consider transferring balances from other credit cards or look at downgrading and switching to a no-fee version of the same card. Both of these options keep your account open and your credit utilization ratio low.

    You can also keep the card active by using it occasionally for small purchases, setting up a small recurring charge on it, or making it your go-to card for a regular expense, like buying gas. This helps keep your account in good standing without much hassle.

    How many credit cards is too many?

    There isn’t a set rule for how many credit cards Canadians should have in their wallets. The number of credit cards that is right for you depends on what you can afford to spend and pay back on time. Remember, it’s not just about the number of cards you have, but how responsibly you use them. 

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    Sandy Daykin

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  • Biden administration to notify 25M student loan borrowers of debt relief options

    Biden administration to notify 25M student loan borrowers of debt relief options

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    WASHINGTON — The Department of Education will send an email to Americans with student debt on Wednesday, laying out options for how roughly 25 million could have some, or all, of their debt canceled this fall.

    The email is the first step of the Biden-Harris administration’s proposed rule announced in April – and still being finalized – for narrower, targeted debt relief.

    The proposed rule has been in the works as a plan B ever since President Joe Biden’s initial effort to cancel some or all debt for 43 million people was overturned by the Supreme Court last summer.

    If it’s implemented as drafted, and survives the expected Republican-led lawsuits, it could give some amount of debt relief to 25 million people, on top of the nearly 4.8 million people that have already had their debts canceled under Biden’s tenure.

    Education Secretary Miguel Cardona will outline in the email the pathways for debt relief — most of which are targeting people with runaway interest or who have been paying their debt for over two decades — and inform borrowers that they have until August 30 to inform their servicers if they’d like to opt-out.

    The Education Department “is in the process of finalizing who will be eligible for student debt relief, but we want to make you aware of this potential relief,” Cardona writes in the email.

    Biden, in a statement on Wednesday, said the goal is to notify borrowers of the upcoming debt relief programs in advance, so they can “benefit swiftly once the rules are final.” Moving quickly to get relief out the door is sure to be important to the program’s success, given the barrage of lawsuits from Republicans on any debt relief or student loan system reform Biden has attempted so far.

    “Despite attempts led by Republican elected officials to block our efforts, we won’t stop fighting to provide relief to student loan borrowers, fix the broken student loan system, and help borrowers get out from under the burden of student debt,” Biden said.

    Biden’s hallmark reform to student debt repayment, the SAVE Plan, was put on hold by a court earlier this month after Republicans argued it was overstepping the administration’s authority. The plan has been touted as the most affordable loan repayment plan for borrowers, tying monthly payments to borrowers’ incomes and allowing debt relief after 10 years for people who took out small initial loan balances.

    Here is who the latest debt relief plan would apply to, under this new plan.

    The largest group will be people who have runaway interest, which is more than half of all borrowers. Roughly 25 million people owe a larger debt now than when they initially took out their loans due to ballooning interest. The new rule would not cancel their loans entirely, but rather reduce or cancel the interest that’s built up, according to a draft rule of the plan.

    Some people would get up to $20,000 of interest canceled, while those who make below a certain income — $120,000 as a single person or $240,000 as a married couple — will get their entire runaway interest canceled.

    The Department of Education estimated that over 90% of people, or roughly 23 million, will fall into the second bucket and be fully reset back to their initial loan amount.

    The second largest group will be people who have been paying down their loans for 20 years or more, but still haven’t paid it off. This could apply to 2.6 million borrowers, the Department of Education estimated. People would be eligible if they have undergraduate loans they’ve been paying since or before July 1, 2005, or if they have graduate school loans they’ve been paying since or before July 1, 2000.

    The rule will also provide debt relief to a few hundred thousand people who already qualify under programs like Public Service Loan Forgiveness but have never applied, and to those who paid for a degree from a school that didn’t provide students with the financial security it advertised.
    A vaster component of the rule, which would evaluate borrower “hardship” as a qualifier for debt relief, is also still in the works but not likely on the same timeline.

    Copyright © 2024 ABC News Internet Ventures.

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    ABCNews

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  • Canadian consumer debt: How we’re paying for our credit cards – MoneySense

    Canadian consumer debt: How we’re paying for our credit cards – MoneySense

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    What is causing debt for Canadians?

    Matthew Fabian, director of financial services research at TransUnion Canada, said many household incomes are not keeping up with inflation and higher interest rates, leaving them to rely on credit.

    “Consumers that have had significant increases in their mortgage payment have made that deliberate trade-off to pay less on their credit card and in some cases, they’re missing their payment,” Fabian said in an interview. “We’ve seen a higher delinquency rate in credit cards for those consumers that have mortgages than traditional credit card consumers.”

    How much debt do Canadians have?

    Total consumer debt in Canada was $2.38 trillion in the first quarter, compared with $2.32 trillion in the same quarter last year, and down only slightly from a record $2.4 trillion in the fourth quarter. The report said 31.8 million Canadians had one or more credit products in the first quarter, up 3.75% year-over-year. The jump was mainly driven by newcomers and gen Z signing up for their first credit products. The report showed there was a 30% surge in outstanding credit card balances for the gen Z cohort compared with the previous year.

    “The younger generation (is) only getting access to credit for the very first time in their life,” said Fabian. “They’re still learning how to use it, they’re still learning what it means to pay your monthly obligations.”

    Meanwhile, millennials held the largest portion of debt in the country—about 38% of all debt—likely due to higher credit needs as they grow older, according to the report. “They’re in the life stage where they’re probably having children, getting houses and have auto loans,” Fabian said. “The structure of the debt is shifted where 10 years ago, the majority of them would have had credit cards and car loans.” (Read: “How much debt is normal in Canada? We break it down by age”)

    Are mortgages in Canada at risk for defaults

    Fabian said he isn’t overly concerned about households falling behind on their mortgage payments because of the strict screening process established by the banking watchdog to qualify for a mortgage. He also said cash-strapped consumers will typically pay their mortgage first at the expense of other credit products like their auto loan or credit card. 

    Even though there are concerns about missed payments among the vulnerable population, Fabian said, “We’re still seeing pretty decent resiliency in the Canadian consumer base, especially when you look at how quickly it’s grown with gen Z and the volume of credit participation.”

    He added interest rate cuts, which are anticipated as early as June, can lessen the burden on households over time. “Our expectation is that the market will start to correct back to normal,” Fabian said.

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    The Canadian Press

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  • After surpassing $100M in ARR, Harness Labs grabs a $150M line of credit | TechCrunch

    After surpassing $100M in ARR, Harness Labs grabs a $150M line of credit | TechCrunch

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    Harness Lab isn’t founder Jyoti Bansal’s first startup. He sold AppDynamics to Cisco for $3.7 billion in 2017, the week it was supposed to go public. His latest venture has raised $425 million, per Crunchbase.

    On Tuesday, Harness announced $150 million in debt financing, essentially a line of credit that the company can draw on as needed. It could be the final private financial step before an eventual IPO. It’s worth noting that the company took another round of debt financing of $55 million in 2022. 

    Harness has built a soup-to-nuts toolset for software development teams that includes a CI/CD pipeline, code repository, developer portal and infrastructure as code support, among other things. The company hinted that it will use the financing to build or buy other pieces for the toolset.

    Bansal says they were looking at different ways to raise money, and he saw debt financing as a way healthy public companies access additional capital. “We’ve been looking at what is the best way to raise capital, and if you look at a public company, most of the public companies have access to debt — and that’s what they would be raising as a very healthy business,” Bansal told TechCrunch.

    He also says it’s an efficient way to raise capital because they don’t have to give up any equity; this could be a good final raise before the next logical step. “We think we can take this loan all the way to an IPO. We don’t need any to raise any more equity. Who knows, we may end up doing it, but we don’t need to, and we can go from here to an IPO without additional investment,” he said.

    The business appears to be well set up for that next big step: It surpassed $100 million in ARR last year, a signal that the company is sustainable and around for the long term. Bansal says that the revenue has continued to accelerate beyond that milestone.

    The company recently hired a chief revenue officer, and it has a chief financial officer in place: all signs that the company is thinking ahead to an IPO.

    Bansal has set three criteria for being successful: Harness Labs wants substantial revenue, accelerating far beyond the $100 million it hit last year; it wants to be efficient because Wall Street is demanding it now; and it wants to be high growth. If Bansal continues to steer the business with those three goals, he thinks that will eventually lead to going public.

    “An IPO is just a milestone of operating as a company. It’s not as though the IPO is an exit. It’s the first step in becoming a public company,” he said. “So whenever the gates are open, and we are ready, we just want to be in the right financial position, that our business is strong, and that it has all the right elements to it.”

    And for Bansal, who sold his previous startup just before going public, being the head of a public company is something he aspires to. “That’s the next challenge, which I’m excited about,” he said.

    The $150 million debt line comes from Silicon Valley Bank and Hercules Capital, Inc.

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    Ron Miller

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  • What happens if I don’t pay my credit card bills?  – MoneySense

    What happens if I don’t pay my credit card bills?  – MoneySense

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    If you’re struggling to make your minimum credit card payments, you’re not alone. Unexpected emergencies can sometimes leave us short on funds to make the minimum payment on a credit card. According to Equifax Canada’s 2023 Market Pulse Consumer Credit Trends and Insights report, nearly 35% of Canadians carry balances on their credit cards from month to month. However, there are potential consequences for not paying your credit card bill on time. So here are the steps you can take to minimize the impact.

    Note that credit card companies may respond differently to missed payments, ranging from a tersely worded letter to potential legal action, depending on your issuer and your situation. In this article, we’ll explore the implications and ways to manage your credit card debt.

    What are the immediate consequences of not paying a credit card bill?

    If you don’t pay your minimum credit card balance, there could be different outcomes depending on the type of credit card you carry and the credit card issuer. Missing a couple payments will usually result in a hit to your credit score, as well as penalty fees like late charges and potentially a higher interest rate. If you miss more than one payment, the credit card company may also close your card. 

    Review your credit card agreement to ensure you are aware of your obligations and any potential penalties. If you miss payments, the credit card company may do any or all three of the following, according to the Canadian government:

    1. Revoke promotional interest rates.
    2. Increase interest rates in general.
    3. Cancel the credit card.

    Will my credit score be impacted if I don’t pay?

    Payment history is the biggest factor in calculating your credit score, so a late or missed payment can definitely impact it. Your credit score indicates creditworthiness for lenders, meaning it influences the loans you may qualify for, the interest rate you’ll pay, what you can buy on credit, and maybe even where you work and where you live. 

    Typically, one missed payment won’t end up on your credit report for at least 30 days after the payment due date. If you make the payment before that point, you might incur penalty fees, but your credit score likely won’t suffer. However, if you don’t pay your credit card for longer than that, your credit will take a hit and hinder your ability to qualify for certain financial services in the future.

    Interest increases and penalty fees on missed card payments

    Depending on the terms and conditions of your credit card, you may have to pay a late fee if you miss a payment. Penalty fees can depend on your balance and what’s outlined in the credit card agreement. 

    In addition, you might face a penalty annual percentage rate (APR) if you miss payments by at least 60 days, resulting in a higher interest rate being applied for a period of time. And that can grow your debt even higher. These terms differ depending on the credit card issuer. 

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    Randolph Taylor

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  • Couples and credit scores: How your partner’s credit can affect yours – MoneySense

    Couples and credit scores: How your partner’s credit can affect yours – MoneySense

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    Should I get a joint credit card with my partner?

    While your partner’s credit score won’t directly impact your credit score, joint accounts or adding the other as a co-applicant will. The one exception is adding your partner as an authorized user to your credit cards and banking accounts. 

    When added as an authorized user, your partner is able to use the credit card but cannot make any changes to the account. Their credit will also not be impacted in any way. However, when a partner is added as a co-applicant, they have to go through the required credit checks and both partners’ credit is impacted based on usage of the account.

    Joint accounts can be beneficial when both partners are on the same page with money. For example, a joint account can give you access to a larger borrowing limit. It also can simplify your finances and foster feelings of partnership. However, depending on your partner’s money habits, sharing a joint credit card could be a real risk to your money and your credit score.

    If either of you miss a payment on a joint account or run up a large balance, each of your credit scores can take a hit. On the other hand, if you and your partner always make your payments on time, both of you will see improvement in your credit scores as the joint account will show up on both of your credit reports. 

    Getting extra credit through a joint credit card might seem like a good idea, be sure to assess each of your financial situations before doing so as gaining new credit can influence financial behaviours. Be critical about how having more or less credit affects your ability to live within your means and pay off your debt in full each month. If you or your partner have any debt, the focus should be on paying it down. Only consider a new, joint credit card if you have paid off your individual debts first.

    How to maintain healthy credit history (and prevent debt) as a couple

    Before combining finances in any way, such as joint credit cards or loans, it is imperative that you and your partner are in agreement and have the same expectations. To maintain healthy credit and prevent debt, consider the following five things: 

    1. Make sure your partner is someone you can trust to properly budget by having open and transparent conversations about money. 
    2. Set boundaries on how the joint account or loan will be used, as well as spending limits. Some couples ensure they both agree on a purchase beforehand, whereas others may check in at the end of the month to ensure all spends are accounted for—it’s good for catching credit card fraud, too, since you never assume it was the other person.
    3. Agree on who will make payments to ensure they’re made on time.
    4. Decide the amount you each will contribute to shared expenses. Will it be 50/50 or a percentage based on your incomes?
    5. Discuss what happens if one of you can’t make a payment due to income loss or illness. What’s your backup plan?

    Money isn’t worth fighting about—but it’s worth talking about

    Discussions about finances aren’t always easy. They might cause stress, tension and arguments with your partner. But, the more you practice communicating with honesty and intention, it does become easier. 

    None of this is to say your partner having a sub-par credit score should be a deal breaker. In fact, it’s fairly simple to start rebuilding credit. As professionally certified credit counsellors with Credit Canada, we often help couples understand their credit and address debt. If you need additional support, contact us today to book a free credit-building counselling session.

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    Sandy Daykin

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  • What does opening or cancelling a credit card do to my credit score? – MoneySense

    What does opening or cancelling a credit card do to my credit score? – MoneySense

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    To close a credit card, the balance is $0. If there’s a substantial balance on the remaining cards, it’s going to increase the credit utilization ratio. And, if the increase is high enough, it will hurt your credit score. This is because the closed card’s unused credit limit no longer provides balance in the relationship between your other credit balances and credit limits. What you owe elsewhere can have a bigger impact than if you had a zero-balance credit card.

    Another thing: Closing an account means the creditor will stop reporting on your behalf your credit history on that card. If the card showed positive credit history, such as responsible usage and making payments on time, that history will gradually fade away and no longer bolster your credit score. 

    The reverse can’t be said. If the card showed negative credit history, closing the account will not erase the negative impact on your score. 

    Generally speaking, cancelling a credit card won’t improve your credit score, and you shouldn’t close a credit card unless you have a good reason, such as not trusting yourself to use the credit responsibly.

    Buyer beware: Welcome offers

    Many credit cards come with a generous sign-up bonus that helps you earn cash back, points, miles or a reduced interest rate. Welcome offers can be a great way to save money, especially if you already had planned on spending the minimum threshold to earn them. However, proceed with caution. 

    Read the fine print. Despite the enticing welcome offer of a credit card, your credit score may drop when you apply for a new card as a hard inquiry will be performed during the application process. Although your credit score will only drop a couple of points and will likely recover after a few months if you make your payments on time, it’s still a hit to your credit.

    Remember that welcome offers are one-time deals. While some credit card sign-up bonuses may save you money up front, the reality is that any rewards you earn aren’t worth incurring additional bills if you’re already struggling with debt. You should only consider a new welcome offer if you have paid off your credit card debt in full. If you have any debt, focus on paying that down—not short-term wins like getting a lower and very temporary interest rate.

    Opening and closing credit cards can impact how you use credit, too. Open multiple new cards, and you may end up with more credit than you can feasibly handle or keep track of. In addition, the allure of welcome offers may distract you from your financial goals. There’s impact on your credit score, and it’s critical to think about how having more or less credit affects your ability to live within your means and pay off your debt in full each month.

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    Doris Asiedu

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  • The risks of credit repair companies in Canada – MoneySense

    The risks of credit repair companies in Canada – MoneySense

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    Some companies claim they can repair your credit and solve your debt problems quickly. However, you can only rebuild credit and there’s no quick fix to do so. We’ll walk you through why you should be skeptical of companies offering credit repair services and explore other ways to rebuild and maintain strong credit. 

    The importance of strong credit in Canada

    It’s important to have a good credit score so you can get a loan, be approved for a credit card, buy a home and a car. And you want to get the best interest rates when doing so. A credit score may also determine whether a landlord approves your rental application, and employers might even consider credit histories in their hiring process. Having a strong credit score shows you are good at managing debt and credit. In contrast, bad credit suggests you are a risky bet to lenders because you may be having problems with money. 

    Why someone might reach out to a credit repair service

    The average Canadian owes more than $21,000 in consumer debt. When you have a lot of debt and other monthly bills to take care of, it can become difficult to manage and make all of your payments on time, especially amid high inflation and rising costs of living. However, if you don’t manage your payments on time, your credit score will take a hit. Feeling desperate in a financial situation can cause anyone to make a bad decision. But many people run into further financial problems by trying to repair their credit with a quick fix.

    How credit repair companies work

    Credit repair companies say they will repair your credit by removing negative information from your credit report, thus boosting your credit score—for a costly, upfront fee. They may also offer to negotiate with credit reporting agencies to improve your credit score or encourage you to take out a high-interest loan to pay off your debts. Be aware that these credit repair companies make money from fees, set-up costs and interest, so you may be left with even more debt without any changes to your credit score.

    These companies often take advantage of the fact that many Canadians don’t know you can’t remove accurate information from your credit report—even if it’s bad. You should be skeptical if a company says they can remove accurate, negative information from your history.

    Pay attention to the warning signs

    Many Canadians run into further financial problems as they attempt to “repair” their credit because they fall victim to credit repair scams. Credit repair services are different from not-for-profit credit counselling agencies. The latter are typically a free service offering non-profit financial education and advice. But back to the scams, here are the warning signs that a company offering credit repair services is likely a scam: 

    • They request an “upfront” payment (this is illegal under Canadian consumer protection laws)
    • They offer instant approval for loans or other credit products without fully understanding your financial situation
    • They call themselves a “credit repair company” 
    • They request payment by gift cards
    • They use high-pressure sales tactics
    • They say they “erase” your negative credit information
    • They don’t provide a transparent contract (or any contract at all)
    • They warn you against contacting a credit bureau

    How to rebuild your credit in Canada

    Accurate negative information on your credit report cannot magically go away; it’s there until it falls off your credit report, which takes about six years. If your credit report isn’t great, the only way you can go about “fixing” it is by rebuilding it with a positive credit history. You have to show your creditors that your financial habits have improved, which takes time. Here’s what you can do to get the ball rolling: 

    1. Review your credit

    It is important to review your credit report regularly by getting a free copy of your credit history from both Equifax Canada and TransUnion. Look over the report to see what’s documented and if the information is correct. For no charge, you can remove incorrect information by filing a dispute with the credit reporting company.

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  • Supreme Court Strikes Down Student Loan Forgiveness Plan

    Supreme Court Strikes Down Student Loan Forgiveness Plan

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    In a 6-3 ruling, the U.S. Supreme Court struck down the Biden administration’s plan to forgive billions of dollars in federally backed student loan debt, a decision that means millions will have to start making student loan repayments later this year. What do you think?

    “I did exactly what society told me to do, so I deserve to be punished.”

    Graeme Ballinger, Census Alphabetizer

    Pope Francis Declares Nothing Wrong With Guy Giving Buddy Tug Job After Few Drinks

    “What message does it send young people if education doesn’t carry huge risks?”

    Rochelle Meeks, Loot Appraiser

    “Americans need to buckle down and inherit some money.”

    Mason Linder, Unemployed

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  • Brett Kavanaugh Rules Against Loan Forgiveness Plan Citing Precedent That All Debts Mysteriously Vanish

    Brett Kavanaugh Rules Against Loan Forgiveness Plan Citing Precedent That All Debts Mysteriously Vanish

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  • Biden Rips Lawmakers Who Pushed Billions In PPP Grants Now Bashing Student Debt Aid

    Biden Rips Lawmakers Who Pushed Billions In PPP Grants Now Bashing Student Debt Aid

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    President Joe Biden took off the gloves Friday in a speech pummeling Republican lawmakers who backed massive federal subsidies for business owners, including themselves, during COVID-19 but are now complaining about his student debt forgiveness program.

    “Who in the hell do they think they are?” Biden asked to applause during an appearance at Delaware State University, where 75% of students are recipients of Pell Grants geared toward lower-income college applicants.

    “I don’t want to hear it from MAGA Republicans who had hundreds of thousands of dollars of debts, even millions of dollars, in pandemic relief loans forgiven, who are now attacking me for helping working-class and middle-class Americans,” he railed.

    Georgia GOP Rep. Marjorie Taylor Greene and her husband “got over $180,000 in business loans forgiven,” Biden noted.

    He also bashed Sen. Ted Cruz (R-Texas) amid loud boos from the audience. Cruz had criticized the student debt program for helping people he dismissed as “slackers.”

    “Republican governors wrote me a letter saying this relief only helps ‘the elite few.’ Y’all know you’re the elite few? I knew you were really special, but no, you’re the elite few,” Biden added in a dig at the politicians.

    The application process for student debt relief that’s expected to aid some 40 million Americans was launched this week after surviving a court challenge. Supreme Court Justice Amy Coney Barrett rejected a challenge to Biden’s program by a Wisconsin taxpayers’ group.

    But late on Friday, a federal appeals court issued an administrative stay temporarily blocking the program. The 8th U.S. Circuit Court of Appeals issued the stay while it considers a motion from six Republican-led states to stop the loan forgiveness program and ordered the Biden administration not to act on the program while it considers the appeal.

    Biden has previously skewered critics of student debt relief for eagerly supporting the federal Paycheck Protection Program that forgave $742 billion dollars of $792 billion in loans handed out to business owners to help them weather the pandemic business downturn. The handouts weren’t restricted by a recipient’s wealth or income.

    Many of the same lawmakers attacking student debt relief also helped pass former President Donald Trump’s massive 40% tax cut for corporations in 2017.

    Biden’s program would provide up to $10,000 in standard debt cancellation for borrowers who earn less than $125,000 a year. Couples who file taxes jointly and earn less than $250,000 annually will also be eligible.

    Pell Grant recipients, who make up the majority of borrowers, would be eligible for an additional $10,000 in debt relief. The plan is expected to cost as much as hundreds of billions of dollars over the next 10 years.

    Twitter users weighed in approvingly after Biden took aim at Republicans like Cruz and Greene.

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  • Top 10 Jungle Explains Debt Relief: Your 5 Choices in the Financial Jungle

    Top 10 Jungle Explains Debt Relief: Your 5 Choices in the Financial Jungle

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    “Debt is an issue that can spiral out of control in a short period of time. The only way to tackle rising debt is to take action.”

    Press Release
    –


    updated: Jan 16, 2018


    DALLAS, January 16, 2018 (Newswire.com)
    –
    ​Top 10 Jungle, a Dallas-based provider of online reviews and slick digital content, offers tips for people who are struggling with too much personal debt. In an article titled, “Debt Relief: Here Are Your 5 Choices In The Financial Jungle,” the company breaks it down and explains the five primary paths that can move you from the red to the black.

    “Debt is an issue that can spiral out of control in a short period of time. The only real way to tackle rising debt is to take action,” said Charlie Rose of Top10Jungle.com, “Although it can be incredibly difficult to face up to the fact that you’re in trouble, the sooner you take steps in the right direction, the better. Many of us are ostriches when it comes to our finances, but being honest and open is the first step to overcoming debt. When you start to take incisive steps, you’ll realize that there is help out there and there is a way out.”

    Debt is an issue that can spiral out of control in a short period of time. The only real way to tackle rising debt is to take action. Although it can be incredibly difficult to face up to the fact that you’re in trouble, the sooner you take steps in the right direction, the better. Many of us are ostriches when it comes to our finances, but being honest and open is the first step to overcoming debt. When you start to take incisive steps, you’ll realize that there is help out there and there is a way out.

    Charlie Rose, Top 10 Jungle Analyst

    Debt is a common problem, but that doesn’t make it any less daunting for those who are having trouble keeping their heads above water. If you are struggling with debt, there are options out there that can help you pay off outstanding bills, cards, and loans and get back into the black. Not all options are suited to everyone, and this is why it’s so beneficial to consider different methods listed below and speak to experts about your individual situation. 

    1) Paying Off Your Debt In Monthly Installments

    2) Debt Settlement

    3) Debt Consolidation

    4) Debt Management or Counseling

    5) Bankruptcy

    Top 10 Jungle recently added popular companies such as Pebblestone Financial, Peak Lending Network, Timberline Financial, and Lafayette Funding to its list of covered companies.

    ABOUT TOP 10 JUNGLE

    Top 10 Reviews

    Top 10 Jungle collects reviews and provides rankings for popular categories such as debt consolidation, personal loans, medical alerts, VPN, Anti-Virus Software, Small Business Loans, Pet Insurance, Web hosting, Website building and much, much more.

    Best Rated Products

    The Best Rated Products Division is where you want to look when you are about to make a purchase. We cover a wide range of products from the best-rated laptops, tablets, smart home devices, modems and e-Readers to the latest book you just have to read. We are adding categories daily. Our purpose is to make it easy to pick the best product and to be confident in your decision.

    We have something for everyone at Top 10 Jungle and best of all — it’s free!

    For press inquiries or partnership opportunities, please contact Benny Alvarez (benny@top10jungle.com).

    Source: Top 10 Jungle

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