DCA Rise Beyond Debt

Is Debt Consolidation the solution?

Many people turn to debt consolidation as a way to pay off debt.

Consolidation means borrowing money to pay off all the other debt at a lower interest rate.

Consolidating debt might be good for some people, but it is not for everyone.

Sam has a $23,325 credit card balance at 24% interest.

She gets a side job, and starts making monthly payments of $671.01.

After five years she has paid $16,935.77 in interest and made total payments of $40,260.77.

If Sam consolidates her debt from a 24% credit card to a 16% loan, she is looking at paying $567.22 per month.

Over five years she will pay $10,708.12 in interest and total payments of $34,033.12.

She might have been hit with some hidden fees in the loan terms, but we are being generous here.

In this case, consolidating her loan saved her $6 227.65 ($40,260.77 - $34,033.12).

If Sam came to DCA, we might suggest debt settlement.

We guarantee that Sam's $23,325 credit card debt can be reduced to $13 995. Sam would pay 13.995 plus 2400 in fees, for totals payments of 16,395.

To compare:

If Sam continues to pay her credit card at 24% she would pay $40,260.77.

If Sam consolidates her loan at 16% she would pay $34,033.12.

If Sam calls DCA she would pay 16,395.

What do you think Sam should do? (888) 984-2322.

Mary Cossey filed for bankruptcy.

Since bankruptcy cancels out debt, she decided to go shopping.

Mary charged over $240,000 during the course of her bankruptcy for personal expenses including multiple vacations, luxury clothing and accessories, and jewelry.

The FBI, IRS and The U.S. Department of Justice did not like that.

Mary committed fraud. She pleaded guilty.

Now she must pay $81,159.97 in restitution.

Many people mistakenly think that they can file for bankruptcy and get away with a free shopping spree.

Bankruptcy may be a good idea for some people, but it comes with conditions. Not fulfilling those conditions can lead to a bad situation.

If you are struggling with debt, we can provide solutions. 888 984 2322

https://www.justice.gov/usao-ndin/pr/mary-cossey-enters-guilty-plea

Mary Cossey Enters Guilty Plea Department of Justice U.S. Attorney’s Office Northern District of Indiana FOR IMMEDIATE RELEASE Tuesday, August 31, 2021 Mary Cossey Enters Guilty Plea HAMMOND-Mary Cossey, age 54, of Munster, Indiana, entered a plea of guilty to one count of wire fraud before United States District Court Judge Ph...

Many "experts" say:

Generation Z doesn't save money. They will soon be deep in credit card and student debt.

Millennials are deep in credit card debt. Many are living in perpetual credit and student loan debt.

Generation X doesn't save for retirement. They might not live in debt, but do use credit cards for vacations and special events.

Baby Boomers avoid risk. They don't take on debt as a rule. But, medical debt can hit them as a surprise.

A lot has been written about generations and debt.
While generalizations may have some truth to them, at DCA Rise Beyond Debt, we see everyone as an individual.

You are more than a stereotype or a statistic.

Whatever your generation, we are here to help you get out of debt. 888-984-2322.

Image by Cmglee.

Many parents are drowning in student debt while putting kids through college.

The Daily Herald reports that parents borrow 1 out of every 3 dollars of federal undergraduate loans.

$103+ billion in loans

3.6 million borrowers.

9% default rate within two years of leaving school.

Many parents have called DCA with challenging situations.

One parent called in saying she borrowed $42,000 a year for 4 years ($168,000 plus interest) because she want to give her daughter the best education she could afford.

At the time, Mary just got a promotion as the hotel manager at a leading resort.

She was making a six-figure salary, and thought little of taking on the debt.

Then Corona came. She lost her job, and is still unemployed.

She has a hard enough time paying her own bills, let alone her daughter's college debt.

She started using credit cards just to pay for basic necessities.

Her situation got worse.

The student loans, interest and credit cards had ballooned into $250,000.

She contemplated bankruptcy.

A friend suggested that she turn to DCA.

We negotiated with her lenders, and cut $210,000 off of her debt - leaving a balance of only $40,000

We even got her a payment plan for the remaining balance.

If someone you know is facing student debt, suggest that they call us today. 888-984-2322.

https://www.dailyherald.com/business/20210829/pay-for-your-kids-college-3-times-to-think-twice

Pay for your kid's college? 3 times to think twice About 1 in every 3 dollars the federal government lent for undergraduate education last year were in a parent's name. But parents who want to help their children pay for college often fail to do the math.

16 percent of su***des in the US occur in response to a financial problem according to the Aspen Institute.

If someone you know is struggling with and , give us a call today. You could save a life. 888-984-2322.

https://www.aspeninstitute.org/blog-posts/hidden-costs-of-consumer-debt/

The Burden of Debt on Mental and Physical Health In the US alone, individuals who struggle to pay off their debts and loans are more than twice as likely to experience mental health problems, including depression and anxiety.

Should you use your 401(k) to pay off credit card debt?

CNBC says that paying it off now will save you a lot in interest, but beware of taxes and penalties.

They don't want you to know about slashing your debt by negotiating with the credit card companies.

We cut credit card bills in half everyday. 888-984-2322

https://www.cnbc.com/2021/08/24/should-you-use-a-401k-to-pay-off-credit-card-debt-what-experts-say-.html

Should you use your 401(k) to pay off credit card debt? What the experts say Those with persistent credit card balances may be tempted to dig into their retirement savings to knock out the debt.

The National Education Association found 42% of teachers with over a decade of experience still have student debt.

45% of all teachers have student debt, hindering their ability to build up emergency savings.

This debt is putting retirement in jeopardy for both older teachers and teachers aged 18-35.

https://news.yahoo.com/astronomical-increases-student-debt-keeping-143945477.html

The 'astronomical' increases in student debt are keeping 42% of teachers with over a decade of experience from paying off their loans A National Education Association report found nearly half of teachers have student debt. It's impairing retirement, savings, and going to the doctor.

College Students with Medical Bills

Shay Webb, 22, a University of North Carolina-Wilmington graduate student earning a master’s in clinical research and product development, thought she was covering her bases when she purchased a university-sponsored policy in 2017 as an undergrad.

She got the policy to help offset the out-of-pocket expenses for her Type 1 diabetes not covered by a parent’s insurance policy.

After moving onto campus, Webb was diagnosed with rheumatoid arthritis.

She believed the student policy would help cover her increasing medical expenses.

Several months later, she learned her claims weren’t being processed.

The insurer told her it would not pay the claims because she was not attending class in person even though she had remained a full-time student, lived on campus and had no say in whether classes were online or in person.

The online program was part of the university’s effort to simulate the real-world experience of professionals in her field.

“I was just in shock,” Webb said. “No one had ever told me.”

Webb and her family were left with thousands of dollars in unexpected medical bills.

https://www.usnews.com/news/health-news/articles/2021-08-23/headed-away-to-school-heres-what-students-with-health-issues-need-to-know

Headed Away to School? Here’s What Students With Health Issues Need to Know College and grad students with chronic health conditions as common as asthma and diabetes may need to clear hurdles to make sure their health needs are covered by insurance if they go to school far from home.

Bradley T. Klontz, Psy.D., CFP is an expert in financial psychology, behavioral finance, and financial planning.

He tells CNBC "We develop money scripts – our beliefs about money – in our attempts to make sense of our financial flashpoints.

Many of our scripts around money lie outside of our conscious awareness.

They are passed down to us by our parents, our grandparents, and our culture.

They are like scripts in a play, often written for us by someone else.

Some of these scripts serve us well while others set us up for chronic financial failure."

At DCA Rise Beyond Debt, we help people overcome their beliefs about debt.

We negotiate with credit card companies to reduce balances everyday. Call us at 888 984 2322 today.

https://www.cnbc.com/2021/08/23/op-ed-why-your-financial-issues-make-perfect-sense-to-a-psychologist.html

Op-ed: Why your financial problems make perfect sense to a psychologist To straighten out our twisted financial lives we need to first understand our relationship with money. This is where your financial psychology comes in.

Alex Kearns committed su***de because he though he owed $750,000.

If someone you know is struggling with debt, we can help. Call us today at 888 984 2322.

https://www.cbsnews.com/news/alex-kearns-robinhood-trader-su***de-wrongful-death-suit/

Alex Kearns died thinking he owed hundreds of thousands for stock market losses on Robinhood. His parents have sued over his su***de. In the wrongful death suit, Alex Kearns' parents accuse the company of targeting unsophisticated traders like their son.

Andréa Ceresa said she may have to declare bankruptcy soon.

She has paid off about $23,000 in medical bills so far, but she faces $133,000 more for a nine-day hospital stay in November.

Since she contracted Covid-19 a year ago, Ceresa has joined the ranks of those who still struggle with various manifestations of the coronavirus.

She's also one of a growing number of Americans who can't afford their medical bills.

While scientists continue to study the numerous ways people can get sick from Covid-19, Ceresa's symptoms, which have never abated, have run the gamut: from troubled breathing and low blood pressure to migraines, brain fog, rashes and more.

Each symptom seems to come with another referral to another specialist, she said, and with it, another bill.

Like the many sick or ailing Americans who have taken on copious amounts of medical debt during the pandemic's economic crisis, Ceresa, a former dental office manager in New Jersey, hasn't been able to go back to work even as the bills pile up.

https://www.nbcnews.com/politics/politics-news/medical-debt-engulfing-more-people-pandemic-takes-its-toll-n1265002

'I either lived or died': Medical debt burdens more amid pandemic job losses "I wake up in the middle of the night thinking about it. I just can't believe it's come to this," said one woman with long-term Covid symptoms.

Forbes writes: "...employees who completed su***de had depression and anxiety, excessive debt, higher impulsivity and poorer social support..."

https://www.forbes.com/sites/bryanrobinson/2020/09/05/grappling-with-the-rise-of-work-related-su***de-during-the-pandemic-how-to-support-yourself-and-fellow-coworkers/?sh=3aa9cdb148d2

Grappling With The Rise Of Work-Related Su***de During The Pandemic: How To Support Yourself And Fellow Coworkers Su***de has become a global health crisis and the 10th leading cause of death in the United States. The rate of work-related su***de has risen with the onslaught of the pandemic, but there are steps you can take to support yourself and your fellow employees.

Melanie Lockert shares her story with Allure:

I graduated from New York University in 2011 full of hope — and also with a good chunk of student loan debt.

At the time, I owed $68,000 despite having made payments on my undergrad loans for the five years prior.

A year later, that hope dissipated and I was in a full-fledged depressive episode.

I ended up in Portland, Oregon, after my dreams of getting a full-time job in the arts in New York City didn’t pan out.

In Portland, I could only find temp work, making between $10 and $12 per hour.

This was not exactly how I envisioned my life with a master’s degree from my “dream school.”

Making so little and owing so much felt overwhelming.

I felt a mixture of shame, guilt, depression, and all-consuming anxiety.

How was I ever going to pay back this debt?

I believed with so much confidence that my life would be better with a master’s degree and I’d be able to pay back the debt with ease.

That was not the case.

https://www.allure.com/story/su***de-debt-link

There’s a Major Link Between Su***de and Debt, and We Need to Stop Ignoring It The statistics are overwhelming, but there are things that can be done.

Getting out of debt saves lives.

"‘You miss one payment, and that’s it, you’re never getting out of that hole,’ he says, reflecting on the darkest points of his financial difficulties.

‘No exaggeration, if I hadn’t gotten help when I did… I was becoming suicidal. It was horrible.’"

https://metro.co.uk/2021/07/31/in-focus-how-problem-debt-is-causing-a-mental-health-crisis-14921174/

How problem debt is causing a mental health crisis ‘It felt easier to not confront it, because I could scramble around and get another loan'

Experts Harvard University, Stanford University, and UCLA analyze a decade’s worth of medical bills that were referred to collection agencies.

Their estimate of total medical debt in collection — $140 billion as of June 2020 — is not only larger than previous estimates, it’s bigger than all other sources of debt in collection combined.

Source: https://anderson-review.ucla.edu/medical-debt-in-collection-estimated-at-140-billion/

Medical Debt in Collection Estimated at $140 Billion - UCLA Anderson Review Poorer residents of states refusing to expand Medicaid hit hardest

"According to the latest Quarterly Report on Household Debt and Credit, total household debt rose by $313 billion (2.1 percent) to reach $14.96 trillion in the second quarter of 2021.

….Credit card balances ticked up by $17 billion while student loan debt decreased by $14 billion."

Source: https://www.newyorkfed.org/microeconomics/hhdc

Household Debt and Credit Report - FEDERAL RESERVE BANK of NEW YORK Interactive charts illustrating trends in U.S. household debt and credit data

Neale Mahoney is a professor of economics and George P. Shultz Fellow at SIEPR, Stanford University. He notes:

"Over the last decade, medical debt has grown to account for more than half of all debt in collections, exceeding debt in collections from credit cards, personal loans, utilities and phone bills combined.

If you have a debt collector calling you up or knocking on your door, more often than not it’s because of an unpaid medical bill."

Source: https://thehill.com/opinion/healthcare/568734-americans-burdened-with-medical-debt-the-government-needs-to-step-up

Americans burdened with medical debt — the government needs to step up Over the last decade, medical debt has grown to account for more than half of all debt in collections in the U.S., exceeding debt in collections from credit cards, personal loans, utilities and phone bills combined.

Last year, Jennifer McCrobie went to the emergency room with a stomach ache that had her doubled over in pain.

She had to have surgery to remove her gallbladder. Then, the bills starting piling up.

“They were relentless,” she said of the collectors.
McCrobie is currently being sued by the hospital where she lives in Clarksville, Tennessee.

“They can’t bleed this turnip much further than it’s being bled,” she said.

Source: https://www.marketplace.org/2021/08/16/medical-debt-is-hitting-hardest-for-people-in-the-south/

Medical debt is hitting hardest for people in the South Debt is higher in states that have decided to turn down federal money to expand Medicaid.

"There are alternatives to bankruptcy if your loan payments are unaffordable, and since bankruptcy has serious consequences for your credit and financial life, look into those first. "
Source: https://www.forbes.com/advisor/student-loans/can-you-file-bankruptcy-on-student-loans/

Can You File Bankruptcy On Student Loans? It’s possible to discharge student loans through bankruptcy. The most common standard courts use to determine your student loans’ eligibility for discharge is strict; and whether you meet it is subject to the individual bankruptcy court’s judgment. But that doesn’t mean you shouldn’t try. ...

Maternity Leave and Debt

"For mothers that did not take out a disability insurance policy prior to their pregnancy, 20% dug into emergency savings to cover costs while on unpaid maternity leave, which on average lasts 10 weeks.

Another 17% incurred credit card debt, 11% took on a side-job, and 9% took out a personal loan.

Just 11% indicated they were able to afford expenses comfortably while on unpaid maternity leave, while 21% turned to their spouse or partner to shoulder the extra financial burden."

Source: https://finance.yahoo.com/news/unpaid-maternity-leave-mothers-turn-180553558.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMZcU1n_lv959deOFi7VQy8VOqx3CUOI5XlQUUOy3sbvPPe0HigWBWYA5lYWRQiik99AZe7OTQIPYMoVXdLS4zWni6wh5STAkpOYm8ggJo1EF3hoLTfCf-IoUucJyBlDb4XjnHEwRLATPj_0p-oivVI4pI3pM6LwETB5R0gg7Tr8

To Get By on Unpaid Maternity Leave, Mothers Turn to Credit Card Debt, Emergency Savings, & Side-Jobs By Mike Brown Despite Pew Research finding 82% of Americans are in favor of mothers getting paid maternity leave, just 17% of all U.S. workers have access to paid maternity or paternity leave according to the latest data from the U.S. < of Labor Statistics. The United States is the only developed na...

Smart Credit Card Advice
https://www.moneyweb.co.za/financial-advisor-views/your-credit-card-money-management-necessity-or-debt-trap/

Your credit card: Money management necessity or debt trap? If used responsibly, a credit card can have significant benefits to the user.

"Americans started 2021 with nearly $900 billion in credit card debt." https://www.cnbc.com/2021/08/10/us-states-with-the-most-credit-card-debt.html

The 10 U.S. states with the most credit card debt WalletHub ranked all 50 U.S. states to find which ones have the highest and lowest amounts of credit card debt.

"What if I already have a derailed financial plan?

People most often file for bankruptcy due to sudden and unexpected life-changing events such as illness or injury, unemployment, death or loss of spouse due to divorce.

In all the suffering we see around us, why spend all our time and effort now and now sacrifice for promises in the distant future that may not happen?"

Source: https://californianewstimes.com/how-to-plan-if-you-are-low-on-funds-press-telegram/494063/

How to plan if you are low on funds – Press Telegram - California News Times If you (or someone you know) feel that you don’t have enough income or assets to need a financial plan, you’re not alone. A 2018 Federal Reserve survey found that 25% of Americans have zero retirement savings and one-third of middle-class Americans can’t stand a $ 400 emergency. rice field. Ac...

Josh Mitchell is the author of The Debt Trap: How Student Loans Became A National Catastrophe. Here are highlights from his North Carolina Public Radio - WUNC interview.

"If you look at the numbers, there are huge numbers of people who are struggling with their debt. Let's just take a look at the number of people who have defaulted on their loans.

There's 8 million people, something around that ballpark that have defaulted on student loans. That's not that far off from the number of people who lost their homes to foreclosure in the housing crisis.

If you look at the number of seniors who have had their Social Security checks garnished in recent years, there's more than a million people that have had their Social Security checks garnished because they can't pay their student debt."

Source: https://www.wunc.org/2021-08-21/the-debt-trap-author-on-the-generational-setbacks-from-student-loans

'The Debt Trap' Author On The Generational Setbacks From Student Loans NPR's Michel Martin speaks with Wall Street Journal reporter Josh Mitchell about his new book, The Debt Trap: How Student Loans Became a National Catastrophe.