Question: Dear Steve, We have 12 yrs left on our 1st TD. It’s an ARM with a current rate of 2.75% and adjusts annually in June. We also have a HELOC with the entire 50k balance due as a balloon payment in 2023, interest-only payments at 4.5% until then. We presently have a fair credit … Read more
Question: Dear Steve, I owe close to $40,000 in private student loan debt. The interests rates are 10% or more on some. The payments are way too high for me to make. I stopped paying in 2016. I am getting letters in the mail from U.S. Asset Management through the court of common pleas in … Read more
Consumer Statement: I had USA Student Loans assist with loan consolidation, which they did accomplish. They promised that they were assisting in setting me up in the Student Loan Forgiveness Program, which they did not do. They did change payments to an income-based repayment plan, which is part of the requirement to approach loan forgiveness. … Read more
The Public Service Loan Forgiveness federal student loan forgiveness program was designed to attract good people into lower-paying fields that serve the public good. These fields include teachers, firefighters, law enforcement, military, low-income medical care, etc. While President Bush created the program, it was all but murdered under President Trump. As a result, people that … Read more
The FTC made the announcement below that seems to open the door for students with federal student loans to explore the possibility of applying for a Borrower Defense Loan Discharge. The Federal Trade Commission put 70 for-profit higher education institutions on notice that the agency is cracking down on any false promises they make about … Read more
The Governor of California has just approved AB 1405 regarding debt settlement practices. Considering the number of debt settlement companies located in especially Southern California, this should create some new risks and liabilities for them. The new law targets not only the companies that sell and perform settlements but also the payment processors as well. … Read more
Question: Dear Steve, I’m 70 years old with almost $250k in federal student loans. I’ve been on IBR and have a $0 payment so far and am on SS. When my IBR tenure is completed (25 years), will the amount that has been “forgiven” be considered Capital Gains, and thus will I have to pay … Read more
Question: Dear Steve, Is the Litigation Practice Group for real? They have me in a debt verification program. This company tried to dispute my debt with discover. And the creditor came back saying the debt was valid. So I’m paying them $385 a month. That will be $9,200 for two years. I think the company … Read more
Question: Dear Steve, A failed business deal caused me to lose my American Express card, and in return, my 20-year-old personal account that I never missed a payment on or was never late was canceled as well. I want to pay off the defaulted balance in return for my personal card being returned. However, I’m … Read more
Question: Dear Steve, Should I file for bankruptcy? I’m making 60k a year and have about 35k in debt, in which I’ve been making minimum payments for the last 14 months. It feels like I’m getting nowhere. This debt seems like it would never clear. Please advise. Bee Thank you Answer: Dear Bee, The honest … Read more
Question: Dear Steve, I took a federal student loan for grad school in 1975. My Social Security now is garnisheed. Since 1993 loan collection has taken $35,000 from me, and not one cent has been applied to the loan amount only to interest. Is it legal not to put payments on to loan principal? Do … Read more
Question: Dear Steve, My question is about credit counseling courses. What are the chances this bill will pass and credit counseling done away with? Don Answer: Dear Don, I believe you are referring to a proposed bankruptcy law that would adjust the current bankruptcy law and do away with the requirement for bankruptcy credit counseling. … Read more
I’ve seen a lot of unfortunate situations in the debt relief space. I’ve written about many, but the problem between the Plaintiffs and Defendants and the mutual attorneys in one particular situation seems to be spiraling to a new level I’ve not seen before. No End in Sight Not long ago I wrote Student Loan … Read more
Defendants posed as police, attorneys to threaten consumers over fake debts An Atlanta-based debt collection company and its owners will be permanently banned from the debt collection industry under the terms of a settlement with the Federal Trade Commission. In its complaint against Critical Resolution Mediation, LLC, along with Brian Charles McKenzie and Tracy Dottrice … Read more
If you get a call that sounds similar to the message below. It is a scam. Hang up. “Hello, this is Mary Fletcher, state number agent, FF694. And this is a notification call from the department of financial relief services. And the purpose of this call is to inform all us citizens in our state … Read more