There has long existed a significant gap between what an average man and woman makes for an equivalent job in New York. Although there certainly are other factors to consider, such as spending and borrowing habits, this wage gap has contributed to what is now seen as a "debt gap."
Some New York consumers who are struggling with credit card debt might be considering a debt settlement arrangement. There are advantages and disadvantages to this as a solution.
Individuals in New York struggling with student loan debt may be interested in the new bankruptcy rules that are being proposed for students who have debt. Student loan debt in the United States is estimated to be around $1.4 trillion. Billions of dollars of student debt are at least 90 days delinquent according to the Federal Reserve Bank in New York. It is clear to see the burden that student loan debt is having on many people.
Filing for bankruptcy can offer the potential for a new financial future for people in New York struggling with the weight of insurmountable debt. Despite the potential benefits of bankruptcy, however, many individuals hesitate before filing. In some cases, people regard bankruptcy filings as a type of failure on a personal and financial level and thus may be hesitant to take that step. However, the consequences of waiting can cause someone to be in a far deeper financial hole from which to emerge.
Bankruptcy is often the most effective way to eliminate major debts. By filing, New York residents could reduce or eliminate their credit card, medical and other outstanding balances. However, it is important to note that not all debts can be eliminated. Student loan debt generally cannot be discharged, regardless of whether a person files for Chapter 7 or Chapter 13 protection.
The United States bankruptcy code allows consumers to have certain debts dischared. Other debts are not eligible for bankruptcy protection. It's important to know the difference prior to filing for voluntary bankruptcy in New York. Those with debts such as recent taxes,that cannot be discharged may need to make an arrangement with the IRS to pay the taxes or negotiate a settlement.
A bankruptcy can stay on a credit report for up to 10 years. However, those who file in New York or elsewhere can start rebuilding their credit far sooner. According to a study from LendingTree, 65 percent of those who filed for bankruptcy had a credit score of 640 or higher two years after filing. The study looked at 1 million LendingTree users who had received loan offers in 2017.
New York residents who may not be able to pay for dental work or a trip to the doctor may put those expenses on a credit card. However, roughly 33 percent of Americans say that they struggle to pay off that debt, according to a Kaiser Family Foundation survey. In some cases, individuals don't truly understand what they are signing up for when they apply for a medical credit card.
Many people living in New York use credit cards responsibly. Unfortunately, there are situations in which credit card debt can get out of control. This may be due to poor spending habits as well as external circumstances, such as an illness or unexpected job loss.