Average Credit Card Debt Rises for Hawaiians in May

June 13, 2012 By

According to data compiled by Creditkarma.com, Hawaiian consumers’ credit card debt rose in May to an average of $7,250.  (Article here) This is an increase on April’s total and is the second highest total in the nation.   Additionally, Hawaii’s upward trend in credit card debt is running against the national downward trend.  Average credit scores in Hawaii also declined from April.

During these tough economic times, many residents of our beautiful islands continue to struggle to make ends meet.  If you are stressed out about rising debt, then please contact us.   We offer a free consultation and will be happy to sit down in a comfortable, pressure-free environment to discuss your options and come up with a plan to get you back on your feet.

Filed Under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Credit Cards, Credit Counseling

The Student Loan Debt Bomb

April 19, 2012 By

We probably don’t have to tell you that it’s expensive to put yourself or a loved one through college.  Student loan debt has increased steadily to where we’re now seeing undergraduates averaging more than $23,300 in debt at graduation.  This is in addition to the average of roughly $3,000 in credit card debt for each college student.  If you consider the above, then take into account the fact that average income has declined or held steady over the past several years, it doesn’t take a math major to figure out that there is a problem at hand.

The Baltimore Sun recently published an article pointing out that student loan debt now exceeds credit card and auto loan totals.  (Click here for the article)  Millions of Americans are struggling to make ends meet as a result of high student loan payments.  ”Just as the housing crisis has trapped millions of borrowers in mortgages that are underwater, student debt could very well prevent millions of Americans from fully participating in the economy or ever achieving financial security,” testified Illinois Attorney General Lisa Madigan on March 20 before a U.S. Senate judiciary subcommittee.

Although student loan debt is not dischargeable in bankruptcy except in very extreme circumstances, Abelmann Law also specializes in debt counseling and finding creative solutions to your financial worries.  Please call or email to schedule a free consultation.

Filed Under: Credit Counseling, Debt Collection, Student Loans

All Walks of Life

April 7, 2012 By

April 6 brought news that former NFL star defensive lineman Warren Sapp has filed for Chapter 7 bankruptcy protection.  This serves as a good reminder that, contrary to what many of us may have thought, the individuals and families that file for bankruptcy protection come from all walks of life and file for all varieties of reasons, including, illness, death in the family, and accidents.   The protection and the fresh start afforded by bankruptcy allows many people the chance to catch their breath, get back on their feet,  then return to pursuing their financial goals.  You may have heard of the following people who filed for bankruptcy protection:

  • Abraham Lincoln
  • Henry Ford
  • Walt Disney

If you’re stressed out and losing sleep over whether bankruptcy is the right decision for you, then please give us a call at Abelmann Law to schedule a free consultation.  We will sit down with you to discuss your current situation and help you to decide whether Debt Settlement, Chapter 7 bankruptcy or Chapter 13 bankruptcy is a good option.

Filed Under: Chapter 13 Bankruptcy, Chapter 7, Chapter 7 Bankruptcy, Credit Cards, Credit Counseling, Debt Collection

Collection Agencies Win Free Trips by Harassing Borrowers into Unreasonable Terms

March 27, 2012 By
On March 25, Bloomberg.com published a troubling report detailing the incentives offered to collection agencies attempting to collect on delinquent debts.  While it should come as no surprise that collections agencies are pushing the legal limits with their methods, at Abelmann Law we find it particularly concerning that the agencies are failing to advise individuals of the various repayment options available to them.  In many cases the result is increased financial hardship for families that are already struggling under a heavy debt burden.  Meanwhile, “successful” debt collection agents are rewarded with cash bonuses, foreign trips and gift certificates.
While the above-mentioned report focuses on debt collection practices in the student loan industry, we think you will agree that the problem does not end there.  If you are being hounded by creditors, we would like to talk to you about your options.   Bankruptcy may not be your best option, but we will be more than happy to tell you this and provide counsel with respect to your other options.  If bankruptcy is the answer, then we are here to discuss Chapter 7 and Chapter 13 bankruptcy with you and assist in making this very important decision to get back on your feet with a fresh start.
Filed Under: Chapter 13 Bankruptcy, Chapter 7, Chapter 7 Bankruptcy, Credit Counseling, Debt Collection, Student Loans

Average credit card debt in Hawaii drops 11 percent since 2011

February 12, 2012 By

A year-on-year comparison of the month of January shows that average credit card debt in Hawaii dropped 11% to $7,524, according to a report from creditkarma.com.  An article in the Pacific Business News reviews further statistics on Hawaii residents’ mortgage debt, credit scores, auto loan debt, and student loan debt.

These statistics are telling – in our everyday interaction with individuals and families here in Hawaii, we find that people are suffering from increased debt loads and a decreased ability to service that same debt.  One way to determine whether you are in need of a Chapter 7 bankruptcy or Chapter 13 bankruptcy is to organize a budget.  Set out all of your income – salary, business, social security, pension, family contributions, etc.  Then list out your fixed costs – mortgage/rent, car payments, insurance, etc.  Then add in your variable costs – utilities, gasoline, food, clothing, entertainment, etc.  If your outflow/costs exceed your inflow/income by a significant amount, and you don’t expect much to change in the near future, it may be worthwhile to consider whether bankruptcy is an appropriate solution to help you get a fresh start in your finances.

There are quite a few resources available virtually, such as online credit counseling services provided by Abacus, or in person in Honolulu, with services like Consumer Credit Counseling Services of Hawaii, that can help you to create a budget and analyze whether you need assistance with your debt.  You can also call us now at 589.1010 to set up a free consultation with our Hawaii attorneys.

Filed Under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Credit Cards, Credit Counseling