Too Much Debt

Having debt is sometimes a difficult burden. It looms over your head and follows you around like an angry cloud just waiting to rain on your parade. What happens when debt becomes too much, do you stop paying? Do you get a second job? A third job? It debt reconciliation a possibility? In a recent study by the Urban Institute, they found that around 35 percent of adults have debts in collections reported in their credit file.

So what exactly does “debt in collection” mean? Debt in collection involves a nonmortgage bill, such as a credit card balance, child support obligation, medical or utility bill, parking ticket, or library fines, that has been reported so far past due that the account has been closed and placed in collections. When bills are placed in collections, it is often with a third party collection agency. Those debts can hurt a person’s credit for seven years because every time a debt goes to collections it remains on your credit report for seven years. So consumers only become aware of this when they review their credit report.

So is there a way to avoid collections? The answer seems simple. Just pay your bills, but it is never that simple. For some people it is the difference between feeding their family and paying a bill. The bill would come last. There are many reasons why someone does not pay a bill in a timely manner, but it does not keep up from accumulating debt. Many Americans do  not even think twice about carrying some debt, many do not know how much they actually have in debt.


Repaying Student Loan Debt

Around 11.2 trillion of workers in the US owe student loans. Many of those are struggling to pay them back, but have managed until now. The federal government established a way for public service workers to have their student loans forgiven.

The Consumer Financial Protection Bureau released a report stating that more than a quarter of the public service workforce is eligible for loan forgiveness, but many do not know about the program. They would like to find ways to get the information to the workers. If you would like more information visit to find out if you qualify for student loan forgiveness.