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Average US Credit Card Debt
The US debt situation is getting worse every year. The average American’s credit card debt in 2003 was:
- Credit card debt $693 billion;
- TOTAL debt of $7.38 trillion.
By 2021, the average American’s credit card debt reached:
- Credit card debt $787 billion.
- Total debt $14.96 trillion.
The trend continues to worsen. The data source: Federal Reserve Bank of New York (2021). Debt statistics are from the second quarter of each year.
- You can get a loan even if you don’t have a formal job
It turns out that some banks give loans without proof of income, but one should not count on a large amount and low interest rates in such a situation. It is best to go to the bank where you have a debit card. Often, banks form special offers for their customers with more loyal requirements. This is particularly true for online loans for bad credit.
But in any case, the borrower must have an income, even unofficial. If you have a source of income — no need to take out loans, you have to live within your means. If you have no source of income — you don’t have to take out loans, you’re just sinking into a hole. Look for a better source of income.
2. What unofficial income documents can I submit for a loan?
Some banks grant credits, requiring the simplified set of documents, where income can be proven by the free statement, under the bank form, by the account statement, or even without proof of income. The total family income is also taken into account. Co-borrowers or mortgages will increase the chances of approval and allow you to take out credit on more favorable terms.
3. You can get rid of credit insurance
You just need to write a request and send it to the insurance company. In addition, you must enclose a copy of the insurance contract with the request.
The company will return the money within 10 working days. If you want the money to be sent to a certain account, you need to specify its details in the request. Keep in mind that if the contract has already started, the money will be refunded after deducting the services already rendered.
4. Insurance can be returned for prepayment of credit
To begin, you must obtain a certificate from your bank stating that you have no debt. This document must be attached to the request for reimbursement of the amount of insurance. But the possibility of restitution of the insurance premium by the bank depends on the conditions of the credit agreement and the insurance contract. One of three situations is possible:
- in the first case, you will be entitled to reimbursement of the total amount of the insurance premium paid without commissions or deductions;
- in the second case, the bank will make a partial refund, i.e. the amount proportional to the duration of use of the insurance services;
- in the third case, the insurance amount is not reimbursed at all. This situation is possible if the insurance contract stipulates that in the event of early repayment of the credit to the customer, the amount of the insurance premium paid is not returned. In this case, the customer has the full right to go to court.
5. You can take out a loan against the pledge of real estate held by proxy
It all depends on the powers that the owner has given to a person to dispose of his property.
If there is a right to dispose of the property in the form of its pledge to the creditor in the power of attorney, you have the right to count on obtaining a loan on the security of real estate, the owner of which is not not. It should be understood that the more precisely the cases of power of attorney are described for which the owner gives you the right to pledge his property, the fewer questions the lender may have.
Don’t forget to get your spouse’s consent and permission to put the property into receivership.
6. It is possible to refinance a recent loan
Yes, but it is a very specialized offer on the market. The majority of them require the borrower to make at least 3/6 payments on the existing loan. But the main requirement for the refinancing of all banks is the absence of late payments on current obligations.
7. Repay the installment sooner
A deposit received from a bank is a credit. The bank cooperates with the store. And the store gives the customer a discount on the goods in the amount of accrued interest on the credit.
8. You can get a loan even if you have a bad credit history
Borrowers with a bad credit history have the best chance of getting a credit card. So if you want to catch up on past mistakes and improve your credit history, it may be worth trying to get a card from a bank with a fair risk strategy first and use it carefully. for some years. A new on-time payment history will help improve your reputation in the eyes of potential lenders and increase your chances of getting a bigger loan.
9. What should I do if a debt collector calls and threatens?
If the collection company violates the law, the debtor must first collect as much evidence of the violation as possible — call details, audio recordings of conversations, photos of messages. Also, it is worth contacting the prosecutor’s office.
The borrower can also signify his refusal to communicate with the creditor and his representative by registered mail with a list to the legal address of the creditor.
Corn! If your only home is a mortgage, it is excluded from the list of properties that the lender is not allowed to seize. Therefore, if the bailiffs are trying to put your apartment up for sale, and it is not included in the mortgage, do not hesitate to write an application for cancellation of the bailiff’s decision on the sale of your apartment. The same goes for those who are or are considering declaring bankruptcy. Write a request to the court to exclude the property from the bankruptcy estate.