Smith County Bankruptcy Blog

In Texas and across the United States, millennials are experiencing difficulties with their credit card debts. Millennials frequently become tempted by credit card perks. Consequently, many millennials are delinquent in the payments on their credit cards. The delinquency ratio was not as severe in previous generations. Many young people formerly viewed stock trading with wary eyes in the past. These individuals were previously known for their frugality. However, current studies conducted by the Federal Reserve Bank of New York shows that many young consumers have lost control over their spending habits.

Signup bonuses appeal to younger generations who seek out the best cash back offers. Others want credit cards with no interest. A typical credit card charges an 18% interest rate for consumers with good credit. However, some credit cards carry higher interest rates. Although millennials might want to save money via bonuses, young people between the ages of 18 and 29 cannot afford to pay the high interest rates.

A rule proposed recently by the Consumer Financial Protection Bureau would allow debt collectors to contact consumers in Texas a lot more frequently. Collectors could make phone calls up to seven times each week and they would be allowed to send unlimited emails and text messages. Once collectors speak to the consumer though, they would not be allowed to call again for one week. This rule change would represent the first major update to the CFPB rules in 40 years.

According to an attorney who works with the National Consumer Law Center, the rule would open the door to contact through existing channels that debt collectors have not utilized. She said people should know they have the right to tell collectors how to contact them and they can revoke their consent to be contacted.

Many Texas consumers face seemingly insurmountable debt.. They may have credit card bills with balances that got out of control, or they may have found an unexpected illness saddling them with medical bills. They struggle to pay their bills each month and face creditor calls, late fees and high interest rates. While personal bankruptcy could present a way forward out of this situation, many people are concerned about the effects of bankruptcy on a credit score. Of course, a bankruptcy filing is a serious negative entry on a credit report and will affect a person's ability to access new credit.

However, in most cases, people who file for bankruptcy already have a bad credit score. They may have late payments, closed accounts or judgments against them due to outstanding debts. In fact, many people wait for longer periods than may be optimal to file for bankruptcy over these concerns, further perpetuating the negative credit entries on their records. In some cases, people may find that their credit scores actually go up even shortly after bankruptcy as their significant debts are removed.

Some hospital patients in Texas may find themselves unpleasantly surprised when they receive their medical bills. In some cases, certain treatments or services are not eligible for in-network insurance coverage. This can mean that some patients get hospital bills that they cannot afford to pay.

Health insurance plans in the United States typically provide a higher level of coverage for services provided by medical professionals, laboratories and hospitals that are "in-network," which means that they have entered into an agreement with the insurance company. Services provided by out-of-network hospitals, professionals and laboratories may still be covered by insurance, but the patient will be expected to pay a larger percentage of these costs out-of-pocket.