One of the most common questions we get asked is, “my health insurance was supposed to cover a procedure, but it didn’t. Now I’m in collections. Is this legal?” The short answer: yes, it is legal, though you may be able to fight back. The long answer, however, requires a bit of context about how insurance companies operate.
In this modern world that we live in, consumers are protected and have certain rights when it comes to debt collection. The practices of debt collection agencies have to abide by rules through the Fair Debt Collection Practices Act (FDCPA) as enforced by the Federal Trade Commission (FTC). According to the FTC, consumers are to be safeguarded from abusive, harassing or unfair debt collection practices. But, the question is, “Does this act protect consumers from being arrested for the failure to pay back their debts and sent to a debtor’s prison?” The short answer is yes, but there are some instances related to debt in which people have been sent to jail.
Many people ask, What’s the best way to get out of debt? Then they may often think, But I have good credit and I really don’t want to hurt it. There are many ways to lighten your debt load, and not all of them will have a major negative effect on your credit. But it’s also important to consider your situation and needs when weighing your options.
The average monthly student loan payment is more than $350. This can be a strain on anyone’s budget, but for some, it’s unsustainable and things can go downhill—fast.
If this sounds like an all-too-familiar struggle, you may have a student loan emergency on your hands. Here’s how to know for sure and what you can do to fix it.
In the world of personal finance, there are plenty of heated debates. Should you save for an emergency or pay off debt first? Is any debt “good” debt? Are balance transfers an acceptable way to pay off debt more quickly?
And then there’s the classic argument: debt snowball vs. debt avalanche.
Before we launch into the nitty-gritty of the “which is better” argument, let’s talk about what a debt snowball and a debt avalanche are.