Latest news with #financialrelief
CBS News
4 days ago
- Business
- CBS News
3 big bankruptcy risks to know before filing this August
Filing for bankruptcy is often viewed as a last resort option — a way to hit the reset button when your debts have spiraled out of control. And, this summer, many Americans are reaching that crossroads. Credit card balances are climbing, interest rates remain high and the lingering effects of inflation are stretching household budgets thin. As a result, there's been an uptick in personal bankruptcy inquiries and filings as more people turn to bankruptcy for a way out of their serious debt issues. But while filing for bankruptcy can erase many types of debt and offer legal protections from your creditors, it's not a free pass. The process is complex, public, and, in many cases, expensive. Plus, the financial repercussions that come with taking this route are long-lasting and can ripple far into the future. And, depending on the type of bankruptcy you file, you may also still be responsible for repaying some of your debts. So, while bankruptcy can provide vital relief from overwhelming debt, it's essential to understand the risks that come with it before making any moves this August. Find out what strategies you can use to reduce your debt today. Before you rush to a bankruptcy attorney's office, make sure you weigh the following risks to ensure that this type of relief is right for you: Bankruptcy can provide relief from your expensive debts, but it leaves a lasting scar on your credit report in return. A Chapter 7 bankruptcy, which eliminates eligible unsecured debts like credit cards, stays on your credit report for 10 years. A Chapter 13 bankruptcy, which involves a repayment plan, sticks around for seven. During that time, your ability to borrow may be limited or come with extremely high interest rates compared to those offered to prime borrowers. As a result, getting approved for a mortgage, car loan or even a credit card could be difficult. And even if you do get approved, your options may be limited to subprime lenders that charge steep fees. That's not to say you can't rebuild your credit after bankruptcy — you can. But it takes time, patience and discipline. So if you're thinking about filing this August, be prepared for navigating a long road back to good credit. Chat with a debt relief expert about the help that's available to you now. Bankruptcy doesn't always mean you're getting a clean slate, not without making sacrifices, anyway. Depending on the type of bankruptcy and the laws in your state, you could be required to give up certain possessions, like a second car, investment properties or even part of your home equity. With Chapter 7 bankruptcy, for example, a court-appointed trustee may sell off your non-exempt assets to repay creditors. And while many states allow you to keep essentials like your primary home, personal items and tools of your trade, the exemptions vary. File in the wrong state or get the timing wrong and you could lose more than you expect. On the other hand, filing for Chapter 13 bankruptcy may allow you to keep more of your property, but you'll need to stick to a three- to five-year repayment plan, which can be strict and burdensome. If you miss payments, you risk having your bankruptcy case dismissed entirely. Bankruptcy isn't just a financial event. It can also have wide-reaching personal and professional consequences. Employers, landlords and insurance companies may consider your credit history when making decisions. And, while they may not always deny you solely for filing bankruptcy, it could work against you in certain situations, like a competitive rental market. Some professional licenses and security clearances may also be affected, depending on your industry and employer. And there's an emotional weight to filing for bankruptcy, too, as the process can be invasive, requiring you to disclose all of your financial details. Before filing for bankruptcy, it's usually worth exploring the alternative options that could help you get out of debt without the long-term consequences. These include: Filing for bankruptcy can offer relief from overwhelming debt, but it comes with serious tradeoffs. From damaged credit to potential asset loss and long-term limitations, the consequences can stretch far beyond the short term. So, before you take that step, explore every alternative. The right solution may not be the fastest, but it could save you time, money and stress in the long run.
Malay Mail
23-07-2025
- Business
- Malay Mail
Ministers hail PM's special announcement, say it's all about the ‘rakyat'
KUALA LUMPUR, July 23 — Several federal ministers today thanked Prime Minister Datuk Seri Anwar Ibrahim for making a special announcement on a series of new government measures that will benefit Malaysians, including a one-off RM100 for all Malaysian adults and reduced RON95 petrol price. The ministers said these measures show the federal government's focus on the people of Malaysia and on reducing their financial burden. Communications Minister Datuk Fahmi Fadzil expressed appreciation and thanked the prime minister for announcing these measures, which he said would provide relief to Malaysians and drive economic stability and economic growth, as well as strengthen the country's fiscal resilience amid global uncertainties. 'This announcement proves the MADANI Government's sensitivity towards the pulse of the 'rakyat', and commitment to reduce the burden through various forms of aid,' he said in a statement posted on his official Facebook page. He said the government will balance the need to enhance the country's financial position with the responsibility to take care of the public's wellbeing. Fahmi said the measures announced are the result of careful consideration and based on the principle of social justice and economic sustainability. Separately, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the measures showed a government that truly revolved around Malaysians. 'Since day one, that is our aspiration and direction, every sen spent, must be to uplift the dignity of the 'rakyat',' he said in a statement on his official Facebook page, having highlighted five of these measures. Federal Territories Minister Datuk Seri Dr Zaliha Mustafa said 'rakyat, rakyat, rakyat' was the tone of the prime minister's announcement, adding that the government was committed to carrying out immediate steps to reduce Malaysians' burden. 'Today's announcement not only provides relief for millions of families, but also drives the country's economic stability as a whole,' she said in a statement on her official Facebook page. Among other things, she said the government will continue to ensure the public's voices are heard and to prioritise their needs and continue to uplift their standard of living. Recommended reading:
CBS News
18-07-2025
- Business
- CBS News
Can you qualify for credit card debt relief while on Social Security?
For millions of retirees, Social Security is the financial lifeline that keeps the bills paid each month. But as sticky inflation forces prices to inch upward on essentials like groceries and utilities, those fixed monthly benefits, which average just under $2,000 per month currently, don't always stretch far enough. As a result, many older adults are leaning on credit cards to cover the gaps. But with an average rate of over 21%, any credit card debt you carry can quickly shift from a temporary solution to a cycle of minimum payments and ballooning balances. Dealing with rapidly compounding credit card debt can be tough for just about any cardholder, but carrying high-rate card debt during retirement can be especially stressful, as your income isn't likely to increase in the future. If you're in this situation, you may be wondering if there's a way to get some relief from your credit card bills — and may also wonder whether seeking help could put your hard-earned benefits at risk. The short answer is that when it comes to credit card debt relief, the solutions that work best for traditional wage earners might not be the right fit for those reliant on Social Security benefits. Below, we'll detail what to know about qualifying for credit card debt relief while relying on Social Security. Find out how to get more help with your credit card debt today. Being on Social Security doesn't automatically exclude you from credit card debt relief programs, but your options and how they're structured might look different compared to someone with a regular paycheck. That's because many debt relief programs are designed around your total income, expenses and assets, not specifically where your income comes from. The challenge for Social Security recipients, though, lies in how debt relief companies evaluate eligibility. Most programs assess two key factors: your ability to demonstrate genuine financial hardship and your capacity to make payments toward a solution. Social Security recipients often easily meet the hardship requirement, as fixed incomes that don't keep pace with inflation create clear financial strain. The payment capacity requirement, however, can be trickier to navigate. Debt relief providers will typically assess your monthly income and expenses to see if you can afford the payments required to qualify for the options available to you. If they find that you have enough room in the budget to afford those payments, you can typically qualify to enroll. Some of the debt relief strategies that may be possible to pursue while on Social Security include: Explore your debt relief options to find the right solution now. Certain debt relief options tend to align better with the realities of fixed income. For example, debt management plans often work well for seniors on a fixed income because they consolidate payments and reduce interest rates and fees without requiring new loans, credit checks, or meeting strict qualifications. Debt settlement programs may appeal to those facing severe hardship, as the relief that comes with this strategy can be significant. However, this approach requires you to stop payments temporarily to save up for lump-sum settlement offers, which can harm your credit score and lead to collections calls — a trade-off many seniors aren't comfortable with. Credit card hardship programs can also be a helpful option for seniors on Social Security. Many credit card companies are willing to work with retirees to lower or pause payments for a set period, which can give you valuable breathing room while you stabilize your finances. Debt consolidation may be worth considering as well. However, limited income may make approval tough, especially when it comes to getting approved for the best rates and terms, so other options are generally a better fit for most retirees. And, while bankruptcy has some major downsides, it can also be worth pursuing for seniors with few assets and significant debt. Trying to manage credit card debt while on Social Security presents unique challenges, but the good news is that your benefits provide a foundation of protected income that many debt relief strategies can build upon. The key is to choose an approach that works with your fixed income rather than against it. If you need help determining what strategy works for your unique situation, it may benefit you to consult with a debt relief expert who can help you understand the approaches that work well for those with limited income.
Yahoo
13-07-2025
- Business
- Yahoo
Taxes will change under Trump's ‘big, beautiful bill' — and it's a huge deal for US retirees. Here's why
President Donald Trump's so-called 'big, beautiful bill' just became law and has unleashed far-reaching impacts that both supporters and critics are scrambling to unpack. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The 940-page legislative document touches on everything from immigration to healthcare, but it's the modifications to the tax code that could be most noteworthy if you're over a certain age. Here's why these new rules are a big deal for American seniors across the income spectrum, and why the next four years are a crucial window for you to adjust your tax plans accordingly. Older Americans who rely on fixed incomes and are struggling with the cost-of-living crisis can expect some financial relief from this bill's new tax credits and deductions. Those aged 65 and above can now claim an additional tax deduction of $2,000 for single filers or $1,600 for each partner filing jointly. This deduction is on top of the standard deduction that is available to all taxpayers who don't itemize their tax filings. This seniors deduction is available even to those who itemize, unlike the standard deduction. To qualify, individual taxpayers who earn up to $75,000 or couples who earn a combined income up to $150,000 can claim the full bonus deduction. The amount of deduction is gradually phased out at higher income levels and is fully phased out for anyone earning over $175,000 individually or $250,000 jointly. Besides this bonus, many seniors could also benefit from other deductions included in the bill. Auto loan borrowers, for instance, can deduct up to $10,000 in car loan interest payments if they meet certain eligibility criteria, and the amount of state and local tax (SALT) payments people can deduct from their federal taxes has been raised from $10,000 to $40,000. Altogether, many seniors, especially those with auto loans or living in high-tax states, may see a lighter tax bill as a result of this new legislation. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. However, it is worth noting that several of these deductions have expiry dates. The SALT deduction is set to revert to $10,000 in 2030, while the auto loan interest deduction only applies to purchases in 2025, 2026, 2027 and 2028. As for the bonus deduction for Americans ages 65 and over? That measure expires in the 2028 tax year. In other words, many of these tax relief measures are attractive but limited and temporary. Seniors who can qualify may have a short window to take advantage of these temporary benefits. Meanwhile, the One Big Beautiful Bill Act (OBBBA) makes big and permanent cuts to the social safety net, retirement benefits and medical assistance that could impact many seniors in negative ways over the long term. The OBBBA includes funding cuts for some programs and tighter eligibility rules for others that could diminish the social safety net for many seniors. Federal funding for the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, is set to be slashed and offloaded to state and local governments in October, 2027. 'To manage these new costs, states may be forced to restrict eligibility, limit benefits or withdraw from the program entirely, which would make it more difficult for eligible individuals to access food assistance,' wrote AARP chief advocacy and engagement officer Nancy LeaMond wrote in a June 29 letter to Senate leaders. 'Currently, many individuals are limited to three months of SNAP benefits every three years unless they are working for 20 hours per week or qualify for an exemption,' noted CNBC. 'The new legislation will expand those requirements to individuals ages 55 through 64, parents of minor children ages 14 and up and veterans. It is unclear when those new rules go into effect.' Over 11 million Americans over the age of 50 relied on SNAP as of 2023. Meanwhile, the more than 9 million Medicaid recipients between the ages of 50 and 64 will face new work requirements to qualify for it as a result of this legislation, according to an AARP Public Policy Institute analysis. 'This big, beautiful bill — in terms of its impact on health care, on how physicians and hospitals are going to navigate the next few years — I think is the biggest immoral piece of health care legislation I've ever seen,' Arthur L. Caplan, PhD, a professor and founding head of the division of medical ethics at NYU Grossman School of Medicine, told Healio. 'Just unethical, indefensible and tragic.' These controversial measures could be why 53% of American adults strongly or somewhat oppose of Trump's budget, according to a YouGov/Economist survey. Nevertheless, since the bill has already passed, seniors have a short window of roughly four years to take advantage of temporary tax reliefs, credits and deductions to enhance their financial security independently. Older Americans cannot afford to waste the next four years by neglecting these changes. Every dollar saved over this period could offset the long-term impacts of reduced federal support for medical and food benefits. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Taxes will change under Trump's ‘big, beautiful bill' — and it's a huge deal for US retirees. Here's why
President Donald Trump's so-called 'big, beautiful bill' just became law and has unleashed far-reaching impacts that both supporters and critics are scrambling to unpack. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it The 940-page legislative document touches on everything from immigration to healthcare, but it's the modifications to the tax code that could be most noteworthy if you're over a certain age. Here's why these new rules are a big deal for American seniors across the income spectrum, and why the next four years are a crucial window for you to adjust your tax plans accordingly. Older Americans who rely on fixed incomes and are struggling with the cost-of-living crisis can expect some financial relief from this bill's new tax credits and deductions. Those aged 65 and above can now claim an additional tax deduction of $2,000 for single filers or $1,600 for each partner filing jointly. This deduction is on top of the standard deduction that is available to all taxpayers who don't itemize their tax filings. This seniors deduction is available even to those who itemize, unlike the standard deduction. To qualify, individual taxpayers who earn up to $75,000 or couples who earn a combined income up to $150,000 can claim the full bonus deduction. The amount of deduction is gradually phased out at higher income levels and is fully phased out for anyone earning over $175,000 individually or $250,000 jointly. Besides this bonus, many seniors could also benefit from other deductions included in the bill. Auto loan borrowers, for instance, can deduct up to $10,000 in car loan interest payments if they meet certain eligibility criteria, and the amount of state and local tax (SALT) payments people can deduct from their federal taxes has been raised from $10,000 to $40,000. Altogether, many seniors, especially those with auto loans or living in high-tax states, may see a lighter tax bill as a result of this new legislation. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. However, it is worth noting that several of these deductions have expiry dates. The SALT deduction is set to revert to $10,000 in 2030, while the auto loan interest deduction only applies to purchases in 2025, 2026, 2027 and 2028. As for the bonus deduction for Americans ages 65 and over? That measure expires in the 2028 tax year. In other words, many of these tax relief measures are attractive but limited and temporary. Seniors who can qualify may have a short window to take advantage of these temporary benefits. Meanwhile, the One Big Beautiful Bill Act (OBBBA) makes big and permanent cuts to the social safety net, retirement benefits and medical assistance that could impact many seniors in negative ways over the long term. The OBBBA includes funding cuts for some programs and tighter eligibility rules for others that could diminish the social safety net for many seniors. Federal funding for the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, is set to be slashed and offloaded to state and local governments in October, 2027. 'To manage these new costs, states may be forced to restrict eligibility, limit benefits or withdraw from the program entirely, which would make it more difficult for eligible individuals to access food assistance,' wrote AARP chief advocacy and engagement officer Nancy LeaMond wrote in a June 29 letter to Senate leaders. 'Currently, many individuals are limited to three months of SNAP benefits every three years unless they are working for 20 hours per week or qualify for an exemption,' noted CNBC. 'The new legislation will expand those requirements to individuals ages 55 through 64, parents of minor children ages 14 and up and veterans. It is unclear when those new rules go into effect.' Over 11 million Americans over the age of 50 relied on SNAP as of 2023. Meanwhile, the more than 9 million Medicaid recipients between the ages of 50 and 64 will face new work requirements to qualify for it as a result of this legislation, according to an AARP Public Policy Institute analysis. 'This big, beautiful bill — in terms of its impact on health care, on how physicians and hospitals are going to navigate the next few years — I think is the biggest immoral piece of health care legislation I've ever seen,' Arthur L. Caplan, PhD, a professor and founding head of the division of medical ethics at NYU Grossman School of Medicine, told Healio. 'Just unethical, indefensible and tragic.' These controversial measures could be why 53% of American adults strongly or somewhat oppose of Trump's budget, according to a YouGov/Economist survey. Nevertheless, since the bill has already passed, seniors have a short window of roughly four years to take advantage of temporary tax reliefs, credits and deductions to enhance their financial security independently. Older Americans cannot afford to waste the next four years by neglecting these changes. Every dollar saved over this period could offset the long-term impacts of reduced federal support for medical and food benefits. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
