June 27, 2023
As inflation spiked over the last two years, almost half of Americans have taken to relying more on credit cards to make ends meet.
A survey of 1,000 U.S. adults conducted by consumer website Debt.com finds 45% of Americans have been pushed by inflation to use their credit cards far more frequently.
June 7, 2023
“I’m always amazed at what embarrasses people,” said Howard Dvorkin, CPA and chairman of Debt.com. I’ve counseled rational adults who feel ashamed that they’ve been laid off from their job — even though they had nothing to do with the decision. It was market forces or business priorities. Yet these same people weren’t embarrassed running up five-figure credit card bills when they were employed, then paying huge interest charges and other fees because they couldn’t pay them off.”
May 22, 2023
But if you feel like it’s professional financial help you need for your money stress rather than a therapist, there are free places to go for that as well, says Howard Dvorkin, a certified public accountant and chairman of the debt education website, Debt.com.
“There’s no shortage of free assistance,” Dvorkin says. “Your bank or credit union probably offer free online budgeting tools that can help you squeeze every last dime from your income. Nonprofit credit counseling agencies … offer you a free, in-depth debt analysis over the phone.”
May 17, 2023
But while credit cards might make it easier and even more financially rewarding to shop, they also have the potential to wreak havoc on your mental health. A recent survey by Debt.com found that 34% of credit card users feel stressed. That’s up from 21% who said the same in 2022.
Also, this year, 43% of credit card users said that the simple act of looking at their monthly statements was a source of stress. Last year, only 39% said the same.
May 9, 2023
When it comes to medical bills, you aren’t alone. Debt.com’s Medical Debt Survey found that close to 6 in 10 consumers are having a hard time paying medical bills in the face of inflation. The good news is that there are ways to pay. for it without racking up expensive debt. For starters, if you’re offered a medical credit card with an interest-free period, make sure you can pay off the bills within that time frame. If that’s not realistic, request a payment plan directly with the provider instead. Some doctors will offer interest-free plans for multiple years. Make sure to get the payment plan in writing to avoid any of the doctor bills being sent to collections, says Howard Dvorkin, CPA, and chairman of Debt.com.
If you have insurance and your provider declines to cover a procedure, Dvorkin says to appeal the decision. It also behooves you to go over the bill to spot any errors that may have added to the cost. Even saving a couple of thousand dollars can go a long way. “Health insurers make mistakes, too, so consumers should ask their insurance company about what they do and don’t cover. People with gap insurance should also check with their providers to see if their bills will be covered,” says Dvorkin.
If all else fails and you have multiple medical debts, you can try to consolidate them into one loan. This will give you one monthly payment and potentially a lower interest rate. You can also try to settle the debt, although this will negatively impact your credit score. To settle, Dvorkin says to negotiate directly with the collection agency. “Consumers who find themselves with medical bills they can’t pay should prioritize keeping their bills out of collections — all while fighting to receive a reasonable price or payment plan,” says Dvorkin.
April 25, 2023
Howard Dvorkin tells Cheddar News Americans should contact their lenders when struggling to make mortgage payments. “People are struggling out there, they’re going to continue to struggle until probably we see this inflation disappear,” Dvorkin says. “The fact of the matter is banks want to work with the people they’ve given money to. So the best tactic is to contact your bank or your mortgage lender.”
April 17, 2023
Bank of America found in a recent report that U.S. credit and debit card spending was at its weakest pace in two years. “This is most likely a response to prices being higher overall and Americans tightening their belts to lessen the blow of inflation,” says Howard Dvorkin, CPA, who is the chairman of Debt.com.
March 22, 2023
“As long as the financial institution is insured, consumers are safe; and, if they are not insured, then they face possible risk,” said Howard Dvorkin, CPA and chairman of Debt.com. “People need to verify that their bank is FDIC insured and that they understand what happens with different types of accounts like joint accounts and retirement accounts.
March 21, 2023
“We tend to think of inflation as annoying instead of dangerous,” Debt.com President Don Silvestri said. “But inflation means more than higher food and gas prices. It pervades everything we spend money on – including our physical health.”
March 16, 2023
Howard Dvorkin, CPA and chairman of Debt.com, says another option to save some cash is to pregame at home, or make a definitive budget before you hit the bars. “I would advise [people] to do most of their planning and spending before their outing,” Dvorkin says. “This way, they can save themselves from splurging on expensive dining items and the trap of planning under the influence.”
March 14, 2023
He was echoed by author Howard Dvorkin, chairman of Debt.com, who advises people to help their friends with work such as setting up the venue for a social gathering, instead of leaving money: “There are ways to meet your social obligations without ruining your bottom line.”
“Financial boundaries resemble personal boundaries,” he added. “If you don’t set them early, everyone will cross them often. The problem is, crossing personal boundaries is uncomfortable. Crossing financial boundaries is costly.”
March 14, 2023
“Between labor and ingredient shortages, coupled with the unpredictability of transportation, it has led to rising consumer costs,” says Howard Dvorkin, chairman of Debt.com. “Food manufacturers are experiencing delays waiting for ingredients and in the end they are paying higher prices, so they are charging higher prices. It’s hard to tell if food costs will go down,” he notes. “More times than not, when costs rise they stay that way.”
March 10, 2023
“I like to tell people that they should save enough money so that once they retire they don’t have to cut back their lifestyle,” said Howard Dvorkin, CPA and chairman of Debt.com. “Today, many people retire with debt that eats up their retirement income.”
March 8, 2023
ConsumerAffairs asked Howard Dvorkin, CPA and chairman of Debt.com, for the ugly truth anyone considering BNPL needs to know.
“All BNPL providers are not the same. They offer very different terms, and you need to closely review the agreement,” Dvorkin said, noting that like credit cards, BNPL arrangements have varying terms on payback, interest rates, and fees. “This definitely isn’t like paper towels, where both Bounty and Brawny will wipe up a spill.”
February 17, 2023
“People hear the phrase ‘death and taxes’ and think neither can change. While death doesn’t change, taxes certainly do. Or rather, the rules governing them change all the time,” said Howard Dvorkin, CPA and chairman of Debt.com. “The most important fact to know is that deductions come in two flavors: standard and itemized. Each reduces your taxable income. Sadly, you can’t use both at the same time. You must choose.”
FREE DEBT ANALYSIS
Contact us at (844) 845-4219
What can we help you with?