Growing Credit Card Debt

Some families were able to pay down credit card debt during the pandemic but in the last two years, with rising food and fuel prices many have had to return to credit card use. One family who had reached financial stability in 2020 has already maxed out two new cards for food and rent. Late fees, rising interest rates, global turmoil, and widespread job losses could add to the financial burden that may families experience in the coming months.

More debt, higher fees: Credit card borrowers face mounting burdens

Some Debt Has a Statute of Limitations

Did you know that most consumer debt has a statute of limitations? The amount of time varies state to state but as mentioned in the article, in California, it is four years. After that time has passed, a creditor cannot sue for that debt to be paid. Beware of companies making offers to help you with older debts because they may be seeking to “revive” the debt which is a legal practice and gives them another set time limit to collect or take legal action. As the author states, “Pay your bills,” but if you cannot and have older debts, be aware of your rights and that debt collections agencies may use unscrupulous tactics while trying to collect on outdated accounts.

Column: Not all debt is collectable. Be mindful of the statute of limitations

Business Tax Season During COVID

Thank you to the CPA Journal and Howard B. Levy, CPA for this detailed and helpful article about financial reporting, taxes, auditing and more for businesses as we approach our first tax season amidst COVID. The topics addressed include:

Use of estimates
Risk assessment.
Subsequent Events
Internal Control
Accessibility to Audit Evidence and Client Personnel
Disclosure of Risks and Uncertainties
Accounting Estimates
Valuation of receivables, inventories, investment securities, and deferred tax assets.
Impairment of goodwill, other intangibles, or long-lived assets.
Loss contingency accruals and disclosures.
Business interruption insurance recoveries.
Future operating losses.
CARES Act
Tax effects.
Government loans and other benefits.
Relief for financial institutions from certain GAAP provisions.
Revenue Recognition
Leases and Other Contract Modifications
Debt Covenant Compliance
Inventory Observations
EOM, Explanatory, and CAM/KAM Paragraphs
MD&A and Other Disclosures for Public Companies and Governments

Financial Reporting and Auditing Implications of the COVID-19 Pandemic

Some Practical Guidance

How The Younger Set Lives

Millennials are getting the raw end of the deal. Both state and national policies tend to favor the older and more affluent. Medicare costs often outweigh money paid in taxes by those who benefit, and programs that support higher education have been cut, leaving students with more debt. The millennials of our country have flat incomes and wealth is down.

What can be done about this issue? How do we insure financial safety for the youngest members of the workforce? Not to be left behind, many of this set are finding their way into politics. Maybe this will be the answer?

Opinion

The Fleecing of Millennials

Student Loans May Affect Homeownership

Rising tuition costs and student debt are becoming significant factors in the ability of millennials to buy houses. An analysis published by the Federal Reserve Bank of New York last year suggests that student debt was responsible for up to 35 percent of the decline in homeownership among people between the ages of 28 and 30 from 2007 to 2015. (Homeownership for people under 28 tends to be low.). With many young adults leaving college with large bills, even landing good jobs isn’t enough to pay their debt in a timely manner.

How Student Debt Can Ruin Home Buying Dreams

Resolution: Budget

Is one of your New Year’s goals to better manage your money? Do you often find yourself stressed about your budget, or lack there of? Want to make a real go of saving, paying-off debt and creating financial solvency? Stephen B. Smith for Young Money offers nine suggestions to better manage your finances and to achieve your goals. 9 Nifty New Year’s Resolutions .

May you have health, wealth and happiness in 2017.

Summer Job 101

This article is good because it addresses a range of ages in the “newly employed” category. 5 Financial Tips for Newly-Employed Young People offers these ideas to best utilize money earned:

Save! Save! Save!
Learn to Budget
Get Creative
Avoid Debt
Ask For Help

Advice we should all heed, no matter where we are in our careers.