August was a historic moment for Americans. AND report from the Federal Reserve Bank of New York found that Americans owe a record $1.14 trillion on their credit cards. Credit card balances reportedly increased by $27 billion in the second quarter of 2024, a rise of just about 6% from the previous 12 months.

Unfortunately, credit card delinquency rates are also higher. In the second quarter of 2024, 7% of households reported being seriously delinquent on their credit cards (90 days or more) in comparison with 5% at the same time in 2023.

Vonda Copeland, co-owner of Copeland Insurance Agency, he said that with the current economy, high rates of interest and job uncertainty, increasingly more individuals are using credit cards to satisfy basic needs. Unfortunately, it is a terrible recipe for defaulting on payments.

According to them, the average American has a complete balance on their credit card of about $6,501 Experimentand as increasingly more people seek debt relief, questions arise about whether credit card debt can become uncollectible. It seems that it depends on many aspects, including the location of the credit card user.

Factors resulting in bad debt

James Lambridis, founder and CEO of DebtMD, said creditors typically sell unpaid debts to collection agencies inside three to 6 months. Most agencies attempt to withdraw between 20 and 40% of the original balance.

Credit card debt becomes uncollectible after three predominant aspects: the expiration of the statute of limitations, a bankruptcy filing, and a call by creditors to discharge the debt.

If there may be a statute of limitations, it begins when creditors start sending notices and letters looking for payment for the debt.

“If a debt remains unpaid within the statute of limitations – typically three to 10 years depending on the state – the creditor loses the right to sue for repayment,” said Kristy Kim, CEO and co-founder of TomoCredit, adding that the debt is legally time-barred and is legally uncollectible.

Even though creditors lose the right to sue borrowers or collect their wages once the debt becomes uncollectible, Kim says the debt can still appear on your credit report and affect your rating for as much as seven years.

Shannon Sharpe believes he could be a member of the Billionaire Boys Club today if he hadn’t received bad financial advice a few years ago.

While talking about money and investing with business mogul and Dallas Mavericks owner Mark Cuban on his Sharpe platform told how he once considered investing in Google early on but decided against it after a financial advisor advised him against it.

“I remember when Google came out and they thought the stock was going to be around $85 a share,” Sharpe recalled. “I remember telling my financiers, ‘You know what, I just signed with the Ravens, I’ve got some money. Man, I would love to buy $300,000 worth of Google stock.”

Sharpe’s financial advisor thought Google’s stock was overvalued at $115 and convinced him to desert his investment. Thinking about it now, Sharpe realizes how much he could gain in the long term if he bought the stock at this price. Sharpe also spotted an early investment opportunity in Netflix that he missed.

“That s… there!” Sharpe shouted to Cuban. “With you I would be a billionaire!”

“You fucked up,” the Cuban laughed.

After a 14-season NFL profession and becoming a successful sportscaster and podcast host, Sharpe built net price of $14 million. He earned $22.3 million during his time within the NFL, which included a four-year, $13.8 million contract with the Baltimore Ravens in 2000 and a $16 million contract with the Denver Broncos in 2002.

After retiring, Sharpe was a sports commentator on CBS Sports, Fox Sports and ESPN. His latest commentary will be found from Stephen A. Smith. Sharpe also prepared cognac, who will be seen drinking on his platform, Le Portier Shay VSOP Cognac.

Considered top-of-the-line tight ends in NFL history, Sharpe ranks third in profession receptions, receiving yards and touchdowns for his position. In 2011, he was inducted into the Pro Football Hall of Fame.

Bbusinesses are sometimes missing face unique challenges on the subject of securing financial support. Whether you are just starting a business or trying to expand, grants can allow you to get financial help without accumulating debt. According to Grantwatch AND nerd wallet, listed below are five grants specifically for minority-owned businesses.

1. Brown Girl Jane X Shea Moisture

Jane girl brown and shea wetness joined forces to assist women-owned beauty brands. The firms are awarding grants starting from $10,000 to $25,000 to Black and women-owned beauty brands. To be eligible, an organization have to be incorporated within the United States and have been in business for at the very least one yr.

2. Corporate advisor “Women of Color”.

The Corporate Advisor Women of Color andoffers $2,500 grants to women entrepreneurs of color. To qualify, businesses have to be legally for-profit based within the United States and incorporated on or before January 1, 2020, and entrepreneurs have to be 18 years of age or older on the date of application. CCWC will award grants in January 2025.

Additionally, the organization provides mentoring to aspiring business owners. Visit the CCWC website for more information.

3. Global D Prize Competition

According to the organization’s website, Global D-Prize competition is an initiative that supports small businesses and addresses social issues akin to poverty.

“We provide startup grants of up to $20,000 to entrepreneurs establishing new organizations. We consider the world needs more social impact organizations and we’re creating for-profit ventures.”

This grant is offered to U.S. and international businesses. The deadline for submitting applications is November 3, 2024.

4. Wish Strengthening Program

The We wish you an area empowerment program offers grants starting from $500 to $2,000 to support struggling Black-owned businesses. Eligible businesses have to be black-owned and have at the very least 20 employees. They must even be based within the United States.

5. HerRise microgrant

The HerRISe microgrant The initiative supports women-led businesses. The organization awards a $1,000 grant to a business owner every month. The company have to be at the very least 51% women-owned, incorporated within the United States, and have gross revenues of not more than $1 million. Grant applications closed on the last day of every month.

For more information on grants for Black-owned businesses, visit US Small Business Administration.