4 Simple Steps to Help You Manage Your Debt

 

Nowadays a large percentage of the population is in some form of debt. Whether your debt is large or small, it still needs to be managed. The first thing you should do is carefully monitor all your incoming repayments, and follow the below tips, which will help you repay your debt faster.

1) Know how much debt you own, and to who you owe.

First of all make a list of all your debts, including information about creditor, the total amount of the debt, the amount of monthly payment, and the date you would finally pay it off. Keep the list at hand, and make updates as needed. Without having updated information about how much debt you own, it is difficult to develop a plan to clean it up.

2) Make a calendar

Make a calendar on your personal computer or phone with information of coming payment dates and amounts. Do not miss any payments, and strictly follow the deadlines. Missed payments can charge you extra fees and interest for late payment and can trigger reporting to credit bureau which can adversely impact your credit worthiness in future.

3) Figure out minimum payment amount

You must know very well how much you have to repay during the month. Plan the outflow of the funds. If your financial status makes you capable to pay extra amounts, do it. With extra payments you will pay off the debt faster. First of all, get rid of the loans which have high interest rates. These are usually credit cards. Start from the credit card with the highest interest rate. Also, make extra repayments on your mortgage. The extra payment on a mortgage can significantly shorten the length of the mortgage.

4) Think of Refinancing

Always keep your eye on other loan options. Review the interest rates offered by concurrent credit companies, and if there are options with more comfortable terms for you, then refinance your loans. It can be an option for you to get rid of small loans by refinancing them with one larger loan. This can help you to reduce the quantity of payments you do during a month, and you no longer have to remember all repayments and dates. This also can bring the interest rate down, because usually small loans have higher interest rates than larger ones.

The Road To Financial Freedom

 

Few people get rich all at once. The chances of winning a lottery or receiving inheritance are very small.
Here are 7 steps to becoming financially independent. With patience and hard work, you can follow these steps and find financial freedom for yourself.
1) The Financially Dependent stage is when you depend on others. This is the transition stage from receiving financial aid from parents to being financially solvent. It’s important to understand that it is ok to be in this stage while you get on your feet, but that it is not a means to an end. You must use this time to plan and work towards creating a financial plan that is independent.

2) Financially Solvent. In this stage you are capable of supporting yourself with your own income, and you no longer rely on the financial assistance of your parents. This is the phase in which you must start a savings account, and think about budgeting so that you can be in a strong position within a few years.

3) Financially Stable. You become financially stable when you not only cover your current expenses with your income, but in addition you can free up some cash for emergency cases. When you are able to create such a buffer, then you have reached financial stability.

4) Financially Secured.You become financially secured when you no longer have to work full time to cover all your expenses. For example, some of your expenses (housing, utilities, insurance, etc.…) may be covered by your income from your investments.When you are able to cover all your expenses with your investment income, then you have achieved a high level of financial security.

5) Financially Independent. This is the stage when you reach the highest level of financial security and can afford to pay all your expenses including some luxury ones with the income from your investments. So in addition to covering your required expenses like housing, you have the savings required to spend money on some indulgent luxuries without breaking your bank or going into debt.

6) Financially Free. This is the most challenging stage of the road to financial Independence.This is the point when you become fully financially independent and achieve true financial freedom. You are able to afford to buy everything you like, and to make your life goals real. Now you own more than you need to fund your lifestyle, an you therefore have a significant margin of safety. This is the most important stage as at this stage you are responsible to control and wisely allocate your funds to work for you. At this stage, you should have a savings account and retirement account with adequate savings. If you are simply spending what you have, it means you have not yet become truly financially free.

Going through these stages is a real challenge, but one must find the courage to put all their efforts into reaching the last stage of Financial Independence. Once you are able to achieve that stage, you will truly be independent and financially free.

How Early Retirement Planning Can Save You Big Bucks

Saving for retirement is becoming more and more important. To live the life you dream after retirement, you no longer can rely only on savings plan offered by your employer, or on social security alone. You should begin planning your savings for your retirement as soon as possible.

Why is  a Retirement Plan needed?

  • A retirement plan helps you to set your goals, decide at what age you want to stop working, and lead the life you want to lead after retirement.

  • Drafting a retirement plan helps you to calculate how much you need to save now to have your dreamed retirement life.

  • A retirement plan helps you decide where to invest by taking into consideration your income, risk tolerance, and age.

Retirement Plan Examples

 

 Saving for 40 yearsSaving for 30 yearsSaving for 20 years
Monthly Investment$ 100.00$ 100.00$ 100.00
Interest Rate4%4%4%
Total Contribution$ 48,000.00$ 36,000.00$ 24,000.00
Total Interest Earned$ 70,196.00$ 33,405.00$ 12,677.00
Total Value of The Investment$ 118,196.00$ 69,405.00$ 36,677.00

 

The earlier we begin to contribute to our savings, the greater the outcome we receive after retirement as a result of compounding interest. That is why the decision to start saving money in your 20s can be one of the best financial decisions you make in your life.

Here are some tips to get the most from your Retirement Plan

  • Start contributing to your retirement as early as possible

  • Set up automatic withholding from direct deposits in your current account, and have them go into a special retirement account.

  • Take into consideration that contributions to traditional 401(k) retirement plans are tax deductible and can therefore reduce your income tax.

  • Diversify your investments (do not put all your eggs in one basket)

  • Choose an investment plan that offers low management fees.

  • Choose an investment plan that takes into consideration your income level, tolerance to risk, and your age. 
  • Avoid early withdrawal of retirement funds. There is usually a penalty for early withdrawal of funds. Try to put aside some funds for emergency cases so that you don’t have to withdraw from your retirement savings in a pinch.

Types of Investment

Types of Investment

Do you have free cash and want to invest it without worrying about losing the money?  Unfortunately, this is where you get into the realm of risk and return. Getting high return sometimes requires risk. However, while prices of corporate stock and bonds can experience significant upsides and downsides, many government securities are risk free and guaranteed by the Federal Government. There a few  types of investment to keep in mind, which we will overview below.

Savings Accounts

Savings accounts are the most liquid type of investment. Money is always available for withdrawal from the account. You should only check that the saving account is FDIC insured (Federal Deposit Insurance Corporation). Maximum amount coverage at one bank is 250,000$, so ensure that you do not put more than that in one bank.

Certificate of Deposit

Certificate of deposit is a great tool to use when saving money for a big purchase, such as saving money for the down payment of a house or a car. CD’s pay a higher interest rate than a savings account, but are less liquid. You can get a CD with a term starting from 3 months to 10 years. You can also build a CD ladder and strategically manage your money. This involves buying multiple CDs at one time, but with different maturity periods: 1 year, 2 years, 3 years, 4 years, and 5 years. Your CDs will mature every year giving you two options; to cash out the funds, or roll them over into a new CD with a 5 year maturity term.

I” Saving bond

Buying “I” saving bonds is a great way to invest if you want to be protected from inflation. “I” bond is the only investment tool that the Government of the United States guarantees. If inflation picks up, you will earn more interest through the inflation adjustment. If the prices go down and there is deflation in the economy, the interest on “I” bonds will be adjusted with deflation. However the interest rate on “I” bonds has floor cap of 0% and will never go negative, meaning your purchasing power would continue to increase with decreased prices even if you are earning zero interest on your money.

Treasury Bills

Treasury bills are short term securities having maturities up to one year. They are sold through auctions and mainly at discount. This means that you are eligible to buy a treasury bill with a face value of 1,000$ at discount price (i.e. 975$) and you would receive your 1,000$ at a time when you redeem the bill (after one year). In this case  you would have earned an effective yield of 2.6%.

Treasury Bonds

Treasury bonds have long-term maturities of up to 30 years. These bonds make interest payments semiannually. These government bonds offer a yield of up to 3%. These are safe investments with zero risk. You can combine this type of investments with other ones and use them as a shelter for your  other investments.

Appendix 1

 Interest yields as of Oct 2015

Type of investmentYieldType of investmentYield
Treasury bill 1m

0.01%

US Municipal Bonds 1y

0.28%

Treasury bill 6m

0.13%

US Municipal Bonds 2y

0.52%

Treasury bill 1y

0.24%

US Municipal Bonds 5y

1.25%

Treasury bill 2y

0.66%

US Municipal Bonds 10y

2.10%

Treasury bond 3y

0.94%

US Municipal Bonds 30y

3.16%

Treasury bond 5y

1.43%

CD 3m

0.55%

Treasury bond 7y

1.81%

CD 6m

0.90%

Treasury bond 10y

2.09%

CD 1y

1.30%

Treasury bond 20y

2.54%

CD 2y

1.52%

Treasury bond 30y

2.90%

CD 3y

1.85%

Inflation Protected Securities 5y

0.18%

CD 5y

2.45%

Inflation Protected Securities 10y

0.56%

Saving Accounts

0.05%

Inflation Protected Securities 20y

0.84%

  
Inflation Protected Securities 30y

1.19%

  

How To Manage Your Credit Card



Chances are you have been advised to obtain (or avoid) a credit card at some point in your life. But before getting one you should ask yourself whether you need it or not. Credit Cards have the potential to be one of the most divisive products. Try asking around about credit cards and you will find many people that pay their bills using one, along with others that will assure you that credit cards are pure evil.

First, a Credit Card is nothing but a financial tool, and in order to benefit from it, you should acquire all the necessary skills and knowledge about it that you can. Credit Cards allow holders to borrow and spend money within an agreed limit. After using funds, the borrower will be charged interest until the credit balance is cleared. Every month the credit card owner gets an itemized bill of everything he/she has spent during the whole month. Some cards offer interest free grace periods, and if the owner clears the credit balance within the grace period, no interest is charged to them. You should check whether the card offers a grace period or not, as this can save you a lot in the long run. Terms and conditions differ from bank to bank, so carefully review all the terms and conditions offered when you decide to get a credit card. Lastly, always make sure you have enough funds to make the minimum repayment on your credit card. Failing to do so can trigger default notes which can affect your future credit rating.

Tips on choosing a Credit Card

With credit cards, people usually spend more money than they have. As credit cards allow making purchases within the credit limit at any time, people tend to spend more money than they otherwise would, which often results in financial instability.

So before getting credit cards, carefully check terms and conditions offered to you:

What is the interest rate applied. Is there any fee/penalty for not utilizing balances?

Does the Credit Card give a interest free grace period? How is the grace period calculated?

Does the Credit Card give a interest free grace period for non-cash transactions, or only for cash transactions?

Are there fees and charges for cash transactions (i.e. withdraw from ATM)?

Is there minimum repayment amount, and when is it due?

What are the annual fees and charges?

 

How are penalty fees calculated if you miss the minimum repayment amount or interest payment?

In addition, be sure to follow these rules so that you don’t fall into a credit trap:

Try avoiding any type of cash withdrawals. There can be hidden costs for cash advances. These often refer to but are not limited to withdrawals from ATM machines and banks. Even some kinds of transactions(i.e. buying traveler check) could be classified as cash withdrawals and cost you.

Always stay within your limits. Banks can allow you to go beyond your credit limit and then immediately charge you for an unauthorized overdraft.

If you are able to fully repay and clear up you credit limit, do it! Interest rates on credit cards are usually higher than interest rates of other consumer loans, so using a credit card as a source of financing can be more costly if you aren’t making payments.

Think twice before making a purchase with your Credit Card. Ask yourself if you really need to make the purchase with the card, or if you can make the purchase in cash. Sometimes it can be helpful to only make certain types of purchases (like gas or groceries) on your credit card, so that you don’t forget to keep track of your credit balance. 

To Rent or to Buy?

Rent-or-Buy1

 Buying a house is one of the biggest financial decisions a person can make in their life. Before making a decision that can affect your future, spend some time to think about whether buying a house is better than renting one. The best way to make the right decision is to consider all the factors that affect  you and your family. Every individual should look at his or her unique situation and conditions. However, here are some tips to help you identify the advantages and disadvantages of both options and choose the best one for you.

Benefits of buying a house

The biggest benefit to buying a house is that after paying the mortgage you will become the owner of it, and will not have to worry about where you and your family will live.

Another benefit is the increase of property value you own. The increase in value gives you an opportunity to sell the property at a higher price in the future and receive capital gain. Otherwise, when renting the house the increased value remains with the property owner. Moreover, the ladder can bring an increase in the rent over time. However, note that houses do not always go up in value. There are several tax advantages when buying a house. Interest paid on mortgage is tax-deductible, hence decreasing the income tax you pay.

You should consider not only mortgage payments when buying a house, but also property taxes, insurance payments, and maintenance expenses. In a rent situation, these are fully financed by the owner. As Robert Kiyosaki outlines in his bestseller “Rich Dad, Poor Dad”, buying a house can be a liability, as it requires continuous investment.

Advantages of Renting

The initial investment to rent a house is much lower than buying one. Sometimes you have to make advance payments for the first month, but this is nothing compared to the investment on a home purchase. As mentioned before, the renter of a house also has limited responsibility when it comes to repair and maintenance. When renting a house you also have the flexibility of relocating if necessary without being tied down to a property investment.

Several possible conflicts can arise between the owner of the property and lessee that cannot be easily solved, so be sure you read your lease thoroughly and have a good relationship with your landlord. Remember that you cannot renovate a home as you wish without the agreement of the landlord.

Homeowner Calculations:

Here is a sample for financial comparison:

BuyRent
House  Value $  300,000Monthly rent $           (1,000)
Mortgage 30y, 6% $  300,000Rent increase3% annually
Annual Maintenance $    (1,500)Monthly Savings 3%500$ (1500-1000)
Increase of House value2% annually  
Monthly mortgage repayment $    (1,500)  
Let’s assume after 10 years of owning a house, you decide to sell it:
Sell price $  370,000Savings $         130,000
Remaining Mortgage $  260,000  
Net Amount received $  110,000  

 

In this particular case renting a house is more beneficial than buying one. After ten years of repaying the mortgage when we decide to sell, the house values 370k, 260k from which we use to pay the remaining mortgage amount (260k), and net the remaining 110k. On the other hand, by renting the house for these ten years we would have been banking savings of roughly 130k as opposed to 110k.   However, if the annual percentage increase of house value figured 3% instead of 2%, we would have a different picture entirely. In such a case, the net amount remaining after repaying mortgage would figure out to 140k, which is better than the $130k savings with 2% house value increase.

Conclusion

Before choosing to buy or rent a house, you should very carefully calculate what your savings/earnings will be down the road. Consider all the advantages and disadvantages of buying or renting before making a final decision. Whether you will regret buying or renting a home depends entirely on YOU.

Reasonable vs. Unreasonable Debt

Avoiding debt and bankruptcy isn’t always easy, especially when necessary expenses put a hole in your pocket. But while some debt may be hard to avoid, other forms of debt can take place due to financial negligence. In this article we overview the difference between reasonable and unreasonable debt, and how you can avoid falling into the pitfalls of irresponsible financial activity…

Get-Out-of-Debt-Step-9

Reasonable Debt

AWhen we speak of reasonable debt we’re talking about items that are more on the scale of necessity vs.luxury. These are basic tools or vital things used to improve our general way of life.

1. Buying a new house
It is very rare that the average American can pay upfront money on a home, which is why loans are such a very important commodity. Of course, in 2008 we saw the abuse of such loans with the eruption that shook up our financial institution. After the gratuitous use of them, we finally realized that there should be strict laws enforced on who is able to be granted such loans. That should not suggest that if a financially responsible person is in legitimate need of them that they should be denied. Housing is a basic human need so this is a reasonable debt, so long as the home purchase is being paid off in a timely manner and is not excessive otherwise it is hard to classify it as such.

2. Purchasing a reliable vehicle
As people have to travel further distances for work, school or child care, it is a fair request to want a safe and reliable vehicle. This also falls under the category of not being excessive with the purchase to allow it to be a justifiable debt expense. Let’s be honest, who doesn’t want a jaguar or Ferrari?? If you can afford it outfight by all means that is your choice, however if you don’t want to be in debt for many years to come, be realistic on what your choices are financially in this arena then go from there.

3. Student loans
There is a lot of debate on the topic of student loans with this current political campaign. Hopefully it will create momentum for improvement this area if we want a future with well-educated people in our country, yet as it stands education is incredibly expensive. With the current state of things, if one wants to get a leg up in the financial word as the saying goes “you have to spend money to make money”. For that reason taking out loans towards a college degree is understandable. The choice of what you decide to have a degree in can make or break how much money you obtain and how long it will take to pay off these loans. So if having a specific degree appeals to you, make sure you understand the monetary implications involved and what is important to you. Determine if your career path is in demand and thriving or if it will be a difficult financial path. The choice is yours ultimately so invest in your education wisely.

4. Relocation for better work/life
Sometimes circumstances change and you need to adapt with them. Being offered a job in another state or city where your quality of life while improve in a facet that matters to you is a step in that direction. Having temporary debt knowing your relocation is for the benefit of the situation is a reasonable debt.

5. Family health care
Life is unpredictable, some things are unavoidable. The current state of our health care system has left gaps in many people’s lives, so when a situation occurs it’s important that we understand how debt can be reasonable in this case. Many times hospitals will negotiate paying off debt in increments to cushion the financial blow. Be sure to ask what they can do for you so your credit isn’t impacted negatively or you fall into bankruptcy.

debt_consolidation_fees1-e1325787754284

Unreasonable Debt

When we speak of unreasonable debt this includes items that are essentially things we could live without vs things that help us function in our daily lives. Not knowing the difference can lead down a path of circular debt, eventually cause more stress then they are worth. Know how to live within your means.
 
 

 1.       Clothing/Jewelry

Is what you are looking for practical and useful? If not and  you can afford to buy it outright after all your financial responsibilities are tended to, then buy all means make that purchase. However, if you are pulling out credit cards with payments you still owe, or overstretching your budget by dipping into food or housing expenses, then chances are your decision of clothing, shoes, jewelry or watches should be reconsidered until you have that straightened out.
 
 
 
2.       Luxury Travel
Sitting by a beautiful beach of rolling tides, sipping a pina colada, and gazing at glistening sands sounds amazing to pretty much anybody. Now unless you have been working like a dog,  you are on the verge of a break down and haven’t had a vacation like that since you can even remember, it’s pretty safe to say you may have to rethink this one through.  Not that you don’t deserve it, but really unless you have saved your money or can guarantee you can pay this off with a quick turn-around, your relaxing vacation can turn into a financial nightmare quickly. Either save up or take a super low key vacation within your budget.
 
 
 
3.       Dining out or Nights on the town
Fancy dinners are great, so are nights out with friends, until we get the check. Reality hits quickly after you realize how fun outings can be expensive. Before going out it’s always worth checking if you can swing it financially, if not maybe take a rain check or plan on having an occasional splurge night knowing you will pay off any debt accumulated immediately, and actually do it.
 
 
 
4.       Accessories or Gadgets
 
James Bond has some incredible gadgets; then again he is James Bond. So unless you have some gold bars locked away in a vault make sure your purchase is actually something based in financially realistic terms.  Be aware that technology and gadgetry are consistently being modified and updated. If you must have it, realize it always comes with a price it’s up to you to be responsible for that decision in the long run.

Questions To Ask Yourself Before Making A Purchase


In todays economy, it is no wonder why we find ourselves overwhelmed with debt, and often times wonder if we even needed the item(s) we bought to begin with. It can be important to use scrutiny in your purchasing decisions, but sometimes it’s hard to decide what to buy and what to leave on the shelf. Here are some questions to ask yourself before making large or small purchases to avoid this mental turmoil in future.
 
 Is this an item(s) I want or need?
Often times we deceive ourselves that an item we want is something we need. This relates to the instant gratification which is so prevalent in our society. Upscale marketing is geared to circumvent the base line psychology so we are stimulated to purchase items not deciphering the difference between the two. So instead of being taken in by the product or item take a moment before pulling out your wallet and get real with yourself. If you have to convince yourself of a definitive reason to have this item or product, chances are you’re just in want and not in need.
 
Can this be considered an investable item?
If you make a purchase for an item it is a good option to consider it an investment on a large or small scale. You are choosing to spend your money on this purchase so it should be in your best interest to know it will be of use to you in a rewarding and financial beneficial way. If you feel as if the purchase gives you more loss than gain in the long run, consider it a bad investment in some facet and reevaluate your future purchases from the perspective of financial investment.
 
What is the ultimate reason for this purchase?
Be aware of you mental and emotional state when faced with a decision for a purchase that could impact you in any financial way. Your choice can be greatly skewed with these factors and can contribute to how impulsive or how rational your reasoning is at the moment of a transaction.  If your ultimate reason is not very foundational chances are that you really aren’t in the state of mind to make this decision and will possibly regret any haste choice.  Take a night to “sleep on it” and if you still feel as if this purchase is important than you will feel better about your choice knowing you gave it a second thought.
 
Can I afford it?
Be honest. If you have to put things on credit, chances are no. This all leads back to the important realism of want or need. If you can’t have it debited from your account immediately without over drafting, then the purchase may be best left alone until the finances are in order. Credit cards should be used only if you know you will be able to make your credit payments without issue.
 
As with many things in life, preventative measures can be a good thing, especially when it comes to personal finances.  How you choose to operate with money is an individual responsibility, and you make the decision on the overall outcome of where your money is going. Be aware that marketing is designed to appeal to your senses and stimulate you to be a consumer. So long as you are a conscious consumer, you will have what you need while feeling in balance with what you spend, and will be able to enjoy luxury within your financial limits.

7 Financial Pitfalls To Avoid

 

man-throwing-money-down-hole
There is no question that creating savings is important for your future. But there are a variety of financial pitfalls that anyone can end up falling victim to. These pitfalls are dangerous because they can drain your savings and create financial stress for you over time. Often times we fall into these habits without noticing the long term consequences, and what we think is a normal part of our lives is really a behavior that is draining money straight from our pockets. Today we overview 7 of the most prominent pitfalls, and how to avoid the vicious cycle that can result in bankruptcy…

1. The Party Animal: This person spends most of their money each week on trips to the bar or to the grocery store for party supplies. He/she doesn’t hesitate to buy a $12 mix drink or 8 bottles of wine for house guests. Sure, it’s great to be social, but if you’re picking up a $50 tab 5 days a week, or spending close to the same amount at the grocery store for a social gathering, you can quickly find your finances dwindling. Try to limit yourself to only one or two trips to to bar each week (or less), and if you’re going to host guests at your house, consider doing a potluck instead of buying everything on your own.

 2. The Shopaholic: This person is obsessed with buying new things. As soon as they make a pay check, they go to the store to spend it. While it’s always nice having new things, it’s important to keep your purchases in moderation. If you find yourself spending your paycheck on unnecessary items, try to create a limit to how much you spend on such items each week. If you want something more expensive than your limit, consider waiting a few weeks before you buy it. Be sure to set your limit in such a way that you still have enough to slowly grow your savings, and enough for essentials like food and utilities. Also remember to ask yourself if you really need what you are buying before you buy it. If you don’t need it, do you want it badly enough to take from your spending limit or save up for it?

3. The Diner: We all love food, but this person goes out to eat every night of the week and hates the thought of cooking for themselves. Going out to eat can add up, especially when you are doing so for 2 or 3 meals a day. Going to a restaurant can be a great reward for a hard weeks work, but it isn’t a reward at all if you end up with no savings. If you find yourself going out to eat frequently, try to find places that are more affordable but still enjoyable to you. Also try to set a limit to how much you will spend each week on eating out so that you still end up with some savings at the end of the week. Finally, go buy some kitchen supplies and get excited about cooking! Nothing can save you more food money than cooking for yourself.

 4. The Procrastinator: This person works only the minimal amount that they can without ever striving to create more income for themselves. If you are satisfied with your salary, you will never make more. If your job only demands a little bit of time, and you find yourself with free time on your hands, consider using that to your advantage. It’s always good to have off time, but it’s also important not to have too much off time. If you find a lot of time each day where you are sitting on your couch and doing nothing, consider alternative work opportunities like freelancing, or perhaps taking a 2nd day job. Remember, while it might demand energy right now, creating more savings will give you more freedom in the future.

5. The Gas Guzzler: This person drives all the time without achieving much. Driving is fun, but gas prices and car prices are too high to go on joy rides every day without any real practical reason. If you want to go on joy rides, try to limit how many you do each week. If you commute to work, try to think about what you can get done while you are out. If you get groceries and gas during your commute, then you could be saving on gas in the long run. So before you drive anywhere, make a list of things you can do while you are out. There is something to be said for hitting multiple birds with one stone. Lastly, invest in alternative transportation! A bicycle can save hundreds of dollars in gas, and so can your own two feet.

6. The Borrower: This person is addicted to borrowing, whether that be from friends or from a bank or agency. While friends can be more forgiving, borrowing from a bank or agency could create insurmountable debt that ends up debilitating you in the future. Alternatively, if you borrow from a friend, it can create tension and sometimes ruin a good relationship. If you find yourself borrowing frequently, make a point to pay off your debts as quickly as possible, and make a note on your calendar for when those payments will take place. Also ask yourself if you really need the money you are borrowing. Is the money to feed your family, or is it to try a new business venture? If it is the ladder, you might want to wait until you have saved up the money on your own before you pursue the business, despite what your ambition may be telling you.

 7. The Lender: This person has such a kind and empathetic heart that they find themselves giving out money to their friends on a regular basis, and often times that money never ends up being paid back. It’s important to be there for your friends, but be sure to evaluate what your friend is asking for before you help to give them a leg up. Is your friend borrowing from you to go out to eat, or are they borrowing from you for a vital healthcare bill? Are they borrowing because they fall into one of the financial pitfalls listed above? If the answer is yes, it probably is best to give your friend tough love and not lend them money. If you do end up lending money, be sure to write out an IOU and put a reminder on your calendar for when your friend agrees to pay it back. It can be really easy to forget you lent money, and to never see that money again.

 

 

 

 

 

Can Bankruptcy Help You with Medical Debt?

Medical Debt_Skrupa Law

At Skrupa Law Office LLC, we realize that bad things in life can happen at the worst possible times. Believe it or not, medical bills are one of the main reasons our clients file for bankruptcy in Omaha and Lincoln. The main reason many fall behind on bills isn’t neglect. Instead, it’s usually caused due to health insurance never covering the large costs of emergencies that happen. In most cases co-pays for prescriptions and doctor visits are affordable; however, when an unexpected event happens you might find yourself in a terrible situation. Continue reading “Can Bankruptcy Help You with Medical Debt?”

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