Save Money Without Clipping Coupons

There are plenty of articles about how to slash your holiday spending. Sure, you can clip coupons, make retailers play "match the markdown price" and spend your Thanksgiving evening loitering in some dark, damp parking lot guarding your place in line so you can snag those Black Friday door buster deals.

Alternately, you could try a more cerebral cost-cutting strategy. Here are five ways to psych yourself into saving money.

1. Sweat the big stuff

No need to drive around all day to find the best price on wrapping paper and snowglobe stocking stuffers (unless you're really sick of rewashing the dishes just to avoid the in-laws). Concentrate your cost-cutting first on high-dollar purchases -- big-ticket items where saving 20% puts some real cash back in your pocket. Then tackle the smaller stuff as time, energy, and sanity allows.

2. Do some retail recon before you shop

You won't know whether you're getting a real bargain or a dud deal unless you have some pricing history for comparison. Many stores don't include an item's original price in their advertising circulars. If the original markup was helium-high, even 50% off is hardly a "sale." Keep a folder for sales circulars on items of interest, so you aren't suckered into buying something that seems like a good deal until you get it home.

3. Don't fall for the upsell

Skip the extended warranty, which can pad the price of the item by 10% to 30%. With just a few exceptions -- such as treadmills and big-screen HDTVs -- warranties are rarely worth the extra price, according to Consumer Reports. If you feel the need to purchase extra protection, pay no more than 15% of the product's price, and buy the manufacturer's warranty, not the store's version. Same goes for all those extra doodads that are displayed near the only item that's actually on your list. It's called an "up-sell" for a reason -- it drives up your tab and the store's profit margins.

4. Shop with blinders on

Avoid last-minute upgrades by picking the must-have features and target price range for more complex goods such as electronics and small appliances. Studies show that the more choices shoppers are given, the more likely they are to trade up to a fancier (an unnecessary) model. So weigh the merits of each product independently. Compare like with like -- and erase from your mind the alternatives that don't fit your criteria.

5. Go on an all-cash diet

Yes, credit cards are convenient -- they offer purchase protection, rewards, an easy way to track your spending (albeit after the damage is done), and they take up less wallet room. But they're also too convenient. Studies show that people spend more -- and more impulsively -- when no actual cash changes hands. Plastic makes us devalue what we spend because we don't experience the immediate loss of buying power that we do when we pay with cash. (Why do you think they use poker chips and not actual currency in Vegas?) If you tend to overspend, leaving your credit cards at home during the holidays can be a serious boon to your bottom line.

Source: The Motley Fool

Florida is First in Foreclosures

Sometimes, being in first place is not a badge of honor. Take Florida, for example, which currently holds the dubious distinction of being first in the nation in foreclosures.

The Palm Beach Post informs us that close to 1 out of every 5 homes loans in Florida was delinquent in payments by 90 days or more, or was somewhere in the process of foreclosure during this last quarter.

The state has almost 3.5 million outstanding loans, and more than 13% are in trouble. This type of economic behavior does not bode well for a recovery. It also indicates that another large group of foreclosed homes is about to crash into the real estate market with a resounding thud.

This somewhat alarming foreclosure statistic is not being helped by Florida’s other problem, an 11.2% unemployment rate. Experts do not expect employment to alleviate before the second quarter of next year, by which time it will have risen, according to projections, to 11.4%.

While Florida’s foreclosure figures seem high, the reality is, according to the Mortgage Banker’s Association, that 1 out of every 7 loans across the nation is in foreclosure. This is an increase from the 1 out of 10 that began the year.

Florida foreclosure rate is closely followed by Nevada, California, and Arizona. These four states are responsible for 43% of the new crop of foreclosures that is due to hit the market.

In addition, foreclosure filings in October of 2009 showed an 11% increase over those from a year earlier, and are up more than 25% on a year to date basis. According to the Boston Globe, it is not subprime loans that are spurring the foreclosure increase; instead, it is rampant unemployment, which stands at a 26 year high nationally.

Nationwide, the rate of joblessness has moved beyond 10% and expected to rise above 11% before it turns around sometime next year.

What is extremely alarming is a report from the Mortgage Banker’s Association that fixed-rate home loans, which were often made to people with excellent credit, are also falling victim to foreclosure. These formerly credit-worthy individuals are succumbing to unemployment. When faced with a choice of feeding a family or paying a mortgage, food always wins out.

What may be even more disturbing is that the Federal Housing Administration (FHA), which has been holding the housing market together by insuring more than 40% of new home loans, reports that more than 18% of those who hold FHA loans are delinquent by at least 1 payment.

Source: huliq.com

Debt Relief Grants To Clear Credit Card Debts

By: Walter Sigmore  
Debts are dreaded by almost everyone. No matter how confidently one promises to himself about using the credit card only when the need arises, all the users end up being guilty for having made purchases that are well beyond their budget. This in turn directs them to huge debts, which necessarily means headache. Debt relief grants can come to your rescue now. With these grants, it is easier to get rid of your debts and lead a peaceful life.


These debt grants can be utilized for your educational purposes, health care, to clear your household or store debts, etc. The good thing about such grants is that the rate of interest is relatively low and repayable by any person with not so good financial status. These financial grants are issued by debt consolidation companies and also nonprofit organizations. The nonprofit companies provide relief to people who are in critical financial crisis and can hardly find any means to get out of the same.

Credit counseling should be the first step that any person who is fully submerged in debts should look forward to. This will help him analyze the various options left and which one suits him the best so that he can comfortably get out of the debts. Normally, a person who has huge debts to clear will be in a confused state. Hence, it is necessary to submit to a credit counselor.

Before you can attend these sessions, you are required to collect all your credit bills and other debt bills. When you carry these to the credit counselor, he will analyze your financial status and with his experience, will provide you with all the possible scenarios. A good counselor will strive hard to lead you towards personal freedom and helps in stabilizing your future.

There are umpteen credit consolidators in the market today. While most of them genuinely struggle to help you out, there are scams too. You should conduct a brief research on which company has been successful in helping the debtors to restore their life like before.

You can compare the success rates of the various companies and zero-in on the best company that can help you out. You can try looking for nonprofit companies that offer debt relief grants for people who are in terrible crisis. If your condition is really poor, then you can benefit from such grants. Start today with ending your bad debt.

Source: Article Snatch

How to Set Up an Emergency Fund

“Most financial advisers recommend building up emergency savings equivalent to three to six months’ worth of living expenses… however, some recommend a fund to cover eight months’ living expenses.”
Emergency Fund?

Respondents (n=122) in Wi$eUp’s latest online poll have…

42% – NO emergency fund

26% – less than 1 month’s savings on hand

15% – 1-2 months’ savings on hand

7% – 3-4 months’ savings on hand

3% – 5-6 months’ savings on hand

7% – more than 6 months’ savings on hand

(http://wiseupwomen.tamu.edu/03-resource-center/polls.php)

The Wi$eUp poll results highlighted above illustrates a challenging reality for many families – NO or very limited emergency savings. Polls and studies reported in the media frequently talk about people being “a paycheck away from financial disaster.” Is it possible to be proactive and establish an emergency fund even during tough economic times? The answer is, yes, if you are able to make it a financial priority. That may not be easy when money is tight, but it is important.

Just what is an emergency fund? Your emergency fund is a reserve of money intended to cover basic living expenses IF you experience a financial emergency, such as losing your job or other sources of income, or having an unanticipated, catastrophic expense (perhaps a medical expense or a major household expense).

Here’s how to start an emergency fund…

• First, do the math. What are your “bare bones” monthly living expenses? That is, what is the least amount of money you would need to cover the very basics and not fall behind with your monthly bills? This amount is
generally less than what you actually spend on a monthly basis.

• Once you know the monthly fi gure, multiply it by three, six, or eight – whatever is your goal for how many months’ worth of living expenses you want to build up.

• Next, determine how much you can save regularly on a monthly basis.

• Then decide how long it will take you to build up your emergency fund. Remember, you do not have to fully fund your emergency fund overnight!


Example:

• “Bare bones” monthly living expenses = $2,100
• Emergency fund goal (3x, 6x, or 8x) = 8x
• Total amount needed to fund it = $16,800 (8 x $2,100)
• What I (we) can aff ord each month = $300
• How long it will take to build it up = 56 months
($16,800 divided by $300)
• In the example, 56 months may seem like a long time, but remember the money can be accessed for emergencies if needed during this time. And you can always alter your goal.

• Designate a special savings account to hold your emergency fund. Select an account that will accrue interest or earnings and is liquid (accessible when needed without penalty), but don’t make it so easy that you will “raid” the fund every time you need a litt le “extra.”

• For more information on emergency funds and set-aside accounts, check out

Chapter 5 – Savings Basics at Wiseupwomen.org

The Importance Of Finding A First-class Bankruptcy Attorney

Bankruptcy. It’s not a decision anyone comes to lightly. For most people it is, as it ought to be, a last resort, chosen only after other options have been exhausted. Before you even get to point of considering bankruptcy, you’ve probably already been through disappointment, discouragement, worry, and many gut-wrenching bill paying sessions.

Don’t compound your troubles by trying to make decisions about bankruptcy without good expert advice. A reputable Phoenix bankruptcy attorney can review your situation and will honestly let you know whether or not bankruptcy is the best option and if you are likely to qualify. If you are unsure where to begin finding an attorney, you can check with the Maricopa County Bar Association. Their referral service can help you find a competent and reliable Phoenix bankruptcy lawyer. A creditable lawyer will charge you a nominal fee for an initial consultation, at which point you can determine if this is the right person to help you move forward with your bankruptcy filing.

Good advice can help you determine the best way to manage your debt and get your life back on track. It will take time, but eventually your can regain a good credit standing as well, certainly faster than if you continue to miss payments or try to borrow more and more to catch up to your debt obligations. Your bankruptcy lawyer will assess your state of affairs and let you know which form of bankruptcy is the better option: Chapter 7 or Chapter 13. These labels refer to the federal codes regulating bankruptcy, and your personal circumstances, including type of debt and assets you may want to protect, will determine the better choice.

Many people will not even have an option, as you must meet the standards of a means test to qualify for a Phoenix Chapter 7 bankruptcy. Congress passed a sweeping new bankruptcy law in 2005, making it more difficult for people to qualify, and file, for bankruptcy.

The reasoning behind the new bankruptcy regulations was that too many people were carelessly piling on debt and using bankruptcy to get out of their obligations. If you find yourself facing this incredibly difficult decision, you probably think that any member of Congress ought to try walking in your shoes for a while. They might become aware that injury, illness or job loss does not constitute carelessness. When you find yourself in this challenging position, don’t tough it out alone. Find yourself a good Phoenix bankruptcy lawyer to help you guide you through to the light at the end of the tunnel.

Source: Lawyers-Law.com

Home Affordable Modification Program

In March 2009, the US government declared an initiative that was set into motion so as to aid homeowners to keep their homes and put off the threat of foreclosure. This program gives each homeowner in financial duress a glimmer of light in an area that seemed so dark and it is called the Home Affordable Modification Plan.


President Obama put this plan into effect this year in order to pull people out of possible financial disaster and keep the economy ticking along. The majority of homeowners who have a mortgage could possibly be eligible and monthly payments will be largely lowered to a point where their mortgage payment fits into their budget.

This fantastic initiative has shown to be a massive break for those homeowners who have come close to losing their house and the government has permitted thousands of dollars to help give both the consumer and the economy a large helping hand.

Who is eligible for this initiative?

Because of the giant number of homeowner's and the fact that the majority of lenders are not suitably staffed, now is the time to jump in and attain help in paying down your mortgage. It will assist you to avert foreclosure and the credit issues that will haunt you for the next umpteen years. There are guidelines put into place that will allow you know if you qualify for the home affordable modification plan.

The main qualification is that you received your current mortgage before the beginning of 2009.

It is imperative that your home be both owner occupied and your primary residence or you will not be entitled. To qualify, the property cannot be an investment and the house cannot be left sitting empty under the terms of this plan. The basics are that the house be your current residence. You will have to document proof of residency with some sort of bill with your name and address on it during the application process.

How much money you make monthly needs to fall into a particular area and guidelines. Talk to a professional ahead of you continuing the process.

Throught the application process, there will be numerous factors being evaluated with your income, expenses and assets being one of the largest parts. Don't rush things and take care to include everything you own that has any true value. If you don't disclose anything you could lead to future problems and keep you from qualifying for this program or government assistance in later years.

Additionally an important point that needs to be made is about those who are currently in the middle of a bankruptcy suit. Don't automatically think that this fact will completely rul you out from this modification scheme. Simply ensure that you are truthful with regards to all that your lawsuit entails at the time of your application.

The initiative will come to an end by December 2012, however all payments will keep going for numerous months after the finish.

The Treasury Department has provided a cash incentive to those who apply early for this plan and make timely monthly mortgage payments. This is a way to encourage people to sign up and the government hopes this will reach everyone that is entitled.

The Home Affordable Modification Plan has been created to make fantastic steps in assisting folks to lower their mortgage payments and put off foreclosure. In the state of our current economy it has taken the burden off many homeowners' shoulders. Now numerous individuals might have a long future with the home they worked so hard for.

Source: CMLC Mortgage

Avoid Bankruptcy Double Jeopardy

Our guest author for this post is Morlino and Lathea Morris on How to Avoid Bankruptcy Double Jeopardy

As more people remain unemployed and layoffs continue, more and more consumers are finding themselves unable to pay their bills and forced to file Chapter 7 bankruptcy. Although you expect your credit score to take a hit when you file bankruptcy, you shouldn’t be penalized twice. But many consumers who have filed bankruptcy and anxiously applied for financing soon after their bankruptcy is discharged, are shocked to learn they have been denied only because the credit bureaus have failed to do their job. Credit bureaus sometimes don’t update consumer credit reports to show debts that are included in the bankruptcy. A court ruling requires the three credit bureaus - Experian, Equifax and TransUnion to report all debts that are discharged through Chapter 7 bankruptcy to be listed as such on consumer credit reports. Delinquent debts that were discharged through bankruptcy that still appear on your credit report not updated will negatively impact your credit score. Why? These debts will be looked upon as current debts and will appear to a potential lender that you still owe these debts.

A customer who has been using our Complete Credit Management Toolkit to smartly manage his credit after filing Chapter 7 bankruptcy, unfortunately, missed a very important follow-up step. He spent a period of time getting his family finances in order and remaining debt free. But it wasn’t until his mortgage application was denied, that he realized he had failed to take a very important step. Had he reviewed his credit reports after his bankruptcy was discharged, he would have discovered credit cards debts that had been included in the bankruptcy were being inaccurately reported on his credit reports. So despite the fact in reality he was debt free, to the mortgage lender he was carrying more debt than he could afford, and he was delinquent on these accounts as well. The lesson here is this, if you see a bankruptcy in your future, remember, once your bankruptcy is discharged, your job is to follow-up with the credit bureaus to make sure they have done their job. Unresolved errors will negatively impact your credit worthiness. Here are some Smart Credit Moves:

1. Request a copy of all three of your credit reports from the three major credit reporting agencies, TransUnion, Equifax and Experian. You can get them free online at www.annulacreditreport.com or call 877-322-8228.

2. Examine your reports carefully for errors. Pay particular attention to any accounts that were discharged as part of a bankruptcy. Any civil judgments discharged in a bankruptcy should be reported as discharged or included in bankruptcy and show a zero balance. Any other accounts discharged in bankruptcy should be reported as discharged or included in bankruptcy and show a zero balance versus showing charge-off or any other reporting.

3. Report to the credit bureaus any errors uncovered. Send them a copy of the credit report with the errors high-lighted, include any supporting documents from the bankruptcy court.

During these economic times, it’s more important than ever for consumers to review their credit reports for inaccuracies that could cause their credit score to plummet -and interest rates and insurance premiums to spike! It is your responsibility to make certain credit bureaus are doing their job. Be Proactive!

Source: Rosie's Boomer Review

I May Inherit Money Soon After My Bankruptcy Discharge, Now What?

The bankruptcy law says that if a debtor inherits money from someone who dies within 180 days of the date the debtor filed bankruptcy, that money becomes part of the bankruptcy estate even if you received a Chapter 7 bankruptcy discharge. What that means is that if you filed bankruptcy September 30, 2009 and a relative/friend died December 30, 2009, and you inherited money from them, you would need to report that money to the bankruptcy court and it would become part of the bankruptcy estate. However, it is not illegal to make plans so that your inheritance does not fall under the jurisdiction of the bankruptcy courts. Here are your options:


•Your friend/relative can setup a spendthrift trust for your inheritance. The bankruptcy court cannot seize a spendthrift trust if it is properly created. You will need an attorney to properly create the spendthrift trust and avoid trouble with the bankruptcy court.

•Your friend/relative can rewrite their will to remove you from it so that another person inherits the money. That person, if they choose can then gift the inheritance to you 180 days after you filed bankruptcy or they may be able to give you the gift before the 180 days has lapsed because the bankruptcy court cannot seize gifts after your bankruptcy has been finalized.

•You can simply not claim the inheritance. You are not by law required to claim an inheritance.

Remember, there is nothing wrong with planning to maximize the benefits of bankruptcy. You can legally do so by planning the timing of an inheritance or using tools to avoid the seizure of assets in bankruptcy. However, it is illegal to hide an inheritance, by not telling the bankruptcy court about it or using illegal means to avoid including it in the bankruptcy estate. If you plan to receive an inheritance during or after your bankruptcy please discuss with your bankruptcy attorney, how you can protect this asset.

Source: Reed's Bankruptcy Blog

Surviving Bankruptcy

Getting through painful process requires composure, organization and advice.
By Thomas Gnau and Vince McKelvey

When ‍bankruptcy appears to be your least bad option in a sea of bad options, what should you do? In plain English: Don’t panic. Get your records together. Talk to your attorney. How do you know you’re headed for ‍bankruptcy?Unfortunately, that may be the easy part. “Most typically, when you’re headed in that direction, you’re having trouble paying your bills,” said Ronald Pretekin, attorney with Dayton law firm Coolidge Wall. You also may be tempted to divert federal and state withholding taxes to pay creditors, Pretekin said. If so, resist the temptation. Such diversions simply create bigger problems, he said. “Responsible officers can be held personally liable for dealing with those issues.”

One of the first questions Pretekin asks clients: Where do you stand on your taxes?

Matters get murkier — for nonspecialists, anyway — when it comes to the array of ‍bankruptcy options.

Miami Twp. attorney Wayne Novick chairs the Dayton Bar Association ‍Bankruptcy Committee. Business structure determines the kind of ‍bank‍‍ruptcy protection available, he said.

In general, businesses can shut their doors in Chapter 7 or attempt to continue operating and reorganize through Chapter 11. The law does not allow corporations to file Chapter 13.

An individual “doing business as” can file Chapter 7 (to shut the doors), Chapter 11 (to reorganize) or Chapter 13 — sometimes known as an option for “smaller guys,” Novick said. With Chapter 13, if a nonincorporated business can produce a suitable plan, a court can allow it to move forward with perhaps less oversight or influence from creditors.

Chapter 11 means holding off previous creditors while trying to attract or work with new ones, Novick said. That can be challenging, to say the least.

Indeed, often the path to ‍bank‍‍ruptcy becomes clear because creditors are clamoring for payment — or suing.

“In this environment, I think a lot of creditors will work with you for at least some period of time,” Pretekin said. “But there’s always a point where everybody runs out of patience.”

“One of the keys is, who is going to give them credit?” Novick said. “You have to work out something with the future suppliers (creditors), and that’s where the small business Chapter 11s run into difficulty.”

Novick — talking the language of attorneys who work with entrepreneurs — says it comes down to the “input of new capital.” How will payroll be met or supplies purchased?

Attorneys need to evaluate whether a business can go forward. Good business records help that decision. Even getting something as fundamental as a monthly “P&L” — a profit and loss statement — can be difficult for some small businesses.

Other questions that demand answers: How strong is the relationship with suppliers? Can they count on suppliers to continue that relationship? Can the business operate on cash? Are accounts receivable collectable? What’s the debt total?

Fear of confronting the issue won’t help, Novick says. Talk to your accountant and attorney sooner rather than later.

“There’s no harm in that,” Novick said. “But people fear that.”

Said Pretekin, “One of the earliest things to do is talk to your lawyer, your accountant.”

Pretekin and Springboro attorney Ira Thomsen emphasize the importance of considering not just the business’ position, but that of the individual or individuals who have guaranteed loans. The question becomes: Does seeking ‍bankruptcyprotection make sense in this case?

“Do I really need to file a ‍bankrupt‍‍cy for this business if I’m going out of business?” Thomsen said.

If a business isn’t being sued by creditors, and if assets are not sufficient to pay off secured lenders, then attorneys may advise clients to close their doors and concentrate on protecting personal assets.

Assets usually are on the line when small businesses have one or two owners. Often those owners have personally guaranteed their business’ obligations, Thomsen said.

In that case, individual owners may consider filing personal ‍bankruptcies, usually a Chapter 7 or 13, but not filing for their business.

Said Thomsen, “I have not run into a situation, a small business situation, where the debt is not guaranteed.”

If there are reasons to file for both personal and business situations, often different attorneys will be needed for each side, Thomsen said.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com .

Source: GratefulLawyer.com

How to Be Your Own Life Coach and Save Some Cash

Life coaches aren't just for celebrities nowadays: lots of regular Joes like you and me have worked with, or are thinking about hiring, a coach. It's true that a good, experienced life coach can help you turn your life around – whether you want to improve your health, switch career or even overcome phobias.


However, many of us (me included!) can't afford to pay for life coaching. Should we resign ourselves to sitting on the sidelines, watching friends and colleagues forge on ahead, with their life coaches cheering them on? We could throw our hands up in the air and say, "Well, I'd be that successful too, if I could afford to pay someone to help me."

We don't need to miss out. There are ways to get many of the benefits of life coaching ... even when you're broke.

Set Aside an Hour a Week

One of the reasons that people benefit from life coaching is because they've blocked out (and paid for!) time which will be used in serious thought about their goals, dreams, ambitions and problem areas. Typically, life coaches will work with a client for an hour each week.

There's absolutely nothing stopping you from blocking out an hour in your diary, every Sunday afternoon (or whatever time you pick). I know you're probably thinking "I'm too busy" or "But what if something comes up?" If you make a genuine commitment to yourself that you'll keep that hour-long appointment, the time will be there!

There are 168 hours in a week. Surely you can invest just one of those in your own personal development!

Try Some Self-Coaching Techniques

Although you're (probably!) not a trained coach, there are some techniques you can use to help yourself get clarity and perspective about your life, and find solutions to your problems. These are a few to try:

Timed Writing

Set a timer for five minutes. Write down a problem or issue in your life (eg. relationships). Now write, without stopping or editing, about things you could do to overcome that problem. Put down everything that comes into your head, even if it seems silly.

Question and Answer

This is another writing exercise. Ask yourself a question, then write the answer. Keep asking questions if you think something isn't fully explained. Imagine the questioner as a very close friend, or as the person you'd like to become.

If you're not sure what to ask yourself, try these questions:

What would make your life better right now?

Where are you going forwards in your life at the moment?

Where do you feel stuck?

Meditation

Lots of people have preconceptions about meditation. It doesn't have to be new-agey or spiritualist – meditation is just a way of quietening your mind. It's one of the best ways to reduce stress, and meditating at the start of your hour-long session can help you to get into a calm, focused frame of mind.

If you're anything like me, you'll find that Meditation Techniques for the Busy and Impatient is a must read!

Work Through a Blog Post, Book or Program

Many life coaches, motivational speakers and other big shots in the personal development field have written books or produced programs that can literally turn your life around. There's a but coming, though ... you have to actually take some action.

How often have you bought or borrowed books, read them, enjoyed them ... but failed to change anything about your life? I love reading, and I'm too prone to rushing through books when I need to take the time to actually implement their advice.

Pick up one of the books you've read, or get hold of a good one (How to be Rich and Happy by life coach Tim Brownson and best-selling author John P Strelecky is the next on my list to work through). Spend your hour a week – or more time if you can – working through slowly, chapter by chapter. Many books will offer exercises for you to complete at the end of each chapter: try not to skip or ignore these!

Be Kind to Yourself

Finally, one of the best ways to be your own life coach is to learn to be kind to yourself. Many of us have a very critical little voice in our heads that berates us for making mistakes, getting things wrong and sometimes falling short of the mark ... in short, being human!

When you're tempted to judge yourself harshly, stop and think how a life coach would respond. Perhaps they'd remind you of the progress you have made, and perhaps they'd help you to look at the reasons why things went wrong.

Source: Dumb Little Man

What to do as the economic recovery begins

By Andrew Housser

Last week, news reports began providing data on the third quarter of economic activity, supporting earlier predictions that the United States is gradually recovering from the recession that has gripped the nation for nearly two years.

For individuals, the recovery signals a return to higher levels of employment and more economic security. If you have been walking on pins and needles in the past months, now is a good time to begin returning your personal finances to economic health. Here are some tips on being a smart, money-savvy consumer as the recovery begins.

1. Aim to save 10 percent

Try to save 10 percent of gross income -- whether it's from a regular paycheck, commission or consulting check, or babysitting money. If you cannot yet do 10 percent, choose a level to which you can commit on an ongoing basis, and work to increase it to 10 percent.

2. Prioritize your spending

As you recover from the downturn, take a fresh look at how you spend your money. Here are some smart ways to prioritize what you pay and when you pay it.

•Pay your mortgage first. If you want to stay in your home, don't risk falling behind on your mortgage, and prioritize paying your mortgage over unsecured debts. Do not borrow excessively with home equity lines.

•Pay down credit card debt next -- and stop charging. For those who are weighed down with debt - especially credit card debt -- and paying interest rates of 18 percent, 30 percent or even more, work on paying that debt off. Using your money to pay off high interest credit card debt is one of the best investments anyone can make.

•Build an emergency fund. Ideally, this should amount to at least six months worth of expenses. But any amount helps. How much really is enough? "Enough" depends on a person's individual situation. Think about the level of expense that causes you to rush to a credit card. Is it a car repair bill for $250? A medical bill for $500? Have at least that amount available, and build toward six to nine months' living expenses.

•Then fund your goals according to your budget (see the next tip).

3. Budget

Budgeting is the No. 1, sure-fire way to save money. The key is to set goals. Whether your goal is to save on weekly grocery bills, have time for a hike once a month, save for kids' college or for retirement, or take a vacation to Europe, write down the goals and build your budget with the goals in mind. For some, it may mean modifying that European vacation to, say, Boston's North End for a taste of Italy -- but whatever happens, you'll find that using a budget will help you to spend smartly.

4. Pay every bill in full and on time

You will avoid increasingly high late charges, penalties and fees. Many people spend more money paying interest (and late fees) than on many other expenses.

5. Spend with cash

Start handing over old-fashioned dollar bills for your routine expenditures. People who do not use debit or credit cards are less likely to throw that extra item into the shopping cart or make an extra purchase. If you must, take credit cards out of your wallet. Some people even freeze their credit cards in a bowl of water in the freezer. The time it takes to thaw it out can serve as a deterrent, or at least provide time to really decide if you need to use it. Bottom line: If you can't pay for something now, don't buy it.

6. Shop smart at a warehouse club

Invest in a warehouse club membership to save by buying in bulk. Everyone, from single men and women to couples and small families, can benefit from the savings clubs offer if they plan and spend carefully. Buy only what you can afford, stick with items you use frequently, and watch for good values on non-food items such as gas, long-distance phone cards and clothing. Team up with friends, neighbors or family members to split large purchases.

7. Wise up on insurance

Take the time to get a variety of quotes on the insurance coverage you carry, from health insurance to home and auto policies. Be sure you are receiving the best value for your premium dollar, and if not, switch insurers.

8. Pare down utility bills

Everyone has heard by now the advice on turning the thermostat down in winter (up in summer), installing a programmable thermostat, turning the hot water temp down, etc. To really save, look carefully at your utility bills to find out the cost per gallon of water, per kilowatt of electricity or per therm of natural gas. See where you spend the most. Then focus your energies -- including improvements such as adding insulation or repairing dripping faucets -- where you will save the most money.

If the recovery brings you and/or your family increased income or steadier income, be especially careful to budget that money consciously. By planning ahead for how you will spend -- and save - -you will gain control over your own life and the peace of mind that that power brings.

Source: WALB News

Will You Qualify For Chapter 7 Bankruptcy After Halloween?

If you are a consumer thinking about filing bankruptcy, you will want to figure out whether to file bankruptcy before or after November 1 when changes to the income eligibility guidelines take effect. For some people, the means test changes will help and for others the changes will hurt.

In Kansas, for example, median family income for families of one to three goes up while median family income for four or more person families decreases. In Florida, median family income went down for all family sizes.

The new income figures have been released so you have 21 days until October 31, 2009, to file bankruptcy, if you will be hurt by the new means test guidelines. See your consumer bankruptcy attorney to learn your options.

Congress created an income test for determining eligibility for consumer bankruptcy in the law reform of 2005. The thought was that you should only get as much bankruptcy relief as you need. Creditors complained that people were discharging all their debt in chapter 7 bankruptcy who had the ability to make partial payment in chapter 13 bankruptcy.

A math test was created to determine who can file chapter 7, who must file chapter 13, and how much debt has to be repaid in chapter 13. This test is called the means test. It starts with the median family income for your family size in your state according to data compiled by the U.S. Census Bureau and adjusted by the U.S. Trustee Program. The median income figures are changing for bankruptcy cases filed on or after November 1, 2009.

If your income is less than the family median income for your state, you pass the means test and are eligible for filing either chapter 7 or chapter 13 bankruptcy.

If your income is higher than the family median income for your state, then you keep going by filling out about six pages of information about your expenses and various deductions you are allowed to take to determine if you have disposable income to pay your unsecured creditors (the ones without collateral such as credit cards and medical bills). You could pass the means test at the end of the process if you have no disposable income and qualify for either chapter 7 or chapter 13 bankruptcy. You could even qualify for nominal repayment to general unsecured debts in chapter 13 bankruptcy. Or, if you have disposable income, you may be eligible for a chapter 13 payment plan bankruptcy.

The means test is very complicated. The devil is in the details, as they say, and your consumer bankruptcy attorney can help you determine your options.

Source: Bankruptcy Law Network

How to Keep Your Costs Down and Get Good Bankruptcy Advice Quickly

Personal bankruptcy is made for "what if" scenarios. What if I file individually instead of jointly with my wife? What if I quit my job while I am in the middle of my Chapter 13? What if I need a replacement vehicle after I file?
I don't always have the answers but I can usually think through one or two likely scenarios. I can be more effective helping you if you give me the information I need. Specifically that means the following:

•take the time to complete my intake questionnaire in its entirety. Don't leave out information that you believe is not relevant. My intake questionnaire is keyed to my bankruptcy program and I have been developing and updating it for over 15 years. Everything on my questionnaire is there for a reason – and I can serve you better if I have everything that is requested there

•get me copies of your credit reports. AnnualCreditReport.com offers a free service to get current copies of your credit reports. Current credit reports help us avoid leaving out creditors from our analysis and they can also provide other helpful information such as prior addresses and other names in which you have been extended credit

•get me copies of all payment advices for the past 7 months. The Bankruptcy law now requires all debtors to engage in a median income test as well as a means test analysis. The starting point of this analysis is evidence of income you and other members of your household have received. Payment advices should be provided for salaries, investment income, one-time checks, some disability payments, dividends, etc. If you are not sure, ask.

Sometimes I hear from clients who want to submit their information on a spreadsheet or Quicken file. Feel free to send those files along, but do not send them in lieu of my questionnaire and the other requested information.

Source: BkBlog

How to Rebuild Credit, Post-Bankruptcy

Dear Alpha Consumer,
My wife and I just emerged from bankruptcy. Before that, we both had excellent credit scores and access to good credit cards with major lenders. Unfortunately, I've been laid off three times since 9/11 because of company downsizing, and we had to charge our health insurance COBRA payments and food and other essentials to our credit cards. We only started making late payments on the advice of our lawyer, who said we had to be late prior to filing for bankruptcy.

Now, I am employed again and we are trying to rebuild our credit. We have one joint account in good standing but we would like to get a credit card or two to rebuild our credit. Should my wife and I each get a credit card under own names, or should we take out a joint credit card? Also, is it better to get an unsecured card with a higher APR or a secured credit card with a lower APR?

Lastly, if we pay off the balance each month and make on-time payments, do you know how long it will take before we rebuild our credit score and are able to get low-interest, unsecured cards from national lenders again?

First of all, congratulations on getting back on your feet after filing for bankruptcy. The good news is that you could have decent credit again within a year. The bad news is that even with improved credit, you probably won't be able to find the low-interest rate credit cards that you remember from your pre-bankruptcy days.

The credit card world has changed drastically in the last two years. Credit card offers used to be plentiful; almost anyone with a mailing address could receive an unsecured credit card at a competitive interest rate. Now, card companies have tightened their standards in the wake of rising default rates and have raised interest rates even on reliable customers. According to www.IndexCreditCards.com, the average rate is now 15.39 percent, the highest in two years.

To maximize your chances of getting the best deal possible, your wife and you should probably apply for individual credit cards. When it comes to credit, separate accounts are usually better, unless one person's credit is so poor (or nonexistent) that he needs a co-sponsor in order to take out a card, as is often the case for college students. But since you are both adults with separate credit reports, you have little to gain from taking out a card jointly, and a potential downside if one person's credit drags down the other person's. (It sounds like you have a strong marriage, but many couples also want to keep their credit accounts separate in case they divorce, in which case jointly held credit cards can become contentious issues.)

As for whether to go for an unsecured card with a higher interest rate or a secured card with a lower one, that depends entirely on what you are using it for. If you think you might carry a balance, then you should always go for the lowest-interest rate possible. But secured cards require upfront cash deposits, which you may or may not be able to provide. In many ways, secured credit cards aren't credit cards at all, but rather debit cards that give you to the extra advantage of rebuilding your credit score.

While your credit score will improve after only a year of making on-time, regular payments, it will take longer -- seven to ten years -- for your credit report to fully recover from the stain of bankruptcy. By then, low-interest rate credit cards might have made a comeback.

Source: US News

2008-2009 Recession Being Good for You!

Yup, your heard me right, the 2008-2009 recession is actually pretty good for all of us! Instead of looking at the recession as a walk in the desert, I prefer to see it as a cold winter of great warnings and doors of opportunities. It is true that recession hit very hard as a cold winter on those who didn’t protect themselves enough. When I talk about cold winter, I am talking about minus 40 degrees with 10 feet of snow… Many people have suffered from it but there is still a lot to learn from the current recession:

Investment opportunities
“Buy when there is blood on the street”. This is probably my favourite quote from Wall Street. It is a bit violent, but it clearly determines the only moment where you should use market timing: when everybody else is avoiding it! Investing during a recession will make your investment portfolio jump like you could not have imagined. It’s a classic but nobody’s doing it L. As the cold winter strikes and everybody goes inside at the first sigi of snowflakes, you can be brave enough to stay outside. You will get your stuff ready for next spring while everybody is looking at you through the window with their hot chocolate thinking “what a crazy, poor man, he has to work all winter…”. Who’s going to be the crazy, poor man after the recession? Huh?

Frugal spending
Badass winters used to strike our country while our parents (or grandparents) didn’t have much to eat, talk about genuinely rough times. As is the case during a recession, it drives to you think about managing your resources and spending more responsibly. This is when you develop frugal habits (that you will soon forget once summer is back…). The 2009 recession will definitely encourage people to save money (Canadian and US savings rates are ridiculous… as close as a 1 year CD actually… near nothing!). Spend less and save more, you will be able to eat throughout winter!

Recession improves ecologic habits
During winter, we all try to use everything on hand instead of wasting it. It is exactly the same thing with a recession. The best example would be the famous Cash for Clunkers. Governments try to stimulate the economy while appearing green (it gets good press even though not the primary goal!). While you have less money in your pocket, recuperating your old stuff becomes the best idea you can have.

Appreciate things we have
I always laugh when I hear people talking about the weather in Quebec. They spend their whole summer complaining it is too hot and once winter arrives, they whine about the cold weather (want some cheese with that) … This is what happens during a recession, we miss the good old days where we had to work 60 hours a week. The human being is a weird beast; it has to lose something before appreciating it. So, if you are lucky enough to not be struck by the 2009 recession, please appreciate what you have and take care of it!

Improves creativity
As companies cut out the fat, the remaining employees have to do more with fewer resources. This is when creativity rises to its best: when there are no other solutions than finding a better way of doing things! This is how most companies will show increases in productivity and the profit margin as well in 2010 ;-0.

Good position for a promotion
As it is the case with creativity, if you stay with your company and you are not part of the “fat”, you have a pretty good opportunity to work hard and show you can manage the stress and pressure. There is a better than average chance you will be in the running for a promotion when things go better as most people around will react poorly during a recession. They will whine about people being laid off while they still have a job. They will complain that they have to work more or do things that was not in their “job description” (don’t you hate hearing that?!?). By being responsible and showing a positive attitude, you will surely make your way through the top despite the recession.


When you think about it, a recession is really like a badass winter. If you work hard and are patient enough, you will get great rewards once springtime arrives! Now, go get your coat on, it’s freezing this morning!

Source: The Financial Blogger

Bankruptcy 101 - From What It Is To What Happens At Court

CHAPTER 7 BANKRUPTCY
By Martin Hoffman*

FINAL THOUGHTS UP FRONT

The purpose of the Bankruptcy Law is to give an honest debtor a "fresh start" in life by relieving the debtor of most debts. Often, clients wait too long to consult an attorney and waste exempt assets such as pensions, or mortgage their property in a futile attempt to avoid Bankruptcy. Many attorneys offer free consultations; the reader is encouraged to obtain a comprehensive consultation concerning your rights and remedies.

HOW DID YOU GET INTO THIS POSITION

The most common causes of bankruptcy include medical expenses, loss of a job, accidents/disability, business failure, divorce, and the current foreclosure crisis.

Consumer and commercial bankruptcy filings are on pace to reach 1.5 million or more this year. You are not alone.

WHAT IS BANKRUPTCY

Bankruptcy is the judicial process that allows debtors to discharge (eliminate) or reorganize debt. In many cases, you can discharge all or most of your debt and still keep all or most of your assets.

Bankruptcy cases are handled by the United States Bankruptcy Courts, part of the Federal Court system.

This essay will concentrate on Chapter 7 or ‘liquidating bankruptcies’.
In a Chapter 7 Bankruptcy, the Debtors will discharge all debts permitted to be discharged and keep all exempt property (see below). In a Chapter 13 Bankruptcy, a debtor may reorganize his debt and pay all or a portion of the debt over a period of three to five years.

EXEMPT PROPERTY

Even though you are filing for Bankruptcy, the Law allows you to keep certain assets free from the claims of your creditors. The assets that you are allowed to keep are considered exempt property. The exemptions available to you are decided by Federal Law and/or by the law of your state of residence. Usually, you can keep your home, pension plans, several thousand dollars worth of personal property (such as cars, furniture, bank accounts, jewelry, etc.), many types of insurance benefits, alimony and child support. Often, the exemptions are sufficient to protect all of your property, and nothing will be lost in the bankruptcy proceeding.

DISCHARGEABLE DEBTS

Not all debts are dischargeable in bankruptcy. You will not be able to discharge most tax debts, child support or alimony, most student loans, or to prevent a secured creditor (e.g., home loan, car loan) from foreclosing/repossessing the property that secures the debt. You may, however, be able to reaffirm the debt, which means that you can agree to pay the secured debt despite the bankruptcy in order to keep the secured property.

BEFORE YOU FILE

Your lawyer will ask you to provide certain documents in order to process your case. These ordinarily include a copy of your latest tax return, copies of deeds, mortgages, titles to vehicles, and a copy of your driver’s license and social security card. At some point, before filing a petition, you will also have to produce up to one year of your bank statements and 60 days worth of pay stubs or other verification of your income.

The Bankruptcy law requires you to take credit counseling (education) before you can file for Bankruptcy. This is often done through the Internet, and takes approximately one hour. After filing for Bankruptcy, there is a second, shorter counseling session that is required. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program are permitted to provide counseling.

THE MEANS TEST: ARE YOU ELIGIBLE TO FILE

A ‘means test’ is required under the current law to determine your eligibility to file for bankruptcy under Chapter 7 of the Bankruptcy Code. The test is only applicable to consumer debt; if your debt is primarily business debt, you may not have to pass this test.

The means test is performed by comparing your average income for the past six months (CMI-current monthly income) to the median (average) income for households of the same size in the your State of residence. If your income is less than or equal to the state median income, you "pass" the means test and may file Chapter 7. If your income exceeds the median income, there are additional calculations and deductions that may allow eligibility.

FILING FOR BANKRUPTCY

The filing of a Petition begins the Bankruptcy case. The Petition is a document that sets out (1) what you own, (2) the amount and to whom you owe the debt, and (3) requests Bankruptcy protection and relief. Once the Petition is filed an automatic stay goes into effect- this means that no creditor can take further action against you. All collection efforts, including phone calls and lawsuits such as foreclosures and garnishments (levying on the debtor’s wages) are brought to an immediate halt. A husband and wife ordinarily file a Joint Petition.

THE BANKRUPTCY HEARING

Several weeks after your Bankruptcy petition is filed, you will attend a hearing in the Bankruptcy Court called a 341 hearing (or First Meeting of Creditors). A court appointed official called a ‘Trustee’ conducts the hearing. The hearing itself usually takes only a few moments unless the Trustee finds something unusual or incomplete in your Petition or accompanying documents.

If the value of your property is greater than your available exemptions, the property will be sold and the difference will be distributed to your creditors. You can also elect to pay the difference and keep the property.

The Trustee can try to have your case dismissed if there is evidence of fraud, perjury, or ineligibility.


BANKRUPTCY DISCHARGE

Unless there is litigation involving objections to the discharge, the debtor will usually automatically receive a discharge. The Clerk of the Bankruptcy Court will mail a copy of the order of discharge to all creditors, the U.S. trustee, the trustee in the case, and the trustee's attorney, if any. The debtor and the debtor's attorney also receive copies of the discharge order. Typically, this occurs about four months after the date the debtor files the petition with the clerk of the bankruptcy court.

This essay is intended to make you more informed about your rights and the Law of Bankruptcy and is not a substitute for competent legal advice. Please consult a licensed attorney in your jurisdiction regarding your specific case.


*Martin Hoffman is an attorney licensed to practice in Florida and New York. He is a senior partner at Hoffman, Larin and Agnetti PA, with offices in Miami, Fort Lauderdale, Islamorada and Key West. Mr. Hoffman can be reached at mhoffman@hlalaw.com or at 800-803-5555.

Medical Expenses A Common Cause Of Bankruptcy

September 25, 2009 in Healthcare


The following guest post was submitted by Kevin, web content writer for Resqdebt.com. For more helpful tips on how to save money and stay out of debt, visit Resqdebt’s website at www.resqdebt.com.

When Americans think of a person trapped in enormous amounts of debt, inevitably they think of irresponsibility. They think of fast cars and fancy stereo equipment. They think of people living the high life who could not afford it. In short, they think of a deadbeat. If statistics are any real measure, this impression could merit a change – and a touch of sympathy.

Far from financial irresponsibility, medical expenses are among the most frequent causes of families falling into debt and eventually filing for bankruptcy. The precise percentage of medical bankruptcies is in dispute. However, it is generally acknowledged to be a significant number.

Estimates for the number of “medical bankruptcies” have a wide range. A Northwestern University researcher has placed the figure at 17 percent of all bankruptcies. A group of Harvard researchers have recently increased their estimate to more than 50 percent. According to a Federal Reserve report, households with high medical debt are 28 times as likely to file for bankruptcy as other households. Most recently, an August report from the UCLA Center for Health Policy Research estimated that one in seven Californians carries some form of medical debt. With the nation gripped in a discussion about public financing of medical care, the number of medical bankruptcies has become a topic of note.

Medical bankruptcy can arise in several ways. The most common and obvious is the medical bill charged to the ill patient. When the patient personally suffers a chronic disease, deals with a condition that requires expensive treatment, or must pay for pricey medication, then it can be easy to run up thousands of dollars in costs. Insurance can help, but sometimes is not enough. However, there are other ways that medical expenses can drive a person or family into debt.

Many times the medical benefit is not for medical procedures performed on the person himself. They stem from helping to finance the medical care of a loved one. Sometimes this means caring for an elderly father or mother. Sometimes, tragically, this means caring for a sick child.

Also, some researchers describe “hidden costs” of medical bankruptcy. Often, these expenses consist of medical expenses placed on credit cards or paid on credit in some other way. This is an unwise thing to do. Once the expenses are placed onto the credit card, they become a target for interest and fees.

While medical expenses drive many people to bankruptcy, that is not the only option for handling overwhelming medical debt. Other options exist that can help a debtor take care of their debt before reaching that point. Among these methods are credit counseling, debt consolidation, and debt settlement. Each method can help debtors resolve debt and rebuild their financial health.

“Medical expenses are a common reason that people come to us,” said Heath Tudor, community liaison for Resqdebt, a debt settlement provider in Allen, Texas. “The unfortunate thing is that it randomly strikes good people. The fortunate thing is that it gives us the opportunity to help good people.”

Source: Frugal Dad

6 (scary) Fast Cash Loan Types and 3 (better) Alternatives

If you’re hoping to get a personal loan, be wary of where you look!



You’ve got limited options when you have bad credit and are in a financial bind. While a lot of people may not have much sympathy for consumers who have fallen into this trap, I can see just how easy it is to get in this position. What if you just don’t make enough money? What if you work a menial job and end up with a chronic illness? A lot of people are one accident or health problem away from going broke. And I’m talking about the responsible ones!

I can sympathize with this predicament because I live in a state that has a very high cost of living (trickle up effect, thanks to the uber-wealthy around here), but most of us are still regular workers of regular means, trying to get by. Teachers, for example, aren’t paid the mega bucks to easily afford a $2,400 monthly rent on a small home.

I can therefore understand (not condone) just how borrowing money often seems to be the only way when you’re confronted with unanticipated expenses. So I was hoping to offer this article as a way to warn consumers of certain loans that the New York State Office of Financial Empowerment considers “dangerous”. I’ve added a sixth based on my personal experience. With overpriced loans, you can wind up in deep debt.

Fast Cash Loans: The Costs Aren’t Worth It
1. Tax Refund Anticipation Loans
When you just can’t wait to get your tax refund back from the government, you might be tempted into a Refund Anticipation Loan (RAL). These high interest loans are offered by tax preparers based on your anticipated tax refund. Typically you wind up spending around 10 percent of your expected refund on interest and fees. The check only takes two weeks to arrive which equals 300 percent annual interest on an RAL. Patience is a virtue that will help you avoid costly RALs and make the most of your tax refund money.

2. Pawnshop Loans
Expensive electronics, musical instruments, guns or jewelry are often used as collateral to obtain pawnshop loans. The loan you’ll get from a pawnshop is usually less than half the pawned item’s resale value. When you pawn something, you get a few months to repay the loan; if you fail to pay up, the pawnshop is allowed to keep and sell the property. You’ll be paying dearly for the privilege of receiving that quick cash, as pawnshops will charge you interest, storage costs and insurance fees. Once again, many borrowers wind up paying about 300 percent interest on pawnshop loans. If you can’t come up with enough cash, you’ll spend significantly on storage fees or wind up losing a treasured item. I actually know a few people who own pawnshops, and they are some of the wealthiest people in their town — it’s clear why!

3. Rent To Own Loans
Specialized shops offer you the opportunity to rent electronics, furniture and appliances until you own them. If you miss a payment on rent-to-own goods, the store can repossess the items. Here’s what’s crazy about this: even if you’ve paid more than market value, you can lose what you paid out along with the merchandise! Research reveals the sad fact that around 75 percent of rent-to-own customers actually lose their cash and goods when they are unable to make the payments. Now if you’re actually in the minority and you get to keep the stuff, the news isn’t any better: even if you pay off the goods and own them, you are likely to pay double or even triple the market value for rent-to-own items. Either way, renting to own is a waste of money. So why do people do this? Because they are unable to delay gratification.

4. Cash Advances On Your Credit Cards
You have a credit card so you have access to cash, right? Well, you may think twice about gaining access to that cash when you consider what it will cost you. When you take a cash advance on your credit card, the interest rates charged are higher. Typically, a cash advance fee is also charged, which amounts to an additional percentage of your balance. The scary part? Interest paid for cash advances often exceeds 20 to 25 percent. That’s a lot to pay for a little cash!

5. Overdraft Protection Loans
Some banks may offer you overdraft protection for your checking account, which is nothing but a loan that lets you draw money from an account with a zero balance. The bad news is that average overdraft fees are anywhere from $25 to $40. If you’re set on wanting to make sure you don’t overdraw your account and you want to have a “safety net” in place, then another possible alternative is to have your checking account use your savings balance to cover overdrafts. While there is usually a fee for this as well, it’s usually much less than the cost of an overdraft.

6. Payday Loans
To get a payday loan, you apply for one with a lender, showing them proof that you can pay. After signing a loan agreement, you send the lender a postdated check which they hang on to while they hand off the cash to you. After the length of the loan’s term (which is very short, usually a couple of weeks), the lender will cash your check, which will include the amount you owe plus interest and fees. Now if you know you’re going to have trouble paying for this on time, you can “roll over” the loan and file for an extension, which will trigger an additional fee. The interest charged on payday loans is often 300 percent or more, making them a poor choice when you’re already short on cash.

Alternatives To Bad Loans and Quick Cash
All this sounds scary enough for you? There are better approaches to digging yourself out of a tough financial hole, including:

1. Find the lowest cost loans available. Try low interest credit cards, balance transfer credit cards or even a lending network like Lending Club (you can check here for more details about Lending Club, but you need to have good credit to qualify). If you absolutely need access to cash and must take out a loan, find the cheapest loans that you can qualify for.

2. Simultaneously, cut down on spending and go on a strict budget. Admittedly, this may not be an easy solution, but this is the most prudent way to free up or obtain some liquidity without it costing you an arm and a leg. While implementing belt tightening strategies, you could also concurrently pursue additional income opportunities. Finding other ways to make money is my favorite approach to solving this problem.

3. Still insist on getting a quick loan? Then pay it off fast! Now if you’re going to go for the easy cash anyway, make sure you know what it costs you, and try to pay it off as quickly as possible. But you’ve been warned!


Source: The Digerati Life

Considering Bankruptcy? These guys can help...

Clark & Washington, P.C., Georgia Bankruptcy Law Firm

Valuable information for anyone considering bankruptcy.
http://www.cw13.com/index.html

Chapter 13 Articles

Chapter 7 Articles

How to Make Living on One Income Work

There are many reasons couples may end up living on one income. Some want to be home to take care of their children while others may be dealing with layoff or medical issue. Whatever your situation, living on one income can be tight, but it certainly isn’t impossible. There are, however, some things that you need to think about and give some serious planning before you make the leap into single income territory.


Here are just a few:

• Stop eating out. While eating out is fun, it is also expensive if you do it on a regular basis. Cut back to once a month and you’ll save quite a bit by cooking at home instead.
• Work out a budget ahead of time. While everyone should have a budget, it can be even more important if finances are going to be tight. Sit down with your significant other and figure out what your expenses will be and where you can cut back.
• Have a cushion. If you can, go into a one income situation with a comfortable amount of savings to get you through should any unexpected situations arise. There will likely be a learning curve when it comes to living on one income and you’ll need a little padding to get you through those first few months and to prepare for all those incidental expenses that crop up.
• Buy new only when you need to. If you’re going to live on one income your days of buying everything new may be at an end. That doesn’t mean you can never have new things, but focus on getting them where it really matters rather than just purchasing everything new. Clothes, cars and furniture are available in abundance used, and are often of perfectly good quality.
• Research frugal solutions. There are loads of resources on the web that are designed to help you save money around the house. Spend a little time with your significant other searching through this information to find out if you can apply any of these solutions to your own home and save every penny you can.
• Determine what’s really important to you. If it really means a lot to you to stay at home with your kids—more than say, taking a vacation to Mexico—figure out a way to work your budget so that your priorities are highlighted and the things you can do without are deemphasized. You may have to forgo some pleasures but you’ll appreciate it in the long run.
• Do a trial run. If you know you’re going to be going down to only one income, start living on just that for a few months so that there is less of a shock when the time comes. You’ll be able to work out the kinks while you still have that other income as a backup.

Source: Financial Highway

Testimony of a One Car Couple

Up until a few months ago, if someone would have asked my wife or me to get rid of one of our cars, we would’ve just snickered and responded, “Impossible!” But then it happened… I wrecked my car.

A bit of background
From the time we met in 2003 up until seven months ago, my wife and I had always viewed two cars as a necessity. Then on Thursday, December 19th, 2008 I rear-ended a pickup truck at a busy intersection and wrecked my 2001 Jeep Cherokee.

At the time, my Jeep was worth about $5,000 and the initial quote to repair the damage was upwards of $9,000! In other words, it was totaled. I called a mechanic friend up and asked if he could come by and give it a once over to see if anyone he knew could do the body work for a reasonable amount of money. He obliged.

As it turns out, he did have a business associate who, despite being a wee bit unreliable, would be able to do the work for around $3,000 parts and labor. I jumped at the chance.

As the weeks rolled by and my Jeep was still “being fixed,” I grew increasingly impatient and my wife was far from happy. After all, she was the one responsible for carting me around until my Jeep was back in working condition.

The weeks turned into months, and now here we are in the middle of the summer and I still don’t have my Jeep back! We’ve certainly learned an important lesson about “getting a good deal,” but that’s a topic for another post.

Today I want to focus on how we successfully adapted to becoming a one car family. without killing each other, or hating the end result.

Changes we’ve made
My wife and I work in different towns, so she started dropping me off at a bus stop on her way to work. From there, I was able to catch a bus straight to my workplace. The stop was right off an expressway exit for her, so it took little more than five extra minutes each morning.

To save money, I purchased bus passes in 10 ride increments and wound up paying $1/ride. After work, I would catch a bus back to the dropoff/pickup spot and wait for my wife to arrive on her way home. We coordinated the pick up times via phone, and it worked out quite well.

Once summer came, and my wife began her three month vacation, things changed a little. Some days (fewer than I would like) I ride my bike about 10 miles to and from work. On days that I don’t ride, my wife gets up with me and drives me in.

I don’t want to spend too much more time talking about how we get around with just one car, so I’ll just say this: We do our best to coordinate our schedules, and we go out of our way to accommodate each other. A side benefit is that we get to spend more time together.

Read tips for making it work at The Five Cent Nickel

The Top 12 Most Frequently Used Pantry Items (and what to do with them)

Learning the kitchen ropes for the first time? Gathering all ingredients, following the recipe, and avoiding a grease fire is all you can handle. And you seem to find recipes that require obscure necessities like capers and kalamata olives. What you need, newbie cook, is to stock your pantry with the most common ingredients and work within those parameters.



1. Cooking Oils
If you plan on making anything stovetop, oil is essential. You'll want to use virgin olive oil as much as possible--since it's a healthier option--but many things don't taste right cooked in olive oil. Keep some vegetable and peanut oil on hand to broaden your cooking options.

2. White Flour and Sugar
From baking to soup thickening, you'll need to have a bag of flour handy. If you need to brown a chicken breast, dip the chicken in egg then in flour before cooking stovetop. Far too many recipes call for flour, so don't venture into a cookbook without it. Sugar is used in much more than just desserts--keep a pound sealed in the pantry for a dash of sweet.

3. Cream of Soups
The cooking soups I use most often are cream of mushroom, cream of celery, and cream of chicken. Add these to tuna casseroles, pot roasts, and anything that needs a creamy punch. Purchase the low sodium/low fat varieties to cut back on the calories.

4. Apples and Oranges
These seem to last forever. Go for the mixed fruit bag that includes red apples, green apples, and oranges and you'll have a great selection of fruit that won't turn mushy soon after purchasing.

5. Noodles
Keep a bag of egg noodles (for stroganoff or casseroles) and some basic wheat spirals. Paired with some cooked ground beef and Prego sauce, you'll whip up a cheap tasty meal for pennies. I sometimes cook more noodles than I need for a recipe and use leftovers to make cold pasta and mini-tuna casseroles later in the week.

6. Breadcrumbs
From toppings to meat filler, a simple box of breadcrumbs goes the distance. Steer clear of the Italian seasoned variety--put your own oregano, basil, garlic, and parsley in to save money.

7. Spices
The seasonings I need most often are sea salt, garlic powder (or minced garlic, but not garlic salt), onion powder, parsley, basil, rosemary, thyme, oregano, Lowry's seasoned salt, chili powder, and crushed red pepper. On the sweet shelf you can always find vanilla extract, almond extract, nutmeg, honey, and cinnamon. I also combine baking soda, baking powder, and cream of tartar in with the sweets since you'll add them to baked goods.

8. Oatmeal
If you can acquire a taste for oatmeal, your pocketbook will be in good shape. A bowl of oatmeal make with milk and brown sugar costs just around $.40. Make oatmeal chocolate chip cookies and add oatmeal as a filler for meat loaf when you're in a pinch.

9. Chicken and Beef Broth
Buy several cans of both--you'll use more than you think for flavor across the cooking spectrum. If you need to save money buy bullion and make your own with boiling water. It only takes an additional 5 minutes to heat the water and add your own flavoring.

10. Canned Meats and Vegetables
The best tasting ones are chunk light tuna in water, chicken, green beans, all other beans, corn, and tomatoes (mainly for cooking). A good rule of thumb is only buy canned if you can find it frozen. Most of the frozen veggies are healthier and tastier, but some can't be beat in the can.

11. Quick Mixes
I like to keep a couple of mixes--Bisquick Heart Healthy, Betty Crocker white cake, Fiber One muffins--for the just in case scenario. When company comes over last minute it's nice to have something ready that doesn't take a huge effort to assemble.

12. Cold Necessities
Always keep eggs, milk, butter (the real thing, no transfat), and a block of cheddar cheese to keep your cooking options open. Check expiration dates--sometimes the organic products have a much longer shelf life. You may pay a bit more for the product but it can perch in your fridge for more time.

Source: Go Frugal Blog - Ashley Grimaldo is obsessed with finding free stuff, whether she needs it or not. She loves playing with words, crunching ice, and is convinced she missed her calling as a professional ice skater. In between changing diapers and pureeing baby food, Ashley is launching an official campaign to make maternity pants an apparel industry standard.

5 Things the recession has taught me so far

Fed Chairman Ben Bernanke recently said that the recession is very likely over. I'm not sure I believe it all the way (do you guys?), but I'd be lying if it doesn't sound hot. It's been a wild & crazy past 18 months, and it's nice to hear that our world isn't going to hell in a hand basket for once.



I swear, if the media stopped portraying all this gloom and doom we'd be much better off. Everyone knows that humans are emotional - you say one wrong thing and CRASH! There goes the market. But I guess the opposite would also hold true. After all, here I am helping spread the 4-5 word phrase Bernanke just spoke of ;) At least it's a positive influence though.

Regardless, I've learned a lot over this whole ordeal and I'm sure I'll learn even more. I really like that about life - $hit can be flying all over the place, yet you can usually take away some new lesson or preventative measure to help you down the road. The bigger the problems, the bigger the learning curve too! (at least that's how I see it)

5 Things the recession has taught me so far:

It IS actually possible to spend less! All I have to do is NOT go into Target, TJ Maxx, Best Buy or the mall ;) That, and PAY ATTENTION TO MY FINANCES!

No job is ever safe. I've learned that you can't stay at one company forever, so always keeping your eyes open and active keeps me sane and away from an unexpected surprise one day.

Nature is one of the best gifts to us. And it's free! Since I'm not shopping as much, I'm now going on more and more walks. I totally forgot what fresh air felt like.

Networking is M-A-G-I-C. It really is a matter of who you know these days, so keeping in touch with old friends and colleagues is something that will def. pay off in the long run - esp. if they're in your same field. My favorite way to stay in touch is over beers and 1/2 priced appetizers at happy hours! Something a few of us bloggers did last night actually.

Everyone wants to master their finances! This might be one of my favorite things right now. You're hearing personal finance spout all over the place and all of a sudden learning about money is "cool!" You & I have ALWAYS known this of course, but at least the others are catching on ;)

So whether the recession is over or not, do me a favor and remind yourselves of all the positive stuff going on in your lives these days. We can't control the economy, but we sure can change the way we're living! Here's to a happy (and hopeful) recovery my friends.

Source: Budgets Are Sexy

Exclusive: Coupon Sherpa promises to make coupons reliable again

There's no shortage of coupon sites on the Internet, which makes standing out a difficult task ... and all that more impressive when a new competitor emerges.

WalletPop was able to score an exclusive interview with Luke Knowles, the founder of Coupon Sherpa and FreeShipping.org, to find out what he thinks will make Coupon Sherpa the number one source for coupons on the Internet.

WalletPop: Luke, thanks for your time. Can you tell me what makes Coupon Sherpa special?

Coupon Sherpa: We see some problems with online coupon websites and we wanted to create a coupon website so that it would help our iPhone app. So we thought, why don't we be the ultimate coupon website that's missing right now.

"The biggest problem with coupon websites is that a lot of times you go to coupon sites and the coupons just don't work. You know, they don't work or they're expired and the sites just leave them up there so there's not a whole lot of quality control.


"So with Coupon Sherpa we're really going after that word 'reliable.' We want to be 'the reliable coupon website,' that you can trust. We're aiming for a success rate of 99.9% with our coupon codes. I know human error does creep in but we're going to put the quality control measures in place to account for that.

At the same time, besides just being the reliable coupon website, we want to provide all different types of coupons. Most sites focus on online coupons, like coupons codes, because that's the only way they can make money. So we want to be online, printable, grocery and pretty soon we'll add local coupons. So we want to be the one resource you need for coupons.

WP: When you say local, do you mean my local coffee shop can get online and put a coupon up?

CS: Yes, so coupons for what's around you, those coupons that are available near you.

WP: It's great to hear that a coupon site is tackling the problem of reliability. Earlier this week WalletPop posted about the incredible number of shoppers who will continue a purchase even if their coupon is rejected. Something like 50% of consumers will actually continue and make an online purchase.

CS: "Right, yeah, you've probably experienced this a hundred times. Coupon sites will list all these coupons and they don't work. There's no quality control there. So we're working directly with the merchants to get coupons specifically for them. If they aren't directly from the merchant, we test them.

WP: You're working directly with merchants. Can I still submit a coupon I find?

CS: "You can share coupons with us. Now we're not just going to put it on, we'll put it on if we find that it works, but we're going to make sure it works before we put it up. Sometimes that will involve us doing a fake checkout or doing additional research on the Internet to try and find an expiration date.

WP: Tell me a little more about the social aspects of your site.

CS: "We're trying to do the social thing; you can tweet any coupon and you can vote coupons up or down 'Digg' style.

WP: What's your favorite coupon from Coupon Sherpa right now?

CS: "It'd have to be the $25 off of a $100 purchase at Sports Authority. I also saved something close to 40% off of my Banana Republic purchase at an outlet mall recently using the Coupon Sherpa iPhone App.

WP: Are there any other Coupon Sherpa features coming that you can tell us about?

CS: "We're going to be creating an 'Ask Coupon Sherpa' feature on our site where it ties the whole site into Twitter. People can ask questions to Coupon Sherpa related to saving money or coupons or deals. He'll answer them real time on Twitter as well as answer some in more detail on the 'Ask Coupon Sherpa' section of the website."

WP: Thanks for taking the time to tell us about Coupon Sherpa, we appreciate your efforts to make coupons easier and more reliable.

For being a relatively new coupon website, Coupon Sherpa boasts an impressive number of major retailer coupons, and the current selection backs up the quality of quantity approach that Knowles claims will set Coupon Sherpa apart from its competitors. Right now there are good coupons for Target, Kohls, Finishline and many others to use online and plenty more that you can print out and use in store.

It's up against some hefty competition, but Coupon Sherpa is off to a good start -- it already saved me 20% on a pair of dress shoes!

Source: Wallet Pop

How To Pay Rent By Volunteering For Science Experiments

This is a guest post from Hank.



I recently earned $40 the easy way. I was just sitting in my doctor's office minding my own business when a nurse from the office next door stopped by to ask for volunteers. It seems that they were doing a medical study on the adverse effects of vaccines. I was given the money for about thirty minutes of my time, a brief medical questionnaire, and five small vials of blood. Not bad for a half hours worth of "work".

This wasn't the first time that I had been exposed to earning money for the benefit of science. I grew up in a medium size southern town that had a fairly large teaching hospital. Not only were there lots of medical students running around the hospital's hallways, but there were also a lot of medical experiments being conducted too.

I remember hearing about one experiment that the medical college was conducting while I was a senior in high school. For $5,000, the research doctors at the school would cut off one of your big toes, sew it back on, and then measure how the loss of the toe affected your balance. All my friends and I thought that it would be so cool to have all of that money. It was a lot for a kid in high school, but none of us ever were ever gutsy enough to try for it.

Earning Money From Science:

So, of course, this recent medical study got me thinking. Can someone earn enough money from science to pay your rent? I think you can. Here are a few examples of how you can make money by giving back to help science.

Sell Plasma. Most people don't know about selling plasma. Blood plasma is prepared by spinning a tube of fresh blood in a centrifuge until the blood cells fall to the bottom of the test tube. It is just like giving blood. While you can make approximately $240 a month if you donate twice a week, it is nothing that you can get rich off of. There are also a few negative connotations associated with selling plasma, although I personally know of several respectable people from the "good side of the tracks" who sell plasma to supplement their income. Let's face it, teachers do not get paid enough (but, that's a subject for another time.)

Sell Eggs. Many women can make around $5,000 by selling their eggs to companies who resell them to women who cannot give birth. The only problem with this plan is that it takes a lot of time and patience, and there is a small surgical procedure that the woman has to go through in the end to retrieve the eggs. I knew of one lady who was trying to earn money this way, and it took months of paperwork and several doctors visits before they would even consider giving her a dime. This isn't the option to pursue if you need money in a hurry (or if you're a guy!), but it may be well worth your effort if you are patient.

Sell Sperm. Every year, approximately 75,000 American children are born thanks to a sperm donor. To qualify as a sperm donor, many sperm banks require that you be between the ages of 18 and 38, have a clean medical history, have high quality semen samples, and be able to pass a rigorous psychological and genetic screening. You must also be able to provide a medical history of you and your relatives going back several generations. The payoff can be handsome though at about $100 per visit and several visits needed each month.

Medical Experiments. Like I mentioned above, you can get paid up to $300 per day or more to participate in clinical or medical trials that test new or improved ways to treat an illness or condition. Or, you can participate in research studying a particular phenomenon or a new search for a disease's cure. In my case, I was paid to be in the control group of the study because I had never had a reaction to any vaccines. The possibilities of finding the study that is right for you should not be too hard since the possibilities are almost endless. You can get paid to participate in studies for things such as sleep deprivation, time isolation, alcohol, caffeine, nicotine studies, exercise, diet and nutrition studies, psychology studies, the list goes on & on.

Others. There are several other ways to make money in the medical arena that could be explored as well. You can consider becoming a surrogate mother which can pay tens of thousands of dollars. Or, you can sell your hair for few dollars per inch. There are many ways you can get paid for helping science. The hard part may just be finding them.

While these medical procedures listed above are not all inclusive, they can give you an idea of the possibilities that are out there. No one medical experiment, testing, or donating can solve all of your financial needs, but you can earn a decent supplemental income from some of these programs. Maybe you do not want to deliver pizzas in order to help you get out of debt faster. Maybe donating plasma is a better answer for you personally.

Source: Budgets Are Sexy

10 Bad Habits That Lead to Financial Disaster

By Richard K. Gustafson

I ran across a very good article that discusses "bad habits" that lead to debt problems. Below is a link to the full article at www.bankrate.com, but I thought I'd briefly share the highlights with you.

The ten bad habits are:

1) Misusing Balance Transfers - All of us have found offers for new credit cards that provide a "teaser" rate. "Transfer balances and pay no interest for a year" is a common sales pitch. While it can be a good idea to manage debt by taking advantage of these types of offers, you still have to be disciplined and concentrate on paying down the debt. The common mistake is that the person continues to use the card and creates new debt.

2) Not Checking Credit Reports - Some people believe that there is no value in checking credit reports because they don't think they can do anything to change what the reports say. This is not true. Insuring that your credit report is accurate and challenging inaccurate information can help improve your credit score. An improved credit score opens opportunities for credit at lower interest rates. Lower interest rates can save you a lot of money! For more information, visit www.creditrepair.com.

3) Failing to Alert Creditors About Financial Hardships - Some creditors have in-house programs you can qualify for if you alert your creditor to an anticipated problem. If you wait until you are behind on payments, you may not be eligible for some of the programs the creditor could have offered you if you were current on payments.

4) Failing to Budget - Budget your money and stick to your budget. Don't forget about those yearly or quarterly expenses. Make sure you take them into account.

5) Using Retail Store Accounts - I'm sure you have experienced shopping at a department store and being offered the store's credit card. They are tempting as you are offered 10% off your purchases, or sometimes even more! The downside is if you don't pay it off at the end of the month, retail credit cards have much higher interest rates than Visa, Mastercard, or American Express.

6) Procrastinating on Creating an Emergency Fund - Make sure you begin saving a little money each month into a savings account. You never know when a trip to the hospital could lead to a loss of income. You should be prepared for these events. Most experts tell you to have at least 3-6 months of your budgeted expenses saved in a savings account. This money can help get you through a medical situation or a job loss.

7) Paying Bills in No Particular Order - If you can pay all of your bills at the end of each month, obviously it doesn't matter what check you are writing first. But, if you are going to fall short one month, you need to prioritize which expenses are more important so you can pay the important ones. Rent/Mortgage, transportation, utilities, and other "basic living expenses" should always be the priority over credit cards, retail store cards, etc...

8) Charging Purchases Instead of Using Debit Card or Paying Cash - If you have the money in your pocket to pay cash, why charge on the credit card? I know, it's only $20 here or there, right? But what about when you do this three or four times a month. Suddenly, you have balances on your credit cards that could get out of control if you don't pay them each month.

9) Making Credit Payments Late - You might be tempted to simply "eat the late fee" on credit cards if you're struggling to make payments. Try to avoid this temptation as paying late could cause your interest rates to triple. In fact, missing payments to one credit card could could cause ALL of your interest rates to triple on ALL of your credit cards.

10) Making the Minimum Payment Only - Paying minimum balances is better than not paying, but if all you are doing is paying the minimum you won't make much progress paying your debt. Try to pay at least a little bit extra each month. Obviously the best option is to pay off the entire balance each month. Try working a part-time job or overtime and using the extra earnings to pay down debt.

Here's the link to the full article: www.bankrate.com/brm/news/debt/debtmanageguide/mess4.asp?caret=8 If the debt gets overwhelming, you may want to seek out bankruptcy information. By Richard K. Gustafson

I ran across a very good article that discusses "bad habits" that lead to debt problems. Below is a link to the full article at www.bankrate.com, but I thought I'd briefly share the highlights with you.

The ten bad habits are:

1) Misusing Balance Transfers - All of us have found offers for new credit cards that provide a "teaser" rate. "Transfer balances and pay no interest for a year" is a common sales pitch. While it can be a good idea to manage debt by taking advantage of these types of offers, you still have to be disciplined and concentrate on paying down the debt. The common mistake is that the person continues to use the card and creates new debt.

2) Not Checking Credit Reports - Some people believe that there is no value in checking credit reports because they don't think they can do anything to change what the reports say. This is not true. Insuring that your credit report is accurate and challenging inaccurate information can help improve your credit score. An improved credit score opens opportunities for credit at lower interest rates. Lower interest rates can save you a lot of money! For more information, visit www.creditrepair.com.

3) Failing to Alert Creditors About Financial Hardships - Some creditors have in-house programs you can qualify for if you alert your creditor to an anticipated problem. If you wait until you are behind on payments, you may not be eligible for some of the programs the creditor could have offered you if you were current on payments.

4) Failing to Budget - Budget your money and stick to your budget. Don't forget about those yearly or quarterly expenses. Make sure you take them into account.

5) Using Retail Store Accounts - I'm sure you have experienced shopping at a department store and being offered the store's credit card. They are tempting as you are offered 10% off your purchases, or sometimes even more! The downside is if you don't pay it off at the end of the month, retail credit cards have much higher interest rates than Visa, Mastercard, or American Express.

6) Procrastinating on Creating an Emergency Fund - Make sure you begin saving a little money each month into a savings account. You never know when a trip to the hospital could lead to a loss of income. You should be prepared for these events. Most experts tell you to have at least 3-6 months of your budgeted expenses saved in a savings account. This money can help get you through a medical situation or a job loss.

7) Paying Bills in No Particular Order - If you can pay all of your bills at the end of each month, obviously it doesn't matter what check you are writing first. But, if you are going to fall short one month, you need to prioritize which expenses are more important so you can pay the important ones. Rent/Mortgage, transportation, utilities, and other "basic living expenses" should always be the priority over credit cards, retail store cards, etc...

8) Charging Purchases Instead of Using Debit Card or Paying Cash - If you have the money in your pocket to pay cash, why charge on the credit card? I know, it's only $20 here or there, right? But what about when you do this three or four times a month. Suddenly, you have balances on your credit cards that could get out of control if you don't pay them each month.

9) Making Credit Payments Late - You might be tempted to simply "eat the late fee" on credit cards if you're struggling to make payments. Try to avoid this temptation as paying late could cause your interest rates to triple. In fact, missing payments to one credit card could could cause ALL of your interest rates to triple on ALL of your credit cards.

10) Making the Minimum Payment Only - Paying minimum balances is better than not paying, but if all you are doing is paying the minimum you won't make much progress paying your debt. Try to pay at least a little bit extra each month. Obviously the best option is to pay off the entire balance each month. Try working a part-time job or overtime and using the extra earnings to pay down debt.

Source: By Richard K. Gustafson on Legal Helpers Blog

Here's the link to the full article: www.bankrate.com/brm/news/debt/debtmanageguide/mess4.asp?caret=8 If the debt gets overwhelming, you may want to seek out bankruptcy information.