Can you define “bankruptcy” in a legal sense? Did you know that “bankruptcy” does not mean you do not have any money? Now, if you picture the word “bankruptcy,” you would not be picturing anything happy, uplifting, or positive. You’d be picturing someone sad, hopeless, and doesn’t have any money to their name. We are living in times of great uncertainty and anxiety. Some people have been impacted more than others, but everyone has felt the effects of the world we find ourselves in. One of the most damaging and common effects of these challenging times is our finances. Businesses that used to be steady in their profit are now struggling to make ends meet. People are taking salary cuts, being furloughed, or even losing their jobs. Unexpected medical bills, from either COVID-19 or something else, have created heartache, stress, and hardship for hundreds of thousands of people.   No matter who you are, you have felt the negative financial effects, and you are probably feeling lost or worse - hopeless. When people start to struggle financially, filing for “bankruptcy” doesn’t usually seem like an option. They’ll strive to work hard to avoid it, but they are missing out on a potential opportunity to improve their situation. “Bankruptcy” doesn’t mean you are admitting you are a failure, and it doesn’t make you a bad person. We want to share why filing for bankruptcy may be a good idea.   How is bankruptcy defined? Before we get into when you may want to consider filing for bankruptcy, let’s define it. Bankruptcy is a court order that discharges some (but not all) of your debts if the court finds you have no means to pay back the debt you are currently in.   Is there only one way to file for bankruptcy?             There are two main ways to file for bankruptcy – Chapter 7 bankruptcy or chapter 13 bankruptcy. Filing for Chapter 7 bankruptcy, most of your assets (things you own that have value to the economy, like a house or car) are liquidated (sold to generate money to pay off your debt). People can file for Chapter 7 due to reasons like divorce, unexpected and expensive medical bills, and unemployment (making this more relevant in today’s times). Chapter 7 bankruptcy is considered a fresh start because it can quickly resolve almost all your debt. However, it is important to remember that assets like your car or house will be sold to pay off your debt. If you have personal assets that you cannot part with for whatever reason, then Chapter 7 may not be an option. Chapter 13 bankruptcy is different from Chapter 7 because it allows you to keep all your property and repay lenders with less than the amount owed. The catch with Chapter 13 bankruptcy is that you must meet certain qualifications.   How can bankruptcy help me?   If you’ve been affected by economic hardships, you [...]

The opportunities to get an education at a higher level are the most they have ever been in recorded history. Between scholarships, more people willing to leave their home cities/states, and the increased investment in return for a great education – college is available to more people than ever. Unfortunately, not everyone can get free college tuition. Unless you’re a student-athlete or on a full scholarship, you will be paying a lot of money to attend college. Even people with scholarships still must pay for things during college. This is where student loans come in. The increased availability of college for everyone means the increased need to pay for that college experience. The most realistic way to be able to afford college is through using student loans. Student loans are a great option for people to be able to attend college even if they don’t have the money to pay for all of it, but they aren’t always great. Over 40 million Americans have student loans, and the numbers of loans increase every day. Student loans can be challenging because you may simply forget to pay for them, you may not think they are a big deal, or you/your job may have been affected by the COVID-19 pandemic and you are suddenly in a rough spot financially. Student loans can increase your debt quickly if they are not properly managed and paid on time, but sometimes life happens, and you can’t pay as you would like. Fortunately, there are options available for you. We want to share five ways to manage your student loan debt.   Know What You Are Working With             Before you create a plan on managing your student loans, first you need to know what type of loans you have. Your loans may be federal or private which have different rules and timelines Your loans may have different timeframes for expected payment (you may have much longer on one than the other, which can help you prioritize your payments) Your loans may have different interest rates which will affect which loans will cost you the most money in the long run Knowing every detail about your loans will direct you on how to address them.   Know Your Grace Periods (and ignore them, in a way)             Each loan will have different “grace periods” which is the time after you graduate where you will not be expected to pay anything on your loans. Some grace periods may be 30 days, and some may be 9 months. Once you know your grace periods, you have two options, either… Don’t pay anything during the grace period but start saving up/creating a strategy to begin paying when the period is over If you can, start paying your loans now (even if you have a grace period). This creates a habit of setting money aside where, by the time the grace period ends, you will [...]

Even though we’re in the middle of a pandemic, we still need to be able to go places (safely). Now that we are stuck at home, we miss being able to just get in the car and drive places. Since we have not been using our car as much as normal, we start to notice little things here and there that we never noticed before. Maybe we never took care of our car the way we should Maybe the knocks and sounds that we’ve been used to now are more concerning Maybe the car is close to breaking down Either way, you start thinking about getting a new car. Maybe you have been able to save up some money since you’re not driving as much. Maybe you have been waiting for just the right time to get a new car, and now seems as good as any. Now that you know you want a new car, you also want to be safe about buying a car. You can’t just go to the dealership and spend all day test-driving cars and talking to different salespeople. You need to be able to look for a car from the comfort of your own home. Here are 5 great tips for buying a car online.   Figure Out Your Budget             Before you start looking at cars, you need to understand how much you are willing to spend on a car. There are different car loan calculators online that you can use to determine how much you can afford based on your finances (income, debt, etc.). Even those these calculators can show you how much you would be spending on the car loan itself, you need to be aware of other factors. Car insurance and gas should also be considered when planning your budget for a car.   Get Pre-Approved for a Loan               Once you have decided your budget, the next step is to check your expectations against the reality. In this case, it means going to a bank and getting pre-approved for a loan. Banks will review your finances and determine how much they are willing to loan you. Even if the amount they offer is lower than you though, you now know the exact numbers you are working with so you can make the best financial decision.   Research           Long gone are the days where people would walk into car dealerships clueless and just hope the salesperson didn’t try and overcharge them.  Now, you have many resources online that ensure you go into a car search with helpful knowledge. You can find out a car’s MSRP (Manufacturer’s Suggested Retail Price), along with your current car’s trade-in values and reviews. You may have a certain car in mind, but upon research, find out there are many negative reviews. Researching your current and potential future car’s information will give you the confidence [...]

A credit report is one of the most important reports regarding your past, present, and future. It shows lenders (companies who are considering granting you a loan, like a bank or a credit card company) that you are responsible and can reliably pay back any debts; critical to making any major purchases (like a house or car). Unfortunately, if your credit report has a low score, it shows companies that you are unreliable and cannot manage money well. Companies don’t have time to look at every person’s file and go into their entire credit history to understand how they got to where they are finanically – they just need to see the number, decide, and move on. Credit reports are an important resource that companies review regularly when making big decisions, but that doesn’t mean they are perfect. Credit reports, like any other piece of information, can be wrong from time to time. In this case, these errors can negatively affect your life and prevent your chances of achieving your goals. Since credit reports can impact your life in major ways, you should always review your credit report to identify and fix any mistakes. Here is how you can find and fix any errors on your credit report.   Request Your Report             The Fair Credit Reporting Act was created to ensure that all information on credit reports is accurate and private. The report is a clause that allows people to request a free copy of their credit report once a calendar year (every 12 months). This report will come from one of the three major credit companies – TransUnion, Experian, or Equifax. There are two easy ways to request this report, either… Visit AnnualCreditReport.com Call 1.877.322.8228   Verify All Information             Credit reports are not a quick document to scan through – you must take your time and review every line to ensure it is correct. Here are some common mistakes and why they should be checked…   Personal information (name, address, any known aliases) Verify all your personal information is updated and accurate. If you see an “alias” on there that is not you, then you may have been the victim of identity theft, and someone may have been hurting your credit through bad transactions. If your name is misspelled, it is likely not a big deal, but such a minor error may mean there are other errors in your report. Current and Past Credit Accounts First, verify that all closed credit accounts are shown to be closed on the account as well. Look for any mistakes such as late payments (if you’ve never made any late payments). Look for any accounts that you don’t recognize, because they may have been opened by somebody else under your name. If you are divorced, make sure your former spouse’s debts are not on your report. You also must verify accounts are not listed more than [...]

No one wants to think about death. It’s a difficult subject to discuss, and most people will want to avoid the subject altogether. However, death is a natural part of life. It is not often that people know when they are going to die, and because it is a mystery, it is something we don’t plan for. Unfortunately, it is something we must plan for. While we may not know when it is going to happen, it is important to have plans in place in case the worst should happen. This is where life insurance comes in. Life Insurance is an agreement between a person and an insurance company where, if the insured person dies, the money will be paid to a beneficiary (someone who would receive the money, like a spouse or family member). Life Insurance is not a policy most people think to have, but they should. With so many options available for life insurance, you can find a policy that works for you, regardless of your situation. If you are still unsure about life insurance, or even if you’ve never thought about it - here are 7 reasons you should buy life insurance.   It’s One Less Thing for Your Loved Ones to Worry About             In the unfortunate case that you die, you will be leaving behind loved ones. They will be dealing with a lot, and the last thing they should be worried about is money. Life Insurance guarantees that your loved ones will receive money in the event of your death. This is especially important if you had a job and that income was supporting your family. Now, even without that income, life insurance will help them financially.   It Can Pay Off Debt             Unfortunately, debt doesn’t go away in death. If you leave behind any debt, life insurance can significantly reduce or even pay off the debt so your loved ones will not have to worry about it. Between funeral expenses and planning for the future, you don’t want your loved ones to have to be dealing with the added level of stress that comes with paying off debt.   It Creates Cash Value for You               There are two types of life insurance – term life insurance and whole life insurance. Term life insurance is only active for a specific timeframe (months, year, etc.). Whole life insurance stays in place until you cancel the policy. Whole life insurance also builds up cash value, and you can withdraw from this cash if needed. This way, you can have an emergency fund of cash you can pull from in emergencies (that do not involve your death).   It Can Come at a Discount             Odds are the insurance company you already work with for car or home insurance also offers life insurance. Combining your insurance options (like [...]

Have you ever felt like, no matter what you do, you can’t seem to get ahead of everything? It feels like, no matter what you do, you are always struggling to keep up. This has never been truer than these pandemic times that we are currently living in. With people either losing jobs, being furloughed, or having their salaries reduced, everyone has been affected financially in some way. And yet, we still need to buy things to survive. Whether you have been using credit cards to buy things here and there, or you experienced a major unexpected bill (medical, home repair, etc.), most people are dealing with some sort of credit card debt now. What if there was a way to eliminate that credit card debt, so you could keep the money you earned instead of just using it to make a dent in your debt? Whatever your situation is, we want to share 6 ways to easily eliminate your credit card debt.   Cut and Budget             Before you do anything, you must commit to not increasing your credit card debt by much (if at all).  Find out how much you owe on each card, and plan to stop paying with a credit card. You won’t be able to ever catch up on debt if you keep adding to it (or pay a little but charge a lot). Once you’ve decided to stop using your cards, the next thing is to budget. Figure out the essential spending – food and bills. Everything else can and should wait until you are in a better place financially.   Transfer Balances to a 0% Credit Card             Credit card interest, where a “penalty” fee is added to the total amount you owe (based on how much it is) is one of the quickest ways your debt can increase. There are 0% interest credit cards available to anyone with a good credit score (around 700 or higher). You can transfer your balance to a 0% card and not have any interest added to it if the balance is paid in full by the end of the introductory period (around a year). If you have good credit and a good plan to pay off your debt, transferring the debt to this one card is a great way to get rid of your debt without it increasing. This is also known as “debt consolidation”, where, instead of paying off multiple credit cards with different balances, you are making one payment for one debt. If you have a good plan in place (and use the other ways mentioned in this article), debt consolidation is an effective way to eliminate your debt.   Pay Your Minimum Payment Twice             When dealing with credit cards, people usually pay the minimum amount and hope for the best. Like we previously mentioned, just paying the minimum is not going to [...]

Now that you’re home more often due to our crazy times – have you noticed how much repair your home needs? Whether it’s minor chips in the wall, old and damaged flooring, or outdated fixtures that are long past their prime – spending more time at home means finding more things wrong with your home. When you are spending almost all of your time in the same place, you get inspired to fix everything. You may think that, since you’re spending more time at home, you might as well make your house look as nice as possible. You deserve a home you are proud of, and sometimes that may mean changing it up. In this scenario, we’re not talking about caulking some of the baseboards or just painting over some scuff marks – we are talking about renovating a home – a project that will cost a significant amount, take some time, and involve lots of little tasks. As we mentioned earlier, you deserve to have a home you are proud of, but that doesn’t mean you should go broke doing it. Renovating a house costs money, but it doesn’t have to cost as much money if you do it right.   Here are 6 ways to save money while renovating a home. Create a Budget             As with any large project, you have to start by knowing what you are working with in terms of money. You may want to get your entire home and re-build from the ashes, but what you can afford may not line up with that. Make a list of everything you want to do in your home, and then create a budget with how much you are willing to spend on the entire project or break it up by category (“We are willing to spend up to $X for the kitchen”). Starting with a specific amount of money helps guide every decision in your renovation to ensure your home looks good and your bank account doesn’t look empty. In addition to money, the next thing you need to properly plan a budget is priority. You may not be able to afford to do everything at once, and that’s ok. Prioritize the major/main things you want to do first, and focus your budget and energy on those. After you’ve completed those tasks, you can reevaluate the time, money, and need for other possible renovations.   Do It Yourself (Or Get It Ready)             Some things are best left to the professionals, like plumbing. There are other projects, like installing a backsplash or re-carpeting a room, that you can do yourself. There are many resources you can use to learn how to do certain home projects… Books at your local library or hardware store Weekend workshops focused on specific projects at stores like Lowes or Home Depot YouTube There are contractors and professionals with their channels on YouTube who share tips [...]

Life never slows down. Whether you’re enjoying a new opportunity or living in the middle of a pandemic, there is always something going on. One thing you may be experiencing is moving. Maybe you are moving due to financial reasons, or you are just trying to live differently. Either way, moving can be a stressful experience, both physically and financially. Just the thought of moving makes you think of hundreds of different decisions that need to be made – do you do it yourself or hire someone, if you do it yourself - do you have to buy moving equipment, and so on. It’s easy to get overwhelmed before you even pack your first box. Fortunately, we are going to share some tips to help make your move as smooth as it can be financially. Here are 6 ways to reduce stress and save money when you move.   Sell Your Stuff             It doesn’t matter how long you’ve lived in your current house – when you move, you always figure out how much stuff you lived with (and wonder how you had any space, to begin with). Before you begin to move, the first way you can save money is by making some money. There are tons of apps out there like Facebook Marketplace, Letgo, and Decluttr where you can sell your stuff and make a quick buck. You’ll be able to make some money, have less stuff to move, and feel good that your unwanted stuff is benefitting someone else.   Change Your Address Before You Move             On USPS.com, once you sign up for a new address and mail-forwarding, you’ll receive lots of coupons in the mail. They could be anywhere from discounts on moving services to stores you may need to buy new stuff from. You’ll most likely use the services you get coupons for anyway, so why not save some money in the process?   Don’t Buy Boxes             Boxes are critical to an easy move, but they can be pricey to purchase. Instead of buying boxes – check around your local area for any unwanted boxes. Maybe you can ask your neighborhood or social media for any unwanted moving boxes (there is always someone around who just got done moving and has a lot of boxes they don’t need). Ask your local stores (liquor, department, or grocery stores are safe bets) if they have any to use or use an app like Freecycle to locate unwanted boxes for free. As we mentioned before – you will be shocked at how much stuff you’ll need to move, so using free boxes is a great way to save money.   Try the Move Yourself (or Make the Process Easier)             Moving services can save you time and energy, but they aren’t cheap. If you’re able, move everything yourself (with some help [...]

Your wedding day will be one of – if not, the – most important and memorable days of your life. Perhaps you’ve been dreaming about it since you were small, or now that you’ve found “The One,” it’s all you have been thinking about. Either way, or something else, now that you’ve decided to get hitched, it is time to plan for the big day. If money were no object, your every wedding wish would be doable. You’d have all details done to perfection…no matter the price tag. It would be television-worthy, and your guests would be wowed. Can you still have such a special affair if you’re on a budget? Of course, it is possible, especially when you spend strategically without feeling like you’ve skimped. I love a good deal as much as a lavish wedding. That’s why these four ideas are the perfect combination for any couple who’d rather save their dough for down the road rather than go broke on the “I dos.”   On-Point Attire             Brides and grooms tend to go overboard on wedding attire. But there is no need for designer dresses and Oscars-style tuxes. There are plenty of options out there that are far less expensive and still look like a million bucks. Seek out samples rather than a brand new item. The discounts are dramatic, and you’ll get the look you’ve been after. Consider wearing family heirlooms (i.e., perhaps your mother’s wedding gown) which not only save money but have an emotional component too. Shop off-season and seek out sales, and think of stores that aren’t necessarily tailored for weddings exclusively. You can find wedding-appropriate attire online, at the mall, or even on Etsy. * You can also rent your wedding dress, tux, and even bridesmaid/groomsmen attire. You’ll be able to choose something outside your budget because the rental fee will be far less than purchasing a new piece to own. See more money-saving rental ideas below. With a little searching, you’ll find something classy that you’ll feel comfortable in. You don’t have to break the bank to be beautiful.   DIY Décor             Couples spend a fortune on invitations, flowers, centerpieces, place cards, take-home gifts, and so on. Things add up in a snap, and before long, you’ve blown your budget…and then some. The crafty types can do projects to prep for the wedding, with their own artistry and personal touches. Get supplies at the store and make it a hands-on experience. It’s a nice way to see how well you work alongside your soon-to-be spouse too. If you’re not particularly talented in this area, check out instructional YouTube videos or find some friends and family members willing to help out. You can work this angle for food too, making your wedding a homemade feast. Prepare large portions at home to heat up at the venue. Make it buffet-style so everyone can sample each DIY dish. [...]

Did you know the age for retirement is 67 years old? Can you imagine working until you’re 67 years old? Of course, you may have a job you love and want to work at until you physically (or mentally) are not able to. Maybe you just love staying busy, so you see yourself working at a job, any job, for as long as you can. Maybe you just don’t plan that far ahead, so you’re not worried about it. What if you could start habits now that would give you a chance to retire earlier than when you are 67 years old? We’re not talking retire at 64 or 63 – we are talking about retiring when you’re in your 50s, and maybe earlier. The thought of being able to retire early, where you are living comfortably without having to work, is exciting. More important, it is possible, if you start doing these things now.   Think About Your Future Self             People are notoriously bad at planning for retirement. It is difficult to imagine yourself so far into the future because there is so much going on in the present. Before you start doing anything, you must understand that who you are 20 years from now is just the present you x 7,300 days. How many times have you said, “I wish I would have done this earlier?” You need to set your future self up for success, and that means making every decision with that in mind. You don’t need to go too extreme and struggle now just for the sake of it, but you must evaluate how the money you have now is going to help you in the future.   Set Your Goals Now and Work Backwards             After you’ve changed your thinking to keep the “future you” in mind, the next thing is to create a goal for when you want to retire. Once you decide whatever that age is, you can work backward and determine how much you need to be saving to reach that goal.   Start Today with Saving Automatically             Start saving money immediately. Don’t save too much (you still need money to live today) but automate a percentage of your paycheck to go into a savings account. It could be 10%, it could be 20% - whatever you can live without for right now and still live comfortably. Once you automate the process (where it goes into your savings without you having to manually do it), you’ll get used to not relying on that money, and it will teach you to manage the money you have and let the savings build up. This could be done whether you are in a job that has a 401(k) or not.   Contribute the Max to Your 401(k)             If you’re in a job that has a 401(k), [...]

In 2019, CNBC reported that 137 million Americans were struggling with medical debt. Whether it is due to an unexpected injury, a recurring illness, or simply dealing with healthcare costs as we live longer and experience more problems, medical debt is a common struggle we face as a society. And these numbers don’t include any COVID-19 statistics. With so many people struggling to pay medical bills they either can barely afford or not afford at all, the need for relief and options to handle this challenge can be felt everywhere. We want to share 5 tools to help you deal with medical debt you face so you can work towards a healthy future, both physically and financially.   Make Sure the Charges Are Accurate             Medical practice and billing are important parts of care, but each is managed by humans, and humans can make mistakes. Incorrect medical coding can lead people to be stuck with charges that were either entered by mistake or stuck with charges for services they did not receive at all. Whenever you or a loved one receives medical treatment, you need to ensure you are being billed properly for the services provided. After the care has ended (surgery, hospital stay, etc.) – request an itemized bill detailing a breakdown of every charge with the reason and exact fee. Since so many people are in and out of care every day, medical billing errors can happen. Review every medical bill you receive to make sure it is accurate and contact the medical billing department for that provider (hospital, doctor’s office, etc.) and dispute any incorrect charges. Disputing any incorrect charges can alter your bill either by a small or large amount, but anything will be helpful. If you don’t find any errors, at least you know you what amount you owe and can now focus on paying it off.   Ask for Discounts             Medical billing is notorious for being delayed/backed up due to so many bills being processed at one time, and the medical facilities want to get their bills completed quickly. Ask the provider (don’t say “if” – assume you can get a discount regardless) what kind of discount you can get if you pay everything off within a certain amount of time (like 30 or 45 days). Some providers will offer discounts if you agree to get it paid off quickly (sometimes 10% or more). It never hurts to ask. If you don’t feel comfortable negotiating with the provider, there are professionals you can hire to review your medical bills and negotiate with the provider on your behalf. Keep in mind, this is a service that costs money as well.   Create a Payment Plan             Seeing the amount, you owe as one large number can be overwhelming and stressful. Just like a large project at work or home – don’t think about the [...]

Financial spring cleaning is an important part of being fiscally fit, but don’t limit yourself to clearing the financial clutter during a specific season: Financial spring cleaning should always be in season, keeping you focused on your short-term and long-term money goals.   Less Paperwork, Less Stress Letting paperwork pile up can lead to clutter and stress. Consider cleaning out the clutter. When possible, move to paperless financial statements and store digital versions of your statements in an encrypted folder, which makes them easy to search in the future. Set up a filing system that allows you to store your papers as they come in. That way, you won’t have to sort through them all later. Create a folder for tax receipts and other important documents. Irreplaceable documents should be placed in a fireproof document safe. Once you have a system in place, it’s also less stressful to manage your documents and your finances. You’ll spend less time with paperwork, and feel better for it.   Stay on Top of Things Periodically review your statements and documents to keep track of your financial picture. Review your latest policy papers and note changes in coverage, and make sure beneficiary information is up to date. Stay connected to your situation. If you need to change beneficiaries, or if you need additional coverage, you can take care of matters before it’s too late.   Protect Against Offline and Online Theft Regularly review your account statements to protect against offline and online theft. Because you are more organized, it’s a simple matter to compare your records with your account statements. If you notice something out of place — a fraudulent charge or an account that isn’t yours — you can report it early and limit the damage. At least once a quarter, review your important papers and take stock of your valuable items. Checking these items can help you make sure nothing has been stolen. If you work with a money manager, periodic reviews help you ensure you aren’t being taken advantage of. You can also double-check your insurance policies to ensure adequate coverage. If you’ve made some valuable purchases for your home, or if you have upgraded your car, you want to make sure that those increases in value are covered under your insurance policies, just in case those items are stolen.   Identify Holes in Your Insurance Coverage In addition to your homeowners and car insurance, periodically review your other insurance policies to ensure you are adequately covered. Insurance is meant to protect your assets. Holes in your coverage can be costly when the unexpected happens. From health insurance to disability protection to liability coverage, make sure you are prepared for any potential costs. You also can protect your family’s financial future by reviewing your life insurance coverage. When you receive a raise, consider increasing your life insurance to cover the increase in your salary.   Monitor Your Credit Because your credit is basically your financial reputation, [...]