Guest Post by Laura Backes
Perusing the financial self-help isle at your local book store can be overwhelming. Not only because of the amount of books but the amount of debt that got you to that dreaded self-help isle. Debt is not a foreign concept, lots of Americans struggle with credit card debt but not to worry there are books that can help you, here are a few:
The Money Book for the Young, Fabulous & Broke by Suze Orman
Suze Orman is every college student’s nightmare; consider her as no nonsense financial professor teaching you lessons about post grad life. This book is to help the young professionals with a small salary and student debt. Don’t let the title fool you, this book can help those who are older as well.
Your Money or Your Life: Vicki Robin and Joe Dominguez
This self help guide not only teaches you how to get out of debt and face the real issues but it puts your life back in to your hands. In 9 steps, this book shows you how to take control and learn to live life with your money and not the other way around.
The Total Money Makeover: A Proven Plan for Financial Fitness by Dave Ramsey
The not so sensitive financial guru Dave Ramsey, helps you find the source of your debt problem, you. This book teaches you what to do and what no to do. Listen to him and you are bound to get out of debt and it may not be the easy road but remember slow and steady wins the race.
How to Get Out of Debt, Stay Out of Debt, and Live Prosperously by Jerrold Mundis
A breath of fresh air is what this book brings to the table. Based on the successful practices of national Debtors Anonymous program you are able to relate to the millions of other Americans suffering from the paycheck to paycheck living and the relentless debt collectors. An easy and simple read, a must buy immediately.
The Ten Commandments of Money by Liz Weston
This book is realizing that today’s economy isn’t the easiest, the costs are going up and you aren’t making enough. The ten financial commandments that Liz Weston goes over will help you set a budget and stick to it, look at your options for the future and how you can control your own debt crisis.
So become a book worm and start reading. You will learn a few things that will help and guide you to financial happiness. All of these books can be found at your local bookstore or online. Happy reading and happy saving!
Author Bio:
Laura Backes enjoys writing about all kinds of subjects and also topics related to internet service in my area. You can reach her at: laurabackes8 @ gmail.com.
Showing posts with label debt relief. Show all posts
Showing posts with label debt relief. Show all posts
Tuesday
Monday
Paying Medical Bills with Credit Cards, is it a Smart Choice?
Guest Post by Eliza Morgan
Those who really fear credit card debt are usually cautious when it comes to making future purchases. For example, if a couple knows they want a new TV for the living room, they'll usually save for a few months and then pay for a new TV with cash. But not everything can be so calculated, especially when it comes to your health.
Sometimes you get sick out of nowhere, and even if you're insured, getting billed for medical expenses is one of the easiest ways for someone to get into debt (or deeper debt). Think about it: one single trip to the emergency room can set you back $200 for someone with insurance. If this was an unexpected expense and you don’t have enough money in your account, what will you do? Charge it on your credit card. Depending on how quickly you can pay it back will determine how much interest you will accumulate. In fact, according to the most recent statistics, nearly 21 million Americans accrued credit card debt in 2008 due to using their cards to pay for medical bills. While health is important and unpredictable, there are some things you should consider first before using your credit card to seek temporary relief.
1. Negotiate with your Doctor/Hospital. First things first, it's always important that you speak up front that you may not be able to afford whatever procedure or test that the physician says you need. If it's an emergency situation the physician will go ahead and do the procedure, but they will be more willing to give you a discounted rate or work out some sort of payment plan (some charge interest; others do not). Either case, you are not obligated to pay any sort of out-of-pocket expenses up front so don’t be too tempted to put it on your credit card immediately. But if you discuss your financial situation from the beginning, the physician may be able to reduce your bill in some area, whether it's with the anesthesiologist if you've had surgery or with your medications.
2. Know who is more likely to Report to Credit Bureaus. If you put your medical bills on your credit card and then can't find a way to pay off your credit card bill, you will undoubtedly be contacted by a bill collector. From there, the appropriate crediting bureaus will be notified as well and your discrepancy will negatively be placed on your credit report and affect your credit score. While you do in fact want to pay off your medical bills at sometime, it's important to know that rarely do physicians and hospitals actually report to collection agencies (as opposed to credit card companies that do it almost immediately). In fact, various sources say that only.07% of medical businesses actually report their patients to bureaus. Most just write off any losses.
3. Get a Health Savings Account. Lastly, a great way to be better prepared for these kinds of unexpected medical expenses to acquire a health savings account (HSA). Most health insurance companies require a high deductible (about $1,500 for a single) to establish one through your plan but they can really be a life saver and help you be debt free. How it works: a portion of your paycheck (prior to taxes) is put into your HSA each month. You can build the money in your account tax free as well. You are then issued a debit card and can use that card strictly for paying for medical expenses, such as when paying off co-pays, medications, and remaining balances you may have on a surgery. It takes out the temptation of using a small portion of your savings for something other than medical uses. Your balance moves from year to year and works as an IRA after 65, so it can be invested.
Author Bio:
Eliza Morgan is a full time blogger. She specializes in writing about business credit cards. You can reach her at: elizamorgan856 at gmail dot com.
Those who really fear credit card debt are usually cautious when it comes to making future purchases. For example, if a couple knows they want a new TV for the living room, they'll usually save for a few months and then pay for a new TV with cash. But not everything can be so calculated, especially when it comes to your health.
Sometimes you get sick out of nowhere, and even if you're insured, getting billed for medical expenses is one of the easiest ways for someone to get into debt (or deeper debt). Think about it: one single trip to the emergency room can set you back $200 for someone with insurance. If this was an unexpected expense and you don’t have enough money in your account, what will you do? Charge it on your credit card. Depending on how quickly you can pay it back will determine how much interest you will accumulate. In fact, according to the most recent statistics, nearly 21 million Americans accrued credit card debt in 2008 due to using their cards to pay for medical bills. While health is important and unpredictable, there are some things you should consider first before using your credit card to seek temporary relief.
1. Negotiate with your Doctor/Hospital. First things first, it's always important that you speak up front that you may not be able to afford whatever procedure or test that the physician says you need. If it's an emergency situation the physician will go ahead and do the procedure, but they will be more willing to give you a discounted rate or work out some sort of payment plan (some charge interest; others do not). Either case, you are not obligated to pay any sort of out-of-pocket expenses up front so don’t be too tempted to put it on your credit card immediately. But if you discuss your financial situation from the beginning, the physician may be able to reduce your bill in some area, whether it's with the anesthesiologist if you've had surgery or with your medications.
2. Know who is more likely to Report to Credit Bureaus. If you put your medical bills on your credit card and then can't find a way to pay off your credit card bill, you will undoubtedly be contacted by a bill collector. From there, the appropriate crediting bureaus will be notified as well and your discrepancy will negatively be placed on your credit report and affect your credit score. While you do in fact want to pay off your medical bills at sometime, it's important to know that rarely do physicians and hospitals actually report to collection agencies (as opposed to credit card companies that do it almost immediately). In fact, various sources say that only.07% of medical businesses actually report their patients to bureaus. Most just write off any losses.
3. Get a Health Savings Account. Lastly, a great way to be better prepared for these kinds of unexpected medical expenses to acquire a health savings account (HSA). Most health insurance companies require a high deductible (about $1,500 for a single) to establish one through your plan but they can really be a life saver and help you be debt free. How it works: a portion of your paycheck (prior to taxes) is put into your HSA each month. You can build the money in your account tax free as well. You are then issued a debit card and can use that card strictly for paying for medical expenses, such as when paying off co-pays, medications, and remaining balances you may have on a surgery. It takes out the temptation of using a small portion of your savings for something other than medical uses. Your balance moves from year to year and works as an IRA after 65, so it can be invested.
Author Bio:
Eliza Morgan is a full time blogger. She specializes in writing about business credit cards. You can reach her at: elizamorgan856 at gmail dot com.
Top Debt Relief Scams to Avoid
Guest Post by Alan Winkler
Getting out of debt can sometimes be a long and arduous process under the best of circumstances. Between the complexities of debt legislation and the various competing demands of debt collectors and consolidation firms, someone working to relieve their debt has several obstacles to overcome. Unfortunately, there are nearly as many shady, untrustworthy, and downright fraudulent collection and consolidation services out there as there are honest firms that genuinely try to help consumers. In order to avoid being taken advantage of, it's important to understand some of the most common debt consolidation scams out there.
Watch Out for Hidden Fees
One of the most common forms of debt consolidation fraud is the time-tested tactic of charging numerous hidden fees. All debt consolidation firms charge a fee of some type or other in order to stay in business, but reputable firms are up front and very open regarding their fee payment structure. If you have started to notice reoccurring charges from debt consolidators that defy explanation, you might be in the grasp of scammers. In order to avoid this, check out a debt consolidation company thoroughly before beginning a business relationship with them. Companies that pressure you to sign contracts right off the bat may be trying to conceal hidden fees or service charges until it's too late for you to back out.
Consider Your Debt Plan Carefully
Debt relief plans are also ripe for exploitation. These plans set the structure for how you'll repay your debt and what the time frame for doing so will look like. Ethical debt consolidation companies provide an excellent way to plan your debt relief and satisfy creditors, but all too often, unscrupulous debt collectors with no concern for customers will offer plans that do not meet creditors' needs, leaving the customer in the lurch. This happens for a variety of reasons: the scammers may be better able to hide an exploitative fee structure in longer-term, slower payments, or they may have lured customers in with false promises of far lower interest rates that the creditors have not actually offered. These scams leave the individual in terrible trouble, as their financial situation worsens and the scammers make a profit.
Know Who to Trust
While it's not a scam, it pays to be aware of the fact that many false debt relief organizations will attempt to portray themselves as something more trustworthy. Common examples include so-called "Christian" debt consolidation firms, which prey on the trust that many feel for their co-religionists; the "non-profit" label is also frequently employed by these charlatans. The FTC has filed suit against several so-called "non-profit" debt collectors in the past few years for advertising their status as non-profits falsely in order to generate trust. Choose a debt consolidation company on their track record and user reviews, not on the basis of their attempts to portray themselves as more honest than the other guys. When it comes to debt consolidation, a little skepticism can go a long way towards keeping you safe!
Remember, the debt consolidation firm is working for you, not the other way around. Avoid companies that are too eager to talk you into a commitment, and if they're too forceful, ignore them. Many other options exist. Likewise, be sure that both you and your creditors understand and approve of the consolidator's plan. Preparations such as these can save hundreds if not thousands of dollars on top of the extreme aggravation that debt scams can cause. Get out of debt today with honest and ethical debt consolidators.
About the Author: Alan Winkler is a professional debt advisor and regular writer for Debt Consolidation Advice, a credit card debt relief blog. He also covers the debt relief industry as a whole and provides money saving tips.
Getting out of debt can sometimes be a long and arduous process under the best of circumstances. Between the complexities of debt legislation and the various competing demands of debt collectors and consolidation firms, someone working to relieve their debt has several obstacles to overcome. Unfortunately, there are nearly as many shady, untrustworthy, and downright fraudulent collection and consolidation services out there as there are honest firms that genuinely try to help consumers. In order to avoid being taken advantage of, it's important to understand some of the most common debt consolidation scams out there.
Watch Out for Hidden Fees
One of the most common forms of debt consolidation fraud is the time-tested tactic of charging numerous hidden fees. All debt consolidation firms charge a fee of some type or other in order to stay in business, but reputable firms are up front and very open regarding their fee payment structure. If you have started to notice reoccurring charges from debt consolidators that defy explanation, you might be in the grasp of scammers. In order to avoid this, check out a debt consolidation company thoroughly before beginning a business relationship with them. Companies that pressure you to sign contracts right off the bat may be trying to conceal hidden fees or service charges until it's too late for you to back out.
Consider Your Debt Plan Carefully
Debt relief plans are also ripe for exploitation. These plans set the structure for how you'll repay your debt and what the time frame for doing so will look like. Ethical debt consolidation companies provide an excellent way to plan your debt relief and satisfy creditors, but all too often, unscrupulous debt collectors with no concern for customers will offer plans that do not meet creditors' needs, leaving the customer in the lurch. This happens for a variety of reasons: the scammers may be better able to hide an exploitative fee structure in longer-term, slower payments, or they may have lured customers in with false promises of far lower interest rates that the creditors have not actually offered. These scams leave the individual in terrible trouble, as their financial situation worsens and the scammers make a profit.
Know Who to Trust
While it's not a scam, it pays to be aware of the fact that many false debt relief organizations will attempt to portray themselves as something more trustworthy. Common examples include so-called "Christian" debt consolidation firms, which prey on the trust that many feel for their co-religionists; the "non-profit" label is also frequently employed by these charlatans. The FTC has filed suit against several so-called "non-profit" debt collectors in the past few years for advertising their status as non-profits falsely in order to generate trust. Choose a debt consolidation company on their track record and user reviews, not on the basis of their attempts to portray themselves as more honest than the other guys. When it comes to debt consolidation, a little skepticism can go a long way towards keeping you safe!
Remember, the debt consolidation firm is working for you, not the other way around. Avoid companies that are too eager to talk you into a commitment, and if they're too forceful, ignore them. Many other options exist. Likewise, be sure that both you and your creditors understand and approve of the consolidator's plan. Preparations such as these can save hundreds if not thousands of dollars on top of the extreme aggravation that debt scams can cause. Get out of debt today with honest and ethical debt consolidators.
About the Author: Alan Winkler is a professional debt advisor and regular writer for Debt Consolidation Advice, a credit card debt relief blog. He also covers the debt relief industry as a whole and provides money saving tips.
Tuesday
No Advance Fees for Debt Relief Companies
Guest Post by Robert Zangrilli
Robert Zangrilli is the CEO of Franklin Debt Relief, a debt settlement company based in Chicago, Illinois but servicing clients nationwide.
Before October 27, 2010, the common practice in the debt reduction industry was to charge to up front fees to consumers who used their services. Prior to this date, my company for example, charged its fee over the first 18 months of our client’s programs, which usually lasted 24 to 36 months. Earlier this year, however, the FTC ruled that charging fees in advance to settling a consumers’ credit card debt as a practice was harmful to consumers. Certainly this was true of many companies, especially those who collected the majority of the fees before providing any services and in fact, probably had no real intention of settling their clients’ debts.
This all changed effective October 27, 2010 when the FTC made effective an up front fee ban for debt relief services. More specifically, the FTC ruled that debt relief companies must now negotiate the term of at least one of a consumer's debts in order to receive compensation for its services. Not only must there be a written agreement of this settlement, but the consumer must agree to it and have made at least one payment to a creditor in order for a debt relief company to receive compensation for its services.
On top of these new rules regarding fees, there are also specific provisions in the new rule regarding the advertising and sales of debt relief services. First off, debt relief companies are now required to make specific disclosures to clients before enrolling them into their programs. Second, debt relief companies are prohibited from making deceptive claims about the success of their programs, including how long it will take to settle a consumer’s debts and how much a client will save. While these two new provisions may seem unimportant, these are perhaps the most significant parts of the new rule because it makes it clear what is a deceptive practice in the debt relief industry, which in turn will be used to justify FTC actions against unscrupulous actors.
I hope this article sheds some light on the protections afforded to consumers seeking debt relief services. As is true in most industries, there are still bad actors out there trying to skirt the law by setting up face-to-face meetings with consumers (the rule only sold over the telephone), so it is important that consumers continue to do their due diligence before enrolling with a company. BBB complaint record, how long a company has been in business, and TASC accreditation (the debt settlement industry’s trade organization) are both good indicators of how reputable a company is.
Robert Zangrilli is the CEO of Franklin Debt Relief, a debt settlement company based in Chicago, Illinois but servicing clients nationwide.
Before October 27, 2010, the common practice in the debt reduction industry was to charge to up front fees to consumers who used their services. Prior to this date, my company for example, charged its fee over the first 18 months of our client’s programs, which usually lasted 24 to 36 months. Earlier this year, however, the FTC ruled that charging fees in advance to settling a consumers’ credit card debt as a practice was harmful to consumers. Certainly this was true of many companies, especially those who collected the majority of the fees before providing any services and in fact, probably had no real intention of settling their clients’ debts.
This all changed effective October 27, 2010 when the FTC made effective an up front fee ban for debt relief services. More specifically, the FTC ruled that debt relief companies must now negotiate the term of at least one of a consumer's debts in order to receive compensation for its services. Not only must there be a written agreement of this settlement, but the consumer must agree to it and have made at least one payment to a creditor in order for a debt relief company to receive compensation for its services.
On top of these new rules regarding fees, there are also specific provisions in the new rule regarding the advertising and sales of debt relief services. First off, debt relief companies are now required to make specific disclosures to clients before enrolling them into their programs. Second, debt relief companies are prohibited from making deceptive claims about the success of their programs, including how long it will take to settle a consumer’s debts and how much a client will save. While these two new provisions may seem unimportant, these are perhaps the most significant parts of the new rule because it makes it clear what is a deceptive practice in the debt relief industry, which in turn will be used to justify FTC actions against unscrupulous actors.
I hope this article sheds some light on the protections afforded to consumers seeking debt relief services. As is true in most industries, there are still bad actors out there trying to skirt the law by setting up face-to-face meetings with consumers (the rule only sold over the telephone), so it is important that consumers continue to do their due diligence before enrolling with a company. BBB complaint record, how long a company has been in business, and TASC accreditation (the debt settlement industry’s trade organization) are both good indicators of how reputable a company is.
Subscribe to:
Posts (Atom)
