When You Are Swimming in Debt

Have you ever seen HGTV’s “My First Place”? It’s about first-time home buyers looking for the perfect place to call their own, within a set budget. I’m always amazed by how seemingly transparent they are with their finances. I’ve seen a few episodes where the buyers freely divulged how bad their credit scores were as a justification as to why their budget for house hunting was so low. Another episode followed a guy as he tried to repair his credit while house hunting. The show documented the jockeying he did with lenders as he waited for his score to improve … Continue reading

Options For Paying Your Tax Bill

Tax Day is almost here, and if you have been putting off preparing your tax return because you fear finding out that you owe money. You can take comfort in knowing that you are not alone. Not everyone is doing the happy dance all the way to the bank with big, fat refund checks. There are plenty of people who will find out that they owe tax this year. They just are not shouting about it from the rooftops like those folks who are getting refunds. Since there are penalties, including financial penalties for not filing your tax return on … Continue reading

Big Bad Bill Collectors Beware

If you dread looking at your called ID every time the phone rings, chances are that you are in debt and you do not want to talk to the bill collectors that are calling (and calling, and calling). Although bill collectors are allowed to call you in an attempt to collect money from you, there are rules that they must follow. Many bill collectors do follow the rules, but some are unscrupulous and use bad business practices to kick you when you’re down. Here’s the scoop on what bill collectors can and cannot do. The Fair Debt Collection Practices Act … Continue reading

Hi, I’m Michelle and I’m an Overspender

I’ve been a working gal all my life. My first job was at twelve years old helping the neighbor lady in her small grocery store down the road. Every Friday I’d proudly get my paycheck and…. spend it. Years later,as a married woman, I more or less did the same thing. I got my paycheck, and hubby and I spent it. We went out to dinner, to the bars, I got massages, had spa days, and bought new clothes at the trendy spot downtown. Then Hubby and I adopted a little girl and I quit working. Suddenly we found ourselves … Continue reading

Is Debt a Means to an End?

In many people’s mind debt is a means to an end. It is the way that you can get something you want now, instead of waiting until later. There is debt that is truly unavoidable (such as emergency medical expenses) and debt that is more acceptable than other debt (such as a mortgage). But generally debt is something that can hold you back. It can limit the choices that you make in the future. It can keep you from taking risks and opportunities, because you have obligations that you need to meet. I have personally seen families struggle under piles … Continue reading

Make a Plan to Get Out of Debt

Being in debt can feel like a terrible burden, particularly if bill collectors are calling. It can begin to seem that the debt will never be retired or that we are working only to pay bills. If you are in debt there are some things that you can do to ease your load and eventually, become debt free. 1.Understand what caused your debt. In some cases the cause of debt is unavoidable. Perhaps it is the result of a catastrophic illness, accident or divorce. These events may come on suddenly leaving little time for planning. Other times it is simply … Continue reading

Equity or Refinance?

If you are thinking about taking out an equity loan then you have several decisions to make. For instance, with an equity loan, typically a bank will set its rate based on the shortest-term market rate. In addition, an equity loan includes closing costs although generally less expensive than closing costs you would pay with the first mortgage loan. With a home equity loan, you need to know why you want or need this type of loan. For instance, it might be to help pay off credit card debt, it could be to secure a lower interest rate on the … Continue reading

A Look at the New Bankruptcy Laws

This is an overview of what will change with the sweeping changes recently made by Congress to bankruptcy laws. For the most part, the new laws affect Chapter 7 and Chapter 13 bankruptcy proceedings. The bill has exceptions for victims of Hurricane Katrina (extending the time for the changes to take effect for affected people). Below is a list of the changes most likely to impact individuals, even though how the law will be interpreted by judges and bankruptcy trustees has yet to be seen. Effect on eligibility. Formerly, the debtor in question could choose between Chapter 7 and Chapter … Continue reading

5 Ways to Use Your Home Equity Line of Credit

For most of us our home is our most valuable asset. When a large financial need arises, you can make this asset work for you by securing a home equity loan or line of credit. There are several benefits of a home equity line of credit. For example, this type of loan gives you access to a lump sum of cash for big ticket expenses like home renovations, the purchase of a car or college education. In many cases, the interest is tax deductible. Home equity loans and lines of credit offer you the flexibility you need to meet a … Continue reading