The Money Puzzle

Have you heard of student loan consolidation and how it can help you save money? The truth is, there are several very big and very real benefits to consolidating your student loans. Even better, it’s not as difficult as you may think to get your loans consolidated. Here’s a breakdown of the benefits of loan consolidation and how you can do it quickly and easily.

The Benefits of Student Loan Consolidation

1.  A Better Credit Score–People who are recently out of college often have a lot of debt in the form of both student loans and credit cards (remember those student credit cards that were so easy to get?). This, compared with the relative lack of income that most college grads face in their first few years of independence, usually means a negative credit score. This lower score can, in turn, prevent you from getting new credit and good interest rates on loans, such as home and car loans. Consolidating your student loans lowers your monthly payments, freeing up more capital each month. That, combined with timely payments on your loan each month, can mean an improved credit score in time, which will be a great benefit to you when you go to get that first mortgage.

2.  Convenience–It’s a lot more convenient to pay one student loan bill each month than it is to pay several. It’s easier to remember, and it uses up less natural resources in the form of paper and fuel to deliver the bills to you. By consolidating, you’ll be able to pay your student loans in one monthly payment, which will make your life a lot easier. 

3.  Lower Monthly Payments–When you consolidate your student loans, your monthly payments will go down, as you’ll be saving money on interest by having one loan rather than many. This will give you more spending cash to work with each month, which can translate into a better standard of living.

It’s easy to get a student loan consolidation. All you have to do is contact your lender and request one. Your lender will guide you through the process, and all you usually have to do is sign a piece of paper aknowledging the consolidation. By your next payment date, you could have all of your loans rolled into one, and be enjoying a much simpler financial life.

This is the second installment in our student loan series. Be sure to check back for updates…

Every consumer in America has the right to get a free credit report once a year. However, not very many people know this, and the ones that do are often confused about how the process works. As a result, a lot of unscrupulous scam companies have popped up aiming to take advantage of unwary customers. Here’s the truth about the scams out there, how you can avoid becoming a victim of one, and how you really CAN get your credit report for free.

There are plenty of websites out there offering a free credit report. But are these reports truly free? In most cases, the answer is no. If you read the small print on these sites, most of them ask you to sign up for a 30 day free trial of a credit monitoring service in exchange for the free report. You’ll have to give them your credit card number to access the report, and once the 30 days are up, you’ll start being billed for the monitoring service automatically. It’s often very hard to cancel, as these companies don’t make their contact information well-known. Plus, the vast majority of those who sign up for these services forget about them, and are surprised when their credit card statement comes the next month and there’s a charge for $39.95 on it.

The easiest way to avoid the free credit report scams is to avoid signing up with the services that offer them. Nearly all of them are scams, with the exception of the ONE legitimate site for getting free reports. This site is www.AnnualCreditReport.com, and it’s the official site for obtaining your government-guaranteed free annual report. You can use this site once a year to get your credit report from all 3 credit bureaus–Experian, Equifax, and Transunion.

To get the reports, you’ll have to provide some personal identifying information, such as your Social Security number. But don’t worry. The site’s security protocols are strong, so there’s no danger of anyone stealing your identity. You can get the reports directly online, as well, so there’s no waiting period to see them. The only drawback to the site is that the reports don’t come with credit scores. To get those, you’ll have to pay a small fee at the individual websites of the credit reporting agencies.

So, if you want a free credit report, be encouraged by the knowledge that they really do exist! You may only be able to get yours for free once a year, but that’s all most people need to keep an eye on things and make sure all is right in their credit file. By watching your credit, you’ll be able to spot potential problems as soon as they appear and take measures to correct them, which is essential to maintaining your good credit name. 

This is the sixth installment in our credit & debt series. Be sure to check back for updates…

Are you wondering whether or not you should file bankruptcy or explore bankruptcy alternatives? There ARE bankruptcy alternatives, but they may not be right for everyone. In order to decide whether or not you should file bankruptcy, you should first know the main reasons WHY people file, and then learn about what alternative options are available that might apply to your own unique situation.

The Main Reasons Why People File Bankruptcy

1.  They have more debt than they are able to pay back in a reasonable amount of time.

2.  They have more debt than they can pay back at all. In these cases, their minimum monthly payments on all their debts is more than their budget can handle without sacrificing necessities, such as rent and food.

3.  They want to avoid the embarrassment of having their wages garnished to pay back debt, since this would mean their employer would know about their financial difficulties.

4.  They want a fresh start with their credit. While your credit will be damaged for up to 10 years following bankruptcy, you’ll likely be able to start getting low-limit credit cards and small loans again within a year or two, which will allow you to get a new financial start and begin rebuilding good credit. This is attractive to many people who are considering filing bankruptcy.

5.  They realized that filing for bankruptcy will be cheaper for them than paying back their debts.

Bankruptcy Alternatives

1.  Debt counseling services: These services help you consolidate your monthly payments and obtaining lowered interest rates on unsecured debts. Counseling can have a negative impact on your credit, however, and will lengthen the amount of time it takes to pay back your debt.

2.  Debt consolidation loans: You can often get a low-interest loan that allows you to consolidate your debt into one monthly payment. This is convenient and allows you to pay back your debt quicker, and for less interest. However, be careful if you’re using your home equity to get this loan, as you could end up losing your house if you default on the payments.

3.  Debt settlement: You can often get creditors to agree to cancel your debt for less than the amount you owe. This is especially likely if you’ve had the debt for a long time. You’ll be able to settle for cents on the dollar of what you originally owed, but this will usually go on your credit report as having settled for less than the amount due, which can have a negative effect on your credit rating.

Before filing for bankruptcy, you should take all of the above information into account. If you’re able to pay back your debt in a reasonable amount of time, it may be worth your while to contact your creditors and try to work out a more equitable payment arrangement that will allow you to repay them without breaking your budget. Your credit will rebound much more quickly this way than if you declare bankruptcy. Once your creditors are paid, you can sometimes even get them to take the debt off of your credit report entirely, which will boost your score even more. A good credit score is important, as it allows you to get the best interest rates on mortgages and car loans, and can help you qualify for good jobs in the future (yes, employers often check credit reports before hiring). If you feel one of these bankruptcy alternatives is right for you, it’s a good idea to try them first.

 This is the second installment in our bankruptcy series. Be sure to check back for updates…

If you’re considering bankruptcy, then you’re probably curious as to the difference between Chapter 7 and Chapter 13. It’s important to know what each of these is, so you’ll know what to file. Your attorney will probably advise you of what he or she thinks is best for your situation, but to really be sure and know you’re doing the right thing for you, it’s essential that you know the basics. Knowledge is power, after all!

The main difference between Chapter 7 and 13 bankruptcies is how existing debts are handled. In Chapter 7 bankruptcy, most, if not all, of your debts are usually discharged. This means you do not legally owe the debts anymore, and your creditors can no longer come after you for payments. This is often accomplished without you having to sell any of your assets, as the majority of people filing for Chapter 7 bankruptcy don’t have any assets to sell. You won’t be forced to sell your house or car, either….especially if your car is your ONLY car. Chapter 7 is a good option for someone who is considering filing for personal bankruptcy based on excessive consumer credit debt.

Chapter 13 bankruptcy is different. It’s often referred to as a wage earners plan, and its main purpose is to create an equitable and reasonable repayment play for you to pay back your creditors. This type of bankruptcy is used by people who believe they can eventually pay off their debts, but not in a timely manner.

With Chapter 13, debtors are allowed to make structured payments in installments to creditors over a period of 3 to 5 years. Once the process is in motion, creditors are not allowed to start or pursue collection efforts against the debtor. In no case can the time of repayment be more than 5 years. This type of bankruptcy is most commonly used by people who are self-employed or operating unincorporated businesses. It is strictly for individual debtors, as corporations and partnerships are not eligible for Chapter 13. Also, the amount of both unsecured and secured debts being included in the bankruptcy must be within certain amounts set by statute.

The differences between Chapter 7 and 13 bankruptcies are pretty big, so it’s important to know which one is right for your situation. Despite being a financial setback, however, bankruptcy can ultimately give you a new financial life and help you restore your credit. If you’re thinking of filing, consult a qualified bankruptcy attorney for help and advice. It could be the best financial move you’ve ever made.

This is the first installment in our bankruptcy series. Be sure to check back for updates…

 The struggle for low cost health insurance in America is real, and getting worse every day. While politicians all try to spin the health care issue in their own way and the media plays down the problem, real people every day go without basic health coverage. This often means they can’t afford prescriptions, have to forego doctor visits, and often even go bankrupt from unexpected hospital expenses. It’s a national disaster that needs to be changed.

Worse, many people who have health insurance and have never gone without it look down on those who don’t have it. They look at the uninsured as too lazy to get a “real” job, or as illegal immigrants who don’t deserve to have coverage, anyway. They don’t take into account that everyone, regardless of immigration status, deserves access to health care. They also don’t realize that not every employer provides health insurance to their employees, and that not all policies are affordable. In fact, most health insurance policies are quite expensive. Low cost health insurance is almost unheard of in this country!

According to the National Health Care Coalition, nearly 80 percent of people without health insurance in America are either Native American or naturalized citizens. Further, 8 out of 10 people who are uninsured come from working class families. Many of these people have full-time jobs, but are still unable to afford access to health insurance for one reason or another.

The entire health care system in America is designed to lock entire segments of the population out of it. For example, if you work enough to barely pay all your bills and buy food for your family, you probably earn too much to get state-sponsored Medicaid insurance. If you make good money but work for a small company, your employer may not be able to afford to offer health insurance. The cost of most policies is such that buying one would take a large chunk out of whatever surplus you bring home each month, so a lot of people in this position just decide to forego it. This is especially true among young adults (aged 18 to 24), who usually do not look at low cost health insurance as a priority.

The costs of medical services are so much nowadays that just one trip to the hospital for an unexpected illness or injury could ruin you financially. If you’re not able to pay the bill (and most people won’t be able to do this), then your credit is ruined for 7 to 10 years. So what are you to do if you need coverage but can’t afford it? Where can you find low cost health insurance? There are a handful of policies that offer reduced rates on individual policies, such as Blue Cross/Blue Sheild, which are worth looking into. It also makes sense to call small, local insurance providers personally to see if any specials are available on premiums. Though difficult to find, inexpensive health insurance does exist, and it’s extremely important to make the effort to find it. If you don’t, you’ll surely wish you had when you eventually need it, so get looking today!

his is the seventh installment in our health insurance series. Be sure to check back for updates…