There's something about shopping during the holidays as I watch consumers being attacked by exuberant cashiers pushing their store's credit card that gets me concerned for those trying to build a solid life after bankruptcy.
There-s something about shopping during the holidays as I watch consumers being attacked by exuberant cashiers pushing their store-s credit card that gets me concerned for those trying to build a solid life after bankruptcy.
These clerks seem to be unaware of how careful individuals have been all year to build their life after
bankruptcy; by watching what they spend, and how easy it is to go over budget. Offering a ¡°credit rebuilder¡± a new card is like offering a recovering chocoholic a gooey double-fudge brownie supreme.
The holidays bring about mixed feelings among my clients: joy, anxiety, fear, sadness¡.not any of it relating to the reason for the season.
Rebuilding your credit and creating the life after bankruptcy that you desire is a difficult tightrope balance
between moving forward with your life and not ruining the upward progress of your credit score.
Holidays mean gift-giving gatherings with sometimes hundreds of people, if you total them all up. Pressure rises when the office party committee asks us to pitch in for gifts for management.
Your head starts spinning when you think about how your extended family has grown and how they will all exchange presents Christmas Eve at your house this year. You finally feel the wind knocked out of your sails when the cashier tells you that you can save up to 25% on your purchase if you apply for their wonderful store credit card.
Just remember and keep this thought at the front of your mind...creating the desirable life after bankruptcy is the objective, not the savings of 25% that is surely to be out of our original budget anyway.
As someone who has recently discharged a bankruptcy and is trying to rebuild life after bankruptcy as well as create a high credit rating, should you respond to such a sweet, seductive offer? (Twenty-five percent off purchases, after all, would give you the extra money to buy Aunt Millie that deluxe food steamer!) But here-s what I teach as a financial counselor from Credit Is Key: though it is much easier said than done, do NOT apply for any credit cards during the holiday crunch.
Every financial move should be the result of planning and preparation for your life after bankruptcy - not suddenly caving in to pacify the salesclerk - or Aunt Millie. If you say ¡°yes,¡± then the store will make an inquiry on your credit.
Did you know that even a couple inquiries will actually hurt your credit? Rebuilding your life after bankruptcy requires inner strength. A strength you have been nurturing and growing since your discharge. A strength that is given a boost by having a specific goal in mind and a planned
strategy in place; building a wonderful credit rating to enjoy your life after bankruptcy.
Help yourself! Instead of falling into the ¡°get-a-credit-card-and-reduce-your-spending¡± trap, try these ideas for holiday savings - without inquiries or damaging rejections. Always remember the objective...improve your life after bankruptcy by improving your credit rating!? Let-s get back to sweet Aunt Millie.
Do you really think she cares what gift you give her? Your friends and family care more about you, your life after bankruptcy and your financial future than any gift you could bring. Aunt Millie would be delighted with any small token of affection and would much rather have a visit from you than to have you depressed or bankrupt again. ? Christmas cards are expensive, consider sending
e-mail greetings or holiday cards. ? Many people would rather have an old-fashioned,
hand-made gift than an expensive gadget.
Consider these hand-crafted, thoughtful options:
o Frame your favorite photograph of you and the recipient; group several snapshots in an inexpensive
frame. Your life after bankruptcy is much more important and this gift lasts forever.
o Instead of buying each other gifts, go out to lunch or dinner together.
o An alternative to giving every member of your family something is to suggest doing a ¡°Secret Santa¡±
gift. Each person buys just for one other person, instead of a whole family. Remember, creating your ideal life after bankruptcy does not have to be an "ordeal", the Secret Santa method is fun.
o Celebrate the winter holidays with a holiday ¡°spending freeze.¡± Set a limit, remain committed to your
life after bankruptcy and don-t go over it. Agree to keep your spending at this level for the next several years.
Part of the joy is in which friend or family member can be the most creative or find the most interesting gift for under $10.00. (Talk about friendly competition! You-ll probably laugh a lot more than if everyone had given fancy, store-bought gifts!) You see, creating your ideal life after bankruptcy does not have to be boring.
o If you can cook, present a coupon for a delivered dinner or casserole on a certain night. Send cookies in February or a cake on a birthday. (Sometimes people need and appreciate these things more at other times of the year than they do at Christmas.)
o If you-re creative, call a day with your family to make presents; handmade stationery or notecards, hot
chocolate or spiced tea mix, painted t-shirts, or slippers embellished with buttons, ribbons, or initials,
embroidered dishtowels, or create a scrapbook of family stories and quotations. Many clients gain huge perspective during their life after bankruptcy regarding the true meaning of holidays.
o Instead of buying a lot of unnecessary items, buy each person one nice gift. (You-ll be surprised how those tiny little ¡°filler¡± presents add to the budget!)
o A family favorite, even if you aren-t trying to stay within a budget, is to create a ¡°Gift Coupon Book¡±,
regardless of your life after bankruptcy commitment. In it you can entitle bearer to free breakfast in bed, a leisurely Saturday without kids, and even -wildcard- coupons that let the bearer fill in the gift.
Make sure you know your receiver well if you intend to include the last category!
The offer to get a credit card may be appealing, but in the long-run, enjoying the holidays, your family, (especially that sweet Aunt Millie!) your friends, and knowing you stuck to your plan of rebuilding your life after bankruptcy, control over your finances, is much more rewarding than a smile on that cashier-s face.
For those needing their own strategy to rebuild credit and their life after bankruptcy, join the Credit Is Key
membership website. Members enjoy access to many life after bankruptcy rebuilding resources, including a FREE e-course on strategies to quickly and effectively rebuild your damaged credit.
Join the Credit Is Key membership website and receive a FREE e-course to use
our proven strategies to rebuild your credit and your life after bankruptcy. Click now to rebuild your
http://www.creditiskey.org
About Author
Alan Thomas, General and Credit Card Expert, has been involved in helping people plan their financial future for well over 12 years. As someone who has experienced credit foibles first hand, he gladly assists those who truly want to educate themselves in establishing and protecting their excellent credit rating. In his spare time, Alan enjoys fishing with his kids, mountain biking outside his home in Boise, Idaho .
Friday, July 6, 2007
10 ways to protect your self from bankruptcy caused by prolonged illness.
Accidents and prolonged sickness can be a drain both emotionally as well as financially. Sometimes money crunch is caused by the inability to hold a job, or when the medical bills escalate and it becomes increasingly difficult to balance expenses.
Accidents and prolonged sickness can be a drain both emotionally as well as financially. Sometimes money crunch is caused by the inability to hold a job, or when the medical bills escalate and it becomes increasingly difficult to balance expenses.
Further, medical insurance may prove insufficient or will not cover long term medications. Life has become such that one needs to think about and plan for any eventuality.
Experts recommend the following:
1. Ask your doctor for samples of medication.
2. Often an older drug is effective and cheaper. Request the doctor to write a prescription for a drug that is more affordable. According to studies you can save up to 75% this way.
3. Find out the generic name of the medication and choose to purchase it instead of branded medication ---the saving can amount to as much as 70%.
4. Very often companies sell higher dosages of medication for a marginally higher cost. Be prudent, buy the higher dosage and spilt the medication in half, one-third, or quarters. The savings you can make are almost 50 %.
5. Order 90-day supplies in bulk from discount mail order pharmacies or online services. The savings are considerable and many doctors help long term patients reduce costs by putting the patients in touch with distributors.
6. If a particular medication is very expensive ask the doctor to recommend a substitute. This is known as therapeutic substitution.
7. Do try comparison shopping. You will find that the same medication is priced differently in local pharmacies, online outlets, and chain stores. Online pharmacies like http://www.walgreens.com/, www.costco.com , or http://www.drugstore.com/ offer medications at affordable prices.
8. There are several patient-assistance programs that offer free or discounted medication to those who cannot afford long term illness. Companies like Merck have programs that benefit uninsured patients. Medicines are given at discounts of 10-40%.
9. If you or a family member travels frequently you could buy your medicines abroad. Often the same medicine manufactured by the same company is much cheaper overseas. One can also order medicine by mail from Canada where medicines cost 30-50% less than the US. But do check the laws before you attempt this.
10. Start a health saving account where you can save pre tax dollars towards unforeseen medical expenses. This has a high deductible. Find out if you or other family members are eligible.
Use an insurance broker who always thinks of you. He must keep you updated on all new developments as far as health schemes are concerned and make sure you reap all the benefits of the insurance scheme. You could also consider a critical illness policy in addition to a regular health insurance.
About Author
Paul Wilson is a freelance writer for http://www.1888pressrelease.com/Home-and-Family-Taxes-1-81.html, the premier website to Submit Free Press Release for any announcements including launching of new product or services, new website, announcing new hires, sponsoring a special event or seminar and more. His article profile can be found at the premier Legal Article Submission Directory
Accidents and prolonged sickness can be a drain both emotionally as well as financially. Sometimes money crunch is caused by the inability to hold a job, or when the medical bills escalate and it becomes increasingly difficult to balance expenses.
Further, medical insurance may prove insufficient or will not cover long term medications. Life has become such that one needs to think about and plan for any eventuality.
Experts recommend the following:
1. Ask your doctor for samples of medication.
2. Often an older drug is effective and cheaper. Request the doctor to write a prescription for a drug that is more affordable. According to studies you can save up to 75% this way.
3. Find out the generic name of the medication and choose to purchase it instead of branded medication ---the saving can amount to as much as 70%.
4. Very often companies sell higher dosages of medication for a marginally higher cost. Be prudent, buy the higher dosage and spilt the medication in half, one-third, or quarters. The savings you can make are almost 50 %.
5. Order 90-day supplies in bulk from discount mail order pharmacies or online services. The savings are considerable and many doctors help long term patients reduce costs by putting the patients in touch with distributors.
6. If a particular medication is very expensive ask the doctor to recommend a substitute. This is known as therapeutic substitution.
7. Do try comparison shopping. You will find that the same medication is priced differently in local pharmacies, online outlets, and chain stores. Online pharmacies like http://www.walgreens.com/, www.costco.com , or http://www.drugstore.com/ offer medications at affordable prices.
8. There are several patient-assistance programs that offer free or discounted medication to those who cannot afford long term illness. Companies like Merck have programs that benefit uninsured patients. Medicines are given at discounts of 10-40%.
9. If you or a family member travels frequently you could buy your medicines abroad. Often the same medicine manufactured by the same company is much cheaper overseas. One can also order medicine by mail from Canada where medicines cost 30-50% less than the US. But do check the laws before you attempt this.
10. Start a health saving account where you can save pre tax dollars towards unforeseen medical expenses. This has a high deductible. Find out if you or other family members are eligible.
Use an insurance broker who always thinks of you. He must keep you updated on all new developments as far as health schemes are concerned and make sure you reap all the benefits of the insurance scheme. You could also consider a critical illness policy in addition to a regular health insurance.
About Author
Paul Wilson is a freelance writer for http://www.1888pressrelease.com/Home-and-Family-Taxes-1-81.html, the premier website to Submit Free Press Release for any announcements including launching of new product or services, new website, announcing new hires, sponsoring a special event or seminar and more. His article profile can be found at the premier Legal Article Submission Directory
Rebuilding Credit perhaps a good change is in the cards
Rebuilding Credit….perhaps a good change is in the cards! - Are you on your way to rebuilding credit after bankruptcy? Take it from someone who's been there: start reevaluating your physical and financial life. This article will show you how making a few fresh changes can make all the difference!
People call me crazy. Once, every 6 months, like clockwork, I get a wild hair and make some type of major change in my life. It-s not on purpose, mind you, it just always seems to work out that way.
I move the living room furniture around; I knock out a wall in the bathroom and remodel it into a more usable space; I paint the bedroom a dramatically different color. It doesn-t matter what it is (it-s a good thing my husband has a strong heart!) as long as it-s something different, it usually gives me satisfaction.
Why? When most people are so afraid of change, why do I almost thrive on such frequent upheavals in my environment?
Perhaps I want to keep myself always fresh, always out of a rut. It also gives me something to focus on when I-m working through some tough issues in my life.
Now, I-m the kind of person that would happily pick up and move to another city, if it would give us enough benefits to justify the change. Let me tell you about a friend of mine.
They had just gone through some really tough family issues, and had some heavy-duty medical bills result that ruined their credit. Rebuilding credit was at their top of their list¡but they were struggling very hard to make everything meet, despite the added effort they put in.
Things went south pretty quickly, and they were soon faced with some of the biggest personal and financial decisions of their lives. They filed for bankruptcy, and 1 week later moved to a different state. Rebuilding credit now was not just an option, it was mandatory.
That wasn-t an easy task, especially since they were still struggling with medical issues. But, for them, the extreme change of environment, social circle, business contacts was what they needed to begin again and begin down the path of rebuilding credit.
And it worked. Now, they are back on their feet and very happy in their new home city.
Now, this may have been rather extreme for some of you! Just deciding to change the design on your checks might be a several day process! (I say that because I spend DAYS looking at all the different designs almost like therapy! Yes, I am a strange bird!)
But the point to this story is to tell you that the very first thing you need to do when re-evaluating your physical and financial life, especially evaluating rebuilding your credit, is to see where you can make some fresh changes and differentiate yourself from your pre-bankruptcy life.
Just that one step alone is enough to help spur you to continue to take steps moving forward in rebuilding credit, rather than curling up in a ball and hoping it all will just blow over.
Re-establishing yourself is more than just signing up for a secured loan, or buying a house or car. Rebuilding credit is about overcoming all of the self- doubt, worry, anxiety that you have pent up inside.
And if you find change right now too overwhelming, find another type of outlet.
Most people think a gym membership is too expensive. Shop around in your area for what you and your spouse would need in a gym. I know for us, my husband enjoys sweating and working out with weights as his outlet.
I enjoy just being able to escape the world for a few hours, running on the treadmill, soaking in the hot tub, having a coffee while gearing up to head back out in the real world.
My biggest point to all of this is that rebuilding credit and re-establishing yourself after a bankruptcy is far more than just rebuilding credit. It-s rebuilding your self-esteem, self worth, and inner strength.
For me, I do that by taking a sledgehammer to various parts of the house! For you, perhaps reading a novel at Starbucks is more appealing.
Whatever it is, nurture that part of your self. Taking care of self will help you immensely when you begin taking care of your credit.
Join the Credit Is Key membership website and receive a FREE e-course to use our proven strategies to rebuild your credit and your life after bankruptcy. Click now to rebuild your life after bankruptcy.
About Author
Mary came by her after bankruptcy credit knowledge the hard way....walking through the process all by herself, making all of the decisions and those subsequent mistakes! After muddling through a sea of resources, she began weeding out the legitimate advice. Mary joined up with Credit Is Key to help spread the word to people rebuilding their
http://www.creditiskey.org">life after bankruptcy.
People call me crazy. Once, every 6 months, like clockwork, I get a wild hair and make some type of major change in my life. It-s not on purpose, mind you, it just always seems to work out that way.
I move the living room furniture around; I knock out a wall in the bathroom and remodel it into a more usable space; I paint the bedroom a dramatically different color. It doesn-t matter what it is (it-s a good thing my husband has a strong heart!) as long as it-s something different, it usually gives me satisfaction.
Why? When most people are so afraid of change, why do I almost thrive on such frequent upheavals in my environment?
Perhaps I want to keep myself always fresh, always out of a rut. It also gives me something to focus on when I-m working through some tough issues in my life.
Now, I-m the kind of person that would happily pick up and move to another city, if it would give us enough benefits to justify the change. Let me tell you about a friend of mine.
They had just gone through some really tough family issues, and had some heavy-duty medical bills result that ruined their credit. Rebuilding credit was at their top of their list¡but they were struggling very hard to make everything meet, despite the added effort they put in.
Things went south pretty quickly, and they were soon faced with some of the biggest personal and financial decisions of their lives. They filed for bankruptcy, and 1 week later moved to a different state. Rebuilding credit now was not just an option, it was mandatory.
That wasn-t an easy task, especially since they were still struggling with medical issues. But, for them, the extreme change of environment, social circle, business contacts was what they needed to begin again and begin down the path of rebuilding credit.
And it worked. Now, they are back on their feet and very happy in their new home city.
Now, this may have been rather extreme for some of you! Just deciding to change the design on your checks might be a several day process! (I say that because I spend DAYS looking at all the different designs almost like therapy! Yes, I am a strange bird!)
But the point to this story is to tell you that the very first thing you need to do when re-evaluating your physical and financial life, especially evaluating rebuilding your credit, is to see where you can make some fresh changes and differentiate yourself from your pre-bankruptcy life.
Just that one step alone is enough to help spur you to continue to take steps moving forward in rebuilding credit, rather than curling up in a ball and hoping it all will just blow over.
Re-establishing yourself is more than just signing up for a secured loan, or buying a house or car. Rebuilding credit is about overcoming all of the self- doubt, worry, anxiety that you have pent up inside.
And if you find change right now too overwhelming, find another type of outlet.
Most people think a gym membership is too expensive. Shop around in your area for what you and your spouse would need in a gym. I know for us, my husband enjoys sweating and working out with weights as his outlet.
I enjoy just being able to escape the world for a few hours, running on the treadmill, soaking in the hot tub, having a coffee while gearing up to head back out in the real world.
My biggest point to all of this is that rebuilding credit and re-establishing yourself after a bankruptcy is far more than just rebuilding credit. It-s rebuilding your self-esteem, self worth, and inner strength.
For me, I do that by taking a sledgehammer to various parts of the house! For you, perhaps reading a novel at Starbucks is more appealing.
Whatever it is, nurture that part of your self. Taking care of self will help you immensely when you begin taking care of your credit.
Join the Credit Is Key membership website and receive a FREE e-course to use our proven strategies to rebuild your credit and your life after bankruptcy. Click now to rebuild your life after bankruptcy.
About Author
Mary came by her after bankruptcy credit knowledge the hard way....walking through the process all by herself, making all of the decisions and those subsequent mistakes! After muddling through a sea of resources, she began weeding out the legitimate advice. Mary joined up with Credit Is Key to help spread the word to people rebuilding their
http://www.creditiskey.org">life after bankruptcy.
HOW TO SURVIVE AFTER A CHAPTER 7 BANKRUPTCY
Your Bankruptcy Discharge
After you have filed your bankruptcy documents, provided all the documents requied by the Trustee and Court, completed your education classes and attended your 341 Meeting, the Judge will send you a Notice of Discharge when your case is finally dismissed. The date you receive this notice differs in every court and with every Trustee. If the Trustee did not request any additional items from you at your 341 Meeting, the normal process is that the Trustee reviews the case one last time, and then provides the Judge with a confirmation order; which the Judge must sign. The time period for all of this to occur differs with the work habits of the Trustee, the Judge and the court itself. The time period could also differ depending on the amount of bankruptcy cases filed with your particular court.
However, when you receive your Notice of Discharge in the mail, it should be a day of celebration for you! You have successfully lived through the filing of a Chapter 7 bankruptcy and all the debts listed on Schedule F of your petition are now “forgiven.” You now have the opportunity for a NEW START in life!!
How to Start Your New “Debt Free” Life, except for the items that you are still making payments on such as a house or car.
It may be impossible for you to remember a time in your life when you were debt free. Prior to filing bankruptcy, you lived a life where you paid bills with monthly installments. To switch from this “abnormalcy” that you may be used to from the past, to a world of “normalcy” where you don’t pay bills in monthly installments, may be confusing.
That is the primary purpose for this report. I want to help you live a “debt free” life after filing bankruptcy with the hope that you never have to file bankruptcy again. I hope you take time to read this report in its entirety and pass the information onto others. You will find yourself enjoying a more peaceful, less stressful lifestyle – not allowing “debt” to ever place you in bondage again.
Believe me – I know exactly what you are going through. I filed a Chapter 7 bankruptcy back in 1987 and today I live a debt-free life (except for my car payment). Therefore, the information in this report is “first-hand” knowledge, so I know the contents will be a great aide to you in the months and years ahead.
The Credit Card Company “Trap” Examined
I would like to believe that every client I have prepared a bankruptcy petition for is currently enjoying a “financially free” life. But let’s face facts – this is probably not true. In the real world, you probably have been bombarded with credit card offers almost the day after you filed your bankruptcy petition. But this is a trap! These companies know you cannot file a Chapter 7 bankruptcy for at least 8 years, so they “sucker” you in now so they can make a lot of money or harass you to death for the next 8 years. I hope that none of you have fallen for this malicious trap, set up by big, rich, business people – but if you have, you better read on and see what you can do to get out of it.
The main credit card companies that hit most people who recently filed bankruptcy are names like Providian, Capital One, Orchard Bank, First USA, Direct Merchants, First Consumers, First Premier and many more are being developed as you are reading this. These types of companies issue “high-risk” credit cards that ARE NOT the same as other credit cards you have had in the past.
The difference in these types of credit cards is that you are charged fees for just about everything. For instance, Jane, who filed bankruptcy, received a pre-approved card from Capital One with a $200 limit. It was filled with “hype” about how they were concerned about helping Jane rebuild her credit. What a bunch of bull!! These companies don’t care about you building your credit. They are only interested in hooking you … period!!
The monthly administration fee for this $200 credit card was $16.00. One month Jane had a $184.03 balance owed on her credit card. When the company added their monthly administrative fee, the balance became $200.03. This new balance was over her credit limit by only 3 pennies but Capital One added on an additional $39.00 over-the-limit fee. And what is sad about it – Capital One was the cause of the balance going over the credit limit. Now, do you really think these credit card companies want to help you build your credit or care about you as a human being? Of course not!!
To get out of this mess, Jane immediately made a $100 payment to Capital One the moment her monthly bill arrived. She even cut down paying other bills to be able to afford this $100 payment – but she got the bill paid to a safe level where no additional fees would be added to her account. Then, she immediately cut up the credit card and paid another $50 the next month. Finally, within the third month, Jane paid off this credit card entirely, then wrote to the company and cancelled the credit card.
Another “rip-off” credit card company is First Premier Bank out of Sioux Falls, South Dakota. Most of the time they advertise on the internet. You fill in some basic information about yourself and you are issued a guaranteed credit card with a $200.00 credit limit. What’s so bad about this? The fee is $175.00. So regardless of whether you charge a penny on the credit card or not – your first bill will show an available balance of $25.00 with $175.00 in fees owed to them.
The only way you can cancel this card is by never using the card for a purchase; and by notifying the company within 3 days of the receipt of your card. If you do not notify them within 3 days and return the credit card cut in half, you will be liable for the $175.00 fee on a $200.00 credit limit card. This my friend, is a supreme rip-off and a horrible way for any company to do business.
But Won’t These Cards Help to Build My Credit?
Although it may appear to be logical on the surface – and it is a fact that these “high-risk” credit card companies report your payment history to the credit bureau; it really doesn’t do much to build your credit back up after bankruptcy. The fact is – you filed bankruptcy. This is going to remain on your credit report for the next 7-10 years. I don’t care if you have 75 credit cards and pay them all on time – that bankruptcy will still be present and it will continue to have some influence. This is only a “sugar coated” lie to trap you back into debt.
How Can I Rebuild My Credit Correctly?
The easiest and cheapest way to build your credit is to take $500 and deposit it into a savings account with a reputable and known bank or credit union. If you don’t have $500 right now, save out $10 or $20 every paycheck (you’ll never miss it) until you have the $500.
After you deposit the $500 into the bank, you apply for a secured bank loan for $500. The bank will give you the loan because they will put a “hold” on your savings account, assuring them they will not lose their money. Make your payments on time every month and never miss a payment. Within 90 days, you will have credit with a bank or credit union. This fact alone will outshine all those other “high risk” credit cards by a long shot and build your credit faster than using credit cards.
Do You Really Need a Credit Card?
Back in the mid-1980’s I had a mental disorder called “credit card fever.” In fact, most of us have had this disorder at one point or another in our lives, so don’t think you are the only one. Credit card fever translates into “power.” I remember when I used to feel powerful walking into a store and knowing I could purchase anything I wanted and pay for it later. Never once did I consider “how” I was going to pay the bill. I believed the bill would be so small that I would get the money to pay it someplace – without logically thinking it through. My only concern at this point was getting the item(s) I wanted (not items I needed) and worrying about paying the bill later.
My credit card spending habits became so extreme that I actually had to get cash advances on other credit cards to pay the minimum balance on others. This is insanity! It was at this point that I realized I had a mental disorder and it had to be stopped now or I would end up living in a ditch somewhere along the side of the road.
The first thing I did was talk to some wealthy people. I wanted to find out what wealthy people did to cause them to always have money. One of the first people I talked to was an attorney I was working for. He had been an attorney for over 30 years and I knew he was very wealthy. One day I offered to buy him lunch. During our lunch conversation, I was truthful with him and said, “I admire the fact that you have accomplished so much in your life. Could you tell me how you were able to do it?” This question left the subject wide open for him to start telling me how he climbed the ladder to success. I listened very closely to what he said, asked questions along the way and learned more from that attorney in 1 hour than any Suzy Orman advice book on the market today.
Tips I Learned From Wealthy People
One of the things I learned from all the wealthy people I talked with was to stop using credit cards. And, if you do have to use them, use them to your advantage. How do you do that? You purchase an item on sale today with your credit card and pay the entire bill off when the invoice arrives. That way, you received the benefit of making use of the item up to 30 days before you paid for it. Some people will purchase a used car at an auction for $500 with their credit card, and then resell the car for $750 a week later. When the credit card bill arrives, they pay the $500 and they pocket $250 without laying out any out-of-pocket money or paying any interest charges.
Another thing I learned was that wealthy people shop at discount stores and clip coupons. Silly me. When I had credit cards and had the “credit card fever,” I shopped at Sax’s, Bloomingdale’s and other high-priced stores. This way I could brag to my friends about where I purchased an item. But again, this is insane and part of the mental disorder. Most “normal” wealthy people don’t shop at those stores unless something is on sale or if they cannot find the same item someplace else for a lower price.
Another thing I learned from wealthy people is that they are also prepared for periods in their lives when they are not living a wealthy lifestyle. Most wealthy people have a way of adjusting to their situation better than most of us. To illustrate, I knew a wealthy lady who dropped from a $250,000 per year salary down to $30,000 due to losing a large government contract. However, this lady never complained about the salary drop. One day I said to her, “I have never heard you complain about the large drop in salary. How are you coping with it?” She replied with a simple answer, “When you make less money, you just adjust your spending habits.”
Learning How to Pay Bills
The secret to learning how to pay your bills and not get caught back into the trap of overspending is to prioritize your bills. The word “prioritize” sounds really professional but it simply means to “put stuff in order by importance.”
For instance, the first thing I learned after filing bankruptcy was how to pay the important bills first, and worry about “my needs” second. Your first most important bill is your rent or mortgage payment. As long as you keep a roof over your head, you can deal with anything else. Your second most important bills are your utilities. The third most important bill is your car payment. From this point, you can continue working down the list, depending on your own circumstances.
Since the rent or mortgage is the most important, sometimes we have trouble still meeting the payment because it is only due once a month. Many people have a tendency of “putting off” paying the rent until their last paycheck in the month, because it isn’t due until then. However, what if you have an emergency expense at the end of the month? What if you pay your entire rent or mortgage payment out of this last check, and after deducting the emergency expense, you don’t have enough money left for food? That is a situation you don’t want to be in!!
To avoid this from happening, you need to deduct a certain amount EVERY paycheck to go toward your rent. For instance, suppose your rent is $1,000 per month and you are paid weekly. You need to automatically deduct $250 from your checking account the moment your paycheck is deposited. Remember, your rent or mortgage should be paid first, before anything else. By deducting $250 per week, you will have the $1,000 at the end of the month to pay your rent or mortgage – and it won’t be a big drain on you to come up with the entire $1,000 from one paycheck.
In addition, you should use this same method with your utilities and car payment. Simply deduct a sufficient amount to meet these expenses from your checkbook every time you get paid (you don’t write a check, just deduct the expense.) You can label the transaction, Rent Payment #1, Rent Payment #2, and so forth in your checkbook so you will immediately know what this deduction is for.
Whatever is left after you have met your rent or mortgage, utilities and car payment is the amount you have to live on. I can guarantee that if you start using this method you will experience 1 to 2 months of feeling like you have no money. It’s a natural way to feel when you change your spending habits. You may have to learn how to cook something other than microwave dinners, substitute a bowl of soup for a Wendy’s hamburger, start clipping coupons, buying at discount stores and other cost-saving methods – but if you tough it out for 1 to 2 months – you will have the battle won!
Why Do We Go Into Debt?
Other than going into debt to purchase a home or a car, why would anyone need to go into debt? You may need a credit card to rent a car, but that doesn’t mean that you have to charge on that credit card. You can pay for the rental car with cash when you pick it up and avoid the charge on your card. If you begin to analyze yourself, you will probably find that most things you purchase with a credit card are things you could live without. For instance, I received a magazine in the mail the other day from Lillian Vernon. I started looking though it and I tried to count the items I actually needed for my survival. I was shocked into realization when I suddenly discovered that there was absolutely nothing in that catalog that I really needed to survive. Nothing!! So, I threw the magazine in the trash and saved myself some money.
I believe as human beings we attempt to “attach” ourselves to “things.” We believe that the things we buy will enhance our lives, make us more popular or cause us to have happiness and peace. That’s a lie! And you and I should know that fact more than anybody since we have filed bankruptcy. It is much more important for you to get a grip and realize that the things we have in our possession means absolutely nothing. It is the person we are that really matters. Would you rather have a good honest friend who was poor, or a rich kid with a knife terrorizing the neighborhood? Somehow – in a situation like this, rich and poor have no meaning.
Bank Debit Cards
Bank debit cards are probably the best thing that ever happened to people like you and me after filing bankruptcy. We all know what these are. They are cards that look like a Visa or MasterCard but when we use them, the amount is deducted from our checking account. Debit cards take the place of writing a check.
The main problem people have with using their debit cards is they forget to record the transaction in their check books, which is standard when writing a check. To solve this problem, simply take the receipt the cashier gives you and slip it inside your checkbook to record when you get home. Or, if your bank has an online banking service, review your bank account statement at least once every week and keep your checkbook balanced.
Another problem using debit cards is that some banks charge you a fee for using it. However, this issue is slowly phasing out. More and more, banks now issue a debt card without the word “debit” on it. This way, when the cashier asks you “charge or debit” you can say “charge” and there will be no additional debit card fee. For example; I have a debit card through my credit union. One day I went to the post office to purchase some stamps and when the cashier ran my card through, I told her it was a “debit card.” On my bank statement I found a 75¢ charge for this transaction. However, the next time I went to the post office I told the cashier my card was a “charge” and there was no fee.
Food for Thought
Even before credit cards existed, God gave us this wisdom in the Bible: “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.” (Romans, Chapter 13, Verse 8.)
This small verse is very powerful. It tells you not to owe any man (this includes credit card companies) because God knew it would be living life similar to a jail sentence. Instead, He commands us to love each other, which is one of the main secrets to a happy and fulfilled life of joy, peace and contentment. I urge you to think about this and I hope you have a wonderful life.
Victoria Ring has worked in the paralegal field since 1977. She currently owns and operates her own paralegal company, The Lawyer Assistant. Victoria is an associate paralegal member of the Columbus Bar Association, past board member of the Paralegal Association of Central Ohio, member of The National Notary Association and is a Certified Signing Agent for mortgage companies.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/Articles/HowToSurviveAfterBK/HowtoSurviveBK.htm
After you have filed your bankruptcy documents, provided all the documents requied by the Trustee and Court, completed your education classes and attended your 341 Meeting, the Judge will send you a Notice of Discharge when your case is finally dismissed. The date you receive this notice differs in every court and with every Trustee. If the Trustee did not request any additional items from you at your 341 Meeting, the normal process is that the Trustee reviews the case one last time, and then provides the Judge with a confirmation order; which the Judge must sign. The time period for all of this to occur differs with the work habits of the Trustee, the Judge and the court itself. The time period could also differ depending on the amount of bankruptcy cases filed with your particular court.
However, when you receive your Notice of Discharge in the mail, it should be a day of celebration for you! You have successfully lived through the filing of a Chapter 7 bankruptcy and all the debts listed on Schedule F of your petition are now “forgiven.” You now have the opportunity for a NEW START in life!!
How to Start Your New “Debt Free” Life, except for the items that you are still making payments on such as a house or car.
It may be impossible for you to remember a time in your life when you were debt free. Prior to filing bankruptcy, you lived a life where you paid bills with monthly installments. To switch from this “abnormalcy” that you may be used to from the past, to a world of “normalcy” where you don’t pay bills in monthly installments, may be confusing.
That is the primary purpose for this report. I want to help you live a “debt free” life after filing bankruptcy with the hope that you never have to file bankruptcy again. I hope you take time to read this report in its entirety and pass the information onto others. You will find yourself enjoying a more peaceful, less stressful lifestyle – not allowing “debt” to ever place you in bondage again.
Believe me – I know exactly what you are going through. I filed a Chapter 7 bankruptcy back in 1987 and today I live a debt-free life (except for my car payment). Therefore, the information in this report is “first-hand” knowledge, so I know the contents will be a great aide to you in the months and years ahead.
The Credit Card Company “Trap” Examined
I would like to believe that every client I have prepared a bankruptcy petition for is currently enjoying a “financially free” life. But let’s face facts – this is probably not true. In the real world, you probably have been bombarded with credit card offers almost the day after you filed your bankruptcy petition. But this is a trap! These companies know you cannot file a Chapter 7 bankruptcy for at least 8 years, so they “sucker” you in now so they can make a lot of money or harass you to death for the next 8 years. I hope that none of you have fallen for this malicious trap, set up by big, rich, business people – but if you have, you better read on and see what you can do to get out of it.
The main credit card companies that hit most people who recently filed bankruptcy are names like Providian, Capital One, Orchard Bank, First USA, Direct Merchants, First Consumers, First Premier and many more are being developed as you are reading this. These types of companies issue “high-risk” credit cards that ARE NOT the same as other credit cards you have had in the past.
The difference in these types of credit cards is that you are charged fees for just about everything. For instance, Jane, who filed bankruptcy, received a pre-approved card from Capital One with a $200 limit. It was filled with “hype” about how they were concerned about helping Jane rebuild her credit. What a bunch of bull!! These companies don’t care about you building your credit. They are only interested in hooking you … period!!
The monthly administration fee for this $200 credit card was $16.00. One month Jane had a $184.03 balance owed on her credit card. When the company added their monthly administrative fee, the balance became $200.03. This new balance was over her credit limit by only 3 pennies but Capital One added on an additional $39.00 over-the-limit fee. And what is sad about it – Capital One was the cause of the balance going over the credit limit. Now, do you really think these credit card companies want to help you build your credit or care about you as a human being? Of course not!!
To get out of this mess, Jane immediately made a $100 payment to Capital One the moment her monthly bill arrived. She even cut down paying other bills to be able to afford this $100 payment – but she got the bill paid to a safe level where no additional fees would be added to her account. Then, she immediately cut up the credit card and paid another $50 the next month. Finally, within the third month, Jane paid off this credit card entirely, then wrote to the company and cancelled the credit card.
Another “rip-off” credit card company is First Premier Bank out of Sioux Falls, South Dakota. Most of the time they advertise on the internet. You fill in some basic information about yourself and you are issued a guaranteed credit card with a $200.00 credit limit. What’s so bad about this? The fee is $175.00. So regardless of whether you charge a penny on the credit card or not – your first bill will show an available balance of $25.00 with $175.00 in fees owed to them.
The only way you can cancel this card is by never using the card for a purchase; and by notifying the company within 3 days of the receipt of your card. If you do not notify them within 3 days and return the credit card cut in half, you will be liable for the $175.00 fee on a $200.00 credit limit card. This my friend, is a supreme rip-off and a horrible way for any company to do business.
But Won’t These Cards Help to Build My Credit?
Although it may appear to be logical on the surface – and it is a fact that these “high-risk” credit card companies report your payment history to the credit bureau; it really doesn’t do much to build your credit back up after bankruptcy. The fact is – you filed bankruptcy. This is going to remain on your credit report for the next 7-10 years. I don’t care if you have 75 credit cards and pay them all on time – that bankruptcy will still be present and it will continue to have some influence. This is only a “sugar coated” lie to trap you back into debt.
How Can I Rebuild My Credit Correctly?
The easiest and cheapest way to build your credit is to take $500 and deposit it into a savings account with a reputable and known bank or credit union. If you don’t have $500 right now, save out $10 or $20 every paycheck (you’ll never miss it) until you have the $500.
After you deposit the $500 into the bank, you apply for a secured bank loan for $500. The bank will give you the loan because they will put a “hold” on your savings account, assuring them they will not lose their money. Make your payments on time every month and never miss a payment. Within 90 days, you will have credit with a bank or credit union. This fact alone will outshine all those other “high risk” credit cards by a long shot and build your credit faster than using credit cards.
Do You Really Need a Credit Card?
Back in the mid-1980’s I had a mental disorder called “credit card fever.” In fact, most of us have had this disorder at one point or another in our lives, so don’t think you are the only one. Credit card fever translates into “power.” I remember when I used to feel powerful walking into a store and knowing I could purchase anything I wanted and pay for it later. Never once did I consider “how” I was going to pay the bill. I believed the bill would be so small that I would get the money to pay it someplace – without logically thinking it through. My only concern at this point was getting the item(s) I wanted (not items I needed) and worrying about paying the bill later.
My credit card spending habits became so extreme that I actually had to get cash advances on other credit cards to pay the minimum balance on others. This is insanity! It was at this point that I realized I had a mental disorder and it had to be stopped now or I would end up living in a ditch somewhere along the side of the road.
The first thing I did was talk to some wealthy people. I wanted to find out what wealthy people did to cause them to always have money. One of the first people I talked to was an attorney I was working for. He had been an attorney for over 30 years and I knew he was very wealthy. One day I offered to buy him lunch. During our lunch conversation, I was truthful with him and said, “I admire the fact that you have accomplished so much in your life. Could you tell me how you were able to do it?” This question left the subject wide open for him to start telling me how he climbed the ladder to success. I listened very closely to what he said, asked questions along the way and learned more from that attorney in 1 hour than any Suzy Orman advice book on the market today.
Tips I Learned From Wealthy People
One of the things I learned from all the wealthy people I talked with was to stop using credit cards. And, if you do have to use them, use them to your advantage. How do you do that? You purchase an item on sale today with your credit card and pay the entire bill off when the invoice arrives. That way, you received the benefit of making use of the item up to 30 days before you paid for it. Some people will purchase a used car at an auction for $500 with their credit card, and then resell the car for $750 a week later. When the credit card bill arrives, they pay the $500 and they pocket $250 without laying out any out-of-pocket money or paying any interest charges.
Another thing I learned was that wealthy people shop at discount stores and clip coupons. Silly me. When I had credit cards and had the “credit card fever,” I shopped at Sax’s, Bloomingdale’s and other high-priced stores. This way I could brag to my friends about where I purchased an item. But again, this is insane and part of the mental disorder. Most “normal” wealthy people don’t shop at those stores unless something is on sale or if they cannot find the same item someplace else for a lower price.
Another thing I learned from wealthy people is that they are also prepared for periods in their lives when they are not living a wealthy lifestyle. Most wealthy people have a way of adjusting to their situation better than most of us. To illustrate, I knew a wealthy lady who dropped from a $250,000 per year salary down to $30,000 due to losing a large government contract. However, this lady never complained about the salary drop. One day I said to her, “I have never heard you complain about the large drop in salary. How are you coping with it?” She replied with a simple answer, “When you make less money, you just adjust your spending habits.”
Learning How to Pay Bills
The secret to learning how to pay your bills and not get caught back into the trap of overspending is to prioritize your bills. The word “prioritize” sounds really professional but it simply means to “put stuff in order by importance.”
For instance, the first thing I learned after filing bankruptcy was how to pay the important bills first, and worry about “my needs” second. Your first most important bill is your rent or mortgage payment. As long as you keep a roof over your head, you can deal with anything else. Your second most important bills are your utilities. The third most important bill is your car payment. From this point, you can continue working down the list, depending on your own circumstances.
Since the rent or mortgage is the most important, sometimes we have trouble still meeting the payment because it is only due once a month. Many people have a tendency of “putting off” paying the rent until their last paycheck in the month, because it isn’t due until then. However, what if you have an emergency expense at the end of the month? What if you pay your entire rent or mortgage payment out of this last check, and after deducting the emergency expense, you don’t have enough money left for food? That is a situation you don’t want to be in!!
To avoid this from happening, you need to deduct a certain amount EVERY paycheck to go toward your rent. For instance, suppose your rent is $1,000 per month and you are paid weekly. You need to automatically deduct $250 from your checking account the moment your paycheck is deposited. Remember, your rent or mortgage should be paid first, before anything else. By deducting $250 per week, you will have the $1,000 at the end of the month to pay your rent or mortgage – and it won’t be a big drain on you to come up with the entire $1,000 from one paycheck.
In addition, you should use this same method with your utilities and car payment. Simply deduct a sufficient amount to meet these expenses from your checkbook every time you get paid (you don’t write a check, just deduct the expense.) You can label the transaction, Rent Payment #1, Rent Payment #2, and so forth in your checkbook so you will immediately know what this deduction is for.
Whatever is left after you have met your rent or mortgage, utilities and car payment is the amount you have to live on. I can guarantee that if you start using this method you will experience 1 to 2 months of feeling like you have no money. It’s a natural way to feel when you change your spending habits. You may have to learn how to cook something other than microwave dinners, substitute a bowl of soup for a Wendy’s hamburger, start clipping coupons, buying at discount stores and other cost-saving methods – but if you tough it out for 1 to 2 months – you will have the battle won!
Why Do We Go Into Debt?
Other than going into debt to purchase a home or a car, why would anyone need to go into debt? You may need a credit card to rent a car, but that doesn’t mean that you have to charge on that credit card. You can pay for the rental car with cash when you pick it up and avoid the charge on your card. If you begin to analyze yourself, you will probably find that most things you purchase with a credit card are things you could live without. For instance, I received a magazine in the mail the other day from Lillian Vernon. I started looking though it and I tried to count the items I actually needed for my survival. I was shocked into realization when I suddenly discovered that there was absolutely nothing in that catalog that I really needed to survive. Nothing!! So, I threw the magazine in the trash and saved myself some money.
I believe as human beings we attempt to “attach” ourselves to “things.” We believe that the things we buy will enhance our lives, make us more popular or cause us to have happiness and peace. That’s a lie! And you and I should know that fact more than anybody since we have filed bankruptcy. It is much more important for you to get a grip and realize that the things we have in our possession means absolutely nothing. It is the person we are that really matters. Would you rather have a good honest friend who was poor, or a rich kid with a knife terrorizing the neighborhood? Somehow – in a situation like this, rich and poor have no meaning.
Bank Debit Cards
Bank debit cards are probably the best thing that ever happened to people like you and me after filing bankruptcy. We all know what these are. They are cards that look like a Visa or MasterCard but when we use them, the amount is deducted from our checking account. Debit cards take the place of writing a check.
The main problem people have with using their debit cards is they forget to record the transaction in their check books, which is standard when writing a check. To solve this problem, simply take the receipt the cashier gives you and slip it inside your checkbook to record when you get home. Or, if your bank has an online banking service, review your bank account statement at least once every week and keep your checkbook balanced.
Another problem using debit cards is that some banks charge you a fee for using it. However, this issue is slowly phasing out. More and more, banks now issue a debt card without the word “debit” on it. This way, when the cashier asks you “charge or debit” you can say “charge” and there will be no additional debit card fee. For example; I have a debit card through my credit union. One day I went to the post office to purchase some stamps and when the cashier ran my card through, I told her it was a “debit card.” On my bank statement I found a 75¢ charge for this transaction. However, the next time I went to the post office I told the cashier my card was a “charge” and there was no fee.
Food for Thought
Even before credit cards existed, God gave us this wisdom in the Bible: “Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law.” (Romans, Chapter 13, Verse 8.)
This small verse is very powerful. It tells you not to owe any man (this includes credit card companies) because God knew it would be living life similar to a jail sentence. Instead, He commands us to love each other, which is one of the main secrets to a happy and fulfilled life of joy, peace and contentment. I urge you to think about this and I hope you have a wonderful life.
Victoria Ring has worked in the paralegal field since 1977. She currently owns and operates her own paralegal company, The Lawyer Assistant. Victoria is an associate paralegal member of the Columbus Bar Association, past board member of the Paralegal Association of Central Ohio, member of The National Notary Association and is a Certified Signing Agent for mortgage companies.
http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/Articles/HowToSurviveAfterBK/HowtoSurviveBK.htm
How do I know if I should file bankruptcy?
Are you calling because you are being sued?
If you are being sued, and you own a home, we strongly urge you to speak with a Legal Helper representative immediately about filing a bankruptcy. A bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a lien on your home or garnishing your hard-earned wages.
If you are being sued, and you own a home, we strongly urge you to speak with a Legal Helper representative immediately about filing a bankruptcy. A bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a lien on your home or garnishing your hard-earned wages.
*Is your home being foreclosed or is your car about to be repossessed?
If it is, very often bankruptcy may prevent the foreclosure action or repossession from proceeding and allow you to consolidate your mortgage arrears or automobile balance and make payments on those debts over time through a payment plan designed by us with your help. If your house is being foreclosed or your car is about to be repossessed, Chapter 7 may not be an option. Chapter 13 may save your house and your car.
*Do credit cards or medical bills have you so deep in debt that it is hard for you to save for the future?
If you are only paying the minimum payment on the credit card bills from month to month (generally from two to three percent of the outstanding balance), and the interest rate is only 15%, you will take about 20 years to pay off a $10,000 debt. Do you really want to be in the same financial situation in twenty years? Chapter 7 bankruptcy can provide you with a fresh start that you are entitled to under the law and get you out of debt NOW.
http://www.legalhelpers.com/legal_helpers/common_questions.html
Will I be able to rent after I file bankruptcy?
There were over 1 million bankruptcies filed in the United States last year alone. Common sense will tell you that these people are not all living on the street. If you are presently renting a home or apartment, usually your present landlord will renew your lease without running an updated credit report, and will have no knowledge that you even filed a bankruptcy. If you are applying for a new lease, there could be some slight difficulties that can easily be overcome. We have found that larger leasing companies usually have stricter policies regarding leasing to applicants with blemished credit. Remember that it is the blemished credit report, not necessarily the bankruptcy that is reflecting poorly on your application. Also, with no outstanding debt, you may appear to be a better risk than other applicants who have outstanding debt and blemished credit reports. We find that a good faith gesture, such as offering an extra month security deposit, may be enough for a potential lessor to overcome her concerns about your blemished credit.
http://www.legalhelpers.com/legal_helpers/common_questions.html
http://www.legalhelpers.com/legal_helpers/common_questions.html
Will I lose anything if I file for bankruptcy?
Generally, you may file a bankruptcy and retain all of your personal belongings, including your house, your car and all household goods. Legal Helpers will make sure that all of your personal belongings are protected. If you owe more on your car than the car is worth, the bankruptcy court will not sell your car, because after sale there would be no money left over to make a distribution to your creditors. The same goes for your home and personal property. Even if your property is worth more than what is owed on it, usually we can use the state bankruptcy exemptions to protect these items.
You may be more at risk of losing property if you don't file bankruptcy, as creditors can sue you and attach your bank accounts, garnish your wages and attach and seize your property. As a result, you may miss rent, mortgage or car payments, making it difficult to provide even your most basic necessities.
http://www.legalhelpers.com/legal_helpers/common_questions.html
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