Bankruptcy is difficult and stressful. The after effects can leave you with a low credit rating, meaning it will take years to recover and start making use of credit lines and mortgages again. Before you proceed with bankruptcy, try these tactics to get your financial life in order.
Settle or Negotiate Debts
Talk to creditors and see if they are willing to settle your debts for a fraction of the cost. This works like debt consolidation, but saves you money. If possible, get a debt consolidation loan to combine all your debts into a single manageable payment, so you can handle it budget wise.
Sell Your Assets
Your assets and valuables could be at risk in a bankruptcy claim anyway, so consider selling some things to help dig your way out of debt. Do you have a second vehicle you can part with? Do you have other valuables? Meet with an appraiser for high value items. Sell other items online or at a local flea market.
Borrow Money from Family
Though it means swallowing your pride to do it, if it will save you from filing bankruptcy, don’t be afraid to ask for help when you need it. If it means keeping your home, it is worth risking the strain on the relationship.
Sit down and look at your budget. See what you’re actually spending compared to what the budget says you are. Make cuts where you can, even if it means you have to make more meals at home, or get a friend to cut your hair for you. Shop secondhand stores for clothes and shoes. Rent movies instead of seeing them in the theater. These sacrifices are short term and the savings can go a long way toward repaying your debt.
Most people think of credit cards as a financial disaster, but when used correctly, they can save you money.
Play the Statement Cycle to Your Advantage
Make a charge on your credit card the day after your statement closes. You’ll always have 20 to 25 days after the statement closes to pay off the balance without interest. But, charging the day after the statement closes will get you an additional month to pay the balance off interest free.
Use a 0% Interest Rate Balance Transfer to Save Money
Have you racked up a high balance on one of your credit cards and now you’re stuck paying a tremendous amount of interest? Look for a 0% interest rate balance transfer introductory offer. This can help you save money on the overall credit card debt, because you’ll stop paying interest.
A word of caution: If you haven’t kept the account open long, it can hurt your credit score to close it. A good bit of your score is calculated by the age of your accounts. Don’t bite if you don’t think you can pay the balance off in full before the interest rate on the new card kicks in. It will defeat the purpose; so keep a close eye on the terms and conditions of the new card before you apply.
Know Your Rewards Program
The terms and conditions of credit card rewards programs vary greatly depending on issuer. Know what purchases get you the best rewards. If you earn more rewards for gas and groceries, use that card for gas and groceries. You’re budgeting for those purchases anyway, so you can pay the balance off in full every month, and capitalize on the rewards, whether it is cash back or travel points.
Don’t have rewards program? Keep balances low while paying your bills on time and you’ll eventually reach a point where you will qualify.
Health savings accounts (HSAs) are like personal savings accounts, expect the money in them is meant to be used for health expenses. You control the money, and money you put into the plan is not taxed. To be eligible for this type of account, you must have a high-deductible health insurance plan.
These accounts were created to help control health care costs. The idea is people will spend healthcare money more wisely if they’re using their own money. As a bonus, health care providers will be motivated to reduce their rates in order to compete for business.
Advantages and Disadvantages
- You decide how much money to set aside for savings.
- You can shop around to get the best deal.
- If your employer contributes to your account, the money is yours even if you switch jobs.
- Unused money at the end of the year rolls over for next year.
- You don’t pay taxes on the money going into the account.
- Since illness is unpredictable, it can be hard to budget accordingly.
- Health care cost and quality information may be hard to find.
- People who are older or sicker may have a harder time saving money.
- Pressure to save money in the account may keep you from seeking medical help when you need it.
- If HSA money is used for non-medical expenses, you will have to pay taxes on it.
Who can setup a plan?
You can set up an HSA through your employer. If your company does not offer this, you can setup one up through your own bank. You must be under age 65 and carry a high-deductible insurance plan. If you are married and your spouse uses your insurance as a secondary plan, he or she must also be enrolled in a high deductible plan. Your insurance must be your only health insurance plan, but having dental, vision, or disability insurance does not disqualify you from an HSA.
Do you own a home? If so, you know just how expensive this can be. In addition to monthly loan payments, you have to concern yourself with everything from utilities to maintenance.
Although you are sure to be faced with many expenses as a homeowner, the benefits you receive in return are well worth it.
With all this in mind, there are ways for you to save money as a homeowner. You just need to know which adjustments to make.
Three Bits of Advice
Here are three ways the average homeowner can save money, without making any drastic changes:
- Focus on your utility bills. For example, you can save by simply using less water and turning the lights out when you leave a room. Along with this, you can compare providers to ensure that you are getting the best rate for the utilities you use.
- Don’t get behind on maintenance. When you let a small problem go, it will turn into a major issue sooner rather than later. If your home requires a repair, do it yourself or hire a professional. Either way, make sure it gets done as soon as possible.
- Use a programmable thermostat. Let’s face it: you are spending a lot of money heating and cooling your home. With this technology, you may be surprised to find that you can save a lot of money no matter what time of the year it may be.
If you own a home and are frustrated with how much you are spending every month, the three bits of advice above may be able to put you on the right track. Why continue to spend more than you have to?
When you focus on these areas, you will find yourself saving more and more with each passing month. And that is what you want, right?
While clothes are essential, those outrageously overpriced designer jeans aren’t. It is quite easy to get carried away when you go shopping for clothes, especially if you consider yourself a “fashionista”. Believe it or not, there are actually ways that you can be a budget-conscious clothing shopper – and still look good.
Interested in learning how to cut your clothing expenses? Read on for some money saving tips:
Saving Money on Clothing
Shop Sales. Sales are a clothes shopper’s best friend. Why pay full price for something when you can likely find it on sale someplace? Keep an eye out for sales at your favorite shops and take full advantage. Some stores offer fantastic savings at specific times of the year, like around holidays.
Shop Ahead. While you might need to shop in season for some items, there are staple clothing items that will always be in fashion. For example, basic jeans and T-shirts are always in vogue, so why not shop for them at the end of the season? At the end of the summer, for example, stock up on basic tees when they are on super sales and wear them next summer. You’ll not only save money but you’ll be ahead of your shopping game.
Many stores offer coupons for their preferred shoppers. Sign up to be on a mailing list and you’ll receive tons of coupons, which will allow you to save a lot of money.
Don’t Charge. Whatever you do, don’t get suckered into one of those store credit cards. While it may seem like they are offering you a great deal with extra savings when you sign up, at the end of the day, you’ll actually spend more. Store credit cards tend to have ridiculously high fees, which will make that $40 shirt that you save 10% on cost double what you spent when you pay it off.
Credit cards are a way to run into debt. This is because it is very easy to incur debt when there seems to be no limit for spending. To make sure that you do not go into debt, you need to take care of your credit card bills. Here are some ways to avoid a credit card debt.
CREATE AN EMERGENCY FUND
You need to create an emergency fund to avoid spending money through a credit card. Generally people only spend money from a credit card for unforeseen contingencies. Having an emergency fund prevents you from overspending using a credit card.
PAY YOUR CREDIT CARD BALANCE ON TIME
Make sure you pay your balance in time rather than carrying it over to another month. You can ensure that you do not have a big credit card debt at the end of the months that follow. Carrying over the debt and spending money you cannot afford is not a smart plan if you want to save money.
AVOID MAKING BALANCE TRANSFERS
You should not transfer your balance to another card unless there is a rate of interest which is lower than the credit card. Too many balance transfers can result in a heavy debt.
AVOID USING CASH ADVANCES
Cash advances can be avoided rather than used. Instead, have budget so that unanticipated expenditure can be met through this. This prevents the cash advances from being used as a way to tackle expenses.
MAKE SURE YOU COMPREHEND CREDIT CARD TERMS
Understanding the rate of interest which is charged and the processing fee are very important prerequisites to avoid overspending using your credit card. Therefore, make sure you understand the terms and conditions of your credit card fully.
If you are an investor, you must protect your investment so that it could run smoothly and you will be successful. Investors must be aware about things that might not be good for their investments. It is imporant to be aware and not regret knowing some common dangers in investing.
• Paying too much in charges
If you want more money to be added to your investment’s value, you have to note the charges. A minimun charge wouldn’t hurt and it will give you more returns in the end. Always compare and check if you get more from the charges you are paying.
• Poor Administration
Make sure that you are good enough at managing your own investments. This is one key to a successful investment. When you learn to manage the money you put in, and you can track the flow and its progress, you will never have a hard time when you make some changes because you are hands on enough to know every detail of your different investments.
• Not taking risks
When you want to beat the inflation, then you have to make enough risks for the sake of your investment. An investor should be a risk-taker in times when the inflation rate is doing no good. The money that you have invested should be able to keep up the pacing of the inflation rate.
• Too many Investments in the same sector
As investors, you should take note that there is a tendency where investments would encounter a rough road. It is too risky to put many investments in the same sector ,like the banking industry, you can never be sure about its stability, so it’s better to invest in different sectors to reduce any problem on your portfolio.
• Paying too much tax
It’s important to pay lesser tax for your investment so that you can have money added in return. The government has offered ISA (Individual saving accounts) and pension, as tax breaks. ISA doesn’t have extra charges on some funds though they do have annual limits on how much you can put in each tax year. For 2013-14 this was £11,520- and up to £5,760 of this allowance can be saved in a cash ISA. When you are flexible, with ISA your capital can also be withdrawn anytime you want.
Think of these things before you invest and always take charge with you investments the best way possible.
Most people realize the importance of saving money for retirement. However, some don’t take the steps necessary to save as much as they truly need. Does this sound familiar?
If you are not doing your part in saving enough for your future, there is no better time than now to get started.
Easy Ways to Save
Are you under the impression that it is challenging to save for retirement? Believe it or not, you can get on the right track soon enough if you follow some basic advice:
- Automate your savings
- Set goals
- Don’t touch this money until you retire
When you automate your savings, you know that the appropriate amount of money is being put towards your retirement. You never have to worry about making contributions on your own, because this is taken care of for you.
Have you set any goals related to your retirement? If not, this is a big mistake. You need to sit down, look at your situation, and set both short and long term goals. This will make you feel better about your future.
Are you the type who will try to take money from a retirement account before you actually retire? Join the club. As tempting as this may be, you have to stay away from doing so. The more money you have in your retirement accounts, and the longer the money is in there, the more interest you are going to earn.
With these three bits of advice guiding you, you will find it much easier to save more for retirement. If you are young, this may not be something you want to think about. But remember, the money you save today will allow you to live a better life down the road – and there is nothing more important than that.
Millions of customers throughout the United Kingdom have allegedly been mis-sold payment protection insurance by their banks. Many claims management companies have helped these customers get their money back. Unfortunately, a number of unscrupulous companies have also taken advantage of customers who have mis-purchased PPI. Customers will need to be aware of these scams and know how they can protect themselves.
PPI Scams Persist
Scam artists frequently offer services based around high profile events. The PPI scandal was the largest financial scandal the country has ever faced. Many criminals have offered services to target customers who may have purchased payment protection insurance.
These scams have been ongoing since the PPI scandal first emerged several years ago. They have grown exponentially as the crisis has gained more attention.
Office of Fair Trading Issues Warnings
The Office of Fair Trading (OFT) has recently stated that PPI scams are more prevalent than ever. They have shared profiles of some of the scams which they hope will protect customers. Here are some warning signs that OFT officials said customers should be aware of:
- Scam artists often claim to be associated with the OFT, FOS or another reputable agency.
- Many will pretend to be working with a legitimate PPI claims company.
- Scam artists tend to be very secretive about what they do. They will typically call or email people and won’t share their real name.
- They ask for money up front and promise to get compensation after the fact.
You will always need to be on your guard when you receive an unsolicited phone call, text message or email.
How to Protect Yourself
There are several things that you can do to avoid being scammed. Here are some tips you may want to follow:
- Never share your banking or personal information over the phone or Internet.
- Remember that the FOS, OFT and other agencies do not email or call people to request personal and banking information. Also, the OFT wants to remind people that it has no bearing to compensate people for PPI claims.
- Only work with claims companies that have a physical location and verifiable business information.
- Find out what the company’s track record is before asking them to file a claim on your behalf.
PPI scams will continue to persist as more people realize that they have been mis-sold PPI. Make sure that you are on your guard against them.
Knowing what you want to buy is also a money saving practice as this limits what you spend for. It takes a lot of discipline to be frugal about spending but the rewards are worth it. A good practice of being frugal is to list down what you need to buy.
Listing What You need to Buy
How many times have you seen people in groceries wandering aimlessly about what they want to buy? By listing down what you really need in your home, you are lessening the risk of spending needlessly on certain items that you do not need. It is also planning your budget so you are still able to save some money as you need certain things. By concentrating on the bare minimum, which are the necessities such as water, toilet paper, food, light bulbs, etc, you are exercising a great deal of self-discipline wherein a compulsion to buy other things are eliminated.
In being able to save money as you spend, you are also saving yourself by being prepared to handle different emergency situations which you can never foretell when it will occur. Emergency situation such as broken appliances that need immediate repair or a toothache that you need to see the dentist to repair. Imagine having to bare the pain of that toothache because you have no emergency funds to pay the dentist. That is a situation that could very possible happen and it would be a most painful one wherein you will wish that you had an emergency fund that you could use.
In listing down what you need, you can also save a lot of time and effort in shopping. You will not have to wonder whether or not you have a certain item at home, as you have taken the time to list down your needed items.
Living expenses are piling up in the present day world. There are many expenses which cannot be curtailed living in a world where recession and inflation have struck. There are many expenses that need to be met and therefore, living frugally is a step forward in the right direction if you want to tackle less bills. Here are some tips for frugal living.
There are many coupon systems prevalent in the modern day world. Some of these coupons offer really good deals. Layer coupons so that you can attain mega savings. Websites and online retailers are a good place to look for coupons. Many companies offer bulk deals and this can lead to a difference in the amount of money that you spend. Frugal living is possible if you make the effort to find and spend coupons.
TONE DOWN THE NECESSITIES
Make sure that you tone down on the bare basics that you need. Try to make do with one cell phone instead of two. Make sure that you do not spend on items you don’t need. If you can streamline your expenditure, that will go a long way in saving money.
Make sure that you do not spend excessively on purchases you do not need. Another good way is to make sure that you delay the purchase of some item for as long as possible. This can prevent you from spending too much at one time. By postponing the purchase, you will have a greater amount of money at your disposal.
Thus, you can easily avoid unnecessary expenditure and live frugally by becoming self sufficient and being independent in your financial planning. You can even grow your own food and be self reliant.
The PPI scandal dates back to late 1990’s when it was first reported that PPI was a poor value product. PPI or payment protection insurance was introduced as a product that would cover the monthly repayments if a person holding the PPI policy fell ill or lost their job. For most people, it sounded an attractive proposition and the product was a hit. The PPI was generally sold alongside loans or credit cards. Many people even led to believe that the credit application was more likely to accepted if the person had a PPI. This was one on the primary methods by which PPI was mis-sold and there were many other loopholes which allowed this to happen.
Most banks and financial institutions that sold PPI did not share the complete and accurate details regarding PPI as they earned a huge profit by mis-selling the product. The figures reveal that banks and financial institutions had a profit margin of almost 80 % if they mis-sold the product. The PPI claims statistics also reveal the fact that since most of the policies were purchased alongside loans, most people ended up paying a lot of money and that the PPI turned out to be a very expensive product.
However, the statistics also reveal that millions of customers have now successfully claimed back their mis-sold PPI premiums. Of the 4.5 million people who have made claims, 2.5 million have been able to get the settlement of the claim. The statistics also reveal the fact that the biggest scandal is also turning out to be an economy stimulus package as it is not only helping people get money but is also generating a lot of new jobs. It is known from statistics that around 6000 extra people have been hired by UK banks and financial institutions to handle the PPI claims.
When the story first broke, back in 2009, it was estimated that payouts for mis-sold PPI could reach £4.5billion. However, 5yrs on, that sum has more than quadrupled with major UK banks now having set aside over £22billion, and with claims for compensation still incoming that figure could rise further still!
To find out more about mis-sold PPI and how to recover your money, visit http://www.oraclelegal.co.uk/ppi-claims