6 Inexpensive Ways to Celebrate the Holidays

This time of year, the urge to feel happy and help others be happy by giving gifts can feel overwhelming. Yet there are many things you can do to celebrate the different holidays and they do not have to cost a lot of money. 1. The Home Tree. Many years ago when my children were growing up, money was in short supply. We could not afford to buy a Christmas tree, so we made one. I used construction paper (glued together) to make the body of the tree. Then I printed some ornament shapes I found online and the kids cut them out and colored them. We zigzagged our lights from the previous year across the tree and – VOILA! A...

Posted on Dec 11, 2011

How Does Your Spending Compare?

Check out this graph put together by The Economist It is a great picture of where we are focusing our money now – more on the goods and services we truly do need and less on the extras such as; dining out, new cars and even tobacco and alcohol. Below is the Economist’s graph.

Posted on Oct 25, 2011

Medical Debt Tip 6. Keep your retirement money

Using your retirement savings now can leave you unprepared for your future One of the Internal Revenue Service’s acceptable reasons for dipping into your 401k, 403b, IRA or Roth IRA is to pay medical bills. This is usually called a hardship withdrawal and, depending on your employer’s retirement plan, you can simply withdraw the money (and pay a tax penalty), or you can take a loan against your retirement funds. While paying off the debt with your retirement money can feel good, it comes at a high price. The money you place in your retirement account is for your future. In addition, that money typically increases in value as long as you have it in your retirement accounts. The interest...

Posted on Oct 23, 2011

Medical Debt Tip 5. Don't rob Peter to pay Paul

You aren’t robbing Peter – You’re robbing yourself! In these difficult times, you may not have enough cash to pay all of your regular bills each month.  So you pay “urgent” ones, like the water bill and the mortgage, while you let the “less urgent” bills wait. The truth is, getting behind on any bill can bring a huge price tag – both in mental stress and in real dollars.  You aren’t robbing “Peter.”  You’re robbing yourself, because in the end, you usually pay high interest rates and late fees, and you may even damage your credit record.  It simply isn’t worth it.  If you fail to pay your credit card bills, for example, you could trigger all kinds of fees and...

Posted on Oct 19, 2011

Active Duty? Are you receiving all your SCRA benefits?

I recently heard about a creditor who is providing 0% interest rates as a benefit to active duty servicemembers who are having difficulty paying their credit card bill. In order to qualify for the additional benefits, the servicemember has to contact their creditor to let them know they are experiencing a financial hardship and they also have to qualify for assistance under the Servicemember’s Civil Relief Act of 2003 (SCRA). We have listed an overview of the SCRA below, as well as an outline of how to qualify for coverage and what benefits are available. For more information on the program above, or to learn more about benefits available under the SCRA contact a certified credit counselor today. Call 888-864-8659 or...

Posted on Oct 16, 2011

Tip 4. Pay Medical Bills on time

If you wait too long, your lack of payment may go to a collection agency and be reported to a credit bureau. Because many medical expenses are an unplanned, surprise expense, it can be difficult to determine how to pay the bill. This is especially true if your budget is already tight. Unfortunately, this causes many people to avoid opening the bills and to set them aside with the intent to deal with them later. Medical providers want to help people pay their bills. They are in the business of helping people and they, just like any business, want you to be happy with their service. They also need people to pay their bills in order to cover the costs that insurance...

Posted on Oct 13, 2011

Tip 2. Make sure you understand your bill

You may get two or three statements before your real bill arrives. There are many reasons why medical bills are confusing. First, you may receive several bills from different providers for one medical visit. This means you’ll have one from the doctor, one from the hospital, one from the laboratory, one from the anesthesiologist – you get the picture. In addition, you may receive a few letters or statements from the hospital before you get the actual bill. Typically, hospitals will send a statement that includes the total charges, the estimated insurance payment, and your Estimated Payment Responsibility. This statement arrives shortly after you receive treatment.  This is NOT a bill.  It is the hospital’s best estimate of how much...

Posted on Oct 05, 2011

See a Penney - Pick it Up

It seems like one of the hardest things for us to do is save money. In the classes I teach I often hear things like: “Save? How can I save when I don’t have any money?” “I’d like to save, but there isn’t anything left after I pay bills, get gas and buy groceries.” “I do save, but then I end up getting into the money for something.” Of course, it is true that you have to have money in order to save money. But, there are things we can do to make it more likely that we are able to put a little bit aside and keep it there. Start with a small goal. This sounds crazy, but I have had people start good,...

Posted on May 22, 2011

Check Your Fourth Credit Report!

Along with your free credit report from each of the three major credit bureaus, you are also entitled to a free copy of your ChexSystems report every year. The ChexSystems, Inc. network is comprised of member Financial Institutions (banks and credit unions) that regularly contribute information on mishandled checking and savings accounts to a central location. ChexSystems shares this information among member institutions to help them assess the risk of opening new accounts. To receive your free copy use one of the following methods: ◦       Request it online – www.consumerdebit.com ◦       Through the mail –          ChexSystems, Inc. Attn: Consumer Relations 7805 Hudson Road, Suite 100 Woodbury, MC 55125 ◦      Or via fax – (602) 659-2197

Posted on Apr 11, 2011

Need a Plan for Paying Taxes? Read on

I know you’ve all heard it – you have until April 18th to file you taxes this year. Great news if you are not having trouble rounding up the funds to pay the tax bill. But what about those who do owe and cannot pay? What are the options? Here are three choices offered up by the IRS. Additional Time to Pay Based on your circumstances, you may be granted a short additional time to pay your tax in full. A brief additional amount of time to pay can be requested through the Online Payment Agreement application at http:www.IRS.gov or by calling 800-829-1040. Taxpayers who request and are granted an additional 60 to 120 days to pay the tax in full...

Posted on Apr 07, 2011