Money Archives - Page 15 of 32

Bankruptcy Option off the Table for Many Struggling with Debt

August 23, 2012 by Jana 2 Comments

This is a guest post from my friend, Suzanne Cramer, blogger and social media specialist for Care One Credit.

Times are tough with the economic conditions in the state they are in. Today many Americans looking for the debt relief bankruptcy can provide in their time of need; job loss, foreclosure or a medical emergency are losing this often thought of as a “last resort” option.

According to recent research conducted by the National Bureau of Economic Research, the average cost to file for Chapter 7 bankruptcy protection, the most common form of consumer bankruptcy, has hit $1,500 nationally. That figure prices many struggling to find debt relief out of using Bankruptcy as an option for getting rid of debt. . This year it is estimated that anywhere between 200,000 and one million consumers who would have otherwise filed will be unable to afford to file.

The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act

The BAPCPA act was put in place in an effort to decrease bankruptcy filings by placing road blocks in the way of consumers looking to get rid of their debt in one fell swoop. This left those with low incomes unable to afford to file and pay for all of the bankruptcy associated costs reported by the American Bankruptcy Institute which include:

The $300 court filing fee
Debtor education course / mandatory pre-bankruptcy credit counseling (about$85)
Attorney fees

Fight the Fees

If bankruptcy is the only way out for you, and you can’t afford to file; there are several things you can try to reduce the associated costs:

Filing fee waiver. If your income is less than 150% of poverty guidelines, you can apply for a fee waiver in Chapter 7.
Seek pro bono help. Keep in mind, your income must be below the poverty guidelines–$1,862 a month if you are single and below $3,842 for a family of four, to be eligible. If you earn too much, you’re out of luck.
Do NOT consider representing yourself. Bankruptcy law is complicated. If you make a mistake, it could cause your case to be dismissed, harming your credit just as though you completed the bankruptcy process.

Filing a Chapter 7 Bankruptcy

There’s a lot of red tape, making filling for bankruptcy a seemingly tedious task. It is important to know what you signed on for.

You must attend a credit counseling session from a government-approved credit counseling agency within 6 months before filing your bankruptcy petition.
Before your bankruptcy proceedings are discharged, you must complete an approved debtor education course.
To file a Chapter 7 bankruptcy you must pass a means test to prove you lack the financial resources to pay back your debts.
If you file Chapter 7, you maintain responsibility for your secured debt (such as a home mortgage or car loan) if it is considered exempt.
You should keep in mind that not all unsecured debt is dischargeable. For example, Chapter 7 does not eliminate:

Government student loans
Taxes
Fraudulently created debts
Alimony
Child support

Bankruptcy Alternatives

You may think that there is no alternative to bankruptcy, but you just can’t afford to file–there are other options. Credit assistance programs may be able to help you. You’ve probably seen ads on television or in your yellow pages for debt or credit counseling. Credit Assistance organizations manage your unsecured debt through a debt management program to help you avoid bankruptcy. See the U.S. Federal Trade Commission article Fiscal Fitness: Choosing a Credit Counselor.

Working through Debt Management programs, creditors may offer benefits that can help you avoid bankruptcy for your unsecured debts, such as:

Lowered monthly payments
Reduced or eliminated interest rates
Eliminated late fees

So before you join the ranks of millions of Americans trying to file for bankruptcy consider the alternatives first, you just might find a way that works for you.

Lessons learned on my most recent trip to New York

August 22, 2012 by Jana 11 Comments

As I’ve mentioned on numerous occasions, I am originally from New York. Since I only live a few hours away, and the majority of my family still lives up there, I visit as frequently as my budget will allow (or when there’s a birthday party, family get-together, my grandmother is visiting from Florida or any other time I’m pretty much required to be there). This past weekend was no exception. I went to visit for two reasons: one, one of my surrogate little brothers (I have 3…long story) got married and two, my oldest friend is moving to Portland, Oregon and I wanted to say goodbye.

I managed to survive the trip, financially speaking, due to the generosity of others and some creative budgeting. And this trip was yet another reminder of why I haven’t moved back up there. It is so freaking expensive. But that’s not news, and it’s not really worth lamenting about. However…

There were some other lessons I learned this weekend, and many of them revolve around money. Some, not so much, but totally worth sharing:

Google Maps is an asshole. The wedding was at a country club in a town that I had been to once. In high school. On a bus. And I am directionally challenged. Given that, I really relied on the directions that Google Maps provided. Unfortunately, Google Maps doesn’t care that I don’t know where I am or how to find work-arounds when it sends me down a street that ends abruptly with a “Do Not Enter” sign. Thanks. That helps so much. The worst part was that, just yonder, beyond the sign, was the freaking road I needed. It took 20 more minutes, driving in 9 circles with a drunk passenger and a “fuck you, Google Maps” before I found my way out of the neighborhood I was stuck in. And then I went the wrong way trying to find the highway I needed. So that was fun.
EZ Pass? Also an asshole. With all the travelling we do to New York and to my in-laws’, EZ Pass just made more sense. And, for a while, it was wonderful. Now? Not so much. The EZ Pass lines (the non-express ones) sometimes take just as long as the cash lines and honestly, EZ pass isn’t so easy when the transponder doesn’t work. For some reason that I can’t explain, we can use it just fine in every state except the one where we live. That’s right. Whenever we try to use it on a toll in Delaware, it doesn’t register, meaning we get a lovely little violation in the mail. But what’s also fantastic is that it does remember to take out money when the balance is low, and it conveniently takes out more money that it’s supposed to (or I expect it to). Thanks for the warnings.
New York never ceases to be weird. When we were in the city on Sunday, we expected to see some things that were a bit out of the ordinary. Especially knowing we were in Greenwich Village and Central Park (and travelled by subway). However, we were totally not prepared for witnessing a real, live action Quidditch match nor were we prepared for the photo shoot of the man dressed up as an old time court jester, pretending to be dead. On the ground. In Central Park. It was a bit disconcerting but truly awesome at the same time. Oh, here’s proof (although my camera work is a bit shoddy):
The Nassau County PD will, in fact, leave you alone if they see someone throwing up, out of the car door, on the side of the Southern State Parkway. I won’t go into specific details about how I came to learn this so as not to embarrass the affected party, but let’s just say that someone I know will eat a little bit more and drink a little bit less at the next wedding she attends. And I swear on all that is holy that the person in question is not me. I was driving, remember?
It doesn’t matter what time of day you leave Long Island. There will always be traffic. In every direction you attempt to go. Long ago, I gave up on ever getting through Brooklyn in under two hours (yes, let’s add the Belt Parkway to the asshole list). One day, I drove a different way, through the Bronx and miraculously, it not only took less time but it was overall less expensive because even with the extra money spent on the New Jersey Turnpike, it still costs less than the Verrazano Bridge. Super, right? Now, not so much. It may cheaper but the whole quicker thing? A big, fat, giant lie. Especially on a night with a Yankee game. At home. Another reason I hate the Yankees.
Begging at a rest stop on the New Jersey Turnpike will probably not be the most lucrative. Due to the fact that my child has to use the bathroom at the most inconvenient times, we always make sure to stop at least once for her to do whatever it is she thinks she doesn’t need to do. Our stops are typically uneventful and fast. This time, we were approached by a very…intoxicated young lady, who approached our car rather brazenly, and came complete with a giant Starbucks coffee and sob story about how her debit card was broken, she was 117 miles from home and no cash and could we please help her out. Um, no. Please move on to another car. I really wanted to ask her how stupid she thought we were. But I don’t think she would have understood the question.

Please, don’t be jealous of my weekend. I know it’s hard not to be jealous of the tons of insanity I encountered but try. If you want some of your own, I promise to share. I have way more than I can handle at this point.

I have to go back up to visit in another month. I really don’t think I can handle another weekend like the one I just had. Unless I get invited to play in that Quidditch match. That could be fun.

Problem dog strikes again

August 3, 2012 by Jana 7 Comments

Remember when I wrote about my dog and his penchant for eating toys and how that affinity cost me close to $1000 and a trip to the emergency room at midnight the night before I had to leave for a trip to my parents’ house?

Dobie with Tina — He doesn’t look like my problem child. But looks? Are deceiving.

Well guess what? Problem dog strikes again.

For the past few days, Dobie has just not been himself. He’s been lethargic, incessantly licking one of his paws, heavily panting even when lying on an air conditioning vent (yes, I know that sounds weird. Our vents are on the floor. Oh, and yes, a dog lying on a vent is weird, too), hasn’t been eating, can’t walk up and down the stairs (or jump on the couch or the bed), and had accidents in the house. None of this is normal for him.

At first I thought it might be his arthritis acting up or the fact that his fur is matted from swimming (oh, right. He swims in my in-laws’ pool. You remember them? The ones with the corn in the dishwasher?) and he was just uncomfortable. But that wasn’t it. Because even when he’s uncomfortable, he still eats (mainly because he’s a fat ass who eats everything that’s not nailed down and a few things that are). He didn’t turn down treats or peanut butter (the true test) but he didn’t eat his kibble for 2 ½ days. Then came the crowning achievement. He woke me up at 3 AM because he had to throw up (I think I’m the only person whose dog gives a warning that he’s going to barf. It’s his barf signal! I know. I’m hilarious).

When he throws up, something is really, really wrong.

As soon as I knew they would answer the phone, I called the vet’s office to make an appointment. Of course, the appointment interfered with his grooming appointment which I had to cancel anyway and now the poor thing is still uncomfortable and smelly. Wait…where was I going? Right. The vet. Anyway, they were able to fit us in mid-afternoon while Barkley, my other dog, was off at his grooming appointment. Which I was grateful for because I really wanted to find out what was wrong with this dog before it got any worse (after what happened to the dog of someone I’m related to but not allowed to mention on this site, I’m extremely paranoid anytime one of my dogs looks like he’s in pain). As a result, I was not going to complain about the awfulness of a 3:15 PM appointment.

So, after our playdate at the park, we went to the vet’s office. Again.

The vet’s office is always interesting. Besides the inevitable wait, I always love to watch the other people in the waiting room interact with their pets. I also love to watch how people interact with the other owners’ pets. Today was especially interesting. There was a really cute, sweet pit bull in the waiting room. This gentleman and his daughter walked in and they basically snatched their dog up and refused to put him (her?) down until the pit bull left. It was kind of appalling, actually. I got a little angry and wanted to say something but I had my daughter with me and I didn’t want to say anything I wouldn’t want her repeating so I kept my mouth shut.

Sorry, I lost my place again.

Right. The vet’s office for the appointment to diagnose my dog. After waiting over ½ hour, they finally took us into the exam room where I proceeded to inform the vet tech of Dobie’s myriad of problems. She looked kind of puzzled at the symptoms because this, of course, was the time Dobie decided to act like himself again (I believe he just didn’t want to be poked and prodded so he was lying to the doctor). Since I’m human and can talk, she took my word over his and then talked to the vet about his issues. The vet then examined him and decided that running some test would be a good idea (of course it is) and $218.50 later, I learned that my dog possibly has a urinary tract infection.

Yup. That’s the diagnosis. Possible UTI. Not actual UTI. Possible.

Glad I spent that kind of money for a possibility.

3 things that made me unhappy (and 2 that didn’t)

July 30, 2012 by Jana 7 Comments

happy sad — Image found on http://cultivating-consciousness.blogspot.com

You know how the theme song to the Facts of Life starts with “You take the good, you take the bad”? It seems completely cliché, but sometimes it’s completely true.

Like this past weekend.

I try not to do spending recaps or anything like that because quite frankly, I’m not a fan of them and my spending is so boring most of your eyes would glaze over and you’d think “why in the world is she telling us this? Does she really have nothing else to say?” To which I’d reply, “well, most likely”. But in this case, I want to share with you not so much what I spent money on but some financial things that happened that made me both happy and angry.

Let’s start with the angry. There are three of them.

Comcast. As many of you already know, my BFF Andrea from So Over This (formerly So Over Debt) loathes Comcast for a host of reasons that are completely reasonable. I’ve never had the service problems that she has but we do battle them at least 3 times a year over their price increases that seemingly come out of nowhere. My husband had to walk into the battle arena on Saturday, just before we left for a birthday party because we received a “courtesy call” that our DVR and HD rates were going up by $16. According to this lovely company, we had a promotional rate (we did not) and it was set to expire, causing our bill to increase. Now, given the fact that we had just reupped our subscription to HBO (which we had canceled 2 years ago due to price), we now need to cancel that in order to offset this new, unplanned and unexpected increase (since DVR and HD are more important to us). Having all of those puts us substantially over the limit we have for our bundled Comcast service and I’m pissed.

Boo to you, Comcast. I think you suck.

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Do you need an intervention for shopping?

July 26, 2012 by Jana 2 Comments

This is a guest post from my friend Suzanne Cramer, social media specialist with Care One Credit and writer for A Straight Talk on Debt.

Do you go shopping with your girlfriend on a Saturday afternoon, charge up your credit cards, ditch the shoeboxes and bags in the trash, and when asked by your partner, “Where did those shoes come from?” say, “Oh I’ve had these for years.” If so you might need a shopping intervention.

Compulsive shopping is done by many of us as a form of therapy; I know for me it was. I would have a bad day at work, a fight with my husband, or a fall out with a friend—shopping made me feel better.

In addition to a “shopping high” I would also become obsessed with getting good deals; even if it meant I had to charge it and then face the interest charges making the deal, well no longer a deal.

If you’re obsessed with shopping and have the credit card debt to prove it, learn where to go for help, as well as tips to help you resist the urge to shop.

Recognizing that you are indeed a compulsive shopper is step one. Step two involves addressing the problem head on, perhaps with the assistance of a close friend or family member, or support group.

Stop Compulsive Shopping Today

Now that you’ve realized how out of control your shopping habits may be, there are several things you can do to prevent incurring more debt. Try these tactics for nipping compulsive shopping in the bud.

Leave the wallet behind. Out of site out of mind. Without your wallet full of store cards the mall becomes a place to get the kids out of the house, get some exercise and maybe some ideas for purchases you want to save up for. Carry a few dollars in cash to treat yourself to a coffee or ice cream cone for the kids.

Use lists when shopping. Grocery stores can be just as dangerous as the mall, especially when you are hungry or bring the kids along. In an effort to keep your grocery bill in check come prepared with a list and a budget—be sure to stick to both!

Avoid the online shopping cart. I was guilty of compulsively shopping online as well. The temptation to browse all the sites of ads you receive emails for is sometimes too great. Unsubscribe to the emails, and only shop online for items not available in stores, or for gifts. Instead of online shopping out of boredom, consider taking a walk or reading a book to fill the void.

Cash Only. By living a “cash only” lifestyle you can drastically reduce your spending. Somehow our brains make it harder for us to part with the cash than to whipping out the plastic. Use credit cards as a last resort, emergency only panic button to push in the event of a true emergency.

Get help and support. If you find you can’t overcome the shopping urge alone, there are plenty of organizations that are ready to help. Try a support group like Debtors Anonymous or visit Shopaholic No More, which claims there are more than 18 million shopaholics in America. So if you’re among them, clearly, you’re not alone.

Finally, if you are in serious credit card debt consider talking with a debt relief provider. They can help you develop a plan to conquer your credit card debt, lend support and give you the tools you need to be financially successful.

Are you a compulsive or “reformed” compulsive shopper? How did you stop your bad habits?