Personal Finance, Loans & Insurance

If you are looking for a way to pull yourself out of debt, you may want to consider the debt solutions that are available to you. You first need to realize the choices you have to help you pay off those bills and get your life back to normal. There are various solutions to choose from and, many times, your choice of a solution will depend on the severity of your debt.

Debt Consolidation
Debt consolidation is one of various debt solutions that can help you get back in control of your debt. While consolidating your debt will not lower your debt in any way, it will help you pay off the debt faster and allow you to get a better interest rate on your debt as well.

There are many different ways to consolidate your debt, including credit cards with low interest rates, home equity loans and debt consolidation loans. Whatever way you choose to consolidate your debt, it will help stabilize your finances and may keep you from having to go with more drastic solutions.

Liquidating Assets
Another way to get rid of your debt may mean converting into cash any assets that you may have to avoid collection distress or bankruptcy. If you have property that you can sell, including extra cars, snowmobiles, or household items, you can sell them and use the money to pay off your high interest debts. While this may seem like one of the drastic debt solutions, selling your valuable property may be the best way to keep from going bankrupt in the future. With the strain of mounting debt it is difficult to avoid filing for bankruptcy.

Bankruptcy
This should always be your final solution to your debt problems. Many times, bankruptcy may be the only solution that you can come to. It is important that you remember that bankruptcy will be around to plague your credit report for up to seven years in the future. If this is the only way to deal with the debt that you have, it can help you and allow you to start again to rebuild your credit file.

While there are various solutions available to help you if you owe a great amount of debt, the best solution is to learn how to avoid getting into debt. Take on debt you can easily pay back, and avoid debt that may strain your monthly income. Saving for high ticket items like home appliances, cars, and recreational equipment can also mean paying cash for such items.

Paying cash for lifestyle and high ticket items means you wouldn’t need a debt solution. Limiting your debt and paying off your debt monthly can help you keep away from nasty debt collectors who can make your life miserable. On the other hand, if you take measures early on to avoid debt and to deal with it before it gets out of hand, you can avoid having to sell your assets.

A court order that seizes assets from the defendant to pay off a debt is known as Garnishment. One form of garnishment is automatic withholding of the debtor’s wages. When a creditor fails to satisfy the debt taken, the court can issue a garnishment against him. When the creditor petitions the court to send a portion of its pay to satisfy the debt then this step is taken.

The garnishment law differs from state to state and varies in details also. Generally, the TVA is required to take over 25% of an employee’s disposable earnings or assets, thereafter sending that amount to court. The pay of an employee can be under garnishment until the complete of the debt has been collected.

This situation arises when we fail to pay taxes, skip out on child support or overlook some bills. Under these circumstances the state government or the creditor can seize our wages as well. This process is known as Wage garnishment. Most garnishment requires court orders and employers are supposed to notify the creditor before any step is taken. But garnishment is the last option for which a government goes for. It is taken up only after all other options have exhausted.

One should never ignore IRS because due to ignorance there are chances of increase in garnishment, as they know our work place, living place and even the bank account. The loans or the help provided by the government are of many types such as student loan for education, business loan, child support, and etc. To collect the loans back, IRS is not alone but the state government, private creditors, or even an ex-spouse demanding the alimony can also demand garnishment of our pay. To claim the garnishment, only different branches of the government do not need to take court orders, other than every other agency needs to obtain a court order to claim the garnishment.

Losing the income is not easy but there are some limits for garnishment. Title III of the Consumer Credit Protection Act caps the amount of wages that can be taken from an employee. In this manner, the person is also left with some part of the income as well as the creditor is also paid up. This also prevents the creditor to speed up the debt recovery procedure and harass the debtor.

The level of garnishment is based on the disposable earnings of the employee. This amount comes after deducting the legal deductions of federal state and local taxes, social security, unemployment, insurance and state employee retirement system. Things that do not come in the head of voluntary deductions are union dues, health and life insurance, charity, purchase of savings bonds and payment for payroll advance. After taking all the preventative measures, the disposable income amount is calculated the maximum amount that can be garnished in any pay period should not exceed more than 25% of the employees’ disposable earning.

The garnishment law allows up to 50% of the employees’ disposable income to be garnished, if he supports the wife and a child. The restrictions on garnishment do not apply in case of court orders of bankruptcy and outstanding debts of federal or state taxes. When the federal law differs from the state wage garnishment law, the smaller garnishment amount must be followed.

Care should be taken to stay from the evil of garnishment. In some cases this situation occurs when a letter is received form the IRS department 20 days before the garnishment date. That time if the person goes to the IRS and explains the problem and repayment schedule or apologize and seeks more time for repayment then the problem at hand can be solved. If the creditor also has a problem he also needs to go to the court and seek an order for garnishment. Thus if the reason explained by the debtor is genuine then the department chalks out a repayment plan. But if the second chance of the repayment is also defaulted then further garnishment proceedings and called for.

A court order that seizes assets from the defendant to pay off a debt is known as Garnishment. One form of garnishment is automatic withholding of the debtor’s wages. When a creditor fails to satisfy the debt taken, the court can issue a garnishment against him. When the creditor petitions the court to send a portion of its pay to satisfy the debt then this step is taken.

The garnishment law differs from state to state and varies in details also. Generally, the TVA is required to take over 25% of an employee’s disposable earnings or assets, thereafter sending that amount to court. The pay of an employee can be under garnishment until the complete of the debt has been collected.

This situation arises when we fail to pay taxes, skip out on child support or overlook some bills. Under these circumstances the state government or the creditor can seize our wages as well. This process is known as Wage garnishment. Most garnishment requires court orders and employers are supposed to notify the creditor before any step is taken. But garnishment is the last option for which a government goes for. It is taken up only after all other options have exhausted.

One should never ignore IRS because due to ignorance there are chances of increase in garnishment, as they know our work place, living place and even the bank account. The loans or the help provided by the government are of many types such as student loan for education, business loan, child support, and etc. To collect the loans back, IRS is not alone but the state government, private creditors, or even an ex-spouse demanding the alimony can also demand garnishment of our pay. To claim the garnishment, only different branches of the government do not need to take court orders, other than every other agency needs to obtain a court order to claim the garnishment.

Losing the income is not easy but there are some limits for garnishment. Title III of the Consumer Credit Protection Act caps the amount of wages that can be taken from an employee. In this manner, the person is also left with some part of the income as well as the creditor is also paid up. This also prevents the creditor to speed up the debt recovery procedure and harass the debtor.

The level of garnishment is based on the disposable earnings of the employee. This amount comes after deducting the legal deductions of federal state and local taxes, social security, unemployment, insurance and state employee retirement system. Things that do not come in the head of voluntary deductions are union dues, health and life insurance, charity, purchase of savings bonds and payment for payroll advance. After taking all the preventative measures, the disposable income amount is calculated the maximum amount that can be garnished in any pay period should not exceed more than 25% of the employees’ disposable earning.

The garnishment law allows up to 50% of the employees’ disposable income to be garnished, if he supports the wife and a child. The restrictions on garnishment do not apply in case of court orders of bankruptcy and outstanding debts of federal or state taxes. When the federal law differs from the state wage garnishment law, the smaller garnishment amount must be followed.

Care should be taken to stay from the evil of garnishment. In some cases this situation occurs when a letter is received form the IRS department 20 days before the garnishment date. That time if the person goes to the IRS and explains the problem and repayment schedule or apologize and seeks more time for repayment then the problem at hand can be solved. If the creditor also has a problem he also needs to go to the court and seek an order for garnishment. Thus if the reason explained by the debtor is genuine then the department chalks out a repayment plan. But if the second chance of the repayment is also defaulted then further garnishment proceedings and called for.

In just a few short weeks, President Bush’s Bankruptcy Abuse Prevention and Consumer Protection Act will take effect. In a nutshell, the new law, which goes into effect on October 17, 2005, makes it more difficult to cancel your debts under Chapter 7 Bankruptcy protection. Instead, consumers will find themselves having to file for Chapter 13 Bankruptcy protection and paying back their creditors over a five year period.

Here’s a look into some of the major changes that will affect consumers choosing to file for bankruptcy after the new law goes into effect -

Qualifying – Chapter 7 or Chapter 13?

To be able to qualify for protection under Chapter 7 bankruptcy, consumers will have to face a means test. The means test determines if your household falls above or below the median income in the state where you reside. Those whose total is greater than the state median income will not qualify to cancel debts under Chapter 7 protection and will alternately have to file under Chapter 13 and pay back your creditors.

The major intent of bankruptcy reform is to require people, who can afford to make some payments towards their debt, to make these payments, while still affording them the right to have the rest of their debt erased.

The amount you have to pay back under Chapter 13 protection will be greater because instead of a 3-year pay back period, that time frame is now extended to five years – to ensure your creditors get paid.

Credit Counseling

Anyone filing for bankruptcy under the new law will be required to go through mandatory credit counseling. Be careful before choosing a credit counselor as this field is filled with people looking to line their pockets while emptying yours.

To find a trustworthy counselor, check to see if there are any complaints against them or their organization filed with your local Better Business Bureau. Secondly, find out if they are certified by the National Foundation of Credit Counselors or the Association of Independent Consumer Credit Counseling Agencies. Finally, find out if they have not-for-profit status. Personally I recommend Consumer Credit Counseling Services as they meet all three of the above criteria. They can be reached at 1-800-888-2227 and can connect you with a local office.

The Cost Factor

Filing for Chapter 7 protection under the old laws normally cost under $1,000. You should expect to pay more under the new laws as filing fees have been increased by $60. Additionally, your attorney will be required to double check all your financial information which will take more of his or her time. Also there is greater liability imposed on the lawyer which may cause their liability insurance to increase, which gets passed on to their clients in the form of higher fees. Under the new law, many are expecting fees to increase between 25-50%.

Why Were the Laws Changed?

The bottom line is that major commercial creditors lobbied hard for reform. Companies like CitiBank, MBNA, and other credit card issuers actively contributed proposed amendments along with generous financial support to reforming the bankruptcy laws – and in their favor, according to many consumer protection groups.

People quite often make decisions impulsively, without considering the consequences. This may work okay in some situations but it could come back to bite you when dealing with financial topics like investments, financing, refinancing, insurance and mortgages. To be a wise investor we should take some time to consider and know more about the place where we are going to deposit our money.

A very wide array of banks exist. Just to name a few that you’ll probably recognize; Citizen Bank, Well Fargo Bank, Region Bank and Scotia Banks.

Here are some guidelines to consider before choosing a bank:

1. Location: While choosing a bank, you must consider the location. If you wish to access your bank account regularly then you should choose a bank located near to your business place or home.

2. Availability of ATM Machines: Always choose a bank with a large number of ATM machines close by. Also, regarding the ATM’s you should ensure they can provide the following services: a) Do the ATM machines allow you to make deposits? b) Do they give printout statements of transaction made by you? Most do nowadays but some countries may not. c) Can you order more checques through the ATM?

3. Telephone Banking: If you are a very busy person and can not go to the bank during banking hours then you should choose a bank, which can provide you with telephone banking services. With telephone banking you can make transactions and check on your account anytime of the day. With the help of telephone banking you can do the following operations:
a) Transfer money from your account to pay utility bills.
b) Cancel recent transactions.
c) Order another cheque book.
d) Sign up for additional services like loans, credit cards or lines of credit. 5. Internet Banking: Internet banking allows you to perform the same services as telephone banking. But here inquiries and transactions can be done via any internet connection through the banks website. If they have one! So do ask as it’s a great convenience when traveling.

If you are searching a bank for small business, here are some guidelines to help you while choosing a bank. 1. Again, consider the location and make sure the bank understands the nature of your business to meet your requirements. For example, if your run a movie rental business that’s open till midnight you may want to do late night or very early morning deposits. So in this case ensure the bank has a night deposit box. 2. Find out the transaction fees and don’t assume the fees are similar to personal accounts. Banks generally charge businesses way more due to the increase in transactions. 3. Find out the rates for small business loans or lines of credit and the turn around time to secure funding. You may find you’re self in a situation where you need an extra few thousand or more to secure better pricing on bulk orders of supplies or something else.

The above list is in now way exhaustive but a place to begin if you’re just now looking or considering a switch.

Wealth is the Far East has grown tremendously in the past decade. Except for some kingdoms and states, many started the 20th century under occupation and colonization was at its height then. Southeast Asia and Indochina were under European and American rule. After the World War II, the Asian nations started to grow and expand. Japan which was bombarded with two nuclear bombs was able to host the Olympics and its industrialization rate became the envy of many European countries. The newly industrialized nations Singapore, South Korea and Taiwan became more prominent and more powerful in the global stage beginning on the start of fourth quarter of the previous century. Now, China and Southeast Asia are turning into economic powerhouses. Because of the new wealth in Asia, pharmaceutical companies are trying to establish their stations and powerhouses in the continent.
These huge pharmaceutical markets started selling anti-impotency pills like Cialis and Viagra to the Asian markets around the year 2000. At first, the blue diamond pills and the brown pear shaped pills were doing well in the richer segment of the Asian populations, but the price seem too expensive for many ordinary Asians. The huge pharmaceutical companies failed to realize that Asians are generally frugal in nature and no one would burn his one week salary to buy Cialis from the local drug store.
Thanks to the internet, Asians can now buy Viagra from reputable online drugstores. Many online pharmacies have set up their networks in Asia and are using website templates with Multilanguage and multicurrency systems. One online pharmacy for example, sells the blue-diamond pill for only $1.77 per piece (90 pieces: $159). Impotent men from Jakarta, Kuala Lumpur, Bangkok, Manila, Shanghai, Seoul, and Tokyo could definitely afford the price. This is the reason why the market is growing in Asia.

Nearly 40 percent of women aged 30 to 55 are worried about spending their retirement years at or near the poverty level because they cannot adequately save for retirement, according to a recent survey.

The National Women’s 2005 Retirement Survey found that women of color are most concerned about their ability to save for retirement. While 53 percent of women of color report that they expect to live at or near the poverty level in their retirement years, just 33 percent of all men expect to face the same dilemma.

The survey was commissioned by the Heinz Family Philanthropies under the direction of Teresa Heinz, founder of the Women’s Institute for a Secure Retirement and chairman of the Heinz Family Philanthropies.

Here are some of the survey’s other key findings.

* Fifty-two percent of women expect to continue to work once they reach retirement age, including 57 percent of Hispanic women.

* Fifty-four percent of women have little to no money left to save for retirement once they pay their bills, rising to 62 percent among Hispanic and African-American women.

* When asked, “At the present time, do you feel that you are saving enough money for your retirement?” 62 percent of the women surveyed answered “no.” Among women of color, 74 percent of African-American and Hispanic women said they are not saving enough.

* When asked about barriers to saving for retirement, African-American women are more than twice as likely as white women to cite “financial responsibility for adult children or grandchildren” as a reason for not saving for retirement. Of the African-American women supporting their adult children or grandchildren, 63 percent report spending between $100 and $1,000 on them each month.

The Heinz Family Philanthropies commissioned this survey with the Christie Foundation, the Barbara Lee Foundation and others to identify the critical retirement savings issues facing women and to use the data to develop ways to help women secure their financial futures.

The survey polled 1,700 adults and has a margin of error of plus or minus 2.4 percentage points.

Most experts on the subject believe that the Social Security system will be bankrupt in about 15 years. However, some new studies have offered a ray of hope. They seem to indicate that the assumption that the boomer generation will retire at 65 or 67 and sit back to collect their social security checks is incorrect.

They believe a sufficient percentage – some estimates are as high as 80% – will continue to work in some capacity or another, relieving much of the pressure on the system.

This is probably the only ray of hope for many who have visited financial planners or bought personal finance software to see how much they need for retirement. These usually show you need a million or more dollars to retire with your current lifestyle. But again, they don’t take continuing earnings into account.

Many in the baby boomer generation plan to retire at around 65, but then start a second career, doing something they enjoy. Most don’t want to continue on in their present jobs or move to low paying work at fast food restaurants or supermarkets.

Rather they would rather make their accumulated knowledge work and, if possible, also give something back to society at the same time.

Health experts say this trend will be beneficial in that by staying involved, those past retirement age will stay healthier and will be happier with their life.

So it seems that several trends are converging. Those in their 60’s, 70’s and early eighties are healthier than ever. Because of their increased longevity and the shortfall in their retirement savings, they need to continue to earn. And many companies who once looked on older workers with distain, now seem to realize the value they can contribute to the company and to society in general.

There is speculation that colleges and universities may allow retirees to earn fast track degrees, taking into account their prior education and work experience. Also some states are already loosening license requirements for teachers to allow those with degrees in fields other than education to become teachers with little if any further training.

Another way to continue to earn in retirement is by making wise investment choices now.

Buy rental properties, learn how to manage money effectively or start your own business now in your part time so that you have something up and running by the time you retire.

The internet has opened up new ways to earn, be it drop shipping, affiliate marketing or selling goods on Bay.

If you always wanted to be an author or if you can write software programs, it is simple to self publish and sell electronic goods through services such as Clickbank.

Or you could just do something you’ve always wanted, like baking breading or making shoes. If you’re good at whatever you choose, you should have little trouble finding a clientele.

But if you are depressed because you have to continue to work after 65, don’t. You’ll have a lot of company and you’ll will also be healthier and happier for it.

For more advice on retirement planning and personal finance

When you and your family are considering a budget, you may be missing the values that are held within rebates and coupons. In general, because of the time it takes to actually clip these things out of your local newspaper or a magazine, people tend to over look these big money savers all too often. Coupons should be an important part of your family budget. The money you could save using coupons could easily add money to other areas of your budget, like family entertainment.

For decades, people have been clipping and using coupons of a variety of sorts. It is something that is done by grabbing your favorite pair of scissors and scanning through your magazines or newspapers, to find coupons that will help your entire family saved money on your favorite products. Many people commonly skip over coupons because the savings tend to “look” small and insignificant. However insignificant they may look, once these savings add up they could equal a good sum of money saved EACH time you go to the grocery store.

Using and clipping coupons or rebate forms have been known to be an art. People often plan their entire budgets around the coupons or rebates that they have and save a good deal of money in the process. It is impossible to account for coupons during the actual creation of the monthly budget, because you never really know how many coupons you will be able to use and just what the savings will be. Many people choose to stash away the money saved from coupons into a special place to use for a special treat for the entire family. You will be able to enjoy treating your family to a special night out or something of the like, without having to place an impact on the family’s budget.

Stick close to a few rules when you decide to use coupons, this will allow you to get the greatest value from them. When you are using a coupon, try to find the item on sale. This will help you reduce the price in a dramatic way, for items that you would generally purchase at regular sale price. In addition, some stores have what is called “Double Coupon Day”; these actually double the amount of savings that is listed upon the coupon. Giving you DOUBLE the money to put away for that special treat and what could be better.

Keep Your Banking Information Safe
by Tomas Cullin

It would seem that the computer is becoming a bigger and bigger part of our lives each and every day. There’s good reason for that perception… it’s true. One specific area that is becoming incredibly popular is online banking. Customers love it because it is very convenient and a great time saver. The banks love it because it automates a great many functions for them and cuts down on their overhead.

The number one concern of anyone that deals with online banking should be security. Putting your personal information over the Internet can be risky, there is no denying that. Fraud and identity theft have become huge problems in the modern age. There are any number of hackers and thieves out there in cyberspace just waiting to prey on innocent people. They lurk in the deep spaces of the Internet just waiting for some of your private information that they can steal.

Fortunately for us, the financial institutions of the world are very aware of this problem and are working aggressively to combat it. There was a time when a bank’s chief security concern was whether they would be robbed or not. I think we’ve all seen the old movies about Bonnie & Clyde, John Dillinger and the like…to say nothing of the daring train robberies of the wild west. Now banks face a new and much deadlier challenge than ever before, and instead of wearing a mask and using a gun, the bad guys are now invisible and use keyboards. They can access information from the safety of their homes and apartments. And even at the local coffee shop through wireless connections.

Identity theft has now become so prevalent that thieves are rifling through garbage to attain any information that they can use to steal from their unsuspecting victims. With this said, there are some simple, common sense approaches that will go along way to securing personal bank information.

1. Do not share your passwords with anyone and make sure if you write it done put it in a safe place where only you know where it is.

2. Keep important documents locked in a safe or safety deposit box.

3. Shred documents that you no longer need and use a cross cut shredder.

4. If you bank online, make sure your bank is using a secure, encrypted site (It’s OK to ask what security features they employ). Make sure they use https in the address and you should see the lock symbol in the lower right hand corner of your browser.

5. When using an ATM make sure no one can see the codes you enter.

These are a just a few of the things that can be done to keep banking information secure and to avoid possible crimes against you. While many of these suggestions seem to be glaringly obvious, all to many times they are taken for granted or just plain ignored. It is at these times when the criminals are at their best. Individuals that grow careless and complacent are exactly what criminals look for. Don’t be counted as one of the careless!

You may copy this article and place it on your own website, as long as you do not change it and include this resource box including the live link to the Credit Repair Advice site.