Oct
26
Why Get Rich Quick Schemes Don’t Work
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Every once in a while you hear a heartwarming story about how someone went from rags to riches overnight, such as the kid who won the Powerball earlier this year.
Stories like these get everyone’s imaginations going, but the simple truth is, get rich quick schemes don’t work for most people. Unfortunately, everyone thinks they really are that lucky, so scammers have a pretty easy time taking advantage of people by capitalizing off of their supposed get rich quick schemes.
For instance, a pretty common one is the work-from-home scam. Scammer tells you that you can make thousands each week working from home, if you just pay them X amount of money to get you started, learn their secrets, whatever.
Turns out the real secret is pretending you have something to sell, something most people want very much: the opportunity to make more money.
Sure, some people get rich overnight — but usually when it happens, it is completely by chance, such as in Neal Wanless’s case. Most people have to get rich the good old-fashioned way: by working for a living and being smart with their money. But I’m telling you, even if you work your butt off for your fortune, and amass it over many years, you will appreciate the hard work it takes to earn that university diploma. That’s why it’s so common to get a university diploma frame to put it in — it’s natural for people to feel proud of what they’ve worked so hard to earn!
So next time you see one of those get rich quick schemes online, remind yourself that you’re doing it the tried and true way — by giving yourself the tools to be successful.
Jul
29
How to Pay for College
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College is possibly one of the most challenging things in your life to pay for, right up there with your wedding, your first car, and the down payment on your first house. It can be especially difficult if you don’t have much help, and are having to work full time while you’re in school in order to pay for it.
However, there are ways to make paying for college easier. Here are a few tips.
- Ask for help. If you know certain family members are likely to give a generous monetary gift on graduation, suggest that they give the gift now instead, to help you pay for tuition. I know the graduation gifts are nice, but sometimes it’s better to have the money now and make paying for school easier on you. Plus, they’ll probably still get you something small for graduation, such as a nice university diploma frame.
- Take advantage of the education tax deductions on your taxes. Any tuition that you paid yourself (i.e., wasn’t reimbursed by your employer) is deductible on your taxes. Take full advantage of every tax credit that applies to you can help you save some money on your income taxes.
- Get help in gift form. Anytime family or anyone else gives you money to help pay for school, be sure to ask for it in a lump sum as a monetary gift. You can get a certain amount of money from each person as a gift each year without having to declare it as income — in 2009 this limit is $12,000 from each person. If you get the money as a gift and then pay for college yourself, you will still be able to take advantage of the education tax deduction when you file your taxes.
- Apply for all scholarships and grants you think you might have a chance at getting. There are many scholarships and grants that go unclaimed every year, so be sure to apply for everything you can find that seems suited for you.
Paying for college is still difficult no matter how many of these types of tricks you employ, but you can at least make it much easier by doing some of these things!
Mar
15
The Best Way To Survive A Bankruptcy
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Bankruptcy is a very serious last resort. The best way to avoid the long term ramifications of filing for bankruptcy is simple: Don’t file for bankruptcy! Of course for some people it is already too late. Bankruptcy is always a last resort, but that is all that it ever will be. The best thing you can do is follow some simple tips and get yourself out of the hole before it is too late.
First of all, just stop using your credit cards. Is it that hard? No, it is not. The idea here is that you should not be spending money that you don’t have. Isn’t that kind of what got you in this position in the first place? Cut those little demons in half. Or better yet, send those plastic devils right through a paper shredder!
Once you have gotten rid of those pesky credit cards, formulate a budget. No, it is not that hard to do. Start by putting a pencil to paper and writing down your monthly expenses that you can’t get rid of. Write down everything such as your rent or mortgage, electric bill, car payment, water bill, groceries, cable bill and everything else you can come up with. Then go back and add the incidentals like clothing, car repairs or maintenance, gas and anything else you can come up with. You see, it is not that hard to get a handle on things. And that could keep you from having to file bankruptcy.
Feb
19
Two Things To Do After Your BK Is Discharged
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The best thing that you can do to recover from a bankruptcy is to never file for bankruptcy in the first place. Bankruptcy should never be considered and easy way out. Instead, it should be absolutely the last possible option for anyone. With the recent changes in federal laws, declaring bankruptcy is more difficult now than it ever has been before in an effort to deter bankruptcy abuse. However, sometimes there is no other option than to file. So once your bankruptcy has been discharged, what can you do to get your life, and credit back to normal?
There are a couple of basic and easy things that you should do. The first thing you want to do is open a checking and savings account. You need to have some money in the bank. Also, if your cash is not in your wallet or purse, you will be less apt to spend it. Future lenders will need proof that you can now handle your money in a responsible way. A checking and savings account can prove just that. Once you have had these accounts for a short time, get a credit card if you can. Don’t go crazy with it though! Use it a few times each month, and then pay off the balance in full. Do not run it up! These two simple tips will get your credit score to start rising, and before you know it you will be back up on your feet.
May
2
Most credit experts agree that the worst possible credit entry on your Credit Report is a Bankruptcy. Whether you have filed a Chapter 13 (13 is a pay back plan with just some debts eliminated) or Chapter 7 (everything is eliminated except for a few essentials), it demonstrates a complete failure in managing your credit.
Regardless of why you filed, this entry stays on your credit report for 7-10 years. Everyone has their story, and sometimes circumstances go beyond anyone’s ability to recover from insurmountable debts. A good example is when a family member suffers a catastrophic illness and the medical bills are way beyond any health insurance benefits.
But there are ways to recover fairly quickly from this type of situation. It takes a little dedication and effort but in as little as 18 months you can have your credit score back in the high 600 range. Your credit score can range from 300-800+, and if your score is below 600 for any reason it’s time to make some changes.
The reality is that no one is better at improving your credit score than you. It doesn’t take any special talent or skills. You do need to face the reality that you are at a disadvantage and it’s time to start taking corrective action. Put the bad experience behind you and move forward. Easy to say, sometimes hard to do. So if you need some counseling help, a good place to look is your local community organizations or perhaps even your church. There are people that are willing to help you get over this problem, and don’t have to pay for it.
A low credit score can cost you money, job opportunities, and credit denial. Bad things happen to good people and so many creditors may consider more than just your credit score. But your credit score still plays a big part in most decisions made on whether to grant you credit and at what interest rate.
Many high paying jobs ($100,000+) or jobs that you have a key role in handling money will run a credit check on any applicant. You can understand why, sometimes the temptation is to great and people have misused their positions for financial gain. Employers have to protect themselves so this policy is very understandable.
The lower your credit score, the higher interest rate you will be offered due to the higher risk you represent. Interest rates can go as high as 28%, that’s almost a third of the amount you borrow. But you can still find a relatively good rate, maybe not the lowest (prime rate +1) but within a few points.
The tough part is finding some creditor to give you a second chance. And you also have to be very careful, as there are many companies that will take advantage of your situation. The credit industry is a business just like any other. There are lenders out there that will give you credit, but the catch is finding credit at a reasonable cost.
Start out slow, and make some small purchases at stores who will grant you a small amount of credit at a reasonable rate. Electronic, appliance, and furniture stores are usually willing to give you a chance to start building good credit. A good example in Texas is Conns (http://www.conns.com) Appliance Stores. They have a good program and charge very reasonable rates.
Stay within your budget and make a down payment of half. Then try and pay off the note within 6 months or as early as you can. Do the same thing at a furniture or appliance store. You can have 3-4 good entries in your credit file within 9 months.
Get a small limit (or even a deposit based credit card - most will convert in 6 months or less if you abide by all the requirements) credit card and only charge very small amounts. Pay off your balance in full each month, and pay it off early if possible.
Make sure that you pay on time or early on any credit account that you retained after your Bankruptcy filing, such as a house or car. This will show creditors that you are now managing your credit and will improve your credit score.
In fact if you do all of these things above and follow the basic instructions you will get back up to the 680 score and above. I have seen it happen time and time again. This is not brain surgery and anyone can recovery from a bankruptcy filing in a comparatively short time.
It’s also a good idea to monitor your credit reports during your recovery period. Everyone should check his or her credit report each year. It’s now Free and won’t take much time as long as you stay on top of it. You can request one credit bureau at a time every 4 months and have a good idea of what’s been entered in the past 12 months.
Don’t pay for something that you can get for FREE. Go to the Federal Trade Commission’s site here to get the full details of getting your free credit reports: http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm
With a little determination and effort, you can recovery and increase your credit score even after filing a bankruptcy.