consolidation

5 Strategies that Can Help Prevent You from Going into Bankruptcy

Written by adminJuly 18, 2018

If you feel you’re at the end of your rope financially, you might think the only option you have is to declare bankruptcy.

It’s a scary option for many Americans. Dave Ramsey, the finance expert most of us have heard on the radio, says bankruptcy is on the list of some of the worst life-altering events we can face, right up there with divorce, the loss of a loved one, and getting sick.

Every year, close to a million Americas file for bankruptcy for a variety of reasons, like debt that got out of control or an unforeseen event that the individual wasn’t prepared for. Medical bills, for example, are often one of the major problems Americans face that often lead to bankruptcy.

Here’s the thing about bankruptcy: it’s not the end of the world. Life will be tough for a while, as your credit will have a huge black mark on it, but there’s no reason to fear it. There are strategies you can try to prevent bankruptcy from happening and ease the burden you currently feel.

Let’s look at five things you can try:

1) Debt Settlement/Consolidation Negotiation

Here’s one of the best things you can do to get rid of your debt. Your debtors and collectors want their money. They’re often willing to negotiate with you if it means they get paid back what is owed.

If you have more than one debt, you can consolidate those debts into one payment with lower interest. You can enter a debt settlement with your creditors that ultimately lowers what you owe and can reduce the repayment schedule to something more manageable.

Ultimately, these debts allow you to take charge of your debts and Financial Helpers is here to help you do just that. We love to help people get out of debt and have successfully negotiated with debtors to consolidate debt, lower payments, and even reduce the overall amount due.

To find out what your options are and to see how we can help, please give us a call at the number below.

Call Now 1-844-332-2079

2) Sell Property

This is a difficult step, but it can help you prevent bankruptcy. Bankruptcy doesn’t just clear away your debts as some people believe. All your property and belongings go up for review. The trustee in charge will decide what they want to liquidate to settle your claim.

Either way, it’s time to cut back on assets. If you can avoid bankruptcy by parting with stuff, do it. It’s time to make better financial decisions. Get rid of that second car. Sell the valuable antiques. An appraiser can help you figure out the value of your belongings. With bankruptcy, you’ll have much less control over what they decide to take to settle the debt.

3) Don’t Be Afraid to Ask for Help

Sometimes in life, we have to swallow our pride and ask for help. A sibling, parent, and close friends will want to help you get out from underneath this burden. There are other options as well, such as starting a GoFundMe and sharing it on social media. This is no time to let fear get in the way of something that can help you get closer to financial freedom.

Just be honest. People who love you will want to help. Most of us go though difficult struggles and loved ones are always there to help each other endure them.

4) Restructure Your Mortgage

One of your biggest expenditures is your mortgage. By restructuring it, you can save a lot of money you can then apply to the rest of your debt. It also makes your monthly payments cheaper, so if you’re at risk for having your home foreclosed upon, this might be a great way to prevent that from happening.

You can also choose to refinance your mortgage, which means lower payments, but extended out longer. This will save you a bit of money on the front end. Once you pay your debts down, you can start making higher payments on the mortgage later to get back to where you were.

5) Make Sacrifices

This is the toughest option of all, but you’re going to have to do it if you want to survive without going it bankruptcy. Take a good look at your budget and see what you can get rid of. Again, do you need that second car? Can you carpool or take public transportation? Can you get rides from a coworker for a while?

Instead of eating out a lot, save money by cooking your own meals. Lower your cable package or cut cable altogether. Consider not spending money on a family vacation and instead, apply it towards your debt. If you can save money, do it! It’s a short-term sacrifice for big time results.

Written by adminFebruary 15, 2018

Student Loan Consolidation

Ever since President Trump took office back in 2016, his mission has been to cut the budget down as low as it can go. With that, we’ve seen a lot of (often beloved) programs face reductions or end up on the chopping block itself. We all remember the worry PBS had over losing federal funding, as well as crucial services like Meals on Wheels.

Now, it appears as if student loan programs are next.

According to President Trump’s proposal, he hopes to drastically reduce loan repayment plans for students who qualify based on their income, increase the government’s pressure on students not paying their loads, and cut the Public Service Loan Forgiveness Program altogether.

This is troublesome for the 5.7 million students who hoped to graduate with help from the government to pay off some of the loan debt that threatens to crush them without the programs. As college becomes increasingly expensive, students are looking for more options to help them enter the work force not burdened by tens of thousands of dollars’ worth of debt.

The new plan won’t just cut programs, but will also drastically reduce the number of repayment plans. Before, you could choose between 4 plans that considers your income, but the bill hopes to cut down the options to just one, capping the payments at 12.5 percent.

It’s Not All Bad News

There are aspects of the bill that are appealing, including the idea to expand Pell Grants to cover other training programs that tend to be short-term. These are the types of jobs that will always be in need, so the Trump Administration felt it was important to extend grant access to those students as well.

The plan will also offer loan forgiveness for undergraduate students in 15 years, verses the current plan that waits 20. Those five years can be a lifesaver for anyone still struggling almost two decades later. The higher-end degrees will have to wait 30 years for loan forgiveness to kick in for them.

While the plan wouldn’t kick into gear until July 1st, 2019, as of right now, it’s just a plan and will most likely undergo a transformation as it makes its way to lawmakers. Who knows what the final bill would look like, but it’s certainly worth paying attention to, especially if you were looking forward to receiving the help.

Written by adminJanuary 4, 2018

Credit & Debt Settlement

The New Year is finally here!

As the holidays wind down to a close and the earth completes yet another rotation around the sun, we tend to get sentimental about starting the new year right. It’s easy to reflect and see the things we want to improve upon while correcting the mistakes we did make.

Weight loss is usually at the top of all resolutions, either from the holiday gravy train that wouldn’t quit, or it’s the few pounds you quietly put on throughout the year. It’s not difficult to see the problem, but fixing it something else altogether.

The same goes for deciding to get your finances in order and obtain TRUE financial freedom!

Is such a thing possible? YES! Here are ten ways for you to find financial freedom in 2018:

1) Determine where you’re at right now.

The simple fact is, you can’t figure out how to get to where you want to be if you don’t know where you’re currently at. Sit down at the table (with your spouse, if applicable) and go over everything. What are you worth? Are you in debt? Are you paying off your mortgage? How long until the car is paid off?

Go through your assets, subtract liabilities, and find out your overall net worth. It can be difficult to see any issues with your budget when you’re not proactive about seeing it all listed together. If you see you’re spending more than you’re bringing in and relying on credit to get by, then you have some important decisions to make.

But you won’t get there until you figure out this step first.

2) Exchange credit for debit

Unless you’re working on building better credit, your credit cards are only holding you back. We get into the cycle of buying everything on credit and paying MORE for it later with interest and fees. Is the convenience really worth spending more in the long run? Try to spend only what you can afford to right now, rather than borrowing.

3) Give yourself an allowance.

Even though step #2 says to use your debit card rather than your credit card, you can take things a step forward by using cash more often than cards. Determine what you need ahead of time for regular expenses, pull out the cash, and put the rest into savings. It’s easier to spend, spend, spend when you have a card, but can’t track what you have left like you do with cash.

4) Cut spending!

I’m sure you knew this was coming, but it’s true! Right now, in this modern technological age, we spend a lot of money on gadgets and plans. They are all convenient, but do you really need them? Can you survive on Netflix and Hulu while cutting the cord? That’s potentially $100 per month savings right there.

Look at your phone bill. Do you need unlimited everything, or can you survive perfectly fine with a cheaper plan? Can you plan to eat in more often and save more throughout the year? These are all conscience decisions you can make to drastically improve your bottom line. The only way to lose weight is to eat less. The same lesson applies here.

5) Plan your goals.

You probably have the same big goals I do. It’s one thing to have a dream in the back of your mind, and another to actually sit down and do the math. You can’t hope your goals into existence. No, you must plan for it and scrape together everything you can. It will be a journey getting from Point A to Point B, but it should be an enjoyable one.

Where do you see yourself next year? In 5 years? In 10? Think of all your short-term AND long-term goals and write them down.

6) Strategize your plan of attack.

The great thing about writing down your expenses and figuring out what to cut is you can actually see your plan coming into fruition. If you know you can cut “X” amount of dollars from your budget and stick that into a savings account, you’ll have an approximate idea on where those savings will take you.

You may not save a ton, and that’s perfectly fine! It’s always good to have a bit of extra saved in the bank, which brings us to the next point:

7) Have an emergency fund.

It was said recently that most people don’t even have access to $400 if they needed it for an emergency. That’s a sad statistic! We’re so busy living above our means and charging everything to credit (and paying more for it later) that we don’t actually think about our safety. It’s a good idea to have at least $1,000 in savings for an emergency.

8) Check your taxes.

I know in the previous points, where I say you should look at cutting your spending habits, you didn’t think I was going to suggest hiring a tax accountant, but it might very well be worth it in the long run! Let’s face it, most of us are clueless and do our best to file as accurately as possible. Because we’re not experts, so we could be missing out on huge deductions we had no idea were possible!

9) Start paying off small debts.

Think of debt as the amount of weight you need to lose. You might step on the scale and see a large number, causing you to panic. How can you possibly lose all this weight?! The answer is simple, one pound at a time. The problem is, we think about ALL the weight we need to lose rather than the short-term progress and results we’ll experience.

Start cutting into your smaller debts and get those out of the way first. It will build your confidence and allow you to see yourself slowly gaining control of your finances. It’s a cool feeling to free yourself out from under its worrisome burden!

10) Keep your plan with you at all times.

Once you get all your numbers organized, write up your goals, and make a plan of action, turn your notes into canon. Officially recognize your plan as the way to move forward and stick with it. It will be difficult. There will be unforeseen events that pop up. Do not fret! The plan is solid and it will get you through!

Written by adminOctober 26, 2017

Credit & Debt Settlement

Most Americans are interested in ways they can save money every month to pay off debt more quickly or put savings aside for their futures. Here are just ten ways you can save a little each month.

1. Keep a Budget

The first step in saving money is tracking how you spend it. When you start keeping a budget, you can begin to see where you’re spending too much. You may find you could cut back on eating out, start clipping coupons or skip that morning coffee habit to save some serious cash.

2. Consolidate Your Debt and Student Loans

The next step in saving is to track all your debts. Once you have a handle on how much you owe and what your interest rates are, it may make sense to consolidate your debts at a lower interest rate. This saves you money in the long term on interest payments and cuts down your minimum monthly payments.

3. Shop Around for Auto Insurance

Auto insurance companies will raise your rates every year. It’s a good idea to switch providers regularly to negotiate for lower rates. Also consider paying quarterly or annually to save money in the long run.

4. Decrease Your Monthly Car Expenses

Now that you’re tracking your budget, you may find you’re spending too much money on your car – either in monthly repairs, gas or your monthly payment. Consider making a change to your auto expenses by buying a different car that won’t cost as much in those categories or driving less to save on your gas bill.

5. Cut Out High-Interest Credit Cards

After you’ve tallied all your debts and interest rates, you may find some of your credit cards come with high interest fees. On top of that, your minimum payment covers mostly interest, which means your principal balance could take a very long time to pay off. Consider moving your credit card balance to a provider who will offer you a lower interest rate.

6. Enter Into a Credit Repair Program

If your credit is in bad shape, you may want to look into applying to be in a credit repair program. These programs allow you to get lower interest rates on your debt so you can work on rebuilding your credit score. Overall, you could save money and be in a better place financially to make important purchases down the road.

7. Lower Your Health Insurance Costs

Health insurance costs can be costly expenses. Talk to your HR representative at work (even if you only work part-time) or shop around online if you have insurance from the Health Insurance Marketplace. There may be a tax incentive or benefit you’re missing out on that could save you money.

8. Implement a 30-Day Rule

The biggest way to save money each month is to not buy things you don’t need. If you’re trying to get control over a shopping habit, try a 30-day rule, where you don’t buy anything until you’ve wanted it for 30 days. Keep a list of purchases you’d like to make and evaluate them over the next month to see if they’re things you really need.

9. Consolidate Your Student Loans

If you’re one of millions of college graduates who feel overwhelmed by your student loan debt, consider consolidating your loans. Through this process, you can merge multiple balances into a single balance to lower your monthly payment, interest rate, or both. It’s a great option for graduates who are struggling to make a dent in their overall loan debt.

Stick to a Grocery List

Rather than buying without a list and when you’re hungry, plan your weekly meals and stick closely to your list to avoid overspending at the grocery store. Also try sticking to the perimeter of the grocery; produce, dairy and proteins are both healthier and more cost-effective than processed foods in the center aisles.

If you’re looking to trim your budget, consider trying one, two or all ten of these simple money-saving hacks.

Written by adminOctober 16, 2017

Saving

When you’re already living paycheck to paycheck, it can seem impossible to save money. The usual sites offering financial advice aren’t too useful either with their suggestions for better stock investments and squirreling away hundreds of bucks a month. Well, we’re here to help with a few of our favorite tips you can actually use. They won’t make you rich, but they’ll help you stretch your dollar a little bit further and give you some breathing room.

1. Student Loan Consolidation

If you have multiple student loans from different years, reach out to your lender or one that specializes in refinancing and consolidate them into one. You’ll usually get a lower interest rate that will allow you to pay down debt faster.

2. Credit Card Debt Consolidation

Look around for a new credit card with a balance transfer promotion of 0 percent or very low interest for a set amount of time. Transfer all or part of a balance from your highest APR card and pay it off. Just be sure to transfer only what you know you can pay off before the promotional period ends.

3. Get a Card with a Lower APR

Get a credit card with the lowest APR possible. Whatever you do, don’t get behind on it; that can trigger late fees and a penalty APR that could even affect your card rates with other lenders.

4. Repair Your Credit

The better shape your credit report is in, the better credit card terms you can expect. This means lower rates, higher credit limits and sometimes extra perks like cash back. If your credit could use some help, look into a credit repair program to help get your credit back on track.

5. Reduce Health Insurance Costs

Generally speaking, the healthier you are, the less expensive you are to insure. Doing things like stopping smoking and drinking and losing weight make you a better bet for insurance companies. Make sure your progress is noted in your annual physical and then contact your insurer for a review.

6. Reduce Car Insurance Costs

The safer you drive, the better your insurance rates will be. If it’s been a while since your last accident or traffic violation, contact your insurance provider to negotiate a better rate.

7. Refinance Your Car Loan

If you’re still making payments on a car you bought when your credit was worse, contact your lender to ask about refinancing your loan at a lower APR. If they won’t play ball, threaten to refinance through another bank. If that doesn’t work, take your business elsewhere.

8. Buy a New Car

Let’s say you’re not actually making car payments. Instead, you own a beater you’re dragging into the shop every week. It sounds counterintuitive, but you might look into buying a brand-new car. Not only will you have a much more reliable ride, but new cars will stay under warranty for a number of years, meaning less money you have to shell out for repairs and routine maintenance.

9. Get a Prepaid Phone

Traditional cell phone contracts often include all sorts of unnecessary extras you never use, so why are you paying for them? Prepaid service is just as reliable and often much cheaper than a contract. You do have to pay for the phone upfront instead of getting it free with a new contract, but you’ll save money in the long run by only paying for the services you actually need and use.

10. Cut the Cable

You’re paying a premium for all those cable channels that never show anything you want to see. Well, it’s time to break up with your cable company. You can keep it for internet service, but cut out the TV subscription. Sign up for online streaming platforms like Netflix, Hulu, Amazon Prime and others to watch what you want at a fraction of the cost of a monthly TV cable bill.

Written by adminOctober 16, 2017

Saving

Getting into debt seems like it is something that is easy to do. When you try to get out of debt, that is when the real work starts. Here are 10 ideas to help you reduce your expenses when it is time to take control of your finances.

1. Consolidate your debt into a lower monthly payment

Consolidating your debts into a lower monthly payment can save you money. Instead of having to try to pay multiple payments, everything that you include in the consolidated payment will be paid with one convenient monthly payment. In most cases, this can help you score a lower interest rate than what you would pay on individual bills.

2. Refinance your car loan

A refinanced car loan starts out at a lower amount than a new car loan. This can automatically lower your monthly payments, especially if you are able to extend the life of the loan some.

3. Lower your auto insurance payment

Take a look at the car insurance payment you are making. You might be able to increase the deductible or decrease the coverage to lower the payments. Shopping around for car insurance might also be beneficial.

4. Consolidate your student loans into a lower monthly payment

If you have multiple student loans, you can likely get them all transferred into one monthly payment. Some federal repayment plans are based on your income so this might help you out if you are at a lower income rate.

5. Enter into a credit repair program

A credit repair program is a good idea if you have already missed some payments. These programs can often help you to get a lower interest rate, especially if your debt is at a high-interest rate, such as 25 percent or higher. You should make sure that you are working with is a legitimate company by checking with the Better Business Bureau and other agencies.

6. Lower your health insurance costs

If you don’t have any health issues, lowering your health insurance costs can help you to save money each month. Get a policy that has a higher deductible or one that has only basic services covered. This isn’t a good idea if you have health issues since you might end up with uncontrollable medical debt.

7. Buy a new car

Car repair bills can get expensive. If you are spending more on repair bills than you care to admit, it might be time to get a new car. This might seem more expensive at first; however, you might find that a car payment is less expensive. Plus, you will have a more reliable way to get to work and run errands.

8. Get a payday loan advance

A payday loan should be one of the last things that you consider if you need to come up with money fast. These loans often come at a higher interest rate, so carefully consider your other options. Of course, if you have an emergency, this might be a feasible option for quick cash if you know you’ll be able to repay it quickly.

9. Get a new credit card with a lower interest rate

A new credit card might seem counterproductive when you are trying to reduce your monthly bills, but it really isn’t. Many new credit cards have a 0-percent interest rate during the introductory period or for balance transfers. This fact alone might be able to save you some serious cash each month.

10. Reduce your employment costs

They say you have to spend money to make money, but you shouldn’t have high employment costs when you are working for someone else. Reducing the costs of your job can entail bringing your lunch instead of eating out and hitting up second-hand clothing stores for things to wear. If you need transportation to work, see if a co-worker will get you instead of shelling out money for transportation costs.