#if you are juggling medical debt or living expenses on credit cards you are not making a living wage

[3liza]

here's the cost of living breakdown for Alabama, one of the least expensive states in the country to live it. annual income requirement to achieve "barely not struggling" (that's what "living wage" means, it means "how much money you have to earn to not be struggling financially") by the standards of MIT are the bottom row.

the website SmartAsset applied the 50/30/20 budget rule to this data from MIT to calculate how much it would take for someone to live comfortably (ie, above bare minimum "living wage") in each state and concluded it takes a minimum of 78k for a single adult in West Virginia, the cheapest state in the country.

standard disclaimer that I have personally never made anything near a living wage in my life, much less a comfortable wage, and am deeply in medical debt and so disabled I can't stand for more than a few hours a day. i just think it's important that other Americans are fully aware of just how poor they really are, and what "wealth" actually means in vast regions of the country. inflation and housing price increases have been so rapid, and the percentage of young adults managing their own households has dropped so significantly in the past twenty years (these things are related), that 90% of this website userbase is just completely unaware of what anything costs, and this isn't good for your financial literacy or ability to take care of yourselves.

if you disagree with these numbers please email MIT directly, I did not gather or compile this data. and cannot respond to your feedback about it.

[fincrifblogs]

Crisis Management: Using Personal Loans to Navigate Financial Emergencies

Life is unpredictable. From unexpected medical expenses to sudden job loss, financial emergencies can arise at any moment. When faced with such challenges, having a solid plan in place can make all the difference. One option that many people overlook is the use of personal loans as a tool for navigating these tough times. In this blog, we’ll explore how personal loans can provide relief during financial crises and offer tips for using them wisely.

Understanding Personal Loans

A personal loan is a type of unsecured loan that allows borrowers to access funds for various purposes. Unlike a mortgage or car loan, which are tied to specific assets, personal loans provide flexibility. You can use them for medical bills, home repairs, debt consolidation, or even to cover living expenses during a transitional period.

Why Consider a Personal Loan in a Crisis?

Quick Access to Funds: In emergencies, time is often of the essence. Personal loans can be processed quickly, sometimes within a few days, giving you the cash you need to address urgent issues.

Lower Interest Rates: Compared to credit cards, personal loans typically offer lower interest rates. This can save you money in the long run, especially if you need to borrow a substantial amount.

Fixed Monthly Payments: Personal loans usually come with fixed interest rates, which means your monthly payments remain consistent. This predictability can make budgeting easier during a challenging financial period.

Flexibility in Usage: You can use personal loans for a wide range of purposes. Whether you need to cover medical bills, pay for car repairs, or manage unexpected expenses, the funds can be used according to your specific needs.

When to Consider a Personal Loan

While personal loans can be a helpful tool, it’s essential to know when to consider them. Here are some scenarios where a personal loan may be beneficial:

1. Medical Emergencies

Medical bills can be overwhelming, especially if you��re faced with an unexpected hospital visit or a major procedure. Personal loans can help you cover these costs without derailing your financial stability.

2. Job Loss or Income Reduction

If you find yourself suddenly unemployed or facing a reduction in hours, a personal loan can help bridge the gap. Use it to cover essential expenses like rent, utilities, and groceries while you search for new employment.

3. Home Repairs

Home emergencies—like a broken furnace or a leaking roof—can happen at any time. A personal loan can provide the necessary funds to address these repairs quickly, preventing further damage and costs.

4. Debt Consolidation

If you’re juggling multiple high-interest debts, using a personal loan to consolidate them into a single loan with a lower interest rate can help simplify your payments and reduce financial stress.

Tips for Using Personal Loans Wisely

If you decide that a personal loan is the right solution for your financial emergency, here are some tips to ensure you use it wisely:

1. Assess Your Financial Situation

Before taking out a personal loan, take a close look at your finances. Determine how much you need to borrow and create a budget to ensure you can manage the monthly payments. This assessment will help you avoid borrowing more than necessary.

2. Shop Around for the Best Rates

Not all personal loans are created equal. Interest rates, terms, and fees can vary significantly among lenders. Take the time to shop around and compare offers to find the best deal for your situation.

3. Read the Fine Print

Before signing any loan agreement, carefully read the terms and conditions. Look for any hidden fees or penalties, such as prepayment penalties, that could impact your financial situation later on.

4. Use the Funds Wisely

Once you’ve secured the loan, use the funds for their intended purpose. Avoid the temptation to spend the money on non-essential items. Staying disciplined will help you manage your financial crisis more effectively.

5. Create a Repayment Plan

Before you take on a personal loan, outline a repayment plan. Factor in your monthly budget and ensure you can comfortably make the payments without stretching your finances too thin.

Alternatives to Personal Loans

While personal loans can be beneficial, they aren’t the only option. Consider these alternatives:

Emergency Savings: If you have an emergency fund, this is the ideal time to use it. Aim to save at least three to six months’ worth of living expenses for future emergencies.

Credit Cards: While generally not ideal due to high-interest rates, credit cards can be a short-term solution if you can pay off the balance quickly.

Family and Friends: If possible, consider borrowing from family or friends. Just be sure to discuss repayment terms to avoid straining relationships.

Conclusion

Financial emergencies can be daunting, but personal loans can serve as a valuable tool to help you navigate these challenges. With quick access to funds, lower interest rates, and flexibility in usage, personal loans can provide the relief you need during tough times. However, it’s crucial to approach them wisely—assess your financial situation, shop around for the best rates, and create a solid repayment plan.

By taking a thoughtful approach to personal loans, you can turn a financial crisis into a manageable situation, helping you get back on track and regain your peace of mind. Remember, it’s not just about surviving the crisis; it’s about emerging from it stronger and more resilient.

[freedomdebtreliefinfo]

Transform Your Finances: The Impact of Freedom Debt Relief on Your Debt Journey

In today’s fast-paced world, financial challenges can emerge unexpectedly, leaving many individuals grappling with the burden of debt. Unsecured debts, such as credit card balances, medical bills, and personal loans, can quickly spiral out of control, causing stress and anxiety. If you find yourself in this situation, Freedom Debt Relief (FDR) may provide a pathway to financial freedom. This blog delves into the significant impact of Freedom Debt Relief on your debt journey, illustrating how their services can help transform your finances. For more info about debtrelief reviews click here.

Understanding Your Debt Journey

Every individual’s debt journey is unique, often marked by various factors like unexpected medical expenses, job loss, or simply living beyond one’s means. Recognizing the need for assistance is the first step toward regaining control over your financial situation. For many, traditional repayment methods, like budgeting or credit counseling, may not be enough. This is where Freedom Debt Relief comes into play, offering tailored solutions designed to help you tackle your unsecured debt effectively.

The Role of Freedom Debt Relief

Founded in 2002, Freedom Debt Relief specializes in debt settlement. This process involves negotiating with creditors to reduce the total amount of debt owed, allowing clients to settle their accounts for less than what they originally owed. Unlike other debt relief methods, such as bankruptcy or consolidation, FDR focuses specifically on settling debts, which can lead to quicker and more significant financial relief.

How Freedom Debt Relief Can Impact Your Debt Journey

Immediate Relief from Financial Stress One of the most significant impacts of working with Freedom Debt Relief is the immediate relief from the stress associated with mounting debt. Once you enroll in their program, you stop making payments to your creditors and instead deposit funds into a dedicated settlement account. This shift allows you to take a step back, alleviating the constant pressure of juggling multiple payments while focusing on your long-term financial goals.

Expert Negotiation for Debt Reduction

Freedom Debt Relief employs a team of experienced negotiators who work diligently on your behalf to secure favorable settlements with your creditors. Their expertise in debt negotiation can lead to substantial reductions in your overall debt load. Clients often find that they can settle their debts for significantly less than what was originally owed, allowing for a faster route to financial freedom.

Customized Financial Plans

At Freedom Debt Relief, the approach is not one-size-fits-all. During your initial consultation, a certified debt consultant will assess your financial situation and create a personalized debt relief plan tailored to your unique circumstances. This individualized strategy ensures that you have a clear roadmap to follow, making it easier to visualize your path toward becoming debt-free.

Education and Empowerment

Beyond just settling debts, Freedom Debt Relief prioritizes education and empowerment. The company provides resources and tools to help clients understand their financial situations better and develop effective money management skills. This educational component ensures that, once you overcome your current debt challenges, you are equipped to make informed decisions and avoid similar pitfalls in the future.

Long-Term Financial Stability

By working with Freedom Debt Relief, many clients experience a significant transformation in their finances. Once debts are settled, individuals often find themselves in a better position to build their savings, invest in future goals, and improve their credit scores. This long-term financial stability is a critical aspect of the debt journey, fostering a sense of security and peace of mind.

Conclusion

Embarking on a debt journey can be overwhelming, but Freedom Debt Relief offers a beacon of hope for those struggling with unsecured debt. By providing personalized solutions, expert negotiation, and valuable educational resources, FDR helps clients transform their finances and regain control over their financial futures. If you’re ready to take the first step toward financial freedom, consider reaching out to Freedom Debt Relief. With their guidance, you can navigate your debt journey, achieve lasting relief, and ultimately transform your financial well-being for years to come.

[top-financial-tips]

Top Financial Tips and the Importance of Paystubs for Money Management

Managing personal finances can be challenging, especially when you’re juggling multiple financial responsibilities. Whether you're saving for a home, paying off debt, or just trying to make sure you’re living within your means, financial planning is key. One often overlooked tool that can help with money management is your paystub. In this article, we’ll explore some practical financial tips and explain why understanding your paystub is crucial to your financial success.

1. Create a Budget Based on Your Paystub

One of the first steps in managing your finances is creating a budget. A budget allows you to allocate your income toward necessary expenses, savings, and discretionary spending. Your paystub is a valuable resource for this because it gives you a clear snapshot of your earnings, deductions, and net pay.

By reviewing your paystub:

You can see your gross income (before deductions) and plan accordingly.

You’ll be aware of any taxes, insurance, and retirement contributions deducted from your pay.

Your net income (take-home pay) helps you understand how much money you actually have available for spending.

2. Monitor Your Deductions

Your paystub contains detailed information about deductions, which can include taxes, health insurance premiums, retirement contributions, and other withholdings. It's essential to monitor these deductions regularly to ensure that there are no discrepancies and that you're aware of where your money is going.

Here are a few things to look out for:

Tax withholding: Make sure the right amount is being deducted based on your filing status.

Benefits deductions: Confirm that your health, dental, or other insurance premiums are correct.

Retirement contributions: Maximize your 401(k) or other retirement savings options if available.

Understanding these deductions can help you adjust your financial strategy and ensure you’re not overpaying.

3. Plan for Taxes with Your Paystub

Your paystub provides insight into how much tax you’ve paid so far in the year. Keeping track of this information can help you prepare for tax season. If you're under-withholding, you may owe money at tax time. On the other hand, over-withholding means you’re giving the government an interest-free loan. Adjust your tax withholdings using your paystub to better align with your financial goals, ensuring you don’t end up with an unexpected tax bill.

4. Build an Emergency Fund

One of the most crucial aspects of financial planning is building an emergency fund. Experts recommend saving 3-6 months’ worth of living expenses in case of job loss, medical emergencies, or unexpected repairs. By reviewing your paystub, you can determine how much you can reasonably set aside each month. Your net income gives you a realistic idea of how much you have to save after accounting for your expenses.

Start small and make consistent contributions to your emergency fund by treating it like a monthly expense.

5. Use a Paystub to Verify Income for Financial Opportunities

Paystubs are not just tools for personal finance—they’re also used to verify income when applying for loans, credit cards, and rental properties. Lenders and landlords often require a recent paystub to ensure you can afford the payments.

If you ever need to create a professional paystub, especially if you're self-employed or need to demonstrate income for a financial transaction, you can use an online paystub generator like Paystub Generator. This allows you to quickly generate accurate paystubs that reflect your income, making the process smoother when dealing with financial institutions.

6. Plan for Retirement

Your paystub is also an excellent source for tracking retirement contributions. Many employers offer 401(k) plans or other retirement savings options, and your paystub will show how much you’re contributing to these accounts. To build long-term wealth, consider increasing your retirement contributions, especially if your employer offers a match.

For example, if your employer matches 50% of your contributions up to 6% of your salary, you’re essentially earning free money for your retirement. Make sure your paystub reflects these contributions and adjust them according to your financial goals.

7. Set Financial Goals Based on Your Income

Your financial future depends heavily on the goals you set today. Whether you're saving for a big purchase, planning a vacation, or investing in long-term goals like buying a house, your paystub can serve as a guide. Use the information on your paystub to understand how much money you have to work with and how much you can allocate toward each goal.

Key financial tips include:

Breaking down large goals into smaller, achievable milestones.

Setting aside a percentage of your income for each financial goal.

Reviewing your paystub regularly to track progress and make adjustments.

Your paystub is more than just a record of your earnings; it's a valuable tool that can help you manage your finances more effectively. By understanding the information it provides, you can create a budget, monitor your deductions, plan for taxes, and set financial goals. For those needing to verify income for financial purposes, consider using a reliable paystub generator like Paystub Generator.

read more blogs about financial tips

[extracreditedcredit]

Why Cheap Loans for NHS Workers Are Essential

NHS workers play a crucial role in maintaining the health and well-being of the nation. They are often on the front lines, dealing with high-pressure situations and working long hours to ensure that patients receive the best possible care. Despite their vital contributions, NHS workers frequently face financial challenges that can add stress to their already demanding roles. This is where cheap loans become essential, providing much-needed financial support and stability. In this post, I will provide you with several key reasons why affordable loans for NHS workers are essential, and how they can make a significant difference to their lives.

Financial Stability and Peace of Mind

NHS workers, including doctors, nurses, and support staff, often work in high-stress environments where the stakes are incredibly high. Financial worries can exacerbate this stress, affecting their overall well-being and ability to perform their duties effectively. Access to cheap loans can help alleviate financial pressures, providing NHS workers with the stability and peace of mind they need to focus on their critical roles.

Covering Unexpected Expenses

Life is unpredictable, and unexpected expenses can arise at any time. Whether it's a car repair, a medical bill, or an emergency home repair, having access to affordable loans can help NHS workers manage these unforeseen costs without resorting to high-interest credit cards or payday loans. This financial support ensures that they can handle emergencies without compromising their financial health.

Supporting Continuing Education

Healthcare is a constantly evolving field, and NHS workers must stay up-to-date with the latest medical advancements and techniques. Continuing education is essential for career progression and ensuring that patients receive the best care possible. Affordable loans can help NHS workers cover the costs of further education and training, allowing them to invest in their professional development without financial strain.

Home Ownership and Improvement

Owning a home provides stability and security, which is especially important for NHS workers who often work long and irregular hours. However, saving for a deposit and securing a mortgage can be challenging. Cheap loans can assist NHS workers in achieving home ownership by offering favourable terms and low-interest rates. Additionally, affordable loans can help with home improvements, ensuring a comfortable living environment that can serve as a much-needed sanctuary after demanding shifts.

Debt Consolidation

Many NHS workers may find themselves juggling multiple debts, from student loans to credit card balances. Debt consolidation loans can simplify their financial situation by combining multiple debts into a single loan with a lower interest rate. This can reduce monthly payments and make managing finances more straightforward, helping NHS workers regain control over their financial situation.

Why Credit Unions Are Ideal for NHS Workers

Credit unions offer a unique and supportive banking environment that is particularly well-suited to the needs of NHS workers. Unlike traditional banks, credit unions are member-owned, not-for-profit organisations that focus on serving their members rather than maximising profits. Here are several reasons why credit unions are an excellent choice for NHS workers:

Tailored Financial Products

Credit unions understand the specific financial needs and challenges faced by NHS workers. They offer tailored financial products, including loans, savings accounts, and other services designed to provide the best possible support. These products are often more flexible and affordable than those offered by traditional banks.

Lower Interest Rates

One of the main advantages of credit unions is their ability to offer lower interest rates on loans. Because they are not driven by profit, credit unions can provide more competitive rates, making borrowing more affordable for NHS workers. Lower interest rates mean that NHS workers can save money over the life of the loan, reducing financial stress.

Personalised Service

Credit unions are known for their personalised service and community focus. They prioritise the financial well-being of their members, offering support and advice tailored to individual circumstances. This personal touch can make a significant difference for NHS workers, providing them with the guidance they need to make informed financial decisions.

Community Support

Credit unions are deeply embedded in the communities they serve. This community-centric approach means that credit unions are more attuned to the needs of local NHS workers and can offer relevant and timely support. By choosing a credit union, NHS workers are also supporting an institution that reinvests in the community, creating a positive cycle of mutual benefit.

Financial Education

Many credit unions provide financial education and resources to help members improve their financial literacy. Workshops on budgeting, saving, and managing debt can empower NHS workers to take control of their finances and build a secure future. This focus on education underscores the commitment of credit unions to the long-term well-being of their members.

Blues and Twos Credit Union

Blues and Twos is a UK credit union dedicated to providing affordable financial solutions to those who serve the public, including police officers, NHS workers, firefighters, and many other professions. Recognising the unique financial challenges faced by these professionals, Blues and Twos offers a range of tailored financial products designed to meet their specific needs.

Blues and Twos offers low-interest loans that provide essential financial support for various purposes, from covering unexpected expenses to funding continuing education and home improvements. Their commitment to affordable and flexible financial solutions ensures that members can achieve their financial goals without undue stress. In addition to loans, Blues and Twos offers savings accounts and other banking services, all designed with the well-being of their members in mind.

By choosing Blues and Twos, NHS workers can benefit from personalised service, competitive rates, and a supportive community focus. The credit union's dedication to financial education and member support helps ensure that NHS workers have the resources and guidance they need to manage their finances effectively and build a secure future.

Final Thoughts

Cheap loans are essential for NHS workers, providing financial stability, supporting career development, and helping to manage unexpected expenses. Credit unions like Blues and Twos play a crucial role in offering these affordable financial services, not only to NHS workers but to all public sector professionals. By choosing a credit union, NHS workers can benefit from tailored financial products, lower interest rates, personalised service, and a community-focused approach. This support ensures their financial well-being and allows them to continue their vital work with peace of mind.

[bkdebtrelief]

Veteran Debt Consolidation Loans

Veteran Debt Consolidation Loans: A Comprehensive Guide to Financial Freedom Introduction: In today's fast-paced world, managing one's finances can become overwhelming, especially for veterans who may be dealing with the added stressors of transitioning back into civilian life. Balancing expenses, mortgage payments, credit card debts, and other financial obligations can become a burden that hampers their ability to truly enjoy their post-military years. However, there is a solution that can alleviate this burden and help veterans regain control of their finances - Veteran Debt Consolidation Loans. Understanding Veteran Debt Consolidation Loans: 1. What are Veteran Debt Consolidation Loans? Veteran Debt Consolidation Loans are financial tools specifically designed to assist veterans in managing and consolidating their existing debts effectively. These loans enable veterans to combine multiple debts, such as credit card debts, personal loans, medical bills, or even student loans, into a single, more manageable payment. By doing so, veterans can potentially reduce their monthly expenses and streamline their financial obligations. 2. The Benefits of Veteran Debt Consolidation Loans: a. Lower Interest Rates: One of the most attractive features of a Veteran Debt Consolidation Loan is the potential for lower interest rates. By consolidating various debts into a single loan, veterans may be able to secure a lower interest rate than what they were previously paying. This reduction in interest rates can lead to significant savings over time. b. Simplified Financial Management: Instead of juggling multiple payment dates and amounts, a Veteran Debt Consolidation Loan offers the convenience of a single monthly payment. This simplified financial management allows veterans to focus on other aspects of their lives with reduced stress and a clearer financial picture. c. Improved Credit Scores: Veterans who diligently make their monthly payments on time have the opportunity to rebuild or improve their credit scores. By consolidating debts and staying committed to the repayment plan, veterans can demonstrate responsible financial behavior, which can positively impact their creditworthiness over time. 3. Applying for a Veteran Debt Consolidation Loan: a. Eligibility Criteria: To qualify for a Veteran Debt Consolidation Loan, certain eligibility requirements must be met. These requirements may vary depending on the lender but often include factors such as proof of honorable discharge, a satisfactory credit score, and a certain length of military service. b. Choosing the Right Lender: When considering a Veteran Debt Consolidation Loan, it is crucial to research and select a reputable lender. Look for lenders who specialize in serving veterans and possess a strong track record in the industry. Additionally, compare interest rates, loan terms, and customer reviews to ensure you are making an informed decision. c. The Application Process: The application process for a Veteran Debt Consolidation Loan typically involves providing personal information, military service details, and financial documentation. The lender will assess your eligibility and review your financial history to determine the loan amount and interest rate you qualify for. 4. Finding the Right Loan Term: When obtaining a Veteran Debt Consolidation Loan, veterans have the flexibility to choose the loan term that suits their unique financial circumstances. While a longer-term loan may offer lower monthly payments, it may also result in higher overall interest costs. Conversely, a shorter-term loan may lead to higher monthly payments but can help veterans become debt-free sooner. Conclusion: For veterans burdened by multiple debts, Veteran Debt Consolidation Loans provide a lifeline towards financial freedom and security. By consolidating debts, veterans can simplify their financial management, potentially save on interest costs, and improve their credit scores. It is crucial for veterans to explore their options, choose a reputable lender, and assess their financial situation carefully before applying for a Veteran Debt Consolidation Loan. Ultimately, by taking control of their finances through consolidation, veterans can ensure a brighter and more stable financial future. Anchor Texts: 1. [Fast Debt Consolidation Loans - Veteran Debt Consolidation Loans](https://fastdebtconsolidationloans.com/veteran-debt-consolidation-loans/) 2. [Veteran Debt Consolidation Loans - Secure Your Financial Future](https://fastdebtconsolidationloans.com/veteran-debt-consolidation-loans/)

[lifesobeautiful]

How To Have A Growth Mindset About Money

More than 75% of Americans have at least one financial regret, and is it any wonder? We’re taught from a young age that talking about money is taboo, and the result is that throughout most of adulthood we have no actual idea how to deal with our finances. People are stuck living paycheck to paycheck, not saving enough for retirement and emergencies, and the result is always catastrophic. Debt continues to grow, and we rely on credit cards to get us through the tough times. But what if there were a better way to handle our finances and make small changes that will add up in the long run? If you can apply a growth mindset to your finances, you might find yourself in a better financial situation sooner than you think.

Money Troubles Abound

With our economy in a free fall, there has never been a more relevant time to talk about money troubles. Whether you’ve lost a job or you’re just unsure of the future, the way you spend and save now could impact your life for years to come.

As of this year, American consumers owed more than $14.15 trillion in household debt. This is everything from mortgages to credit card balances to student loan balances, and it adds up quickly. In student loan debt alone, Americans owe more than $1.64 trillion. Credit card debt has skyrocketed to an all-time high of $1 trillion. Americans just aren’t prepared for everyday life.

Part of the problem is that wages have stagnated while the cost of living has ballooned out of control. For decades raises have barely kept up with inflation, while the cost of living has overshot normal wages by a significant amount.

Most Americans have decided that college is the only way to beat the system, but that often leaves them with a crippling debt load they later find they can’t afford as they try to juggle paying rising rents, minimum student loan payments, and healthcare premiums. This, in turn, has sent an entire generation back to their parents’ basements to try to regroup, which further exacerbates the economic situation. For those who are unfortunate enough to have any sort of medical needs, making ends meet is just not a financial possibility in many cases.

Currently, a third of Americans are living paycheck to paycheck, while even three in every ten low-wage earners are able to save at least some of their money but don’t. Student loan borrowers often find themselves regretting choosing a more expensive college than they needed, and 42% make at least one late payment a year. 35% of credit card users only pay the minimum amount instead of paying the full balance every cycle.

Applying A Growth Mindset To Your Finances

Most people apply a fixed mindset to their financial situation – they feel they are helpless to change it, that they know all there is to know about their finances, and that challenges can only lead to failure or financial ruin. When you instead start to apply a growth mindset to your financial situation you realize there’s a lot you don’t know about finances and that you have plenty of room to learn and grow. Setbacks become opportunities for growth.

Financial mistakes and problems happen, and it’s your responsibility to learn from them and do better next time. Start by listing all your debts and their corresponding interest rates. There are a couple of things you can do here. The snowball method is probably the easiest – start by concentrating on paying off the smallest debt first. Keep paying minimum payments on all your debts so you don’t go into default, but find extra money each month to go toward your smallest debt. Once that one is out of the way, apply all that money to your next smallest debt until it is paid off, and keep going from there. Before long you will be debt-free and have the ability to focus your attention on other aspects of your financial life.

There are tons of apps out there that can help you keep track of your finances and expenses and make cuts wherever you can. Saving is also going to be a major component of your financial strategy, as emergency savings prevent you from having to go into debt in the first place.

Learn more about having a financial growth mindset from the infographic below.

Source: Money Hacker

The post How To Have A Growth Mindset About Money appeared first on Dumb Little Man.

This article was first shared from Dumb Little Man

[kristinsimmons]

A Full-Scale Assault on Medical Debt, Part 1

By BOB HERTZ

The recent proposal by Sen. Bernie Sanders to cancel $81 billion of medical debt is a very good start—but it is only a start.

The RIP Medical Debt group—which buys old medical debts, and then forgives them—is absolutely in the right spirit. Its founders Craig Antico and Jerry Ashton deserve great credit for keeping the issue of forgiveness alive.

Unfortunately, over $88 billion in new medical debt is created each year; most of it still held by providers, or sold to collectors, or embedded in credit card balances.

Tragically, none of this has to happen! In France, a visit to the doctor typically costs the equivalent of $1.12. A night in a German hospital costs a patient roughly $11. German co-pays for the year in total cannot exceed 2% of income. Even in Switzerland, the average deductible is $300.

U.S. patients face cost-sharing that would never be tolerated in Germany, says Dr. Markus Frick, a senior official. “If any German politician proposed high deductibles, he or she would be run out of town.”

In Australia, a recent proposal to establish the equivalent of a $5 co-pay for primary care visits fueled such an outcry that the federal government was forced to withdraw the idea.

Americans may be forced to take second jobs just to pay medical debt; meanwhile, the highly-taxed Europeans get free medical care and are counting their weeks of paid vacation. What is wrong with this picture?

These nations have shown that cost sharing is not necessary to keep health care spending at a level well below that of the United States. They rely on higher taxes and price controls…and yet, are those really worse than widespread patient debt?

U.S. Medical debt comes primarily from these sources:

the uninsured

high deductibles

out-of-network bills

claim denials

specialty drugs

emergency room care

‘zombie debts’ purchased by collectors

In this essay, I will show that a substantial number of these debts can be cancelled or greatly reduced.

Today, these groups run up the most medical debts:

Group No. 1. The poor and the uninsured, including those who still do not get Medicaid in red states.

 A Tennessee couple earning $13,000 annually gets no help whatsoever on medical bills. They can barely afford food or rent; so of course they incur medical debt every time they are sick.

Over 20% of these families do not have a checking or savings account. Over 30% are not working at all.If they do work, they cannot afford to join the employer’s plan.

Six full years after the ACA, there are still close to 30 million adults in the US who are uninsured. About seven million are undocumented immigrants. Another seven million are actually eligible for Medicaid, if they do get sick.

About four million could benefit from the ACA, but many are unaware of the exchanges. Up to five million are very poor, but are kept out of both Medicaid and the ACA in the red states described above. Another two to three million make too much for ACA subsidies.

This is a hard group to help. No states besides California want the undocumented to get insurance. No cities outside liberal enclaves like Seattle and New York care about health insurance for restaurant and service workers.

The poor rarely vote, so ignoring them does not trouble conservatives. Politics are often dominated by seniors—who will approve a conservative message about  ‘getting rid of socialized medicine’—while they themselves enjoy the federal socialism of Medicare.

(Not to mention Social Security, electricity, phone infrastructure, and the defense spending that comes to red state residents from the federal government,)

Group No. 2.  The under-insured, who have high deductible insurance but no savings.

Why are they walking around with deductibles they cannot afford?

At some employers, this is the only health insurance which is offered.

Even where there is a choice of plans, people with smaller incomes often select the cheaper high-deductible coverage.

If you are healthy, a high deductible plan to save money on insurance premiums may be a decent gamble at first.. But if you have a chronic illness, you will pay the entire deductible each year, and  will probably build up debt. Only a minority of employers offer  assistance to pay the deductibles.

Sometimes this group pays $500 a month or more for a porous health plan, which then leaves them with thousands in debt if they are hospitalized. 

Many families are living right on the edge financially, and they have trouble with all their debts, not just medical. Default rates are growing on their car loans and credit cards as well. They often face utility shutoffs and repossessions.

A recent study of insurance claims showed that 49% of patient out-of-pocket costs per healthcare incident were below $500; 39% were $501-$1,000; and 12% were more than $1,000. That generates an enormous amount of medical debt.

Group No. 3. The well-insured, who may still get huge out-of-network bills.

Some of their debts are out-and-out fraud. If a hospital says they are in-network, then all their contractors should be in-network – or else we have an illegal bait-and-switch. These surprise bills should be cancelled (details to follow).

In 2011, (9 years ago) New York studied more than 2,000 complaints involving surprise medical bills, and found the average out-of-network emergency bill was $7,006. Insurers paid an average of $3,228 leaving consumers, on average, “to pay $3,778 for an emergency in which they had no choice.”

Out-of-network assistant surgeons, who often were called in without the patient’s knowledge, on average billed $13,914, while insurers paid $1,794 on average.  Surprise bills by out-of-network radiologists averaged $5,406, of which insurers paid $2,497 on average.

Medical debt can be cruel and dispiriting—and it is also incredibly inefficient! The cost of creating a bill, sending a bill, following up, negotiating a settlement, paperwork for charity care, financial counseling, a possible lawsuit, and (rarely) getting repayments over years… The sheer administrative expense is staggering.

The average recovery on hospital bills sent to individuals is 15.3%. Non-hospital providers recover an average of 21.8% of each bill. No wonder some providers prefer Medicaid—it only pays about 50% or less of their normal charges, but that is far more than they will get in actual collections.

There are two overarching models for financing health care:

One is the Bernie Sanders model:

Paternalistic – you get insurance whether you choose it or not

Sympathy for the poor, minorities, and migrants (you never know when you might be among them)

Collectively bargained – usually with large payroll taxes

No pre-existing conditions clauses

Hospitals are financed mainly by taxes, not user fees

Patients are not in debt (though governments often are)

Cost control through price controls and rationing

The Sanders model accepts the use of coercion to pay for health care. (For that matter, the Singapore health model that is praised by conservatives is filled with coercion, including public hospitals, forced savings for HSA’s and taxes for catastrophic insurance.) At some point we are all going to get sick, so letting us decide when to buy insurance is somewhat of a fool’s paradise. Millions will always make bad choices and be left to suffer; we need to be protected against our own stupidity. Coercion is —the only real issue is when and where. Even wealthy societies can benefit from forced savings. For example, a mandatory HSA deposit of 3% of income would eliminate most of the medical debts discussed in this essay.          

The other is the Paul Ryan-Newt Gingrich model:

Based on Individual choice

No mandates on employers to provide quality coverage

No mandates on individuals to buy quality coverage; if they want to gamble going uninsured in order to save money, that is their call.

Hospitals financed by user fees, insurance premiums and private savings

No interference with anyone making money on health care – even those who prey on medical debtors

Medical bankruptcy is OK, because the fear of it motivates the purchase of health insurance.

Cost control (theoretically) through competition – faith in free markets

Taxes on workers are lower – although the savings seem to be siphoned off in premiums, co-pays, and deductibles.

The Ryan model is frankly Darwinian when you get close to it. The uninsured, frankly, are usually people who make mistakes – like poor budgeting, failing in school, losing their jobs, or being born to non-rich parents. Persons with no money get much less care, and will die sooner. Those who do not buy insurance when they are healthy will suffer later on. Eventually it all starts to sounds like “culling the herd.”

The Ryan model therefore expects a lot from private charity. (Begging is preferable to new taxes.) Democratic legislators have also established Medicare, Medicaid, and SCHIP to smooth out the inevitable rough edges.

Medical debt is an obvious consequence of the libertarian model. It can only be reformed by importing controls and rules from the Sanders model.

The ideal image of high-deductible insurance features a judicious patient with at least $10,000 in HSA savings, getting bids on each procedure and therefore driving down costs. They might even have non-urgent care done abroad, which would force American hospitals to compete on price. They might decline an unnecessary treatment or diagnostic test, to save money.

Even if hospitalized, they can say to the provider, “I am paying cash, what is your best offer?” The Amish – who do not buy insurance, but save prodigiously – actually use this method.

This has some basis in fact. Cash for medical care is more efficient and will over time lead to lower prices.

However, millions of Americans have no cash, and no bargaining skills. Some diseases may not wait for patient ‘shopping.’ A desperate patient goes to the nearest hospital and then juggles utility bills and high-interest charge cards to pay down medical bills, and then begs for help from relatives or (even sadder) from GoFundMe.

The average holder of an HSA account is under age 45, healthy, and with an average income of $75,000. Whereas in low-wage America, a ‘consumer-driven’ health plan is a ‘consumer-indebted’ reality. 

Financial casualties among patients do not seem to lead to lower health care prices. Providers are just as likely to raise their prices, in order to cover the bad debt they are taking on. (Drug companies certainly do not lower their prices when their customers suffer.)

Doctors may want to forgive some patient debts, but there is a limit how often they can do this and still cover the expenses of their practice. In some cases, it is actually (and idiotically) illegal for physicians to waive the deductibles.           

Bob Hertz is a retired insurance broker. He learned about health care from Uwe Reinhardt, Joseph White, Dr. Robert Evans, and George Halvorson a fellow Minnesotan.

The post A Full-Scale Assault on Medical Debt, Part 1 appeared first on The Health Care Blog.

A Full-Scale Assault on Medical Debt, Part 1 published first on https://wittooth.tumblr.com/

[lauramalchowblog]

A Full-Scale Assault on Medical Debt, Part 1

By BOB HERTZ

The recent proposal by Sen. Bernie Sanders to cancel $81 billion of medical debt is a very good start—but it is only a start.

The RIP Medical Debt group—which buys old medical debts, and then forgives them—is absolutely in the right spirit. Its founders Craig Antico and Jerry Ashton deserve great credit for keeping the issue of forgiveness alive.

Unfortunately, over $88 billion in new medical debt is created each year; most of it still held by providers, or sold to collectors, or embedded in credit card balances.

Tragically, none of this has to happen! In France, a visit to the doctor typically costs the equivalent of $1.12. A night in a German hospital costs a patient roughly $11. German co-pays for the year in total cannot exceed 2% of income. Even in Switzerland, the average deductible is $300.

U.S. patients face cost-sharing that would never be tolerated in Germany, says Dr. Markus Frick, a senior official. “If any German politician proposed high deductibles, he or she would be run out of town.”

In Australia, a recent proposal to establish the equivalent of a $5 co-pay for primary care visits fueled such an outcry that the federal government was forced to withdraw the idea.

Americans may be forced to take second jobs just to pay medical debt; meanwhile, the highly-taxed Europeans get free medical care and are counting their weeks of paid vacation. What is wrong with this picture?

These nations have shown that cost sharing is not necessary to keep health care spending at a level well below that of the United States. They rely on higher taxes and price controls…and yet, are those really worse than widespread patient debt?

U.S. Medical debt comes primarily from these sources:

the uninsured

high deductibles

out-of-network bills

claim denials

specialty drugs

emergency room care

‘zombie debts’ purchased by collectors

In this essay, I will show that a substantial number of these debts can be cancelled or greatly reduced.

Today, these groups run up the most medical debts:

Group No. 1. The poor and the uninsured, including those who still do not get Medicaid in red states.

 A Tennessee couple earning $13,000 annually gets no help whatsoever on medical bills. They can barely afford food or rent; so of course they incur medical debt every time they are sick.

Over 20% of these families do not have a checking or savings account. Over 30% are not working at all.If they do work, they cannot afford to join the employer’s plan.

Six full years after the ACA, there are still close to 30 million adults in the US who are uninsured. About seven million are undocumented immigrants. Another seven million are actually eligible for Medicaid, if they do get sick.

About four million could benefit from the ACA, but many are unaware of the exchanges. Up to five million are very poor, but are kept out of both Medicaid and the ACA in the red states described above. Another two to three million make too much for ACA subsidies.

This is a hard group to help. No states besides California want the undocumented to get insurance. No cities outside liberal enclaves like Seattle and New York care about health insurance for restaurant and service workers.

The poor rarely vote, so ignoring them does not trouble conservatives. Politics are often dominated by seniors—who will approve a conservative message about  ‘getting rid of socialized medicine’—while they themselves enjoy the federal socialism of Medicare.

(Not to mention Social Security, electricity, phone infrastructure, and the defense spending that comes to red state residents from the federal government,)

Group No. 2.  The under-insured, who have high deductible insurance but no savings.

Why are they walking around with deductibles they cannot afford?

At some employers, this is the only health insurance which is offered.

Even where there is a choice of plans, people with smaller incomes often select the cheaper high-deductible coverage.

If you are healthy, a high deductible plan to save money on insurance premiums may be a decent gamble at first.. But if you have a chronic illness, you will pay the entire deductible each year, and  will probably build up debt. Only a minority of employers offer  assistance to pay the deductibles.

Sometimes this group pays $500 a month or more for a porous health plan, which then leaves them with thousands in debt if they are hospitalized. 

Many families are living right on the edge financially, and they have trouble with all their debts, not just medical. Default rates are growing on their car loans and credit cards as well. They often face utility shutoffs and repossessions.

A recent study of insurance claims showed that 49% of patient out-of-pocket costs per healthcare incident were below $500; 39% were $501-$1,000; and 12% were more than $1,000. That generates an enormous amount of medical debt.

Group No. 3. The well-insured, who may still get huge out-of-network bills.

Some of their debts are out-and-out fraud. If a hospital says they are in-network, then all their contractors should be in-network – or else we have an illegal bait-and-switch. These surprise bills should be cancelled (details to follow).

In 2011, (9 years ago) New York studied more than 2,000 complaints involving surprise medical bills, and found the average out-of-network emergency bill was $7,006. Insurers paid an average of $3,228 leaving consumers, on average, “to pay $3,778 for an emergency in which they had no choice.”

Out-of-network assistant surgeons, who often were called in without the patient’s knowledge, on average billed $13,914, while insurers paid $1,794 on average.  Surprise bills by out-of-network radiologists averaged $5,406, of which insurers paid $2,497 on average.

Medical debt can be cruel and dispiriting—and it is also incredibly inefficient! The cost of creating a bill, sending a bill, following up, negotiating a settlement, paperwork for charity care, financial counseling, a possible lawsuit, and (rarely) getting repayments over years… The sheer administrative expense is staggering.

The average recovery on hospital bills sent to individuals is 15.3%. Non-hospital providers recover an average of 21.8% of each bill. No wonder some providers prefer Medicaid—it only pays about 50% or less of their normal charges, but that is far more than they will get in actual collections.

There are two overarching models for financing health care:

One is the Bernie Sanders model:

Paternalistic – you get insurance whether you choose it or not

Sympathy for the poor, minorities, and migrants (you never know when you might be among them)

Collectively bargained – usually with large payroll taxes

No pre-existing conditions clauses

Hospitals are financed mainly by taxes, not user fees

Patients are not in debt (though governments often are)

Cost control through price controls and rationing

The Sanders model accepts the use of coercion to pay for health care. (For that matter, the Singapore health model that is praised by conservatives is filled with coercion, including public hospitals, forced savings for HSA’s and taxes for catastrophic insurance.) At some point we are all going to get sick, so letting us decide when to buy insurance is somewhat of a fool’s paradise. Millions will always make bad choices and be left to suffer; we need to be protected against our own stupidity. Coercion is —the only real issue is when and where. Even wealthy societies can benefit from forced savings. For example, a mandatory HSA deposit of 3% of income would eliminate most of the medical debts discussed in this essay.          

The other is the Paul Ryan-Newt Gingrich model:

Based on Individual choice

No mandates on employers to provide quality coverage

No mandates on individuals to buy quality coverage; if they want to gamble going uninsured in order to save money, that is their call.

Hospitals financed by user fees, insurance premiums and private savings

No interference with anyone making money on health care – even those who prey on medical debtors

Medical bankruptcy is OK, because the fear of it motivates the purchase of health insurance.

Cost control (theoretically) through competition – faith in free markets

Taxes on workers are lower – although the savings seem to be siphoned off in premiums, co-pays, and deductibles.

The Ryan model is frankly Darwinian when you get close to it. The uninsured, frankly, are usually people who make mistakes – like poor budgeting, failing in school, losing their jobs, or being born to non-rich parents. Persons with no money get much less care, and will die sooner. Those who do not buy insurance when they are healthy will suffer later on. Eventually it all starts to sounds like “culling the herd.”

The Ryan model therefore expects a lot from private charity. (Begging is preferable to new taxes.) Democratic legislators have also established Medicare, Medicaid, and SCHIP to smooth out the inevitable rough edges.

Medical debt is an obvious consequence of the libertarian model. It can only be reformed by importing controls and rules from the Sanders model.

The ideal image of high-deductible insurance features a judicious patient with at least $10,000 in HSA savings, getting bids on each procedure and therefore driving down costs. They might even have non-urgent care done abroad, which would force American hospitals to compete on price. They might decline an unnecessary treatment or diagnostic test, to save money.

Even if hospitalized, they can say to the provider, “I am paying cash, what is your best offer?” The Amish – who do not buy insurance, but save prodigiously – actually use this method.

This has some basis in fact. Cash for medical care is more efficient and will over time lead to lower prices.

However, millions of Americans have no cash, and no bargaining skills. Some diseases may not wait for patient ‘shopping.’ A desperate patient goes to the nearest hospital and then juggles utility bills and high-interest charge cards to pay down medical bills, and then begs for help from relatives or (even sadder) from GoFundMe.

The average holder of an HSA account is under age 45, healthy, and with an average income of $75,000. Whereas in low-wage America, a ‘consumer-driven’ health plan is a ‘consumer-indebted’ reality. 

Financial casualties among patients do not seem to lead to lower health care prices. Providers are just as likely to raise their prices, in order to cover the bad debt they are taking on. (Drug companies certainly do not lower their prices when their customers suffer.)

Doctors may want to forgive some patient debts, but there is a limit how often they can do this and still cover the expenses of their practice. In some cases, it is actually (and idiotically) illegal for physicians to waive the deductibles.           

Bob Hertz is a retired insurance broker. He learned about health care from Uwe Reinhardt, Joseph White, Dr. Robert Evans, and George Halvorson a fellow Minnesotan.

The post A Full-Scale Assault on Medical Debt, Part 1 appeared first on The Health Care Blog.

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[issi-tohbi]

When To File Bankruptcy

Bankruptcy is something we typically think of in terms of businesses, but personal bankruptcy happens too. There are many indicators to let you know when it is time to file for bankruptcy. One tool you should use is to keep up with your finances by creating an actual spreadsheet that shows you exactly what your income to debt ratio is. Doing this lets you have a clear picture of what’s going on with your finances and allows you to catch problem areas before they grow into a colossal disaster.

With rising interest rates on credit cards, crushing medical debt, or life-changing events that caused you to fall behind, it’s easy to feel the constant stress involved with owing money. (Seriously, I’m still paying off debt from a year ago because of interest!) Bankruptcy can help you find your way out and also teach you some of the skills needed to manage better your financing moving forward. However, bankruptcy is an expensive and time consuming process that shouldn't be taken lightly. 

Here are a few ways you will know when it is time to file:

You are Juggling Credit Card Debt

If you find that you are short every month on expenses for daily living and are putting these things on a credit card, that’s a red flag that you’re falling into financial trouble. Many people utilize balance transfers to credit cards with lower interest rates or seek help from their bank.

This can be a useful technique if you’re actively paying down your debt. BUT if you’re continuing to run your credit cards up without paying down your total debt, you’ll soon find yourself in hot water. When the promotional period ends, and the interest starts accruing, you may find yourself worse off than before you made the transfer.

You Have Missed Payments

If your interest rates are already skyrocketing due to missed payments, it may be time to consider bankruptcy. Step one - if you believe your debt is manageable - will be to call your creditors and attempt to negotiate a lower interest rate. Fun fact: many creditors have hardship programs. 

These programs significantly reduce your interest rate and give you a more extended period of set payments to pay down your credit card. However, you will not be able to use this card anymore once you begin these programs if you are eligible. (Which could be a problem if you’re relying on credit for daily expenses...)

Your Wages Are Garnished

If you have defaulted on your payments and a creditor has taken you to court and won, the court may order your wages garnished. (This doesn’t just happen for child support!) If you’re already having a hard time paying outstanding debt, wage garnishment will be a crushing blow to your finances. If you know you’re going to be sued by a creditor, it’s better to consult a bankruptcy lawyer so you’re not left with the short end of the stick.

This will help you begin the bankruptcy proceedings so you can stave off the garnishment and begin to rebuild.

Many people try to fight off filing and believe they will be able to work their way out of debt. Filing for bankruptcy is enough to shake anyone to their core. It is an extreme, last resort but can give you a sense of peace and help you begin to rebuild your credit and financial situation. 

[kennethherrerablog]

9 Smart (and Simple) Ways to Stretch Your Budget When You’re a Single Parent

As far as I’m concerned, all you single parents are heroes without capes.

Well, you’ll swoosh on a cape when your kids want to play dress-up. But that’s beside the point. Single parents have to juggle work, kids and life. That’s no easy feat — especially on the wallet.

That’s why we put together these simple tips to help you better manage your money.

1. Involve Kids in Financial Decisions

Your kid sees their classmates taking piano, tennis, dance and karate lessons. But you might not be able to afford all of that.

Instead of feeling guilty — or worse, caving and overspending — have an open conversation with your child.

“Classically, parents will go behind a closed door to talk about saving, budgeting and investing,” says Maggie Johndrow, a financial adviser at Johndrow Wealth Management. “But psychologists have found that will make your children think finances are scary, taboo and something that’s not to be talked about in the open.”

Instead, Johndrow encourages parents lay it all out there. Let your child know your budget for after-school activities, then work together to pick and choose what you can afford.

“Empower them and teach them by giving them that choice,” she says.

2. Analyze Your Needs vs. Wants

An integral part of managing your money is budgeting. Ew, gross. We know. But it’s important to take a good look at what you’re spending and understand where you can cut back.

You don’t have to rely on complicated Excel-spreadsheet formulas or spend hours categorizing your expenses to stick to a budget. Instead, use an app.

An easy way to automate this process is to use Trim, a little bot that’ll keep track of all your transactions.

Connect your checking account, credit card and savings account for a big-picture look at your spending habits. Then, take a closer look by checking out each of your transactions. Set alerts that’ll let you know when bills are due, when you’ve hit a spending cap or when you’ve (hopefully not) overdrafted.

Best part? It’s free to sign up.

3. Pay Yourself First

Hey, you! Yeah, you! You’re important. Don’t forget to prioritize your needs — like your savings. Whether you’re starting an emergency fund, saving for a down payment on a home or planning a weekend getaway for you and the kids, why not make the process easy?

One of our favorite strategies? Set up automatic withdrawals from your paycheck, so you’ll squirrel money away without thinking about it.

One of our favorite accounts for this is Aspiration — you’ll pay no monthly fees, and you’ll earn up to 2.00% APY on your savings.

You’ll get access to an online-only account for spending and for saving. It comes with a debit card that earns 0.5% cash back on all your purchases, plus free ATMs, so you can easily access your money when you need it.

After you open your Aspiration account, use it to split your income:

Automatically deposit a portion of your income into your spending account, and use that to cover basic expenses.

Deposit what’s left into your Aspiration savings to keep it out of sight and let it grow. You’ll earn 2.00% APY as long you deposit just $1 a month.

Even if you’re slipping $10 into your emergency fund each month, that’s OK. Do what you can to take advantage of the compound interest.

4. Take Care of Your Debt

“I often find that people are struggling because of debt, so if you can come up with a debt repayment strategy and eliminate your debt, the other things all of a sudden become a lot easier,” Johndrow says.

Her top recommendation? Refinance. Refinancing can lower your interest rates and, therefore, lower your monthly payments.

You can basically refinance any type of debt, but here are a couple of examples:

Refinance your credit card debt: Credit card interest is no joke. Refinancing your debt with a personal loan could help you save a ton. If your credit score is at least 620, a good resource is Fiona, a search engine that can help match you with the right personal loan to meet your needs. You can borrow up to $100,000 (no collateral needed) with fixed rates starting at 4.99% and terms from 24 to 84 months.

Refinance your auto loan: It’s normally a pain to re-title your vehicle at your local DMV office, but a company called MotoRefi will do all the heavy lifting for you — and could cut your monthly car payment by $100 or more.

In addition to refinancing for better interest rates, Johndrow suggests extending the term of your loan if your budget is tight. “This might mean paying more in interest over time, but it might free up some monthly cash flow, which can help with your budgeting,” she says.

It gives you some breathing room.

5. Find Sneaky Ways to Save on Your Necessities

Finding ways to save on your needs feels harder than finding ways to save on your wants — but it’s possible.

Here are a few examples that’ll get you going in the right direction:

Save on groceries with a cash-back app. There’s no way around groceries, but you can earn some money back with Ibotta. The app is free to download, and you’ll get a $10 sign-up bonus after uploading your first receipt.

Save money by negotiating your bills. Don’t have time to call? Download Truebill, an app that’ll negotiate your bills, cancel unwanted subscriptions and refund your bank fees. On average, Truebill says it helps customers save more than $700 a year.

Save money on your car insurance. One way you could save money is by shopping around and comparing rates. Use an online car insurance search engine like The Zebra, which offers “insurance in black and white” and compares your options from 204 providers in less than 60 seconds

6. Manage Life’s Risks

You never know what’s going to happen tomorrow, so it’s important to be realistic.

“God forbid something happens to you, and you’re all your kid has,” Johndrow says. “Life insurance leaves them with enough to still hopefully attend college and achieve their goals.”

If you’re under the age of 54 and want to get a fast life insurance quote without the medical exam, pushy sales calls or even getting up from the couch, check out Bestow. The company is built around one concept: helping you get the term life insurance policy you want, simply and fast.

It just takes five minutes to answer some basic lifestyle questions, and you can get quotes for up to $1 million in coverage without a medical exam. If you’re approved, you can personalize your coverage to fit your budget. You can change or cancel your plan at any time.

Johndrow also urges parents to look into disability insurance, in case you can’t work and need to supplement your income; and long-term care insurance, in case you need health care not covered by your health insurance.

7. Find Creative Ways to Diversify Your Income

We know you don’t have a lot of extra time, but if you’re looking for a way to make some extra money to cushion your budget, try something creative.

For example, have you ever thought about renting out your baby gear? Yeah, the stuff you have sitting around the house that your kids don’t need anymore.

Online marketplaces like BabyQuip allow parents to rent out strollers, car seats, cribs and other baby items to traveling parents. (Because checking a crib on a flight is near impossible.)

Stay-at-home mom Manuela Madrid rents her baby gear out. She works, on average, 12 hours a month and earns between $120 to $180 with each rental.

8. Don’t Sleep on Your Retirement Savings

Although retirement might seem like a faraway fantasy, it’s going to pop up sooner than you think.

If you haven’t yet started, open a company-matched 401(k) or your own traditional or Roth IRA. Even if you only put $5 in each week, that’s something — and you’re still taking advantage of that compound interest.

Having trouble prioritizing your savings? Johndrow urges you to think of it like this: “You can take out a loan for almost anything in life, but you cannot take out a loan for your retirement.”

So if you can’t put away money for your kids’ college fund? They’ll be OK. They can take out student loans like everyone else. But you can’t take out a loan to cover your living expenses once you retire.

“You want the best for your children, and the last thing you want to do is ask them to care for you when they’re trying to care for themselves and the next generation,” Johndrow says.

9. Make a Date With Your Money

At the end of each month, put the kids to bed, and pour yourself a glass of wine. If you prefer: Once they’re out the door to school, pour yourself a cup of coffee, and cozy in.

Then, take some time to look at your monthly income and spending and see how you’re doing. See how the last month went — which areas you excelled in and where you might’ve gone over budget. Then, take a look at the month ahead and note any additional upcoming expenses.

Even taking 15 minutes to check in with yourself can help you stay on budget.

Carson Kohler (carson@thepennyhoarder.com) is a staff writer at The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

The Penny Hoarder Promise: We provide accurate, reliable information. Here’s why you can trust us and how we make money.

9 Smart (and Simple) Ways to Stretch Your Budget When You’re a Single Parent published first on https://justinbetreviews.tumblr.com/

[bankruptcyinformation-blog1]

The Pros and Cons of Declaring Chapter 13 Bankruptcy

When Long Island borrowers fall behind on bills and can no longer make their minimum monthly payments, they usually consider calling a

Long Island bankruptcy attorney and filing for relief. The two bankruptcy options available are Chapter 7 or Chapter 13. Depending on your situation, either option may be the answer you need to move forward and repair your financial life.

One of the mistakes many people make is waiting too long to seek out help. You can stop aggressive collection action before you have your car repossessed or a bank account frozen. These types of disastrous events can be prevented by seeking relief by the courts.

These legal options are designed to stabilize families who have suffered a financial disaster. That does not mean you don't have some work to do. It is important to organize all of your financial paperwork before calling your attorney. There will be a lot of questions. But, they are there to help you out.

Chapter 13 is the bankruptcy of choice for people who are seeking to protect property or who earn high incomes. Borrowers who don't have any assets and earn modest wages will probably choose to file for Chapter 7 bankruptcy relief so that they will be forgiven of all financial obligations immediately, except for bills that are not eligible under the Chapter 7 statutes.

For Long Island debtors who earn less than the state median income, the Chapter 13 repayment plan requires debtors to pay back creditors over a three-year period. In cases where a debtor earns more than the state median income, it is customary for the plan to span a full five years.

The law stipulates that the payment period is never more than five years. First, you’ll be expected to propose a realistic payment plan to the court for a legal discharge of your financial obligations. The plan is reviewed by your creditors and the court. The criteria used to judge the plan is feasibility, intentions and compliance with the law. The process usually takes about six months from beginning to end.

While there is no perfect solution to being overextended, there are some legal remedies. Reviewing the pros and cons of your situation is always a good idea. It is recommended that you call our Long Island bankruptcy office to examine the details of applying to the court for help. It is a tough call to make, but our bankruptcy team will be the first to tell you that it makes sense for many people who have lost all hope and need some help.

Pros of Declaring Chapter 13 Bankruptcy

Chapter 13 bankruptcy filing stops foreclosure proceedings and payments.

Debtor is not required to have any contact with creditors.

Creditors must stop contacting the debtor.Debtor can maintain possession of their property.Loan cosigners are protected against collection.

Court appointed trustees are often flexible on payment terms.

You are allowed to file repeatedly.

Creditors can't demand that you pay your total obligation after completing the repayment plan.

Debts related to a business that you signed for personally can be included in the plan.

If your income goes down, then you might be able to modify the plan.

Cons of Declaring Chapter 13 Bankruptcy

You must till pay alimony, child support, student loans and unpaid taxes.

Companies can't file, only individuals can.It will be difficult to get a mortgage.

You must pay off the majority of your debt.You must discuss your financial situation with a trustee or judge and explain what happened.

You will no longer be authorized to use your credit cards.

You will have to prove you have steady income to repay your creditors.

You must pay for courses and court fees.

An attorney must be hired.You must take and successfully complete credit counseling courses.

The trustee and creditors may not agree to your proposed repayment plan.If payments are not made promptly, your case could be dismissed.

You are responsible for providing paperwork about all your debtors, property, income, living expenses and tax information.

Your credit report will be negatively impacted by filing for seven years.

Chapter 13 Bankruptcy Summary:

Bankruptcy is not for everyone. Some people can negotiate and renegotiate with lenders, consolidate bills, and juggle their finances for decades. This type of activity takes its toll on your health and your family. Typically, there will be a time when most people will feel the need for some relief.

The good news about going through the court system for help is that all agreements are legally documented so there can be no dispute about what was decided. Loan modification plans and other remedies that are pursued by desperate people have been known to blow up at times, leaving a person in financial distress and worse off then they were before they began the negotiation process.

The good news is that after a Chapter 13 plan is completed any obligations that have not been repaid are no longer owed. While it can be a bit embarrassing to file, it is often the only answer, and a weight and burden is immediately removed. What people never realize is that filing for relief is not only legal, it is highly recommended to save your family from suffering more than is necessary.

What many Long Island consumers fail to realize is that this legal remedy was put in place to help honest people who have suffered from financial difficulties. Medical expenses, job loss and other unforeseen circumstances can leave any person in dire straits. No one should have to suffer the rest of their life because they were laid off or had to pay for a family medical emergency that was not covered under insurance.

Most Long Island families are only a job loss away from being in the same boat. There is no reason to suffer any longer than necessary. After reading about your options, then give yourself the gift of starting down a path to recovery and contact The Law Offices of Adam C. Gomerman in Huntington, NY.

[smitty7540-blog]

All About Loans

All about mortgage loans

As the number of people undertaking loans to meet their personal expenses has risen significantly, a lot of people are undertaking mortgages in order to secure the loans. Mortgage can be best defined as the method of making use of personal property and giving it out as security in lieu of the payment of the debt undertaken by an individual.

Mortgage is a term which has its origins from the French word, lit pledge which hints at a legal component used for procurement of a loan. Mortgages are generally given out on personal property, such as home. Most of the loans secured through the mode of mortgages are secured by mortgaging the real estate property i.e. the home of an individual.

In some other cases, where the loan is to be procured for extremely professional purposes, lending companies even accept other personal properties, such as car, land or even ships to be mortgaged.

Mortgage loans are undertaken by the masses mostly when they want to make a new investment in the sphere of real estate, property and land. Before giving out any part of the personal property on mortgage, it is advisable for an individual to be well-versed with all the intricacies and legal formalities which are involved in the process of securing loans through mortgage.

There are several types of mortgages available which can be undertaken by a person to secure his much-needed loan. One of the kinds of mortgage which can be undertaken by a person is mortgage by legal charge. In this situation, a person can mortgage his personal property in lieu of a loan, while retaining the authority to be the legal owner of his mortgaged private possessions. However, this also allows the creditor (financial institution) to access the right to exercise the power of their security and sell/lease the house, if the debtor fails to repay the loan in pre-determined time.

A financial institution or the lending company which gives out the loan to an individual generally resists taking chances and gets the financial deal registered in public records so as to remain on the safer side. Also, the lending institutes insist that the property proposed by the debtor is not already given out for some other form of loan and is free from all legal hassles.

There are two types of documents included in the mortgage loan. These include mortgage deed and deed of trust. The deed of trust can be described as a legal deed by the borrower to a trustee which is given out at the time of securing the loan. The deed of trust follows no standard and varies from deal to deal. Most of the mortgages are referred as legal deed of trusts officially.

The other way of mortgage is mortgage by demise. In this scenario, the creditor i.e. the lender company becomes the official owner of the property, in case the debtor dies within the repayment period i.e. if the debtor dies before being able to repay the entire loan, the lender company becomes legally entitled to sell the land to recover its costs.

 All About Secured Loans

What are secured loans Basically, secured loans are loans in which the bank or lending institution can be assured that they will receive back their money if the borrower is unable to make payments according to the specified schedule. Secured loans, then, are loans where property of the borrower is held as collateral until the loan is completely repaid. Normally with secured loans, the money is borrowed against the home or property of the borrower.

Secured loans are very popular with those who have a negative history of credit, because secured loans are relatively reliable to the bank or lending institution. It is wise for any person to think carefully before applying for secured loans. Secured loans are considered risky, because if secured loans are not paid in a timely manner, the borrower will most likely lose his or her house. Those skilled in the area of finances would normally advise a borrower to let secured loans be the final option, if all other choices are not available.

Before applying for secured loans, it is probably wise to assess your individual needs. Is the money you plan to request the smallest amount you are able to borrow Repayment plans for secured loans are normally spread out over a long period of time, and sometimes, they are paid in the same length of time that your mortgage is paid. Therefore, the smaller amount you borrow with secured loans, the better chance you have of being able to make payments on time, as well as pay smaller amounts of interest over the life of the loan.

Most secured loans include an option for something called a payment protection plan. This is basically an insurance policy that is linked with secured loans, and the premiums are added to the monthly payment for secured loans. In the case of some sort of disaster, loss of work, or illness, the borrowers with payment protection plans on their secured loans do not need to repay the rest of their debts on that account. Some people feel that this is an excellent idea, because it helps to prevent the loss of a home in the case of an emergency. Others do not like it, seeing it as a waste of money, and they feel it is better just to make regular monthly payments on their secured loans.

Secured loans are great ideas for consolidating debt, especially credit card debt. Rather than switching balances and juggling between cards and multiple monthly payments, a person can apply for secured loans and receive money to pay off all credit cards.

Who is eligible for secured loans. Most secured loans are dependent upon a home as collateral, so being eligible for secured loans usually means that you must be a homeowner. Unfortunately, secured loans are not normally available to those who are renting or leasing an apartment or house. Although automobiles can sometimes be used as collateral for loans, because of their depreciation and the fact that houses are worth much more in value, secured loans do not usually work with something like an automobile alone.

 All About The Personal Loan

The market is full of lenders ready to give personal loans at the most realistic rate of interest and simple terms. Personal loan can be used for anything and everything such as vacation, renovation of house, extension of house, medical purposes, weddings and so on. The process of getting personal loan is very simple and quick. In personal loan it is not necessary that the borrower has to borrow a huge amount, you can borrow little amount or large amount as per your requirement.

Before availing a personal loan for yourself, you will have to make the right choices like to select between a secured or unsecured personal loan.

1. What is a secured personal loan?

In case of a secured personal loan you need to pledge your asset (usually your house) as collateral security. There are other assets of value that you can use as collateral, such as your car, jewelry, office, property, land, etc. With a secured personal loan you can be rest assured that your lender will offer you the cheapest and best possible rates.

2. What is an unsecured personal loan?

An unsecured personal loan is one that requires no collateral or security for the loan. A simple credit check is performed and your lender will then contact you and provide with the various options that will allow you to avail of a personal loan. Even those with a bad credit history can get a personal loan. Your lender will perform the necessary credit check and provide various choices from which you can choose the one that best suits your needs.

The personal loan for bad credit with no bank account can also be availed and can be of various types. It can be secured or unsecured and the fee structure and loan terms may vary according to the kind of loan you are applying for.

3. Personal Loan Online

Different websites allow you to browse and compare various options to find the best personal bank loan for you. Being online also facilitates availing personal bank loan from the comfort of your home. You don’t have to travel to bank offices, stand in long queue and submit piles of documents. All this process can be completed in few easy steps and within a short period.

The need of privacy and space around every individual is stretching its arm to the optimum level. For this reason online lenders provide you with extreme security and keep your details private when you apply for a personal loan online.

4. Best Rates for Your Personal Loan

A cheap personal loan is easily available through the offices of the banks and the lenders or through the internet. The search engines give a long list of lenders, their rate of interest and a comparative study among all of them. This makes it easy to zero upon a lender with the lowest interest rates. As the name suggests, cheap personal loan is inexpensive and economical, it means that the rate of interest attached to the loan is not sky high, and thus soothing to the pockets of the borrower.

Now, with so many options, you can now get a prompt personal loan so that you can manage to cope up with all your financial requirements as and when needed and it provides you a support so that you can be at ease and live happily.

Personal secured loans are those loans that you get by giving the lender an asset of yours as security for the loan amount. Finance for personal secured loans is relatively easy to obtain, as cad credit history hardly matters. This is due to the asset you use as collateral, which acts as security for the lender. The money you get from this type of loan can be used for whatever purpose you wish because it is after all a personal loan.

 All About The Secured Loan

The word secured provides you satisfaction as well as a sense of complete relaxation which you can acquire in any way you feel yourself to be secured. The home is the first and the foremost place where everyone feels comfortable and secured, so each and every individual dream of acquiring a house. Fulfillment of this dream does not put an end to your financial requirements as at any time there may be a sudden rise of any expenditure for which you may not be prepared in advance, so at this hour of financial sustain you can opt for a loan facility and raise additional funds to cater your financial requirements.

Secured loan is a loan which is backed by assets belonging to the borrower that is provided to the lender as a form of security to decrease the risk of the lender. Thus the lender is ready to provide a large sum of borrowing in the facility of secured loan. This is also termed as a first loan as any property is kept as a guarantee against the loan amount. There are multiple numbers of secured loans available to meet your different requirements like secured home loan, car loan, homeowner loan, online loan, etc. Apart from these there are secured loan for bad credit people, which facilitates people with a bad credit status to raise funds by placing any asset as a security against the loan, but the loan is granted to them only after a credit check and there is no need to worry because credit check is just a formality.

To acquire the best secured loan with minimum possible rate of interest and smallest monthly installment it would be necessary to compare all the secured loans regarding certain aspects like the amount that can be borrowed, the term of the loan available, the rate of interest charged, and if there are any hidden costs or not. Depending upon all the above mentioned facts you have to select the most suitable secured loan so as to fulfill your needs and later repay the loan amount in monthly installments as agreed in the agreement. Sometimes there may be schemes to cover your monthly repayments in the event of unemployment, death, sickness, accident, etc. and for any other reason if you are unable to pay the monthly installment, you should seek advice from your respective lender as early as possible since your security is at risk in the event of any repayment problems. Sooner you seek help the more sympathetic your lender would be, so a fresh date would be issued to you for repaying the delayed installment.

Secured loans are much easy to obtain as here the lender has the added benefit of security and is protected if the borrowed amount is not repaid by the borrower. All the inquiries about the secured loans available and the application process can be accomplished online through the respective website and if you want a written application can also be accepted. To acquire a secured loan you have to submit the requisite form with your personal, work and bank details like your permanent address, contact numbers, age proof, income or salary proof, etc. Along with these you would also be required to provide the lender with your asset details so that the monetary value of the asset can be verified along with the other details and the maximum possible amount of secured loan would be sanctioned. The loan amount shall be transferred to your bank account for you to make the best usage of it and as per your needs.

 http://onlineloans.deals/all-about-loans/

[kristinsimmons]

A Full-Scale Assault on Medical Debt, Part 1

By BOB HERTZ

The recent proposal by Sen. Bernie Sanders to cancel $81 billion of medical debt is a very good start—but it is only a start.

The RIP Medical Debt group—which buys old medical debts, and then forgives them—is absolutely in the right spirit. Its founders Craig Antico and Jerry Ashton deserve great credit for keeping the issue of forgiveness alive.

Unfortunately, over $88 billion in new medical debt is created each year; most of it still held by providers, or sold to collectors, or embedded in credit card balances.

Tragically, none of this has to happen! In France, a visit to the doctor typically costs the equivalent of $1.12. A night in a German hospital costs a patient roughly $11. German co-pays for the year in total cannot exceed 2% of income. Even in Switzerland, the average deductible is $300.

U.S. patients face cost-sharing that would never be tolerated in Germany, says Dr. Markus Frick, a senior official. “If any German politician proposed high deductibles, he or she would be run out of town.”

In Australia, a recent proposal to establish the equivalent of a $5 co-pay for primary care visits fueled such an outcry that the federal government was forced to withdraw the idea.

Americans may be forced to take second jobs just to pay medical debt; meanwhile, the highly-taxed Europeans get free medical care and are counting their weeks of paid vacation. What is wrong with this picture?

These nations have shown that cost sharing is not necessary to keep health care spending at a level well below that of the United States. They rely on higher taxes and price controls…and yet, are those really worse than widespread patient debt?

U.S. Medical debt comes primarily from these sources:

the uninsured

high deductibles

out-of-network bills

claim denials

specialty drugs

emergency room care

‘zombie debts’ purchased by collectors

In this essay, I will show that a substantial number of these debts can be cancelled or greatly reduced.

Today, these groups run up the most medical debts:

Group No. 1. The poor and the uninsured, including those who still do not get Medicaid in red states.

 A Tennessee couple earning $13,000 annually gets no help whatsoever on medical bills. They can barely afford food or rent; so of course they incur medical debt every time they are sick.

Over 20% of these families do not have a checking or savings account. Over 30% are not working at all.If they do work, they cannot afford to join the employer’s plan.

Six full years after the ACA, there are still close to 30 million adults in the US who are uninsured. About seven million are undocumented immigrants. Another seven million are actually eligible for Medicaid, if they do get sick.

About four million could benefit from the ACA, but many are unaware of the exchanges. Up to five million are very poor, but are kept out of both Medicaid and the ACA in the red states described above. Another two to three million make too much for ACA subsidies.

This is a hard group to help. No states besides California want the undocumented to get insurance. No cities outside liberal enclaves like Seattle and New York care about health insurance for restaurant and service workers.

The poor rarely vote, so ignoring them does not trouble conservatives. Politics are often dominated by seniors—who will approve a conservative message about  ‘getting rid of socialized medicine’—while they themselves enjoy the federal socialism of Medicare.

(Not to mention Social Security, electricity, phone infrastructure, and the defense spending that comes to red state residents from the federal government,)

Group No. 2.  The under-insured, who have high deductible insurance but no savings.

Why are they walking around with deductibles they cannot afford?

At some employers, this is the only health insurance which is offered.

Even where there is a choice of plans, people with smaller incomes often select the cheaper high-deductible coverage.

If you are healthy, a high deductible plan to save money on insurance premiums may be a decent gamble at first.. But if you have a chronic illness, you will pay the entire deductible each year, and  will probably build up debt. Only a minority of employers offer  assistance to pay the deductibles.

Sometimes this group pays $500 a month or more for a porous health plan, which then leaves them with thousands in debt if they are hospitalized. 

Many families are living right on the edge financially, and they have trouble with all their debts, not just medical. Default rates are growing on their car loans and credit cards as well. They often face utility shutoffs and repossessions.

A recent study of insurance claims showed that 49% of patient out-of-pocket costs per healthcare incident were below $500; 39% were $501-$1,000; and 12% were more than $1,000. That generates an enormous amount of medical debt.

Group No. 3. The well-insured, who may still get huge out-of-network bills.

Some of their debts are out-and-out fraud. If a hospital says they are in-network, then all their contractors should be in-network – or else we have an illegal bait-and-switch. These surprise bills should be cancelled (details to follow).

In 2011, (9 years ago) New York studied more than 2,000 complaints involving surprise medical bills, and found the average out-of-network emergency bill was $7,006. Insurers paid an average of $3,228 leaving consumers, on average, “to pay $3,778 for an emergency in which they had no choice.”

Out-of-network assistant surgeons, who often were called in without the patient’s knowledge, on average billed $13,914, while insurers paid $1,794 on average.  Surprise bills by out-of-network radiologists averaged $5,406, of which insurers paid $2,497 on average.

Medical debt can be cruel and dispiriting—and it is also incredibly inefficient! The cost of creating a bill, sending a bill, following up, negotiating a settlement, paperwork for charity care, financial counseling, a possible lawsuit, and (rarely) getting repayments over years… The sheer administrative expense is staggering.

The average recovery on hospital bills sent to individuals is 15.3%. Non-hospital providers recover an average of 21.8% of each bill. No wonder some providers prefer Medicaid—it only pays about 50% or less of their normal charges, but that is far more than they will get in actual collections.

There are two overarching models for financing health care:

One is the Bernie Sanders model:

Paternalistic – you get insurance whether you choose it or not

Sympathy for the poor, minorities, and migrants (you never know when you might be among them)

Collectively bargained – usually with large payroll taxes

No pre-existing conditions clauses

Hospitals are financed mainly by taxes, not user fees

Patients are not in debt (though governments often are)

Cost control through price controls and rationing

The Sanders model accepts the use of coercion to pay for health care. (For that matter, the Singapore health model that is praised by conservatives is filled with coercion, including public hospitals, forced savings for HSA’s and taxes for catastrophic insurance.) At some point we are all going to get sick, so letting us decide when to buy insurance is somewhat of a fool’s paradise. Millions will always make bad choices and be left to suffer; we need to be protected against our own stupidity. Coercion is —the only real issue is when and where. Even wealthy societies can benefit from forced savings. For example, a mandatory HSA deposit of 3% of income would eliminate most of the medical debts discussed in this essay.          

The other is the Paul Ryan-Newt Gingrich model:

Based on Individual choice

No mandates on employers to provide quality coverage

No mandates on individuals to buy quality coverage; if they want to gamble going uninsured in order to save money, that is their call.

Hospitals financed by user fees, insurance premiums and private savings

No interference with anyone making money on health care – even those who prey on medical debtors

Medical bankruptcy is OK, because the fear of it motivates the purchase of health insurance.

Cost control (theoretically) through competition – faith in free markets

Taxes on workers are lower – although the savings seem to be siphoned off in premiums, co-pays, and deductibles.

The Ryan model is frankly Darwinian when you get close to it. The uninsured, frankly, are usually people who make mistakes – like poor budgeting, failing in school, losing their jobs, or being born to non-rich parents. Persons with no money get much less care, and will die sooner. Those who do not buy insurance when they are healthy will suffer later on. Eventually it all starts to sounds like “culling the herd.”

The Ryan model therefore expects a lot from private charity. (Begging is preferable to new taxes.) Democratic legislators have also established Medicare, Medicaid, and SCHIP to smooth out the inevitable rough edges.

Medical debt is an obvious consequence of the libertarian model. It can only be reformed by importing controls and rules from the Sanders model.

The ideal image of high-deductible insurance features a judicious patient with at least $10,000 in HSA savings, getting bids on each procedure and therefore driving down costs. They might even have non-urgent care done abroad, which would force American hospitals to compete on price. They might decline an unnecessary treatment or diagnostic test, to save money.

Even if hospitalized, they can say to the provider, “I am paying cash, what is your best offer?” The Amish – who do not buy insurance, but save prodigiously – actually use this method.

This has some basis in fact. Cash for medical care is more efficient and will over time lead to lower prices.

However, millions of Americans have no cash, and no bargaining skills. Some diseases may not wait for patient ‘shopping.’ A desperate patient goes to the nearest hospital and then juggles utility bills and high-interest charge cards to pay down medical bills, and then begs for help from relatives or (even sadder) from GoFundMe.

The average holder of an HSA account is under age 45, healthy, and with an average income of $75,000. Whereas in low-wage America, a ‘consumer-driven’ health plan is a ‘consumer-indebted’ reality. 

Financial casualties among patients do not seem to lead to lower health care prices. Providers are just as likely to raise their prices, in order to cover the bad debt they are taking on. (Drug companies certainly do not lower their prices when their customers suffer.)

Doctors may want to forgive some patient debts, but there is a limit how often they can do this and still cover the expenses of their practice. In some cases, it is actually (and idiotically) illegal for physicians to waive the deductibles.           

Bob Hertz is a retired insurance broker. He learned about health care from Uwe Reinhardt, Joseph White, Dr. Robert Evans, and George Halvorson a fellow Minnesotan.

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Money story: Two broke millennials in pursuit of financial freedom

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Money story: Two broke millennials in pursuit of financial freedom

This guest post from Claudia Pennington is part of the “money stories” feature at Get Rich Slowly. Some stories contain general advice; others are examples of how a GRS reader achieved financial success — or failure. These stories feature folks from all stages of financial maturity. Today, Claudia shares the steps she and her husband have taken in their pursuit of financial freedom.

Garrett and I were your typical, college-educated millennials (thanks to student loans) who purchased new cars (courtesy of auto loans) and an overpriced, pre-recession home with a 30-year mortgage. We were good consumers, the kind of consumers that lenders love: We spent on credit and we paid our bills on time.

Fast forward to 2014 ⇒⇒ We managed to acquire even more debt. We had a car loan, two car leases, a mortgage, student loans, and credit card debt. Living paycheck to paycheck was exhausting!

It took years for us to realize just how tired we were.

Tired of not having any time.

Tired of not having any money.

Tired of not being able to travel.

After listening to people on the radio talk about similar money problems, we decided it was about time that we get our own finances in order. In 2015, we took a hard look at our spending from 2014. We didn’t like what we saw. We created a plan to get out of debt and change our lives.

Fast forward to today ⇒⇒ We managed to eliminate all of our debt. We’re a one-car family (no auto loan). We paid off our student loans (paid Sallie Mae Navient back). We paid off our mortgage in just over a year.

Let me tell you how we did it.

Home Expenses in 2014: $45,954, in 2017: $7,227

According to Mint, we spent $45,954 on everything “Home” related during 2014. Our “Home” expenses included mortgage, insurance, repairs, remodeling, utilities, and any “stuff” we bought to adorn our home.

Having a 1500-square-foot home was a drag. Between the money going out for heating, cooling, taxes, insurance, and many repairs and the time we spent cleaning it, mowing the lawn, and shoveling snow, we were over home “ownership”.

After spending nearly $46,000, you’d think we might have made a dent in the mortgage. But no, you’d be wrong. At the end of 2014, we still had a mortgage balance of $156,000 because we weren’t paying anything extra. Our house owned us.

Baby Boomers around us were dying to retire but finding themselves handcuffed to jobs in order to pay their mortgages. Neither of us wanted to end up like them. But in 2014, that’s exactly where we were headed.

By 2017, we had sold our 1500-square-foot house, moved into a 500-square-foot house (yes, I’m serious), and managed to pay off the mortgage on the new place. Our $7,227 in expenses included taxes, insurance, utilities, and the “stuff” to take care of the house like soap, rugs, and whatnot.

Auto Expenses in 2014: $10,256, in 2017: $7,466

At one point, both of us had a Volvo and a smart car. That’s right: Our household of two owned four cars.

To acquire four cars, we had two car loans and two car leases, so it’s no surprise that in 2014, we spent $10,256 on debt, repairs, and insurance for four cars.

And you know what’s really crazy?

We had so much stuff in our two-car garage (hobby stuff, home stuff, deck furniture, etc…) that we struggled to park just one car in the garage. The time and money we wasted juggling four cars was obscene.

By the end of 2017, we had become a one-car family. The leases on our smart cars ended in early 2017, so we paid the end-of-leases fees and returned those cars to the dealership. Most of our expenses in 2017 were the result of car repairs and maintenance, like a new computer, fancy synthetic oil, and so on.

Health Expenses in 2014: $14,532, in 2017: $3,726

In 2014, Garrett started seeing a new, out-of-network, out-of-pocket doctor ($$$). It was a last-ditch effort to address a lifetime of chronic fatigue. (He’s doing much better today!)

Also in 2014, I came down with some bizarre symptoms that went undiagnosed (probably tick-borne illness). Thousands of dollars in MRIs, blood tests, and CT scans, no one could explain the difficulty walking, fatigue, and brain fog. (Thankfully, I recovered.)

In total, we spent $14,532 on our medical needs in 2014.

And all of the stress about money certainly didn’t help our health!

Eliminating all of our debt also eliminated much of the stress we felt about money. What a relief it was knowing that we were true homeowners, living mortgage free in our “tiny” house.

Downsizing to the 500-square-foot home freed up a lot of time. No longer were we spending hours each week maintaining or remodeling our home. Instead, we spend our time hiking, kayaking, and doing all the other action verbs we enjoy doing.

Food Expenses in 2014: $15,693.48, in 2017: $7,070

Between our jobs, half-done home remodeling projects, and countless medical appointments, we had convinced ourselves we didn’t have time to cook when we lived in our larger 1500-square-foot home. In fact, we thought that by eating at restaurants every other night, we were actually saving time.

Going to restaurants all the time led to laziness and poor food choices. We weren’t eating well. We weren’t exercising. It’s probably no surprise that our health expenses were as high as they were because we weren’t taking care of our bodies.

Looking back at that year, it’s clear that we were the problem in our lives. The state of our finances was largely due to bad decisions and poor choices. But spending nearly $16,000 on food wasn’t the problem — a lack of accountability was our real problem.

Honestly, food continues to be a struggle — even as I write this in early 2018. When we plan ahead and purchase enough groceries for the week, we’re okay; going out to eat isn’t even a thought. But when we don’t plan portions properly or we forget to go to the store to replenish the stockpile, we run into trouble. Our spending on food is down significantly, but there’s still room for progress.

2015: The Year of Change

In 2015, we started talking about money and what we wanted to do with money in the future. We quickly realized that we weren’t spending money in a way that aligned with our values. Neither of us imagined that we’d be working until 67, but we weren’t doing what we needed to do in order to retire earlier.

I started seeking out online personal finance resources to help us get our financial situation in order. One of the blogs we found was 1500 Days, which is all about financial independence. It was the first time we’d encountered the term; it sounded as if though financial independence would lead to the life we sought.

J.D.’s note: I love 1500 Days. It’s one of my favorite finance blogs. Two of its best features? First, Carl is hilarious. And second, the blog contains plenty of dinosaurs.

By April 2015, we set a plan for getting out of the hole we’d dug, to become money bosses for the first time in our lives. We wanted to achieve financial independence in 1500 days — on 19 May 2019. Having such a lofty goal meant we had to make some big changes.

Since our saving rate was nonexistent, we stopped spending on all non-essentials and started budgeting. We challenged all of our expenses to see how low our spending could go. Each expense we lowered meant more profit margin. But cutting our expenses wasn’t enough to get us out of debt in the timeframe we outlined. We had to take bigger steps to rearrange our lives in order to accomplish our mission.

I left a part-time job in favor of a full-time job. Garrett put extra hours into his W-2 sales job because of the commissions he could earn.

We put the 1500-square-foot house on the market in April 2015. (Sold in May 2016 — $0 in proceeds from the sale.)

We set about the process of building a smaller home. We found our postage-stamp lot — 2500 square feet — and had a small house manufactured to fit on the space. We moved into our 536-square-foot home in September 2015. (We’ve been loving it ever since!)

We sold one Volvo and turned in the two smart cars at the end of their leases. Now, we’re a one-car family. Since I work from home, I’m content with biking around town to run errands or when I just want to hang out by the river.

We started a side hustle and used the income from our side hustle to pay off our credit card debt in October 2015. [J.D. again. Claudia is too shy to say, but I’ll mention it for her. Their side hustle is SEO Audit Guide, a company that helps folks in the online space optimize their websites. I’ve paid for their services myself. Twice.]

We used the debt avalanche approach to eliminate the remaining debts, which we paid off in March 2017. (Here’s a debt avalanche calculator.)

We’re just three years into this journey to FI, and I’m proud to say we are 100% debt free. No mortgage. No car loans. No student loans. No credit card debt.

2018: The Year of Growth

Our purpose for this journey was to create margin in our lives to pursue something purposeful, our “why,” something other than W-2 employment: a life of financial independence colored with slow travel and entrepreneurship.

If you know about the stages of financial freedom, you know we’re working on Stage 4: Security.

In the last several months of our journey to debt freedom, we were able to make monster debt payments — as much as $13,000 toward the end. We were obsessed with getting out of debt, so we didn’t save any money. Sometimes we had as little as $500 in our checking account. Most of the time, we had less than $100 in savings.

In 2017, we made solid progress on Stage 4. We set aside enough in our emergency fund to cover one year’s worth of expenses (about $30,000) and we invested the max in our tax-deferred retirement accounts.

In 2018, we’re focused on growth. We want to grow our income, which will in turn increase our saving rate. This will give us more money to invest. (We’re interested in dividend investing.) After much debate about how we should pursue financial independence, Garrett and I decided that real estate just isn’t right for us. Dividend investing is a better fit. (With real estate, we’d need to invest far too much time and money to generate enough passive income to cover our expenses.)

Pursuing financial freedom changed us for the better. We’ve seen significant improvements in our finances, but also our health and happiness. No longer are we broke millennials living paycheck to paycheck. Somewhere along the way, we became happier, healthier, self-actualizing, wealth-building millennials. And financial freedom is finally in sight.

Reminder: This is a story from one of your fellow readers. Please be nice. After twenty years of blogging, I have a thick skin, but it can be scary to put your story out in public for the first time. Remember that this guest author isn’t a professional writer, and is just learning about money like you are. Unduly nasty comments on reader stories will be removed or edited.

The post Money story: Two broke millennials in pursuit of financial freedom appeared first on Get Rich Slowly.

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At what cost?

Breast cancer patient Molly MacDonald founded The Pink Fund to offset breast cancer-related expenses by providing 90 days of nonmedical, cost-of-living expenses to breast cancer patients in active treatment.

When I was at the pharmacy earlier this week, I expected to put down my bankcard and pay about $15 for the prescription medicine, Anastrozole. This is the generic for Arimidex that I am now taking to try to keep breast cancer at bay. Much to my surprise, the cashier at the pharmacy handed me the pill bottle and said: ‘There’s no copay on this medication.’ I responded: ‘Yahtzee!’ Grabbed the pills and hotfooted it out of the clinic, before anyone changed their mind. These are uncertain times for people living with breast cancer. Talk of national healthcare reform has many people on edge, including me. I have a hard time looking through my social media feeds without having anxiety issues as politicians play with people’s lives. (Note: I have reached out to Colorado’s elected leaders, letting them know how such legislative change could impact me. I heard back from Sen. Michael Bennet. He assured me he and his staff are working to find balance with those seeking change and reform. I hope a balance is struck.) In truth, to be sick sucks. To be sick, also is beyond expensive. During my two trips with breast cancer, I often found myself wondering: ‘What cost do I have to pay to be healthy?’

There’s the mental cost. Then, there’s the often more debilitating financial burden.

For many people, the costs of living with cancer is devastating. I am beyond fortunate. My husband has a great job that offers equally great insurance options. So, I have been blessed to go through Breast Cancer 1.0 and 2.0 without putting a serious financial strain on my family.

During Breast Cancer 1.0, if I had not been insured, I could have been charged $180,290.87 for the 14-hour double mastectomy and reconstruction. Instead, I paid a $500 copay.

During Breast Cancer 2.0, each time I met with my regular oncologist or the radiation oncologist, I could have been charged $202. Instead, I paid a $35 copay.

More than six weeks of radiation treatments for Breast Cancer 2.0 could have cost me more than $16,000. Instead, I paid little more than $500.

For my most recent surgery, the Aug. 9 hysterectomy/oophorectomy, I could have been charged more than $51,000. Instead, I paid a $35 copay.

The numbers are staggering.

This week, MarketWatch published the story “Why breast cancer patients are in ‘financial crisis.’”

The piece highlights the plight many cancer patients face when they are diagnosed and have to juggle already tight finances. For example, Molly MacDonald was diagnosed with breast cancer in 2005. Six months into her treatment, her house was foreclosed on and she began to rely on food banks as she tried to support her five children, MarketWatch reported.

According to the report, 37 percent of breast cancer survivors are still in debt due to treatment; 23 percent say the disease nearly bankrupted them; 47 percent of women use their retirement account to pay for out-of-pocket expenses; and, 26 percent are paying with their credit card.

After experiencing such financial difficulties herself, MacDonald founded The Pink Fund to offset such expenses by providing 90 days of nonmedical, cost-of-living expenses to breast cancer patients in active treatment.

“I met so many other working women experiencing what we call financial toxicity as a side effect of cancer,” MacDonald said of starting The Pink Fund.

To learn more about The Pink Fund or to donate, visit www.pinkfund.org.

The Pink Fund works to offset breast cancer-related expenses by providing 90 days of nonmedical, cost-of-living expenses to breast cancer patients in active treatment.

Another group that seeks to help people living with breast cancer is Living Beyond Breast Cancer. Although this group offers more services than financial counseling or support, advocates do provide insight about how best to cope with costly treatments.

The group encourages patients to dispute every medical bill and work out payment plans with hospitals instead of charging treatment to credit cards.

Patients also are encouraged to talk with social workers and patient advocates to ensure they are not paying more than necessary.

“We try to encourage women to understand health insurance and be an informed consumer,” said Jean Sachs, chief executive officer of Living Beyond Breast Cancer. “Hopefully, you are doing that before you’re diagnosed, but after you’re diagnosed it becomes more important than ever.”

To learn more about Living Beyond Breast Cancer, visit www.lbbc.org.

To read more from the MarketWatch story, visit www.marketwatch.com/story/why-breast-cancer-patients-are-in-financial-crisis-2017-09-19.