Tax Debts and Bankruptcy
U.S. bankruptcy laws have strict stipulations for when and how tax debt can be eliminated through a bankruptcy case. Along with credit card debt and medical bills, tax debt is another primary financial woe that can cause borrowers to get behind on their mortgage payments, potentially have their wages garnished and ultimately need to seek out bankruptcy in order to achieve a financial fresh start. However, while debt like credit card debt and medical bills will typically be automatically discharged when a borrower files for Chapter 7 bankruptcy (if the court approves his filing), other debt like tax [...]
Pros and Cons of Having Credit Cards (Part 2)
Benefits of having credit cards include building a good credit history when the card is used responsibly and being protected in the event the card is stolen. As a continuation of Pros and Cons of Having Credit Cards (Part 1), here is some additional information regarding the advantages and disadvantages of relying on credit cards for the majority of your financial transactions. While Part 1 focused on the cons of having credit cards (i.e., the benefits of using cash over relying on credit cards), here in Part 2, we will focus on the pros of having credit cards. [...]
Pros and Cons of Having Credit Cards (Part 1)
Some of the benefits of using cash instead of credit cards include spending less, having a tangible sense of the cost of items and avoiding credit card debt. Although many people rely on credit cards to make their day-to-day financial transactions, an increasing number of people are choosing to forego having credit cards, opting instead to only use cash or their debt cards to buy things. The trend of moving towards not having any credits has been, for some, spurred by past accumulation of massive credit card debt and the desire to avoid digging such a financial hole [...]
Repairing Your Credit after Bankruptcy (Part 2)
Paying off the balance on a new credit card each month and fixing mistakes on credit reports can help borrowers slowly rebuild their credit after bankruptcy. As a continuation of Repairing Your Credit after Bankruptcy (Part 1), here is some additional information regarding what borrowers can do to rebuild their credit ratings and improve their financial outlook after having filed for bankruptcy. Specific actions that borrowers can take to boost their credit score after bankruptcy include: Taking out one new credit card – Because bankruptcy will discharge a borrower’s credit card debts, after bankruptcy, borrowers will likely not [...]
Repairing Your Credit after Bankruptcy (Part 1)
Borrowers who focus on repairing their credit after bankruptcy can slowly build their credit scores back up and eventually improve their financial health. Bankruptcy offers borrowers who are struggling with massive amounts of debt a great opportunity to discharge much of their debt and achieve a financial fresh start. The process of alleviating some large debt from a borrower’s shoulders, however, does mean that the borrower will take a hit on his credit report, as bankruptcy filings can stay on a credit report for 7 to 10 years. However, even if a borrower has a bankruptcy listed on [...]
Financial Advice for Young Adults (Part 2)
Here is some additional helpful information that can help young adults develop good financial habits that can last a lifetime As a continuation of Financial Advice for Young Adults (Part 1), here is some additional helpful information that can help young adults develop good financial habits that can last a lifetime. Be careful with credit cards – While it’s a good idea to have at least one credit card in order to start building a good credit score, be very careful about using this card and/or taking out multiple credit cards; paying for everything with a credit card [...]
Financial Advice for Young Adults (Part 1)
Young adults who are diligent about following this financial advice can achieve a strong financial standing that may benefit them for years and decades to come. Whether you have recently graduated from college or are just getting out from under your parent’s roof (or you are a parent with a child moving into young adulthood), this financial advice can help instill smart spending and saving habits that may be able to help you: Establish and maintain a good credit score Stave off overwhelming debt Sidestep the need to potentially file for bankruptcy in the future. With financial habits, [...]
Organizing Your Finances Before Divorce Can Save You Money (Part 2)
Getting marital assets appraised prior to filing for divorce is one thing couples can do to get their finances in order prior to divorce proceedings. As a continuation of Organizing Your Finances Before Divorce Can Save You Money (Part 1), here is some additional information regarding what soon-to-be divorcing parties can do in order to get their financial affairs in order so that they can save themselves money and potential headaches in the future. Close joint accounts if possible – Soon-to-be ex-partners should immediately close any shared accounts, including checking and savings accounts and/or credit card accounts, if [...]
Organizing Your Finances Before Divorce Can Save You Money (Part 1)
Divorcing couples who are able to get their finances in order prior to filing for divorce can save themselves hundreds to thousands of dollars in future attorneys’ fees. Divorce is an inherently stressful time that can be made all the more difficult when a couple’s financial matters are in disarray and lawyers and courts are brought in as middlemen to sort out these matters. While it may not be possible for all couples to get their finances organized before divorcing, especially in cases when one party surprises another with divorce or the proceedings are particularly acrimonious, for couples [...]
How to Identify and Fix the Most Common Credit Report Mistakes (Part 2)
Fixing errors on a credit report typically involves writing to a credit reporting agency or creditor to explain the nature of the mistakes. As a continuation of How to Identify and Fix the Most Common Credit Report Mistakes (Part 1), the following is some additional information regarding how to recognize and repair credit report mistakes. While Part 1 of this blog focused on types of mistakes that commonly appear on borrowers’ credit reports, here in Part 2, we will take a look at what borrowers can do when they have pinpointed problems with their credit report. Repairing Credit [...]
