Using Your Tax Refund to Pay Credit Card Bills

Financial Tips | Posted by Jacob ONeill
Apr 15 2011

So Uncle Sam’s sending a big tax refund your way. Oh, the things you can buy! Will it be a home theatre system? A flat-screen TV? The newest smart phone?

Hold up there, before that phone looks smarter than you. What we’ve been seeing recently is a lot of people with credit scores as healthy as we are, but who are showing early signs of bad credit card debt.

Is your credit exhibiting symptoms of poor health? If it is, put that big tax refund to work making it well again.

It’s easy to self-diagnose the onset of bad credit card debt if you know where to look. Are all your credit cards at or near their limits? If so, your credit may be starting to feel weak. Credit agencies — and credit issuers — like to see that you still have some credit left, after all. And if you’re having problems making the minimum payments — especially if you find yourself paying for one card with another card — your credit could be calling in sick very soon.

Your credit may also be under the weather if you use your cash to pay your minimum payment, then have to go right back to the card to pay for necessities. And what about savings? Do you have enough left over to put a little away? Experts generally say you should save at least 10 percent of your earnings.

These credit bugs often arrive together and are nearly impossible to cure quickly once they gang up. So if you find

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Tags: Refund, Tax Refund
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Joint Debtors Can Stack Their Chapter 13 Debt Ceilings In Some Cases

Financial Guide | Posted by Kiara Withers
Apr 14 2011

Many people who wanted to file Chapter 13 found that they were ineligible because their debts exceeded the Chapter 13 debt limits of approximately $1 million of secured debt or approximately $360,000 of unsecured debt. The debt limits have affected more people in the past few years because inflated real estate values during the boom resulted in many debtors having large mortgages which exceeded the secured debt ceiling. I have had several clients who could not qualify for Chapter 7 and who were willing to pay their creditors what they could afford in Chapter 13, but who were excluded from Chapter 13 by the debt ceilings. These people either had to file an expensive Chapter 11 case or forgo bankruptcy protection completely.

One unresolved question about Chapter 13 debt ceiling is whether joint married debtors could stack their ceilings. For example, if stacking were permitted, joint married debtors could have up to $2 million joint debt in a Chapter 13. Joint Chapter 7 debtors can stack their exemptions.

This past week one of the Orlando bankruptcy judges issued an opinion which hold that joint married debtors may in some cases stack the debt ceilings of Chapter 13 eligibility. The opinion explained that a joint bankruptcy is actually the combination of separate bankruptcy estates. In a joint Chapter 13 filing each of the joint debtors must individually meet Chapter 13 debt requirements.

The opinion’s effect on Chapter 13 depends upon whether joint bankruptcy debtors have separate debts or joint and several liability. F Read more…

Tags: 13 Debt, Chapter 13, Chapter 13 Debt, Debt
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Five Reasons California was Hit Hard by the Foreclosure Crisis

Finance News | Posted by admin
Apr 14 2011

In the current economic environment you will find that California was hit extra hard by the home foreclosure crisis. Many people are suffering and have lost their homes because of it. Some reasons California was hit so hard could have very well been avoided.

1. Banks were lending to unqualified borrowers 2. Too many builders were over building and dumping properties onto investors 3. Real estate agents were artificially inflating home prices in new subdivision through phase releases 4. Home owners had no financial reserve for a rainy day 5. Homeowners borrowed money on variable rate loans 

Had homeowners, banks, builders and real estate agents avoided these five mistakes California’s home foreclosure crises probably would have been simply a hick-up instead of a crisis. Citizens should have been looking out for each other and not relying on the government for over site. Knowing the banks, builders and real estate agents are in it for the money, we as consumers need to pay close attention to what they are telling us and insure we are not falling into a trap. Don’t get caught in the same trap. Only borrow what you can afford, save 3 – 6 months of income for emergencies and search for a good deal when buying a home.

Tags: California Was Hit, Crisis, Foreclosure Crisis, Was Hit
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What is Obama Home Foreclosure Program?

Finance News | Posted by admin
Apr 11 2011

President Obama’s home foreclosure program, Making Home Affordable, is a program that provides a number of government-subsidized options for homeowners who are struggling. The goal is for these homeowners to avoid home foreclosure, which helps get the American economy back on track.

There are four different programs available to homeowners under the Making Home Affordable program.

The Home Affordable Modification Program (HAMP) allows homeowners to modify the terms of their existing mortgage to make it more affordable.

For homeowners who have a second mortgage, and have already modified their first with HAMP, the Second Lien Modification Program (2MP) provides the opportunity to modify that second mortgage, so that both payments are more affordable.

The Home Affordable Refinance Program (HARP) is for homeowners who have loans that are owned or guaranteed by Fannie Mae or Freddie Mac. Homeowners can refinance these loans into more affordable payments.

Finally, the Home Affordable Foreclosure Alternatives Program (HAFAP) is designed for those homeowners who cannot afford their home any longer but are trying to avoid foreclosure. This program helps homeowners transition to more affordable housing through a short sale or a deed-in-lieu of home foreclosure.

Tags: Foreclosure Program, Home Foreclosure, Home Foreclosure Program, Program
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Document Your Receipts

Financial Tips | Posted by Jacob ONeill
Apr 10 2011

Its the last week to file your taxes if you are going to make the April 18 deadline for the year 2011. And while many who were expecting a huge refund may have completed this onerous task clear back in January or early February, those of us who know that they will end up paying typically put it off till around the last minute. That turned out to be last Friday for me.

“Document your receipts” was the advice I received from my tax man. Being self-employed I need to and can take deductions for everything from my home office to paying my children for doing work for my business. And so I try to keep very thorough records and document every receipt for every ream of paper, the utilities for my home office and more.

But I could learn a few things from this guy. He is billed here as “The Most Tax Efficient Man in America”. It sounds as if he painstakingly documents every possible legal deduction and enjoys every minute of it.

And I admire him for it. I say “Take every deduction you can”.

Unfortunately, though, I do not quite feel the same about General Electric, Americas largest corporation and the fact that they did not pay any taxes.

Somehow taxes on profits of $14.2 billion or even $5.1 billion from operations just in the United States, seems like it could substantially cut into the deficit and help with the balancing of the budget instead of doing it on the backs of the middle class and the poor.

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Set a Vacation Budget to Avoid Debt and Stress Later

Financial Tips | Posted by Jacob ONeill
Apr 10 2011

If you’re hoping to take a spring-break trip or, really, any kind of vacation that requires travel, one of the most important things to remember is financial responsibility. While the hassles of everyday life can often cause vacationers to try to make up for lost fun, over-indulging while on break can lead to even more stress when the trip ends and reality kicks back in — especially if you go way over your budget.

To help you avoid spending what you don’t have, here are three tips to remember:

1.    Make a budget — and stick with it. Before you leave for your trip, go online to familiarize yourself with area restaurants and attractions. This will help you set daily budget limits for meals and entertainment. Keep track of your receipts throughout the day for everything from coffee to souvenir t-shirts. Be sure you’re sticking with your budget, and make daily adjustments as needed to stay within your total trip limit.

2.    Go mobile. With all of the apps available for your smartphone, finding deals while on vacation is easier than ever. From cheap dining spots to local shops, checking prices and reviews before you leave the hotel can save you money while still letting you enjoy everything the area has to offer.

3.    Take advantage of credit card rewards. Paying for expenditures on your trip with a credit card isn’t a bad thing, as long as you’re sure you can pay off that debt. Many credit cards offe

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Tags: Vacation, Vacation Budget
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