Reality Check -- Life Without Credit Cards

We applaud you for making the commitment to get out of debt, but realize that the reality of living without a credit card can present challenges. 

In some circumstances, keeping at least one credit card is needed for emergencies when the water heater goes out, or you find that your child needs new books for classes and they didn’t think to tell you about it until the day before they need them.

Although self-control and sound judgment certainly must enter into your decision about whether to use your card or not, there are other ways to decrease your day-to-day expenses;

• By bringing your lunch to work each day instead of going out, you are saving money on gas too!
• Get a library card and start reading books instead of buying movies or adding premium channels to your cable system. 
• Start taking public transportation a couple of times a week or begin a carpool with co-workers.  Not only you are saving gas money; you are also allowing yourself some extra time to actually read that book!

The good news is there are several choices available to you and your spouse about the repayment of your shared debts, but the key to making it work is to stay in agreement with one another.  It may take several strategizing sessions to work this out, and you may even need to employ the assistance of a good financial planner, but it will be worth it in the long run.

First, stop accruing new debt by putting a freeze on your credit card spending.  While the two of you may agree to keep a card or two available for designated expenses, this isn’t the time to run up new debt or take out cash advances on your credit cards.  This is a great time to close out those department store cards with higher interest rates.  And never cut off your spouse without first letting them know of your plans to freeze the debt.

Recently, we wrote about speaking openly with your fiancé about your finances before you get married (see “Money Can’t Buy Me Love” posted on February 1, 2008).  As important as it is for a couple to understand about how they will jointly save funds for a future together and spend it on a well thought-out budget, it’s also vital to know where each individual stands if divorce becomes inevitable.

Over 70% of all marriages that end in divorce are due to financial problems, and divorcing couples are likely to have as much debt as they have property.  Just as you would divide assets, divorcing couples need to assign responsibility for the debt.

Sometimes it’s as easy to acknowledge that one individual assumes responsibility for that debt which was brought into the marriage.  However, if you and your spouse have been married for a long time, you have a shared credit history, and allocating responsibility for the fair division of debts is the key to the success of your individual financial futures.

If you are unable to afford to place your parent or elderly family member into an assisted living facility, perhaps you’ve thought of bringing them into your own home.  This arrangement can be quite costly, plus there is the additional burden of stress it upon all family members, which have agreed to this seemly “simple” arrangement.

First, do you have adequate space to accommodate the parent or elderly family member?  Has that space been remodeled to accommodate any physical handicaps?  Is the space located in a part of the home that is easily accessible should an emergency occur?  Will the parent or elderly family member be on their own for meals or will you supplement their care with home health care?  Is the home health care organization licensed or are you relying on the assistance of an independent agent?  Is the agent bonded?  Is the agent able to administered medicine or do you need to explore additional assistance from a medical provider?

If the cost of assisted living is huge, the cost of moving a parent or elderly family member into your home is overwhelming.

Regardless on which avenue you embark, it’s a commitment, which will affect the rest of your collective lives.  Be prepared and get information today.

The cost of placing a parent or elderly family member into an assisted living facility is a huge expense.  Once application fees and room deposits have been settled, an individual most usually enters into a contract with the organization who operates the facility, paying a substantial buy-in, which is not refundable.   So in essence, your elderly family member is purchasing the space into which they move cost them thousands of dollars.  Now add in monthly rent, meals and activities, and you have a better assessment of the true cost of assisted living.

Are you prepared for your financial future of your parent?

As the Baby Boom Generation enters its fifties and sixties, there is no more talked about subject than taking care of elderly family members.  While Boomers are ready to embrace a more active adult lifestyle, their parents are finding themselves having to deal with the reality of moving into assisted living and nursing homes.

Although some Boomers are financially set and can afford the luxury of moving a single parent into their homes, there are several considerations, which come to the immediate forefront of this delicate, delicate issue.

We've all heard about the stimulus package which is currently being implemented by Congress, and the big question being asked of all Americans is, "How will YOU spend your refund?"

We strongly encourage clients of Debt Settlement USA to pay themselves first, and coudn't recommend a better use for your stimulus refund and/or your tax refund than helping yourself to become debt free.

Our negotiators can negotiate great deals any time of year but during the tax season, many creditors will negotiate special 'tax time settlements'.   And, many credit card companies are hoping that their clients will use their stimulus refund to pay down their debt.

If you have funds saved to apply towards a settlement or anticipate receiving a refund of any kind, please contact your personal debt negotiator right away.