How to Claim Health Insurance from Multiple Companies

Mr. Narendra Gupta had to undergo an emergency hospitalization. He was convinced that the health coverage he purchased several years ago would suffice the cost of his treatment. He was in for a rude shock when the hospital bill amounted to INR 2.25 lakh. Since his mediclaim policy offered coverage of INR 1.5 lakh, Mr. Gupta had to pay the excess cost.

Had he invested in two plans, he would have enjoyed the benefit of a higher coverage. He could have claimed the balance amount from the second policy, thus eliminating any financial burden.

Given that medical inflation is on the rise, a single health insurance plan often falls short. For this purpose, financial advisors advise individuals to invest in more than a single health policy. Following are three major benefits of purchasing multiple policies.

1. Higher coverage

A major benefit of purchasing multiple health insurance policies is that you will receive a higher coverage. In case your hospitalization bills exceed the sum assured amount of your first insurer, you may seek the balanced amount from the other insurance plan.

2. Hedge against rejection of claims

In case a particular insurance provider rejects your claim application due to whatsoever reasons, you may have to make out-of-pocket expenses. Purchasing a second policy acts as a hedge in such a situation when one insurer rejects your claim.

3. Greater tax benefits

Section 80D of the Income Tax Act, 1961 offers tax benefit on health insurance premiums paid towards your medical insurance plans. By purchasing multiple health plans, you may seek a greater deduction, thus reducing your tax liability to a higher extent. However, it is important to note that you may claim a maximum of INR 25,000 on your mediclaim premiums, while senior citizens may avail of a higher limit of INR 50,000 as per the latest Union Budget.

Procedure to claim from multiple insurance companies

Earlier, the Insurance Regulatory and Development Authority of India (IRDA) had a contribution clause that required insurers to settle the claim in the ratio of the sum assured under the policies. This means in case you have taken two policies of INR 1 lakh and INR 4 lakh, and your medical expenses amount to INR 1 lakh, then both insurers will settle the claim in the ratio1:4. Hence, the first insurer will pay INR 25,000, while the other will pay INR 75,000.

However, IRDA’s health insurance regulations of 2013 did away with the contribution clause. Now, the policyholder may choose the insurer. In case the sum assured is lesser than the claim, the insured is entitled to claim the balance from the second health insurance policy.

Toclaim your hospital bills, you may following either of the two following methods:

1. Cashless claim

In order to avail of a cashless claim through two insurers, you may first make a claim through a single insurer. Thereafter, you may seek the claims settlement summary from them and request them to give you the attested copies of all the medical bills. Post this, you may seek reimbursement of the remaining amount from the second health insurance company.

Alternatively, you may fill the authorization forms of both the insurance providers. The hospital will send out these forms to both the insurers and the bills will be settled between the hospital and the insurance providers.

2. Reimbursement claim

In such a scenario, you will have to pay all the expenses incurred towards your hospital bills. Later, you may seek a reimbursement of the medical expenses. Submit all the original bills to the first insurance provider, stating the amount you wish for them to pay. Once this claim amount has been settled, you may seek a claims settlement summary as well as copies of all the bills. The hospital will attest these copies. You may then forward the same to the second insurance provider for getting the remaining reimbursement from them.

Having multiple health insurance policies is indeed a boon in this time of rising medical inflation. Therefore, you may invest in more than one policy and secure your financial well-being in case a medical contingency were to occur.

Preparing For The Worst To Make Things Better

Life can be a difficult thing to balance for most people. From areas, like money, which most people struggle with, to the easier ones, like family time, which a lot of people couldn’t live without, you will have a lot going on when you really think about it. Of course, with so many plates being spun, it’s only a matter of time until one or two of them drop. The results of something like this will rest pretty much squarely on the preparation you have in place for it. To help you out with this, this post will be helping you to plan for the worst, simply to make things better.

This whole process has to start with some assessment, and you will need to work hard to figure out which parts of your life are most at risk. Your money could be absolutely fine, and your career could be booming, but, as a result, you might be neglecting those you love. Eventually, carrying on down this route would see your family torn apart. So, to avoid this, some early gifts could be a good idea, along with some extra time being dedicated to them.

Once you have an idea of what might be wrong in your life, you can start to think about how you’re going to make it right, but you might need some help along the way. If your struggling with finances, for example, your bank might be able to offer some support. When things are more serious, though, getting the help of professionals like bankruptcy lawyers could save you a lot of hassle. People in positions like these tend to work very hard to help their customers and clients.

Of course, unless you spend a lot of money, no one will be able to make the changes your business needs for you. Instead, you will have to listen to what your support network is telling you, and choose to act on it based on what your heart tells you. This could be a very long process, but it will be worth it once you’re able to handle problems without breaking a step, and are feeling confident in life.

Along with the help a professional can give you, there are loads of ways to get free advice if you’re willing to do some hunting. Blogs are quickly becoming more and more popular, and are a great way to learn about the different challenges you could face in life. Along with blogs, forums can also be great, as they give you the chance to talk more directly with those around you.

Hopefully, this post will inspire you to start working harder on the time you put into life’s little mishaps. Of course, you can never stop something going wrong in life, as these things will simply happen. But, with the right time, effort, and dedication, you should find it much easier to start working on this part of life. You’re going to have plenty of research to do along the way.

The Importance of Knowing Your Rights and Access to Personal Damages

It’s a well-known fact that the law practiced within Australia is one that is treated with the utmost importance in order to keep the rates of crime exceptionally low and in order to make it a comfortable and safe environment for the multicultural population of the continent. Yet, a lot of people don’t have much of an idea about the legal rights given to them by the Australian government.

Of course, there’s no question about the fact that one should always be certain of their legal rights regardless of what their country or city of residence is. There have been several instances in which the injured was unaware of their right which was the reason they never filed for a personal injury claim despite the odds being in their favour.

It is highly important to seek law advice, at the very least, when you’re involved in a serious injury – especially one that causes you great damages or losses. The personal injury law in Australia is rather simple and one that will get you your rights, if in the court of law, it is proven that you did not have direct fault in the accident in question or that the accident was entirely the fault of the opposing party.

Personal Injury Law in Australia

Personal injuries are not only detrimental to one due to their health, but they also cause one great discomfort in day-to-day life. The restriction and pain inflicted as the result of an injury is enough for the injured to take the matter to court. Upon winning the case, the injured receives huge compensation for the damage and pain that they had to bear.

Such cases are commonly handled by personal injury lawyers and unless the case is too complicated, you don’t need to worry about not acquiring access to the personal damages induced upon you. You must always remember that the access to personal damages is your legal right and there’s nothing that can stand in your way when it comes to that which is legally yours.

Compensation for Damages

Once it is proven in the court of law that the injured had no part in the accident that took place, their injuries are assessed and medical reports – if any ¬– are also taken into consideration. Once the damages are assessed, both parties agree to a set amount which the injured receives as compensation for their damages. In case the accident took place in your workplace, there are different workers compensation laws for the purpose as well.

The bottom line is that one who has to suffer as a consequence to something that wasn’t even their fault, they have every legal right to take the other party to court and receive compensation for the damages that they have had to bear. In Australia, there are absolutely no exceptions when it comes to the law so don’t be afraid to find out about your own rights.

When Taking Out a Loan is Not a Good Idea

Managing your money is important but how you get it in the first place can be just as vital. If you allow yourself to take out loans in situations when doing so is definitely not appropriate, you will simply cause yourself more problems than you’ll be able to deal with.

These days, it’s easier than ever to take out loans and that’s one of the reasons why people are getting sloppy with their decisions and choosing loans when there are better and safer options on the table. To help make things easier for you, here are some examples of when it’s definitely not a good idea to take out a loan.

When You Just Want to Finance Your Lifestyle

If your income isn’t large enough to cover the kind of lifestyle you’re trying to lead, that’s a sure sign that your lifestyle is your problem, not your income. You need to make sure you’re living within your means because borrowing to finance that lifestyle will become unsustainable sooner or later.

When You Want to Pay for Expensive Legal Help

These days, lawyers are either very affordable or very expensive. If you’re in need of a lawyer, it might make sense to demand the best, but can you really afford that? It could be better to find a personal injury lawyer, or whatever kind of lawyer you need, that offers a no win, no fee deal to clients like you. It will certainly save you a lot of money.

When You’re Borrowing to Pay Off Another Loan

Borrowing to make up for your previous borrowing mistakes is a bad idea, even when it seems like the most sensible option for you. You can’t expect to try this without getting caught in a vicious circle of debt. In the end, it will all be very destructive and it will delay the point at which you finally move out of the red and into the black.

When Your Future Income is Uncertain

Loans need to be paid back; it might seem like an obvious thing to point out but if your income is not secure into the future, you will have trouble making those repayments on time. That’s when the fines and interests will start to mount up and you might eventually end up having things repossessed from your home to cover the payments you can’t make.

When You’re Trying to Keep Up With Peers

If you see that your neighbour has a new car, you might feel like you need one too. And if your sister in law is updating the kitchen, you might start to feel like your kitchen is due a renovation too. But this kind of social competitiveness is not worth landing yourself in financial hot water for. Keeping up with your peers is never as important as it seems in the moment.

There are plenty of situations in which loans can be useful but you should using them sparingly because you don’t want yourself to fall into a financial mess when that doesn’t need to happen.

It's True What They Say, Crime Doesn't Pay!

Have you ever been tempted to commit a small crime? The general thinking behind these types of crimes is that they don’t hurt anyone and make your life a lot easier. But you have to be careful here because there are quite a few seemingly small crimes that carry seriously high financial costs if you get caught. And, you will get caught. Let’s look at a few of these possibilities and the traps that you could fall into trying to get the most out of these scams.

Fronting

Ever thought about fronting? What is fronting? Well, let’s say you live in the middle of a city. The cost of insurance here for a car is always going to be a great deal more expensive. Ah, but your friends live way out in a rural area where the crime rate is exceptionally low. Their insurance is super cheap, so you give the insurance company their address and say that’s where the car is being stored. It’s a dangerous game because if the insurance company finds out, they can do everything from charging you a higher premium that includes back payments for past years you have claimed on insurance to seeking legal action. This can result in a heavy fine and may leave you in you being blacklisted by insurance companies. These are the type of costs that you will certainly want to avoid.

Piracy

You might say that you would never commit piracy. But have you ever streamed something online without the permission of the owner of the media? If that’s the case, you have indeed committed piracy and companies are getting far more strict with how they handle these types of issues. In the past, they would only target the individuals who were responsible for sharing the media in the first place. Now, there have been actions against people who have watched the content without sharing.

The maximum jail sentence for piracy is currently set at ten years, and fines can range in the high thousands. Of course, this isn’t the biggest cost. The biggest cost is finding the lawyer who will handle a reversal of a decision that will most likely be given if you are found guilty of piracy. Luckily, you will always find appellate court lawyers nearby where you live who can help you with this and make sure that you do not end up in a difficult situation.

Providing False Details

Whether you are trying to get a job, buying a home or perhaps even attempting to rent an apartment, it can be tempting to provide false information that will give you a greater chance of accomplishing your goal. However, providing false information to official channels is indeed a crime and can get you in a lot of trouble, leading to expensive fees, and we’re not just talking about the cost of hiring a lawyer this time. If you are found guilty of this crime, the judge can end up charging you a lot of money depending on what you were using the false info for.

As you can see then, it’s true what they say. Crime, even small crimes, do not pay.

Could You be Sitting on Lost Cash?

In the United States alone, there is approximately $32 billion of unclaimed assets that have been forgotten by their rightful owners, or in some cases, their owners aren’t even aware exist! That’s just the tip of the iceberg when it comes to lost cash that could be reclaimed, and whether you’re in dire straits, dealing with debt, or not, it has to be worth checking if any of this cash could rightfully be yours...

Check Out the Government Savings Bond Database

A good place to find lost cash is the federal government’s E Savings Bonds database, of which around $17 billion worth has not been claimed. These E Bonds were available between 1941 and 1980 as a safe, government-backed form of saving, If you were around back then and there’s any chance you could have bought bonds or had them gifted to you, it’s worth checking out.

Look Into Compensation

There are millions of people out there who have been injured or ill-treated and could be entitled to compensation ranging from a few hundred to millions of dollars. So, contacting a personal injury claim solicitors, employment lawyer, or whichever legal representative is most appropriate for your situation could result in you getting the lost cash you need. Obviously, this will only be appropriate for those of you who have actually had an issue that you could litigate against.

Check the NAUPA Website

The National Association of Unclaimed Property Administrators is a fantastic resource for those of you who may have once opened a bank account, perhaps a savings account for your kids, or an account grandma set up for the kids, that you somehow forgot to cash out. Check it out if you want to know if you have any money that is rightfully yours sitting doing nothing.

Go to the IRS

Perhaps, this is the idea that is most likely to bear fruit. If you go to the IRS website, you will be able to find all kinds of information about tax refunds that are available and how you can get them. There is a good chance that you’ll find some sort of refund that you’re eligible for and it’s your money, so go ahead and do it! Just click on the “Where’s My Refund?” enter some basic information, and you’re good to go. Good Luck!

Check Your Drawers

You might think that you can account for every single cent of cash you have, and maybe you can, but what about that gift card that your aunt gave you for Christmas or those gift certificates you won a few years back and never used? It’s always worth checking for gift cards that you haven’t used because, even if you don’t want to use them, you can sell them off at a slight discount to people who do, and since it’s estimated that $6.8 billion worth of gift cards go unredeemed each year, it has to be worth a try.

I hope this helps you finally get what you’re owed!

How The Self Employed Should Manage An Injury

Getting injured at work is one thing, but what if your work is actually a place of self employment? The rules are a little different in this scenario, but there are still ways you can manage it to minimize the trauma.

It’s a common misconception that those who are self employed and become injured while working cannot make a claim. There are many instances where a self employed individual can claim and get help. Let’s take a look at what you need to know:

Working Alongside Others

If you’re the kind of self employed person who is hired by a contracting company, you’ll likely work on their premises and use their tools and equipment. If it turns out that this workplace is unsafe or the equipment isn’t safe, then it will be the company's responsibility if something happens to you. If you work alongside other contractors, such as builders, plumbers, joiners, electricians, etc, and you are injured because of one of them, you can also claim.

If you do suffer an accident caused by another, receiving medical attention ASAP is a must, no matter how serious your injury seems to you. If you do go and pursue a claim, you will need a medical record, explain Blumenshine Law Group. Don’t put off getting seen by a professional. Keep your own record of what happened too, as well as who saw it happen. Taking pictures of your injury can be helpful too.

Getting Insurance

Many self employed people don’t work alongside others. What do you do if you’re one of these kinds of self employed people? First off, you need to be sure that you have insurance in place to cover you if something should happen. Yes, it’s a little extra expense, but it’s worth looking at if you are worried that you may hurt yourself in a way that puts you out of action for a while. Lost earnings could seriously hinder you, especially if you don't have savings. Think about how you’d cope if you were out of work for a few weeks. It isn’t a lot of time, but it is when you’re self employed and you rely on those earnings.

Having the right kind of insurance for other staff members, if you have them, is a legal requirement. This is something that should be looked into before you even hire.

Most professional law companies will offer your advice for free with no obligation, so you don’t have to worry about spending too much when you’re just getting an idea of what could happen in your case. You can find out quickly and easily whether you’ll be able to make a claim at all.

It’s always best to look at things in the long term right from the get go, and consider every eventuality so you can be properly prepared. You’ll only regret not having savings or insurance later on down the line if something does happen. You can’t put a price on your peace of mind.

Financially Recovering From An Accident And Medical Bills

When you have an accident that derails your living standard, makes everyday life painful, you can start to feel under the blues. Your finances will also take a hit, so even after you’ve healed, your bank account will still be recovering. We’ve all felt this annoying sense of burden, which when you’re physically injured, there are long-lasting effects that won’t go away. Your medical bills will skyrocket, and your insurance premiums may increase also. Although it’s perfectly reasonable for hospitals to charge your insurance if you have it, this burden will be placed on you by the insurance if you cannot prove it wasn’t your fault. It can become very complex and prepare to pay the medical bills is one thing, but paying for them when you don’t have the money and it's not your fault is infuriating. There are a few things you can do to react to a financial situation after an accident.

Have evidence for your insurer

Insurance companies may or may not pay for your medical bills depending on your plan. Cheaper plans require you not to be the cause of your own accident that physically harms you. Therefore this means you need to show evidence to your insurer that the reason you’ve ended up needing them to pay for your medical bills is not of your own making. Whether you’re in a car crash, or you simply slipped and fell on a wet floor in a store, you have to take evidence from the scene. This might be something as simple as taking pictures of the crash, or the fact that there was no warning sign at the area of the wet floor. Talk to witnesses and see if you can get their contact details, as the insurance company may want to phone them up to corroborate your story.

Recovering from the bills

Recovering from a large hit to your bank account from medical bills is going to be tough. If you have ended up in debt, your first reaction might be to get out loans to help you through this rocky period; you could opt for debt consolidation if you feel that you need extra help. This type of loan will make all your debts form into one giant charge, and the interest rate will then be centralized. The payments will be smaller, which will help you manage the monthly finances but the loan will make the payments back to zero a little longer. Medical bills can also have an impact on your credit rating, which can lead to loan companies denying you and banks charging you a higher interest rate for loans. On repair.credit, you can study how to recover from financial losses due to medical bills and make sure your reputation is salvaged. By sending a letter to the credit bureaus, you can also report an error in the medical bills that will, in turn, fix any unwarranted credit score dive.

Recovering from an accident is mentally challenging. Even more so when your finances are in trouble. If the accident was not your fault, you should not be liable to pay for medical bills. Collect as much evidence of this as you can, and work to keep your credit score healthy by not succumbing to the medical bills.

5 Tips for Balancing Business and Personal Finances

When you own a business, you become responsible for the management of both company and personal finances. In the early years, there’s a risk of overextending personal funds to successfully establish your business. It can be tempting to take home a small salary, borrow against your personal credit and work very long hours just to keep the business afloat. According to USA Today, around just 20% of businesses make it past their first year. If you’re lucky enough to be one of the 20% and your business begins to generate regular profits, you might need to resist the urge to lean on your business so that it can support the cost of your personal life. Dipping into financial reserves, that should really be left in your company account to cover future and unexpected business challenges is not a good idea. There are many ways of balancing the scales between business and personal finance needs and these are some of the most effective.

1. Keep saving

Whether just starting out, or with a fairly established business under your belt, it would be foolish to ever stop saving for those rainy days. In your personal life, you never know when you might need to cover unexpected bills for medical treatment, house renovations or car repairs. When it comes to your business, you may need to update equipment, move to a bigger office, make repairs to company buildings or raise staff pay to be in accordance with new wage requirements, for example. Even though taking out a business loan is always a valid option as a way of dealing with unforeseen expenses, it makes sense to have a savings fund to dip into when the need arises.

2. Maintain business and personal funds separate

It’s much easier and safer to keep business and personal funds completely separate. As well as improving the credibility of your business, this simple measure also protects you from becoming personally liable for any kind of problem that occurs as a result of your business in the future. You’ll need to organize your finances so that you have separate bank accounts, separate bill payments and separate taxes.

3. Spend less than what comes in

It requires a conscious, continual effort to keep both personal and business expenses below income. The gist of Parkinson’s Law is that however much you earn (or make), your expenses will increase to match the amount of money coming in. This means that the more we earn, the more we will spend; the more money our businesses make, the more expenses we’ll find to drain ourselves of that income.

The only solution is to actively keep expenditure in line, which can be a little more complicated when running a business; mainly because monthly income tends to be less consistent than that of a contracted employee. The key lies in being prepared and in knowing where you can make cutbacks each month to keep things in check should the need arise.

4. Pay bills automatically

By setting up automatic payments for both personal and business needs, you give yourself one less thing to worry about on a monthly basis. Administrative tasks can really drain the time you have for other more important work or time that you want to devote to family and friends. Automatic payments also remove the risk of having to cover the cost of late payment fees.

5. Get professional tax advice

Tax regulations are prone to change, which means it can be difficult to keep fully on top of all developments affecting your personal income and business taxes. Anyone managing their own business should seek out the professional advice and support of a tax advisor. Apart from helping you to keep your taxes in order, a tax advisor can also offer invaluable information of new tax savings opportunities, as and when they come into action. You’ll be able to find out what kind of deductions you can claim for home office equipment and services, employees against contractors and business expenses.

Recover Your Finances After An Accident Leaves You Unemployed

Accidents can be mentally and physically damaging; however, when they cause you to lose your livelihood, they become even more of a problem. Rebuilding your life after you’ve suffered an accident is no easy feat, especially when you have money worries to thinks about. You’ll want to be able to focus on your health and having a speedy recovery, but when there’s stress involved, the process can be slowed down and sometimes come to a grinding halt. If you’ve been affecting by an incident that caused you to lose your income; take a look at the following advice to help you take the steps back towards financial security and physical health again.

Look Into Your Entitlements

The last thing you might want to do following an accident is to sort out your paperwork and any admin. However, the sooner you can bring yourself to work out what you’re entitled to; the quicker you’ll have a helping hand to get back on your feet. Ask a trusted colleague of family member to help you work out what you may be owed from your old job and what your insurance will cover. Be savvy and as thorough as possible; companies will often avoid paying out even when they should. If you need to; contact reputable car accident lawyers so that they can walk you through what you need to do to gain the right compensation for your specific situation. A little time and effort, in the beginning will pay off long-term; just try and make sure you get the right help and advice from the get-go. 

Adjust Your Lifestyle

Your lifestyle may have taken a hit during your recovery anyway. However, if you’re unsure about how long it will take to be fighting-fit again; it’s worth thinking about your long-term plans regarding care, accommodation, and location. Being unable to work may result in missed rent or mortgage payments; so before that happens, think about downsizing, or moving in with loved-ones for the duration of your recovery. You’ll be able to save your cash while you’re there which you can utilize with future houses or apartments. Sway takeout for home-cooked meals, and reconsider where and how you buy your groceries; little everyday changes can really add up to decent savings. If you’re unable to drive, but you own a car; consider selling it and utilizing the lump sum of money you’ll receive and put it towards living costs. Material things can be replaced once you’re on the mend again; don’t risk a roof over your head or going hungry for things that can be bought.

It’s Never Too Soon To Think About Future Options

Keep your mind occupied with what you’re going to do when you’re better; maybe it’s time to consider a career change or training to add to your skillset. Don’t be cautious when it comes to talking to those who could help you in the future; be honest about your current circumstances, but let people know that when you’re ready, you’ll be able to work hard again. Getting a new job when your better will be a positive focus that can help to guide you through these challenging times.

Can I Stop Foreclosure by Filing for Bankruptcy?

The number of foreclosure filings in the United States has come down since 2011, but the data will still shock you as there were a total of 956,864 filings in 2016 and 203,108 home repossessions. The foreclosure rate as of June 2017 is 1 in every 1,789 homes, with the top states being New Jersey, Delaware, Maryland, Connecticut, and Florida.

Thankfully, the other states are doing better, but are not without concerns. Take Arizona, for example.

The foreclosure rate in Arizona is 1 in every 2,758 homes, which is better than the national average. However, the foreclosure rate in Arizona is up 20% over last year, even though nationally it is coming down, making this a cause for worry. What happens to your home if you are filing for Chapter 7 or Chapter 13 bankruptcy in Arizona because you might have also fallen behind on your mortgage payments? Will you be able to keep your home, or will the lender take it away? By understanding a little about bankruptcy help in Scottsdale and across the state, you can prevent home foreclosure.

Get a Stay Order

The court will issue an ‘order for relief’ automatically when you file for bankruptcy. Once you have the ‘automatic stay’, the creditors have no other option but to cease all collection activities immediately. Even if your home is already scheduled for foreclosure, it is going to be legally postponed, usually for 3 to 4 months. This will give you the much needed time to make alternative arrangements, perhaps even to pay back the money.

There Are Two Exceptions

You may not get the ‘automatic stay’ order in these two cases,

• The lender may get permission from the bankruptcy court to proceed with the sale. In this case, you may not have the full 3 to 4 months. But even then, you will be able to postpone the sale by 2 months at least.

• The automatic stay order cannot help you if the foreclosure sale notice has already been issued. The lender can file a motion for lifting the stay and can ask the court for permission to schedule a sale.

How Filing for Chapter 13 Bankruptcy Helps

You Chapter 13 bankruptcy filing will let you pay the ‘arrearage’ or unpaid payments over a long time, sometimes up to 5 years. However, you need to be earning enough to make the current mortgage as well as the arrearage payments. You can avoid foreclosure if you are able to make these payments till the end of the repayment plan.

Chapter 13 might also eliminate the payments on your 2nd or 3rd mortgage.

Chapter 7 and Foreclosure

You cannot cancel the foreclosure with Chapter 7 bankruptcy filing. But you will get an exemption from the tax liability on losses a lender incurs when you default.

When you purchased the home, you had to sign two documents – a promissory note for repaying the loan, and a security agreement that can be recorded as a lien for enforcing performance on the promissory note. You can get rid of the personal liability with Chapter 7, but not the lien.

Many of us work hard to make enough money to buy a home. But a lot of people fall behind on the mortgage and lose their home because of an economic downturn. Filing for bankruptcy provides a much-needed second chance. You will get the all-important time to find alternatives, structure a new payment plan and eventually save your home.

Building Your Financial Safety Net From Nothing

We could all do with a financial safety net at some point in our lives. Whether it’s because you’re suffering from the aftermath of mismanaged finances or because you fear what could happen if you fall into debt, it’s understandable that you want to take better control over your money.

A good place to start would be the ever-important financial safety net. However, you can’t just build a safety net out of nothing. If thin air were a good safety net then the world would be a different place, but sadly that’s not the case. A financial safety net needs to be built on money and good habits, which can be two very hard things to hold on to if you’re new to budgeting or financial concerns. So to help you begin your journey to weave your financial safety net, we’ve written this guide that will get you back on your feet and far from the clutches of debt.

What is a financial safety net?

First, let’s clear up any questions that you may have about financial safety nets. The first major question we should answer is: what is a financial safety net?

A financial safety net, as mentioned, is built on money and good habits. Many people incorrectly assume things about the financial safety net and, as a result, they work on the wrong things.

• A financial safety net is NOT about a single savings account
• A financial safety net is NOT about a single insurance policy
• A financial safety net is NOT about having others to fall back on

With this in mind, let’s go through some of the things that create a financial safety net and define the term.

For starters, having a single savings account isn’t the best method for financial security and having multiple savings accounts isn’t much better. A savings account is, in some ways, like an investment. You’re essentially putting money into an account, watching it steadily grow and giving yourself peace of mind that you have money available for dire situations. However, it’s all too easy to withdraw and spend this money accidentally.

Insurance policies are a major part of financial safety nets, but it’s important to remember that you can’t just have a single policy for everything. It takes a lot of time and research to find the right insurance policies for your needs, which is why it’s a good idea to not only take out multiple insurance plans but to fine-tune them to your specific needs.

Lastly, financial safety nets aren’t other people. You can’t rely on friends and family members to help dig you out of a financial pit. Not only is it embarrassing, but you can’t rely on something that isn’t guaranteed. A guaranteed net is something like savings accounts or assets to fall back on, not a family member that might also be in a dire financial situation.

Building the net from nothing

Now let’s talk about ways to build a financial safety net from almost nothing.

1. Start an emergency fund, not a savings account - This will help you build up some funds that you can use for pretty much anything. It’s best to have this in cash form because it’s all too easy to accidentally spend money from a bank account and it’s much more convenient than having to go to a bank to store it every week. Use budgeting to help you save money and try your best to secure a large emergency fund to build the foundation of your safety net.

2. Look for cheaper insurance quotes to help you pay less - This is a fantastic way to save money on all-important insurance plans. Make sure you look around for a quote for auto insurance, home insurance and life insurance if needed. Remember that you can fine-tune your insurance plans depending on your needs. This will help you save money in the long-term and can give you more peace of mind knowing that you have more control over what you’re putting money into.

3. Learn to invest in assets, not a savings account - As mentioned before, savings are a form of investment which is why it’s better to learn how to actually invest money into something as opposed to just sticking it into a savings account. Not only do assets grow in value more rapidly, it’s also harder to accidentally spend that money because it’s not in cash form.

Summary

As you can see, building a financial safety net is more about your knowledge than your funds. You can’t just slap a large amount of money into a savings account and call it a day—it’s much more complicated than that. Study how to save your money, what to invest in and shop around for better insurance quotes to give yourself a financial safety net that is sturdy so you can bounce back from debt.

Is It Time To Fix Your Finances?

Financial freedom might be your goal, but most of us are suffering from financial burdens. More and more people rely on credit just to get by. And, of course, there are many essentials in life, like the car and the home, that are unattainable without a loan. As the cost of living continues to increase, there are fewer disposable dollars to enjoy. But at what time do you need to address these issues? When can you tell that it’s no longer manageable?

No Savings

If you’re not putting anything away for a rainy day anymore, something isn’t quite right. This suggests you are stretched to the very limits of your income. An emergency fund to help you cover the cost of any repairs or replacements that are necessary is essential. If you’ve already started dipping into yours, or it is completely depleted, alarm bells should be ringing. If you have no savings to fall back on at all, then times may be proving very tough right now.

Have a look at your income and your budget. Consider asking for a pay rise or promotion. You might also find a second source of income. Your household budget may be trimmed a little. Check your receipts and see if any cuts can be made. Try to reduce your spend on energy bills by checking lights are off and heating or cooling temperatures are adjusted. 

Red Bills

If you regularly receive red reminder letters from your creditors and service providers, then you might be living beyond your means. Struggling to make payments on time can also be a sign that your budgeting isn’t working out too well right now. Cancel any non-essential services like subscription TV packages or mobile phone contracts.

Are you feeling a lot of stress every time you open your mail box? Apprehension and anxiety about demand letters can make you physically and mentally ill. If you’re worried there will be a knock at the door from a debt collector, it is definitely time to take action. It’s worth speaking to an FDCPA attorney if you are receiving a lot of letters or debt collector visitors. If these creditors are bullying you into ill health, you can’t let it continue.

Not Enough Income

Life changes all the time. Sometimes this can bring about a big change in your income. Whether you lose your job, or you’re not in a position to work as much, you must address the shortfall. Take a detailed look at your household budget. Try to trim as many expenses as you possibly can. 

If the lack of income is going to last a while, you might need to consider getting rid of some of the things you have previously considered to be essential. This might include your car, your TV subscriptions, and clothes shopping. Reduce how often you attend the salon, cancel your gym membership, and shop around for cheaper deals on phones and energy. Consider consolidation of your existing credit to see if you can reduce your debts. In the least it might make repaying them more affordable.

When you’ve cut everything back to the very bare essentials, you can focus your energy on finding additional sources of income. This might include selling unwanted items or selling high-spec to be replaced with budget-lines. When you’re back to full earning potential again, you can start to enjoy the finer things once more.

In the meantime, look for opportunities to earn in different ways. Can you teach or write? Both of these things can be done from home using the internet. Perhaps you are quite arty and can create pictures or crafts that can be sold? Can you take on a part time job out of hours to bolster your salary? If you’re at home with your kids, why not consider qualifying as a childminder so you can be paid to care for other children too?

Sacrificing Meals

Beyond the stress of receiving unpleasant debt collection letters comes the need to make sacrifices. We’ve already talked about living more frugally. But if you’re finding it necessary to go without food or heating at all, then you have serious financial problems. It’s important to seek help and advice as soon as possible. Skipping meals and going cold in your own home is not healthy.

It’s not always easy or even possible to live within your means. The cost of living often increases beyond our wages. Each year the belt is tightened until the cracks start to show. Get the debt collectors off your back by seeking help and reduce your stress. Find more ways to save, and find creative ways to boost your income. It will get better if you take the time to fix your finances.

What Are You Owed?

When you’re trying to balance the budget in the hopes of finding a better financial future for you and your family, there is one crucial area you may overlook. While you’re filling in your income and expenditure, seeing what you have left at the end of the month, and understanding where your money goes - this overlooked area could make a crucial difference.

What are you owed?

You might think on the surface that there’s relatively little that you’re owed. If you receive your wages every month and all seems to be in order, you might think that that’s the end of the story and you don’t need to be concerned.

The truth is, any adult is often owed money from a variety of sources at any one time. As life is busy and few of us have the spare mental energy to keep a logbook of all our outstanding monies, it’s easy - over the years - for these amounts to be forgotten. They often take time and effort we don’t feel we have to track them down. 

However, if you do have money owed to you, then you’re doing your finances no favors by continuing to overlook it. While it might not add up to enough money to solve all of your financial concerns, if you look in the right places, the amounts could add up to a chunk of change that will make a big difference. So where should you be looking?

#1 - Compensation

Compensation comes in many forms. It comes from an online store when they make an error with your order, leaving you waiting for it to be rectified. Then there is the more conventional form of compensation that comes via a car accident lawyer in the aftermath of a crash. Or it could just be a company compensating you for loss of time or not supplying an agreed service, such as your broadband not working as it should, or your phone line having excessive static on it.

It’s not petty to chase down these areas of compensation; they’re all about righting a wrong. If you have suffered through a misfortune that was due to the fault of another person, then you’re well within your rights to ensure you get what you deserve. 

#2 - Outstanding Loans

A friend asking if you can spot them $10 for dinner; your sister asking to borrow $100 which she’ll pay back on her next payday; another friend promising to pay you back the $50 for the concert tickets but never handing over the cash - they all add up. Just there there are three situations that many of us find ourselves in, totaling $160 - or at least 20 hours work if you earn the minimum wage.

Asking people for money back doesn’t need to be awkward. Do it by email, framing the problem as an embarrassed request, stressing that your own finances are really tight and anything they could offer back would be hugely appreciated. You loaned it on the expectation you would see that cash again; don’t be embarrassed about getting what rightfully belongs to you.

#3 - Work Hours

We mentioned your paycheck, but how often do you scrutinize what exactly you have been paid for? It’s worth making sure everything - including any overtime or late nights - has been paid as it should have been. If you find a discrepancy, raise it with the accounting team at your work; they should rectify it ASAP.

Major Life Decisions: Know When To Invest And When To Avoid

Navigating your way through life is challenging enough, so making major financial decisions will feel daunting. However, if you use your money wisely and make sure that you’re as well-informed as possible when it comes to where to invest it; the rewards can be well worth the initial time and effort. The following are some areas to consider if you’re thinking about what to do with your money, and will help you to decide on where to invest, and more importantly, where you should avoid putting your cash. 

Education

Education is often an extremely effective way to invest in your personal growth, along with your qualifications and career development. Therefore, if you’re sat on the fence when it comes to starting a new course or taking on extra training, and you’re unsure whether to spend your money or not; you need to weigh up the potential results. If you are stuck in a job that doesn’t fulfill you on any level, because you can’t pay your bills and receive no job satisfaction or development; it’s time to start thinking about retraining. Take into account your current experience and qualifications before you pay to begin something. You don’t want to have completed a college course, only to find out that you lack in the other areas needed for a particular job role.

If you’re able to start a course or degree and have researched thoroughly into how it will lead you towards a job and career that you’re happy with; it’ll be worth both your time and investment. You will have to sacrifice things as you study; you may have to downsize in your accommodation and limit your lifestyle so that you can afford to retrain and keep up with your deadlines. You might also have to continue to work to pay your rent and bills alongside regularly visiting a college; so your life will take a major impact, and it won’t be an easy road. However, once you’ve worked out your time management and you’re out the other side and working in a job that fulfills you and pays better than your previous roles, you’ll realize how smart your decision to make a change was and how much you appreciate it.

There are some career paths that allow you to train as you work. Therefore if you’re prepared to get stuck in at the very bottom of the ladder and work your way up, your investment in your new position will pay off in the long run. Bear in mind that there are ways to save the money that you are currently earning, which will give you the freedom to take some time out to study and learn in the near future; it might just be a case of a little patience and a lot of determination to get where you want to be. If you’re willing to invest in education and training, you want a career change and improvement, but you’re a little stuck on where to begin; take a look here: http://www.careershifters.org/expert-advice/how-to-change-career-when-you-have-no-idea-what-youre-doing for some advice and tips.

Property

So, you’ve investing your time and money into getting your career to where you want it, and you’re earning a regular salary or wage; now’s the time to start thinking about building up your property and any long term real estate investments you could make. Property can either break or make you financially; so, to ensure you’ve made the right investment for a comfortable life, you’ll need to do your research and make some smart decisions. Flipping homes can be a lucrative business to invest in; however, you’ll need to know the market like the back of your hand and be able to understand the processes that are involved in a profitable sale.

If you feel that you should be relocating to a new area, or have fallen on difficult financial times; property can be your money savior. You can seek help and advice on how to sell your home for the best price, and there are companies who will buy your property from you, no matter what condition it’s in. Handing over the responsibility of resale to another party could give you the income of cash that you need as soon as possible and will take the time, stress, and strains away from doing it all yourself; making it a valuable investment.

The real estate market waits for no-one, so take the chance to buy and sell when you can; but, you must ensure that you’re making informed choices and aren’t swayed by impulse. Rash decisions and choices when it comes to property will cost you a lot in the long run; however, if you’re smart about it, you’ll have set up te beginning of a comfortable life for you and your family. For more tips and ideas on real estate investment, take a look here: http://www.huffingtonpost.com/aj-agrawal/5-basic-tips-for-investing-in-real-estate_b_9072532.html and ensure that you’re making all the right moves in the property market.

If you are considering buying your first home; take into account the location and whether the prices are likely to rise before you plan to move on, so that you know you’re money will and assets value will increase. Avoid houses that are in declining areas, or have too much work that needs doing to them, just because they’re a quick and cheap sale; you’ll regret it in the long run and will have wasted your cash. Choose a property that will allow you and your family to grow over the next few years, and that should increase in value steadily with the rest of the market, so that you can sell with ease in the future. Know when to call in the professionals to buy your house, or to renovate for resale, so that you don’t waste any time and more of your money in trying to do it all yourself. 

Transport

You might think that transportation, or more specifically your vehicle of choice, is an unusual thing to put on a list about major life investments. However, a car will lose value the second that you drive it away from the showroom; so it’s worth making extra effort to choose one wisely and ensure that it will last for the years ahead. Unless you have plenty of cash to splash on whatever you like; you need to make a list of all the factors that your mode of transport will impact.

If you commute each day, whether it’s to work or college; work out whether it would be cost-effective to run a car, or you’d be better off investing in a long term pass for public transport. Take into account the convenience factors too; think about whether you’ll be able to park your car for free, or if you’ll have to pay for a parking spot each day, and how that compares to your public transportation option. If the convenience of driving to work each day outweighs any savings you’ll make taking the bus; then a car might be the correct choice for you. However, if running a vehicle will make a major dent in your wallet each month, and you could quarter the expense by getting on the train in the morning; reconsider visiting that car showroom this weekend and keep thinking of the money you're saving by not having one.

If you do decide that a car is a wise investment; consider secondhand and fuel-efficient options that will help you to save your hard-earned money. For some tips and ideas on what to look out for when you’re buying a vehicle, take a look here so you can make a smart choice. Taking good care of your car, and maintaining it properly, will ensure that you’ll be more likely to get a decent price for it when you decide to sell and upgrade your vehicle. Regular garage visits, washing the car inside and out, and protecting it from extreme and harsh weather conditions are a great place to start when looking after your investment.

Experiences

Vacations, traveling, and seeing what the world has to offer, will enrich your life and give you an education that no institution ever could. However, you need to ensure that you have the cash in the bank to set off, and crucially, you’ll need to prepare and plan for when you return. Short trips and vacations are the perfect way to get a taster of places that you want to spend time in, and you’ll be able to return back to work and home life with ease. Take advantage of special deals and offers on traveling across the country and overseas when they pop up, and try to have a contingency in your bank account for when these discounts pop up.

If you feel that you want to spend more time traveling and exploring new environments, then much like when you saved to retrain; you’ll need to regularly put money aside to fund a future trip. You can always work abroad, as long as you’ve sorted out the correct visas and permits; however, it’s always a wise idea to have a buffer put away. You’ll need to have a life when you return, so saving while you’re away is another way to earn some extra income, and will give you time to figure things out when you’re back in the country. As long as you work hard and make smart spending choices; there’s no reason you can’t lead an enjoyable and fruitful life and be financially comfortable too.

Don't Let Debt Defeat Your Family

Debt is the last thing anyone really needs - but it’s certainly a much more sensitive problem when a family is in debt. Finances are becoming a more common worry among American families than ever, with debt being particularly (and worryingly) common among the population. While debt shouldn’t always be considered a terrible thing - there are some benefits to being in small amounts of debt when it comes to building a good credit rating, as long as you’re on top of the matter - it can become an overwhelming issue for many families.

It’s been estimated that as many as eight in every ten Americans are in debt, with the majority of these people being a parent living with children. These statistics probably won’t look any better in a few more years once more students have graduated from college with a bunch of student debt on their shoulders!

If your family is in debt, it’s important to understand that your situation may not be as dire as you imagine it to be. Again, the idea of being in debt has become such a terrifying prospect that a lot of people end up worrying too much about it. But if you know that your family is in significant debt, then you need to start taking action before that debt overwhelms you. Let’s have a quick look at the ways in which you can ease the stress of this debt on your family.

Talk to the experts

The type of professional expert in this field that you should consider talking to will depend on your specific circumstances. You may need to talk to a standard financial advisor, or, if the situation is a little more complex and involves property or divorce, you might need to enlist the help of family law services. But a lot of families won’t consider this option at all. After all, hiring such help costs money - and spending more money doesn’t seem wise when you’re in debt, right? You’ll need to consider your situation carefully and perhaps look into any free consultation you can get, but don’t dismiss this idea. Experts may have the tools and resources you need to ease the debt.

Consolidation

One of the main reasons that debt becomes so overwhelming for a family isn’t always how much is owed - it’s how many institutions that money is owed to. Debt consolidation brings several debts together into one debt, which can be much easier to deal with. While this doesn’t generally reduce the amount that you owe, it can help alleviate much of the stress associated with debt - which is a more important element of dealing with this situation than you might think. Research this option to see if it’s right for you.

Negotiation and settlement

The lender or merchant to whom you are in debt may be more willing to discuss options with you regarding your loan than you may think. This is why you shouldn’t assume that negotiation and, eventually, settlement of your debt is completely off the table. While there’s no guarantee that a given institution will be willing to let you settle the debt for less than you borrowed, many are willing to cut their losses if they feel your family really won’t be able to pay them back.

Find Out Whether You're Secure In the Rental Market

With property prices so high it can be, it can be difficult to enter the property market. This leaves many renters in a predicament of insecurity when it comes to their long term home. The current generation of millennials are labelled as many as ‘generation rent’ as the property market has been pushed too high for many people to even consider putting a deposit on their own property, let alone plan for retirement. With such a high proportion of young renters and very little to protect those renters, let’s have a look at some of the risks involved in renting a property and how to avoid them.

Eviction is the biggest concern to most renters, and with a bad economy and high house prices many renters can find themselves evicted suddenly. Unfortunately there is not much that can be done about a sudden eviction, however there are strategies to deal with the stress that comes along with it. If you find yourself in a situation where the landlord wants possession of their property, it is important to remain calm. This can be difficult when the rental market is so competitive, however staying calm will allow you to assess your options. 

If you need to leave a previous rental property suddenly and have not found somewhere to stay, ask around with your friends or family and see if you can stay with someone for a couple of weeks. Once you have a temporary roof over your head you can plan your attack. Although the idea of sharing with someone can seem tedious to most people who, it can be a great alternative while you find your feet and try and find the perfect property to rent independently. If you have a family, possibly speak to the landlord and see if you can negotiate the time you move out. If you are still unhappy with the results, as a tenant you have a legal right to dispute any decisions made, as long as you do it within the designated time frame.

Another growing concern in the rental market is the security of a rental property from burglaries or damages. Many people dismiss the idea of contents insurance when they rent as they often think they won’t be eligible as a renter. However, there are services available that provide contents insurance to renters. A renters insurance quote is often free and can provide advice on how to protect their possession in the case of not only burgalaries, but also flooding and storm damage. Despite many people thinking it is not necessary, it does supply an extra layer of security and peace of mind for many when purchased.

If you do find yourself in a difficult predicament in the rental market it is best to get legal advice. Remember to stay calm and negotiate your rights. Protecting yourself from an early onset can alleviate your stress from accidental damage or robberies, meaning you can claim for the damages that have occurred. Hopefully you never find yourself in this predicament, however if you do remember these tips.

Great Ways To Help You Deal With Unexpected Driving Costs

As drivers already know, there are many costs involved when it comes to owning a car. From fuel costs to breakdown charges, your bank balance is going to suffer. Should you rely on your car on a daily basis, not being able to drive for a few days because you can’t afford the upkeep is going to make your life difficult.

To avoid unexpected costs, here are a few tips that might help you now and in the future.

Buy a roadworthy vehicle

Not many of us can afford a brand new car, so going second-hand may be the way to go. However, you need to make sure the car is safe to drive before purchasing it, and you should check for any underlying issues. If you don’t feel able to make those checks yourself, or you aren’t sure of the right questions to ask the seller, bring along somebody who can. A trusted friend or a qualified motor technician will be able to advise you if the car is an advisable buy or a potential deathtrap.

Perform regular maintenance

You should get your car serviced at least once a year to offset any potential problems down the line. However, there are ways you can maintain your car without having a lot of technical experience. For example, you should check your tyre pressure on a regular basis to avoid the possibility of a blowout on the road. Make sure you top up your oil to the required level to keep your engine running smoothly. Check your lights and replace the bulbs when they die. These small jobs don’t take long and will alleviate the possibility of an accident and further expenses.

Many people take a class in car maintenance, so despite the added costs to you, having a little knowhow in taking care of your vehicle will save you money, avoiding the need to hire an expensive mechanic with all their added (and confusing) charges.

Protect your vehicle

You need to take out insurance to legally be able to drive. However, you should shop around and find a better deal if you are currently paying a lot on your premium. Don’t be faithful to the same company every year, as they are only interested in your money and not your friendship. When it comes time to renew, compare their new prices with other companies and make the switch if it suits your motoring needs, as well as your wallet.

Breakdown cover

While insurance is compulsory, breakdown cover isn’t, but it is still a worthwhile investment. You never know when your car might break down, so you don’t want to be left stranded in the middle of nowhere. Having cover in place will give you peace of mind and reduce the cost of repairs. So while you may resent the monthly expense when everything's going fine, you never know when disaster might strike. 

Legal cover

We all make mistakes, and there will be a time when you are involved in a road accident. This may be through no fault of your own, so you will want to reclaim any compensation owed for damages to you and your vehicle. Unfortunately, you may be the cause of the accident, and you are liable for any court costs if the third party takes legal action against you. In any case, you need a good attorney to help you, so consider a firm such as Priale & Racine who will fight your corner. Being involved in an accident is stressful enough without the expensive implications, so the right legal cover will alleviate many of your anxieties.

Fuel costs

Don’t rely on your regular gas station for your fuel, but shop around for anywhere with a cheaper option. Obviously, you don’t want to drive miles out of your way for only a small saving, so use your common sense.

One of the best ways to save money is to not use your car at all. When driving around town, you are wasting more fuel by stopping at regular intervals for traffic lights and pedestrians. You might want to do your bank balance a favor, and your health, by leaving the car at home once in awhile and taking a walk if you only need to travel a short distance. It may be that public transport is also a less expensive option when making the daily commute to work, so do a little research and save yourself some money.

Buy a new car

We have already advocated the benefits of a second-hand car, but despite the initial outlay, a new car may be the better option. With advances in technology, many new cars are more fuel efficient and will cost less to tax because of low carbon emissions. They will also come with a lengthy warranty, so any unexpected repair costs can be covered if the fault is with the manufacturer.

You don’t need to pay for the car in one go, as there are finance deals available. Of course, you need to factor the cost of interest into the equation, so find an affordable option that suits you. Buying a used car is cheaper in the short-term but there is a higher risk of things going wrong, and you may need to replace your car sooner than you like. A new model, despite the higher price tag, should keep you going for a long time to come.

Be a better driver

Quite simply, the way you drive can determine how much money you need to pay out in the future. Being a safe driver is going to alleviate the risk of accidents. This means taking care on the road, not driving under the influence of drugs and alcohol, and avoiding unnecessary distractions such as your smartphone.

The way you handle your car is also important. You waste fuel through hard braking and rapid acceleration. Take it easy on sharp corners, avoiding the urge to skid, no matter how much of a daredevil you are. Your tyres and your handbrake will thank you for your care.