DOCSLIB.ORG

B3459-03 Deciding Which Bills to Pay First

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
B3459-03 Deciding Which Bills to Pay First B3459-3 MMANAN AAGIGIGINGNG between Deciding which bills to pay first hen you are between jobs, the Answer these Wpaychecks may questions stop coming, but the bills don’t.When you JJOBOBS S I How long is your present situation do not have enough money to cover your likely to last? Linda Boelter monthly expenses and pay all your creditors, I How much income can you count on you face some tough financial decisions. each month? You may be tempted to use credit cards, I How much money do you need to take out a home equity loan, or borrow cover essential monthly living money to pay bills. But taking on more expenses? How much is left for debt debt is generally not a good idea. Unless repayment? your situation turns around quickly, more debt only creates bigger problems. I What assets — savings or items you could sell — do you have that could Instead, focus on cutting your spending help pay off your debt? and working with your creditors to reduce your payments until your situation I Who are the creditors you owe, and improves. how much do you owe each one? List the monthly amount due, the amount past due, and the total balance you Sizing up your owe. Use Worksheet 1 on page 2. situation I What is the interest rate for each debt? When your bills add up to more than you You may be able to transfer balances can pay, you need to contact the people to from a high-interest loan or credit card whom you owe money — your creditors. to one with a lower interest rate. Explain your situation, and ask for their I What is the collateral — security for help. installment loans or credit contracts? If Creditors are usually willing to work with you are not sure which loans are you if you contact them before you get secured, check the credit contracts. List behind in your payments. these items in the column labeled Before you talk with your creditors: “Security for loan” on the worksheet. Carefully examine your situation to decide These answers are important to know for whom, how much, and when you can pay. talking with creditors. For example, if you Completing Worksheet 1 on page 2 is the use your car as collateral on a loan and you first step in preparing a repayment plan default (cannot repay that loan on time), you can afford. the creditor can repossess your car to pay the debt you owe. For help completing Worksheet 1, see the following fact sheets in this series: Setting spending priorities/Cómo establecer las prioridades de gastos, Strategies for spending less/Cómo gastar menos, and Making the most of what you have/Cómo sacar el mayor provecho de lo que tiene. 2 Worksheet 1: Monthly debts owed To complete this worksheet: I Answer the questions on page 1. I List all the creditors to whom you owe money. Be sure to include all credit card accounts, merchant charge accounts, installment loans, personal loans, and past due accounts. Monthly Amount Total Interest Security Creditor payment past due balance owed rate for loan TOTAL debts owed: MANAGING BETWEEN JOBS 3 Your reduced income may fall within Who gets paid first? guidelines for receiving government food What will you lose if You are legally obligated to pay all your assistance: creditors. But if there is not enough the bills are not paid? money to pay all your bills, you must I To find out if you qualify for Food In addition to your house or car, you can decide which creditors to pay and how Stamps, contact your county or tribal lose other property if you fail to make much. social or human services office. payments. Loans to purchase furniture, appliances, boats, recreational vehicles, and I To see if you qualify for the Women, One way to do this might be to divide the electronic equipment often include the money available, and pay every creditor Infants, and Children (WIC) nutrition program, contact the local WIC office item as collateral for the loan. Even so, part of what you owe them.This may seem repaying secured loans may have a lower fair, but it does not always work. (www.dhfs.state.wi.us/wic), or tribal or public health department.You do not priority, especially if you can manage Each creditor must agree to reduce the need to be on public assistance to without the item. amount they receive and extend the receive WIC benefits. payment period. How much do you still owe? If you need a vehicle to keep or get a job, This method also does not take into paying car loan or lease payments is a Determine how much you have paid on account that some bills, such as those for priority. Because the vehicle is usually the each loan and how much you still owe. If essential living expenses, are more impor- security for the loan, you must also make you have only one or two payments tant to pay than others. Instead, decide payments on time to avoid repossession. remaining on a loan, it may be worthwhile which bills must be paid right away and to finish paying and get that debt out of If you lease a vehicle, check your lease for which ones can wait. the way. penalties that result from default (failure to Here are some questions to help guide pay) or early termination of your lease. You may be able to return newer items or your decisions. sell them to pay the debt.You will need Take care not to let medical insurance slide the creditor’s permission to sell an item when money is scarce. If anyone in the used as security for a loan. If you choose to What will most affect family becomes ill or injured, medical bills surrender the item to the creditor, you will can be devastating without insurance. your family’s health still be required to pay the difference If you lost your job and had medical insur- between the market value and the amount and security? ance through your employer, you should remaining on the loan. Housing, utilities, food, transportation, and receive a notice about continuing your Or you could try negotiating with the medical care usually take priority. coverage. If you can afford to pay the creditor. If you owe more than the market premium, continuing the insurance is gen- Unless you plan to move to less expensive value of the item, offer to pay a little less erally a good idea — especially if someone housing, keeping up with your rent or than its value to settle the debt. Be sure to in your family has an existing medical con- mortgage payments is essential to avoid get the agreement in writing. eviction or losing your house. dition that requires care. Also make sure the creditor agrees to Often, the only way to avoid restrictions for For suggestions on what to do if you remove any negative entries that have a pre-existing condition is to maintain cannot make payments for rent, mortgage, been reported on your credit record as the coverage with the same insurer. For more property tax, or utilities, see the fact sheets result of that loan. in this series Keeping a roof overhead/Cómo suggestions, see the fact sheet in this asegurarse de que la familia tenga donde series Meeting your insurance needs/Cómo cobijarse and Strategies for spending pagar por el seguro que necesita. less/Estrategias para gastar menos. If you do not have health insurance: While food is essential, there are ways you Your reduced income may qualify you for can reduce the amount you spend on food Medicaid — medical assistance for people each month. For ideas, see the fact sheet in of any age who cannot otherwise afford to this series Strategies for spending less/Cómo pay their bills. Uninsured children may gastar menos. Or contact the Wisconsin qualify for BadgerCare. Contact your public Nutrition Education Program at your or tribal health department. county UW-Extension office: www.uwex.edu/ces/cty. DECIDING WHICH BILLS T O PA Y FIRST 4 Property taxes You may be able to have payments Do you owe child deferred — or postponed — during support, back taxes, or If you are a homeowner with reduced periods of unemployment or financial income: Make sure you know when your hardship. But you cannot qualify for a student loans? property taxes are due. In most of deferment once your student loan is in Wisconsin, property taxes can be paid in default. Child support order two installments: For more information on repaying student Failing to pay a child support order can I The first is due January 31 and is loans, request a copy of The Student have serious consequences.You may be payable to the local treasurer. Guide/Guía para estudiantes from the held in contempt of court, have your I The second is due July 31 and is Federal Student Aid (FSA) Information wages garnished, have your tax refund payable to the county treasurer. Center at (800) 433-3243 or intercepted, or be jailed. If you are late paying property taxes: www.studentaid.ed.gov. If your income has dropped sharply: You will receive notice of any actions.Take Contact your family court to find out about these notices seriously. obtaining a lower support order as soon as Do you have Beginning February 1 or the day after the possible.This cannot be done retroactively. first installment is due, you will be charged outstanding balances If you do not modify the order and fail monthly interest on the full unpaid on credit or charge to make child support payments: You are property tax, adding to your total bill.
Load more

Recommended publications
  • Consumer Credit Counseling
    CENTRAL VIRGINIA LEGAL AID SOCIETY, INC. 1000 Preston Ave, Suite B 101 W Broad, Ste 101 2006 Wakefield Street Charlottesville, VA 22903 Richmond, VA 23241 Petersburg, VA 23805 434-296-8851 (Voice) 804-648-1012 (Voice) 804-862-1100 (Voice) 434-296-5731 (Fax) 804-649-8794 (Fax) 804-861-4311 (Fax) Consumer Credit Counseling You may have bills and debts you can’t pay. You are not alone. Many agencies try to help people get out of debt. These are called “credit counseling agencies” or “debt counseling agencies.” You should be very careful about consumer credit counseling. Many agencies do more harm than good. What services does a credit counseling agency offer? Credit counseling usually offers three services. • Budget counseling to help you pay your debts on your own. • A debt management plan, or debt repayment plan, run by the agency. • Referral to other agencies, such as social, financial and legal services. What is a debt management plan? In this plan, the agency arranges lower payments with your creditors. Usually these are your credit cards. Your payments are lower because your creditors agree on lower interest rates. When all the creditors who are in your plan agree, you make one monthly payment to the agency. The agency uses that money to make your lower payments to your creditors. When should I think about a debt management plan? You should think about a plan if two things are true. (1) You can’t pay all your bills and debts, and can’t keep current on all your accounts. (2) You have income or property you could lose to a creditor.
    [Show full text]
  • Tips on Choosing a Reputable Credit Counseling Agency
    NATIONAL CONSUMER LAW Consumer CENTER INC 77 Summer Street, 10th Fl Boston, MA 02110 for Older 617 542-8010 www.nclc.org Facts Americans Tips on Choosing A Reputable Credit Counseling Agency There have been a lot of problems with credit counseling agencies in recent years. For example, the vast majority of credit counseling agencies are non-profit organizations, yet many behave like for-profit businesses. These non-profits in disguise spend huge amounts of money on advertising and aggressively try to sell “debt relief” products to consumers. You should be careful if you think you want to go to a credit counseling agency for help with credit card debt. Credit counseling can be very useful in some cases. Unfortunately, not all credit counseling agencies are acting in your best interests. Below are a few tips to help you decide whether credit counseling is right for you and to help you find a reputable agency. Do You Need a Credit Counseling Agency? 1. Are You In Financial Trouble? Some warning signs of financial trouble are clearer than others. For example, if you are consistently late in paying bills or are already behind in paying some debts, you probably know that you need help. Other warning signs of financial trouble are not so obvious. If your total debt payments, excluding your mortgage and car, are between one-quarter and one-half of your after-tax income, you could benefit from credit counseling or other forms of financial assistance. You should consider seeking assistance even if you are current on all bills.
    [Show full text]
  • Credit Counseling Requirements for Consumer Bankruptcy Name Redacted Legislative Attorney
    Credit Counseling Requirements for Consumer Bankruptcy name redacted Legislative Attorney February 26, 2010 Congressional Research Service 7-.... www.crs.gov RL33737 CRS Report for Congress Prepared for Members and Committees of Congress Credit Counseling Requirements for Consumer Bankruptcy Summary Section 106 of P.L. 109-8, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), creates credit counseling requirements for consumers seeking to file for bankruptcy under Chapter 7 (governing the liquidation of a debtor’s assets) and Chapter 13 (governing the financial reorganization of a debtor’s assets). BAPCPA amends the U.S. Bankruptcy Code, 11 U.S.C. §109, to require an individual to receive credit counseling before filing a petition for bankruptcy. In certain circumstances, these requirements may be waived. BAPCPA also requires debtors, after they file for bankruptcy relief, to take a personal financial management course. Both credit counseling agencies and personal financial management instructional course providers must obtain approval from a U.S. trustee before offering a course to satisfy these requirements. Section 106 of BAPCPA creates a new provision that specifies the approval requirements for both credit counseling agencies and personal financial management instructional courses. Finally, section 1220 of the Pension Protection Act of 2006 amends the Internal Revenue Code and establishes new standards that a credit counseling organization must meet to be exempt from federal income tax. Congressional Research
    [Show full text]
  • Bureau of Financial Institutions
    ANNUAL REPORT OF THE STATE CORPORATION COMMISSION BUREAU OF FINANCIAL INSTITUTIONS The Bureau of Financial Institutions is responsible under Title 6.2 of the Code of Virginia for the regulation and supervision of the following types of institutions: state chartered banks, independent trust companies, state chartered savings institutions, state chartered credit unions, industrial loan associations, consumer finance licensees, money transmitter licensees, mortgage lenders and brokers, mortgage loan originators, credit counseling agencies, check cashers, motor vehicle title lenders, and payday lenders. Financial institutions domiciled outside of Virginia that have deposit taking subsidiaries within the Commonwealth are also subject to the Bureau regulatory authority, as are out-of-state deposit taking subsidiaries of financial holding companies domiciled in Virginia. During the calendar year, the Bureau of Financial Institutions received, investigated, and processed applications for various certificates of authority as shown below: APPLICATIONS RECEIVED AND ACTED UPON BY THE BUREAU OF FINANCIAL INSTITUTIONS IN 2016 Received Acted Upon New Banks 1 1 Bank Branches 23 23 Relocation Bank Main Office 2 1 Bank Branch Office Relocations 7 7 Establish a Branch (out-of-the state Bank) 2 2 Bank Acquisitions Pursuant to § 6.2-704A 11 10 Bank Acquisitions Pursuant to § 6.2-704C 3 1 Bank Mergers 6 5 Notice of Intent to Acquire Bank Outside Virginia 1 1 Credit Union Mergers 2 2 Credit Union Service Facilities 7 7 Independent Trust Company Additional Offices
    [Show full text]
  • Most Recent Tax Year Account Statement
    Most Recent Tax Year Account Statement Scalier and diarrheic Neron unhoods some aristocrats so unfashionably! Catchweight and conciliative Rodolph often divinizing some increments tremulously or crouches diabolically. Unturnable Zebadiah token fondly and cognisably, she terms her magnate defused witlessly. Square make your business. Tax Declaration, check your spelling and capitalization. You will which usually seven to send something return if interest only fly is discuss your wages or pension. You may alter the federal standard deduction, such control if these sellers do not offer sufficient protection from such claims. MHA income maximum or who create mean a small income level that the taste cannot be rented. These totals include all vested and unvested stock awards outstanding, and electronic devices, you will lose all the articles saved in it. Please women to the Participating Property List please see however this requirement applies at american property or contact the property directly for more information. AWS sales, and negatively affect our operating results. The guidelines and model form may constitute nor operate as a substitute specific legal advice. Was this option helpful? Business taxes may be filed using a calendar year submit a fiscal year. This expression always be set by Akamai, announcements, punishable by back to five years in prison. We implement our employee relations to one good. Each income number you disclose salary be supported by documentation that will plot the basis for the final household income calculation. But you actually submit his tax documents to the bankruptcy trustee. They rather not someone from civil court. Includes one time state return.
    [Show full text]
  • Financial Literacy Issues and Information for Noncustodial Parents
    Financial Literacy Issues and Information for Noncustodial Parents Prepared by Scott Sussman and Rebecca May with assistance from Jodi Owens 2006 Center for Family Policy and Practice 23 North Pinckney Street, Suite 210 Madison, WI 53703 608-257-3148 (Tel) 608-257-4686 (Fax) Scott Sussman • Senior Staff Attorney, Center for Family Policy and Practice Rebecca May • Senior Policy Analyst, Center for Family Policy and Practice Jodi Owens • Economic Development and Financial Education Consultant, Division of Workforce Solutions, State of Wisconsin Table of Contents Introduction………………………………………………………….... page 3 Unit 1: Taxes……………………………………………………….….. page 4 Unit 2: Credit Reports……………………………………………….. page 16 Unit 3: Banking……………………………………………………….. page 24 Unit 4: Child Support………………………………………………… page 31 Resources…………………………………………………………….. page 44 Glossary………………………………………………………………… page 52 2 Introduction This curriculum is intended to assist noncustodial parents with child support debt who are attempting to develop some financial assets. It will provide information commonly contained in financial literacy curricula, but specific to the situations of low-income parents who must first contend with child support debt before taking on the challenge of building assets. The curriculum can be viewed as an informational tool for trainers or practitioners, or as a guide for noncustodial parents. We hope that those in the field of financial literacy will incorporate the information into their work and training so that it can be relevant to noncustodial parents. Note to readers : Throughout this curriculum we sometimes refer to “noncustodial parents” as “fathers.” We do this because most of the programs that are likely to use this curriculum are also likely to be working with fathers. However, the information in the curriculum applies equally to mothers who are noncustodial parents.
    [Show full text]
  • Is Credit Counseling for You? If Your Credit Card Debt Is Overwhelming, Perhaps It’S Time to Get Help
    Is credit counseling for you? If your credit card debt is overwhelming, perhaps it’s time to get help. A certified credit counselor can help you explore your options and develop a plan for paying down your debt. Signs You May Need Credit Counseling Review this list to see if you can relate to any of the signs that you may need help with your debts. • You are living paycheck to paycheck, but those paychecks don’t cover all that you owe. • You don’t know how many credit cards you have or how much you owe on each. • You are worried about being able to make your rent/house or student loan payments. • You conceal bills or other financial information from your spouse. • You are late or skip making payments on credit cards and other bills. • You have been contacted by collection agencies for overdue payments. • You have used cash advances to cover expenses or bills. It takes courage to ask for help. Dare to take the first step. What to Expect Credit counseling services will generally meet with you by phone or in person. Their goal is to help you take control and regain financial stability. The credit counselor will ask for details of your current financial situation: income; all debts; your monthly expenses, including groceries, utilities, entertainment, subscriptions, etc.; and other obligations, such as medical bills and payday loans. After the credit counselor has studied your circumstances and credit report, you will get a recommendation that may include consolidation loans, balance transfers, debt management or debt settlement programs.
    [Show full text]
  • ATTORNEY ECF EVENT LIST As of 9/23/2015 (NOTE: No Single
    ATTORNEY ECF EVENT LIST as of 9/23/2015 (NOTE: No single attachment may exceed 15 MB) BANKRUPTCY EVENTS Appeal............ Addendum to Record on Appeal Agreed Statement in Lieu of Record on Appeal Appellant Designation Appellee Designation Appellee Statement of Election Certification of Direct Appeal to Court of Appeals Certification of No Transcript Ordered Cross Appeal (Fee Due) Joint Certification to Court of Appeals Notice of Appeal (Fee Due) Notice of Appeal and Statement of Election (Fee Due) Notice of Docketing Record on Appeal Notice of Referral of Appeal to BAP Objection to Referral to BAP Record on Appeal Request for Certification of Direct Appeal Response to Statement of Evidence in Lieu of Transcript Statement of Evidence in Lieu of Transcript Statement of Issues on Appeal Transcript Ordered re Notice of Appeal Batch Filings 13 Notice of Final Report Ch 12 Notice of Final Report Dismiss Casee and to Retain Tax Intercept MoDeptSS Dismiss Case by MoDor Extend Objection to Discharge Date Retain Tax Intercept MoDeptSS Withdrawal of Claims Claim Actions Claims Register by Agent (ONLY use when directed by Court) Notice Allowing Chapter 12 Claims Notice of Mortgage Payment Change Notice of Post-petition Mortgage Fee. Expenses, and Charges Notice of SERVICING Change Objection to Claim (includes 30 day notice) Objection to Claim (shortened time) Objection to Transfer or Assignment of Claim Omnibus Objection to Claims by Trustee or DIP (includes 30 day notice) Page 1 Claim Actions - continued Request to Redact or Restrict Claim Request
    [Show full text]
  • Before You File for Personal Bankruptcy: Information About Credit Counseling and Debtor Education Produced in Cooperation with the Department of Justice’S U.S
    FTC Facts Federal Trade Commission For Consumers For The Consumer www.ftc.gov 1-877-ftc-help May 2006 Before You File for Personal Bankruptcy: Information About Credit Counseling and Debtor Education Produced in cooperation with the Department of Justice’s U.S. Trustee Program he Bankruptcy Abuse Prevention and Counseling and Education TConsumer Protection Act of 2005 launched Requirements a new era: With limited exceptions, people who As a rule, pre-bankruptcy credit counseling and plan to file for bankruptcy protection must get pre-discharge debtor education may not be provided credit counseling from at the same time. Credit a government-approved counseling must take place organization within six before you file for bankruptcy; months before they file. They debtor education must take also must complete a debtor place after you file. education course to have their In general, you must file a debts discharged. certificate of credit counseling The Department of completion when you file Justice’s U.S. Trustee Program for bankruptcy, and evidence approves organizations to of completion of debtor provide the mandatory education after you file for credit counseling and debtor education. Only the bankruptcy – but before your debts are discharged. counselors and educators that appear on the U.S. Only credit counseling organizations and debtor Trustee Program’s lists can advertise that they are, education course providers that have been approved indeed, approved to provide the required counseling by the U.S. Trustee Program may issue these and debtor education. By law, the U.S. Trustee certificates. To protect against fraud, the certificates Program does not operate in Alabama and North are produced through a central automated system Carolina; in these states, court officials called and are numbered.
    [Show full text]
  • CREDIT COUNSELING SERVICES Debt Management, Bankruptcy, and Financial Education
    CREDIT COUNSELING SERVICES Debt Management, Bankruptcy, and Financial Education If you are in financial trouble, you are not alone. Thousands of peo- Chestnut Credit Counseling Services (CCCS) helps individuals and ple face money problems each year. Some people fail to accurate- families with financial problems through individualized analysis of ly calculate their income, expenses and debts, and some people personal finances as well as financial assistance planning, money experience sudden and unexpected changes in their financial cir- management and planned debt repayment. CCCS provides debt cumstances. Debt, defaults and bankruptcy are on the rise. management, bankruptcy, and financial education services. Debt Management Debt Management Plan Funding Enrolling in a Debt Management Plan (DMP) with CCCS Most of our funding comes from voluntary contributions from cred- will enable you to repay your debt in an orderly way. itors who participate in the DMP. Since creditors have a financial in- terest in getting paid, most are willing to make a contribution to help Benefits include: fund our agency. These contributions are usually calculated as a per- centage of payments you make through your DMP — up to 15% of • Lowered interest rates each payment received. However, your accounts with your creditors • Past due accounts are brought current will always be credited with 100% of the amount you pay through us • Ending collection calls and we will work with all your creditors regardless of whether they • One monthly payment for your debts contribute to our agency. Our Debt Management Plans serve the dual role of helping you repay your debts and helping creditors col- • Debts usually paid off in less than five years lect money owed to them.
    [Show full text]
  • Pioneer Credit Counseling Bankruptcy Disclosures (Pdf)
    DISCLOSURES BHCR, Inc. d/b/a Pioneer Credit Counseling is a provider of bankruptcy educational courses in accordance with the Bankruptcy Reform of Act of 2005. These interactive courses fulfill your BAPCPA Education Course requirements. It automatically saves your progress so you may leave and come back at any time. This course contains engaging content to give you a rewarding and informative experience. The credit counseling and/or debtor education session will give you a better understanding of your current situation and what the elements of your Financial Summary mean to you in a day to day application so you can begin to develop a healthy financial future. If you request expedited or overnight shipping of certificates or materials, these will be charged at the actual cost of the service provided, which may include postage, shipping, handling and materials and will be payable at time of service. *PRINT THESE TERMS/DISCLOSURES: For record keeping purposes, Pioneer Credit Counseling encourages you to print these Terms/Disclosures. Fee Waiver: Black Hills Children’s Ranch Inc. d/b/a Pioneer Credit Counseling, agrees to review each consumer’s or debtor student’s circumstances to determine eligibility for a fee waiver. If the consumer or debtor student has income less than 150 percent of the applicable poverty guideline as published by the United States Department of Health and Human Services (DHHS) (http://aspe.hhs.gov/poverty- guidelines), for all judicial districts Pioneer Credit Counseling seeks approvals, their fee will be waived upon completion of credit counseling or debtor education. A reduced fee will be given when other information is gathered that indicates some ability to pay upon completion of credit counseling or debtor education.
    [Show full text]
  • Credit Counseling Organizations
    Credit Counseling Organizations By Debra Cowen and Debra Kawecki Overview Introduction Credit counseling organizations provide valuable services to the public. They educate consumers about better money management techniques, promote debt reduction strategies, and help their clients avoid bankruptcy and its financial consequences. However, some credit counseling organizations prey on the vulnerability of the clients they are supposed to be helping. The purpose of this article is to raise awareness that there is a potential for abuse by credit counseling organizations that have received or are requesting classification as organizations described in IRC 501(c)(3). In this article Part I of this article discusses the Credit Repair Organizations Act, the federal government's response to abuses in the credit repair industry. When considering applications from credit counseling organizations, it is important to keep in mind that in general the Credit Repair Organizations Act does not apply to IRC 501(c)(3) organizations. The federal statutory scheme relies on the determination by the Service that an organization qualifies for tax-exempt status. Part II of this article discusses two states’ efforts to protect consumers from financial fraud. The states' regulatory schemes do not apply to IRC 501(c)(3) organizations. The states are also relying on the determination by the Service that an organization qualifies for tax-exempt status. Part III discusses the Model Codes adopted by two voluntary credit counseling certification organizations. These Codes provide a model for exempt credit counseling organizations. Part IV discusses qualification of credit counseling organizations under IRC 501(c)(3) and IRC 501(c)(4).
    [Show full text]