Life After Debt

Many American families are finding themselves deeper and deeper in debt. Complicating matters even more, legislation makes it harder to declare bankruptcy, and saddles filers with a greater percentage of their debts to repay. If you, too, find yourself in trouble financially, there are usually no easy answers - but there are some ways out for those willing to commit to changing their spending habits.

Life Without Debt – But How?

Your ability to pay your bills can be affected by situations beyond your control such as serious illness, divorce, or unemployment. Poor financial management can also threaten your economic security. You may be able to juggle your creditors for a time, but eventually you may come to realize you need help in resolving your financial problems.

Major Purchases and the "Cool Off Period"

Whenever my family goes to the Jersey shore for summer vacation, two things always happen.  First, when we arrive I always say, I wish we had a beach house.  I always say maybe someday we'll get a place at the shore -- maybe once all the kids are off to college.  Second and without fail, after we’re there for a week, as much as I’ve enjoyed it, I can’t wait to go home and my kids all howl with laughter because I say, I don’t need to have a beach house.  It’s become the running joke of our family vacations.

Put and Take vs. Put and Keep Part 1: The Introduction

When you build a house, you want a strong foundation.  It is the same with your finances.  You want to ensure everything is in place so your finances will stand firm and you will be protected.  There are three important pieces to the foundation of your financial house:

1.     Updated legal documents including a will, living will and durable power of attorney.

2.    A delayed spending account, called a put and take account.  This is where you're depositing and withdrawing money for day-to-day expenses and annual expenditures.  This is where you want to practice good budgeting habits and self-discipline.

3.    Appropriate insurance coverages.  Typical insurances here are homeowner's, auto, health, disability, umbrella and term life insurance.