Personal Finance and Money Management

Being in debt stinks, I know, but what happens if you get a phone call, and the debt collection agency is telling you that you’re debt is going to be “charged-off.”  What the heck does this mean?   What can I do about it?  You don’t have to worry right now, because I’m going to give you some tips, and pointers on what you can do about it right now.

What is a Charge-Off?

When you don’t pay your bills for more than 6 months, the banks will typically “charge-off” your account.  It doesn’t necessarily mean that you’re off the hook.  It’s going to mean that they are going to send your payments off to a third party.  Banks do this all the time, and sell your debt off to other companies for pennies on the dollar.

For example, let’s say that you owe Bank X $25,000.  They will go to the open market, and tell the debt collectors to bid on it.  Most likely, Debt collection company A will purchase your loan for $2,500.  They are going to turn around, harass you, and try to get that $25,000 in full.  Do you see how they can profit on this?

Now, you obviously owe this money, so you should still pay it off, but there are some more things that you should know about a charge-off.

A charge-off is a very serious thing when it comes to your credit report.  It’s showing other creditors that you’re not going to pay your bills.  This, in turn is going to effect your credit score greatly.  This is why it’s always essential to pay off your bills on a timely basis, even if you can’t afford it.  There are always chances to work out something, even if you have to pay the minimum payments.

Here’s what you can do, when it comes to your charge-off…

Work something out - Call up the creditor, and ask what you can do.  Since they want your money, they will try, and work something out.  Ask them what you can pay each month, such as a minimum payment, etc.

Pay in cash – If you have some cash laying around, a lot of creditors will accept payments of 50-60% of the bill, and call it even.  So, for example, let’s take that $25,000 bill above.  Most companies would take $15,000, and call it even.  It’s up to you if you want to do something like this.  If it were me, I would bite on that in a heartbeat.

Don’t give out information - Never ever give the creditors a direct deposit line.  You will find that they will attempt to dip into your account, and take as they please.  Instead, only send them a check, when you can afford to.

Always get in writing – When you pay off things in full, make sure that you get things in writing.  What you’re going to find out is that you can agree to things, but is it writing?  If it isn’t, you may not have a case.

A charge-off is a serious thing, and as long as you can pay your bills, and do it in a timely matter, you shouldn’t have a problem working something out.

Saving money is something that everyone enjoys doing.  Not to mention, there are several different ways to do it.  One thing that people don’t realize they spend too much money on is groceries.  Grocery shopping is a weekly thing for most people, so to be able to save a few times a month, it can really add up.

If you’re looking to save money on your grocery shopping each week, consider a few of these ideas to do so!

Internet – First of all, if you go on the grocery store’s website that you shop at, you will usually find a good amount of coupons to choose from.  These are coupons for this store specifically.

Sunday newspaper – The Sunday newspaper isn’t only great for catching up on what’s going on around you, but it’s also a great way to get a ton of coupons.  There are a few little booklets you’ll get on a weekly basis through the newspaper.

In store – Sometimes you will find on your receipt a good coupon for your next shopping trip.  Be sure to keep your eye open for these!

ebay – ebay is a great place to find good deals.  Not only can you buy items, clothing, electionics, and everything else under the sun but you can also buy coupons online. 

There are everything from Home Depot coupons, to diaper coupons, to coupons off your most frequently purchased items.  Not to mention, you can also find coupons for things like $5 off your next purchase of $50, 10% of your purchase, etc.

So, if you’re looking to save more money on your grocery bill be sure to consider a few of these different ideas to get coupons.  Coupons are everywhere if you look hard enough, and there are coupons for everything!  So, stop spending more money each week than you have to, and start saving today!

Everyone wishes they could save more money each month, and each day.  Although, what people don’t realize is that simple daily changes can keep more money in your wallet.  One of the things that you could be spending less money on is your cable bill.  A lot of people don’t realize how much less they could be paying.  How can you lower your cable bill?  Continue reading below to find out!

Tips to Lowering Your Cable Bill:

Compare – First of all, don’t just think of one cable service and go with that one.  It really pays to do your research and see which companies are the cheapest.  So, right now call up a few different companies and see how the prices compare to yours currently.

Cut back – Try to cut back on your packages.  If you don’t watch more than your few favorite shows, why are you paying for so many more?

Free TV – If you’re really desperate to save money just get your local channels.  Then, go on the Internet and watch your favorite TV shows for free.  This is a great way to avoid missing them the day they’re showing and doesn’t let TV run your life.

Downgrade – Try downgrading your package as well.  Do you have certain things like DVR, HD channels, etc?  If so, downgrade.  Those are luxury items and aren’t really “important”.

Lowering your cable bill can be done very easily.  If you consider a few of these tips above you can keep more money in your wallet each month.  Most people just expect their cable bill to come in the mail, and don’t really care how much it costs.  Although, what they don’t realize is that half the channels they don’t watch, and their upgrades are something they don’t really need!  So, consider some of these ideas and see how much you can save each month.

When the economy is bad, times can be pretty hard.  Although, what people don’t look at is the positive sides to one.  It teaches us the importance of saving our money, helps us better prepare for the future, and we can get some amazing deals when it comes to real estate.  Real estate is looked over very often and isn’t thought of as a “way to make money”.

If you’re thinking about investing money into real estate, check out some of the benefits you can have over time.

The Benefits of Investing Into Real Estate:

Easy money – First of all, there is very easy money to be made.  You will receive a rent check at the end of each week without putting 40 hours in at your job.

Little work – There is very little work involved when you invest into real estate.  The hardest part is finding good tenants.  Once you have them, you just want to keep in touch to make sure everything is okay with your place and them.

Cheap – There are some great deals out there during a bad economy.  Getting foreclosures, other people’s losses, condos, etc are ways to get very cheap real estate.

Future – If you have your tenants paying off your mortgage for you, you can have a pure profit in the future.  You can sell it when the economy gets better and really bring in money.  Or perhaps you can have them pay it off and then move in for your retirement.  There are so many possibilities out there!

As you can see, real estate has so many advantages.  Just save up some money for a down payment, have a good credit score and you can turn real estate into a job that doesn’t require you to head to the office or work a 5 day work week.