Check out the 5 financial tips for the 3rd week of May 2012
Tip no 1 - Forget about the promises and scrutinize the insurance documents.
Go through the insurance documents before purchasing an insurance policy. Find out what the insurance policy will actually cover. Know about the policy exclusions too. Read each and every clause written in the document. See if you understand the insurance terms and conditions. Find out the premium amount you'll have to pay to the insurance company. Most importantly, read the lines typed in the "fine print"section of the document. In case, you don't understand the clauses, then feel free to clarify your doubts from the insurance company. Don't sign on the dotted line if you have a single doubt about insurance coverage.
Tip no 2 - Avoid paying less than the owed amount as it may lead to a drop in your credit scores.
Try to pay the full amount to the creditors. If you make a settlement agreement with the creditor and agree to pay less than the owed amount, then it will not be good for your credit score. It will show that you have not bothered to pay back the full amount. The credit scoring model will look at it in a negative light.
Your credit score between 70 and 125 points. Moreover, you'll have to pay a tax on the amount you didn't pay to the creditor. The IRS will consider this amount as your income. As such, you'll have to pay a tax to the IRS.
Tip no 3 - Paying off some educational loans becomes tough after college. So, it's better to decide which degree actually can help you get a good job and yet pay off the debt with ease. Another option is to join the state schools as these are less expensive.
The unemployment rate is hovering around 8%. The job market is in a bad shape. Moreover, the number of student loan defaulters is accelerating in an astonishing rate. In short, a bleak future is looming over the nation's undergraduates and graduates. All the parents should help their children in choosing the right subjects. It is better to get a degree on those subjects which have demand in the job market. Otherwise, it will become increasingly difficult for the students to get a job after finishing their studies.
Getting a good job is extremely important for the students. It will help the students to pay off their educational loans and secure their financial future. Moreover, parents can send their children to the community colleges for they are not very expensive. This will help them to slash the education cost.
Tip no 4 - You can file bankruptcy under Chapter 7 only once every 8 years.
You can file bankruptcy several times in your lifetime. However, you need to patiently wait for a few years for getting another bankruptcy discharge. If there is not a long gap between the bankruptcy filings, then you may not qualify for the discharge. There has to be a gap of 8 years between the 2 bankruptcy filings. If you have previously eradicated your debts through Chapter 7 bankruptcy, then you'll have to wait for another 8 years for getting discharge.
Tip no 5 - Don't ignore your unpaid parking or speeding tickets as it may hurt your credit score.
Citations are regarded as debts in the nation. If you have received speeding tickets, then try to not ignore it. The government will not ignore it. They will not permit you to neglect it either. Government can be a ruthless creditor. If you choose to not pay the speeding ticket, then the government will simply assign the debt to the collection agency. The collection agency will make it a point to collect the debt along with fees and penalties. Moreover, they will report the unpaid debt to the credit bureau and report, which in turn will drop your credit score.