There are many variable to this topic and there is no one best method or formula. There are however a number of constants that most financial professions will look at. What I would like to do here is provide a guideline that will help you prepare for a meeting with an insurance agent or financial advisor. I will write a second part to this article that will show you a method to use this collected data to compute for yourself how much life insurance you might need.
You will need to form a family budget and plan of action as to how you will pay off that debt. I’m not going to say that things are going to get easier soon. But they will get easier.
There are many different types of bankruptcy one can file for. Chapter 7 is an effort to completely liquidate ones debts, but requires the loss of most assets as well. Chapter 13 is more about getting creditors off your back in exchange for a defined plan to repay them. Chapter 11 is the same as Chapter 13, but tailored more towards businesses. Regardless of the filing you make, each of these forms of bankruptcy ends with a discharge.
And beware of the low monthly rates they might promise you. Just because the monthly payment is affordable, doesn’t mean you’re getting a good deal. You could be paying on the car for longer and with a higher interest rate, meaning you’re losing a lot of money in the long run.
Loans – This hanging file will include such items as student loans, car loans langley, personal loans or other loans you might owe. It should not include your mortgage loan, as this is included in the housing file. If you have decided to have loan payments directly deposited from your bank account, place this paperwork in the files also as it will help if you need to go back to change the amount.
Firstly, avoid becoming a guarantor on anybody’s debts, including your partner’s. This in turn comes down to you both living within your means during the relationship and not trying to buy anything on credit that necessitates another person going guarantor. Perhaps that means taking out a smaller loan or credit card or shopping around for a better deal. In general, avoid joint debts wherever possible. The only situation where you might compromise on this (out of necessity) is your home loan. And even here, make sure you have a sufficient savings to protect yourself should you need to cover additional payments while a property settlement is being arranged. Look into your options for loan protection as well.
Debit cards can replace credit cards in nearly every situation. Certain things like traveling or purchasing online all but necessitate having some sort of plastic to use, and debit cards will almost always fit the bill. Alternatives for online payments include bank transfers and PayPal, and using cash in person isn’t always the most convenient way to go about things, but no where rejects paying with legal tender.
Living without credit is not hard, it’s actually much simpler than living out of the banks’ pocket. Free yourself, live a cash only life, and you’ll be much happier, freer, and wealthier.