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Unique and Strange Real Estate Terms

Unique and Strange Real Estate Terms

Unique and Strange Real Estate Terms

These real estate and property terms are used quite a bit but many people have no idea what they actually mean. If you’re considering investing in real estate, selling or buying your first property, here are some key terms you should know.

APR – this stands for the annual percentage rate but you may also see it as APRC, which stands for the annual percentage rate of change, and is the entire total cost of the loan including interest charges and other fees. This is important to know when comparing other mortgage rates and terms.

Conveyancing – this simply stands for the legal work involved in buying and selling real estate.

Disbursements – This is the act of paying out or dispersing money, typically to the seller, real estate agents and other parties involved in a real estate transaction.

Gazumping – This odd term stands for when a seller accepts a higher price than what was previously agreed upon with another buyer. Another technical term would be to “swindle” somewhat and it’s usually the seller raising the contracted price of the property after having accepted a lower offer from another buyer.

Ombudsman – Again, if any term that stands for an official or person appointed to investigate individuals complaints on behalf of customers against real estate agents, escrow companies, and insurance companies.

Vendor – This is typically used as the legal name to describe the seller of the property or the real estate.

Freehold – a freehold is ownership of the property and/or land.

Real estate agents often shorten their descriptions of a property in order to get as many characters in the description area as possible. Too many homebuyers, they may simply look like letters that mean nothing to them in actuality. Here are some of the most common abbreviations you’re going to find in a real estate description.

1. BICC – Built in China Cabinets

2. Detached GH – Detached Guest House

3. FR. DRS – French Doors

4. FROG – Family Room Over Garage

5. FP – Fireplace

6. HDW – Hardwood Floors

7. Bb – Baseboard heat

8. CH/BW – Chain Link or barbed wire fence

9. d/w – Dishwasher

10. EIK – Eat-In Kitchen

Bedrooms and Bathrooms are also usually abbreviated like Bd and Ba and Living Room is sometimes shortened to LR or FM (Family Room). [Source]

Trying to keep all these terms in mind when searching through listings can be daunting but that’s what I’m here for! For mortgage modification or mediation, bankruptcy attorneys or information on the Washington State Fairness Act, contact me anytime.

More:

How to Buy a Foreclosure

What to Expect in a Bank-Owned Home

If you sell, be prepared for the home inspection

How the Foreclosure Fairness Act Works for You

How the Foreclosure Fairness Act Works for You

The number of foreclosure listings in Washington State and all over the country is on the rise again, but there is hope as many homeowners have made it possible to hold on to their home through the Washington State Foreclosure Fairness Act.

The Washington State Foreclosure Fairness Act is little known by both homeowners and employees of mortgage holders. To have this protection work for you it is best to hire an attorney.

What many homeowners are unaware of is that there are many different modification programs they may be able to qualify for. These programs include the HAMP Tier 1, the HAMP Tier 2, the HAMP Standard, FHA Modifications, VA Modifications, Non-GSC Modifications, modifications that mirror HAMP, internal modifications, the National Settlement Act, Washington State Settlement with pick a payment program and much more.

There are many lawsuits against banks in the courts today for failure to adhere to these settlement programs. The problem lies with banks not telling homeowners about these programs or not even considering homeowners for these many various modification opportunities.

It is very important to know where the mortgage on your home stands and who is the actual owner of the loan on your home. Many people are unaware that the bank processing their payments may not actually own the loan. Where your loan is actually owned determines what modification programs you are eligible to apply for.

The Washington State Foreclosure Fairness Act allows a counselor or lawyer to work on your behalf to stop the foreclosure process while you try to apply for a qualifying loan modification. This law allows for a slow down of 6 to 9 months on the foreclosure process and gives time for legal help to find who owns the loan and just what programs you qualify for and your rights as a homeowner.

It is impossible to make any headway with the Washington State Foreclosure Fairness Act on your own as the program is set up for you to work through a housing counselor or attorney. The program sets up a series of mediation with the county through the Washington State Dept. of Commerce.

In many cases, you can lower your payments through a qualifying modification program. In some cases, payments may go up but interest rates can greatly lower without extending the term of your mortgage. Each case is determined by the income of the homeowner.

Related: Getting Mortgage Approval After a Loan Modification

If you are facing foreclosure and feel unheard please contact Advantage Legal Group immediately! We offer free consultations. Don’t settle for the bank telling you you will have to short sale or settle for a deed in lieu. Let us take a look at your case or free first.

Contact Us Immediately

Filing for Bankruptcy

Filing for Bankruptcy - When, How, & Why

Filing for Bankruptcy – When, How, & Why

Determining if you Qualify for Bankruptcy

Individuals file personal bankruptcy because there is financial relief needed and they seek a second start.  If you feel there is no way out of your debt troubles and these debt troubles are regular occurrences, filing bankruptcy maybe your best option.

  • Debt troubles a regular occurrence
  • You fear losing your home/facing home foreclosure
  • Wage garnishment has been assigned to paychecks
  • Laid off/ job problems
  • Medical crisis to your family
  • Creditor harassment
  • Recent divorce
  • Lawsuit pending

To Qualify for Bankruptcy there are steps you must take.

1)      Attend a court-approved financial counseling course

2)      Figure out if your monthly income is more or less than the median income in your state.

One way to Qualifying for the bankruptcy means test:

Current monthly income minus expenses

Times that by 60 to get your result

If your result is more than 25% = $10,000

Less than 25%=$6,000 or less

3400-2000= 1400

1400* 60 = 84000*.25 = 21000 (File for chapter 13)

3400-3000= 400

400*60=24000*.25 = 6000 (File for chapter 7)

3a)   If Income is more than median income then you can file a 5 year chapter 13 bankruptcy

3b)   If Income is less than median income then you can file a chapter 7 bankruptcy

4)   Get a discharge from your bankruptcy through an approved Credit Counseling Course.

A Chapter 7 bankruptcy or a Chapter 13 Bankruptcy can help you overcome problems.  Learn more about what filing a Bankruptcy can do to help you in Bankruptcy 101

If you are at risk of losing your home due to foreclosure, mortgage mediation and modification might be your best solution. Contact us anytime to learn more information about Western Washington mortgage mediation, the fairness act, and how to avoid foreclosure.

Related: What if I Can’t Make My Mortgage Payment?

 

Bankruptcy or Foreclosure Looming?

Bankruptcy or Foreclosure Looming?

Bankruptcy or Foreclosure Looming?

Let The Washington Foreclosure Fairness Act Help you!

New Mortgage Foreclosure Program for the State of Washington.

A little known Mortgage foreclosure program went into effect in Washington State in 2011.  It is called the Washington foreclosure fairness act (FFA).  This program is for you if you need help paying your mortgage and need to renegotiate with your lender!  This program was designed to help homeowners facing foreclosure and lenders to reach a resolution about foreclosures.

The Washington foreclosure fairness act also helps homeowners in that it requires lenders to notify “borrowers” before the foreclosure process of the possibilities of counseling and mediation.

You need a referral by a Housing Counselor or an Attorney to use the Washington foreclosure fairness act program!  The reason for this is so that you will have representation when you sit down with the lender’s attorneys.  When you are referred to the program, you will then be in the Mediation process.  This process can be a very timely solution for you and your lender’s problems with the right people to support you.  Having a knowledgeable law firm like Advantage Legal Group on your side can help you find your best option in a timely matter.

Related: 4 Ways to Raise Your Credit Score in 6 Months

Stopping the foreclosure process.

Once you are in the mediation process for the Washington foreclosure fairness act program the foreclosure process halts!  You must act in “good faith” to stay in the mediation process.  You and your legal representative will go through the mediation with your lender and their legal representative.  The mediator will aid both sides to come up with a plan that will benefit both parties.

Remember, that if at any time the mediator believes you are not acting in “good faith,” your mediation can be canceled and your lender can proceed with a foreclosure.  Your legal counsel will help you to know what you need to do.  Examples of not acting in good faith: not turning in the appropriate paperwork on time, not paying the mediation fee on time, and not responding to e-mails or calls from the mediator.

Other Important Information

Free Seminars, Free Consultations, and Informative Videos!

If you have been thinking about bankruptcy or you are seeing a foreclosure in your future check out Advantage Legal Group to help with your legal options.  Advantage Legal Group offers free seminars in the Seattle/ Puget Sound area.  These free seminars cover legal options all the way from Foreclosure Defense Strategies, Mortgage Mediation, Deed in lieu of Foreclosure, Mortgage Modification, Short Sales, to the Washington State Foreclosure Fairness Act.  Attend these free seminars in Bellevue, Lynnwood, or Tacoma.  Attendees also learn about their legal options for their specific financial situation.  You are under no obligation to do anything by attending the seminar.  After the seminar, if you choose, you can schedule a free consultation with Seattle Bankruptcy Attorney Jonathan Smith to discuss even more specific their financial situations.

Contact Us Immediately

 

Should I Use My Stimulus Check for Bills?

Should I Use My Stimulus Check for Bills?

Like millions of Americans, most of us will be getting some sort of a stimulus check in the next couple of weeks. When we hear the word stimulus we understand that it is to stimulate the economy but that doesn’t mean going out and buying the latest television or blowing it on something nonessential. Stimulating the economy means keeping up with your bills, mortgage payments, and rental payments. Remember, someone is suffering from not getting the funds they need and you might think that utility companies and big mortgage companies are faceless entities, but eventually, someone will need to get paid. I ran across this post on Facebook I thought it was very poignant to bring up here.

1. To Tenants: If the government says you don’t have to pay your rent and there’s a ban on evictions, you better do whatever you can to pay your rent. There will be major repercussions when eviction bans are lifted. Don’t think you’ll get a free ride out of this.
PAY YOUR RENT! Your landlord has bills to pay too.

2. To Homeowners: If the government tells banks to stop mortgage payments, DO WHATEVER YOU CAN TO PAY YOUR MORTGAGE!. Some lenders are saying you don’t have to pay for 3 months, but on the 4th month, all four payments are due in full. Do not take a chance and not pay. Major foreclosures will come from all this. The banks didn’t help homeowners in 2008-2009 and in 2020, it’s still the same.
Pay your mortgage.

3. If the utility company suspends payments, you better pay any amount you can! They are like banks, they will want their money eventually and when all this clears up, you’ll owe an exuberant bill and still won’t have any utilities. Pay whatever you can.

4. If you get a government stimulus check, this check is to help pay your bills. That means you pay your rent, your mortgage, your utilities, your insurance, your car payment, your bills.
This is not for frivolous spending.

5. The real problem is, many who will get the stimulus check….won’t pay their bills then will be crying and wailing saying
“They evicted me. They cut off my power, they repossessed my car…”
All while you’re broke and carrying that empty purse you bought with your stimulus check.

There’s always FREE cheese 🧀 in a mouse 🐁 trap!

It’s important to understand your rights, your financial situation, and the reality of the future. If you feel that you cannot make your mortgage payment it’s time to contact them immediately. You need housing first and foremost and then food. Pay your mortgage or your rent first and then food. Credit cards are frivolous spending but you do need heat, electricity, and power. These are things that you want to stay on top of. If you feel you need a real estate attorney, mortgage modification or mediation, or foreclosure is in the not so distant future, contact us immediately.

If you are at risk of losing your home due to foreclosure, mortgage mediation and modification might be your best solution. Contact us anytime to learn more information about Western Washington mortgage mediation, the fairness act, and how to avoid foreclosure.

 

20 Tips for Getting a Job During a Pandemic

20 Tips for Getting a Job During a Pandemic

This coronavirus health crisis has seemed to rock the job market overnight. Businesses are laying off workers, folks are worried about paying their mortgage and their bills, and about six and half million people have filed for unemployment. So what is this mean for folks that may have already started looking for jobs?

Those already on the hunt may want to put their job search on hold but others may have no choice. There are ways to look for jobs and tips to getting the right job during a pandemic. According to MSN Money, here are 20 tips for getting a job during the coronavirus pandemic.

#1. Review your online resume and profiles.

Double-check that all of your online resumes and profiles are up-to-date and that they all match. You want to ensure consistent messaging across the board.

#2. Update that LinkedIn profile with your accomplishments.

Get as many endorsements as possible and make sure that your linked in profile has the presence that you want spotlighting all of your achievements and accomplishments.

#3. Create a master resume and then trim when necessary.

Not every job application needs to have everything on it so have one master resume with everything and then scale it down when necessary depending on what the job is looking for.

#4. Update your resume and cover letter to reflect the current state.

It’s okay to pay attention to industry trends and update and adapt your cover letter based on things that are currently happening as well is the job that you are applying for. Are you able to adapt to the current state and quickly learn new ways of doing the job?

#5. Emphasize remote work skills.

Can you do your job completely remotely? Consider adapting the resume to highlight any previous remote work experience if possible.

#6. Consider a video resume.

A video resume can make you stand out from the competition and it should be less than a minute featuring you looking happy, professional, and talking about points in your resume that directly affect the job you are applying for.

#7. Consider an online course.

Simply by taking and completing some online courses it can give you the edge over the competition. Sharpen your skills or re-skill for a career change.

#8. Research the jobs that are in high demand.

You have to get strategic during this time. There’s a huge demand for delivery and healthcare workers as well as grocery store attendance and warehouse attendance. They may not be your ultimate dream job, but they are in high demand right now and you’re likely to get a job sooner rather than later.

#9. Stick to applications on companies that are actually hiring.

It may be difficult to get your dream job right now but stick to applications on companies that are actually hiring.

#10. Apply to 10 jobs every day.

Set aside time to apply to at least 10 jobs per day.

#11. Apply directly to a company website.

Off-site companies that post your resume such as LinkedIn, Indeed, Zip Recruiter, and Monster may be inundated with so many resumes that it’s a blur to potential employers. If you can go directly to the website, do it.

#12. Be flexible and open-minded.

If you’re serious about getting a job you need to keep an open mind about the opportunities you might find. You may not find a chance of a lifetime or you might… Your open mind can make the difference. You never know where an interest job may lead in the future, and maybe a more immediate future at that.

#13. Create a pitch deck.

Don’t focus on the past but focus on creating value immediately. This quick 3 to 4 slide presentation can outline what you may be able to accomplish in the first 30 days. This will really set yourself apart if you accompany it with your resume.

#14. Always be networking.

Even though you can’t meet with people face-to-face it doesn’t mean that you should stop actively networking. Set up 15 minute calls, Skype or Zoom at meetings, message people on LinkedIn, and build relationships. Someone is always hiring.

#15. Engage with potential companies on social media.

If you know what kind of job you want, zero in on the company’s leaders on social media without being annoying. You want to establish a good rapport by following them on LinkedIn, Facebook, and other social media to become a member of their inner circle and social media tribe.

#16. Practice your video interview.

Most interviews will be done over the phone or over video so you might need to practice before that phone call comes in.

#17. Don’t lead with the reason you’ve been laid off.

Try not to focus on negative circumstances surrounding your last job. Employers obviously know you’re looking for a job and whether that means you’ve been fired, laid off, you’ve quit, or you currently have a job, may not be as important as why they need to hire you now.

#18. Don’t get greedy.

Many companies are on a tight budget right now so it’s important to be realistic. If you are aggressively negotiating or using the crisis for financial gain, employers will quickly shoot you down. You want to address your compensation needs, not wants early in the process.

#19. There may be a delay in correspondence… And that’s okay.

Companies may not get to you right away because of the current hiring climate but it doesn’t mean that you shouldn’t actively keep applying for jobs. As I mentioned before, apply to about 10 jobs a day and keep them organized in a spreadsheet so you know who you’ve applied to, when, and if there’s any correspondence in return.

#20. Be patient and stay positive.

There may be setbacks and disappointment because these uncertain times can leave a lot of things up in the air but have some grace, go easy on yourself, and take this opportunity to learn and grow to the process.

If you are at risk of losing your home due to foreclosure, mortgage mediation and modification might be your best solution. Contact us anytime to learn more information about Western Washington mortgage mediation, the fairness act, and how to avoid foreclosure.

Washington Foreclosure Fairness Act – Referral to Mediation Process

Washington Foreclosure Fairness Act - Referral to Mediation Process

Washington Foreclosure Fairness Act – Referral to Mediation Process

In 2011 Washington and passed the Washington foreclosure fairness act to help homeowners who are facing foreclosure.  This program was designed to help homeowners and their lenders reach a resolution about foreclosures or other possible options for the homeowners.

Homeowners must be referred to Mediation by housing counselor or an attorney to be part of the foreclosure fairness program.  A law firm like Advantage Legal Group can help you access the foreclosure fairness program or help you determine which option is best for you.

This new program now requires lenders to notify borrowers prior to foreclosure of the availability of foreclosure counseling and the potential for mediation.  Understanding the mediation process can be confusing and time-consuming.  Having a knowledgeable law firm like Advantage Legal Group on your side, can help you find not only your best option, but help you do it in a timely matter.

Advantage Legal Group can help you through the mediation hurdles.  Did you know that some lending institutions are exempt?  Banks and credit unions that are exempt from the mediation process of the Washington Foreclosure Fairness Act have less than 250 sales of owner-occupied residential real estate property.

Washington Foreclosure Fairness Act – Mediation Process

Key information to know for scheduling mediation sessions:

• Department of Commerce will assign a mediator within 10 days of receiving Referral to Mediation.

• Beginning three days after commerce sends an assignment letter to you via e-mail, you have 70 days to conduct the foreclosure mediation session.

• Mediation must take place within the county where the borrower of lives, unless both parties agree to a change of location.

• Model Notification form must be sent to all parties at least 30 days before the mediation session, if used.

• Payment of fees to mediator must be paid within 30 days of the assigned letter from department of commerce.

• Within 23 days of receiving of the referral to the foreclosure mediation letter from the department of commerce, you’ll need to complete and send in the initial package for the Home Affordable Modification Program also known as HAMP to both the mediator and the beneficiary.

HAMP package includes forms:

  • Request for Modification and Affidavit (RMA) form.  (A three-page form that includes household income expenses debts assets in tax returns for the past two years as well as hardship affidavit if applicable.)
  • Tax forms 4506 – EZ or form 4506 T for the previous two years
  • Verification of income
  • Dodd-Frank Certification Form

At any time if the mediator believes you are not acting in good faith they may cancel the mediation and the bank or other beneficiary may proceed with a foreclosure sale.  Examples of not acting in good faith are the following:

  • Not providing the HAMP package on time
  • Not providing the mediation fee on time
  • Lack of response to mediators e-mails
  • Lack of response to mediators calls

This new program requires lenders to notify borrowers prior to foreclosure of the availability of foreclosure counseling and the potential for mediation.  Understanding the mediation process can be confusing and time-consuming.  Having a knowledgeable law firm like Advantage Legal Group on your side, can help you find your best options, done in a timely matter, and show that you are acting in good faith.

Schedule  a Consultation Today

Defense Against Foreclosure

Defense Against Foreclosure

Defending Against Foreclosure

If you are facing the loss of your home or fear that you may soon be facing a foreclosure, a law firm can help you to develop a strategy that may include defending against the foreclosure, negotiating a modification, refinance, short sale, or implementing a strategic default plan.  A Foreclosure Defense Law Firm assists clients in all stages of the pre-foreclosure and foreclosure process.

30 Days to Respond

It is important to act or seek assistance as soon as possible to ensure that you do not lose some of the many options you have when faced with a foreclosure.  There are deadlines in the foreclosure process as well as certain requirements that the banks must follow, in order to successfully foreclose on a home.  Once you are served with a summons and complaint from the bank, you have only thirty days to respond and defend against the foreclosure.

Defenses to Foreclosure

Challenge a foreclosure by bringing a defense such as unconscionability or lender mistake.  Homeowners and their attorneys are challenging foreclosure actions in many different ways.  Here are some of the most common defenses to foreclosure.

How to Raise a Defense to Foreclosure

Courts are sympathetic to challenges to foreclosure actions; attorneys are raising many different types of defenses.  Below is a description of the most common of these.

Common Foreclosure Defenses

  • The Terms of the Mortgage Are Unconscionable – It usually is not enough to simply claim that the foreclosure is unfair; rather, you have to come up with a specific justification for your position that has previously been recognized by the courts.

  • You Are a Service member on Active Duty – If a foreclosure is initiated while you are on active duty, you can automatically receive a nine-month postponement.

  • The Foreclosing Party Did not Follow State Procedures – If your challenge is successful, the court will issue an order requiring the foreclosing party to start over.

  • The Foreclosing Party Can’t Prove It Owns the Mortgage- If your mortgage has been sold and bought by many different banks, lenders, and investors, proving just who owns it can be difficult for the last holder in the chain.

  • The Original Lender Engaged in Unfair Lending Practices- You may be able to fight your foreclosure by proving that your lender violated a federal or state law.  Lenders violate TILA law when they do not make certain disclosures in the mortgage documents, including the annual percentage rate, the finance charge, the amount financed, the total payments, the payment schedule, and more.

  • The right to rescind the loan – the key remedy in foreclosure actions is the borrower’s ability to retroactively cancel or rescind the loan.

  • State-law remedies for “high-cost” loans – A few states have special protections for people facing foreclosure on “high-cost” mortgages.

  • The Mortgage Servicer Made a Serious Mistake – You may be able to challenge a foreclosure based on mistakes such as:

    • Crediting your payments to the wrong party.
    • Imposing excessive fees or fees not authorized.
    • Substantially overstating the amount you must pay to reinstate your mortgage.

To learn more about these defenses and other ways to avoid foreclosure contact a foreclosure Defense Lawyer.  A Foreclosure Defense Lawyer will:

  • Provide you with a free consultation
  • Review your documents and information
  • Outline a strategy to defend your home

Fear losing your home? Foreclosure looming?

Fear losing your home? Foreclosure looming?

You held out for this long but your lender has finally sent you the” letter.”  However, the letter talks about consumer debt counseling and mediation.  This is part of the Washington Foreclosure fairness act.  Lenders must inform you of your rights before a Foreclosure can be processed.  Bankruptcy is a valuable option to consider.  Understanding and knowing your options will help you to come out ahead.

Bankruptcies are on the decline?  You might think so as the economy recovers but bankruptcies are actually on the rise in many areas.  If you have recently been sent a letter from your bank or lending institution, it is time to contact an Attorney or consumer debt counselor that is recognized by the court system.

Whether you have been laid off, had medical issues with bills piling up, or just got in over your head with consumer debt, you are not alone.  Now you are afraid you are going to lose your home.  There are ways to help save your home.  Check out the New Washington program to help people just like you.  It is called the Washington foreclosure fairness act.  This act helps homeowners just like you to help are you negotiate with your lender.  It requires a wonder to notify you of the process before the foreclosure process starts.  The process includes consumer debt counseling and mediation with the lender.  You will need to have an Attorney or a debt counselor on your side to go into the mediation process.  Advantage legal group out of Bellevue can help you find your best option, walk you through the process, and hold your hand through the process.

It will become much clearer through the Washington foreclosure fairness act and with the aid of an attorney to be knowledgeable about your rights and responsibilities, and how to save your home.  First being in the mediation process actually stops the foreclosure.

Advantage Legal Group offers free seminars in Seattle and around the Puget Sound area.  These free seminars cover many options for distressed homeowners.  Knowing what options are available to you and what makes sense for your family will give you the confidence to go through the foreclosure process, mortgage mediation process, or short sales process.  These are only a few of the strategies that the seminar covers.  Understanding your financial situation and the types of strategies that are out there for you will help you to figure out your defense.  Is mortgage modification the option for you?  What is your best option, deed in lieu of foreclosure, mortgage modification, short sales, mortgage mediation, and what will your Foreclosure defense strategy be.

If after the seminar, you need more information Jonathan Smith a Seattle Bankruptcy  Attorney will schedule a free consultation with you to go over even more specific situations.

Additional Financial Resources:

 

Preventing Bankruptcies

Preventing Bankruptcies

We are in some unusual and unprecedented times right now but that doesn’t’ mean you can’t prepare and still have some time to plan.

People use the phrase “Practice good money management.”  However, what does this really mean?  Terms like impulse spending, realistic budgeting, and no high-risk investment are not part of the “good practice.”  Understanding what is good money management practices can help you in preventing bankruptcies.  Bankruptcy might be your only option but there are ways to prevent it.

How do you avoid impulse spending? 

  • Impulse spending is spending money on anything that is not a NEED.  Steps you can take to avoid impulse spending:
  • Cut up credit cards so you cannot use your credit.
  • Take your credit cards out of your wallet so you have time to think about a purchase you are going to make.
  • Ask yourself do I need this item or just want it.
  • Can I get this item somewhere else for less money?  Is an item available on Craigslist, E-bay, or a thrift store?
  • Discipline yourself to use credit only when you know you have money in the bank to pay off the total at the end of the month.
  • Tear up credit card offers.
  • Tear up credit card checks that your credit company sends in the mail.
  • If you have to use credit cards and you are not in a position to pay the total off at the end of the month pay more than the minimums.  If you can pay more than you put on the card that month.
    • Say you have$ 5000 in debt on a credit card and you bought $500 in stuff this month.  Pay $500 plus more when the bill comes.  This way you didn’t add anything to the card and if you did pay more then you are on your way to reducing the outstanding debt on the card.

What is Realistic Budgeting?

  • Write down what you pay each month for bills:  House payments, electricity, garbage, water, natural gas, home insurance, life insurance, medical insurance, car payment, cable, phone, internet, and whatever else is a reoccurring monthly expense.
    • Some expenses are every other month like garbage and natural gas.  Set aside an amount so that the total bill can be paid when it is due.  (If your natural gas bill is around 200 every other month set aside 100 on the month it is not due that will be used in the next month)
  • Budget for food, entertainment, gas, and misc. expenses
    • Know what your average spending is for food, entertainment, gas, and misc expenses.
    • Create a set amount (budget) for each category and stick to it.
      • This might take some collecting of receipts or writing down each purchase.
      • Some people have taken out money from their paycheck, put it in an envelope, and that is the money for food for the month.
      • Whatever will work for you, to stick to a set amount, and do it!

What are high- risk investments and how can I avoid them?     

  • Don’t incur debt with others who have questionable financial habits.
    • If they walk out on a debt your credit rating will be effected
    • Co-signing on loan is a high-risk investment – it might be helping a family or friend out but if anything happens to them, you are left holding the loan!
    • Interest-only loan payments are high-risk investments.  If you can only afford to make an interest-only home payment, then the house is out of your price range.

You may be looking at how to get out of debt and bankruptcy seems like the only way just remember these ideas so you will not have to file for bankruptcy again.  Contact advantagelegalgroup.com for more help.

Schedule a Consultation

 

Additional Financial Resources:

 

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