The Key to Building Wealth
by: Timothy Rohrer
Many people today believe in order to become wealthy they either have to be born into wealth or have a lot of money to make money.
The fact is this just isn?t true.
Building wealth is a mechanical process and because it?s so simple it?s quite boring, therefore many people do not follow through with the formula.
The Problem
Too many people fall into a financial rut and it usually starts when we begin moving money from one credit card to another.
Sure this works for a short while, but eventually it catches up with you and before you know it you have $5000 maxed out on your VISA card and $3000 maxed out on your Discover card.
The next genius move I consider was debt consolidation.
While this does work and the phone calls will stop, it?s not a solution for the problem at hand.
Your monthly payments become lower and this provides the temptation to go out and accumulate even more debt, eventually taking you back to square one.
Not to mention having a history with debt consolidation leads to higher rates on things that count later in life.
Back at square one, the next step I considered was debt counseling and the idea sounded great, they even promised to lower my monthly payments by $300.
I managed to avoid this one all together and now that I look back I am glad that I did.
What I later found out is that debt counseling is viewed as bankruptcy.
By this time I decided to refinance my home with an equity line/2nd Mortgage loan on my home to get out of debt and it worked perfectly.
However, let me tell you a little secret.
When you take out a 120k loan on a home that is only worth 90k and the neighborhood starts going downhill like ours did, you cannot sell your home for what its worth.
Again, we were stuck in rut where we had to borrow money from family to sell our home.
Other home owners in the area were not as fortunate.
At this point in time I was seriously considering bankruptcy.
If you think that after seven years nobody will know about your bankruptcy, you are mistaken.
In some cases jobs won?t even higher you if you ever had a bankruptcy.
Most loan applications ask if you have ever filed for bankruptcy and they do take that into account even if it has been 10 years since you filed for bankruptcy.
This is when I became desperate and finally cracked the money making formula.
The Solution
In 2005 I made a new years resolution to stop spending money on things that required me to make a monthly payment.
Instead, I would take my paycheck and spend it on assets, or things that put money into my pocket month after month.
I like to call these assets investment vehicles.
It does not matter which types of investments you choose, just as long as they are all leading to the same place financially.
Copyright 2006 Timothy Rohrer
About The Author
Timothy Rohrer is an established write and home business owner.
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Debt Consolidation - Choose a Credit Counselor Carefully
Debt Consolidation - Choose a Credit Counselor Carefully
by: Charles Essmeier
Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 will require people who are filing for bankruptcy to first undergo mandatory credit counseling.
This is probably not a bad idea; after all, many people with problem debt could probably benefit from credit counseling.
A good credit counselor can assist clients with problem debts in establishing a repayment schedule, creating a personal budget, and learning how to avoid debt and credit problems in the future.
The problem is that with the estimated one and a half million additional people seeking credit counseling each year, there will undoubtedly be more credit "counselors" entering the market, and many of them are only interested in reaping huge profits at the expense of their clients.
There are already a number of credit counseling firms working...
Bankruptcy > Debt Consolidation - Choose a Credit Counselor Carefully
Health, Health Care Insurance and Bankruptcy
Health, Health Care Insurance and Bankruptcy
by: Shobhana R. Kasturi
Imagine for a moment that your health has taken a turn for the worse. You need extensive medical attention and expensive treatments. Would you be prepared to account for these medical costs? Or would you or a family member ultimately have to deal with this financial burden?
Surely, you would not want to suffer the consequences of paying big medical bills on your own. This is why health insurance is so important. A Harvard study conducted in 2001 found that medical bills caused half of all bankruptcies. Therefore, you should make sure that you have some form of medical insurance. You should also make sure that your money is well-spent on insurance that meets your needs.
Insurance Provided by Employer
You should feel lucky if you are in the minority of people who receive health insurance through your employer. According to bankrate.com,...
Health, Health Care Insurance and Bankruptcy
Bankruptcy > Health, Health Care Insurance and Bankruptcy
The Chapter 13 Meeting of Creditors - What to Expect
The Chapter 13 Meeting of Creditors - What to Expect
by: Leon H. Rountree III
Have you recently filed Chapter 13 Bankruptcy? Do you have an upcoming Meeting of Creditors hearing? Many Chapter 13 debtors get a little nervous about the meeting since they are not exactly sure what to expect. So, I decided to take some notes on exactly what happens during the meeting for the benefit of those who have an upcoming meeting. Of course, I knew what was going to happen since I've done these hearings before for my clients, but I wanted to note the exact words this hearing officer (trustee) was using and the exact questions she was asking. Sometimes, clients have visions that creditors are going to sit there and hammer them all day with questions or something. This is just not the case, in my experience. Let's start with some basics.
What is the Meeting of Creditors?
The Meeting of Creditors is a hearing that is held 20 to 40 days after the bankruptcy...
The Chapter 13 Meeting of Creditors - What to Expect
Bankruptcy > The Chapter 13 Meeting of Creditors - What to Expect
Subprime Mortgages And A Past Bankruptcy
Subprime Mortgages And A Past Bankruptcy
by: Carrie Reeder
Even with a Chapter 7 bankruptcy in your credit report you can still qualify for a sub-prime mortgage. Once approved, you can then use your mortgage to improve your credit history, qualifying you for lower interest rates in the future.
The Effects of a Bankruptcy
A bankruptcy will affect your credit score based on how long ago it was. So a bankruptcy discharged less than a year ago will qualify you for a D loan. These types of loans usually require 30% down and a high interest rate.
By waiting a year after a bankruptcy, you can qualify for a B or C loan with their lower rates and down payment requirements. If you wait two years, you can qualify for a FHA home loan. In four years, you can qualify for a conventional loan.
Besides your bankruptcy record, financing companies will want to see a steady payment history. This includes your credit and rent payments. Cash reserves...
Subprime Mortgages And A Past Bankruptcy
Bankruptcy > Subprime Mortgages And A Past Bankruptcy
Credit After Bankruptcy Is Not Impossible
Credit After Bankruptcy Is Not Impossible
by: Jakob Jelling
If you are going to file for bankruptcy, it is true that you will not have very good credit after bankruptcy. However, this does not mean that you will never be able to get loans, and it certainly doesn't mean that you will never have a good credit history again. While it is true that there will be a short period of time during which it will be exceptionally hard to get credit, it is not true that you will have to wait for an entire ten years to get credit after bankruptcy.
For instance, if you do not have a lot of debt on your credit card, or if you have no debt on it at all, you may be able to keep your card. If you do not owe any money at all, then you do not even have to inform your credit card company about the bankruptcy - however, if they do find out that you are going through bankruptcy proceedings it is always possible that they could cancel your card anyway, just to make sure...
Credit After Bankruptcy Is Not Impossible
Bankruptcy > Credit After Bankruptcy Is Not Impossible
Bankruptcy
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