My Business

by Lynette
(Johannesburg)

My husband and myself owns a business with my brother and his wife. Financially things were going well until the recession hit, we leased out 2 vehicles and one of them are now missing. Things have started picking up, but we are trying to catch up with debt and we are still paying for this vehicle that is now missing. Our homes are in arrears and all our personal credit cards are also behind. We all have been handed over to attorneys, what do we do?


Comments


by: Bob

Lynette,

Without knowing the specifics of your situation, it will be tough for me to give you any financial advice. What you need to do is contact a credit counselor in your area so that they can assess your situation. Once they have all of the facts, they should be able to give you some recommendations.

Good luck!

Refinancing our house

by Patty
(AL)

Bob,

My husband and I both work full time and have a mortgage that we've been paying for 20 years. We have 10 years left and the interest is 6%.

Would it be worth it to refinance? Is there a simple way to look at the numbers? When you talk to the bank, they make it seem so complicated that it's hard to know what the real numbers are.


Comments:


by: Bob

Hi Patty.

Yes, there is a very simple way to determine if refinancing is right for you.

If you go to www.dinkytown.net, you'll see a variety of financial calculators. Under Mortgage Calculators-View All Mortgage Calculators, click on the Refinance Breakeven link. Then insert your mortgage information into the required fields and it will tell you how long it will take to pay back the refinance closing costs in order to get a lower mortgage interest rate. This is a great tool and if it's of interest, you might take the time to take a look at some of the other mortgage calculators that are available for free use.

Good luck!

How do you know if you need to declare bankruptsy

I know have a job that pays less than the one I had. We do not have enough to money to pay all our bills.

Comments:


by: Bob

Hello. Bankruptcy is the choice of last resort. I would consider, first, going to a credit counselor in your town. They will be able to assess your current financial situation and make recommendations to you. I wish you the best. Bob

how to pay for son's burial arrangements

Hello,
My son recently passed away, unexpectedly. He was 29 and did not have life insurance. I am unemployed. My parents have not offered to help pay for anything even though they have a good steady income from properties that they own, SS, pensions and other investments. They are not rich by any means but it would have been nice if they would have even offered to contribute something, $50 or so. Am I wrong to be hurt over this and should I ask them to contribute? If so, what is the best way to ask without offending them?
Thank you for your help.
Barbara in CA

Comments:


by: Bob

I am so sorry to hear of the loss of your son.
In response to your comments, a number of questions come to mind. Was your son in the military? If so, you should contact the local veterans office for possible benefits. Also, check with the local Social Security Administration office. Do you belong to a local church? If so, you might contact the pastor to see if (s)he could help. Another possible source is the Salvation Army. Also, check with your county to see if they have an appropriate program. Also, if you're dealing with a funeral home, their representative may have suggestions for you. With regard to your parents, if you feel compelled to approach them about this issue, you might consider doing it in a way that's comfortable for you. Hopefully, communicating with them will help ease your mind somewhat. Are they aware of your financial condition and the hardships this tragic event may have caused you? Do you have any siblings that could be of assistance? How about friends, or other relatives? Please note that I cannot offer you professional advice, other than simply raising some questions and presenting a few ideas for you to consider. My thoughts and prayers are with you. Know that God is always with us to help and guide us through our life challenges.

how to save my small money to start an investment yet i have afamily to take care of?

I earn alittle sum of Uganda shillings 800,000/- per month which is equivalent to USD 340 $.i have afamily to take care of my husband earns USD 383 but has to pay a loan of 50% every month.We ahve afamily car that we use to go to work every morning and it requires fuel of around $ 255 per month,food and other expences we need $ 362 plus utilities of around $ 26 per month.We would like to start up abusiness before the end of June 2011.how do we start saving because the monthly salary we get is very small.
Thanks
God Bless you

Hope


Comments:



by: Bob

If you are not using a money spending plan, you should create one. It lists all of your expenses and where your income is going. From the money you make, pay for basic needs first, like food, shelter, clothing and transportation. If there are funds left over, I would attempt to eliminate the loan debt as soon as you are able. I wish you the best. Bob

I need to manage my money better

by volente joseph
(South Africa)

Hi Bob, I'm in great fincail difficulty and trying to lend money from almost everyeher, everyday. i have become a compulsive gambler, losing thousands of rands on a weekly basis and I'M SCARED NOW!. i cant go on living like this and lying to my husband about where the money has gone. we have three beautiful children and i'm not coping. i earn a great salary and i think that it why i gamble. I'm praying about this problem and trusting in GOD to set me free from all of this, but I need to find something else to do than go to a casino the moment i get money. please help!

Comments:



by: Bob

Congratulations. You understand that you cannot continue down your current financial path. If you feel you can't control your unhealthy habits, you may want to seek professional counseling. Additionally, my ebook, The Financial Facelift, which is illustrated on this page, will give you a road map to eliminate debt and educate you on how to take control of your personal finances. I wish you the best. Bob

Debts and no clue of solving

by Nekeisha
(Trinidad)

I have to pay my full tution for school thid semester and i dont have an idea where i would get thet money, i also stressed out where i live and i want to build a house of my own and i dont know where i would get the money and i also have no money save for rainy days and that thought is stressin me out

Comments:



by: Bob

It's very easy to become overwhelmed by bills. If you are not doing so now, create a personal budget listing all the expenses you have and set aside a portion of your income to pay basic needs expenses first, like food, shelter, transportation, followed by other expenses. It is less stressful living with a money spending plan than not having one at all. All the best to you.

is it right to give an offerring with your credit card?

by Renee
(Trenton)

I saw a crad machine being walked around at church on this past Saturday Jan 2. I was a bit uncomfortable and stunded really. When the preacher was explaining about giving through bank and credit cards. I don't know what kinds of practicies our churches are doing, but right now I feel that it is not right to take someone's offering from a credit card, because it puts that person further in debt and it seems like you have to pay the bank (interest back) to give to the Lord. that doesn't seem right to me.

Comments:


by: Bob

Renee,

You bring up a valid point. Debt is not good and the use of credit cards can get people into trouble. Rather than use credit cards, our church offers a service whereby individuals can give electronically. We get authorization from our contributors by having them complete a form with their bank information and the amount they desire to give is automatically deducted from their checking or savings account. This practice eliminates the need for any credit cards.

How should we go about trying to cut down all of the different things on my husband credit report.

by Joy
(Hammond)

I did chapter 7 last year and only have three things on my credit report and that is IRS,Student Loan and a fin loan i made after my chapter7,but I decide to go head and start paying that off everything else is up to date.But, my husband has about or close to $10,000 worth of items on his credit report,we have pray and decided to start paying the smallest items off first and try if we can get them to settle on them before we pay them off,and after we try to get rid of all the small items then we will start working on the large one's.We have already start with one of the small items that was almost $400 and we got them to cut it in half.So, can you please help us.Thank you very much,may GOD Bless you

Comments:



by: Bob

Joy, you are to be congratulated for making the decision to pay off your bills. You are taking the correct approach--paying off the smallest balance first, then moving to the next largest debt balance. Additionally, your efforts in contacting the payor seem to be paying off. I would continue to contact them in an effort to negotiate your balance. The worst they will say is "no". If they agree, as you've already experienced, it will pay huge dividends. My ebook, which is illustrated on this page, will give you a solid path to follow to become debt free. You may want to check it out. All the best to you and your husband. Bob

My son needs financial help to finish school

by Sue
(East bay area, CA)

My son is trying to finish school in our home state, but he is working 3 jobs (volunteer firefighting, retail and machine shop)and going to school full time. The pressure is too much. His grades are starting to drop. He already has an AAS in Fire Safety, but found that getting a firefighting job is extremely difficult without a paramedic license. That is what he is working on. Since he was in school previously, he is unable to get grants. We were amongst the working poor when he was growing up as his dad didn't work due to mental illness. I tried to support the 3 of us on minimum wage for close to 20 years when I felt as though my own mental health was being compromised caregiving for his father. The environment didn't feel safe, but I had made a commitment to God and him that I had to overcome. My son had to over come learning disabilities as well. We have both struggled and worked hard to get where we are today. I am so proud of my son. I see his long struggling and he really needs a break.
I am blessed with a new husband, happily remarried 6 years ago, but am unable to help my son with finances as my husband hours were cut for 8 months and then he was laid off for 2. He just got back at work but we have a long way to catch up. We were so close to losing our home. I have been looking for a second job part time, but have been unable to find one with over 12% unemployment here. Is there a group out there or other resources that could help financially so my son can finish college, without being such a hardship financially, mentally and emotionally so he can get a decent job? He has only a year left.

Comments:



by: Bob

Hi Sue.

Your son needs to be commended for his persistency. Working three jobs while going to school full time takes a lot of effort and energy.

From your comments, it sounds like your son has a desire to become a firefighter. That's a great profession as I come from a family of firefighters. My brother who is an assistent chief in Minnesota, a paramedic, and registered nurse. He worked in a hospital emergency room for many years part time prior to assuming his new promotion. Your son is taking the right approach. Working as a volunteer firefighter many times can get a foot in the door for permanent hire.

With regard to financing for your son to complete college, if he hasn't already done so, I would have him talk to the college financial aid department. A counselor should be able to guide him as to what aid may be available regardless of prior grants (work study, scholarships, loans as a last resort, etc.). Also, he might take the time to do a search the internet under "financial aid for college". One site to check out is www.fafsa.ed.gov

More than anything else, I would suggest praying to God and asking Him for direction and what His plan is for your lives. Involve Him in your daily lives and He will help.

I wish you and your son all the best.

How can I stop from borrowing money?

by Vee
(Port Moresby, PNG)

I earn enough for the fortnight but I just cannot manage it for 2 weeks. So what happens, I start to borrow money from money lenders with interest. When fortnight comes I am repaying the money and my salary continues to decrease.

How can I stop borrowing money and start to manage and budget what I have for the 2 weeks?

Comments:



by: Bob

Hi Vee.

The borrowing game could be compared to a runaway train. Once the train gets rolling, it takes time and is very difficult to stop.

The first thing you need to do is get into a different mindset. Without a mindset change, you cannot expect things to change. You must seriously want your financial picture to change and begin to get better.

If you are not using a money spending plan (budget), you need to start one immediately. Know where every hard-earned dollars are being spent.

If you are not saving part of your paycheck, you need to pay yourself 10% of your take-home pay BEFORE you pay your creditors. The majority of people don't do this but this is a great habit to begin.

My ebook can be an excellent road map for you as it provides a step by step plan to get out of debt and begin to build wealth. I would highly recommend it for your situation.

All the best,

What do we do?

by Ashley

Hey Bob, My husband and I are in a very difficult situation. He brings $274.37, after taxes and things that come out, a week from one job. He also has a mowing job where he makes $7.55 an hour biweekly. He hasn't been getting many hours with that one since he started his Bible college online classes. The first thing we do is give tithes out of them. Another thing we get is $300 in food stamps. Which goes really fast. We struggle at the end of the month and get by with little. I stay home with two kids, well one of them started pre-k this year. We have a motorcycle payment that is $264 a month, which he doesn't ride because the owner where we bought it is letting us sit it at his shop to sell it. We have a $100 bank payment for a truck that is not drivable right now. Our phone bill is $88 now for the DSL internet he has to have. Our last electric bill was $143. Our insurance for our vehicles is $136. We have a gas bill that hasn't been but about $6 since it is not cold out yet. Our water bill runs between $50 and $60. This is about it not counting the household items and things like that we buy. My husband feels like that he works for nothing. We never have any money left. He needs pants and work boots but we are broke until Friday and we have to pay his bike payment late. I keep praying about me getting a job, but I have to wait on the Lord to open up a door. I want to do what God wants me to and so does my husband. Can you give a little advice while we wait on the Lord. We just feel like our hands are tied and we don't know what to do. We know the Lord will take care of all this and we try really hard not to worry, but there is a level of concern. Thanks for taking the time to read this.

Comments:



by: Bob

Hi Ashley.

Thanks for sharing your situation. You need to be
commended for giving your tithing top priority,
regardless of a tough financial condition. This
demonstrates total faith and trust in God. He
knows of your financial difficulties and will help guide you to better times.

The first step you need to complete is a personal
financial assessment. Begin with what I call a
"Money Spending Plan". List all your income
sources as well as all monthly expenses. It's much easier to see where you stand financially if you have it on paper. From what you've indicated,
though, it appears that your main challenges are
more income related.

Have you and your husband talked about a career
change that would generate more income for the
family? Also, a second income would certainly help but then you need to consider childcare, clothing, transportation, and other job related expenses as a result of employment. The path you are on now, in my opinion, is not promising or healthy.

The information in my ebook, The Financial
Facelift, can help you take steps to build a solid financial foundation based on biblical principles. Those guidelines, along with prayer and faith in God, I believe you could see some positives changes in your lives.

In closing, one of my favorite bible verses comes
from Proverbs 16:9 and it reads, "In his heart a
man plans his course, but the Lord determines his
steps." Decide to be of service to God and
humanity in an area that really excites you and
then let Our Father take care of the rest.

With prayers for a brighter future,

Bob Smith, CFP

college tuition

by Sylvia
(Albany, NY)

Hi Bob,

My husband was laid off from his job and I'm currently working two jobs just to make ends meet. Before this happened we put aside some money for our kids college fund, but now we need the money just so we don't go under.

How are we supposed to pay for college now? It will take forever to make up for what we're losing.

Comments:



by: Bob

Hi Sylvia.

I'm sorry to hear about your husband's job loss. So many American families are experiencing tough times now.

My first question would be whether or not your husband has filed for state unemployment benefits. If so, and if he qualifies, that could be an additional source of income.

With regard to college tuition, and as difficult as it is, you are doing the proper thing. You are fortunate to have an emergency money source, even if it is a college fund. Know that your basic living needs must take priority over education funding. When you get through this tough stretch in life, and you will, opportunities will arise to allow you to replenish the college fund. God will see to that, according to His plan for your lives. Just trust Him and continue to pray.

i need help to set right my financial situation

by Bhanu
(Dubai,UAE)

I am in a situation where my income is much lower than my expenses and my liabilities.

i was unable to control my funds to proper use. in many ways i feel i have miss used my income.

most of the months i feel i am unable to meed ends. so i keep borrowing more and more just to fulfil my needs. i want to keep a stop on borrowing, but unable to do so as my liabilities and expenses are making me borrow.

how do i rectify this situation.

Comments:



by: Bob

I am not familiar with personal finance issues outside of the United States. What I would suggest is for you to contact a local debt counselor to help you with your specific situation. I can tell you that getting into debt involves a certain mindset and in order for your situation to improve you will need to be willing to change some personal habits related to money. Good luck!

This is for my sister and her family

by Lynette
(Roodepoort)

We are real estate agents, and all home owners who are in arrears with our homeloans. My sister's husband is employed by us and he has not earned a cent for months. We don't know how they are surviving. I try and help here and there behind my husband's back, but we are also struggling and it is difficult. They have 3 children, and I don't know if they are eating regularly and we also don't know if and when the bank is going to forclose on their home.I love them dearly and I want for them to get back on their feet, I ust feel so helpless, please pray for them and advise

Comments:


by: Bob

Lynette,

I truly empathize with you. The current real estate market has been devastating for many families and who knows when things will begin to get better.

I commend you for your caring nature in the midst of the family financial struggles being experienced.

It might be worthwhile for them to contact a qualified financial counselor in their area to get some financial advice and assistance, if they haven't already done so.

I will pray that they find a solution during these difficult times.

All the best,

Bob

medical bills and credit cards

well a few years ago my husband and i got into a big situation where we had to use a credit card to get by for daily needs for our three children ages 7,6, and 2. on top of that we have had medical that keep racking up. none of the kids have insurance at this time due to cost of the insurance. please help us this is putting a strain on our marriage as well my husband and i are completely overwhelmed.

Comments:


by: Bob

Thanks for sharing.
It's so easy to get overwhelmed once credit cards get used for daily living expenses. In addition to normal expenses, it's not unusual for extraordinary expenses, like medical bills, to begin to surface. Financial distress can certainly take a toll on relationships.
Without knowing the financial details of your situation, my suggestion would be to check out local agencies through your city or county. There should be listings in the phone directory for qualified credit counselors that should be able to help guide you through your tough situation. I pray for you and your family.

Helping our kids

by Jessica
(Ft Lauderdale, FLA)

We have been married for 26 years and we have a daughter who is 22 and recently married. Her new husband was laid off from his job and now they're in trouble financially.

We are able to help some but my husband and I don't agree on how much to help. I say we should let them move in here until they're on their feet again.

He says we should give them some money to help pay the bills, but that they should struggle through this on their own. What do you say?

Comments:


by: Bob

Hi Jessica.

Thanks for sharing your situation.

Both you and your husband have valid concerns.

Personally, I can relate to your family issue. My daughter's husband went through a similar job-loss ordeal.

At our suggestion, they moved in with us for nine months, which gave them time to organize and establish a plan to get back on their feet. We welcomed them with open arms but we made it crystal clear that their time spent with us would need to be focused on earnest job-searching activities and that the "money tree" was temporary, not perpetual. They agreed with us and fulfilled their commitment. Both of them now enjoy successful careers. We were glad to help them through difficult times and they truly appreciated the free but temporary room and board.

I hope my personal story helps somewhat. We found that open communication can be of immeasurable value.

Trust in God and pray to Him during this family journey.

All the best.

I HAVE SO MUCH DEBT THAT I AM FAILING TO SETTLE THEM DONW. I GIVE MY TITHE.

by IREEN B SAMPA
(ZAMBIA)

I AM A MOTHER OF EIGHT CHILDREN, MY HUSBAND HAS BEEN OUT OF EMPLOYMENT FOR THE PAST 3 YEARS NOW. AMONG THESE CHILDREN ONE IS IN THE UNIVERSITY DOING A DEGREE PROGRAM AND HE IS IN HIS SECOND YEAR, THE GOVERNMENT OF OUR COUNTRY (ZAMBIA) HAVE DENIED HIM A BARSARY DESPITE ALL THE DOCUMENTATION AND ATTEMPTS, WE TRIED IN THE FIRST YEAR AND EVEN SECOND YEAR TO NO AVAIL. I HAVE TWO GIRLS WHO ARE DOING THEIR LAST YEAR IN SECONDARY SCHOOL AND ANOTHER ONE WHO IS DOING HER FINAL GRADE IN PRIMARY SCHOOL. ON TOP OF THAT I WORK OUT SIDE TOWN SO I HAVE TO PART AWAY WITH SOMETHING LIKE TEN DOLLARS A DAY FOR MY TRANSPORT AND AND I GET ABOUT 683 DOLLARS A MONTH IN WHICH I HAVE TO SORT OUT OTHER OBLIGATIONS. THE TRUTH IS I BORROWED ALOT JUST TO MAKE ENDS THAT I HAVE FAILED TO PAY BACK AND SOME INDIVIDUALS AND INSTITUTIONS WHERE I BORROWED THE MONEY ARE THREATENING TO TAKE LEGAL ACTION AGAINST ME, I AM BELIEVING GOD FOR A MIRACLE.I AM THE FIRST BORN IN THE FAMILY OF 7 AND MOST OF MY SIBLINGS ARE NOT WORKING SO THE BURDEN FOR ME FINANCIALLY IS TOO MUCH ESPECIALLY THAT BOTH MUM AND DAD DIED ALONG TIME AGO. I HAVE TWO LOANS WITH TWO DIFFERENT BANKS RESPECTIVELY AND I HAVE AN ADVANCE WITH MY EMPLOYERS WHICH REDUCES MY TAKE HOME SALARY. I HAVE EXHAUSTED ALL AVENUES AND NOW AM JUST TRUSTING MY GOD. I ONLY PRAY AND WAIT FOR THE DAY WHEN I WILL CLEAR THE DEBTS OUTSTANDING BECAUSE I JUST WANT ALL THIS TO END AS I DONT HAVE A FREE MIND AS AT NOW AND ALOT OF THINGS HAVE BEEN AFFECTED.

Comments:



by: Bob

I am not familiar with personal finance-related issues outside of the United States. My suggestion would be to contact a local debt counselor in order for them to assess your specific situation. Hopefully they will be able to give you the professional advice you seek. I will pray for you and I wish you the best in resolving your financial situation.

Credit Card debt

by Elly
(Brownsville, TX)

Bob,

We have a ton of credit card debt. Thousands actually. We have some money in our 401k. Should we take it out to pay down the credit card debt?

We both work and pretty sure our jobs are stable. We've always been able to make ends meet, but over the years we've gotten out of hand in our spending with credit cards. How do we stop the madness?

Comments:



by: Bob

Thanks for sharing your Credit Card debt situation.

Without having detailed information, I'm not in a position to give you specific recommendations. However I can share some general comments with you.

Debt is not good, particularly, consumer debt, like credit cards. As you indicated, personal spending can quickly get out of hand. If you and your husband both agree that it's time for change and both of you can get into a mindset of permanent debt elimination, it can be done. The process is simple but it is not easy. It takes persistent effort over time but the rewards are enormous.

Regarding the money in your 401k account(s), you need to be very careful. Withdrawing funds from "qualified" or tax-deferred accounts, in your case to pay down debt, could trigger some unpleasant events. Depending on your age, you could be subject to penalties, taxes and other charges. However, there are ways to legitimately withdraw qualified money prior to age 59 1/2 without penalty.

In my book, The Financial Facelift, I address the step by step process of eliminating debt in order to gradually and systematically accumulate wealth. If you are interested you can order from this page.

To a brighter financial future for you and your husband,

Bob