This is a slight departure from my regular topics, although this topic is tangentially related. I want to talk about spending money on something important, namely pulling your own state issued identification paperwork (birth certificate, state ID, passport, etc.). However, I will be discussing this in the context of the recent changes in the Voting Rights Act of 1965.
RECENT CHANGES IN THE VOTING RIGHTS ACT
On June 25th, 2013, the Supreme Court changed the Voting Rights Act of 1965. In the case, Shelby County (Alabama) v. Holder 570 U.S. ___ (2013),the Supreme Court decided that
"Nearly 50 years later, things have changed dramatically. Largely because of the Voting Rights Act, “[v]oter turnout and registration rates” in covered jurisdictions “now approach parity. Blatantly discriminatory evasions of federal decrees are rare. And minority candidates hold office at unprecedented levels.”...The tests and devices that blocked ballot access have been forbidden nationwide for over 40 years. Yet the Act has not eased [Section] 5’s restrictions or narrowed the scope of [Section] 4’s coverage formula along the way. Instead those extraordinary and unprecedented features have been reauthorized as if nothing has changed, and they have grown even stronger. Because [Section] 5 applies only to those jurisdictions singled out by [Section] 4, the Court turns to consider that provision... Section 4’s formula is unconstitutional in light of current conditions..."
PLAIN LANGUAGE
The Voting Rights Act was put into place in 1965 to protect Voters Rights in nine southern states where people were being prevented from voting based on their race. These nine states were required, under the Voting Rights Act, to submit their voting processes to a preclearance review by the federal government to ensure that there were no discriminatory hindrance to voting. Shelby County, Alabama sued to have these preclearance restrictions removed. A Supreme Court majority voted to remove them.
In the decision on June 25th 2013, the Supreme Court decided that the Voting Rights Act, is too restrictive (unconstitutional), outdated, and worked so well that voter registration and voter turnout "now approach parity."
However, the only reason why it worked so well, is BECAUSE it was kept in place for forty - eight years. Left to their own devices, certain states (ie Texas) would have continued the poll taxes, grandfathering, pre-vote testing and voter harassment right up until the last election cycle. As Justice Ruth Bader-Ginsberg wrote in her dissent (opinion of a Justice who disagrees with the majority decision), "Throwing out preclearance when it has worked, and is continuing to work to stop discriminatory changes, is like throwing away your umbrella in a rainstorm because you are not getting wet."
WHERE IS YOUR ID?
On the flip side, there are STILL many people of color and poor people who are not registered to vote, don't have a state ID, drivers license or even a certified copy of their own birth certificate. If the pre-1965 gatekeeper restrictions to voting resurface, guess what they will ask to see as proof of citizenship and/or proof of residency? Your people may have been in the US since the 1700s due to slavery, but in this post 9/11, anti-immigrant climate, we all need to be prepared so we can participate in this essential American function: The Vote.
We can/ should lobby to put the protections back in place. Those of us who know, know that we still need them. There are new barriers to voting that were not even considered by the drafters of the Voting Rights Act back in the 1960s, such as:
relocating long - standing polling places weeks before the elections,
placing broken and/or ancient polling machines in polls in people of color neighborhoods,
creating new and odd shaped voting districts that dilute the Black vote,
purging voter rolls using arbitrary criteria,
repeating, cancelling or delaying elections,
implementing voting barriers based on language and mobility.
And some of the old barriers are making a resurgence.
HELP YOURSELF TO HELP YOURSELF
In the meantime, we need to be working on a massive, multi-platform, public education campaign. We need to help people understand that there IS no "under the radar" anymore. Not since Google came out. That the cost of obtaining your state issued ID, a certified copy of your birth certificate and/or naturalization papers is well worth it. But if cost is a real barrier, then we need to fundraise or donate the funds to help everyone be able to identify themselves.
Pay off those old tickets and reinstate your drivers license. Contact the Department of Health or Department of Vital Records in the town where you were born, and buy a certified copy of your birth certificate. Consider contacting your closest Department of State office and apply for your US Passport. You may not be travelling anywhere soon. But a Passport is the ultimate proof of citizenship. We also need to work to support the various re-enfranchisement campaigns that help inmates and former inmates to reinstate their voting privileges. Since a disproportionate number of people of color and poor people are/were inmates, this is a population that needs special attention concerning their voting rights. People who cannot vote, need to be working on their favorite candidate's campaign.
Many state governments such as those in Alabama, Texas and Florida work hard to make it difficult for poor people and people of color to vote. Don't make it easy for you to be stripped of your right to vote in your home state. Get your own paperwork in order. A slight majority (5-4) of the Supreme Court basically decided that the Voting Rights Act worked so well, we don't need it anymore. Lets prove them right!
And Let's Be Careful Out There.
Sunday, June 30, 2013
Sunday, June 16, 2013
BEFORE YOU SAY, "I DO"
Ahh Spring! The flowers are blooming, the winter coats go into storage and/ or to the Cleaners (for some of us, these are one and the same) and the wedding season is officially on the way. Wedding budget planning is important, even if you are eloping. But financial planning for your marriage is even more important. You may not think you have enough marital assets to plan more than a trip to the grocery store, but considering that financial troubles break up more couples than infidelity, this is a very important topic to discuss. Here are five topics you should discuss with your Hunny before you tie the knot:
HOW MUCH DEBT DO YOU HAVE?
A few posts earlier, I discussed pulling your credit reports. This would be a good time to do so. You don't want to have any bad surprises at the car dealership or the mortgage lender after you tie the knot. Today, some employers and rental apartments ask for a credit check as part of a background check. You don't want to be denied employment or a nicer apartment because of your credit report. Especially when you can pull them, review them and correct them for free ahead of time.
If you do have negative credit history, take care of it. Make payment arrangements for any back taxes or child support. Apply for a repayment adjustment for your student loans. Marriage is a big step. Take the small steps first.
WHAT KIND OF DEBT DO YOU HAVE?
Educational loans, car notes and mortgages are usually good types of debt to have. Your education and your real estate are investments and assets that can increase in value over time. A car will decrease in value. But since most people use their cars as transportation to school or work, this is another type of good debt.
However, unsecured debt, such as lines of credit, credit cards and store cards can drag your credit score down and are often used to buy things that decrease in value. Chances are you will still be paying off the original payment and the interest on the shoes you bought on your Macys card, long after the season changes, you stop wearing them and give them to the Goodwill. Reduce your unsecured debt as much as possible before your marriage begins. Pay it down, high interest rate debt first, until you are left with one or two lines of unsecured debt with lower interest rates.
CHILDREN AND PARENTS
Do either of you have primary custody of minor children? Will they be a part of your household when you get married? How old are they, and are any college-bound? Obviously, there are emotional, discipline and visitation issues that should be discussed. But also take time to agree on the financial arrangements for your children and step-children. Will you need diapers? Childcare? Peanut free food? A Wii? Will your family be eligible for WIC, child support, social security or foster care payments, or financial aid to help with the financial care of the child?
Do either of you have parents who are elderly or ill (mentally or physically)? Were you the one to care for the legal and financial issues for this parent before you got engaged? Will this parent be living in your new household? Will you need diapers? A home health aide? A power of attorney to handle their finances, should they become unable to do so? They may need help with everything from choosing a healthcare plan to putting their money in a trust for their long term care. Children and Parents should be part of the discussion before marriage.
WHO COVERS WHAT BILL?
There is no one "correct" way to split your household bills, so long as they are paid regularly and on time. Obviously, housing, food and transportation are the top three priorities in any household, followed by education or job training. You should both have bank accounts with debit card access, so you can pay bills electronically and on line. Also, you should consider the amount of monthly take home pay for each person. If one future spouse is making significantly less income or no income, the higher earning spouse may have to take on a higher percentage of the shared household bills.
LOSS OF INCOME
You also want to discuss temporary loss of income. The unexpected may happen, health issues, doctor-prescribed bed rest during pregnancy, layoffs, etc. However, future spouses should discuss future PLANNED loss of income. For instance, if you know you will leave the workforce when you have children, or go down to part time when you return to school for your masters degree, or that you will cut your hours when your elderly parent retires, discuss this with your future spouse ahead of time. Again, you want to avoid bad surprises and resentment.
BONUS: TRY A LITTLE TENDERNESS
Even if these topics don't seem important in your relationship, the most important thing is to have a discussion, any discussion, about your future finances as a couple. It will make the transition to married life a little easier. Also, if you are the higher earning spouse, remember to be gentle and respectful to your Hunny. This is a time to show your compassion and love. Where your treasure is, there your heart will be also.
Let's Be Careful Out There!
HOW MUCH DEBT DO YOU HAVE?
A few posts earlier, I discussed pulling your credit reports. This would be a good time to do so. You don't want to have any bad surprises at the car dealership or the mortgage lender after you tie the knot. Today, some employers and rental apartments ask for a credit check as part of a background check. You don't want to be denied employment or a nicer apartment because of your credit report. Especially when you can pull them, review them and correct them for free ahead of time.
If you do have negative credit history, take care of it. Make payment arrangements for any back taxes or child support. Apply for a repayment adjustment for your student loans. Marriage is a big step. Take the small steps first.
WHAT KIND OF DEBT DO YOU HAVE?
Educational loans, car notes and mortgages are usually good types of debt to have. Your education and your real estate are investments and assets that can increase in value over time. A car will decrease in value. But since most people use their cars as transportation to school or work, this is another type of good debt.
However, unsecured debt, such as lines of credit, credit cards and store cards can drag your credit score down and are often used to buy things that decrease in value. Chances are you will still be paying off the original payment and the interest on the shoes you bought on your Macys card, long after the season changes, you stop wearing them and give them to the Goodwill. Reduce your unsecured debt as much as possible before your marriage begins. Pay it down, high interest rate debt first, until you are left with one or two lines of unsecured debt with lower interest rates.
CHILDREN AND PARENTS
Do either of you have primary custody of minor children? Will they be a part of your household when you get married? How old are they, and are any college-bound? Obviously, there are emotional, discipline and visitation issues that should be discussed. But also take time to agree on the financial arrangements for your children and step-children. Will you need diapers? Childcare? Peanut free food? A Wii? Will your family be eligible for WIC, child support, social security or foster care payments, or financial aid to help with the financial care of the child?
Do either of you have parents who are elderly or ill (mentally or physically)? Were you the one to care for the legal and financial issues for this parent before you got engaged? Will this parent be living in your new household? Will you need diapers? A home health aide? A power of attorney to handle their finances, should they become unable to do so? They may need help with everything from choosing a healthcare plan to putting their money in a trust for their long term care. Children and Parents should be part of the discussion before marriage.
WHO COVERS WHAT BILL?
There is no one "correct" way to split your household bills, so long as they are paid regularly and on time. Obviously, housing, food and transportation are the top three priorities in any household, followed by education or job training. You should both have bank accounts with debit card access, so you can pay bills electronically and on line. Also, you should consider the amount of monthly take home pay for each person. If one future spouse is making significantly less income or no income, the higher earning spouse may have to take on a higher percentage of the shared household bills.
LOSS OF INCOME
You also want to discuss temporary loss of income. The unexpected may happen, health issues, doctor-prescribed bed rest during pregnancy, layoffs, etc. However, future spouses should discuss future PLANNED loss of income. For instance, if you know you will leave the workforce when you have children, or go down to part time when you return to school for your masters degree, or that you will cut your hours when your elderly parent retires, discuss this with your future spouse ahead of time. Again, you want to avoid bad surprises and resentment.
BONUS: TRY A LITTLE TENDERNESS
Even if these topics don't seem important in your relationship, the most important thing is to have a discussion, any discussion, about your future finances as a couple. It will make the transition to married life a little easier. Also, if you are the higher earning spouse, remember to be gentle and respectful to your Hunny. This is a time to show your compassion and love. Where your treasure is, there your heart will be also.
Let's Be Careful Out There!
Wednesday, April 24, 2013
SAVE A FARMER! APPLY FOR FOOD STAMPS
Tired of eating beans, soup and tuna everyday? Get hit with the sticker shock at your local grocery store? On a special diet due to health or religious restrictions, but your hours got cut at work? Even if you're working, you may be able to qualify for food stamps. Think food stamps are a shameful welfare handout? Not really. Consider the following:
FOOD STAMPS ARE NOT WELFARE
The Food Stamps program, now called SNAP (Supplemental Nutrition Assistance Program) is not run by the Department of Social Services. Although you apply for food stamps at your local DSS office, the SNAP program is run by the Department of Agriculture. It is actually a stimulus for the farmers. When there is a recession, people buy less food and the farm industry suffers. The USDA has also eliminated the actual "stamps." When you use food stamps today, you will be using a pre-loaded debit card.
Because its a stimulus, many single people and working families are eligible to receive food stamps. To find out if you are eligible, you can prescreen yourself on the USDA Website.
FOOD IS RIDICULOUSLY EXPENSIVE
Everyone has suffered that pesky sticker shock at the grocery store. During the recession, it seems that food prices have increased 50% to 75% percent. Trying to feed a family with a reduced income is difficult. People are switching to the generic or store brand at the major grocery stores. Some have begun shopping at discount grocery stores like Save-A-Lot. Some people have started shopping for food at non-grocery stores, like the Dollar Tree, just to get some relief! However, the selection may be sparse and quality may be questionable.
If you have dietary restrictions due to health, allergies or religion, it gets even trickier. For instance: Many of the cheaper foods are made with peanuts or peanut oil. Many foods are made in facilities that also produce nuts. You don't lose your nut allergies if you're poor. You cant start drinking cow's milk if you are lactose intolerant. If you're Muslim, you still cant eat pork. If you're diabetic you will still need to eat a sugar substitute. With food stamps, you can buy healthy foods of your choice that also maintain your dietary restrictions.
FOOD PANTRIES ARE FRIENDLY
If you are ineligible for the SNAP program for any reason, you can look into local food pantries. Food Pantries are private organizations that distribute free groceries to the public. Some are funded by corporations or donations. Some are based in houses of worships, shelters or community centers. There are national websites such as feedingamerica.org and foodpantries.org . However, if you Google your own hometown and the words "food pantry," you will probably find a local organization or list of places to go for food and/or soup kitchens. You may have to register with the food pantry to receive food. This is not an invasion of your privacy. They need to record how many people they help, so they can continue to receive their funding and donations. Make sure you bring your ID and a shopping cart and/or your car.
Of course, because the food pantries are private, you can go to a food pantry even if you are a SNAP recipient. If your food stamps run out before the month does, take a look at your local food pantry to fill in with the basics, temporarily, until you get back on your feet.
GET WHAT YOU NEED
You can use food stamps for almost everything in a grocery store and most non-prepared food everywhere else. So in other words, you cannot use them at your local pizzeria. But you can use them to buy a frozen pizza from your favorite big box store. Because you can use the food stamps to purchase food at non-grocery stores, you can also shop around for the best prices. If your local big chain drug store has eggs on sale, you can grab a couple dozen from there. Eggs are covered!
Also, even though you sign up for your food stamps at your local DSS office, they originate from the Department of Agriculture (the federal government), so they are good nationwide. If you move out of state to find work, you can use your food stamps in your new state, or you can open a case with DSS in your new state.
Use your income, unemployment, severance pay, family donations for your housing, utilities, transportation, etc. Food is expensive, perishable and something you need to use and replace everyday. Find as much healthy free food as you can. Apply for food stamps if you are eligible, use the food pantries when you need to.
DONT BE ASHAMED
Don't ever be ashamed to get what you need for yourself or your family. If you or any of your family has ever held a job in the United States, you've already paid into the system. If you need temporary help due to a financial emergency of any kind, don't be afraid or ashamed to get help.
If it makes you feel better, offer to donate time, food or money at a local food pantry when you are able. They will be glad to have you.
Let's Be Careful Out There!
FOOD STAMPS ARE NOT WELFARE
The Food Stamps program, now called SNAP (Supplemental Nutrition Assistance Program) is not run by the Department of Social Services. Although you apply for food stamps at your local DSS office, the SNAP program is run by the Department of Agriculture. It is actually a stimulus for the farmers. When there is a recession, people buy less food and the farm industry suffers. The USDA has also eliminated the actual "stamps." When you use food stamps today, you will be using a pre-loaded debit card.
Because its a stimulus, many single people and working families are eligible to receive food stamps. To find out if you are eligible, you can prescreen yourself on the USDA Website.
FOOD IS RIDICULOUSLY EXPENSIVE
Everyone has suffered that pesky sticker shock at the grocery store. During the recession, it seems that food prices have increased 50% to 75% percent. Trying to feed a family with a reduced income is difficult. People are switching to the generic or store brand at the major grocery stores. Some have begun shopping at discount grocery stores like Save-A-Lot. Some people have started shopping for food at non-grocery stores, like the Dollar Tree, just to get some relief! However, the selection may be sparse and quality may be questionable.
If you have dietary restrictions due to health, allergies or religion, it gets even trickier. For instance: Many of the cheaper foods are made with peanuts or peanut oil. Many foods are made in facilities that also produce nuts. You don't lose your nut allergies if you're poor. You cant start drinking cow's milk if you are lactose intolerant. If you're Muslim, you still cant eat pork. If you're diabetic you will still need to eat a sugar substitute. With food stamps, you can buy healthy foods of your choice that also maintain your dietary restrictions.
FOOD PANTRIES ARE FRIENDLY
If you are ineligible for the SNAP program for any reason, you can look into local food pantries. Food Pantries are private organizations that distribute free groceries to the public. Some are funded by corporations or donations. Some are based in houses of worships, shelters or community centers. There are national websites such as feedingamerica.org and foodpantries.org . However, if you Google your own hometown and the words "food pantry," you will probably find a local organization or list of places to go for food and/or soup kitchens. You may have to register with the food pantry to receive food. This is not an invasion of your privacy. They need to record how many people they help, so they can continue to receive their funding and donations. Make sure you bring your ID and a shopping cart and/or your car.
Of course, because the food pantries are private, you can go to a food pantry even if you are a SNAP recipient. If your food stamps run out before the month does, take a look at your local food pantry to fill in with the basics, temporarily, until you get back on your feet.
GET WHAT YOU NEED
You can use food stamps for almost everything in a grocery store and most non-prepared food everywhere else. So in other words, you cannot use them at your local pizzeria. But you can use them to buy a frozen pizza from your favorite big box store. Because you can use the food stamps to purchase food at non-grocery stores, you can also shop around for the best prices. If your local big chain drug store has eggs on sale, you can grab a couple dozen from there. Eggs are covered!
Also, even though you sign up for your food stamps at your local DSS office, they originate from the Department of Agriculture (the federal government), so they are good nationwide. If you move out of state to find work, you can use your food stamps in your new state, or you can open a case with DSS in your new state.
Use your income, unemployment, severance pay, family donations for your housing, utilities, transportation, etc. Food is expensive, perishable and something you need to use and replace everyday. Find as much healthy free food as you can. Apply for food stamps if you are eligible, use the food pantries when you need to.
DONT BE ASHAMED
Don't ever be ashamed to get what you need for yourself or your family. If you or any of your family has ever held a job in the United States, you've already paid into the system. If you need temporary help due to a financial emergency of any kind, don't be afraid or ashamed to get help.
If it makes you feel better, offer to donate time, food or money at a local food pantry when you are able. They will be glad to have you.
Let's Be Careful Out There!
Sunday, April 7, 2013
ITS OKAY TO 401K
Your job offers a 401K. It's an extra deduction from your paycheck and you need all the money you can get today, not sometime in the future when you retire, so why would you participate in your workplace 401K program? It's so crazy, it just might work. Consider the following:
WHAT IS A 401K?
401K is actually the name of the chapter of the Internal Revenue Code that allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 1978. You can put aside pre-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. These funds will be taxed on withdrawal.
WHAT IS A ROTH 401K?
Roth 401K also allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 2006. You can put aside after-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. The account must be at least five years old before withdrawal. Since these funds were already taxed, they can be tax free on withdrawal. The Roth 401K was due to be phased out in 2010, but was reinstated by an Executive Order and is still available to workers today.
HOW DOES IT WORK?
Usually, a small percentage of each paycheck goes into a retirement account. The amount is then invested in a package of stocks, municipal bonds, mutual funds, etc. Many companies will match a percentage of what you put in. For instance, if your paycheck is $1000 before taxes and your 401K contribution is 3%, $30 per paycheck would go into this account. If your employer matches your contribution at 50%, your retirement account will receive an additional $15 per paycheck.
HOW DO I PARTICIPATE?
Speak to the HR Department at your job to determine if such a program is available. It's also a good idea to speak to the "plan administrator" if one is available. This is the person who works for the company that administers the actual retirement accounts. He or she will be able to help you choose the group of investments that is right for your package. If you are younger, you may put together a package that contains less aggressive, long term investments. If you are closer to retirement age, you may want to go with more aggressive investments because you have less time to build your account.
Your employer may bring a plan administrator in to speak to the employees in a workshop setting. Attend this workshop to gather more information, even if you haven't decided whether you will participate.
AN ASSET IN A TIME OF TROUBLE
Your retirement fund is also an asset. In case of emergency, you can borrow against it. However, because these funds are meant for retirement, they will not be as liquid as a bank account. If you are not yet retirement age, you can withdraw the funds with substantial penalties in case of certain specified financial emergencies.
PLAN FOR YOUR FUTURE
Lets face it. The retirement funds our parents and grandparents relied on will not be available to anyone after the Baby Boomer generation. Anyone born after 1959 will likely have to plan for our retirement with an assortment of extended work life, social security, pension, retirement investments, savings and our own children! Don't wind up as an eighty-five year old Greeter at Walmart.
Plan properly for your retirement!
Let's Be Careful Out There!
WHAT IS A 401K?
401K is actually the name of the chapter of the Internal Revenue Code that allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 1978. You can put aside pre-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. These funds will be taxed on withdrawal.
WHAT IS A ROTH 401K?
Roth 401K also allows for tax deferred income to be used for retirement with maximum limits set by the IRS. This retirement benefit has been around since 2006. You can put aside after-tax income to be used for your retirement. After age 59 1/2 you can withdraw the money for retirement. The account must be at least five years old before withdrawal. Since these funds were already taxed, they can be tax free on withdrawal. The Roth 401K was due to be phased out in 2010, but was reinstated by an Executive Order and is still available to workers today.
HOW DOES IT WORK?
Usually, a small percentage of each paycheck goes into a retirement account. The amount is then invested in a package of stocks, municipal bonds, mutual funds, etc. Many companies will match a percentage of what you put in. For instance, if your paycheck is $1000 before taxes and your 401K contribution is 3%, $30 per paycheck would go into this account. If your employer matches your contribution at 50%, your retirement account will receive an additional $15 per paycheck.
HOW DO I PARTICIPATE?
Speak to the HR Department at your job to determine if such a program is available. It's also a good idea to speak to the "plan administrator" if one is available. This is the person who works for the company that administers the actual retirement accounts. He or she will be able to help you choose the group of investments that is right for your package. If you are younger, you may put together a package that contains less aggressive, long term investments. If you are closer to retirement age, you may want to go with more aggressive investments because you have less time to build your account.
Your employer may bring a plan administrator in to speak to the employees in a workshop setting. Attend this workshop to gather more information, even if you haven't decided whether you will participate.
AN ASSET IN A TIME OF TROUBLE
Your retirement fund is also an asset. In case of emergency, you can borrow against it. However, because these funds are meant for retirement, they will not be as liquid as a bank account. If you are not yet retirement age, you can withdraw the funds with substantial penalties in case of certain specified financial emergencies.
PLAN FOR YOUR FUTURE
Lets face it. The retirement funds our parents and grandparents relied on will not be available to anyone after the Baby Boomer generation. Anyone born after 1959 will likely have to plan for our retirement with an assortment of extended work life, social security, pension, retirement investments, savings and our own children! Don't wind up as an eighty-five year old Greeter at Walmart.
Plan properly for your retirement!
Let's Be Careful Out There!
Monday, March 18, 2013
STUDENT LOANS: GET YOUR LIFE!
STUDENT LOANS: CANT LIVE WITH THEM, CANT EAT WITHOUT THEM
Student loans are necessary for most of us who want to obtain higher education. This is not a debt, but an investment. Even your car note, while important, pays for something that loses value over time. Your education loans pay for something that never decreases in value, and benefits your entire community. Also, unskilled work that existed a generation ago (factory work, some service jobs, most farming, etc) have been phased out, sent over seas, or routed to prisons for a cheaper labor source. Today, most available jobs require at least a bachelors degree. Scholarships, Grants, Work Study, Internships and Loans all make up a package to cover your life and expenses while you are obtaining your degree(s). Like my mother always told us, "Your education is something no one can take away from you."
WHATS YOUR TYPE?
Whenever possible, try to make sure your student loans are federally guaranteed. Some federal loan programs are: Perkins, Direct Unsubsidized, Direct Subsidized and PLUS (taken by the parent). Federal loans have more relaxed application criteria, lower fixed interest rates, a possible tax deduction on the interest, and a wide variety of repayment options.
There are also private student loans issued by banks and credit unions. However, the bank loans are private loans which may be harder to qualify for. They often require a credit check and may be harder to defer should you run into financial difficulty after graduation. The interest rates are usually higher and/or variable. Also, because they are considered unsecured debt, there is no tax deduction available for the interest paid on these loans.
WHEN THINGS GO WRONG, AS THEY SOMETIMES WILL
If you are actually unable to make your student loan payments, you can apply for a deferment or forbearance. A deferment is when you stop making loan payment and interest does not accrue. You may be able to apply for a deferment if you've returned to school, you're unemployed or under extreme financial hardship. Deferment may also be available if you work in a certain industry or field after graduation, or if you are serving in the military.
A forbearance is available if you don't qualify for a deferment, but you need to stop payments temporarily, make smaller payments, or extend the loan payments over a longer period of time. Interest accrues during a forbearance. Contact your loan servicer and financial aid office to get more information on these programs.
LETS PUT IT ALL TOGETHER: CONSOLIDATION
If you have multiple federally guaranteed student loans, you may be able to apply for a consolidation. Consolidation is when you sign a new single loan to pay off multiple student loans. This program is not needs based, but it may make your payments smaller, and more convenient. The loan will take longer to pay off because, obviously, its larger than any of the individual loans. Also, loans that are not federally guaranteed cannot be included in a consolidation.
YES ITS OVER: CANCELLATION
In some cases, your student loan can be cancelled or forgiven. If you work in certain teaching or public service fields, your student loan may be partially or fully forgiven. Also, if your school closed or defrauded you to obtain loan funds in your name, your loan may be forgiven. In cases of full disability, bankruptcy or your death, your loans can be forgiven.
I WANT YOU BACK
Why you should repay your student loans:
Avoid garnishee and credit issues - Private student loan companies can sue borrowers in small claims court to retrieve a student loan that has gone into default status. However, default on a federal loan can cause garnishee of your paycheck, tax return, and other assets if no payment arrangement has been made. Either type of loan, if unpaid, can show up on your credit report as a slow pay or default.
Make every effort to contact your loan servicer at the first sign of financial difficulty and make arrangement for a deferment, forbearance or other alternative payment plan. Its may be uncomfortable or embarrassing, but a lot less so than a small claims court appearance.
Keep your options open - You may want to return to school or apply to a graduate, or post graduate program in the future. If you are in default with a past student loan, you may be prevented from applying for additional funding.
Keep options open for future students - In this time of recession and government cut-backs, statistics are being gathered to determine which programs work and which don't. Current policy decisions about the student loan programs are made based on the repayment history of past loan recipients. Some programs are being cut or phased out for current students. Do your part to make sure the student loan program is available for future students. Pay yours back.
Let's Be Careful Out There!
Student loans are necessary for most of us who want to obtain higher education. This is not a debt, but an investment. Even your car note, while important, pays for something that loses value over time. Your education loans pay for something that never decreases in value, and benefits your entire community. Also, unskilled work that existed a generation ago (factory work, some service jobs, most farming, etc) have been phased out, sent over seas, or routed to prisons for a cheaper labor source. Today, most available jobs require at least a bachelors degree. Scholarships, Grants, Work Study, Internships and Loans all make up a package to cover your life and expenses while you are obtaining your degree(s). Like my mother always told us, "Your education is something no one can take away from you."
WHATS YOUR TYPE?
Whenever possible, try to make sure your student loans are federally guaranteed. Some federal loan programs are: Perkins, Direct Unsubsidized, Direct Subsidized and PLUS (taken by the parent). Federal loans have more relaxed application criteria, lower fixed interest rates, a possible tax deduction on the interest, and a wide variety of repayment options.
There are also private student loans issued by banks and credit unions. However, the bank loans are private loans which may be harder to qualify for. They often require a credit check and may be harder to defer should you run into financial difficulty after graduation. The interest rates are usually higher and/or variable. Also, because they are considered unsecured debt, there is no tax deduction available for the interest paid on these loans.
WHEN THINGS GO WRONG, AS THEY SOMETIMES WILL
If you are actually unable to make your student loan payments, you can apply for a deferment or forbearance. A deferment is when you stop making loan payment and interest does not accrue. You may be able to apply for a deferment if you've returned to school, you're unemployed or under extreme financial hardship. Deferment may also be available if you work in a certain industry or field after graduation, or if you are serving in the military.
A forbearance is available if you don't qualify for a deferment, but you need to stop payments temporarily, make smaller payments, or extend the loan payments over a longer period of time. Interest accrues during a forbearance. Contact your loan servicer and financial aid office to get more information on these programs.
LETS PUT IT ALL TOGETHER: CONSOLIDATION
If you have multiple federally guaranteed student loans, you may be able to apply for a consolidation. Consolidation is when you sign a new single loan to pay off multiple student loans. This program is not needs based, but it may make your payments smaller, and more convenient. The loan will take longer to pay off because, obviously, its larger than any of the individual loans. Also, loans that are not federally guaranteed cannot be included in a consolidation.
YES ITS OVER: CANCELLATION
In some cases, your student loan can be cancelled or forgiven. If you work in certain teaching or public service fields, your student loan may be partially or fully forgiven. Also, if your school closed or defrauded you to obtain loan funds in your name, your loan may be forgiven. In cases of full disability, bankruptcy or your death, your loans can be forgiven.
I WANT YOU BACK
Why you should repay your student loans:
Avoid garnishee and credit issues - Private student loan companies can sue borrowers in small claims court to retrieve a student loan that has gone into default status. However, default on a federal loan can cause garnishee of your paycheck, tax return, and other assets if no payment arrangement has been made. Either type of loan, if unpaid, can show up on your credit report as a slow pay or default.
Make every effort to contact your loan servicer at the first sign of financial difficulty and make arrangement for a deferment, forbearance or other alternative payment plan. Its may be uncomfortable or embarrassing, but a lot less so than a small claims court appearance.
Keep your options open - You may want to return to school or apply to a graduate, or post graduate program in the future. If you are in default with a past student loan, you may be prevented from applying for additional funding.
Keep options open for future students - In this time of recession and government cut-backs, statistics are being gathered to determine which programs work and which don't. Current policy decisions about the student loan programs are made based on the repayment history of past loan recipients. Some programs are being cut or phased out for current students. Do your part to make sure the student loan program is available for future students. Pay yours back.
Let's Be Careful Out There!
Thursday, February 14, 2013
JUST SAY NO
Ahh, Valentine's Day! Flowers. Chocolates. Romantic Dinners. Spending too much is not advisable. However, making a loved one smile, giving someone a nice surprise, or simply keeping the peace in your relationship is worth its weight in gold! Plan ahead, be creative, and be smart about your Valentines spending.
That said, there are times when spending on your Hunny is not advisable. If you are living together, co parenting, dating, seeing eachother, or friends with benefits and you decide to share your money, you have no legal rights should things go wrong. Choose Wisely. If you intend to co-mingle your money wait until marriage, or at least until you put the agreement in writing. Or maybe, like First Lady Reagan told us years ago, "Just Say No.":
CREDIT CARDS
When you open a credit card for your Hunny, that card is still part of your account. You may both think this card belongs to your Hunny, but the credit card company has its account with you. When the payments are not made, the bad payment history will wind up on your credit report. Breaking up may not be an issue. However, loss of income, a lost card, a late payment causing the interest rate to go up, can cause problems for you even if your Hunny didn't mean it.
Suggest your Hunny open his or her own card. A secured card, one that is opened against a savings account, or a debit card containing a Visa or Master Card logo may be a better choice for your Hunny.
CELL PHONES
Putting your Hunny on your cell plan may sound like the natural thing to do. You talk to eachother all the time anyway right? However, just like the credit card issues mentioned earlier, a lost job, a lost phone or a late payment can wreck havoc with your credit report. But a cell phone can cause additional problems. Cell phones on the same plan are also on the same billing statement. Its way too tempting to peek a look at the received, dialed, missed calls and the call duration when the bill comes in, especially if you've had an argument. This may be more information than you are ready to have. If your Hunny is not as careful with the phone bill as you are, non-payment, late payments or slow payments can cause all cell phones on that plan to be disconnected. You could lose your primary form of communication, due to no fault of your own, because of a cost you cant control.
A better choice may be to have your Hunny open their own cell phone account at a reputable cell phone store, with a deposit, if credit is an issue. There are also prepaid cell phones available in almost every drug store and convenience store. If your Hunny is on social services, a free Safelink or Assurance phone may be available.
CARS
Buying a car for your Hunny or signing a car note with your Hunny, puts you in the position of paying for something you have no control over. Missing multiple car note payments can cause credit problems when you go to buy your next vehicle. After the third missed payment, your car can be repossessed, causing you to lose your transportation. Buying a large ticket item such as a car can put a strain on a relationship for other reasons. Assumptions about when and how the car should be used, who should replace the gas and when, and who else can ride in the car, can cause loud ruckus arguments.
Some alternatives: Your Hunny can look into buying a good used car outright without financing. Also, in many cities, there are car sharing programs such as ZipCar and HertzOnDemand, where you can join and use a car from two hours up to two days. If you do share your car, please sit down and discuss how the car will be used ahead of time.
BUYING A HOUSE/ SIGNING A LEASE
If you are not ready to get married, you probably aren't ready to buy a home or sign a lease together. Buying a home is more intimate than having sex. You could be with your Significant Other for ten years and never share your bank statements, credit report or your monthly expenditures... your REAL monthly expenditures. However, when you buy a home and qualify for a mortgage, you share all of this and more. Not married because you don't want the government involved in your relationship? Wait till the mortgage people at the bank get finished looking into you!
When you sign a mortgage or lease together, you are comingling your credit, your income and your lifestyles. If this doesn't scare you, but a trip to City Hall for your marriage license does, you may have to reassess your relationship. The cart cant pull the horse.
"I'LL PAY YOU BACK WITH MY TAX RETURN"
Child Support arrearage, back taxes, back rent, unexpected emergency expenses, etc., usually eat away at any anticipated return. This is especially the case if the taxpayer filed "0," has been taxed at the highest rate all year long, and has been receiving a short paycheck all year round. Chances are that any tax return dreams will wake up in a cold sweat. Consider any money you loaned under these circumstances to be a gift.
IF YOU LOVE ME...
If you and your Hunny are not ready to take that trip down the aisle, to City Hall or Vegas, you still have the ability to protect yourself if you decide to share assets:
1) Discuss your intentions - Money issues break up more relationships than infidelity. But if you want to share your money or credit, discussing payments, responsibilities and repayment schedules is very important.
2) Reduce your discussion to writing - A contract is, at its heart, an agreement. You can have an attorney write it up. Or the two of you can put a few sentences together that describe what your intentions are. It can be an email. It just has to clearly state what your intentions are in a document that you can go back and read, in case of a dispute.
3) Remember why you are together - Your relationship, taking care of eachother and your children, being respectful of eachothers' needs should color any agreement between the two of you. If your relationship is important, you will work through financial issues to stay together.
THE CASE FOR MARRIAGE
Marriage is a Sacrament for some. And a mystery to others. However, the one thing that marriage does for every married couple is provide them with legal protections they may not have had before the ceremony. When you marry, you become eachothers' legal "next of kin" and some of your financial assets are automatically shared. You are both legally responsible to, and for, eachother. It is easier to care for eachother because in the eyes of the law, you become family to eachother. Marriage also provides financial protection should things go wrong. How romantic!
Happy Valentine's Day
Let's Be Careful Out There!
That said, there are times when spending on your Hunny is not advisable. If you are living together, co parenting, dating, seeing eachother, or friends with benefits and you decide to share your money, you have no legal rights should things go wrong. Choose Wisely. If you intend to co-mingle your money wait until marriage, or at least until you put the agreement in writing. Or maybe, like First Lady Reagan told us years ago, "Just Say No.":
CREDIT CARDS
When you open a credit card for your Hunny, that card is still part of your account. You may both think this card belongs to your Hunny, but the credit card company has its account with you. When the payments are not made, the bad payment history will wind up on your credit report. Breaking up may not be an issue. However, loss of income, a lost card, a late payment causing the interest rate to go up, can cause problems for you even if your Hunny didn't mean it.
Suggest your Hunny open his or her own card. A secured card, one that is opened against a savings account, or a debit card containing a Visa or Master Card logo may be a better choice for your Hunny.
CELL PHONES
Putting your Hunny on your cell plan may sound like the natural thing to do. You talk to eachother all the time anyway right? However, just like the credit card issues mentioned earlier, a lost job, a lost phone or a late payment can wreck havoc with your credit report. But a cell phone can cause additional problems. Cell phones on the same plan are also on the same billing statement. Its way too tempting to peek a look at the received, dialed, missed calls and the call duration when the bill comes in, especially if you've had an argument. This may be more information than you are ready to have. If your Hunny is not as careful with the phone bill as you are, non-payment, late payments or slow payments can cause all cell phones on that plan to be disconnected. You could lose your primary form of communication, due to no fault of your own, because of a cost you cant control.
A better choice may be to have your Hunny open their own cell phone account at a reputable cell phone store, with a deposit, if credit is an issue. There are also prepaid cell phones available in almost every drug store and convenience store. If your Hunny is on social services, a free Safelink or Assurance phone may be available.
CARS
Buying a car for your Hunny or signing a car note with your Hunny, puts you in the position of paying for something you have no control over. Missing multiple car note payments can cause credit problems when you go to buy your next vehicle. After the third missed payment, your car can be repossessed, causing you to lose your transportation. Buying a large ticket item such as a car can put a strain on a relationship for other reasons. Assumptions about when and how the car should be used, who should replace the gas and when, and who else can ride in the car, can cause loud ruckus arguments.
Some alternatives: Your Hunny can look into buying a good used car outright without financing. Also, in many cities, there are car sharing programs such as ZipCar and HertzOnDemand, where you can join and use a car from two hours up to two days. If you do share your car, please sit down and discuss how the car will be used ahead of time.
BUYING A HOUSE/ SIGNING A LEASE
If you are not ready to get married, you probably aren't ready to buy a home or sign a lease together. Buying a home is more intimate than having sex. You could be with your Significant Other for ten years and never share your bank statements, credit report or your monthly expenditures... your REAL monthly expenditures. However, when you buy a home and qualify for a mortgage, you share all of this and more. Not married because you don't want the government involved in your relationship? Wait till the mortgage people at the bank get finished looking into you!
When you sign a mortgage or lease together, you are comingling your credit, your income and your lifestyles. If this doesn't scare you, but a trip to City Hall for your marriage license does, you may have to reassess your relationship. The cart cant pull the horse.
"I'LL PAY YOU BACK WITH MY TAX RETURN"
Child Support arrearage, back taxes, back rent, unexpected emergency expenses, etc., usually eat away at any anticipated return. This is especially the case if the taxpayer filed "0," has been taxed at the highest rate all year long, and has been receiving a short paycheck all year round. Chances are that any tax return dreams will wake up in a cold sweat. Consider any money you loaned under these circumstances to be a gift.
IF YOU LOVE ME...
If you and your Hunny are not ready to take that trip down the aisle, to City Hall or Vegas, you still have the ability to protect yourself if you decide to share assets:
1) Discuss your intentions - Money issues break up more relationships than infidelity. But if you want to share your money or credit, discussing payments, responsibilities and repayment schedules is very important.
2) Reduce your discussion to writing - A contract is, at its heart, an agreement. You can have an attorney write it up. Or the two of you can put a few sentences together that describe what your intentions are. It can be an email. It just has to clearly state what your intentions are in a document that you can go back and read, in case of a dispute.
3) Remember why you are together - Your relationship, taking care of eachother and your children, being respectful of eachothers' needs should color any agreement between the two of you. If your relationship is important, you will work through financial issues to stay together.
THE CASE FOR MARRIAGE
Marriage is a Sacrament for some. And a mystery to others. However, the one thing that marriage does for every married couple is provide them with legal protections they may not have had before the ceremony. When you marry, you become eachothers' legal "next of kin" and some of your financial assets are automatically shared. You are both legally responsible to, and for, eachother. It is easier to care for eachother because in the eyes of the law, you become family to eachother. Marriage also provides financial protection should things go wrong. How romantic!
Happy Valentine's Day
Let's Be Careful Out There!
Tuesday, January 29, 2013
WHY YOU SHOULDN'T BUY BOOTLEG
Its attractive, available and cheaper. They are available everywhere in most Urban areas. The Bootleg: Movies, Music and Comedy Concerts. They are mass produced illegally and sold at less than half the cost charged in the stores or on line. Why shouldn't you partake? Everyone likes a good bargain. Here are three reasons you shouldn't buy Bootleg.
YOU GET WHAT YOU PAY FOR
You never know the quality of the item when you're buying Bootleg. Yes, you got it at a deep discount. But is it really a discount if you have to replace it over and over again? Most of those folding table retailers don't have a return policy if the sound or video quality is poor, or non existent. With the advent of digital music and access to directors cut of certain movies, the quality of Bootleg has improved over the past twenty years. You probably wont find the tops of other theatre-goers heads in your Bootleg movie anymore. But quality can still be an issue. If you cant return, exchange or get a refund when things go wrong, your hard earned money is lost and you may have to repurchase. Go on and buy it once, online or at a Big Box store and save yourself the headache.
THEY'RE ALL GONNA LAUGH AT YOU
Yes. You are correct. Artists only get a minuscule amount of money spent on music and concert films. They make the bulk of their money when they are in concert live. However, they may never make it to perform a concert in your city if too many of you are buying Bootleg.
Record companies, Movie houses, Concert Halls all pay attention to sales of artists' work. legitimate sales. There is no way to calculate the number of Bootleg sales for an artist. So, there is no way to predict how many fans there are. As a result, Record companies, Movie houses and Concert Halls have no reason to schedule concerts, comedy tour dates or an actor's next movie in your city. You and all your buddies, your whole city, in fact, may love your favorite artist. But without hardcore sales in your city, the folks booking that artist's shows may feel that "the Market doesn't support it." Your favorite artist, comedian and/ or film may bypass your city completely. Stop travelling two hours on a Greyhound to see your favorite artist. Bring their numbers up. Buy their work from a legitimate retailer in your city.
GOOD ARTISTS SHOULD EAT TOO
Lets face it. There's a lot of junk out there. Bad rap music, degrading movies, mediocre comedians. Where's the good stuff? Maybe you know a good local or underground artist who has to work part time at a mind numbing job just to keep his or her dream alive. Put your money where your heart is. Support your favorite artist.
You spend hundreds of dollars on things that don't make you happy. Set aside a little for that concert ticket, that comedy show. Go see the movie on the first Friday its released. Take a few friends. The first weekend box office sales are the only ones counted by movie theaters and movie producers. Make sure your dollars are counted in that first weekend. If a film doesn't make money that first weekend, the next film by that actor or filmmaker may not make it to your city. The box office take (or lack there of) may indicate that there is a lack of sufficient fan base for that artist to return to your city.
This is especially important for new and independent artists. These artists may not have the large scale promotion machine behind them, so their fan base, and their income, has to come from the grassroots. Just getting booked at a medium-sized arena is a major feat for a new or independent artist. Your support of such an artist is more direct and appreciated. Stop wasting money on a Bootleg of a singer, comedian, actor or filmmaker you kinda sorta like. Spend your hard earned cash on a legitimate, CD, DVD, MP3, concert ticket or movie ticket for an artist you love.
Let's Be Careful Out There.
YOU GET WHAT YOU PAY FOR
You never know the quality of the item when you're buying Bootleg. Yes, you got it at a deep discount. But is it really a discount if you have to replace it over and over again? Most of those folding table retailers don't have a return policy if the sound or video quality is poor, or non existent. With the advent of digital music and access to directors cut of certain movies, the quality of Bootleg has improved over the past twenty years. You probably wont find the tops of other theatre-goers heads in your Bootleg movie anymore. But quality can still be an issue. If you cant return, exchange or get a refund when things go wrong, your hard earned money is lost and you may have to repurchase. Go on and buy it once, online or at a Big Box store and save yourself the headache.
THEY'RE ALL GONNA LAUGH AT YOU
Yes. You are correct. Artists only get a minuscule amount of money spent on music and concert films. They make the bulk of their money when they are in concert live. However, they may never make it to perform a concert in your city if too many of you are buying Bootleg.
Record companies, Movie houses, Concert Halls all pay attention to sales of artists' work. legitimate sales. There is no way to calculate the number of Bootleg sales for an artist. So, there is no way to predict how many fans there are. As a result, Record companies, Movie houses and Concert Halls have no reason to schedule concerts, comedy tour dates or an actor's next movie in your city. You and all your buddies, your whole city, in fact, may love your favorite artist. But without hardcore sales in your city, the folks booking that artist's shows may feel that "the Market doesn't support it." Your favorite artist, comedian and/ or film may bypass your city completely. Stop travelling two hours on a Greyhound to see your favorite artist. Bring their numbers up. Buy their work from a legitimate retailer in your city.
GOOD ARTISTS SHOULD EAT TOO
Lets face it. There's a lot of junk out there. Bad rap music, degrading movies, mediocre comedians. Where's the good stuff? Maybe you know a good local or underground artist who has to work part time at a mind numbing job just to keep his or her dream alive. Put your money where your heart is. Support your favorite artist.
You spend hundreds of dollars on things that don't make you happy. Set aside a little for that concert ticket, that comedy show. Go see the movie on the first Friday its released. Take a few friends. The first weekend box office sales are the only ones counted by movie theaters and movie producers. Make sure your dollars are counted in that first weekend. If a film doesn't make money that first weekend, the next film by that actor or filmmaker may not make it to your city. The box office take (or lack there of) may indicate that there is a lack of sufficient fan base for that artist to return to your city.
This is especially important for new and independent artists. These artists may not have the large scale promotion machine behind them, so their fan base, and their income, has to come from the grassroots. Just getting booked at a medium-sized arena is a major feat for a new or independent artist. Your support of such an artist is more direct and appreciated. Stop wasting money on a Bootleg of a singer, comedian, actor or filmmaker you kinda sorta like. Spend your hard earned cash on a legitimate, CD, DVD, MP3, concert ticket or movie ticket for an artist you love.
Let's Be Careful Out There.
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