Simple Tips on SavingWritten by John Mussi
Simple tips on saving can very often make quite a big difference to your finances. Saving means giving up something now, so you will have more in future. A consistent, long-term saving program can help you achieve your goals. It also can help you build a financial safety net. Experts recommend that you save from three to six months worth of living expenses for emergencies. Savings grow beyond what you contribute because of compound interest. Over time, value of compound interest works to every saver's advantage. Keep in mind, however, that inflation reduces return on your money. It's not easy deferring or eliminating purchasing things you want today but like everything else in life, more you do it easier it becomes. Here are some useful saving tips to help you: Take a portion of savings from every paycheque before you pay any bills. Use your company's payroll deduction plan if available. Arrange for a fixed amount to be taken out so that you never see it. What you don't see, you don't spend. You also can direct automatic current account withdrawals into a savings account. When you get a raise, save all or most of it. Pay off your credit card balances and save money you're no longer spending on interest. Move credit card balances to a card with a lower interest rate and use savings to pay off balance.
| | Bankruptcy Interest Increases as Deadline ApproachesWritten by Charles Essmeier
Congress recently passed sweeping legislation that will significantly reform American bankruptcy law. Designed to eliminate “convenience bankruptcy” of compulsive gamblers and financially irresponsible, this legislation will make it more difficult for those seeking bankruptcy protection from courts to have their debts relieved.
Under current law, people who have debts that they cannot repay may file under Chapter 7 of Federal bankruptcy code, which allows nearly all debts to be wiped away. The new legislation, which takes effect in October, 2005, will require most people filing for bankruptcy to file under Chapter 13 instead. Chapter 13 requires that a repayment plan be established, usually over a period of five years. Chapter 7 filings will still be an option, but new legislation includes a “means test” that examines filer’s income to determine whether Chapter 7 or Chapter 13 is appropriate.
With new law set to take effect, number of people inquiring about Chapter 7 bankruptcy filing has increased dramatically. Attorneys who specialize in bankruptcy law have reported that their phones are ringing constantly, as people who are in financial trouble are wondering if they should file for bankruptcy
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