Thousands of apartments may come to Santa Monica, other wealthy cities under little-known law
Developers in Santa Monica are planning 4,500 new apartments under a little-known state legal provision â and the city might not be able to stop them.
Developers in Santa Monica are planning 4,500 new apartments under a little-known state legal provision â and the city might not be able to stop them.
From unexpected bills to job loss, an emergency fund helps protect your financial well-being.
The post 4 reasons why you need an emergency fund appeared first on Discover Bank – Banking Topics Blog.
It’s funny. Fifteen years ago, daily personal finance was a chore for me. I didn’t understand how to go day to day making smart choices that were aligned with my values. I wasn’t even sure what my values were!
Today, things are much easier. Sure, there are challenges. Sometimes I make poor choices. But mostly, what I spend aligns with what I want out of life. (With the caveat, of course, that who I am and what I want shifts over time.)
I’m glad I’ve developed good habits. Right now, it’s keeping me from making a rash decision. For most of 2019, Kim and I have both been fighting the new-car itch. The old J.D. would have succumbed by now. This year’s model still does dumb things like spending hours building custom cars on the Mini website, but so far I’m not scratching that new-car itch.
Instead, I’ve come up with a plan, a path to a car purchase. And Kim has come up with a plan of her own too.
“Look at this,” I told Kim a couple of weeks ago. I carried my laptop over to show her my latest Mini design: a super-powered orange convertible that makes no sense for our lives.
Kim shook her head. “You’ve got to stop going to the Mini website,” she said. “And you especially have to stop using that build-your-own-car tool. That’s dangerous.” She’s right.
Earlier this week, as Tally and I strolled through the hills and picked blackberries, I did some serious thinking about if/when I should get a new car. I think I’ve gained some clarity.
Sure, if I cashed out some of my investments, I could justify making this purchase today. But, as I learned last year, this sort of action carries a huge tax consequence. If I sold investments to buy the car, I’d effectively be paying a 15% premium to make the purchase. I’m not willing to do this.
Plus, it’s hard for me to rationalize paying so much for a new car. It’s crazy how expensive vehicles are these days. (Do I sound like an old man yet?)
Speaking of being an old man: The one thing that even allows me to consider a new new car is that I’m getting older. I’m fifty. It’s highly probable that if I purchased a new vehicle, it’d be the last new-vehicle purchase of my life. (I tend to keep my cars a long time. I can see that at 67 or 70, I’d buy another used car because a new Mini would last me until then.)
While the dog sniffed the roadside for rabbits, I formulated an actual plan for buying a new car. I decided that there are three conditions that would lead me to make this purchase. From least likely to most likely, those conditions are:
If any one of these three comes to fruition, I’ll do pull the trigger. I’ll buy a new car. (Unless, of course, I manage to shake this new-car itch for good. But that’s unlikely.) In the meantime, I’ll make do with the two vehicles I already own: my 2004 Mini Cooper and my 1993 Toyota truck. I like them both and they run well. They’re good enough, you know?
If youâre thinking about refinancing your student loans, here are some strategies to determine if itâs the right move – and to make sure you get the best rates.
The post 5 Steps to Refinancing Student Loans appeared first on MintLife Blog.
Generally speaking, people file for bankruptcy during extreme financial hardships: the inability to repay large debts, have outstanding mortgage payments or they are facing foreclosure. Bankruptcy can offer some people a clean financial slate, but should only be considered as a last resort in resolving loan debt. Here is everything you need to know before filing bankruptcy. What Does Bankruptcy Mean? Bankruptcy is a federal court proceeding where people liquidate their assets to pay off debts over time or sign up for a repayment plan. In some instances, those who file for bankruptcy may be released entirely from the liability of their debts. Itâs essentially a second chance for people who are experiencing financial collapse. What Are The Different Types of Bankruptcy? There are 6 different types of bankruptcy, however, the most common types are Chapter 7 and Chapter 13, named after the federal court bankruptcy code. Chapter 7 bankruptcy is sometimes referred to as liquidation bankruptcy because it usually requires you to cash in on some of your assets so you can pay off at least a portion of the debt you owe. Some assets are protected by state laws from liquidation, such as retirement accounts, portions of your home equity, and your car. Plus, creditors cannot target your wages once youâve filed, so youâre protecting your future wages as well. Sometimes called straight bankruptcy, this is the most common type filed by individuals. Chapter 13 bankruptcy is also known as wage earnerâs bankruptcy. Rather than selling your property or assets, your debt is reconfigured so it can be paid off partially (or fully) over a 3-5 year period. While some debt may be discharged, certain types do not qualify: child support, alimony, student loans and certain tax obligations. If you cannot make the minimum payments on this type of arrangement, then creditors can start targeting your assets. Otherwise, this court-approved bankruptcy allows you to keep your home and additional assets. Additional Options to Bankruptcy Before declaring bankruptcy, itâs important to consider all available options. One option is to negotiate with your creditors directly. Many lenders have programs to help borrowers make payments or reconsider their current loan agreements. Some creditors reduce the overall amount or agree to lower payments over a longer period; they donât always want to risk not receiving any form of payment, which can happen during bankruptcy. Another option is loan forbearance, which is when payments are put on hold for a set period. Sometimes, there are loan modifications that allow you to change the terms of your loan, such as getting a different interest rate. Whatever your scenario is, make sure you exhaust all of your options before declaring bankruptcy. What Happens If I Declare Bankruptcy? When you declare bankruptcy, you are granted an automatic stay, which puts a block on your debt that creditors would normally collect. This prevents creditors from garnishing your wages or going after your other assets, which gives you time as the borrower to work out additional financial arrangements with both the courts and the creditor. How bankruptcies work Note that not everyone can declare bankruptcy. To avoid your case being dismissed, itâs important to follow all legal steps and requirements when you file. To begin, a credit counseling session is required to determine if you qualify for a bankruptcy petition certification. Next, you will need to submit a bankruptcy petition and financial documentation that provides your income, assets and debt. To qualify for Chapter 7 bankruptcy, you will need to submit a means test form that determines whether your income is low enough. If itâs not, then Chapter 13 is usually the next best option. You can get these forms from the bankruptcy court. Once youâve filed, the trustee assigned to your case will arrange a meeting with applicable creditors who will ask you questions about your financial situation. Your case will go through a bankruptcy judge who will decide whether or not you are eligible. Most people donât have to appear before a judge unless their case is uniquely complicated. One of the final steps you must complete before your debt is discharged is to take a debtor education course and earn a certificate. In terms of bankruptcy costs, there are attorneys fees and court costs you will owe, though some can be waived if you canât afford to pay. What happens to my credit score? One of the biggest drawbacks of bankruptcy is the hit your credit score will take. If you have decent credit, your credit score will take quite a dip after bankruptcyâeven from a 700 score to a 200 score. If you have a lower score to begin with, there may only be a 150-200 point drop. The credit effects vary from case to case, so the impact isnât predictable until you file. Some employers look at credit and financial history, so bankruptcy can also sometimes affect your future employment. Until the bankruptcy is removed from your records, it will affect your credit score and your credit history for up to 10 years with a Chapter 7 bankruptcy or up to 7 years with Chapter 13. Other consequences have to do with your assets, especially if youâve filed a Chapter 7 bankruptcy. Donât hide any assets when you file; not only is it fraudulent, but it can get your entire case thrown out. Depending on the type of bankruptcy you file for, youâll need to be prepared to give up certain luxury assets that can be used to pay off debt, as well as other non-exempt assets or property. What happens to my loans after bankruptcy? After completing the legal steps of filing and if your case is approved by a court judge, your debts will be discharged (Chapter 7) or your repayment plan will be approved (Chapter 13). A discharge in bankruptcy means that the loan is forgiven and the creditor can no longer attempt to collect payments or assets. A repayment plan means you’re still responsible for your loan, but itâs been modified to be more manageable according to your finances. Getting new loans can be tricky after bankruptcy, but there are some loans that donât require high credit scores to qualify. FHA loans, for example, work with lower credit scores, so a history of bankruptcy or foreclosure is not necessarily a barrier to qualifying for an FHA loan. The Bottom Line Certain circumstances, such as unforeseen medical bills, can make it difficult to keep up with mounting debt. If youâve found yourself facing the realities of bankruptcy, remember: bankruptcy isnât going to define your financial future forever. You donât want to file for bankruptcy lightly, but bankruptcy certainly isnât an end-all-be-all. A history of bankruptcy doesnât disqualify you from all future loans, nor does it stay on your financial record forever. You can rebuild your credit over time and still create the financial stability you want. This article provides general information and does not contain legal advice. PennyMac Loan Services, LLC is not a law firm. For legal advice, please consult a lawyer.
Mortgage Refinance Rates for Jan. 24, 2023: 10-Year Rate Plummets CNET