It is difficult enough to remain competitive in today’s job market, but an applicant with a bankruptcy in their past is often seen as fiscally irresponsible and may be passed up for a position. An ever increasing number of employers are pulling credit reports on all of their prospective new hires, so individuals need to be very careful when managing financial situations that could affect their future.

Few consumers realize that they may not even qualify to file bankruptcy due to the outcome of a means test that determines the ability or inability to pay a portion of debts. A payment plan will be required meaning that the debt will still exist, but the irreparable damage will also still exist on the consumer’s credit report. A bankruptcy filing is going to remain in an individual’s credit file for up to ten years, and that is an incredibly long time to suffer from a bad financial rating.

Some individuals try and justify the ten years that a Chapter 7 bankruptcy will be present on their credit report, but it is important to understand that a filing will follow a person for life. Any applications for loans or employment that ask financial questions typically ask if the applicant has ever filed bankruptcy. While it may be tempting to simply state no and assume that the credit report will not prove otherwise, there are certainly ways for employers or lenders to discover the truth. Nobody wants to be charged with fraudulently filling out a legal document or form.

Nobody wants to live paycheck to paycheck and suffer from a huge amount of debt, but the stress and anxiety that can arise during a bankruptcy is often considered to be far tougher to deal with. While it may be true that an individual desperately needs financial assistance, the simple fact of the matter is that there are plenty of bankruptcy alternatives that must be considered first. If consumers really understood the total and lasting impact of bankruptcies, there would certainly be far fewer filings and less individuals that harm their financial future needlessly.

Normally I would be completely against this type of service, I have even written a previous blog about all the cons of a payday loan service; however with this blog post I have decided to take a different approach. I’m still not going to glorify or praise these types of businesses, but I want to bring up a few often overlooked points about the services.

First, a payday loan service is a legitimate business service. The owner is trying to run a successful business and make as much money as possible. My current employer is a reseller of technology to government agencies. They trust us to make good decisions about the technology we buy. In turn they pay incredible markups on computer equipment. They could buy the same equipment themselves; however they choose to pay 200% or more for the equipment to not deal with it. Should these type of businesses be frowned on as well?

Second, no one is forcing payday loan and personal loan clients to use the services. They have the option to walk into the stores or find the businesses online. If anyone wants to use these services it’s of their own free will.

Finally, payday loan services have to charge incredible high interest rates mainly because the clients that use the services have poor credit. The inflated rates are to cover the chance that some of the clients won’t actually pay back the loan.

Lending money is always a risk business for the lender as well as the borrower. I think these types of services should only be used in extreme cases of emergency. You you should research the lenders before using their services, especially if you are using an online lender.

A flat rate tax has been mentioned and discussed several times throughout our nations history. There are many proponents and opponents to the flat tax system, both sides having very valid and logical arguments. Would a flat tax system benefit our Nation and is the flat tax system fair to everyone?

Basically a flat tax would ensure that everyone pays the same percentage of taxes on their income. Lets say the rate is 25% someone who makes $20,000 would pay $5,000 in taxes and someone who made $200,000 would pay $50,000. Most flat tax systems allow no or very few exemptions making tax time and tax returns very simple.

I think a perfect system would allow a flat percentage charged to everyone, with very few deductions. These deductions would include children, mortgage interest and charitable contributions (which should be very documented).

Even though I’m not upper class, financially speaking, I don’t think it’s fair to place more of the tax burden on the upper class. Why should the wealthy be penalized for being successful in life. I would hope this new tax system would encourage the wealthy to donate more money to charity and help those who are less fortunate, but I don’t think they should be penalized.

Currently the US Revenue Code is over 9 million words long and contains many loopholes, deductions, and exemptions.  A flat tax system would help eliminate millions of dollars that slide through the cracks every year. It would save the IRS millions of dollars and thousands of man hours.

No matter what tax system we use there will be pros and cons. There will also be thousands of supporters and just as many protesters. I personally don’t know if we “need” a tax system overhaul, but I think things can be done more efficiently

The first attempt to help stimulate the economy was in the housing department. The government would allow an $8,000 tax credit to first time home buyers. Well, I guess since I’ve already purchase 3 I’m left out on this government freebie. I’m not sure why this bonus should only include first time home buyers. I’m sure others who were planning on buying a home this year are also discouraged, considering their neighbor will get an $8,000 handout because they waited until our economy was taking a beating to purchase their first home.

So a few weeks ago the government decided to implement another attempt to help stimulate the economy even more. This handout would attempt to “bail out” the struggling American auto industry. The government would issue another credit of $3,500 or $4,500 toward the purchase of a new car. Wait, It’s not for everyone. The car you are trading in has to be a gas guzzling clunker. Once again I’m penalized for already owning a six year old car that gets good gas mileage.

I’m not asking for a handout, I feel very blessed in life. I, however feel like most of the things the government is doing to stimulate the economy is leaving a lot of middle class citizens out. There isn’t really any incentive for us to help stimulate the economy when the packages are not targeted toward us.

First, I understand everyone has a different financial situation and I don’t know the circumstances of everyone’s debt. However, for the most part debt racked up on credit cards is pointless and there is little or no excuse for massive amounts of credit card debt. It’s not Visa, MasterCard, Discover, or American Express that made you spend $500 for a new summer wardrobe you can’t really afford. Sure they may charge 20.99% interest on that money, but they didn’t make the initial decision to overspend.

We as adults need to have some responsibility for  our own actions. Stop blaming the finance companies for being greedy and start taking responsibility for our own out of control spending. I really hat to take up for credit card companies, but quit looking for handouts and start earning a living!

Millions of Americans have recently lost their jobs due to the recent global recession. Families are finding it hard to make ends meet and pay their bills. For those of us luck enough to keep our jobs, many are being forced to take unpaid leaves from work in order to keep their jobs. Those who have lost their jobs are taking valuable data and even equipment from their former employers.

I realize it may seem tempting to steal on th way out the door, but is this the right thing to do? They may also think that after many years of service the company owes it to them, but haven’t they paid them the whole time?

Companies and businesses are not always greedy entities as they are often portrayed. They, like individuals sometimes have to make difficult decisions to ensure their survival. If you believe it is wrong to steal from friends, family and co-workers then you should feel the same about your workplace.

In times of financial difficulties always remember it could be worse. There are hundreds of thousands of people in third world nations that don’t get one full meal per day. Most of us are blessed to have some type of shelter and food. So before you grab that laptop on your way to the unemployment office think twice and make the honest decision.

A negative amortization loan is a type of loan where the payment on the loan is less than the monthly interest charge. This causes the balance on the loan to actually increase each month instead of decrease. These types of loans are also referred to as a deferred interest or graduated payment mortgage. Most lenders will only allow the negative amortization period to last less than 5 years at which point the loan switches to a normal amortization schedule and the payment increases or the loan must be paid in full or refinanced.

Before you decide to take out a loan on a house do a major budget analysis. If you can’t afford to buy the house, don’t try to work out some creative way to purchase a house you really can’t afford!

We have two children ages 3 and 3 months so we are looking at 12 years of public education for each of our children. So you see the decision I’m face with. At first thought it doesn’t seem to be worth the trouble and moving expenses to pack up our bags and move to another county, but after doing some quick math I realize I have to think deeper about the decision.

If we stay were we are at and start paying the tuition costs in a couple of years we will spend a total of about $43,000 in  education costs over the course of  their  public education.  Sounds like a lot of money to me, but wait it gets even bigger.

Let’s assume we decide to move and avoid the tuition costs. I’m going to assume we make a small profit on our current home (should be easy to do) and move into a similar priced home. We would finance about $210,000 over a 30 year fixed rate mortgage at 6.5%. The payment would be about $1,325 per month. Since we would be paying the $150 per month to tuition I’m going to apply that money to our mortgage payment as extra principal payments for five years, this is when my second child would start school so that amount would double to $300 per month. The $300 would continue until my 1st daughter graduates high school and then $150 extra would be applied until my 2nd daughter graduates. Doing this math I would pay off my house 8 and 1/2 years sooner and save just over $92,000. I would of course have to subtract closing costs and moving costs from the profit so about $8,000. After this I would still save over $84,000 from the move?

Sounds tempting to me but I would like to hear your opinions.

If you don’t want to break out the calculator when you finish paying for the TV you will have paid a total of $3508.83. I’m going to guess since the advertisement says “as low as $29.99 per week” that it’s not going to be a top name brand television.

I did some more research at TigerDirect.comand found a 42″ Akai, Vizio, and Sceptre brand Plasma TV’s for $899.97. So if you really want that 42″ HD TV then maybe you should save up your $30 per week for 30 weeks and own then thing and save yourself about $2,600!!!

Yesterday I read another blog about a guy who owes thousands of dollars to credit card companies, however he also has thousands of dollars in the bank. He could pay off the credit card balances, but instead he keeps the money in the bank to collect interest, Why? Because most of the credit card balances carry a 0% interest rate. Can you really come out ahead in this game?

If you are still reading then I’ve at least got you interested so let me explain the basic principals and see if we can actually beat the credit card companies at their own game. The basic principal is to play the balance transfer game with credit card companies while at the same time taking advantage of the rewards programs offered. Pay all your bills and put all your expenses on the credit cards and then pay them off each month without carrying over a balance to the next month.

Before you have a chance at winning at this game you have to have some prerequisites understand all the risk associated with this technique. First, you have to have excellent credit scores in order to qualify for the 0% interest rates. Second, you have to find multiple cards with good rewards or incentives and low or no balance transfer fees. Third, you have to be very disciplined about paying your bills on time and not overspending. Finally, you have to be very organized to keep up with the multiple credit card accounts and expiration dates of all the low interest rate offers.

If you meet the above criteria then here is how to win. The first step is to find a credit card with a great rewards program. Most reward programs offer 1% cash back or 1 point which is equivalant to about 1% when you trade the points for prizes, gift cards, etc. However, the best cards offer great introductry cash back rates such as 5% for the first 3 months or even a bonus for signing up for the cards. I have had multiple offers in the mail for $100 gift cards when you get accepted and use the card the first time. It’s free money just for filling out the application and making your first purchase. We personally put about $1,500 worth of expenses and bills on our credit card each month, which equates to about $15 per month. We use a discover card that sometimes gives 5% for certain items purchased so we usually average about $20 in rewards every month. They also offer a rewards program with certain resturants, retail store, etc. that give you a $25 gift card for $20 so it’s a great deal in my mind. We always pay off the balance each month so we basically get $25 per month from Discover for free!

Next, you need to find credit card companies that are willing to loan you money at 0% interest for at least one year. If you have excellent credit then these offers do exist. Some of them will even let you do a 0% balance transfer without a balance transfer fee. Many of them will even put the money into your checking account so that you can pay off the bill. The best part about this is that you don’t have to pay off the loan. Keep the money in the bank and collect the interest each month while only paying the minimum payment. when the 0% offer is about to expire pay off the remaining balance and you get to keep all the earned interest.

PLEASE understand that this is a dangerous game to play. You can really get yourself into financial trouble with this game. Miss a few payments and all your hard work will be worthless.