Ever have those burning questions about how to get out of debt, save money and bulk up your wallet? Well you’re not alone! Finance Counselor Dean Wegner has helped the Bruce family, stars of WE tv’s Downsized, and has quick answers to those common questions you are dying to ask.
I have too much debt, where do I start?
Start by creating a budget. You have to know how much money comes in each month and the average that goes out. Then you know how much can go towards debt reduction.
What should I cut first?
Start by cutting the least important expenses. Eating out can be extremely expensive. Pack lunches and make dinners.
Where should I put extra money I save?
Any extra money saved should be put into a money market account until you get three timex your monthly expenses, then into a mutual fund with ALL asset diversification.
Should I buy a house?
Buy a house, only if you plan on living there for more than 3 years.
Should I let my house go?
If you are over 50% in debt with your home, consult with an attorney and see if the most you can lose is your home and some fico points.
I need new ideas to find a job?
Spend 40 hours a week looking for a job. There are 5 applicants for 1 job. Go on 5 interviews.
How do I get motivated?
Stay away from negative people and write down goals of what you would like to happen in your life.
What is too much insurance?
Too much insurance is when you have policies outside of your income bracket. If you make less than $60,000 a year, you do not need whole life insurance. Term will work fine.
What is the bare insurance I should get?
Health, Home, Auto, then Term Life and Disability
What is an annuity?
Annuity is something they sell you that pays high commissions. It is an investment that over time pays you back monthly. You send them $10,000 now and in 5 years it pays you $200 a month for 12.5 years.
What’s the best life insurance for my family?
The best life insurance for families is Term life insurance. Buy this directly from the insurance companies that are AAA rated.
What’s a good credit score?
Anything above a 620 is considered a good credit score. Remember, there are 3 credit scores and lenders use the middle of the 3.
What is BK?
BK is also known as, Bankruptcy. It is said that it is a legal way for someone to start over with a clean slate. You have to pass a means test to qualify.
Can my HOA (Home Owners Association) sue me?
Yes, this has nothing to do with your mortgage, just because it went into foreclosure does not mean you are not liable for the back HOA dues. Continue to pay these or settle for cash.
How do I settle a tax lien?
Talk to the IRS and either settle for a cash lump sum amount or negotiate a repayment plan. Lenders will allow you to buy a house if you have a repayment plan and can show you have been paying on time.
Can I buy a house with a foreclosure?
On FHA you can buy after 3 years.
Will I get sued over a short sale?
This depends on if the debt was settled at the time of negotiation. But yes it’s possible, approach with caution and have a lawyer review your agreement.
How do I remove bad credit?
To remove bad credit, contrast the item with all 3 credit agencies. If reported more than once it will remove all duplicates.
How do I set financial goals?
Use a journal and write about what you want your life to look like. Then mark the goals as either long term or short term. Work on your short term goals daily and visit your long term goals every 90 days.
