She says she wishes she had never signed a contract with her gym. She signed, and then was laid off, then fell and broke her finger, causing her to have surgery on her hand. They would not let her out of her contract.. well they reworked it to lower her payments, but didn’t tell her that they extended her contract an extra year to do so. She hasn’t been to the gym in a year and a half and still owes them over $2,000.
You’ve got to be careful signing a contract. Why? Because you can’t predict the future. You sign a contract, but the contract doesn’t have a “if my circumstances change” clause in it. No matter what your circumstances are (other than death or judgment), you are still obligated to fulfill your part of the contract, and the company is under no obligation to let you out of it.
Obviously my friend couldn’t use the gym; she couldn’t use her hand. She also was laid off, and couldn’t afford it anymore either. It makes sense to us that she shouldn’t have to pay for something she can’t use or afford… except she signed a contract agreeing to do so. We have to remember that even though we sign a contract with a “nice” employee, a contract is a contract, and it is a legal agreement. It is very unlikely that you will ever, not be held fully accountable to fulfill your obligation to that company.
Gym memberships are sold with 3yr agreements because they know most people wouldn’t keep their membership otherwise. They don’t accept settlements and most keep attorneys on hand because they end up suing so many of their customers. If a gym believed that their services were of value to their customers, they wouldn’t have contracts, because their customers would recognize the value of their service and keep going.
What is your “big mistake?”
Tuesday, September 29, 2009
Thursday, September 24, 2009
Paying too much for life insurance?
A friend of mine did the resonsible thing, and bought life insurance, when she had a child. She did what most of us do, and went to a trusted friend, who then sold her overpriced insurance.
I was able to look at her coverage, and show her how she was paying too much for her life insurance. I was able to write her a policy for the same amount of coverage (plus a child rider) for half the price of what she was currently paying, and she didn't even have to take a medical exam this time. I then showed her how to use the extra money she had each month to pay off some of her debt.
So instead of just having life insurance, she now has life insurance for her, coverage for her little girl, and money left over!
I was able to look at her coverage, and show her how she was paying too much for her life insurance. I was able to write her a policy for the same amount of coverage (plus a child rider) for half the price of what she was currently paying, and she didn't even have to take a medical exam this time. I then showed her how to use the extra money she had each month to pay off some of her debt.
So instead of just having life insurance, she now has life insurance for her, coverage for her little girl, and money left over!
Tuesday, September 22, 2009
Qualifying = Affordable?
If you qualify for a loan, does that mean you can afford it?
Since I write mortgages, I put myself to the test. Based on our current debts & income, the industry says we can afford a payment of roughly 3x what our current payment is. 3 times! Even in this recession, that is what the mortgage industry says we can afford. If we took this payment obligation, we could probably squeeze it out each month, but would have no money to save, no money to give, and no margin in our lives. We would be one small emergency away from financial disaster.
If I have no wiggle room in my budget, I have to say, that would add unneeded stress to my life. The added stress would wear me down as a mother, wife, and friend. Maybe that's why we feel so much pressure in our lives. We want to have the latest and the greatest, which causes us to live at the edge of our ability to pay and then we wonder why we have no victory in our finances. We borrow for houses, cars, toys, vacations, and everything else, and then wonder why we live in bondage. It's because we are in bondage - we are slaves to our things, enslaved by our payments, slaves to the lenders.
Maybe this is how we get into the messes we get into. We are led to believe that we can afford things, by lenders agreeing to lend us the money. We buy things because a financial institution (that we trust) agrees to lend us the money, therefore telling us that we can afford them.
Don't we also buy to gain approval of our spouse, friends, children, and even strangers. Why do we spend money that we don't have on things we can't afford, to impress people, some of whom we don’t even know or like? Why do we think having things makes us better or more likeable? Isn’t that really why I want most of this stuff… so you will think I’m “doing good,” and then if I have your approval, I can be proud of myself?
Just because you will be lent the money, does NOT mean you can afford it. Let's use wisdom when making decisions. In light of my past experiences, my current situation, and my future hopes and dreams, is this a wise decision for me? (and you can thank Andy Stanley (I think) for that last line)
Since I write mortgages, I put myself to the test. Based on our current debts & income, the industry says we can afford a payment of roughly 3x what our current payment is. 3 times! Even in this recession, that is what the mortgage industry says we can afford. If we took this payment obligation, we could probably squeeze it out each month, but would have no money to save, no money to give, and no margin in our lives. We would be one small emergency away from financial disaster.
If I have no wiggle room in my budget, I have to say, that would add unneeded stress to my life. The added stress would wear me down as a mother, wife, and friend. Maybe that's why we feel so much pressure in our lives. We want to have the latest and the greatest, which causes us to live at the edge of our ability to pay and then we wonder why we have no victory in our finances. We borrow for houses, cars, toys, vacations, and everything else, and then wonder why we live in bondage. It's because we are in bondage - we are slaves to our things, enslaved by our payments, slaves to the lenders.
Maybe this is how we get into the messes we get into. We are led to believe that we can afford things, by lenders agreeing to lend us the money. We buy things because a financial institution (that we trust) agrees to lend us the money, therefore telling us that we can afford them.
Don't we also buy to gain approval of our spouse, friends, children, and even strangers. Why do we spend money that we don't have on things we can't afford, to impress people, some of whom we don’t even know or like? Why do we think having things makes us better or more likeable? Isn’t that really why I want most of this stuff… so you will think I’m “doing good,” and then if I have your approval, I can be proud of myself?
Just because you will be lent the money, does NOT mean you can afford it. Let's use wisdom when making decisions. In light of my past experiences, my current situation, and my future hopes and dreams, is this a wise decision for me? (and you can thank Andy Stanley (I think) for that last line)
Thursday, September 17, 2009
Being Sued By The Health Club
One of our debt busters in Dickson, TN helped a client who was being sued by a local fitness center for a gym membership she could no longer afford.
The debt buster sat down with the client and showed her how to contact the attorney and attempt to negotiate before gong to court. The attoryney refused to accept payments so they went to court.
Once they appeared in court, the judge allowed them to go outside and negotiate payment arrangements. The client offered $50 a month on a $1,000 debt and the attorney refused.
We explained to our client how to file a motion for installment payments (a slow pay motion) and a week later the court looked at our client's budget and forced the fitness center to accept the $50 a month payment.
Remember: No matter what the plantiff attorney tells you, the court is there to protect you from creditors. If you or someone you know has a question or needs help, contact me for a free consultation.
The debt buster sat down with the client and showed her how to contact the attorney and attempt to negotiate before gong to court. The attoryney refused to accept payments so they went to court.
Once they appeared in court, the judge allowed them to go outside and negotiate payment arrangements. The client offered $50 a month on a $1,000 debt and the attorney refused.
We explained to our client how to file a motion for installment payments (a slow pay motion) and a week later the court looked at our client's budget and forced the fitness center to accept the $50 a month payment.
Remember: No matter what the plantiff attorney tells you, the court is there to protect you from creditors. If you or someone you know has a question or needs help, contact me for a free consultation.
Thursday, September 10, 2009
health insurance affordability
I commented on my cousin's facebook this morning and here's what that thread and it's comments has lead me to say:
I have a lot of thoughts (and questions) about healthcare, and I don't have the answers either. I know there are exceptions to what i have to say, so when you read this, know that I am speaking generally, and not including every person or every situation...
When I hear people say that they can't afford healthcare, I think they choose not to afford it, by affording other luxuries in their lives. Health insurance is not a right, it is a privilege (as is the luxury in our lives). When we add up our "bill" for luxury in our lives, what does it equal? Car payments, mani/pedi, shopping, entertainment, eating out - would that be $300-$1,000 a month for most people? I think that would be a fair guess. that said... could you find coverage for that much? More than likely.
We pay over $350 monthly, through an employer, and don't have great coverage. Health insurance isn't cheap through an employer either. It's cheaper than buying it independently, but let's not be confused and think that it's not a significant cost. - It's just a little different because we never "see" the money.
I also think the medical providers should do better at helping people and giving discounts and that insurance companies drive up the price of medical care by the requirements they create. I also don't think there is one answer to any of this. I do, however, think a lot of it is a personal responsibility. I think that we (self included) get used to a lifestyle and then feel entitled to that lifestyle, even when our situation changes. (ex: income changes, job changes, location changes, having kids, paying tuition, living on your own again or the first time)
That thought leads me to believe that the healthcare "crisis" is not such a crisis. I know that there are those out there who are denied coverage because of their health. I know people have lost their job, and therefore their health insurance. I wish that this wasn't reality for some, and I don't have the solution to those problems either. However, I am certain that a lot more people can afford things they claim they can't - I just look at their lifestyle.
I'd love to hear your thoughts, and since I know that healthcare is a heated topic, please be respectful in your comments. This was not posted as a platform for attack, but as something to think about ...
I have a lot of thoughts (and questions) about healthcare, and I don't have the answers either. I know there are exceptions to what i have to say, so when you read this, know that I am speaking generally, and not including every person or every situation...
When I hear people say that they can't afford healthcare, I think they choose not to afford it, by affording other luxuries in their lives. Health insurance is not a right, it is a privilege (as is the luxury in our lives). When we add up our "bill" for luxury in our lives, what does it equal? Car payments, mani/pedi, shopping, entertainment, eating out - would that be $300-$1,000 a month for most people? I think that would be a fair guess. that said... could you find coverage for that much? More than likely.
We pay over $350 monthly, through an employer, and don't have great coverage. Health insurance isn't cheap through an employer either. It's cheaper than buying it independently, but let's not be confused and think that it's not a significant cost. - It's just a little different because we never "see" the money.
I also think the medical providers should do better at helping people and giving discounts and that insurance companies drive up the price of medical care by the requirements they create. I also don't think there is one answer to any of this. I do, however, think a lot of it is a personal responsibility. I think that we (self included) get used to a lifestyle and then feel entitled to that lifestyle, even when our situation changes. (ex: income changes, job changes, location changes, having kids, paying tuition, living on your own again or the first time)
That thought leads me to believe that the healthcare "crisis" is not such a crisis. I know that there are those out there who are denied coverage because of their health. I know people have lost their job, and therefore their health insurance. I wish that this wasn't reality for some, and I don't have the solution to those problems either. However, I am certain that a lot more people can afford things they claim they can't - I just look at their lifestyle.
I'd love to hear your thoughts, and since I know that healthcare is a heated topic, please be respectful in your comments. This was not posted as a platform for attack, but as something to think about ...
Saturday, September 5, 2009
What I Believe
After talking with a few people, I realized that this blog doesn't tell you what I believe about finances and what my views about debt are. well, here you go... this is what I believe.
First of all, I believe that it is all God's and He lets us keep 90% of our income. If you are a Christian, you should tithe, this is a biblical command, it is not an option (Lev 27:30). Next, I believe that the borrower is slave to the lender, period. That too is biblical (Prov. 22:7). Even if you are not a Believer, you will learn that this principle is a fact. When you owe someone money, you ARE a slave to them. I believe that having money saved is the only way to break dependence on credit cards. I believe that the way consumers borrow money in our culture is generally irresponsible, and I believe the way companies treat the consumer is ridiculous and unfair.
I believe that you CAN get out of debt. I have learned some tools and techniques that can help you. I coach because people need encouragement and accountability. I (and dano's debtbusters) are on a crusade to teach Americans to get out of debt and change the way that corporations treat the consumer. I want to educate people on how these financial institutions and companies work and how they intentionally take advantage of us.
Some of the things we (dano's debtbusters) have helped people with are: bankruptcy, wage garnishments, harassing phone calls, debt negotiation, filing unemployment, repositioning assets, saving homes from foreclosure, and assisting consumers in court. Let me make sure it is understood - we don't charge you thousands of dollars, ruin your credit, and then negotiate your debt, we TEACH YOU how to do it, and coach you through it. You just don't learn anything if you let someone else do all the work for you.
My heart is in helping people, therefore, I will coach you out of debt. If you need some help, please contact me. If you are interested in joining our crusade to get the American consumers out of debt, you can join us. I will be happy to teach you to coach others, and compensate you for that. I can personally, only coach about 6 people a week, but with more coaches... the more help... the more hope and freedom we can bring.
First of all, I believe that it is all God's and He lets us keep 90% of our income. If you are a Christian, you should tithe, this is a biblical command, it is not an option (Lev 27:30). Next, I believe that the borrower is slave to the lender, period. That too is biblical (Prov. 22:7). Even if you are not a Believer, you will learn that this principle is a fact. When you owe someone money, you ARE a slave to them. I believe that having money saved is the only way to break dependence on credit cards. I believe that the way consumers borrow money in our culture is generally irresponsible, and I believe the way companies treat the consumer is ridiculous and unfair.
I believe that you CAN get out of debt. I have learned some tools and techniques that can help you. I coach because people need encouragement and accountability. I (and dano's debtbusters) are on a crusade to teach Americans to get out of debt and change the way that corporations treat the consumer. I want to educate people on how these financial institutions and companies work and how they intentionally take advantage of us.
Some of the things we (dano's debtbusters) have helped people with are: bankruptcy, wage garnishments, harassing phone calls, debt negotiation, filing unemployment, repositioning assets, saving homes from foreclosure, and assisting consumers in court. Let me make sure it is understood - we don't charge you thousands of dollars, ruin your credit, and then negotiate your debt, we TEACH YOU how to do it, and coach you through it. You just don't learn anything if you let someone else do all the work for you.
My heart is in helping people, therefore, I will coach you out of debt. If you need some help, please contact me. If you are interested in joining our crusade to get the American consumers out of debt, you can join us. I will be happy to teach you to coach others, and compensate you for that. I can personally, only coach about 6 people a week, but with more coaches... the more help... the more hope and freedom we can bring.
Tuesday, September 1, 2009
Cash for Clunkers
so, there was incentive to trade your car in... let me ask you, could you afford a new car before the incentive? but now with the extra $4,500 you can? really?
did you know that the $4,500 you just "earned" toward a new car will count toward your taxes as income? yep, that's right. the stimulus the government gave you, will be taxed... as income.
and let's think about this "stimulus." is it a good idea to stimulate the economy by enticing consumers to go into more debt? aren't we in a "crisis" because of the carelessness that we are acquiring debt in the first place? although i'm sure there are a FEW exceptions, i find it hard to believe that americans were just $4,500 away from being able to afford a new car.
sure, it's beneficial to those who used the stimulus, but who do you think pays for this stimulus? the auto industry? no, the government does. who pays the government? we do! it's called taxes. so everyone who didn't use it to buy a new car, paid for those who did use the stimulus. why do we continue to think the government is "giving" us "free" money?
let's make sure we understand what we are doing with these stimuluses before we blindly use them, thinking we are being given a gift. when it comes to the government, let's remember that nothing is free: freedom, money, stimulus, healthcare - we always pay, not always with dollars, but we always pay.
did you know that the $4,500 you just "earned" toward a new car will count toward your taxes as income? yep, that's right. the stimulus the government gave you, will be taxed... as income.
and let's think about this "stimulus." is it a good idea to stimulate the economy by enticing consumers to go into more debt? aren't we in a "crisis" because of the carelessness that we are acquiring debt in the first place? although i'm sure there are a FEW exceptions, i find it hard to believe that americans were just $4,500 away from being able to afford a new car.
sure, it's beneficial to those who used the stimulus, but who do you think pays for this stimulus? the auto industry? no, the government does. who pays the government? we do! it's called taxes. so everyone who didn't use it to buy a new car, paid for those who did use the stimulus. why do we continue to think the government is "giving" us "free" money?
let's make sure we understand what we are doing with these stimuluses before we blindly use them, thinking we are being given a gift. when it comes to the government, let's remember that nothing is free: freedom, money, stimulus, healthcare - we always pay, not always with dollars, but we always pay.
What is Freedom Financial?
Freedom Financial is my business. I started this business to help people get out of debt. I offer financial coaching, as well as mortgages and life insurance. I love money, becuause I have made it a tool and not a burden. I love helping people get control of their money, seeing them live in freedom as well. I do this part time, as I raise my kids, because the results of your financial freedom are important to me.
I chose do this because it matters to me that people don't live in the bondage that comes from debt. I believe that in our culture, the lines have been blurred between responsibility and entitlement when it comes to money and stuff. I have learned some tools to help get you out of your mess, a lot of them the hard way... by messing it up first. I have partnered with Dano's Debt Busters, and we are on a crusade to help Americans get out of debt.
I have started this blog to share my thoughts about the financial world. I hope this site offers you encouragement and gives you a sense of empowerment in your financial life. There is so much "financial" information out there, and most of it is bad, and a lot of it is even expensive.
Why aren't we taught how to do this "real life" stuff in school? Maybe because the same people who approve our curriculum also try to stimulate the economy by encouraging us to go into more debt, which is what got us into this mess in the first place. (sorry, that's an entire different post)
I would love to hear your thoughts and comments as the blog progresses!
You can also email me for coaching, mortgages, and life insurance at lsweet02@comcast.net.
I chose do this because it matters to me that people don't live in the bondage that comes from debt. I believe that in our culture, the lines have been blurred between responsibility and entitlement when it comes to money and stuff. I have learned some tools to help get you out of your mess, a lot of them the hard way... by messing it up first. I have partnered with Dano's Debt Busters, and we are on a crusade to help Americans get out of debt.
I have started this blog to share my thoughts about the financial world. I hope this site offers you encouragement and gives you a sense of empowerment in your financial life. There is so much "financial" information out there, and most of it is bad, and a lot of it is even expensive.
Why aren't we taught how to do this "real life" stuff in school? Maybe because the same people who approve our curriculum also try to stimulate the economy by encouraging us to go into more debt, which is what got us into this mess in the first place. (sorry, that's an entire different post)
I would love to hear your thoughts and comments as the blog progresses!
You can also email me for coaching, mortgages, and life insurance at lsweet02@comcast.net.
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