Evan Vitale

Evan Vitale – Understanding Bankruptcy

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By Evan Vitale

Sometimes, depending on your situation and advice of an attorney, you may feel like there’s no way out other than filing for bankruptcy.

However, bankruptcy isn’t a “one size fits all” situation. There are some other factors that weigh in on your bankruptcy including your debts and assets.

There are three primary forms of personal bankruptcy for an individual: Chapter 7, Chapter 11 and Chapter 13. Here’s a brief explanation of each:

– Chapter 7 bankruptcy protection allows an individual to get rid of most of their debts and wipe the slate clean. However, this form of bankruptcy may include loss of property and, most likely, a lower credit score. In some cases, a Chapter 7 bankruptcy is also referred to a “liquidation” or “straight bankruptcy” in which a debtor’s assets are sold and creditors receive payment.

– Chapter 11 bankruptcy is primarily for businesses, but it could also affect you if you’re the owner and major shareholder in the company. Chapter 11 is intended primarily for the reorganization of businesses with heavy debt. Although it’s uncommon, some individuals may file for Chapter 11 as well.

– Chapter 13 bankruptcy is the most common form of bankruptcy protection for an individual. Here, rather than wiping the slate clean, the individual might be forced to pay off part of the debit. The positive side of this form of bankruptcy allows the individual to keep a home; land; a car and other types of personal property.

Before deciding on bankruptcy, it is best to discuss your personal financial situation include all debts and personal assets with your attorney. It could be, perhaps, that debts can be worked out individually and a payment plan established, which would help you avoid bankruptcy. However, in all bankruptcy matters, it is highly advised to meet with an attorney or law firm specializing in personal debt and bankruptcy.

Evan Vitale – Rebuilding Your Credit

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By Evan Vitale

Bad credit can happen to anyone. Loss of a job, medical bills and other circumstances can make it difficult to make ends meet.

Unfortunately, as we all know, bad credit follows us for the rest of our life. It will make it difficult to buy a home, a car or rent an apartment. Bad credit can also mean higher auto insurance premiums or higher interest rates and other problems.

Never fear. You can work to rebuild your credit score by following some simple steps along the way:

– Apply for a secured credit card. While it’s “secured” by a deposit equal to the card’s credit limit, it’s a good way to get started in rebuilding your credit as your payments here will be reflected on your personal credit report.

– Consider applying for another credit card. Don’t go crazy and apply for many; just one. You may find a financial institution will give you a credit card with a small limit ($300 for example) and a high interest rate and annual fee. Only use the card one or two times per month to make small purchases. These would be for things you would normal need to purchase such as groceries or gasoline. Make your payments on time and pay off the balance due each month. After a while, the card will increase your spending limit, but continue to follow the plan.

– Check your credit report and dispute any outstanding debts you are unsure of on your report. Try to get older negative credit information removed from your report. Anything you can get removed from your report will help boost your credit score.

The process may seem slow at times, but you will steady start to improve your credit score and get back on the road to good credit.

Evan Vitale – Rent or Buy? (Part II)

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By Evan Vitale

This is the second in a two-part series on renting or buying your own home.

Just like renting a home, buying your own house has some advantages and disadvantages as well.

Advantages of buying a house:

  • The biggest advantage is that your monthly payment builds equity (ownership). The longer you own your house, the more equity you build. Equity is like cash. You can borrow against it, refinance your home in order to earn a better interest rate. It’s also a return on your original purchase should you decide to sell your home someday.
  • Another big advantage are the tax deductions you can receive.
  • Should you ever decide to change the interior or exterior of your home, there’s no need to check in with the landlord. You’re the owner!
  • Owning your house offers pride. People love to say they own their house.

Disadvantage of buying a house:

  • It’s an investment. The housing market has seen trends go up and down. Where will the trend be when you decide to sell your house? Will you be getting a good return on your investment?
  • You may not like the neighborhood. If you’re single and the neighborhood is family-oriented, you may feel like you don’t fit in with couples and children. It’s an adjustment you’ll have to handle.
  • Maintenance and repair problems are your problems. You won’t be able to call the landlord when the furnace isn’t working or the roof starts leaking. Make sure you are able to handle unexpected homeowner expenses.

Which one is right for you? It all depends on your income, career plans, etc. Talk to your family. Ask your banker, talk to a realtor friend, do some research and collect information. Don’t rush into any long-term situations without feeling 100% secure with your decision.

Evan Vitale – Rent or Buy? (Part I)

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By Evan Vitale

This is the first in a two-part series on renting or buying your own home.

Buying and owning your own house has been the “American Dream” slogan for many generations. However, there are many disadvantages and advantages of owning your own home vs. renting a home, condo or apartment.

It all depends on your current and future financial situation, so let’s first take a look at the advantages and disadvantages of renting your own home.

Advantages of Renting

  • One of the biggest advantages to renting is lower upfront costs. Instead of a hefty down payment on a home (inspections, closing costs, etc.), renters may only have to pay a security deposit or perhaps the first and last month’s rent. If you are renting at an apartment complex, you might be able to find a renter’s special where the security deposit waived or the first month is free if you sign a long-term lease.
  • If your job or career changes, it’s much easier to pull up stakes and move if you are a renter as compared to being a homeowner.
  • If you have poor credit, renting gives you the opportunity to rebuild and improve your credit score, which makes it easier when it comes to purchasing a home at a later time.
  • By renting, you have extremely low maintenance costs as furnace repairs; a leaky roof and plumbing problems are taken care of by the landlord (check your lease for details).

Disadvantages of Renting

  • It may not be a huge deal to some, but renters usually aren’t allowed to paint walls or make any major changes to the house or unit without prior consent.
  • You must follow the rules in the lease and you must also make sure you can get along with your landlord. Just as the landlord can check your references, you should also consider checking the landlord’s references as well. A tenant-landlord relationship is a two-way street.
  • After the initial term of the lease (usually 12 months), the landlord could opt to increase your rent for the next term. Be prepared for any rent increases. Can you afford an increase or do you have to move again?
  • Your monthly rent is an expense, so you don’t build any equity in your property. When you own a house, part of your payment goes into building equity (value) that you can borrow against some day.

In our next blog, we’ll take a look at the advantages and disadvantages of buying your own house.

Evan Vitale – Tips on Purchasing a Pre-Owned Vehicle

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By Evan Vitale

When you are seeking out a pre-owned or second hand vehicle for the very first time in your life, you’ll need to determine if its “value” is what’s being advertised by the dealer or owner of if that will inevitably be the final purchase price once your deal closes.  You must do your due diligence on all of the brand information and details specific to that edition of the vehicle in order to negotiate your best price.

Understanding a Car’s Actual Worth

When you’re researching vehicle value, it is not likely to be easy to obtain an exact amount for that particular vehicle, however, you should have the ability to develop an approximate figure for the car’s value, which needs to be quite near to the actual worth of the used vehicle. If you wish to obtain a deal when  purchasing a second hand vehicle and do it economically, then you need to get  into a dealership showroom to gain understanding and knowledge concerning the  value and price of both new and used vehicles. Also, you need to know just how much you or other people ought to be having to pay for that vehicle based on market forces within your local market.

The best way to determine the marketplace cost of a vehicle is by looking at multiple sources:  auto auctions, price compare websites, branded vehicle showrooms, used car lots, consumer review websites, etc.  Also look at review sites for that dealer to be able to tell if they are an ethical dealership.

If you are speaking directly with a sales rep, you have to look at the market cost of the car plus assess their commission that will be added on in order to get the true competitive cost.  Sometimes a sales rep can be competitive and other times may not be depending on how well they have done on sales in that month at that dealership.

Have a Budget

Always have a budget figure in your mind when considering a vehicle purchase.   Don’t let a charming sales rep convince you buy something outside of your means or put you into too much debt which forces you into greater sacrifices for your normal daily expenses.  Sticking to a budget will help you to focus on your  negotiation for the car rather than the stress of paying for it later, losing cash in  the deal or having to listen to a push sales pitch for something you didn’t really  want and got stuck with anyway.

Low Cost Does not Always Equal Bad Quality

Of course you’ll be looking for deals when you go out car shopping for a pre-owned vehicle. But, purchasing an inexpensive vehicle does not mean you will finish up purchasing a bit of junk that’s useless. Also, it will not imply that your motor is going to be low quality either.

What you want to look at is that by purchasing “cheap” is that you are purchasing a vehicle at a lower value than what it is really valued and available on the current market – mostly likely a good price might be demand driven.

Maybe the dealership has a whole bunch of white cars in inventory and orange cars are the hot color of the season.  Maybe the dealership is attempting to sell you the orange car you really liked and you say no because there is a wait for delivery from Texas and will be outside of your budget.   The dealer knows he has an additional fleet of white cars coming in for trade-in from a leasing company and will have a hard time unloading them because he will have so many.   He offers to sell you a white car on the lot now at lower cost and lower commission this week because he knows it is more in your budget and you will close the deal quickly.

You opt for the white car because it is priced lower. Despite the fact that you are getting it at a steal, does not mean it is a “cheap” car, it’s just that you compromised on color to find a reliable vehicle without compromising the technology.

Seek Information

Prior to going to purchase a vehicle, complete your due diligence and homework – performing research and analysis of the selected vehicle and comparable cars in the same range.  This will help you to be in a position to haggle for your vehicle without dealer manipulation.

Before you go to the Dealership Make Choices

Be educated.  Be certain that you’ve got the best picture in your mind of what you would like to attain before visiting a dealership, an idea of your budget, and limit the time you anticipate you’ll spend there. Don’t finish up purchasing a thing that you don’t need due to an impulsive mindset.

Don’t Be Desperate

If you look desperate, you’ll more than likely get taken and the sales rep will use your haste to take more out of pocket from you.  Keep a cool head, prep by reading forums and websites, buy the best pre-owned vehicle that is best for you.

Going to multiple showrooms and dealers also lets you practice your negotiating skills before you go through final settlement meetings.  When purchasing pre-owned, make sure to check all mileage logs, accident records, indications of previous repairs.  When purchasing a pre-owned vehicle on a budget, you won’t be spending small amounts of money, so purchase quality over price without overpaying.

Evan Vitale – Cheap Spring Break Ideas

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By Evan Vitale

Even for those who have mapped out their Spring Break itinerary down to the second, you may find yourself still in need of some activity ideas – and cheap ones fast – such that your annual journey to sun and fun is after all, both memorable and original.  You’ve probably figured out how you’re getting there, and you are sure that “party” is item number one on your list, but what else can you add to your activity list once you have arrived?  You’re most likely also thinking how you will afford extra fun that falls within a ramen noodle budget. Don’t be concerned though, because you will find many different ways for both you and your buddies to take full advantage of your trip.

Thinking about Panama City Beach, FL as a spring break destination, then you’re likely to be around the beautiful beaches as a major piece of your trip. As probably the best spot you can possibly be if you come to this beach for your spring break, you can rest assured that the parties will always be bold and plentiful here, and there will be lots of sunbathing on the shore. For this reason lots of spring breakers think it’s a terrific, relaxing place to spend their holiday time. It’s not only great to be right at the beaches, it is also among the least expensive places to hang out on your trip.

You might be interested in in other options open for consideration beyond just sunbathing on a wide sandy beach. If this sounds like you, think about a cool down within the enjoyable waters by scuba diving or even snorkeling. Don’t want to get wild and wet? You could take out a kayak at reasonable rates. Should your travel group buddies wish to have a much greater adventure, get everyone to chip in to book a jet ski for the day.  It will be high action for your group and will keep expenses low.

Lots of travelers tend to pick Daytona Beach, FL for his or her “Cheap” spring break vacation place. If your group is planning to go here, you’re most likely thinking about what someone can spend time doing after the sun goes down even long after the Daytona 500 is over.  With wide drive-on beaches, the big party beaches are among the typical activities loved by Daytona goers.  If you aren’t into rowdy parties, there are some amazing concerts which are hosted here each spring. Some of the concerts are fairly inexpensive as they are targeted to the spring breakers, but they’re always unique and entertaining. Looking at more outdoorsy options, you could toss in some kayaking and snorkeling.

If South Padre Island, TX is your goal, then you’ve got a variety of choices that are unique to the other destinations. The best one is to be able to take a day excursion into Mexico that is only five miles away by boat. As long as you bring a passport to be able to come back easily, this is often a fantastic way to maximize an international vacation within a beach trip.

Overwhelmed? If Mexico is too much, and you wish to really just explore South Padre Island instead, just rent scooters to savor each day of pleasure. With scooter rentals, it’s not necessary to spend a whole bunch of money and you can still have plenty of fun.

And finally, maybe instead of “partying” you might want to think about a service project to a small town in need. There are many volunteer agencies that reach out to spring breakers for extra help in the spring season, either cleaning up after tornadoes, building new housing, or sprucing up an at-risk school in a poor area.  The rewards are great and the smiles will be wide when you work with grateful children.  The experience may also be helpful for writing a paper for a later research project.

Wherever you decide to partake in some awesome time off and a spring break journey – cheap travel ideas are plentiful.  Always try to match your skills to whatever is available in region. If you like action, then look for water sports options or deep sea fishing.  If you like quieter pursuits, or you are a foodie, look into the cultural every day options of the local area maybe away from the crazy beaches and tourists.  Try to get to know the local community, meet some new people and just relax and enjoy the sunshine.

Evan Vitale – Working Full-Time AND Part-Time

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By Evan Vitale

Even with a full-time job (and sometimes with benefits), individuals and couples still have a tough time paying off old debt, keeping up with current expenses and making ends meet.

At some point, you might want to consider finding a part-time job to bring in some extra income.

While finding a part-time retail or restaurant job might be easy to find, there are a few things you should keep in mind before you flood the market with applications and resumes. Here are a few pointers:

  • Check your current employee manual or have a discussion with your human resources manager to see if working a part-time job violates any company guidelines. In some cases, companies discourage “moonlighting” because it may interfere with your current position. It’s not that your current employer is worried about you working at the mall during the holiday rush, but sometimes when employees are working two jobs, they become tired and less productive.
  • Be well aware of the hours that you will be asked to work with your part-time job. Mostly likely, you’ll be working nights and weekends so there will be little time left for yourself, your family, special events, parties, etc.
  • If you are working evenings, make sure you have allowed enough travel time from your full-time job to your part-time job. Always allow for a little extra time in case your boss asks you to work a little extra time one evening or bad weather is causing a traffic headache on the highway.
  • In many cases, your part-time job will require you to stand a lot. Make sure you are wearing comfortable shoes, which might be different than your business dress shoes for the office.
  • Juggling two jobs, family and other responsibilities will require you to be organized. You’ll need to use your “free” time to run errands, pay bills, go grocery shopping, etc. Plan accordingly.
  • While it might be difficult, it’s important to eat well, take your vitamins and get a good night’s sleep. By working more hours, your body and immune system will be at risk.

Set your financial goals when considering a part-time job. Perhaps, you’ll work part-time until a certain bill is paid off or until you’ve saved enough money for a down payment on an automobile or you’ll looking for extra money for the holidays.

Evan Vitale – These Items Are Costing You Money

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By Evan Vitale

Everyone is making an effort to save a little energy and money these days. As a result, many manufacturers have tapped into the market and make products specifically to help accomplish these goals.

Believe-it-or-not, when your power strips and other devices are plugged in, they are using electricity (even if your device is turned off, cell phone is charged, etc.).

However, several companies make energy saving sockets that plug into the electrical outlets in your home. These sockets save money by turning off the electricity to the device that’s plugged into them when not in use.

Take a cell phone charger. This electronic device will still use electricity even when you are not charging a phone. If you are using an energy saving socket, you can set a time limit for the phone to charge. After the time has elapsed, the socket will shut off the electricity to the charger, saving you some cash.  A device such as this might also provide you with some peace of mind; you wouldn’t have to wonder if you left the coffee pot on or kept the curling iron plugged in.

A similar product is a power strip that conserves energy with a wireless remote. For example, you could plug in all of the devices used in your entertainment system — TV, DVD player, game console, etc — into the conserve power strip. When you’re done using these devices, instead of unplugging them, just use the remote control to turn off the power strip.

Another product worth considering is a clip, or a cord holder. Something like this sticks to the wall or your desk near an outlet. When you want to unplug a device, it holds the cord for you so you don’t have to go searching for it next time.

These are just some of the many products companies are producing that are making it easier for consumers to save money and energy use.

Evan Vitale – Saving Money on Energy Costs

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By Evan Vitale

Numerous storms across the U.S. this 2016 winter have us all meticulously examining our utility bills this month and possibly considering how we will be able to save on rising energy expenses.

From powering landscape lights on the property and kitchen appliances to running our TVs and computers — electricity is definitely a necessary part of our modern life. It should be no surprise that the average residential electricity bill is far more than $110 a month.

As temperatures rise, lots of families turn to air conditioners to keep cool.  In reality, air conditioners use about five percent of all the electrical energy developed in the U.S. — costing U.S. property owners billions a year. Typical HVAC maintenance — like cleaning or swapping out air filters — will guarantee that your air conditioner is running effectively and can enable lower electrical energy fees. To save on these maintenance bills, sign up for an annual plan with a reputable HVAC firm.  You will usually get two complimentary visits per year within your plan and it will help with spreading out your maintenance costs.

Make sure you are not using electricity if you aren’t there to take advantage from it. Contemplate installing a programmable thermostat and set it back once you are away at your office or on trip. You can save perhaps as much as 10 percent a year on heating and cooling by basically turning your thermostat back 7-10 degrees for eight hours per day from its typical setting.

You’ll be able to also preserve electricity expenses in the summer season by utilizing a ceiling fan to supplement your air conditioner. A ceiling fan will enable you to raise the thermostat setting by about four degrees without having any impact on your comfort. But remember to turn the fan off when you leave the area. Ceiling fans cool persons — not rooms — by creating a wind chill.

If you reside in a climate that tends to cool off at night, all-natural ventilation can help you preserve the coolness in your home without having raising your electricity bills. Take into account turning off your cooling system and opening your windows when sleeping to take advantage of cooler air, but make sure to shut the windows and blinds every morning as the temperature rises.

Air sealing is among the most cost-effective and quickest solutions to reduce power bills. Decreasing the amount of air that leaks in and out of the residence will help reduce your personal heating and cooling load — directly converting into smaller sized energy bills.

Installing a timer that turns off your electric water heater at evening or whenever you do not use it may also make it easier to reduce your electrical energy bills.

Most households spend about ten percent of its budget on lighting. One swift way to decrease these fees is gradually replace your light bulbs with more energy-efficient light bulbs. By replacing 15 inefficient bulbs in your home with more efficient bulbs, you could possibly save about $50 a year.

Whether you call them power vampires, background loads or standby power, little gadgets, appliances and electronics still use electrical energy when plugged in even if they may be turned off. Consider routinely unplugging appliances and electronics to save electrical energy. To be more efficient each day, plug small mini devices into a power strip and then turn off or unplug your power strip when you leave.

If you are looking to replace your old appliances, consider purchasing ones with an Energy STAR label. These appliances incorporate sophisticated technologies that use 5-35 % much less power and water than common models potentially saving nearly $750 across the appliance lifespan.

Quite a few homeowners point to renewable power as a fresh approach to save on electricity charges. Once you fix the basics around your home, look at ordering a home energy audit by checking with your local utility company. As utilities are generally publicly traded entities, they wish to save money for shareholders by holding down costs.  Some utilities offer discounts for home or commercial energy efficiency programs incorporating wind or solar. It’s also good for the planet to incorporate clean energy into your home energy-saving strategy.

Evan Vitale – Saving Money in 2016

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By Evan Vitale

Saving up more cash is the trend for 2016, but so many people often procrastinate in their efforts when it comes to cutting everyday costs. Listed below are ten tips to do today to keep more cash in your bank account and lessen debt risk.

  1. Make “Dining In” your norm and “Dining Out” as just a special treat. Our fast-paced workplaces have helped us justify a daily fast food lifestyle that is eating away at our savings goals.
  1. Brew your own grinds. Fancy coffee-to-go can run $4 or more a cup and unpredictable lines for a barista can cut into an efficient work day. Acquire an inexpensive grinder and a coffee maker that is easy to use or a cheerful color to brew a thermos-to-go of that magical brown elixir for only pennies a cup.
  1. Get rid of high-priced gym memberships. In the event you want the incentive that is part of the fitness center social scene, join a community-based running, biking, hiking club or a small yoga group. You’ll be able to casually socialize afterwards without a monthly credit card gouge.
  1. Rethink your entertainment options. Rather than going out for the movies, hit the library and check out movies for a week for free. You won’t have to listen to ringing cell phones in a theatre and you can enjoy your own homemade cookies and snacks. Limit your evening out “clubbing” to quarterly or once a month, and have close friends over on Friday nights instead for a cookout.  
  1. Rethink your driving style. Make an effort to drive only if you really need to in order to cut back on gas. Don’t let your car idle more than 1 minute. Look into a park and ride commuter lot for the trip to work and seriously evaluate the need for those last minute trips to the store and fast food.
  1. Always keep your automobile maintained. Appropriately inflated tires as well as a tuned-up engine can enhance your gas mileage favorably.
  1. Design your own dream “staycation.” If you take time to invest in exploring more localized travel options, you can save the travel money for some finer dining options closer to home or splurge on your favorite hobby supplies guilt free.  Not to mention, saving you hundreds of dollars on hotels and gas.
  1. Cut those utility expenses. Swap out furnace filters often. Add weather stripping around doors and windows. Repair leaky faucets and running toilets. Wear sweaters and reduce your thermostat in the winter and try to use your ceiling fan rather than the A/C in summer.
  1. Get fresh quotes for your insurance coverage expenses. Insurance rates, particularly auto insurance coverage prices, can differ a great deal from between competing firms.   By acquiring at least three various comparison quotes, you may lower your premiums by hundreds. An easy strategy to do this is on the internet at an insurance coverage comparison site as your first analysis and then talking to a locally based firm rather than a national brand name.  Driving less and taking benefit of discounts can reduced your prices at the same time. Also, consider raising the deductibles on both auto and property or tenants insurance to lower premiums. Just make sure that if you need to make a claim for a loss that you have enough cash on hand to pay the deductible.
  1. Be careful with “cash back” added on to debit card transactions.  The cash is usually quickly spent without a recollection of where it was spent.  It is also hard to remember to write the transaction down which can make it too easy for a checking account to become overdrawn.