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Maxed Out: On the Verge of Bankruptcy, Again

SavvySugar — Mon, 24 Nov 2008 13:00:24 -0800

This episode of Maxed Out is about Karen, a single mom of a 9-year-old girl named Bailey, and she's in danger of having to declare bankruptcy for the second time. She says she'll feel like a loser if it happens again, and everything she cares about — her daughter, financial stability, and her home — is at risk. Karen has no savings for herself or for Bailey's future. Even though she's always short on rent and lives on cash advances, Karen can't help herself from her favorite four-letter word: sale. Find out if financial guru Allison Griffiths can stop Karen from spending her way in to a second bankruptcy when you

Maxed Out: Single Mom Faces Eviction

SavvySugar — Wed, 12 Nov 2008 09:30:30 -0800

This episode of Maxed Out made me feel for the in-debt participant more than any other. It's about a 27-year old single mom named Marybell who left her abusive ex-husband five years ago with her three children. Her ex doesn't provide any child support and Marybell used debt as a stepping stone to gain independence — the only trouble is that it's gotten out of control.

A collections company calls her at work every day, her electricity was turned off and she had to use rent money to pay the bill, they've been without gas for two months and cold weather is approaching, and the family is in danger of being evicted from their apartment. Find out more about Marybell's situation and what happens when financial guru Allison Griffiths steps in to help, just

Maxed Out: Couple Finances Down Payment With Credit Cards

SavvySugar — Fri, 07 Nov 2008 13:00:19 -0800

"I do something I want even if I know I don't have the money. I don't see why I shouldn't buy a sweater or go out with friends." That's 23-year old Crystal talking, and she and her 25-year old husband Jeremy are $25,000 in debt. This episode of Maxed Out is about this young married couple who is living on one income: Jeremy makes about $40,000 a year and Crystal stays at home with their one-year old son. They are carrying way too much debt for how much income is brought in, and their cash flow could never support their future plans for Crystal to continue staying at home. Find out more about their finances when you

Should the Deeply Indebted Get Credit Card Forgiveness?

SavvySugar — Mon, 03 Nov 2008 06:15:29 -0800

Consumers are increasingly defaulting on their credit card balances and banks are suffering because of the massive debt write offs due to the defaults. To remedy the situation, an alliance of financial industry interests and consumer advocates proposed a special program to the government. As legislative director for Consumer Federation Travis Plunkett says, "In this case we have a clear common interest." Most of the biggest credit card banks are on board with a pilot program that allows lenders to forgive up to 40 percent of a borrowers debt, with the maximum forgiveness going to consumers nearing bankruptcy. Existing rules that allow for the reduction of principal require the debt to be paid in a matter of months, while the pilot program will allow the remaining debt to be paid over several years. Do you think the pilot program is a good idea? Source

Should the Deeply Indebted Get Credit Card Forgiveness?

Yes, the partial forgiveness will help people and banks.

Maybe, I'm torn on this one.

No, this will only encourage people to default on their cards.

Something else. See my comments below.

Smart Cookies Make Money Issues More Manageable

SavvySugar — Mon, 03 Nov 2008 03:30:43 -0800

It may not feel natural to be transparent about your finances, but five Vancouver women have shown that being honest with others about your financial situation can make you feel more accountable for it. The Smart Cookies money club started as a group of women conversing about personal money issues and the lessons learned from their time together have been turned into a book, The Smart Cookies’ Guide to Making More Dough.

Andrea Baxter gathered four other women together to form the money club in 2006 after she'd accumulated $18,000 in debt beyond her mortgage, and in two and a half years the five members have helped get everyone on track and keep them there. As reported by The New York Times, the Smart Cookies' meeting agenda follows the same format every time: Good news from every member, a spending check-in, individual debt reports, brainstorming about how to make more money, a discussion topic that someone has researched, and goal setting.

Does a money club sound appealing to you, or is it too much sharing for your level of comfort?

Do Your Parents Know About Your Financial Situation?

SavvySugar — Tue, 28 Oct 2008 08:00:38 -0700

Debt can be a difficult thing to talk about with your family, and many young adults in debt are fearful their parents will be disappointed and consider them financial failures. Whether you run a tight ship when it comes to money and are smooth sailing, or you've found yourself in financial trouble, money isn't necessarily a topic that's comfortable to talk about with mom and dad. What do your parents know about your financial situation?
Source

Do Your Parents Know About Your Financial Situation?

My parents have a good idea about my financial state.

They have a general idea about my finances, but we don't really talk about it.

My parents don't know much about my finances.

Something else. I'll tell you in the comments.

Maxed Out: My Debt Is Killing Me

SavvySugar — Mon, 27 Oct 2008 12:30:37 -0700

This episode of Maxed Out is about Brooke, a 32-year old who has given up hope on her financial situation and the stress has begun to affect her physical and mental health. Sadly, Brooke says that she comes home from work and cries alone every night about her debt, and proclaims, “My debt is killing me. I am my debt.” Financial guru Allison Griffiths runs the numbers and finds out that in fact, it appears Brooke has become her debt. Find out more about Brooke’s situation when you

Graduates Flee US to Escape Student Loans

SavvySugar — Sat, 25 Oct 2008 11:00:57 -0700

Student loans are increasingly necessary for many students to pay for college, but these massive debts are causing some graduates to flee the country. It may seem dramatic, but leaving the country sometimes seems like the only option for grads that have defaulted on their student loans and can't find another way to escape the debt collectors.

CNN Money profiled a student loan fugitive named Chris who got a foreign address to escape his $160,000 student debt from getting a master's degree in music. He anticipated his monthly payments to be around $600, but they turned out to be a completely unmanageable $2,400. Chris says, "I am upset at myself. I could have gone to a cheaper school. But I'm most angry at the fact that for anyone who has debt that's not student loan debt, there's relief."

In some cases, student loans are discharged or partially discharged because of hardship. Chris and other graduates who feel helpless should explore these options before fleeing the country.

Source

Money Tip: What to Do When You're Done With Your Debt

SavvySugar — Tue, 21 Oct 2008 12:30:58 -0700

Forty-seven percent of you have credit card debt, and another 12 percent of you are almost finished paying off your balances — keep plugging away! It's common to lose momentum in becoming financially healthy once you are rid of debt; enjoy the feeling of having a huge weight lifted from your shoulders, but avoid the temptation to relax your rein on spending.

Hopefully you were able to put some money aside while paying off your credit cards, but when you're done with your debt, turn your main focus to saving and building an emergency fund. Replace the spot in your budget for debt repayment with deposits to your savings account. It will be satisfying to make those monthly transfers and watch your own account grow, rather than remitting your plus-interest payments to the credit card companies.

Source

Maxed Out: Best Friends in Debt Together

SavvySugar — Mon, 20 Oct 2008 12:30:02 -0700

We're familiar with money breaking up marriages, but this episode of Maxed Out featured another type of relationship threatened by debt: best friends. Christine and Meredydd bought a condo together so they could build equity and eventually get their own condos, but their debt is taking away from any equity and Christine says in six months they might not be friends if they keep fighting about money. These two 27-year-olds spend an insane amount of money on restaurants and take-out each month and both admit that it's their biggest spending weakness. Find out how much they're spending on food when you