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DEBTSMART®: Dental Surgery Funding
by Scott Bilker | Scott Bilker is the founder of DebtSmart.com and the author of Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. Receive The 5-Year Loan Amortization and Analysis Worksheet at no cost when you subscribe to the FREE DebtSmart Email Newsletter today! | Hi Scott, I need some very expensive dental surgery and work. Here's how the numbers look: In May, I will have two dental implants installed for a total cost of about $5,130 (that's
$5400 minus a 5% "discount" for paying in full at the time of surgery; alternatively you can pay for the surgery
over 90 days). This will be done by a specialist. I might get a few hundred dollars from insurance for this, but let's
assume not (implants are not covered, but bone grafting is). Next
January, I will have a bridge installed for about $3,500 (after insurance). It is possible that for tax reasons, I may have
this work done in this tax year. Though I can raise the cash, I
am concerned that if I were to become unemployed over the next few years, my cash reserves would be dangerously low. This
is also a scary percentage of my annual take-home pay (I'm on a moderate income). I was wondering if you could suggest a strategy/strategies to fund this $8,500 expenditure over a two-year period
interest free. I have an excellent credit score (800+). I know that during the process, I can shop for balance transfer offers;
however, I'd prefer to find a card with 0% on purchases for 24 months or do a series of transactions to perform the equivalent. My dental surgeon's office has an arrangement with "Care Credit" whereby (if
approved), I pay no interest for 6 months (not much help). After that, it goes to market (I'm not interested in paying
more than 4% interest). My primary dentist (the one doing the bridge) has no arrangements with Care Credit or similar cards. Bob R.
Bob, I feel your dental pain on this one...I have one implant and have had quite a few root canals
and crowns. I have to say that I LOVE the implant. I call it my "Bionic Tooth." At least I know that if all the
others go, I can hang the dentures on that one. :) You should have many
financing options because of your great credit score. I would take advantage of the "Care Credit" for 6 months.
Just be sure to pay it off with other financing before it ends. Use any
credit card to charge the remaining balances when due to get that 5% discount--my dentist gives me the same discount--that's
my only dental insurance! Immediately after that, start applying for new cards to transfer the balance to before the grace
period ends. You can find a list of my recommended cards at: http://www.debtsmart.com/cards/ Best,
Scott |
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 DEBTSMART®: Living above my means for years--what now?
by Scott Bilker | Scott Bilker is the founder of DebtSmart.com and the author of Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. Receive The 5-Year Loan Amortization and Analysis Worksheet at no cost when you subscribe to the FREE DebtSmart Email Newsletter today! | Scott, I've been living above my means for years, using credit cards to pay for the difference
from what I make and what I spend. I can't be in denial much longer as the cards are getting to their max. I currently
don't have any past-due payments since I still use the credit cards to offset what I can't pay. What do you recommend
I do? I was thinking of going to the credit card companies and
letting them know that I'm struggling, to see if they would stop charging me interest, but I'm afraid of losing a
good interest rate or the payments going up as they'll mark me as high risk. I just don't want to go through the harassment
I've heard other people have gone through with them calling or trying to go after what you own or your paycheck. I have 2 homes. I downsized with the second one, but that backfired when I couldn't get
rid of the first one. So it's renting right now for the majority of the payment, and I have no equity in any of them. Please let me know ASAP what you think, as I need to do something before it's too late.
: ( Kate Kate, Don't
worry about the past. Just go forward today, and make the best decisions for saving money. As Tony Robbins says, "The
past doesn't equal the future." I would NOT call the credit card
companies and tell them you're having problems. They don't care. In fact, they would probably stand ready to make
things worse. You want the credit card companies to think that you are in perfect shape--that you're the best possible
customer. That's the place to be when trying to negotiate with them. You
don't want to say, "I'm struggling and I have no money so I won't be able to pay. Please, I beg you, cut
me a break." Ha, ha. Like they'll have any mercy. They'll be thinking to themselves, "The first time she's
late, we'll raise her rate to 30%. And, since she's in trouble with her credit, she won't be able to get any new
loans to pay us off. We'll have her trapped!" If you call, tell
them this, "Gee, I'm tired of paying your high rates. Either you give me a break on these rates, or I'll take
my business elsewhere. You can see that I'm never late, and I always use my card. So, if you want to keep me, you must
treat me better. I have many options because I have good credit." See
what I'm sayin'? If they don't give you a break, then you
should transfer your balances to other, lower-rate cards. You can find my recommended list at http://www.debtsmart.com/cards/ Next, you should take a super-close look at your spending. Track it all. Make
a list and find out where all the money is going. Look for ways to cut. I know, I know, easier said than done. Just give that
a try for a while and see where it takes you. Also, liquidate any unneeded
or unused assets like jewelry, bonds, etc. and pay off the debt. Get that monkey off your back. Ultimately, it's best to handle everything yourself if possible. Stay in control, and take back your financial
life! You've already taken many first steps--keep it up, and you'll see the results you want. Best,
Scott |
These articles are for those who need information on debt management.
DEBTSMART®: 11 Easy Ways to Cut Your Spending Without Feeling It
by Scott Bilker | Scott Bilker is the founder of DebtSmart.com and the author of Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. Receive The 5-Year Loan Amortization and Analysis Worksheet at no cost when you subscribe to the FREE DebtSmart Email Newsletter today! | It's clear from the DebtSmart Survey Results: Cutting Spending vs. More Income that most people believe that cutting spending is the faster way to reduce debt. Of course, this is certainly true
to some extent. My position is that there are three main points to be addressed when reducing debt, specifically: (1) Getting
organized financially; (2) Becoming more efficient with your current debt and spending; (3) Generating more income. Here are some suggestions to expand on number (2), specifically as it applies to spending. 1) SHOP ONLINE
If you have to make a large purchase; for example,
computer, water heater, etc. ALWAYS check out prices online. Don't be tempted to get it at the local store without taking
a look at competing prices. 2) GIFTS
Always stay on the lookout to get future gifts at today's discounts. Half-price or clearance sales run year round. If
you see a good sale on say, leather wallets, and there are people on your list who could use one, pick up a few as gifts.
High quality gift, low cost. Store the items in a gift-bin, keep track of what's in there, and before you know it, you'll
have all the holiday/birthday gifts you need. 3)
AUTO REPAIRS
If you need a new part for your car, check out the availability of that part at the local junkyard.
I have repaired many vehicles with "pre-owned" parts with great success! 4) LEAKY FAUCET
If you have a leaking hot water faucet, be sure to fix this immediately! It's truly money going down the drain.
Not because of the water that's being wasted, but because of the cost to heat that water. 5) BALANCE YOUR ACCOUNTS
Always balance your checking account. This simple, okay, maybe not
so simple, exercise is worth your time to ensure that you don't accidentally bounce any checks. Bounced check fees
can cost around $35, not to mention potential late fees, etc. 6)
CLOTHING NETWORK
If you have young children, then you know how quickly they grow out of their clothes. We always
pass our children's clothing to our friends whose kids are just a little younger. We also have friends that give us their
kids' clothes. This works so well! 7) INTERNET
AUCTIONS
Buy stuff at eBay.com! You can save so much money, it's incredible. I just purchased a cordless
phone, with caller ID (hands-free phone), for only $35 with shipping included. This phone would cost $100 at the store! 8) MATINEES
If you want to see a movie, do it during the
day. Movies are so expensive! Even the matinee price is getting up there, but it's a big savings! It's also much less
crowded. 9) HUNGRY SHOPPER
Always
be sure to eat before going grocery shopping. I'm sure you know what I mean. 10) VACATIONS
When people think of a vacation, they think of a far away tropical island. This
of course means air fare, cruise fare, hotel accommodations, etc. But have you explored all the sites in your vicinity? There
maybe a lot to do and see all within a 2-4 hour's drive from your home. Stay a night at a Bed and Breakfast, cabin/cottage,
or even a campground. Then drive to the next attraction. Why pay thousands when there may be something great to do just a
few hours away? See my article, My family vacation for $32 per person, per day! 11) PACK A LUNCH
Maybe not every day, but at least a few times a week. It may take a little more time in the morning, but with lunches ranging
from $5-10 a pop, you'll save a lot and probably eat healthier meals. |
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