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Do you have a emergency plan in place for natural disasters common to your area?  Would you teach your children what to do in the event of a fire in your home?  People understand the the importance of having a plan in place to deal with natural disasters yet fail to properly plan for a financial disaster.  The current economy has brought this lack of planning to the forefront and many people are realizing they are not adequately prepared if faced with the loss of employment, disability, medical emergencies or other financial hardships that are bound to happen at some point in their lifetime.

Anticipate Financial Disasters

When disaster strikes it is too late to think about what you should have done.  You can take the following steps today to be better prepared for what tomorrow may bring.

Develop an emergency budget-  Prepare a budget to determine the minimum amount of income you need to survive a financial emergency as well as the minimum amount of expenses you would have to pay.

Review your insurance policies-  Take the opportunity to review your policies and ensure you have adequate protection before you actually need the coverage.  If you wait until a medical emergency happens it will likely be too late to make the necessary changes to provide the protection you need.

Find out if you qualify-  Protect your credit during the good times to increase the changes of qualifying for a loan during difficult times.  Incurring debt at any time is not recommended for your long term financial security however you may find yourself in a position where you need that money to survive.  If the worst case scenario happens you will have the peace mind of knowing what options are available.

Save, save, save-  The best way to prepare for a financial disaster is by having resources already available should you need them.  Look at your current budget (develop one if you don’t already have a budget in place), cut unnecessary expenses and determine how much money you can put aside in an emergency fund.  By building an emergency fund you will reduce the chances of having to borrow money in hard times and have the security of knowing that you are taking steps to protect yourself and your family in the event of an emergency.

Multiple sources of income-  With unemployment on the rise, the fear of losing your primary income is a realistic concern for many families.  Don’t wait until you are facing a layoff to consider additional streams of income.  By generating outside sources of income you will reduce the damage to your finances should you lose your job.

Preparing for the future can make the difference between surviving a financial disaster or facing years of struggle trying to recover.

Trisha Wagner is a freelance writer for DepositAccounts.com where you can compare rates of deposit accounts from dozens of banks in one place.  Trisha writes regularly on the topics of personal finance and saving accounts.

Tags: Economy, How to Save // 8 Comments »

At a time when your family already has to struggle with the complexity and cost of sending you off to college it may not seem like the best time to think about what  health insurance coverage is available for you. While it may seem to be something that could be put off until things get settled, it is important to ensure your coverage is in place in the event of emergency while at school. Many times, students can be covered under their parent’s plan as long as they are not married and under the age of 24. But you may still need to look at your policy to make sure it provides adequate coverage for you when you venture off to higher education.

Make Sure You Know How Your Student’s Health Will Be Covered

At what age will a child “fall off” of your parent’s health insurance? This will vary by insurer and by state law, so make sure you and your parents know how long you will be covered.
Does the family health insurance plan rely on a local network? If you belong to a PPO or HMO, it may be local. If you leave the county or state to attend another school, can you still use your policy? Even if you will still be covered, you may have to get “out of network” coverage which means that out of pocket costs will be much greater.
Student health centers may reduce the amount of coverage a student will need, but cannot be relied on for all medical needs. For one thing, they may be closed during vacations and breaks. More importantly, most student health care centers are only set up to handle minor health issues, and all serious health problems or health emergencies would be transferred to a private hospital.
Graduate students, or older students, may very well be over the age that will be covered on their parent’s family plan, and so student health insurance plans can provide security that health insurance will not lapse.
If you plan to travel overseas as part of their education, you may even need to look into international student’s health insurance.

College Student Health Insurance Rates are Low

You will be pleasantly surprised to learn that many major insurers offer student health insurance at a very reasonable rate. They can afford to offer lower premiums because, as a rule,college students are fairly cheap to cover.

College age people are, of course, a younger and healthier population than the general population.
Student health centers do handle minor health problems, and so student health insurance may only have to cover more rare situations.

Other College Student Health Insurance Considerations

Many college student health insurance plans also allow a covered person to renew it if they do not find a job right after they graduate. In some cases, a graduate may land a job, but group health will not begin until a few months have passed.  A policy that can provide coverage during this gap between school and group health insurance can be very valuable.

Some students may need to take a break in their education because of a family problem or the need to work for awhile to save money. If a job does not include health insurance, many student health insurers will also allow the covered person to retain their coverage during this time if other eligibility requirements are met.
What If You Do Not Find A Job With Group Health Right After Graduation?

Of course, many college students graduate without an immediate job prospect. It may also happen that as a recent graduate you may end up with a job with a smaller company that does not offer a group health benefit. If there is no student or family health insurance to cover the gap, here are some steps to take to find coverage.

If you have an income, look into individual major medical plans. For younger and healthier people, these policies should still be affordable.
If  you have a preexisting health condition that makes them unable to qualify for individual health, look into the state’s high risk health insurance plan. Every state has one, but they differ. The state insurance department or a qualified local health insurance agent should be able to help you.
If you have little or no income, you may qualify for a federal, state, or county health program. Your state department of Health and Human Resources may be a good place to start finding out about local options.

How To Find Student and Graduate Health Insurance

Student health insurance and individual health insurance plans vary by state and health insurance company and thus it is necessary to look into what is available in your site. Make sure you take some time to compare your choices.

This post was written by Barbara Waltz one of the founders of 247QuoteUs.com, an insurance blog and insurance quote comparison guide.

Tags: Uncategorized // 6 Comments »

This article is a guest contribution from Steve Sildon, a Senior Managing Editor of CreditCardAssist.com. Steve contributes regularly to the personal finance blogging community with “tip-sheets” about a variety of personal financial topics, including personal loans, credit cards , mortgages and lines of credit.

Remember all those 0 percent APR credit card offers that practically bombarded you on a weekly basis? As the economy continues to nosedive, along with plummeting bank earnings, you might be wondering what happened to all those great deals.

Financial Institutions Cut Costs

Not long ago, droves of 0 percent APR credit cards flooded mailboxes across the nation. They provided consumers a simple, no-fee option of transferring existing high interest credit card balances onto a new card at 0 percent interest for up to 18 months. The 0 percent balance transfer feature has been very effective at attracting new applicants, but has unquestionably been a “loss leader” for banks and card issuers. The past year has brought about unforeseen changes in the financial industry though, resulting in a drastic reduction in the number of cards being marketed to consumers overall. Banks and other financial institutions simply aren’t making anywhere close to the profits they used to. Foreclosures, bankruptcies and mounting collection costs in our struggling economy have dramatically affected earnings and the stability of the financial industry. Card issuers have very few choices in this crippling recession: they can either increase fees or eliminate products that are diminishing their profits. Given the nature of these “loss leader” 0 percent promotions and the financial pressure that banking and lending institutions are under right now, it’s easy to see why credit card offers like these are fading from view.

0 APR Transfer Fees Are Costly

This type of credit card is still around, but there’s been a huge drop in the number of offers extended ? especially for fee-free balance transfers. Today, if you come across an offer, it’s more likely to include a higher balance transfer fee. Today’s offers have consumers paying around a three percent transfer fee with a minimum fee of five dollars to 10 dollars, and an unlimited maximum fee. Translated, this means that the cost of transferring an $8,000 card balance to one with an introductory offer for a three to six month period comes with a hefty $240 dollar fee.

There is talk among financial experts that these cards could become a thing of the past; mostly because the providers are becoming more anxious over the state of credit card billing in this economy. But for now, cards offering zero percent still exist; just in very short supply, and usually minus the fee-free transfers.

Understanding the Terms and Conditions

If you receive an offer, making sure you understand the terms of a card before choosing one is critical. Very few fee-free credit cards still exist, but if you happen to find one, you should understand that they come with very strict stipulations. For example, a common stipulation is that the balance transfer is only free if the transfer occurs within the first couple of months of opening the account.

Do not skip reading the fine print and legalese if you are considering any credit card offers. Terms and conditions of credit cards can vary greatly from one card to the next. It’s also important to understand that most of these card offers now require excellent credit. Receiving a “prequalified” offer by mail is no guarantee that you will even get approved nor qualifies you for the most beneficial terms being offered either.

Being approved for these card offers means that you are required to follow the terms and conditions explicitly ? no exceptions ? or you will immediately lose all of those attractive introductory rates and any perks that were part of the deal. Being just one day late or going over your credit limit by even a single penny can quickly send your account into a much less favored status, including much more expensive financing charges and accompanying fees.

These types of heavily incentivized offers are very costly for banks and card issuers and because of the dwindling state of the economy will only continue to slowly, but steadily, drop off the radar screen. They may not completely disappear but they will certainly not be as heavily promoted as they have been in the past few years. As banks and credit card issuers continue to tighten their belts to reduce operating costs and other expenses just to stay afloat, reducing the number of heavily incentivized offers being solicited to consumers is simply a matter of survival for many.

Tags: Credit Cards // 6 Comments »