Financial Freedom Podcast

Student loan debt continues to be a problem nationally, as the total owed exceeds $1 trillion. Although private loans are also a problem, the good news is that they make up only 15% of the total debt, and federal loans still dominate the landscape. The amount of debt per student (and in many cases the parents) has led to real problems with affordability of the monthly payments and defaulted loans.

These people have either given up, and let the loans default, thus facing wage garnishment and the loss of their federal tax refunds for the foreseeable future, or are hiding out in a deferment or forbearance, hoping that their financial future will somehow get better and allow them to make the payments. Still others file chapter 13 bankruptcies to prevent the entry of default by forcing the loans into a forbearance while making a small monthly payment for three to five years.

None of these are the optimal solution, especially as there are many offered by the U.S. Department of Education that allow you to get out of default (if you are) and get into a monthly payment that is affordable at your income level. So in this episode of the podcast I talk about what those solutions are and how they can help.

One part of a financial strategy that is often overlooked is dealing with death and disability. It is an unpleasant topic that no one wants to think about, but one that has to be addressed. Failing to plan for them can threaten to unravel all of the work that you have done to date to ensure financial freedom. It could prevent your assets from going to those whom you want to receive them or cause major disruption if you become disabled or incapacitated.

So in this episode, I talk about why you need a will, a living will, and a power of attorney to protect your financial plan and prevent disruption and chaos in your financial life. I will discuss what can go wrong without them, and how having them can prevent these problems.

One option people have for dealing with their debt is to negotiate a compromise figure, so as to get a balance that they can afford to pay, either in a lump sum or in payments over time. They may not be able to afford $7,500, but they can afford $5,000. In this way they can avoid bankruptcy and still pay their creditors.

A complication comes in, however, in that the $2,500 you saved on the deal is considered taxable income by the IRS! This can come as a nasty surprise when it comes time to prepare your return. But there may be a way to avoid those taxes if you know what to do. That is why, in this episode, I invited local accountant Jerry Glauser onto the show to talk to me about the solution to this problem.

When it comes to home mortgages, there are many options out there. You can go to a conventional, neighborhood bank, your credit union, or the online companies that are advertising on TV. Lately there have been a lot of commercials about people applying for a mortgage in their underwear, or in a movie theatre from their smartphones. Companies like LendingTree and RocketMortgage really want your business and emphasize the ease and convenience that they offer.

Choosing which option to go with is very important, not only in the short term, with insuring that you will be approved for financing the home of your dreams, but also in the long term of living with a 15 to 30 year mortgage. So in this episode I talk again with local real estate Broker Lynn Stambaugh of Cardinal Real Estate Services to see whether the convenience touted by online mortgage companies comes with any downsides that you should consider.

People in financial difficulty are often hounded by debt collectors trying to get them to pay. Although the constant barrage of phone calls and letters is bad enough, many times these collectors will use harassing and intimidating tactics in order to be the squeakiest wheel and get to your money first. Dealing with this can be very stressful and add to the overall desperation of those deep in debt.

But fortunately, there is federal law in place to protect you from this type of harassing behavior and even give you a basis to sue the debt collector for damages and attorney’s fees! It is called the Fair Debt Collection Practices Act, and it is a powerful weapon against unethical and unscrupulous debt collectors. In this episode, I talk about how this law can be your sword and shield against harassment.

No matter what statistic you read, it is fairly safe to say that most businesses fail. There are many reasons for this, such as poor planning, insufficient capital, or bad management, and working to avoid these is key to the success of your business. But some things are just beyond your control, and when those events happen, they can be devastating to your business.

One way to guard against this is having the right insurance. The proper coverage, such as business interruption insurance, can make all the difference in the world if disaster should strike your business. That is why, in this episode, I brought back local insurance broker Dave Strout of Cettei & Connell to talk about what kind of insurance coverage every business should have to increase the chances of success.