Beating Broke

Personal Finance from the Broke Perspective

5 Unintended Consequences Of Breaking an Apartment Lease

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Unintended consequences of breaking an apartment lease
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Are you considering breaking the lease on your apartment? Sometimes life events like a new job, sudden job loss, or buying a home can cause us to break an apartment lease. However, in these circumstances, your landlord has no obligation to let you out of your lease. Before you notify your landlord, you should be aware of the consequences that could stay with you for years to come and it can be difficult to find no credit check apartments. So, here are some things you need to consider before you abandon your current lease.

1. Loss of Security Deposit

Responsible for unpaid rent when you break an apartment lease
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The most immediate consequence of breaking your apartment lease is losing your security deposit. This is the most common consequence of breaking an apartment lease. If you paid the first month’s rent, last month’s rent, and a security deposit, you should also expect to lose your last month’s rent if you break your lease.

2. Responsible for Unpaid Rent

Your landlord will probably also hold you responsible for any unpaid rent. Depending on the terms of your lease, some landlords will allow you to find someone else to rent your apartment and if successful, won’t charge you for the remainder of the lease. Every situation is different though and your landlord has no obligation to give you this curtsey. Check the early termination clause of your lease for more information. There may be a buyout clause in your lease detailing how much you will owe if you break your lease and how much notice you need to give.

3. Impact on Rental History

Breaking apartment lease impact on rental history no credit check apartment
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Landlords often scrutinize past rental history when you apply for a new lease. Breaking an apartment lease could complicate your search for a new apartment and raise concerns with your new landlord. You may have to pay additional fees to get approved or your application could get denied because of a poor rental history.

4. Legal Action by Landlord

If you break your apartment lease and don’t pay the remainder of the lease, your landlord has the right to take legal action. This could lead to a civil lawsuit and you may incur lawyer fees. In some situations, landlords may be granted the right to garnish wages or could seek the help of a collections agency to recoup any money owed.

5. Credit Score Impact

Early termination of your lease can also affect your credit score. Your landlord could report any unpaid rent to credit bureaus, which will drop your score. This may make finding a new apartment more difficult and you may need to look for no credit check apartments to obtain a lease. You also may have difficulty finding loans in the future.

Exceptions to The Rule

There are of course extenuating circumstances where breaking the lease on your apartment could be appropriate. If you break your lease because of active military duty, you are covered by the  Servicemembers Civil Relief Act and can lawfully break your lease.

Environmental factors may also allow you to break your lease such as domestic violence. The majority of states allow victims of domestic violence to break the lease agreement without penalty by providing landlords with written notice.

If your apartment has uninhabitable living conditions not rectified by the landlord, you could be entitled to break your lease without consequence as well. Again every state has different landlord-tenant laws, so you may want to consult a lawyer before trying to break your lease.

Options If You Need to Break Your Lease

You will have trouble finding a new apartment if you decide to break your lease. You may have to search for no credit check apartments, which are hard to find. Additionally, these kinds of apartments will typically have higher security deposits, costing you more out-of-pocket.

While circumstances may make it necessary for you to break your apartment lease, it’s important to know how it will affect your financial situation now and in the future. This way you can limit the impact as much as possible. If you have additional questions about the terms of your lease, make sure to communicate with your landlord and contact an attorney if necessary.

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Do Medical Bills Die With You? 5 Surprising Facts About Debt After Death

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Do medical bills die with you?
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Medical debt has become an overwhelming problem for many Americans. The Survey of Income and Program Participation (SIPP) estimates that Americans owe at least $220 billion in medical debt. More often than not, this debt slips into collections and is left unpaid. But what if you die before you’re able to pay off your medical debt?  Do medical bills die with you?

The short answer is medical bills don’t die with you. Medical debt though is considered unsecured debt. Unsecured debt includes things like student loans, credit card debt, and personal loans. These types of debt are handled differently than secured debt such as mortgages or car loans. While every situation is different, here we’ll share what happens to your debt after you die.

1. Your Estate is Responsible

Your estate pays your medical bills when you die
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Your estate will be responsible for your medical debt when you die. This means that all of your total assets will have to cover the cost of unpaid bills. If your estate is solvent, which means it can cover the debt, any unpaid medical bills will be settled during the probate process. Then any other assets will be distributed to heirs as dictated by the deceased person’s will. Some states however require heirs to be paid out first before any debts are settled.

2. Bill Collectors May Look to a Family Member to Pay

If your estate doesn’t have the funds to pay your medical debt, or is insolvent, usually the courts will determine how much creditors will receive for the debt. Sometimes, creditors completely write off the debt. Again, this is all dependent on federal and state laws. In some cases though, bill collectors may find next of kin to repay the debt such as a spouse, especially if you live in a community property state like California. If medical bills were co-signed, that person may be responsible for your unpaid debt.

3. Filial Responsibility Laws

Family taking responsibility for medical debt
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More than half of states have laws where adult children are responsible for their parent’s medical bills if they can’t pay. Usually, these laws don’t have to be enforced because Medicaid will cover the cost of these expenses. If the medical services aren’t covered by Medicaid though, your children could have to foot the bill.

4. Medicaid May Ask Your Estate to Repay Them

If you are a Medicaid recipient and over 55, when you die your state’s Medicaid may pursue your estate. Bills from nursing home care, hospital stays, or prescriptions could be collected from your estate. Your survivors won’t be held responsible, and debts will only be collected if you are not survived by a spouse or children under 21.

5. Does Medical Debt Effect Credit Scores?

Medical debt is handled differently than other forms of debt. However, if your medical debt is sold to a third-party collection agency, it can negatively impact your credit score after a period of time. Collection accounts for medical debt stay on your credit report for seven years which can significantly damage your credit.

Do Medical Bills Die with You?

While medical bills don’t die with you, how they are repaid after your death may vary. Each situation is unique so it’s best to contact an estate lawyer to discuss your specific situation. Are you worried about medical debt after you die? Leave your questions in the comments.

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Tips for a Successful No-Spend Year

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Tips for a successful no-spend year
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If you’ve tried to have a no-spend month or year in the past, you may have quickly given up on your goals. It’s easy to not be realistic with our financial goals when we are trying to decrease spending in the upcoming year. Around 20% of Gen Zers and Millennials attempt to have a no-buy year, but frequently abandon their goal when things get tough. However, if you frame your no-spend goal in the right way, you’ll have an easier time sticking to it. Let’s take a look at some tips that can help you reach your goals in 2025.

1. Differentiate Wants and Needs

Differentiate between wants and needs during your no-spend year
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It’s unrealistic to say that you won’t buy anything in the next year. But you can set healthy limits for yourself. For example, you probably don’t need another hoodie, but you may need new shoes for work. Try to anticipate these needs as best you can when you are budgeting. You can also give yourself small allowances for each category each month.

2. Limit Your Spending to One Day a Week

Little purchases throughout the week add up. Some people find that designating one day per week to make essential purchases helps them curb their spending. For instance, instead of stopping at the grocery store three or four days per week, make a larger trip one day a week. This will help you track your spending better. Plus, you’ll be forced to use things you already have in the pantry for instance before restocking.

3. Focus on Things That Aren’t Materialistic

To feel less restricted, you may find it helpful to focus on not buying stuff. You could allow yourself instead to focus on experiences and hobbies and give yourself a small budget for those things. Some people incorporate rewards for hitting their financial goals, like a trip at the end of the year.

4. Determine Your Goals

Before on a no-spend year, make sure you have specific goals. You may want to create an emergency fund or save $10,000 this year. You may want to change your shopping habits and set up healthy parameters for yourself. Ultimately, no-spend years are a great opportunity to change our behaviors and relationship with money.

5. Keep a Journal

In your journal, you can outline things that you can and can’t buy, how you will handle impulses, your goals, and your rewards. You can also keep a log of how you are feeling throughout your no-spend year. Write down when you averted an unnecessary purchase and celebrate your little victories along the way. This will help you stay on track all year long.

6. Get Rid of Your Triggers

Get rid of your triggers like Amazon Prime
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If you know that window shopping is problematic for you, don’t go to the mall. You may also want to leave your credit cards at home and only carry cash for incidentals. If online shopping causes you to overspend, you may want to unsubscribe from marketing emails and get rid of Amazon Prime. Additionally, if ordering takeout is a trigger, delete DoorDash and Uber Eats.  Instead, create a limit for yourself that you can only eat out or get takeout twice per month. Choose limits that are realistic instead of saying you’ll never do these things.

7. Say No to Yourself

The hardest person to say no to is yourself. Often, we get into the habit of saying “I deserve this.” Maybe we have a stressful week and need to blow off steam, this is when bad spending habits usually crop up. If you can learn to say no to yourself and redirect yourself toward healthier behavior, your no-spend year will be much more successful.

8. Surround Yourself with Positive Influences

Reading material to support a no-spend year
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If your TikTok or Instagram feed is full of influencers who convince you to make impulse buys, unfollow them. Instead, surround yourself with positive influences and content. For example, Buy Now! on Netflix may give you motivation to continue your healthy spending habits. Follow influencers, read books, and watch TV shows that align with your money philosophies to stay on track.

Staying Motivated During a No-Spend Period

If you fall off the no-spend wagon, don’t give up. The only way to set new habits is with time and practice. Instead, if you make a mistake, re-evaluate if your goals are realistic for you and what is and isn’t working. The more flexible you are, without being overindulgent, the more success you’ll have in the long run. Have you tried a no-spend period? What was the most challenging aspect?

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