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Personal Finance from the Broke Perspective

What Every Working Adult Should Know About Financial Pressure

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In today’s fast-paced world, financial pressure is a common experience for many working adults. Understanding and managing financial obligations is crucial in achieving stability and peace of mind. This article explores important aspects of financial pressure and offers practical insights and strategies that can help alleviate this burden.

Understanding Financial Pressure

Financial pressure comes in many forms, often starting with the difficulty in meeting monthly expenses. From mortgage payments to utility bills, the stress of financial obligations can feel overwhelming. Recognizing these pressures is the first step in overcoming financial challenges and finding ways to manage stress effectively.

Individuals facing significant financial hardship may even resort to bankruptcy. In the first quarter of 2024 alone, 66,861 people filed for Chapter 7 bankruptcy, indicating the severity of financial pressure experienced by many. Understanding these statistics can help us better grasp the broader implications of financial struggles in society.

Workplace Dynamics and Financial Impact

The workplace is another significant factor influencing financial pressure. Long hours and demanding schedules can affect not only an individual’s health but also their financial well-being. In states like California, overtime is paid for work beyond eight hours a day and 40 hours a week, reflecting the need to balance work and personal life.

However, the true cost of workplace dynamics goes beyond just overtime payments. Interpersonal issues and misunderstandings at work can result in financial repercussions as well. Such complications potentially account for up to 18% of total salary payouts annually, highlighting the importance of maintaining healthy professional relationships.

Building strong communication and conflict-resolution skills can significantly mitigate these challenges. Employers can support this by providing training and fostering a supportive workplace culture. Employees, in turn, can focus on developing these skills to enhance both their work environment and financial stability.

Balancing Home Life and Finances

Financial stress often extends to home life, affecting family relationships and overall well-being. Managing financial responsibilities while balancing home and work life requires strong organizational skills. It is essential to establish clear financial goals and involve family members in financial planning and decision-making.

Creating a home environment that supports financial health can involve setting up savings goals and discussing financial priorities as a family. Homeowners can also explore options such as refinancing mortgages for lower rates or reorganizing household expenses. Achieving such harmony can lead to a more secure financial future and a happier home life.

Support systems, such as family, friends, or financial advisors, can be invaluable in navigating financial pressures. They can offer practical advice or simply provide moral support during challenging times. Utilizing these resources can enhance both financial management and lessen stress within the home.

Financial Education and Planning

Education is a powerful tool in managing financial pressure. By understanding basic financial principles such as savings, investments, and credit management, individuals can make more informed choices. Financial literacy programs and resources are widely available and can enhance one’s ability to manage personal finances effectively.

Long-term financial planning is another key component of reducing financial pressure. Setting specific goals, such as saving for retirement or a child’s education, can provide direction and purpose. With a clear financial plan, individuals are better equipped to navigate uncertainties and make proactive financial decisions.

Building Resilience Against Financial Pressure

Building resilience is essential to effectively manage and overcome financial pressure. Cultivating a mindset of adaptability and preparedness can turn financial hardship into opportunities for growth. Resilience involves not just surviving financial challenges but also learning and evolving through them.

Financial pressure is a multifaceted challenge that requires understanding, careful planning, and resilience. By recognizing the sources of financial stress, embracing financial education, and fostering healthy work and home environments, individuals can effectively navigate and alleviate financial pressures. Empowering oneself through informed decisions and support systems can pave the way for a more secure and fulfilling life.

Should You Even Bother Negotiating With Credit Card Companies?

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If you have an outstanding balance on a credit card, you may be wondering if it’s worth it to try to negotiate with your credit card company. The answer is, yes; it’s possible to negotiate various terms with your credit card companies. Especially if your financial situation has changed, for better or worse, this can help you negotiate. Here are a few times when you should negotiate and what you can expect.

When Should You Negotiate?

Credit card terms are never set in stone. They may be more flexible than you think. You can negotiate at any time with your credit card company, but certain factors can make you more likely to get what you want. Here are a few times when credit card companies are more likely to oblige your requests.

If You Have a Financial Hardship

You may need to call your credit card company if an unexpected financial hardship arises. Don’t just continue to miss payments. This could send your card balance into collections and impact your credit score. Most creditors will allow you hardship assistance of some kind. This negotiation is pretty standard and one you will likely receive if you pursue it.

You Have a Lumpsum of Cash to Pay Off Your Card

If you find yourself with enough cash to pay off your credit card debt, you may be able to negotiate a lump sum payoff. This is usually only when your account is overdue or in collections. Then, credit card companies or collections agencies may settle your debt for less than what you owe.

If You’ve Increased Your Credit Score

When your financial situation changes for the better, you should try to negotiate with your credit card company. You may be able to secure a better interest rate. If rival credit cards are offering a better rate, point this out. Asking for a balance transfer to another card with better terms may prompt your credit card company to match it. You have nothing to lose by asking for a few points off your interest rate percentage. This could save you hundreds or thousands of dollars in the long run.

If You Have Additional Income

Perhaps you’ve just gotten a new job and your income has increased. This is a good time to ask your credit card company for a credit line increase. Even if you don’t use the additional credit on purchases, having more available credit can help your credit score.

If You’re a Loyal Customer

Say you’ve been with your credit card company for several years. You can ask for better terms on your current card, like cashback or rewards. Most credit card companies will upgrade you if you ask. Additionally, if you’ve been hit with a fee, like a late fee, and it’s the first time, you may want to negotiate with your credit card company to waive the fee. If you’re a loyal customer who has always been in good standing, they are more likely to make an exception.

Have you negotiated with your credit card company? Were you successful?

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10 Ways to Crush Medical Debt Without Destroying Your Life

10 Ways to Crush Medical Debt Without Destroying Your Life

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Medical debt can be crushing. In fact, 58.5% of respondents to a 2019 study published in the American Journal of Public Health said medical expenses contributed to their bankruptcy. Don’t let medical debt destroy your life. Here are 10 ways to reduce your debt and work on repayment without losing your sanity.

1. Review Your Bills

Did you know that medical bills often contain mistakes? Medical Billing Advocates of America has estimated that three-quarters of medical bills contain some type of error. It’s important to review your bills item by item and look for errors. You should use your bill as well as your explanation of benefits (EOB) from your health insurance provider, if you have insurance.

Sometimes you can be charged for the same service twice or be charged for something you didn’t receive. It’s important to be aware of the care you’re receiving. For example, in the hospital, try to keep track of medications you’re taking, tests you receive, and any procedures. Being your own advocate is essential to keeping track of your medical expenses. This way, you’ll be prepared if medical bills are incorrect.

2. Look Up Fair Pricing

Did you know that you can look up the Fair Market Value of medical services? Using the Healthcare Bluebook, you can research what services actually cost. This way, you can make sure that your bill is accurate and fair.

3. Dispute Surprise Billing

Did you know that surprise medical billing is heavily regulated and is illegal in some states? Sometimes this is called balance billing. If you receive a large bill from an out-of-network provider, your insurance may not cover it.  You will then be billed for the balance. The No Surprises Act (NSA) took effect on January 1, 2022, and aims to protect patients from unexpected high costs when receiving certain medical services, particularly emergency care and care from out-of-network providers at in-network facilities. 

4. Put It in Writing

If you dispute a bill or coverage with your provider or insurance, make sure to put it in writing. For example, if an insurance claim is denied, you can request that the claim be reviewed internally. If it is still denied, you are entitled to an external review as well. These requests should be made in writing, and you should keep a copy for yourself. Making sure that your insurance company pays for its share is critical in reducing what you owe. The same is true if you dispute a charge with your doctors or a hospital. Always create a paper trail so that you can refer to it later if the dispute goes unresolved.

5. Negotiate

Sometimes, if you can’t pay your medical bill, you can apply for a lower payment due to hardship. You may have to fill out paperwork to apply and disclose things like your income to qualify. However, this can significantly reduce what you owe and lower payments so that it’s within your means. Be aware that you’re more likely to get financial assistance before you miss payments, so it’s best to be proactive about this and not let your medical bills go into collections.

You may want to speak to a medical billing advocate to help you negotiate your bills and correct any errors. The AdvoConnection Directory and the Alliance of Claims Assistance Professionals can help you find a medical billing advocate, but you may need to pay a fee.

6. Ask for a Discount for Upfront Payment

If you can pay the bill upfront, ask if you can get a discount for doing so. This reduces administrative costs for your provider. So, they are usually willing to discount your bill. This is especially true if it’s a large bill because your provider wants to receive payment promptly.

7. Set Up a Payment Plan

If you can’t pay your bill in its entirety, many providers will let you set up a payment plan without interest. This is much better than paying off the debt on a credit card and paying unnecessary interest. Usually, payment plans can range from months to years, depending on your provider.

8. Find Support

Do you have a lot of unexpected medical expenses? You don’t have to drown in debt. Several charitable organizations help individuals pay for their medical debt. For example, the HealthWell Foundation helps those who are underinsured to pay copays, premiums, deductibles and out-of-pocket expenses.

9. Consolidate Debt

If you have a lot of different medical bills, it may make sense to consolidate the debt. This will give you one monthly payment. However, you may have to pay interest if you take out a personal loan, for example.

10. Prioritize Other Debt

Medical debt may not be as pressing as mortgage payments or credit card bills. Not paying these could make you lose your house or bring down your credit score. Some medical debt won’t hurt your credit. For example, Equifax, Experian and TransUnion recently announced they will stop noting medical debt in collections under $500. Furthermore, the Consumer Financial Protection Bureau (CFPB) finalized a rule in January 2025 that prohibits most medical debt from appearing on credit reports.

How has medical debt affected your financial health? Let us know your experience in the comments.

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