This is better than making the purchase with a credit card first, then scrambling for the money to pay for it.

but according to your advice, i should stash $1k aside first as an emergency fund.

the only problem is, i’ll somehow find a way to justify a new dress as an ‘emergency’ etc. you get my drift. any advice in terms of setting criteria for how the ‘emergency funds’ can be spent? is there a golden rule that can help me discipline my spending?

There is a point — saved money on interest that occurs between now and your emergency. Let’s say you have $1000 in a bank and $1000 in debt. Let’s say you have 12% yearly interest on your debt and 0% on your saving account in a bank — normally you’d get some small percentage on your bank account but 12% is a very conservative estimate for your credit card interest too. To keep things simple we’ll ignore compounding or everage daily balance, ignore whatever money you save every month or your minimum payments.

Case 1: you use your $1000 to pay off your debt. Net result $0 in the bank and $0 in debt. The “money” portion of your net worth is 0.

Case 2: you keep your debt and your $1000 as an emergency fund i.e. you owe $1000, so your net worth is still 0.

Let’s say an emergency happens exactly one month from now and it costs you exactly $1000.
Case 1: Ignoring whatever amount you could’ve saved for simplicity, you still have nothing in a bank and you don’t owe any money. You borrow $1000. Net result: you owe $1000 and have nothing in a bank.
Net worth: $-1000.

Case 2: During this month, your debt has grown by 1% more than your savings. So now you owe $1010. You still have $1000 in a bank as an emergency fund. So you use this $1000 to pay for your emergency and you feel good about yourself. But… You still owe $1010. Net worth: $-1010. I.e. you are $10 worth off or shall I say you paid extra $10 for “feeling good about yourself”.

This may not sound like much, but if your interest had been higher or the amount larger or you had more than one month between now and emergency, the difference could be more dramatic.

Now, this was a very simple case. In a real life situation, the extra interest would’ve been offset by your minimum payment in case 2. But then in a real life situation, you could’ve saved the money that go towards minimum payment in case 1. In a real life situation, you would’ve used high yield savings, but than the interest on your debt could’ve been much higher than 12%. Plus I didn’t even consider compounding.

I think one of the reasons people get in debt is that they cannot forget about “feeling good” and concentrate on the bottom line. If you change your mode of thinking, you may be able to avoid debt or get out of each much sooner.

My father was recently very ill, and I learned some useful tips on negotiating the often-baffling healthcare system. Hospitals generally have a Social Work department to assist patients with financial or personal support needs, but you may have to specifically ask for it. The doctor who coordinates a patient’s care inside the hospital is called a Hospitalist, and communication with that office can be crucial. Ask lots of questions and encourage your father to do the same. Keep a notebook handy for jotting down all the information you can in one place. If there are problems with quality of care, complain all the way up the chain of command, consulting the Administration if necessary.

I’m on Social Security Disability for bipolar disorder, and it is NOT an easy road to get accepted. Even the worst-off AIDS patients were usually denied on their first application, so assume that your father will be too. I have never seen anyone make it through without a lawyer, so get one you don’t have to pay unless and until that rainbow check arrives. It can take several months to a few years to negotiate the process, but the good news is that you’re paid retroactively to the date you filled out your initial application.

Hope some of this helps and that your father soon regains his health. Remember to take care of yourself too. Hugs from Illinois!!!

Short-term, high interest debt, such as credit cards, is usually a big mistake. Getting into debt to fund your everyday spending is just crazy. It leads you to spend more than you can, and it gets you into a spiral.

Of course, sometimes, carefully planned long-term debt such as a mortgage can and does make sense. It is a very useful tool. But still, needs to be used very carefully. Many people misuse this resource by getting too much in (i.e. buy houses they cannot afford or without a down payment).

It would be worth doing anything you can to get that started with a chunk of money. $20/wk is the way to go failing all else, and it’s certainly the long term strategy, but at least psychologically it’s good if you have a pile right way. Try selling some of your stuff, either thru garage sales, ebay or Craigslist. Sell off stocks your grandparents gave you, a little used jewelry or silver collection, unused exercise equipment or anything that you don’t truly need.

If you could sell off enough to raise $1000 within the first few weeks, then add $20 or what ever each week you’d be well on your way, and have something to build on. That would be a huge emotional lift. Then work on the credit cards.

If your credit rating is very poor, you might not have much luck. If it’s good, I’d look around for cards offering 0% balance transfers. When you call the companies, tell them if they don’t lower your rate you’re going to have to look into moving it to a 0% offer and close your account.

You could also go to a credit union and see what they offer in the way of personal loans.

Oh, and don’t get mad; that doesn’t work. If they say no, ask to speak with a supervisor. If the supervisor says no, thank them for their time and try to find somewhere else to move the debt.

It contains the list of organizations that help people with co-insurance. Different organizations have different rules and different income limits. As a rule, their income limits are considerably higher than medicaid. Maybe about 50K a year or something like it – you have to call to find out. If one of the listed organizations doesn’t work out for you, check another one. The two that definitely help are healthwell and patientaccessnetwork, but you should check out all of them.

Perhaps I’m using the wrong “sales pitch” on them?

Has anyone had any luck lowering rates on current cards (with balances)? If so, can you tell me what you said?

Check with the community he lives in to see if any services are provided, or if someone can point you in the right direction. Let your employer know about your $ situation and see what suggestions they can offer.

Have you spoken with his landlord to see if he can get a temporary reduction in his rent? If your dad has been a good tenant he may get some flexibility.

This is one of those times when you try anything!