For love of money

By leanne | August 14, 2009

What do we really know about money? We spend so much time on the subject. Whether it’s saving, earning, investing, splurging, cash is mentioned as often as love is in the everyday language.  In 1964, John Lennon and Paul McCartney told us, “For I don’t care too much for money. For money can’t buy me love.”  (Can’t Buy Me Love, 1964). That may be true, but as a culture, we certainly are precoccuppied with cash and everything else money can buy.  Americans love money. Even clear back in 1835, Alexis de Tocqueville commented on the USA’s  cash cravings, “I know of no country, indeed, where the love of money has taken a strong hold on the affections of men…”

Today I’d like to give you some facts, statistics, and ponderings on the mighty dollar.

These from the newsletter of the iconic, late Gary Halbert:

  1. More of our fantasies are about money… than sex.
  2. 90% of Americans, who own pets, buy them Christmas gifts.
  3. Money is the leading cause of disagreements in marriages.
  4. 65% of Americans would live on a deserted island all by themselves for an entire year for $1,000,000.
  5. For $10,000,000 most of us would do almost ANYTHING! Including abandoning our family and friends and our church. A very high percentage of us would, for that same amount of money, change our race or sex. And, 1 in every 14, would even murder someone for ten million bucks.
    What’s really strange about this is, the statistics remain the same whether it’s ten million dollars all the way down to three million. For three million bucks, most of us would do the same horrible things we would do for ten million. But, guess what? Few of us would do these things for a “measly” two million.
  6. 92% of us would rather be rich than find the love of our lives.
  7. Let’s flip a coin and try to guess whether it will come up heads or tails. Three times as many people guess ‘heads’ than ‘tails’.
  8. Here’s one I personally think really sucks: One out of every four Americans believe their best chance of getting rich is by playing the lottery.
  9. How about this one for a shocking fact: 5% of lottery ticket buyers buy 51% of all tickets sold. (Trust me, none of these people belong to the “Einsteins of America Society”.)
  10. A staggering 74% of us are influenced by how much we can win in a lottery as opposed to the odds of us winning.
  11. That’s a good thing for the Government because the odds of winning a lottery jackpot are about 10 million to 1.
  12. A person who drives 10 miles to buy a lottery ticket is 3 times more likely to be killed in a car accident while driving to buy the ticket… than… he is to win the jackpot.
  13. Sunday newspaper coupon inserts are the second-most read section of the paper, after the front page.

Even though we are fascinated by money, we can’t seem to hang on to it..

From Legacy Educational Resources

Personal Savings At All Time Lows

“People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago…The 2006 figure (for savings) was lower than a negative 0.4 percent in 2005 and was the poorest showing since a negative 1.5 percent savings rate in 1933 during the Depression.” (Associated Press, Feb. 5, 2007)  

What is this stuff we love so much?

From the  Digerati Life Blog-

How many times does “The United states of America” appear on a new $100 bill? The answer is twelve (two obvious appearances plus ten times around the oval). Franklin’s portrait is framed by an oval consisting of concentric rules, cross-hatching, and white space. Similar, though slightly different, ovals surround the portraits on all US bills. Using a magnifying glass, look at the outermost line of the oval. It turns out not to be a line at all but the repeated words “THE UNITED STATES OF AMERICA.”

Most people think the symbol for the US dollar is derived from the initials U and S superimposed on each other. Well this is false. It’s from the Spanish dollar sign. The US decided in 1782 that its basic unit of currency would be the Spanish dollar or peso. Its symbol was even then written as $, which was supposedly an ancient Phoenician sign indicating strength and sovereignty.

The Bureau of Engraving and Printing and is where U.S. money is made.
The Bureau prints currency on high-speed, sheet-fed rotary presses, which are capable of printing over 8,000 sheets per hour. The surface of the note feels slightly raised, while the reverse side feels slightly indented. Currency paper is composed of 25% linen and 75% cotton. Red and blue synthetic fibers of various lengths are distributed evenly throughout the paper. Prior to World War I the fibers were made of silk.

 Money it seems, does make the world go around, at least in the hearts and minds of Americans.  This week, as I transition from one aspect of life to another and work up a viable budget, I’d like to share some budgeting tips.  I am making a budget spreadsheet this weekend, and tracking my ugly debt online from this point forward. I calculated last night my medical bill debt, spread out over 13 creditors is something like $24K. Maybe your budget is off due to credit cards or other financial constraints. I’ve found some great resources to share with you regarding debt management. Let the buck stop here.
Here is an excellent link to begin your budget spreadsheet:

http://www.vertex42.com/ExcelTemplates/personal-budget-spreadsheet.html
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Being cheap is not thrifty

By leanne | August 8, 2009

For a writer, it’s exciting to see your name and your blog on a nationally syndicated, prize winning news site. This week, (August 03, 2009), Mrs. Bankrupt was featured on MSN’s Smart Money Blog, “No health insurance? No good,” regarding my three part series on health care reform, (“Sick? No insurance. No doctor. You’re screwed”). This is a financial site. And given how we oft talk about smart spending, I’d like to overlap a few issues. When counting pennies, sometimes we debt encumbered struggle with making the choice to donate to a charity. If you don’t have a lot of resources, you want use them wisely, right?

There’s another MSN Smart Money Blog I’d like to share with you today. It was pointed out to me by a reader. I, in turn, would like to share it with you.

Jim Wang, from blog site, “Bargaineering”, guest posted on MSN’s Smart Money Blog, June 17, 2009, his inflammatory blog, “Devil’s advocate: Don’t donate money to charity.” He then proceeds to list four reasons why it’s fiscally unwise to give additional “hard earned tax dollars” to these organizations when your tax dollars are already sneaking in the back door through subsidies.

Also with all respect to Mr. Wang, is his belief that these charities do not “teach a man to fish”, but instead cause the lazy to suck money out of the system by lingering in homeless shelters and soup kitchens. He suggests one alternative is to withhold money, thus forcing the homeless to find another option, (like work). (Why do I feel like I am in a Dickens novel when I look at those words?)

Two other reasons not to donate to a charity, according to Jim Wang are high administrative costs and the ease with which people give money versus physical help. Jim states, “Money is too easy.” Rather, he asserts, charitable organizations would rather have our time and effort, in lieu of money. ( I am sure he’s polled the charities of his choice for this answer).

I have a fair amount of respect for charitable organizations, having been helped by their generosity in the not so distant past, having been a volunteer myself, a financial donor, and also for producing several charitable activist children.

Here is my Angels Answer response to the Devil’s Advocate.

Angels Answer: Why donating to a charity makes sense even in a tight economy:

Subsidies from the federal government are not enough to fund all costs. Please see the recent Johns Hopkins University study, of over 360 not for profits, released June 29, 2009. “Contributing to this stress has been a perfect storm of impacts including declining revenues (51 percent of organizations); increased costs, particularly for health benefits; declining endowments; and decreased cash flow as a result of restricted credit and government payment delays”.  The full study is attached via link below. Basically, expenses are up, donations are down, and the numbers needing assistance are skyrocketing, beyond federal budget subsidies. These organizations can make it, but they do need our assistance bridging the gap.

 Teach a man to fish? Many not for profits and charitable organizations do just that by employing those they assist. The South Bend, Indiana, Homeless Shelter is a model for this, by having a step by step model for individuals to work or educate themselves out of the program. Also, most Salvation Armies, Unemployment offices, domestic violence centers, and other not for profits do employ their clients. Give a man to fish, does not mean throwing him to the wolves while clutching his fish. It means assisting him or her over a period of time, which these organizations need money to do. If we feed the homeless in soup kitchens, but never teach them life skills, we are shorting humanity itself. And teaching job skills IS what many of these organizations are doing.

 Administrative costs are necessary. How many pastors could preach and feed their families without a salary? Would you like to run a crisis pregnancy center or a homeless shelter with no pay?  It’s my guess that these salaries are for the most part, significantly low already, without a fiscal ax being implemented by the public. These are to a degree businesses. They are in the business of helping others. As such, they do have operating costs, like it or not.

 Helping hands don’t take care of  all expenses. Mr. Wang asserts that helping is more needed by these organizations than dollars. “Money is too easy.” I attest charities need both. My local Boys and Girls Club purchases over a thousand book bags, complete with supplies at school time. By purchasing in bulk, the BGC makes the donation money stretch further. These organizations need both cash and helping hands. Frankly most organizations these days probably need mass quantities of each.

 Give how you can, folks. Whether it’s your time or your money, but realize the impact you have in generosity. There are many times I embrace the inner tightwad. Donations to charities are not included in that thought process. Sorry Mr. Wang. I’ll back you on bargaining and being thrifty, but not in this “revisitation of Scrooge” venture.

You can read the Devils Advocate by following this link:

 http://blogs.moneycentral.msn.com/smartspending/archive/2009/06/17/devil-s-advocate-don-t-donate-money-to-charity.aspx

“Perfect Storm” of Fiscal Stress Hits Nonprofits

Johns Hopkins University

June 29, 2009

 http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=922

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Giving credit to the credit challenged

By leanne | August 8, 2009

While some people call it, “bad credit,” I prefer the kinder, gentler term, “credit challenged”.  I feel it’s somewhat politically incorrect to label those with scores dipping off the credit bureaus charts with such a negative connotation. What’s truly “bad”, however, are the companies who take advantage of the credit struggling folk out there.  Yes, somehow, some way, we’ve dropped the credit ball. That much is true. But still I feel rather protective of those in the ranks.

In light of this, I’d like to continue my series on credit cards for the credit challenged.

Personally, I own an unsecured card for poor credit, such as I am relating today. I have a First Premier Mastercard, in fact.

Do these unsecured cards take advantage of debtors? The simple answer to that is, “No.” You don’t have to own one. But if you do, be sure to pay attention to fees. Otherwise, you’ll feel taken advantage of. (And feelings, as my therapist reminds me, are our reality)

There are numerous unsecured cards for “bad credit”.

Here’s how they work:

You apply via internet application. The card arrives within a short time in the mail. Characteristically, even the nearly terrible debtor can get one. There is usually rejoicing and hallelujahs on the part of the debtor, over being trusted with a credit card by a financial institution. (OMG! Someone actually gave me credit!)

The card costs a onetime “startup fee” of $150.00- $175.00 just to activate it. Bad credit cards typically carry a $300.00 line of available initial credit. Via activation you’ve eaten up half or more of the card’s credit line. That is just where the fun starts. READ the fine print to discover how to make payments. These cards will insert a reason to charge you for just about anything. Most will even charge you to make payments. Read that part of your agreement carefully. I’ve been dinged with seven dollar fees for calling to make a payment, paying with a check, etc. Once, I am sure, I was charged for wearing the wrong color when I made a payment, because I got fined but never came up with another reason. (First Premier took that unknown charge off my bill, btw).

Other fees to watch for:

  • late fees( of course)
  • overlimit fees (which can happen when maximum balance + finance charge + late payment intersect)

Why do I have one of these costly items? I travel a significant amount of time for work. It’s nearly impossible to rent a car without a traditional credit card.  Likewise, hotel rooms will often place a temporary hold on your account if you use a debit card. I’ve had these holds lock up over $300.00 of my “real” cash in the bank for up to thirty days. Not having a few hundred dollars when you depend on it is painful.  Having a credit card in my situation is not only desired, it’s required.  

Clearly you may have your own reasons for wanting an unsecured card.

If you opt for obtaining one, here are some suggestions:

  1. Plan on high fees to activate. Read policies. Once you activate the card, pay it off in full. Immediately. Having a credit card that’s nearly full dings your credit bureau report.
  2. Read the information on how to make a payment without fees. You don’t want to spend $100.00 a year (or more) just to make payments, do you?
  3. Review company information for complete understanding of late fees, interest, time frame payments take to apply, (yes, I got stuck once on that too, when a payment didn’t post till after the due date, and sent me into overlimit fees)
  4. Pay the card off in full each month.

To summarize, these “bad credit” unsecured card companies take a risk lending you credit. And they offset some of that risk by charging you upfront and in many and various ways. You can offset that cost by being aware of fees and paying off the activation fee in full, along with new purchases in full every month. You won’t feel taken advantage of and your credit rating will not take a ding.

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$chooltime i$ here

By leanne | August 4, 2009

Taking a breather on credit card surveys for a minute, just to relate a few items from real life/real debt issues of this half crazy mother.  As this is a finance blog it seems appropriate to add in the school issues that prevail each year. I know budgets for everyone, including schools are tight.  For us single moms (or dads) struggling to pay our bills, there are two words that strike fear in our hearts- School Registration.

The dollar signs begin wafting through the air late in july, when the local schools release their lists of required supplies.  Kleenex? 3 Boxes a kid? Apparently the schools don’t care about the environment and should replace that purchase with the eco friendly handkerchief or shirt sleeves for that matter. Most primary kids I see are quite proficient with sleeves.  My theory is, “Why fight nature”?  Some kids even allow snot to dangle off their chins to save on sleeves. What a concept.

Then there’s binders.  Lots of choices there. Big, little, striped, polka dots, rock stars, pockets, etc.  Some classes require one for each subject. Ever try choosing these with girls who want everything to coordinate? AGGH. I need Valium and ample quanties of grain liquor for the prospect.  Plus a heck of alot of cash, as these suckers cost upwards of ten bucks.  Not only do I get the pleasure of going insane, I get to pay for it too…

Only a fifth of my kids has ever known what a  binder is used for. The rest have discovered  other more creative means to store homework and notes. They’ve employed under the bed, closet floors, jacket pockets  and socks to house information.   A  few refused to use paper and wrote notes on available body parts. Once a child came home with an entire geometry lesson written in permanent maker on her arm.  She used three colors. I toyed with decorating her instead of a tree at Christmas, due to the prevailing green and red diagrams.

I have brainiacs for kids. I ‘m never sorry, except when it comes to registration. Pre-calculus calculators. Retail cost $156.00???? What??? I had a melt down in the school office.  According to her Calculus teacher, toes and fingers are not effective  means to perform advanced math. Tell that to the ancient Egyptians who built a few pyramids that we still don’t (even with $156.00 calculators ) understand the means of construction. They were both creative and cheap.

 This same whiz kid also signed up for photography.  Quote: “Parents will be pleased to know 35mm cameras are available to rent for only $153.00″….. You get a hundred bucks back when you return them, but still????  Can’t we just use the cell phone I am paying for to snap a few pics??? You can do alot with Photoshop and shoddy photos. The National Enquirer routinely has added or taken a few hundred pounds off celebrities by employing such methods. Can’t my kid just get by?

Next stop, my youngest daughters registration. We had a wait time of 40 minutes just to get to the promised land of the registration table.  There it was determined, she needed shots and a sports physical for school and cross country. Eying her, I determined she looked fit to me. The last time I mentioned washing dishes she vanished like a shot, running a 4 minute mile dead from a standing position. I assume she will still be required to take a physical, in spite of this. There will of course be cross country shoes. $$$

I used to give my dog shots, and am contemplating if the pet supply store has a variety I can use on my child. In dog years, the pooch is 65 and he’s done fine with my immunizations.

There were art supplies at $38.00 and a lab fee $12.00 and God knows what else in the way of clothing. My son was easy on this part. He was fine with the same pair of jeans and two concert T-shirts for a whole year. The girls lament the fifty pairs of jeans and 200 shoes as “nothing to wear” and no matter what I buy, they will still steal my own clothing to wear on a regular basis….

I still don’t understand why we have to pay to rent textbooks either.  In college you buy the books. College kids either can keep them for later use or sell them for a six pack to another student. You could at least have a frat party out of the proceeds from textbooks. I am all for education, but not for the financial depletion of capital.  Did Abe Lincoln need a $156.00 calculator? Seems like he was pretty smart. 

Alas , I emptied my wallet and had my routine fit at school registration anyway. For simpler times! I miss the days when a cardboard box was a month of education and entertainment for my kids….

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PrePaid is pretty ok…

By leanne | July 30, 2009

Prepaid cards…. a study in “Why Would You Do This???”

Wait! I forgot! It’s because we’ve all got a few credit issues and this is but one option..(you can tell it’s not my favorite choice, can’t you??)

It’s the beginning of my series this week on credit cards for the credit challenged and we’re starting with my last choice and working toward the best option later in the week.

Actually, before I lapse on here,  there are a few good things about these pre-pays. The one I am recommending come with my tightwad approval. What exactly is a pre-paid card? It’s a card you pre load with money, unlike a debit card which is only attached to a specific bank account, like your checking account.  Why are they a tolerable option?

low fees. Most credit cards charge an arm and a leg and your first kid, for anything plastic extended to the credit challenged… not so with these pre-paid cards.  Although there are better choices among them. Don’t buy a pre-paid card if you can help it at one of the retailers, like Wal-Mart or CVS. Often those are the kind that charge you for loading, charge for reloading, charge you to check your balance …etc.  Try this one, The Wired Plastic  Prepaid Visa Card.  Low, low fees.

options- The reasons I actually love that Wired Plastic, mentioned above is for it’s flexible pricing,  it has a rewards program and more card loading options than you have money to load it with.  If you do look at getting a pre-paid card, read the fine print. Many of these charge you if you make a payment online versus at a retailer, or by phone. Wired Plastic has free-direct deposit, bank transfers, Instant cash loading at a whopping 100K plus retailers.

free stuff-  One more reason to more than tolerate this pre-paid card, is its free customer service, ability to schedule monthly bills to transfer from the card automatically and yes… one more item worth mentioning- this little bit ‘o plastic has Personal Pay, which allows you to use the card like a check and send money…zap…electronically…  (which takes all the fun out of overdrafting yourself writing checks)…

If you opt for any pre-paid card,  read the fine, fine print!!! Do not assume because you’ve loaded cash, there are no charges. Most prepaid cards charge monthly fees.. so watch fees, read the print and use the card as it’s supposed to be used. (i.e. pick a card with low fees, and make payments via whatever preferred method to save on charges)…

By the way, those of you not familar with Blog Carnivals, should check out the Money Hacks carnival, hosted by “My Life Roi” …check it out for the greatest of blogs on money this week… (hey, we’re on there, too- it’s gotta be good)

http://www.myliferoi.com/2009/07/money-hacks-carnival-75-get-job-edition/

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A walk through credit for the credit challenged

By leanne | July 28, 2009

This week, I’d like to do a four part series on credit for the credit challenged. There are too many sites that offer misleading and costly information regarding credit cards.

What is a secured credit card? What are the benefits?
Most people do not know their actually one of the best choices for improving your credit and least costly.
How do they work? How do you get one? What are the choices on secured cards?

How about pre-paid cards? What are they and why do people use them? Are they a good choice?
What’s the cost?

Then there’s those unsecured, “bad credit” cards we all seem to be flooded with offers on, what (if any) are the benefits? What do those cost in the way of finance?
Are they a good choice?

Why shouldn’t you use a debit card for all your purchases?

Being informed on these areas can save you a signficant amount of money and in some cases improve credit.

This week, for the benefit of those who follow here, I’d like to give a walk through the land of obtaining credit cards the credit challenged way. (And the smart way, too)

There are things we can learn about these cards that can save us money- and who of us doesn’t need a little more of that these days?

Each of the following days of the week, I’d like to take on of the above cards and go through in detail the companies available, the pros and cons, credit ramifications and cost, (including hidden cost). Were you aware that two types of those cards charges you to make payments???  (up to ten dollars a payment in some cases).

Be smarter and credit wise! Our goal this week!

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No Insurance. No Doctor. You’re Screwed. (Part 3)

By leanne | July 25, 2009

This is the third and final part of my first hand health care saga I’ve been relating this week. 

I am not revisiting the whole ordeal again. If you want to read in detail, flip through the last two blogs. Get kleenex before you do, because in my opinion, the US Health Care System is in a sad state of shambles. 

 I think it’s important to understand my story, because it’s one of a 46 million piece puzzle.
Obviously due to medical bills, my own credit went south, (way south, as in subterranean).

Again, if I were just one person facing this alone, it would mean nothing more than a bit of information to file away. I’m not. There are 46 million others out there with similar histories.

This army of uninsured represents a sea of individuals who did not  (or could not)  most likely, contribute widely to boosting the economy via spending and purchases.

 I know I’d rather have been buying a home and purchasing items for it, hiring contractors, etc. than taking time off work to appear in court to grovel over not being able to pay my medical bills.

 Health care is a business. Like most businesses, if they have a significant number of individuals who default on debt or are slow paying, the business must pass costs on to everyone.  All those attorney fees paid by hospitals, to collect from folks like me, come from someone’s pocket.  Yeah, I know, they can “write it off”… (Actually Medicaid reimburses for some of that as well).
But the truth be told, if a business isn’t making a profit, it has to take steps to increase profit elsewhere. We see that today in the rising costs of health care, understaffed hospitals, increased out of pocket insurance, and inflated drug prices.

Here’s the stats on those other uninsured and how they influence the economy and the health care of the nation.

Please read them carefully, I think you’ll be shocked:

Nearly 46 million Americans, or 18 percent of the population under the age of 65, were without health insurance in 2007, the latest government data available.

The large majority of the uninsured (80 percent) are native or naturalized citizens.

Nearly 90 million people – about one-third of the population below the age of 65 spent a portion of either 2006 or 2007 without health coverage.

Over 8 in 10 uninsured people come from working families – almost 70 percent from families with one or more full-time workers and 11 percent from families with part-time workers.

In 2007, 37 million workers were uninsured because not all businesses offer health benefits, not all workers qualify for coverage and many employees cannot afford their share of the health insurance premium even when coverage is at their fingertips.

The number of uninsured children in 2007 was 8.1 million – or 10.7 percent of all children in the U.S.

Young adults (18-to-24 years old) remained the least likely of any age group to have health insurance in 2007 – 28.1 percent of this group did not have health insurance.

Nearly 40 percent of the uninsured population reside in households that earn $50,000 or more.

 A growing number of middle-income families cannot afford health insurance payments even when coverage is offered by their employers.
Millions of workers don’t have the opportunity to get health coverage. A third of firms in the U.S. did not offer coverage in 2007.
Nearly two-fifths (38 percent) of all workers are employed in smaller businesses, where less than two-thirds of firms now offer health benefits to their employees.

It is estimated that 266,000 companies dropped their health coverage between 2000-2005 and 90 percent of those firms have less than 25 employees.
Even if employees are offered coverage on the job, they can’t always afford their portion of the premium. Employee spending for health insurance coverage (employee’s share of family coverage) has increased 120 percent between 2000 and 2006.

Losing a job, or quitting voluntarily, can mean losing affordable coverage – not only for the worker but also for their entire family. Only seven (7) percent of the unemployed can afford to pay for COBRA health insurance – the continuation of group coverage offered by their former employers. Premiums for this coverage average almost $700 a month for family coverage and $250 for individual coverage, a very high price given the average $1,100 monthly unemployment check

 About 20 percent of the uninsured (vs. three percent of those with coverage) say their usual source of care is the emergency room.
Studies estimate that the number of excess deaths among uninsured adults age 25-64 is in the range of 18,000 a year. This mortality figure is more than the number of deaths from diabetes (17,500) within the same age group.
According to one study, over a third of the uninsured have problems paying medical bills.The unpaid bills were substantial enough that many had been turned over to collection agencies – and nearly a quarter of the uninsured adults said they had changed their way of life significantly to pay medical bills.

The uninsured are increasingly paying “up front” — before services will be rendered. When they are unable to pay the full medical bill in cash at the time of service, they can be turned away except in life-threatening circumstances.  

So, you see, Health Care is everyone’s concern. Even if you have insurance-we who are uninsured or who rack up huge medical bills, affect the entire nation. We affect you, your income, and your own insurance and medical benefits. And you are paying for us now, even without Universal Health Care. This is why some project Universal Health Care might save us money. I doubt that, but this is the data it’s based on. Either way- health care does need reform. A significant portion of my readers, are here because they seek credit help, due to medical bills.

 What additional costs are created by the uninsured population?

  • The United States spends nearly $100 billion per year to provide uninsured residents with health services, often for preventable diseases or diseases that physicians could treat more efficiently with earlier diagnosis.
  • Hospitals provide about $34 billion worth of uncompensated care a year.
  • Another $37 billion is paid by private and public payers for health services for the uninsured and $26 billion is paid out-of-pocket by those who lack coverage.
  • The uninsured are 30 to 50 percent more likely to be hospitalized for an avoidable condition, with the average cost of an avoidable hospital stayed estimated to be about $3,300.
  • The increasing reliance of the uninsured on the emergency department has serious economic implications, since the cost of treating patients is higher in the emergency department than in other outpatient clinics and medical practices.
  • A study found that 29 percent of people who had health insurance were “underinsured” with coverage so meager they often postponed medical care because of costs.
  •  Nearly 50 percent overall, and 43 percent of people with health coverage, said they were “somewhat” to “completely” unprepared to cope with a costly medical emergency over the coming year.

Just fiscal food for thought, folks.

Sources: http://www.nchc.org/facts/coverage.shtml

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No insurance. No doctor. You’re screwed. (part 2)

By leanne | July 23, 2009

This is part two in a series I am doing this week on health care reform, from a personal viewpoint. Given the fact that I’ve lost a home, ruined my credit and spent ten years being turned away from mainstream medical care, due to not having health insurance, I have some input to lend here.

Let me recap my story briefly:  A decade ago, I had a stage 3 cancer. Our business failed. The health insurance was not able to be maintained.  I got divorced shortly after my cancer went into remission, leaving me with hundreds of thousands of dollars of business debt, medical bills and five small children, zero insurance, and no job. (Read yesterday’s story or the tab here, “Who is Mrs. Bankrupt Anyway” for the ugly details). I cleaned offices at night to go to college and take care of my kids because it paid well, and I didn’t have to pay childcare. But I also was unable to get any sort of Medicaid, nor was I able to afford insurance with premiums in excess of $700.00 a month. 

In that short paragraph, I’ve just summarized countless tears, chronic depression and pain, folks.

 Try telling your kids how glad you are to be cancer free and in nearly the same breath, add,  ”We’re losing our house, children.”  It’s rather difficult to be as cheerful as you’d like. 

With 144 creditors, and in excess of 350K  (nearly all of them medical bill related), it was only a matter of time before my 70K home was attached with liens. I struggled to pay anything. I was constantly getting hauled into court for judgements. 

I’ve been told a thousand times by people, “As long as you pay $10.oo a month, no creditor can do anything to you”.  (  A giant LOL to that!)

Wrong. Wake up and smell the health care coffee, people. 

 Since most hospitals are not privately owned, they are not  likely to cut you a deal.

 Generally hospitals require you to pay off balances in full within a year, or the account is turned over to collections. Collections in turn adds a fee, charges interest, and typically files judgements and requires you to appear in court every few months, even if you can’t pay anything at all. I am convinced if they saved all that attorney money, it would cut all our medical bills in half.

It’s rather humilating to stand before the judge, month after month, and relate that you are working, but too poor too pay anything more because you had too many creditors to divide up your income by.

At even $10 per creditor a month, given the number of creditors, I was looking at  payments of $1,440.00 to medical bills alone, plus other expenses related to raising five kids, housing, etc. (And incidentally that was more than I was earning a few months).

What’s it like to be uninsured for a decade and have chronic health issues? Can a doctor refuse to treat you? Aren’t there places to obtain medical care?

Being uninsured for a healthy person is, I am sure, difficult. Being uninsured for a person who needs 10K a year in scans, blood work, thyroid medicine, and has a low immune system is beyond difficult.

Those who have health insurance, if they need medication simply see the doctor, obtain script, fill script. 

  • Average cost, to see physician, with insurance- $30.00
  • Average cost medication with insurance, $20.00

Those without health insurance, here’s what it looks like:

Step one: Find a doctor who will treat you with no insurance. Call 15 offices. If you owe any of the hospitals attached to the doctors office, you must pay a payment to the hospital and pay physician in full. (If they will see you).

  • Average cost of primary care physician w/o insurance- $ 125.00 Specialist average cost- $200 and up.
  • Average minimum cost of payment to hospital before seeing physician- $50.00- $100.00
  • Average cost of prescription w/0 insurance- $20-50.00 or higher

This of course, is IF a doctor will see you without insurance. Suddenly, doctors advertising  for new patients in newspapers are, “no longer taking patients” when I’ve called.  That happened to me three times.  

Another time, an oncologist who saw me only after being begged by a friend, gave me a whole five minutes of his time. He told me to go home and wait with a lump on my neck for six months and then he would, “See if we needed tests.”

If you look at the American Cancer Societies guidelines, (especially for a two time cancer patient), they suggest any suspicious lump be biopsied after a few weeks. 

And several physicians ask that you “pre-pay” before they even see you, and with cash. (As if they assume low-life humans with medical bills also must bounce checks, too).

Try tossing in eye exams, contacts or glasses. (Add a few extra hundred bucks a year).

Heaven help you if you need to visit, (gasp), a DENTIST. There you can hope to get away with $500.00 by the time they do x-rays, cleaning, visit.  If you need more than that, odd’s are you can’t afford it. Break a tooth? Have a cavity? Better pray you win the lottery, cause you will add at least several hundred dollars, if not thousands.

I’ve been to the dentist twice in ten years. And I wear 30 day contacts for four – six months these days to delay out the costs. I take left over anti-biotics from friends, or ones that my kids are allergic to. Once I took anti-biotics a vet gave my dog. I am serious.

This lack of health care and debt becomes a self propogating cycle, too.

I have had to resort to going to the ER, (which only incurred yet more costs) but could not afford the cash out of my pocket, when I had pnemonia to see a primary care physician. That particular visit, I needed an X-ray, anti-biotics, and an exam. I had a 103 temp and couldn’t breathe. The only physician who could have seen me, would have charged $125.00 for a visit and an extra $125.00 for a chest x-ray.  Anti-biotics would have added an extra $75.00.

Some how I didn’t remember to have an extra $325.00 laying around when I got ill that day with pnemonia.

Lately, I am really thrilled to have found a doctor who thumbs his nose at conventional health care pricing and actually sees me at a much reduced price. I am thinking of calling the Catholic church to have him cannonized. If there is anyone we should contemplate cloning it might be him. But it took me seven years to find this doc. And it doesn’t solve the issue of tests, scans, medication or anything really exciting like mammograms. I’d kiss the ground of a dentist who’d see me for cheap too.

Tomorrow, I’d like to talk about what happens from this point to credit, after the fall of medicial bills has hit and you are deep in the winter of debt. I’d like to to give you the side of  what not having health care has cost this mom of five, and what it costs society. There’s another side to this picture of health care. That will be my final part of the Health Care saga. You’ll either be thrilled or enlightened or enraged, I am sure, when I’m done.

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Sick? No Insurance. No Doctor. You’re screwed. (Part 1)

By leanne | July 22, 2009

What’s it like to be ill and be turned away by a doctor? How about needing checkups, medication, scans or mammograms when you can’t find a health care facility to treat you? 

This week, I’d like to take you on a walk in the shoes of those who have no health care. I am one of those huddled masses. I grow weary of hearing Washington give their advice on a topic few of them have experienced. Walk in my shoes for a decade without health care and you can offer an informed opinion.

In light of recent health care reform legislation, I thought I’d give my side of this, or rather that of the estimated 46 million Americans who do not have insurance. I am not a politician. Likewise, I’m not sure America needs my humble opinion how to fix the problem. 

But there is a health care crisis.  And a very real problem exists. I am pretty sure we all agree on some varient of that.

This site, by virtue of its name, is a budgeting spot. Medical bills play an important part in debt management. If you are blessed to have health insurance, this may give you a bit of insight into a topic congress and CNN are force feeding the public.

How did I become uninsured?

About a decade ago, our family business went under. I was in the process of chemo and radiation. When the company died a slow and painful death, it took with it my insurance coverage. (For a better synapse, read the tab here, “Who is Mrs. Bankrupt?”).

Post divorce, based on my child support of $1000.00 a month, and the work I picked up cleaning offices while I went to college, I made too much for Medicaid, and too little for being able to afford insurance. Nearly all the unenlightened told me about the “can’t turn you down” program my state offered. Based on two kinds of cancer, two life threatening blood clots, and a latent heart problem, my “Can’t-Turn-You-Down” premium was $774.00 a month AND covered NO preventative care (like the very scans I needed to track any reoccurrences).

No folks, the insurance company didn’t turn me down, they just made it so that no one but Donald Trump could afford the premium. 

By the way, Medicaid’s income threshold today for a family of two is that you must not exceed $19,378.00.  At that time, and always through this decade, I have been above their guidelines. You’d about have to be just to put a roof over your head and those of your family.

 In other not so nice words, “You’re screwed if you work and want Medicaid.” 

And, if you have any medical history at all, it’s likely you can’t afford the premiums from insurance. 

See the lovely paragraph below, copied straight from Medicaid’s website-

“There are many people who are poor, with incomes below the poverty level, who do not meet Medicaid requirements because they do not fit within the designated eligibility groups.  

  Based on 2009 Federal Poverty Guidelines, a family of two would need an income less than $19, 378 to qualify for Medicaid assistance”. DID YOU CATCH THAT? “THERE ARE MANY POOR PEOPLE WHO DON’T QUALIFY?”

 We have a crisis born of inflated medications, overpriced services and doctors who have been forced to sell their souls in order to practice. 

 

Why didn’t I just get a normal job that offered insurance?

There were numerous reasons. With five small kids still at home, childcare would have eaten up my wages. (At a ten dollar an hour job, I would have netted roughly $360.00. Childcare for five kids in community was around 200.00 plus dollars a week, back then. I was reasonably certain we could not live on $160.00 a week and child support).

Without a degree, and having my only work experience being with a now defunct company, my income prospects were poor.  I started my own office and new construction cleaning service because it allowed me to be with the children much of the time and work flexible hours so I could attend college. Cleaning paid better than any other job I could find at that time. A lot better. 

I was no slug, feeding off the system, folks.

But damn, did I feel it when I had to go to the doctor.  

 Tomorrow and throughout this week, I’d like to talk about what it’s like to not be able to get medical treatment, what it cost me in the way of finances & why I lost a house  over medical bills.

 I want to hear from you this week if you have input on health care. (or lack of it).

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Jennifer Enterprises- A Woman’s Work-at-Home Success Story

By leanne | July 19, 2009

Recently, I opened my blog by asking for those with real home businesses to give me some input. I’d like to take some time to review a few of these in the next couple of weeks. Home business opportunities are a highly searched item. It seems like everyone is looking for a side job, worrying about holding onto the one they have, or in need of some extra cash.

Working at home can be a viable avenue to satisfy these means. As a budget happy woman, I myself seek these out. Taking time to sort the duds and scams from the honest income providers is a true feat. Don’t we all have a ton of emails offering, “get rich quick” and “make a hundred dollars an hour” constantly flooding our inbox?

As Mrs. Bankrupt, I have a particular affinity for women’s businesses. It’s a doggy dog world out there- Hats off to the female entrepreneurs who shatter the glass ceiling, one pane at a time.

I don’t personally endorse any of these upcoming companies here, but offer them to you as potential income generators that may work for you, as they do others.

I am taking the time to sort them for you, instead of my readers filtering one by one through their inbox and making countless Google searches.

Today I’d like to introduce a young woman who is making it on her own. With a home business that is providing for her and flourishing to boot, she’s on track to making it by working from home.

For my first, work-at-home entrepreneur, here’s Jennifer Schaefer, with “Jennifer Enterprises”. I first met Jennifer on a Twitter feed, where I misread her tweet initially. (My fault, it’s the over forty eyes again). She had tweeted what I thought was, “Underpaid and overworked”. My first comment to her in the allotted 160 Twitter characters was, “I understand, sorry it’s rough for you.” I really took notice when I received a direct message back, “You read that wrong, my status is, Overpaid and under worked.” Now Ms. Schaefer had my full attention. I think you will enjoy her work-at-home story and find it inspiring.

What led you to a home business, Jennifer?

My name is Jennifer Schaefer and I am a young, single woman who attempted the college track right out of high school. My life took a turn and I ended up leaving my parents’ place. I wasn’t ready for it but I still managed to find a full-time job. Being young, I was ill-equipped for life and decided that school was more important. I quit my full time job in hopes I would find a part-time job to pay the bills while I was in school. That didn’t happen.

Then my aunt introduced me to a company where I would work part-time or full-time from home. I was a little skeptical at first because there were a lot of scams popping up with work-at-home benefits. She assured me that it wasn’t and gave me all the facts.

I opened my own store, with Amway Global, to satisfy my income needs and I am thrilled at its success.

Can you share some background on Amway Global and their history?

Here is a brief History synopsis.

Back in the 1950s, Rich DeVos and Jay Van Andel were sales reps for a vitamin company called Nutrilite®. They envisioned an even better sales and marketing plan, however, and created a little company called Amway to set it into motion. Working with a core group of Independent Business Owners (IBOs), they provided a new opportunity to people in the U.S., Canada, and, today, more than 3 million entrepreneurs around the world.

I am proud to say that Amway Global* is the number-one online retailer in the Health & Beauty category based on sales, and 22nd among all e-commerce sites, according to Internet Retailer magazines Top 500 Guide.

What do you personally like about the company, Jennifer?

I really enjoy the business opportunity featuring:

• An industry-leading compensation plan.

• High-quality products.

• Experienced support from an industry leader.

• The community and support you receive.

At Amway Global, we believe that the proper use and management of the earth’s resources are the responsibilities of industry and individuals alike. After all, alone we can do so little. Together, we can do so much. I enjoy learning more about our environmental stewardship and being a part of it.

 So let’s get to the nuts and bolts of it, how do you make money?

The easiest way I found to make money is to buy from myself. Instead of running to Wal-Mart or Target, I would purchase from my own store- Jennifer Enterprises. Each product has a “point value” and by getting more points Amway gives you a bonus check. A bigger check comes when you achieve a higher “point value.”

There is also the benefit of being able to buy at wholesale and sell at retail. Another way I earn income is by gaining customers who buy from my store, which gets more points.

A lot of people do this with cash back credit cards or reward points, Jennifer. It’s a similar approach isn’t it?

Yes, exactly. I like the products and would buy them without being a part of Amway. Adding points and bonus checks for items I would normally purchase is a great way to earn money. One of my favorites is the XS Energy drink. 8 calories a can, no carbs, no sugar, and it provides awesome energy. The SA8 laundry detergent is wonderful as well. 1 tablespoon completely cleans an entire large load of laundry!

Can this be a viable means to earn a full time income? What are the income prospects?

I personally know several people who have succeeded with Amway Global. I couple I know haven’t worked a day in 15 years at a traditional job! As for me, I’m looking forward to making the money to go to school, get my Interior Design degree, open my own firm, and not have to worry about getting enough income to make my business work.

Is the market saturated or is there room for growth?

The income is wide open, with plenty of room for growth. I am looking to help other people achieve financial freedom by working for themselves. Physical location does not matter as this works for anyone, anywhere.

Thank you, Jennifer, for sharing with us your small business, work-at-home story.

To hear more about this opportunity, contact Jennifer @ jennie4888@ymail.com or through her online site, Jennifer Enterprises- http://www.wix.com/Jennie4888/Jennifer-Enterprises

More in coming blogs about other work-at-home opportunities!

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