Saturday, July 27, 2013

How Obama affect medical debt in America

For people in America, seeking medical debt relief has become a grave matter. This is represented by the statistics which show that about 80% of bankruptcies filed every year are due to medical debt. The high cost of health insurance has left millions without proper access to medical care. Organizations are formed to help people become more aware of their options in helping lower their medical debt.

The Obama government has sought to remedy this scenario by passing the Patient Protection and Affordable Care Act into law. This law has been the subject of controversy as people are unsure of how it will affect medical debt in America. Here is a breakdown of its positive effect:

• It is going to reduce medical debt by allowing children to remain on their parent’s medical cover until they are twenty seven. The employment and insurance markets are not kind to fresh graduates. Expensive medical covers financially strain them and start them on the path to medical debt. By increasing the age, this Act will allow children to remain covered until they are financially stable.
• This Act has placed important focus on preventative measures for health. The reason medical debt has spiraled so out of control has been that the focus has been placed on treatment which is costlier. By lowering the cost of regular medical checkups and health screening for certain diseases, the prevalence rates are going to reduce. This reduces the pressure placed on the medical industry to provide services and the insurance industry to provide cover. The end result is that by reducing the strain on the health sector the overall cost of medical care is going to come down.
• Large scale employers will be expected to provide medical cover for their employees. The insurance companies have also been forced to make certain aspects of medical cover standard such as prescription medicine. When these two are combined, the costs for accessing medical care will be massively reduced.
• Limitations on lifetime benefits have been lifted and this will allow the average American to access medical cover at a lower cost. This will also increase the number of people who have access to medical cover.
• The Act has outlined a standard insurance policy that is intended to govern the most important aspects of medical care. It has also placed guidelines that are designed to ensure strict compliance. This is going to bring down the cost of medical care for the American population.

From the above it is evident that contrary to detractor opinions, Obama may be very good for medical debt. This Act is designed to reduce the number of medically instigated bankruptcies in America while making sure that access to medical care is universal.

Monday, July 01, 2013

How to Get Money for An Emergency

Recently I was discussing personal finance issues with a group of friends that happen to be single moms.  Most of them live from paycheck to paycheck.  When you are on such a tight budget, unexpected expenses can really send you into a deep hole.  See, what many people don't understand is this.  Not everyone has parent(s) that can help them financially when emergencies occur.  I still remember my old boss at Head Start.  She came from an upper class family.  Attended a prestigious boarding school, etc.  I went to her to see if she could suggest a resource for a family who's car had completely broke down she shocked me with her reply.  "Why can't they just use their emergency fund?  Can't they just ask their parents or other family members to pay for it?" I realized that there are a lot of people that really don't understand the poor.  Poor people don't have rich parents that can pay for their college tuition, car repairs, weddings, etc.  I know exactly how my clients felt.  I have lived through it.

When you face an financial emergency and you don't have many options, there are very few solutions.  Here's an example.  One year, I was on time with all my bills and very happy about it.  Then I went to the car and I had a flat.  Not the kind of flat that can be plugged.  I needed a new tire and I didn't have the money.  What can you do?

A few things you can do is sell some stuff on facebook, take some metal to a scrap yard, sell your jewelry or find a way to borrow the money.

Here's the problem with borrowing the money.

  • Not too many places make loans for small amounts of money.  
  • You need good credit.  
  • They usually require a job.  

I found one that does and I wanted to share it.  Rapid Title Loans  are available in the state of Florida.   They give you a cash loan that is not based on your credit, but on the equity of your car, your employment and your residence history.  The auto title loan application is pretty short.  Loans are for 12 months and the interest is as low as 1.50% per month as long as their is an outstanding balance.  I don't recommend that anyone take a loan unless it is absolutely necessary.  Debt is debt.  However, there are times that you need access to cash to pay for unexpected events like car repairs, home repairs or even loss of employment due to an accident.

I'm glad to know that these type of loans exist.  It is helpful to know there are resources that can help in case of an emergency.