A car accident has immediate financial effects. Some hospitals will not even evaluate a person without a deposit. Hospitals do not provide information about how much treatment will cost. In an emergency situation, an accident victim may have no choice, even if it spells financial disaster. There are three tips on surviving financially after a car accident.
Loans may be another option to pay for your medical bills after a car accident. A personal loan through a credit union or a cash advance from your credit card company might help you stave off bankruptcy. Loans could also help you avoid dealing with providers who refuse to deliver any additional medical services until you are current with your account. Keep track of any loans or other debts that you make and include those in your negotiations with insurers.
Personal Injury Claim
Depending on the circumstances of your accident you might be able to file a personal injury claim to receive compensation for suffering caused by the accident. If you are less than 50 percent at fault for the accident, you may be eligible to file a claim for pain and suffering in addition to compensation or payment of your medical costs. Some states limit the amount of money that you can get for suffering during the recovery of an accident, but it is worth consulting a lawyer to find out the details for your situation.
Use Your Insurance Benefits
If you have health insurance, use those benefits while you wait for funds from a personal injury claim. A court case could take one year or longer, and the bills will roll in well before then. Also, consider your auto insurance coverage. If you have MedPay or PIP insurance on your auto policy, then that coverage may help you pay for the initial out-of-pocket medical costs that you incur. You may also want to consider the insurance of the other driver. Their insurance may also pay for some of your medical expenses until you find out about a personal injury claim settlement.
How you immediately respond to a car accident will affect the rest of what happens after. It is also important for an accident victim to hire a lawyer as soon as possible. The lawyer may be able to provide physicians, hospitals and rehabilitation centers with documentation of the pending litigation. Many lawyers also help accident victims with negotiating their bills to a level that will be covered by a settlement.
Here are four steps to take today to spruce up your money management process and get yourself on the path to financial health.
(BPT) - Are you feeling good about your finances? Or do phrases like “account balance,” “credit score” and “retirement savings” give you a twinge of anxiety?
Don’t worry, you’re in good company. Only 24 percent of millennials have basic financial literacy, according to the National Endowment for Financial Education. When it comes to getting their financial house in order, most millennials would prefer not to set foot in that proverbial house in the first place. Getting yourself out of debt and building enough savings to cover your expenses in an emergency is a marathon, not a sprint. Small, incremental changes in your financial habits today can make a big difference in your financial health months or even years from now.
Take these steps today to spruce up your money management process and get yourself on the path to financial health.
* Check your credit score. Before you start the work of realigning your finances, you should check your credit score and review your credit report. It helps to know where you stand financially, and the good news is, even if your credit score is not as high as you’d like it to be, you can take steps to improve it. Establishing a history of on-time payments and maintaining a healthy credit utilization ratio are two things that could improve your credit score quickly. One way to access your credit score without any cost is to find out if your bank or lender offers your VantageScore through their website.
* Knock down your debt. Track down all your accounts — checking, savings, investment, credit cards and other loans — and do the math to find out your net worth. That’s your benchmark to help you track your progress. In the beginning, the truth can hurt, however, knowing how much you have in savings and knowing how much you owe gives you a valuable blueprint for where you need to direct your energy. From there, put together a household budget, and figure out where you can trim expenses, so you can pay ahead on your debts, one account at a time.
* Automate your savings. You’re much more likely to accumulate savings when you make the decision once and let the rest happen automatically. Log onto your bank account and set up an automatic transfer from checking to savings, starting with a small amount, preferably timed with your regular pay day. If you can manage to set aside $85 a month, in a year’s time, you’ll have set aside a full $1,000. That’s a decent emergency fund for things like car repairs and doctor bills.
* Open a retirement account. Here’s another way to automate savings. If you haven’t done so already, start contributing to a retirement plan. Even better, if your employer makes a plan and a match available to employees, sign up as soon as you can. If you can’t afford to contribute the full amount to get the full match, start with a small percentage, and slowly add on.
Taking the first steps to gain control of your finances isn’t easy. Setting up good financial habits today can leave you in a better place tomorrow. Test your credit score knowledge at CreditScoreQuiz.org, and be sure to visit VantageScore Solutions to learn what things influence your score, and what you can do to improve it.
(BPT) - The banking and credit union worlds are as much the same as they are different. Both are eager to earn your business and to provide you with loans, mortgages, savings and checking accounts. With that said, there are some significant differences between the two financial institutions. In today’s world, with cutthroat competition for your money, it’s worth understanding the advantages of both, and perhaps making a switch to one or the other to put yourself in a better financial position.
Credit union and banks: The differences
The primary difference between a credit union and a bank is that a credit union is a not-for-profit cooperative, meaning it’s owned by its members or customers. Profits made by credit unions are returned back to members in the form of reduced fees, higher savings rates and lower loan rates. A bank, on the other hand, is for-profit, owned by shareholders and focused on its stock value.
Joining a credit union is fairly simple, and membership is inexpensive — typically a one-time fee of between $5 and $25. Depending on where you live, many credit unions serve a geographic area, such as a state or metropolitan area, and are open to anyone who lives in that area. Some credit unions are employer-sponsored, so that anyone (including family members) who works for that organization can join.
There is no membership fee to “join” a bank. All you need to provide is some money to open a checking or savings account, a government-issued ID card, and some personal information (address, Social Security number, etc.).
Credit union advantages
Credit unions, by and large, are able to provide better rates to their members. Unlike a for-profit bank, credit unions return their "profits" to members in the form of lower rates on loans, higher interest on deposits and more personalized services. Other advantages of a credit union are that they tend to have lower fees on checks, withdrawals and electronic transactions, and many offer checking accounts with no minimum balance and without a monthly service charge. Finally, because credit unions are smaller and have a focus on member service, they may be more flexible when it comes to working with someone with financial challenges.
Banks, because of their size and scale, tend to offer more financial products than credit unions. For example, a credit union may have two or three different types of checking and savings accounts, whereas a bank may have dozens to choose from. Depending on where you live, banks will most likely have more locations for convenient access and more advanced online and mobile banking capabilities. Because of their geographic reach and wider range of offerings, a large bank could be a better fit for someone who wants specialized financial products (annuities, trusts) and needs access to nationwide locations.
Credit unions catching up
Depending on where you live, you may have numerous options for selecting a credit union. Some credit unions may have only one location and offer basic financial services like auto loans, checking and savings accounts. Other credit unions may have a large footprint in a market or state and offer the breadth of services you’d find in a bank. Most offer free, nationwide ATM access, and since many credit unions belong to cooperatives, members can access accounts across the country through other credit union branches. Bellco, for example, offers a full range of financial products and services, including mortgages, auto loans and checking accounts. Today, Bellco has more than 300,000 members who benefit from the advantages of a credit union, including lower interest rates on loans, higher yields on savings and access to thousands of ATMs nationwide.
Choosing a bank or credit union
Depending on where you live — urban vs. suburban vs. rural — your banking and credit union options will vary considerably. If you are in an area that offers both, there are several features to weigh and consider:
Services: Compare the basic banking services and access to specialized financial products, including advanced online services and mobile banking.
Rates and incentives: Look at the current rates, fees, and incentives — as well as overall benefits to being a customer or a member of the bank or credit union. Are there good reasons for joining one over the other?
Location: Evaluate options to access your accounts, whether it’s branch locations or ATMs or mobile banking services, and decide whether a national footprint is a requirement for your banking.
Finally, it’s important to note that both banks and credit unions insure your money up to $250,000 per person, across a group of accounts (checking, savings, and CDs would be considered one group). The Federal Deposit Insurance Corporation (FDIC) insures banks, and credit unions are backed by the National Credit Union Administration (NCUA).
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