Shakespeare once said “Neither a lender nor a borrower be”. That’s a nice sentiment, but the bard didn’t live in an era of subprime mortgages, negative equity and business insolvency. In his day, all you had to do was write a few sonnets for a wealthy patron and you were golden. In the 21st century, however, lending and borrowing are not only essential in a realistic business climate, they’re the basis of our entire global economy.

In both personal and business finances, peaks and troughs are inevitable, and even the most successful among us have our rough times. From hip hop icon 50 Cent to Mark Twain, many of successful business and creative types face stared down bankruptcy and come through it stronger than ever. Even the billionaire president Donald Trump has been declared bankrupt four times.

Myriad circumstances may result in individuals and businesses filing for bankruptcy. While it’s undeniably a stressful and upsetting experience, it’s important to remember that though there are certainly repercussions following bankruptcy, by no means is it the end.

If bankruptcy is looking like a possibility, or even an inevitability here are some tips that will help you to make an informed decision whether or not to file:

Remember… You are not alone

Facing bankruptcy and feel like an isolating experience, but you are most assuredly not alone. In fact, over 800,000 people applied for bankruptcy in federal court last year. Filing will neither make you a social pariah nor mark you out as a failure. It is, however, important that you do it right, so hiring a bankruptcy attorney should be one of your highest priorities. Your spouse or partner doesn’t even need to file alongside you.

There are different kinds of bankruptcy

In the US there are two forms of bankruptcy; Chapter 7 and Chapter 11 and which you file for will depend on your circumstances. A Chapter 7 requires the business or individual’s assets to be liquidated, using them to pay creditors as much of the outstanding debt as possible. A trustee will be appointed to facilitate the liquidation and ensure that creditors are paid in proportion to the debt. A Chapter 11, on the other hand, reorganizes the debts and adjusts them in terms of repayment amounts and interest rates (much like consolidation).

You may still be able to get credit

You may feel that it’s the end for you and your business, but lines of credit will still be open to you. Remember, however, that over-reliance on credit is what leads many to bankruptcy in the first place. Bankruptcy is a highly instructive tool for many as it teaches them to really appreciate the importance of budgeting and financial planning. That said, the bankruptcy is not quite as prohibitive in terms of credit as many believe.

But it’s important to be realistic

Bankruptcy is intended to wipe the slate clean. It’s a fresh start for businesses and individuals, but it’s not without financial consequences. Credit gets harder to come by (but not impossible) and it could have repercussions on your business borrowing. Bankruptcy can help you but it should also be considered a last resort. You should first consider an alternative such as a consolidation plan before filing for bankruptcy.

Did you know that being smarter about your health can directly affect your health care costs? It’s true! Lower health care literacy has been linked to unnecessary over treatment, fewer scheduled preventative services, and higher hospitalization rates, all of which increase your health care costs and put you at greater risk. In the following article, we review the types of behaviors associated with having a high health literacy and how these behaviors save people money on their insurance rates.

They Learn to Advocate for Themselves

Those of us who are health conscious are smart enough to know which treatments and medications we need and which ones are unnecessary. These unnecessary treatments, including over prescribed medications, fall under a term called “overutilization.” Overutilization occurs when health care is provided at a higher volume than necessary or at a higher cost than is appropriate to the treatment. In other words, if patients don’t have high health care literacy, they may not be able to advocate for themselves and refuse excessive or redundant tests or treatments.

In fact, overutilization is such a problem in health care that the Institute of Medicine (IOM), now known as the National Academy of Medicine (NAM), estimates that 30 percent of US health care expenditures are a waste of money. Of that percentage, the IOM estimates $210 billion stems from unnecessary health care services.

They Schedule Regular Doctors Visits and Use ER Sparingly

Those with high health literacies tend to go to the doctor regularly, which helps them understand their current health status better than those with lower health literacies. This helps them avoid the common traps of overutilization, which we see in doctors over-prescribing medications (such as antibiotics for upper respiratory infections), excessive imaging services, unnecessary surgeries, excessive stress tests, and emergency-room visits for symptoms normally seen at a person’s doctor’s office. Many of these instances of overutilization can be avoided if a patient fully understands his or her health status and the full range of treatment options available. For example, rather than visit the ER for suspected strep throat, a health-literate patient would hold off and schedule an appointment with his or her family doctor. Doing so not only helps you save money, but also reduces the overall costs of healthcare for everyone.

They Take Advantage of Preventative Services

Health conscious patients take their health seriously. They schedule physicals with their primary care provider annually, make other appointments when necessary, and live a healthy lifestyle in order to prevent health problems later in life. Unfortunately, even if you’re trying to live a healthy lifestyle, if you’re not keeping your annual doctor’s appointments, you may still be part of the problem that drives up health care costs.

The yearly physical is often included in insurance plans free of charge because it’s such an essential part of keeping insurance rates down. Preventative services like these can spot illnesses and risk factors early, long before they have a chance to develop into life-threatening concerns. Too often, we hear of cancer patients who didn’t know they were sick until they were diagnosed with Stage 4 cancer, and while many cancers do indeed grow quickly, preventative services have a better chance of spotting them before it’s too late for treatment.

As a health-conscious consumer, you should adhere to your doctor’s recommended visits and consider other areas that positively impact your overall health, such as dental, vision, and physical therapy services. Staying on top of these areas of health ensures you save money on health care costs and don’t strain the system.

Keeping Your Insurance Rates Down

The reality is, many Americans don’t spend enough time researching health insurance benefits options before choosing their plan. Those with higher health literacy will compare their options, perform research beyond the packet their employer has provided for them, ask questions to get a clear picture of what’s included in each insurance plan, and get their questions answered by an expert in the field to make sure they are getting the right insurance plan for them. The same can be said for life insurance.

Health IQ celebrates health conscious consumers by extending special rates on life insurance to those who deserve it most. When you’ve spent a lifetime eating right, exercising, keeping up with your annual physicals, and doing your best to stay healthy, statistics say you should live longer than the average American. Naturally, this means enjoying special rates on term life insurance.

If you’re already a health conscious consumer, enlist the help of an expert to find the right insurance plan for you and your family. Our services are particularly beneficial to endurance athletes and strength trainers with low resting heart rates and muscular builds. Muscular builds can mean having an increased body mass index (BMI) that puts you over a weight limit for discounted health insurance rates, but we take these things into account at Health IQ. Simply verify your activity level to qualify.

Being health conscious has many benefits, so why not reap the rewards? Contact Health IQ to see how much you can save.

An emergency is defined as any serious event that requires immediate attention. Bearing that in mind, what emergencies can occur that end up causing your finances serious harm? Below, you’ll find three big ones that can really hurt your family and your money:

Your House Getting Damaged

Damage to your house is an emergency none of us wants to deal with. The simple fact is there are many ways in which your house can suffer serious damages. What if a bad storm hits and the wind damages your roof or lightning strikes your house. Or, what if someone in your home accidentally starts a fire and your kitchen goes up in flames? When you start to think about it, there are so many things that can happen that lead to your house getting damaged. The worst thing is, in an emergency like this, the repairs to your house will be very costly. There could be serious damages that need fixing and a lot of work that needs to be carried out in your home. In some cases, you may need an entire roof replaced or your house cleared and dried out after water damages. Regardless of how your house gets damaged, the consequences may be very dire for your finances.

A Family Member Getting Arrested

When someone in your family gets arrested, it does count as an emergency. It’s come out of nowhere, it’s a challenging life event, and it requires immediate attention. We’re not talking about someone in your family getting arrested for serious crimes here. We’re talking about if someone is maybe out partying with their friends and they get arrested for drunk and disorderly behaviour. Or, they make a mistake and shoplift. Regardless, someone in your family might make an error of judgement and end up arrested and awaiting bail. This then means you have to go through the effort of contacting a company like Kat Bail Bonds to help you pay the bail and get them out of jail. Depending on the crime, it could cost a lot of money and leave your finances in a very bad position.

A Car Crash

Car crashes are probably the most common emergency out of all three listed here. Also, they’re very damaging to your finances as they can hurt you in multiple ways. With a car crash, you have the financial pain of dealing with a damaged car as well as any medical problems that may occur. You could end up with broken bones or muscle strains that require immediate and expensive medical attention. If you have a good insurance policy, you might be covered for events like this and not have to pay for repairs to your vehicle. Likewise, you could find a lawyer to help you make a personal injury claim and avoid those medical expenses. However, then you end up with a lawyer fee, which can also be costly! No matter where you turn, a car crash can have a detrimental effect on your finances for some time after the event.

If any of these emergencies happen, they need to be dealt with quickly. The problem is, they all require a lot of money to be spent. The best way to handle an emergency is to have an emergency fund set up. This means you’ve got money saved away to help you in case scenarios like these happen.

Sometimes, life can throw you a challenge, and they can often lead to unprecedented emotional and financial difficulties. Therefore, whether you’ve been made redundant, extreme weather has damaged your home beyond repair, or, you’ve gone through a costly divorce; it’s vital that you get your thinking cap on and figure out what to do financially. Working out your money and where it’s going as soon as possible, will help protect you and your assets in the future. The following are some things you might need to consider, should you find yourself in financial strife.

Maintaining Your Income

During difficult life events, like divorce, it’s important that the other key areas of your lifestyle remain as intact as possible. Therefore, it’s essential that you inform your employer of any significant changes to your situation, so that they understand that you may need some time out of the office, and you won’t have to jeopardize your job. If it’s your job that you’ve lost, and you find yourself redundant, then you must financially plan immediately, and pick up any work available, while you search for your next career move.

By maintaining a steady income, and carefully considering any purchases, you’ll be able to ease the transition into any other major life changes. This will help your and your family, both financially, and emotionally in the future.

Rebuilding Your Credit

Life changes that cause financial hardship and struggles can often lead to you to paying for things with a credit card or not paying back loans and bills on time. These difficult financial situations can result in bad credit, and for you to figure out how you’re going to rebuild your life, you’ll need to seek professional help and advice. You can research into credit repair services, find out; does Lexington Law really work and discover what you’ll need to do to get yourself out of the red again.

Selling Your Assets

In order to release some equity, and get back on your feet financially, you might need to make some tough decisions in regards to your property and bigger assets. Downsizing your accommodation, or replacing your car with an affordable alternative, are decisions to make quickly so that you can save as much of your money as possible. Check out 10 tips to sell your home fast here.

Even though it might be a tough process to go through, relinquishing your expensive assets could give you the cash you need in the present, and secure a lucrative future for you and your family. Remember that nothing has to be permanent, and if you’re willing to make the sacrifices now, you’re likely to benefit in the long run.

Changing Your Lifestyle

It’s all very well ensuring that you’re still working and that you’ve downsized to affordable alternatives; however, if you continue to spend money in all the same places as before, you’ll run out of it pretty quickly. You’ll need to rethink where and how you shop, and ensure that your monthly outgoings are significantly reduced; so that if you do have spare cash, you can save it for the future.

As more people are leaving their very insecure permanent jobs and going down the self-employed route, there doesn’t seem to be many financial preparations for the future anymore. And it’s hardly surprising, given the current nature of unpredictability in the market. People are setting up their own businesses, and approximately 9 out of 10 small businesses are failing because people are ill-equipped, or the financial strain is way too much for them to bear. Living a lifestyle of self-employment can be all about living day to day while working all the hours under the sun. While this isn’t the most fruitful way to live your life, how can you make the most of a delicate financial situation while working for yourself?

Assess The Real Amounts Of Outgoings

Living in a hand to mouth way means that you seldom stop and take notice of how much you’re spending. If you get a big contract, you may feel that you are in the money and spend quite lavishly, which leaves you out of pocket when you’re left wanting for work. The best way to tackle this is to establish a base level of spending and stick to that, though it’s worth doing this when you’re in a good working contract and not when you’re struggling. Look at your outgoings and cut back on what isn’t essential. Have you been to the gym in the last 6 months? No? Get rid of it. Getting a selection of credit cards is handy when you’re self-employed is handy for expenses, but not for buying everyday items. The best way to avoid temptation is to lock them away and avoid remembering the PIN number. If you have pressing payments when you’re in the middle of a contract, you could use a credit card to make the payment and then use your earnings to pay off the card. With costs like insurance, you can pay insurance premium by credit card which helps to spread out the debt over a longer period of time. It all depends on the rate of the credit card you have. It is always ideal to have a 0% card for business expenses. So if you needed to travel to another country, the card could pay for the travel insurance.

Look At What You Can Claim Back

One thing that newly self-employed people forget about is what they can claim as expenses. Depending on where you live it varies, but if you operate out of your home, you can make the most of cutting back on your energy bills if you use one of your rooms as an office. So if you have a phone set up, the internet, and of course, all your electricity usage for your business coming out of this one room, you could try and claim some money back on your bills. The rules differ, but you can always speak to an accountant to get the bearings on this situation. Self-employment is a feast or a famine, but saving money is possible in light of circumstances. Just do your research, and make the most of what you are entitled to.