personal finance - Surviving and Thriving

Goodbye, medical collections debt.

March 27, 2022 by Donna Freedman

Got medical debt? So do a lot of people: About one in five U.S. households have medical-related debt, according to a new study from the Consumer Financial Protection Bureau. And medical collections debt can do a number on your credit score (as in, a lower number).

But change is coming, in three ways:

As of July 1, 2022, paid-off medical collections debt will no longer appear on your credit report.

The time frame for unpaid medical collections debt’s appearance on your credit report will double. Consumers will have one year, rather than six months, to deal with insurance companies and/or negotiate with healthcare agencies before the debt is officially reported.

Finally, in the first half of 2023, the three major credit reporting agencies (Equifax, Experian and TransUnion) will not list medical collection debt that’s $500 or less.

This is huge for those who’ve fallen victim to what the CFPB calls “opaque pricing” and “complicated insurance or charity care coverage and pricing rules.” (Rohit Chopra, director of the CFPB, refers to it as “a doom loop.”) Those who are experiencing medical emergencies, as well as those who have chronic illnesses, may feel they have no choice to shoulder the costs associated with getting care.

Monday miscellany: Bob wants to take your stuff.

March 7, 2022 by Donna Freedman

The Dollar Stretcher recently posted a piece that should help you take a closer look at your home security, or lack thereof. “A burglar reveals 15 trade secrets” is written from the point of view of Bob, your friendly neighborhood burglar. Some of it might surprise you.

For example, Bob says he sometimes dresses up as the cable, electric or phone guy. This reminds me of the Kinsey Millhone mystery series. Kinsey wears a coverall-ish getup when she’s breaking into a suspect’s home to look for clues. No one notices the cable guy or the meter reader, right?

At other times, Bob might be carrying a rake and posting fliers between the hours of 8 and 11 a.m. “I want to avoid any kind of confrontation,” he says. While posting the flier, he’ll take a peek inside your home. And if anyone answers his knock at the door? He’ll make up some excuse.

(A couple years back I was home by myself and there weren’t any cars in the driveway. Someone knocked, and when I answered the guy looked startled. He mumbled something about offering driveway paving; however, he didn’t have a flier, a business card or even a truck. Although I don’t know for sure that he was casing the joint, I certainly couldn’t rule it out.)

The Saver’s Credit: An overlooked tax boost.

March 4, 2022 by Donna Freedman

Need help saving for retirement? The Saver’s Credit can be a big help. Millions of taxpayers are eligible for this tax credit. Far too few of them know it.

According to a new survey from the Transamerica Center for Retirement Studies, just 48 percent of us know about the Saver’s Credit, also known as the Retirement Savings Contributions Credit.

“The Saver’s Credit may help make it easier for people to save because it lowers their federal income tax,” says Catherine Collison, the CEO and president of the Transamerica Institute.

It’s a non-refundable tax credit that could be applied up to the first $2,000 of contributions made to a traditional or Roth IRA, an ABLE account (for people with disabilities), or a 401(k), 403(b) or similar employer-sponsored plan.

“Non-refundable” means that the credit can’t be more than a filer’s federal income tax that year. The maximum is $1,000 for individual filers and $2,000 for married couples if they file jointly.

Eligibility is based on age, dependency status and income. More people might be eligible for the Saver’s Credit this year due to pandemic-related employment issues. Here’s how to find out if you’re eligible.

Support the reader economy: A giveaway series.

March 1, 2022 by Donna Freedman

For some time now, my giveaway scheme has been “support the local economy.” As in, giving away stuff made in Alaska or produced by Alaskans.

While one or two books, pieces of jewelry, soaps or chocolates won’t exactly enrich the local company, it helps publicize what we do up here. Someone who wins (or doesn’t win) might say, “I want more of that” or “I want to buy that as a gift for someone.” (And it’s been confirmed that this has happened.)

Lately, I’ve been very concerned about the effect inflation is having on people living on tight margins. It doesn’t take much to send the whole house of cards tumbling. I learned this from painful personal experience.

Inflation also injures those who were middle-class stable until prices went sky-high. They’ll probably be all right, but will have to retool their budgets and make some tough decisions (especially as regards what they can no longer afford to do for their children).

Thus I’ve decided to do a “support the reader economy” giveaway series. This week it’ll be a $15 Walmart gift card, because that’s what I have on hand; if Walmart isn’t their brand, I would be willing to switch out a different kind of card. In subsequent weeks, the card will be whatever the winner wants.

I’m not foolish enough to think these modest prizes will fix someone’s money woes all better. Instead, I’m thinking of it more as a small boost or a special treat.

Then again, even a “small” boost might have a big impact.

Credit card requirements easing.

February 8, 2022 by Donna Freedman

The good news: Banks have lately made it a bit easier to get a credit card.

The bad news: Banks have lately made it a bit easier to get a credit card.

According to the Federal Reserve’s new quarterly survey of bank senior loan officers, nearly 15 percent of large banks and 25 percent of other banks have eased the required minimum credit score in the fourth quarter of 2021. This trend is likely to continue in 2022.

Notice that not all banks are doing this. Notice, too, that I said it’s both good and bad news.

The relaxing of standards could help people who don’t currently qualify for credit, or who qualify only for cards with lousy interest rates and lots of fees. Getting a legitimate card and using it carefully can help them build their credit history. Without a solid credit history, you’ll pay more than you must for things like car loans, vehicles and insurance.

The idea is to get the best possible card and, more important, to have a plan to build credit, not create debt. That’s the “bad news” part: Being able finally to get a card could harm someone who doesn’t have a plan in place. A credit card is not the ticket to the good life, with zero consequences attached. It’s a tool, and like any tool it can be used for good or for ill.

6 money lessons from “Ghostbusters: Afterlife.”

December 8, 2021 by Donna Freedman

I didn’t expect “Ghostbusters: Afterlife” to be a cinematic classic. It was clear from the first preview that this would be a popcorn movie. What I did expect is that Paul Rudd and Carrie Coon would take the lead in supernatural heroism.

So I was pleasantly surprised when the middle-school nerd, Phoebe (Mckenna Grace, of “The Handmaid’s Tale,” among others) and her new (and only) friend, Podcast (Logan Kim) pretty much walked away with the movie. They – and especially Phoebe – are the film’s heart and mind.

And the scene where Podcast asks if she would be….

…wait for it…

his lab partner? That was one of the shyer, sweeter movie scenes I’ve encountered in ages.

The protagonists are the daughter and grandkids of one of the original Ghostbuster gang, and they’ve inherited his dilapidated house in Middle-of-Nowhere, Oklahoma. The mom, Callie, tells the kids they’re just going out there to sell the place, but we know before they do that they’re going to stay; after all, an early scene shows Callie begging the landlord not to evict them.

What could go wrong? Especially when teenaged son Trevor (Finn Wolfhard, of “Stranger Things”) and his new buddies start hanging around an abandoned mine? Or when Phoebe starts noticing some strange things of her own around their new home?

“Ghostbusters: Afterlife” drags a bit here and there, and I could have done without the Hallmark-y denouement, but overall I had a pretty good time. Didn’t hurt a bit that I paid only $6 because it was cheap Tuesday, or that I had a $3-off coupon for the concessions stand. (Like I said: Popcorn movie.)

And, of course, I found money lessons therein. Don’t I always?

Financial gifts.

September 23, 2021 by Donna Freedman

A fellow named Brandon, of Rinkydoo Finance, posed this question today on Twitter:

“What’s the kindest thing anyone has ever done for you financially?”

The expected “parents paid for college” answer popped up a few times. Other responses were things I’d consider not mere kindnesses, but rather enormous advantages:

“Gave us $10k cash for a honeymoon. Loaned us $100k at 3% to refinance my wife’s high-interest student loans.”

“When they purchased my business.”

“Someone anonymously donated $13,500 to my brother’s medical fund when he was battling brain cancer. Never found out who it was. (The number was just under the gift limit for the year so they would not need to file any paperwork with the IRS.)”

Here’s mine:

When I was a 21-year-old unmarried mom, preparing to move from rural New Jersey to Philadelphia, an acquaintance took me out to lunch. He asked how I could possibly keep the baby and myself alive on my “permanent part-time” salary. So I laid it out for him: I make X dollars an hour, rent and public transit pass are X dollars a month, child care is X dollars a week, I just bought a scrub-board and we’ll eat a lot of beans.

Then I excused myself to the restroom. When I came back, he’d paid for the lunch and said, “Well, I have to be going.” After he hugged me goodbye, he put a slip of paper in my hand. Unfolded, it turned out to be a check for a month’s worth of child care. Immediately I said, “I can’t accept this! It’s too much!”

6 money lessons from “Black Widow.”

August 30, 2021 by Donna Freedman

A few weeks back I checked out “Black Widow” with my great-nephew, a superhero nerd. Appropriately enough for a Marvel Comics Universe film, I wore my mask, at least until we sat down. Social distancing is in effect in terms of how many tickets the theater will sell, so I felt safe enough removing my mask to enjoy some kettle corn* and a soft drink.

We’d been waiting a long time for this pandemic-postponed female action movie to open, and I went in planning to love the film so much that I wanted to bear its children.

This was not to be. Although I liked a lot of things about it, it ultimately didn’t hang together as a super-epic. One thing I did love was Florence Pugh’s portrayal of Yelena Belova, a sardonic young badass and sister to Scarlett Johansson’s Natasha Romanov.

While I think Johansson’s a fine actress, and that the two of them played marvelously well against each other, Pugh walked off with the whole film tucked into one of her many pockets.** She lit up the screen and owned every scene in which she appeared.

So in-like, not in-love. Still a good day out – and I paid only $6 because it was cheap(ish) day. Even more luckily, I can call it a business expense if I write about it. So here we go.

Some people look for life lessons in movies. I look for financial ones, whether it’s in Metropolitan Opera HD Broadcast Series productions such as “Parsifal” and “Gotterdammerung,” or slam-bang action films like “Wrath of Man” and “Jumanji: Welcome to the Jungle.”

Did I find them in “Black Widow”?

Do you really have to ask?

34 discarded dimes.

July 25, 2021July 20, 2021 by Donna Freedman

Recently I waited a long time at the supermarket, staring fixedly at the front of the store as the line inched along. That’s because an optometrist once told me to focus on things 20 or 30 feet away from time to time, as an antidote to all the screen work I do.

Thus I ignored the Kindle app* on my phone and focused on the Coinstar machine. In part that was because a big green rectangle is an easy thing on which to focus. It was also in pleasurable anticipation of stopping by that machine after I checked out.

As regular readers know, I glean lost coins in stores, on sidewalks, from vending machine change-return slots and, yes, from Coinstar machines.

These machines will spit out dented or otherwise compromised specie, as well as foreign coins. I’ve also found they’ll spit out U.S. coins if they’re too light to be recognized.

Which is what had happened: The rejected-coins cup was full of what looked like dimes. No other coins; just 34 dimes, all issued between 1946 and 1964. I e-mailed my PF blogging pal J. Money**, who’s also a numismatist with a site called Coin Thrill. Turns out these dimes are so common that they’re not worth much to collectors unless they’re uncirculated.

These were circulated. Very circulated. However, their condition doesn’t matter when it comes to melt value.