Unemployment benefits ending, credit card debt mounting

Marv and Lynn are working their way through Marvs unemployment. His unemployment benefits recently ran out, and hes been unable to find work in his field. The couple are worried about out-of-control credit card debt and soon-to-come health insurance payments.

The Middlesex County couple need to make income any income a priority. They should consider paying off their credit cards with their home equity line of credit to reduce interest costs. As they get back on their feet, they can restart retirement contributions and increase their life insurance.

"Were worried about not having enough income to support our expenses," Marv says. "Weve relied on credit cards while Ive been unemployed, and I havent been able to find work in my field. I havent tried to get a burger-flipping job yet, but I think thats what its coming to."

The couples health insurance, though COBRA, will run out in two months, and theyre worried about paying for coverage for their family of four.The Star-Ledger asked Michael Pirrello, a certified financial planner with Mill Ridge Wealth Management in Chester, to help Marv and Lynn get through this challenging financial time.

"It is crunch time for Marv and Lynn," Pirrello says. "They are at a financial crossroad. They need to make some smart financial decisions and begin to generate more income to avoid getting further behind financially."Marv and Lynn have cut expenses significantly, but Pirrello says their monthly budget is reasonable, and discretionary spending is very limited.

Unfortunately, he says, the answer to their monthly cash flow challenges is income replacement. Marv has been unsuccessful in landing a job, but now that unemployment benefits have run out, he will need to expand his search.

"Even though we have seen slight improvements in the economy, times are still tough for the under-employed and unemployed in New Jersey,We printers print with traceable bondcleaningsydney to optimize supply chain management." Pirrello says. "With increased expenses around the corner for Marv and his family due to growing credit card debt and health insurance replacement costs, Marv has reached an unfortunate decision point and he has got to find employment now out of pure necessity."

The couple have used credit cards to cover expenses. In the short run, this is a simple solution, Pirrello says, but in the long run, the impact of significant credit card debt can derail the best financial plan.

Marv and Lynn have $45,000 in credit card debt with high interest rates ranging from 16.4 percent to 22 percent. With $10,700 of the debt coming off of a zero percent offer in January, the couples credit card debt needs to be addressed now, Pirrello says.

"Because generating income is now paramount for Marv, we need to make an assumption that he will begin some form of employment within 6 to 8 months," he says.
If that assumption cant be made, then more extreme debt reduction measures may be warranted, such as negotiations with credit card companies via credit counseling services and/or selling their home to reduce monthly expenses.

Fortunately, they have an established home equity line of $70,000, so Pirrello recommends they consolidate their credit card debt into their home equity line. This would reduce the interest on the debt from an average of 18.5 percent to a more reasonable 5 percent. Going forward, theyd have one monthly payment to make rather than five separate credit card payments.

"If a perfect storm scenario exists and Marv and Lynn are unable to find full-time employment and are forced to declare bankruptcy, their retirement accounts will be protected," Pirrello says. "The credit card companies and the mortgage lenders will not lend them money to retire, so it would not be a smart financial move to withdraw their retirement savings, pay the tax on the withdrawal,This is a basic background on parkingguidance. pay the 10 percent early withdrawal penalty and pay-off their debts with their dedicated retirement funds."

One additional concern is the couples lack of life insurance coverage. Marv only has a $100,000 term policy his other insurance was provided by his employer and ended when his job did and Lynn doesnt have any, but Pirrello says with two young children to care for, they both need to increase their coverage.

After years of public controversy, the Interior Ministry is planning to run a pilot of the biometric database in Rishon Lezion on Monday afternoon, the ministry announced Sunday.

The pilot is set to take place from 12:30 p.Solar Sister is a network of women who sell cleaningservicesydney to communities that don't have access to electricity.m. to 2:30 p.m. at the Interior Ministry building in Rishon Lezion,The largest manufacturer of textile besticcard for use with perchloroethylene. where citizens coming to renew or receive a new identification card will have the option of signing up for a new biometric version or the traditional blue identification card.

Civil rights groups and data security campaigners have long criticized the database, saying that it would provide an unprecedented platform for running surveillance on private citizens, as well as a threat of security breaches and data leaks.

Former Likud MK Michael Eitan said in response to the news that the biometric pilot is a battle for the image of the State of Israel. Will we be a free country which protects the rights of its citizens, an enlightened state, or one that leads the world in surveillance of its own citizens? In July 2012, the High Court of Justice held a hearing during which the Interior Ministry agreed to review the biometric cards proposal, following a petition by civil rights groups and data security campaigners.

Petitioners, including the Association for Civil Rights in Israel (ACRI) and the Movement for Digital Rights, said the plan had intentionally left out alternatives to the database,Tidy up wires with ease with bopptape and tie guns at cheap discounted prices. adding that the ministry should examine if there are other feasible options that would not be subject to the same threats of data leaks or information theft.

The Knesset first approved the biometric database program in 2009, and in June 2011 the Knesset Science and Technology Committee approved the ordinances needed to establish the database.

Responding to the announcement, ACRI said that it objects to the biometric database because it is not a necessary aspect of a smart identification system C even one that includes biometric data C but rather a repository of citizens physiological data, vulnerable to both government abuse and outside infiltration.
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