Unpaid medical bills do not go on your credit report unless the hospital or doctor to whom you owe the money subscribes to at least one of the three major credit reporting agencies (Experian, Equifax or Trans Union) or the debt is turned over to a collection agency. Moreover, if you dispute the validity of the debt within 30 days of receiving a payment notice, a creditor or debt collector cannot place the account on your credit report without a notation that you are disputing the debt.

Once a medical bill is recorded on a credit report it still can be removed if you agreed to pay the debt and negotiated to have the account removed from your credit report. Be sure to get any such agreements in writing, however, as otherwise it will not be legally binding. Do not only rely on the debt collectors oral promise that the account will be removed!

Garnishing wages is one of the only ways that creditors can get access to funds owed to them by their customers. Federal laws regulate just how much of a persons wage can be garnished and outlines several other restrictions that are in place to ensure that people are still able to make a living. Below is the actual federal law regarding wage garnishing:

UNITED STATES CODE: TITLE 15, CHAPTER 41, SUBCHAPTER II

§ 1673. Restriction on garnishment

(a) Maximum allowable garnishment

Except as provided in subsection (b) of this section and in section 1675 of this title, the maximum part of the aggregate disposable earnings of an individual for any workweek which is subjected to garnishment may not exceed

(1) 25 per centum of his disposable earnings for that week, or
(2) the amount by which his disposable earnings for that week exceed thirty times the Federal minimum hourly wage prescribed by section 206 (a)(1) of title 29 in effect at the time the earnings are payable,
whichever is less. In the case of earnings for any pay period other than a week, the Secretary of Labor shall by regulation prescribe a multiple of the Federal minimum hourly wage equivalent in effect to that set forth in paragraph

(b) Exceptions

(1) The restrictions of subsection (a) of this section do not apply in the case of
(A) any order for the support of any person issued by a court of competent jurisdiction or in accordance with an administrative procedure, which is established by State law, which affords substantial due process, and which is subject to judicial review.
(B) any order of any court of the United States having jurisdiction over cases under chapter 13 of title 11.
(C) any debt due for any State or Federal tax.
(2) The maximum part of the aggregate disposable earnings of an individual for any workweek which is subject to garnishment to enforce any order for the support of any person shall not exceed
(A) where such individual is supporting his spouse or dependent child (other than a spouse or child with respect to whose support such order is used), 50 per centum of such individual's disposable earnings for that week; and
(B) where such individual is not supporting such a spouse or dependent child described in clause (A), 60 per centum of such individual's disposable earnings for that week;
except that, with respect to the disposable earnings of any individual for any workweek, the 50 per centum specified in clause (A) shall be deemed to be 55 per centum and the 60 per centum specified in clause (B) shall be deemed to be 65 per centum, if and to the extent that such earnings are subject to garnishment to enforce a support order with respect to a period which is prior to the twelve-week period which ends with the beginning of such workweek.

(c) Execution or enforcement of garnishment order or process prohibited

No court of the United States or any State, and no State (or officer or agency thereof), may make, execute, or enforce any order or process in violation of this section.

§ 1674. Restriction on discharge from employment by reason of garnishment

(a) Termination of employment

No employer may discharge any employee by reason of the fact that his earnings have been subjected to garnishment for any one indebtedness.

(b) Penalties

Whoever willfully violates subsection (a) of this section shall be fined not more than $1,000, or imprisoned not more than one year, or both.

§ 1675. Exemption for State-regulated garnishments

The Secretary of Labor may by regulation exempt from the provisions of section 1673 (a) and (b)(2) of this title garnishments issued under the laws of any State if he determines that the laws of that State provide restrictions on garnishment which are substantially similar to those provided in section 1673 (a) and (b)(2) of this title.

§ 1676. Enforcement by Secretary of Labor

The Secretary of Labor, acting through the Wage and Hour Division of the Department of Labor, shall enforce the provisions of this subchapter.

§ 1677. Effect on State laws

This subchapter does not annul, alter, or affect, or exempt any person from complying with, the laws of any State
(1) prohibiting garnishments or providing for more limited garnishment than are allowed under this subchapter, or
(2) prohibiting the discharge of any employee by reason of the fact that his earnings have been subjected to garnishment for more than one indebtedness.

While it may be tempting for college students to whip out a credit card and simply charge their expenses, experts warn that that kind of mentality could end up hitting students harder than they think. For all the benefits of building a credit history early in life, there are many more drawbacks for not meeting monthly payments on credit cards. Nationwide, elderly and younger people are facing increasing amounts of credit card debt because they don't understand how credit cards work or fail to correct their spending habits. According to www.creditcards.com, 83% of college undergraduates have at least one credit card with an outstanding balance of more than $2,300! Meanwhile, the combination of credit card debt and student loans can be crushing to students looking to find a career and build a life after college. How can this be avoided? Simple, just remember to spend less than you earn, diversify your investments, save regularly and often, and remember rule number one.

Soon Americans may be able to push back even the most basic forms of spending: parking meters. Wisconsin is testing the waters in the capitol city of Madison with new meters that will accept credit cards. The city said it would begin testing the new meters next month and leave them in operation for 90 days. Instead of a line of gray meters, the new system will use a single battery-powered box that controls up to 14 spaces. While each system costs $10,000, the city hopes to recoup the costs with collection and maintenance savings. The spaces will cost $1.25 per hour but the city could change the rates at different times of the day depending on demand. Some see this move as yet another move towards a cash-less society that further leverages itself with debt in order to cover even more of our daily lives.

Prepaid credit cards are a wonderful idea for children and for those struggling with debt.  Prepaid credit cards work just like a normal debit or credit card, but the limit on the card is what you initially place on the card before it is activated. The limit allows you only to spend what is on the card, and you cannot be charged with fees thereafter or with bill payments each month.  

However, there is a catch to prepaid credit cards.  Each time you initiate a new card, there is an activation fee that applies, usually between $5 and $10 to setup the account.  With that, you will also have to pay additional fees for each time you deposit money on the card.
 
Prepaid credit cards work just as well as any other credit card and can be used anywhere and anytime.  Prepaid credit cards work well for people that are dealing with poor credit and need to use a credit card for bill payments, credit applications, etc., but that have been denied for credit cards and other credit.  However, there have been issues with companies not allowing monthly bill payments with prepaid credit cards, such as automatic monthly bill payments, for fear that there may not be sufficient money in the account at the end of the month.  

Prepaid cards are a wise tool to use for children, teaching them how to balance and account for their own finances.  They also work great for people trying to get back on their feet while struggling with debt and credit issues.  

“Life takes Visa.”  We’ve all heard the slogan.  Yes, Visa is accepted virtually everywhere around the world.  And now, it’s common that Visa is also being accepted at your local church. Visa’s ad campaign has repositioned the organization from a credit card company to a major player in electronic payments, offering credit, debit, prepaid and commercial products. The company wants to be known for the ability that their cards and services are accepted anywhere and anytime all over the world.  Even at church.

Credit cards, in general, are becoming ever more popular with temples, synagogues, churches, and other places of worship. If you forget to bring your donation change or cash, don’t worry, you can probably use plastic. Over the last year, the ability to use credit cards to donate to places of worship has increased over 21% over the last year.

In addition to onsite kiosks, worshippers can set up automatic donations online, much like they do with car or utility payments, said Bill Dobbins, vice president of merchant relations at Visa. Charging your charity allows you to keep better track of payments, while streamlining record-keeping and cutting down on mailing costs for religious organizations.

Most people believe that “offshore” banking is illegal, and quite comparable to money laundering.  However, it is not illegal.  Offshore banking is only illegal when you do not inform tax authorities about your decision to bank offshore.  It is very important to discuss the idea before-hand with a qualified financial advisor. The problem is found when you do not report taxes on these offshore accounts, whether you forget or try to sneak it past the government.  The IRS believes that they lose an average of $70 billion a year to taxes lost to these tax havens abroad. Most offshore banks are domiciled in Panama, the islands of the Caribbean and the Bahamas. 

Offshore banking allows people to save tax legitimately by having interest paid on their savings before the deduction of tax.  The tax saving advantages of banking offshore are generally only available to a few people who are usually expatriates, non-residents in a high taxation country and with tax liability in a country where taxation is low or even non-existent. However, the asset protection benefits, personal privacy advantages, and the potential to access better account structures and services are available to the majority of us when we choose to bank offshore.

Many offshore jurisdictions are strongly regulated to protect investors and to prevent money laundering, which can grant those who bank offshore a greater degree of confidence and security. Many jurisdictions have strict guidelines that cover the maintenance of client privacy, which grant those seeking personal and asset protection the assurance that their identity and transactions will remain confidential. Offshore structures such as bank accounts and trusts are often used to protect your assets from potential unfair litigation.

There are many benefits to banking offshore. Most offshore banks allow you more flexibility and access. As well, offshore banks generally pay better interest rates and often have lower charges. It is common that offshore banks offer flexibility and the benefits necessary for those who regularly travel for work or pleasure; as for those who travel often, multiple currencies and easy transactions from all around the world are another benefit to doing offshore banking. 

However, there are some issues with offshore banking. It is important to know the risks of offshore banking, as it is possible that a situation may arise that your offshore bank may not meet international standards (such as those set by the Financial Action Task Force and the Organization for Economic Cooperation and Development) and your account can then be frozen and inaccessible. 

It is common that most offshore investors are fairly ordinary people - dentists from Chicago, manufacturers from Frankfurt and merchants from Tokyo - who have been advised by their accountants to funnel at least some of their assets offshore.  Offshore banking is infamous for housing accounts to drug dealers and terrorists.  The amounts of money to be invested within various countries is a limited amount, as you most likely will not be able to invest $3 billion into a Caribbean bank.  It is now becoming more common that most offshore banks will not take more than $5,000 in cash deposits and will generally require a third-party testimony, by an accountant or lawyer, as to the source of the deposit. 

Food is the third most costly aspect of our lives. However, when it comes to organic foods, the price tag is much higher. US shoppers who consistently choose healthy foods spend nearly 20 percent more on groceries. The study also said the higher price of these healthier choices can consume 35 to 40 percent of a low-income family's grocery budget. Organic foods are, by far, the most expensive of all groceries.  

Analysts claim that the demand for organics drive prices down over time. However, that is not the case so far. Even though organics sales are growing by about 20 percent a year, nearly10 times the rate of increase in total US food sales, these cleaner, greener products still carry a hefty premium.

Today, roughly three-quarters of conventional grocery stores carry natural and/or organic food, according to a 2002 Food Marketing Institute study. Restaurants across the country, from the high end to the greasy spoon, are plunking organic ingredients onto their menus. Still, organics represent only about 2 percent of the food industry, both in the U.S. and worldwide. And less than 10 percent of U.S. consumers buy organic items regularly.

If you are one of the go-hard organic goers, you already know that you have to account for the greater costs of your annual food bill. If you are only the occasional organic shopper, your bank thanks you for now. It is important to know the difference among foods when buying organic versus the non-organic. Ask your local grocer about the differences among meats, fish, fruits, and vegetables when they are or aren’t organic. Some foods aren’t different, although the price tags may represent a gap larger than the Grand Canyon. However, there are a large number of organic foods that truly present a much healthier means, and that may be worth the extra few dollars. 

We’ve all been caught fighting our consciences: whether to pay $9 for an alcoholic mixed drink, or to pay $5 for a coffee drink. The fact of the matter is, if you are to splurge on such beverages to go, such as a Starbucks coffee, a vending machine 20 ounce soda, or a night on the town with too many to count mix drinks, do it sparingly. The costs of splurging on such beverages to go can be costly, and these costs will quickly catch up to you. There is hope.

Plain and simple, the answer to saving yourself money is to supply yourself with the beverage of your choice at your own home.  Sure, you may be missing out on the ambience of the quaint little coffee house down the street or the music of the live band at the local pub, but it will pay off once you realize how much money you can save. There is no need to entirely cut-out spending money on buying beverages outside of your home, but just watch your spending carefully.  Instead of making a Starbucks stop every morning on the way to work, try making your own coffee at home – even if you choose to buy bagged Starbucks coffee, ground or whole bean.  

As for buying a 20 ounce soda from the work vending machine for $1.25, buy a 6, 12, or 24-pack of soda (cans or bottles) at the store and save around four times the amount of money you’d otherwise spend on buying a soda at work when you can just bring a can or bottle from home.  The same goes for juice.  Instead of buying an individual bottle of apple or orange juice, you can easily bottle your own or buy a larger quantity pack of individual bottled juices to take on the road with you. Items that you can buy at the store and use for the road at your convenience will save you a lot of money in comparison to buying one at a time while being put on the spot.

The same concept goes for alcohol. You can easily buy a bottle for a fraction more than the cost of buying just one drink out on the town. As this is not to prevent you from painting the town red occasionally, it is to suggest that it will be cheaper to throw a shindig at your place once and a while. As well, set a limit for the amount of drinks you wish to have and plan accordingly for the costs when you do decide to visit the bars; do not surpass your limit (financial or drink limit) throughout the night. Drinks can be costly, especially when the end of the night approaches and you have far exceeded your wallet’s restraints because you have not only bought more drinks than you need, but you have also bought the entire bar a round of drinks and shots.  

Think about the beverages at your home. Buying beverages, such as juice, soda, alcohol, and coffee at the store and utilizing at your own home and at your own convenience will save you a lot of money.  You can easily buy individual bottles in large quantity packs, or you can buy large single bottles in which to carry with you in a water bottle or another container, such as an on-the-go travel mug. This can be applied in any situation on the go: work, traveling on the road, flying, school, or sporting events. 

Life is expensive, plain and simple. Where does all of our money go?
 
1.    Housing
The largest life expense is housing.  Consumers spend an annual average of $12,320. That's roughly a third of average annual expenses.  We all need a place to sleep, and so our budget shows.  We sleep 1/3 of our lives away, why not pay 1/3 of our annual budget to housing then?
People in the West and Northeast spent the most on housing; $14,000 and $13,500, respectively. Midwesterners came in third, at about $12,000, and Southerners paid the least, clocking in at $11,000.

2.    Transportation
Transportation comes in at second place for the most expensive costs within our annual budget.  Transportation costs continuously rise each year.  In 2000, consumers spent about $7,500 a year, or almost 20% t of annual expenses just getting around. Those costs come almost exclusively from cars: 46 cents of every transportation dollar spent went to vehicle purchases, 17 cents to gasoline and motor oil and 31 cents to costs like auto insurance and repairs. Only 6% was claimed by public transportation.

3.    Food
Eating absorbs another 14% of consumers' total yearly expenses. In fact, this basic necessity is claiming a larger portion of the budget pie as dining out becomes increasingly popular among busy, dual-income families. Of the $5,150 or so spent on food, only less than 60% went to groceries eaten at home.

4.    Entertainment
Only about 5% of our annual budgets are spent on entertainment, with such expenses as vacations and movies. With the inclusion of dining out and alcohol, the budget jumps to about 11%.  This varies greatly by age, as the younger generations spend more on entertainment, coming close to spending 14% for those under 25.  It is also believed that senior citizens tend to also spend more, on such means of entertainment as vacations. 

When participating in any type of gambling, it is important to always know the risks you are taking on, financially speaking.  Gambling in the US is a growing problem, with a growing number of addicts and people finding themselves more and more in debt than ever before.  On average, over 60% of American adults gamble over the past twelve months on some activity. Over 80% of American adults believe that gambling is legitimate and that casinos are okay. Gambling is truly an industry of money, as it generates more revenue than movies, spectator sports, theme parks, cruise ships and recorded music combined.  The gambling industry has become a $40 billion dollar a year industry in the United States. It is okay to gamble occasionally, but it is important to know how to gamble responsibly. 

It is vital that you never gamble for investment or income. With this said, even playing to “earn” $5 is a risk that you should know you’re taking.  The amount of the matter is important, yes, but the overall fact that you should not be gambling to earn money at all is more important. 

Also, know and understand the type(s) of gambling you are participating in before you do so.  Know the odds you are against, as well as how the games are played and work, whether it be Blackjack, Craps, slot machines, Roulette, poker, etc. 

It is important to use money that is designated for entertainment expenses only among your financial budget. Never use your finances that are intended to pay bills or support your daily life, or that of your family. If you are digging deep into your savings for money to gamble with, that is a sure sign you should not be gambling. Never borrow money from family or friends.  Only use money that is yours and that is specifically intended as extra money to use as you wish.   

Always set a budget prior to your gambling and stick to it.  If you go to a casino, only bring a set amount of cash with you, and do not bring an ATM card that you can later withdraw more money from if you lose your cash-on-hand. As well, it is always a bad idea to gamble with personal possessions. Once you are out of money, then you should be done. Also set a limit for your winnings, in case you are lucky enough to win.  If you set $50 as your winning limit, call it quits for the day once you win that $50.  Do not continue to gamble past your limit as you have better odds to lose that money sooner that later.  Be aware: risk increases at times of loss or depression, and this is the time when you are bound to want to continue gambling to earn back your losses.  The odds are most against you at this point. Once you have lost the cash you have started with, it is time to quit. 

It is important to watch how frequently you participate in acts of gambling. Gamble only as a treat for yourself, such as going to a movie or out to dinner. You will begin to develop true habits of a problem gambler if you desire, or need, to go everyday or as much as possible.  Gambling is an issue of you losing money, while the gambling industry wins it, as the odds are always against you.

You credit score will help or hurt you, and it’s up to you to help or hurt your credit score. You may be accepted, or rejected, for a line of credit, and it’s all waiting on your credit score and what you’ve done to help or hurt it.  Here are five tips to watch out for to prevent damaging your credit score:

1.    Bad Credit History
Past credit history usually counts for 35% of your credit score.  Missed and late payments will dent your score, with negative entries on your credit file for six years. However, the impact of missed and late payments diminishes over time, especially if you have been making payments on time. You will see changes for the better on your credit score if you make the effort within a year.  

2.    Current  Address
Lenders like continuity. A score will be higher if you have been at the same address for three years or more. There may be some impact if you have had two addresses in the last three years, but less if you are a homeowner. The greatest impact will found within having multiple address within the last three years or if you have been at your current address for less than six months.

3.    New Job
As with residency, when it comes to employment continuity is also vital. Ideally, lenders are looking for someone who has had the same job for a number of years. Such applicants will benefit from the maximum score for this. It is important to be in your new job for a few months before applying for new credit. It will not affect your credit score by having multiple jobs at one time.  It is, however, a bad idea to go through many jobs and not be able to maintain stability within the workforce, such as having three different jobs at three different times throughout three different years.  As well, periods of unemployment also will negatively affect your credit score.

4.    No or New Bank Account
Lenders will award maximum points if you have been with your bank for a number of years. Having only recently opened your current account will reduce the score. Not having a bank or current account will be most detrimental to your credit score.

5.    Multiple Credit Score Applications
Every time you apply for credit, a search is made and will be recorded on your credit file. Multiple credit applications in a short space of time will negatively impact your credit score. Such applications may be perceived as indicative of someone desperately trying to obtain credit. It is commonly accepted that making one credit application every month or two should not have too much impact on your credit file. However, if you have recently made a number of applications and been declined, it is advisable not to make any new applications for six months before applying again. It also gives you time to review your credit file and determine if there is anything on there which shouldn’t be.

1. Keep Your Numbers to Yourself

It is crucial that you protect your Social Security number, credit card and debit card numbers, PINs (personal identification numbers), passwords and other personal information. A thief can use these details to order checks or credit cards, apply for loans or otherwise commit fraud using your name. Do not provide financial and other personal information in response to an unsolicited phone call, fax, letter or e-mail, as it could be from a fraud artist masquerading as a legitimate business person or government official. Be particularly cautious with your Social Security number (SSN). Keep bank and credit card statements, tax returns, checks and other sensitive documents in a safe place at home. Shred these documents thoroughly before discarding them.

2. Know Who You’re Dealing With

Deal only with legitimate, reputable businesses. Only participate in business with companies you already know or that have been recommended by people you trust. Do your research before giving money or personal information to an unfamiliar merchant (or charity or any other organization).

3. Get It In Writing

Get key details in writing and thoroughly check them out before agreeing to anything. Don't rely on a sales person's oral representations for a significant purchase or investment. Get as much written information as possible, including a contract, specifying cost information and your consumer rights. If a marketer refuses to supply written information or employs high-pressure sales tactics to get you to act fast, take that as your cue to dismiss the call or attempt for a transaction.

4. Beware of "Deals" Requiring Money Up-Front

"Congratulations, you've won a free vacation!" "Get rich quick—at no risk!" "We'll fix your credit problems—fast." These are common slogans that fraudulent companies and individuals use to lure in their fast income from their consumer prey. They're likely to be schemes to trick you into sending money or providing bank account information in exchange for promises of goods or services that will never be delivered. Be skeptical of any offer that's "free" or otherwise hard to believe and that, as a precondition, requires you to pay money (perhaps for a supposed "fee" or "tax").

5. Review Bills and Mail ASAP

It is important to always review credit card bills and bank statements for any errors or for any purchases you didn’t make or an unauthorized withdrawal from your checking account. If you notice a problem, contact your financial institution immediately. While federal and state laws limit your losses if you're victimized by a financial fraud, sometimes your maximum liability depends on how quickly you report the problem (generally you are allowed to report an error within 60 days of the event taking place). Also make sure you get your statement every month. If no statement arrives, that could be a sign that an identity thief has changed your mailing address for purposes of committing fraud in your name but from another location. As for personal mail, make sure to retrieve it everyday, as your mail may include checks, credit card applications, bank statements and other items of value to a thief.

Try to send and receive mail using locked mailboxes or otherwise secure locations. If you're going to be away on vacation or some other travel, have your mail held at the post office or picked up by a neighbor. If you're expecting a check, a credit card or bank account information and it doesn't arrive in a reasonable period, notify the sender. As for outgoing mail containing a check or other personal financial information, put it in a blue Postal Service mailbox, hand it to a mail carrier or take it to the post office.

Currently, there’s an average of 6,000 people leaving their jobs each month, whether due to quitting or due to layoffs, with the latter being the predominant problem around the nation. With so many industries and companies participating in large layoffs and overall company restructurings as if it were a fad, so many people are feeling the intensity of the insecurity of their jobs.  

While you may not have control over your job as to whether you’ll have one tomorrow or in a year, you can have some control over your own security of your situation. It is important to maintain a strong emergency fund. It is suggested that any emergency fund (untouched until needed) should contain the minimum worth of three to six months of financial need. However, the bigger you can build a financial emergency fund, in case of any type of emergency (whether job loss or what have you), it is important to build up the fund as much as possible and to never touch the account until necessary.

As a last resort, consider opening up a home-equity line of credit or apply for a low-rate credit card that you hope you will never have to use. It’s a lot harder to do either of those things if you're already unemployed, so do it now, but only with the intention to use at a later time when necessary.  Do not utilize the “emergency” credit until you need it, if you ever need it.  

In regards to credit, make sure that you are not only making your minimal monthly payments on your credit cards and other debt, but if possible, pay off as much of your debt as possible now. The less debt you have when an emergency arises (such as a job layoff for you or your spouse), the less you’ll have to worry about with credit companies later.

Whether or not your job is secure, make sure to know your company’s policies in regards to health insurance and other benefits. By law, it is required that your company must keep you on its health plan for 18 months after a layoff, although you may have to pay the entire premium. It is also important to inquire to your spouse’s company in regards to joining your spouse in their insurance plan. Many employers consider a spousal layoff to be a life-status event (which means you can switch to their plan immediately), it's not a given and some will let you change plans only during open-enrollment periods.

It is important to prepare yourself in the current moment for an emergency in the future. Do not put off saving money or paying off your debt until a later time. The more you can do now to secure your financial status, the better off you will be in case of a financial emergency in the future.