Author: Christy Bieber

Unexpected car repairs can throw a wrench into your financial plans. If you don’t have the money to cover the costs, putting the bill on your credit card may seem like a good solution at the time. The problem is that credit cards have high interest rates, and your debt can snowball if you don’t pay enough to bring down your balance.

You’d be in a difficult situation if you had a $2,500 bill that grew to $4,900 and had no job. The good news is there may be a solution — here are a few things you can try to deal with your debt issues.

Take advantage of a balance transfer offer

A 25% credit card interest rate can make paying off debt almost impossible, especially if you can’t make extra payments to reduce the principal balance.

One option is to take advantage of a balance transfer offer. Depending on the card, this can set your interest rate to 0% for a limited time, such as 12 to 15 months. While there’s often a small fee for a balance transfer (usually around 3% to 4%), it’s added to your balance upfront. Then, every payment reduces the principal, so you make more progress on debt paydown.

You have to qualify for a balance transfer offer, which may be challenging if you have a low credit score. You must also be able to make at least the minimum payment and, ideally, bring your balance to $0 before the promotional rate ends.

It’s worth considering even if you can’t, as balance transfers don’t hurt your credit and can save you a lot of money.

Negotiate with your credit card company

Another option is to contact your credit card company. If you tell the card issuer you’re struggling, they may work with you to enter into a payment plan, reduce your interest rate, or even forgive a portion of the debt.

Card companies are most likely to work with you if you have missed payments and they think that you are in danger of not paying at all. Unfortunately, missed payments can damage your credit score. If you negotiate a payment plan with your card company and end up paying less than you owe, this can also hurt your credit.

While damage to your credit score is not ideal, working something out with your creditors may be the best choice if you have limited income, don’t expect to get a job for a while, or fear you won’t be able to repay all you owe.

An arrangement with your credit card company is better than bankruptcy and gives you some breathing room.

Ensure any arrangements are documented in writing and that you can afford any payment plan or lump sum you agree to. Debt settlement companies can help you negotiate with creditors, but their advice comes at a cost, so consider working out a deal first on your own before you seek professional help.

Budget for extra payments

Finally, consider reworking your budget. This will allow you to send extra money to your credit card and repay your balance. This is a good solution if you don’t qualify for a balance transfer card and don’t wish to negotiate with your creditors due to the potential impact on your credit score.

Your ability to include increased debt payments into your budget partly depends on your earnings. It might not work if you aren’t earning enough to cover essential costs and make extra payments, what may be the case if you’re currently unemployed. However, there are ways to make extra money, from starting a side hustle to selling unwanted items.

If you can increase your earnings and get serious about debt payoff, you can free yourself of this burden for good. Ultimately, your best option depends on what you can afford to pay both now and in the future, the state of your credit and your level of concern about your credit score.

This article I put a $2,500 emergency car repair on my credit card 2 years ago, but I have since lost my job — I now owe over $4,900 with interest of 25%. How can I get out of this mess?

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Baby boomers are set to drop a huge windfall on Gen X and millennials over the next 20 to 30 years.

However, before this deluge of wealth — to the tune of $72 trillion in assets — lands in the hands of the middle-aged generations, there’s another group of Americans in line to inherit the riches first: spouses and partners, principally women.

In this instance, the movement of money to spouses or partners has been dubbed the "horizontal wealth transfer” since the wealth isn’t changing generations — yet. A 2024 Global Wealth Report from UBS revealed that an estimated $9 trillion is going to transfer intra-generationally in the coming years, with the funds moving from one spouse or partner to another.

This means that, by 2030, this horizontal wealth transfer will likely have reshaped wealth management in the country — a landscape that has largely been dominated by men.

Here’s why this is happening — and what it means for the economy.

What does this wealth transfer mean?

For many wealthy baby boom couples, men are the primary decision-makers regarding money matters. McKinsey’s research shows that men make key financial decisions in two-thirds of all affluent households in the United States — while around one-third of financial assets across all households are currently under the control of women. That’s more than $10 trillion.

By 2030, however, their research shows women are estimated to control around three times that amount, or the majority of the $30 trillion baby boomers will collectively own at that time.

McKinsey’s report suggests this massive transfer of wealth to (mostly) women will be of "such magnitude that it approaches the annual GDP of the United States."

If you expect to inherit a substantial sum from your spouse, proper financial planning goes a long way toward managing your wealth and securing your future.

Arta Finance is a comprehensive wealth management platform and digital family office that can take care of your needs.

Accredited investors can invest in alternative assets, including private equity and hedge funds — all in one platform. You can also benefit from tax and estate planning services and private investment advisory services under Arta’s family office services.

Sign up and create an account in just two minutes and get the first $100,000 worth of assets managed free for life.

When women take control of wealth after their partners’ deaths, it will affect the global financial economy. Data shows women are more likely to seek professional financial advice, are less risk tolerant when it comes to investing, and are more likely to give money to groups supporting women.

Estate and taxes

One of the biggest challenges Americans will likely face is navigating the complexities of estate planning.

If you or your family members don’t have a will in place, you might have to pay exorbitant probate fees and other charges. Not to mention, family disputes over inheritances can cause rifts between loved ones, in addition to the financial strain.

Plus, if you inherited under intestacy laws rather than through a will or trust, or if your current will leaves everything to your now-deceased partner, estate planning should also be a top priority after you inherit a windfall.

Also consider that estate taxation laws differ between states, which might be difficult to deal with without having a will or living trust.

LegalZoom is an online platform that can help you avoid these issues, helping you create an estate plan at an affordable price.

On their platform you can create a will and living trusts, grant power of attorney, and provide advanced health care directives. Their simple and cost-effective process means you can bypass the need to find, hire and pay for a lawyer the old-fashioned way.

You can create a basic will for as little as $99 by answering a few quick questions, reviewing and verifying the information in the documents created by LegalZoom, (either by yourself or with a lawyer), and then signing.

Plus, if you are unhappy with LegalZoom’s services, you can request a full refund within the first 60 days.

Creating a careful plan for how to distribute funds among children, grandchildren, and other beneficiaries is essential.

Making the right financial moves will ensure that – if you benefit from the horizontal wealth transfer – you can preserve inheritances until you’re ready to pass along this wealth to the next generation.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Countless Americans are chasing the dream of one day becoming rich. But at some point in the race, many of them come to find there’s an important difference between being rich and feeling rich.

Let’s say you’re a surgeon, married, in your late 40s and your household brings in a tidy $573,000 each year. Considering that the median income in the U.S. was $75,149 between 2018 and 2022 — based on U.S. Census Bureau data — you’re doing pretty good. More than good.

At this point, you shouldn’t feel broke — especially if you’re working with a financial adviser who should be helping you to make smart decisions to use all that money as wisely as possible.

But if you are struggling, it’s worth looking at whether your adviser could be doing you a disservice, either by steering you in the wrong direction or by charging you unreasonable fees.

Not all financial advisers are created equal

Whenever you place your finances in the hands of someone else, you take a risk — but the risk is greater with certain kinds of advisers.

First and foremost, if your adviser isn’t a fiduciary, you could have a problem. A fiduciary has a legal duty to act in your best interest and give you advice that’s right for you. Someone who is not a fiduciary doesn’t have the same strong legal obligations.

It may come as a surprise, but not all people who bill themselves as financial advisers have fiduciary status. Some professionals, like Certified Financial Planners, are held to a fiduciary standard but many individuals can offer financial advice even if they don’t have this special designation.

You’ll also want to see what licensing your adviser has. Ideally, you’ll want someone with independent certification, such as a CFP or a chartered financial analyst. Advisers who are licensed by independent agencies are typically held to higher ethical standards and have had to undergo specialized training and complete exams.

Finally, you’ll want to find out how your adviser charges. If they work on commission, this can create a conflict of interest because they may be tempted to steer you into investments that earn them the most money even when those investments aren’t actually the best ones for you.

Your adviser will ideally be fee-only and will charge you a predetermined, agreed-upon fee for managing your assets. AdvisoryHQ reports that the average adviser fee for someone with $1 million in assets came in at around 1.02% in 2023. If your adviser is charging much more than that, their fee structure may be unfair.

What to do if you suspect your financial adviser is ripping you off

If you’re concerned about whether your adviser is ripping you off, ask to see your account statements, a summary of your transactions, and a summary of what you’ve paid to your adviser. You should also ask them if they’re acting as a fiduciary.

If they say they aren’t a fiduciary, then at a minimum you should change advisers to one who is. If they’re unwilling to provide the documents you’re asking for, this is a major red flag and you may want to get legal help to recover your records and potentially take action if fraud is found.

Once you have your financial details in front of you, review the information carefully to see where your money is going, what fees you’re paying, and what ROI you’ve earned. Ask any questions you have to get to the bottom of why you don’t feel rich when you’re making so much.

Ultimately, whether it’s lifestyle decisions you’ve made or bad investments, you should have plenty of money to save, grow your wealth and live a comfortable life on an income of $573,000. If you aren’t doing that now, consider looking for a different licensed, fee-only adviser who can help you make a better plan for your financial future.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.