Matthew Dunaway's online newsletter for August 2018
www.matthewdunaway.com · 205-705-3590
August 2018
THE REAL DEAL Stop Making Decisions Based on the Nebulous
When new clients sit down to talk to me, they often have one very important question: Will I ever have credit again after bankruptcy?
What I call “the nebulous,” other people may call “the abstract” or “virtual,” but it all means the same thing: not real. When I call a credit score nebulous, I’m saying it’s not real, at least not compared to the factors that do have a say in your financial situation. Rather than ask, “Will I have credit again?” it’s better to ask, “Will I be able to pay for groceries?” because that’s what really matters. Bankruptcy offers a fresh start to recover your financial health, but you need to use that fresh start wisely. The number on your credit score is far less important than the number on your bank account, and whether or not that number is enough to pay for groceries, make your house payment, fill your car up with gas, and pay for life’s other necessities. Your income is real. Your bills are real. Your credit score is not real, nor does it give an accurate picture of your financial state. I have met people who walked into my office with beautiful scores of 700 or 800 but were in a terrible financial situation. Each month, they pulled in more debt, using credit cards to keep their score up and just barely managing to skate by. They are only able to keep their balancing act going for so long, and when it comes crashing down, they’ll have a lot of work cut out for them. I’m not saying you should ignore your credit score completely. Few people can pay for a house for their family to live in with just cash. Some
The short answer is yes.
Here’s the long answer: If you want to keep from falling into this situation again, you need to change your mindset from dwelling on the nebulous to focusing on what’s real.
debts are necessary and credit can help with that. But the state of your credit score should mean less than whether or not you will actually be able to afford that mortgage payment. Please note that I never said changing your mindset is easy. Every day, we’re bombarded with the mantra of credit: “Buy now. Pay later.” It’s easy to become accustomed to it. We say yes to every store credit card because it “saves 20 percent today,” but, like a fish hook, if you try to get that sucker out, it hurts. We cannot live without ever taking on debt, but we can be mindful about what debt we incur. Prioritize what’s real over the nebulous, and you can start to change your mindset for the better.
Bankruptcy offers a fresh start to recover your financial health, but you need to use that fresh start wisely.
At some point, a person’s credit score became the be-all and end-all to their financial situation. But why do we let a number that we never asked for have such control over us? A credit score isn’t going to pay for groceries or help us get out of debt. In fact, the only thing our credit score can do is help us get into more debt! How is that a good deal?
Call today – 205-705-3590 1. –Matt Dunaway
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Protect Your Children During Their Commute Transportation Safety Tips
With the school year fast approaching, families are in preparation mode. Parents are busy buying new clothes and school supplies and thinking about the best way to get their kids safely to school. Keeping your child safe on their commute starts with knowing the transportation method that works best for you and the rules that accompany that method.
Sudoku Young Pedestrians on the Road Whether your child is biking, walking, or even skateboarding, it’s vital that they know and follow the rules of the road. All children should Taking the School Bus According to the United States Department of Transportation, the school bus is the safest means of transportation to and from school. Buses are built to withstand a hit and distribute the damage throughout the vehicle, keeping its passengers safe and sound. Knowing basic bus safety will help kids be mindful when taking the bus. Before the school year starts, take your children to the bus stop and show them where they should stand when the bus approaches — a minimum of three large steps or 6 feet from the street. Tell your kids about the importance of sitting still and not standing inside the bus while it’s in motion.
practice road safety behavior, such as riding on the right side of the road, wearing helmets, stopping at stop signs, and watching out for cars. Internalizing these habits will help them stay aware of their surroundings when traveling to and from school. Sharing the Road When school starts, the roads become even more cluttered than usual. On top of people heading to work, there are large buses making frequent stops, parents rushing to drop their kids off, and young kids biking or walking to school. With the added tension on the road, it’s important to be alert and move cautiously. Slowing down in school zones or around young pedestrians will keep you vigilant and could potentially save lives. Teach your kids to be prepared and safe on the road to ensure that they have a healthy and safe school year.
Will I lose my car if I file for bankruptcy?
Most people who file for bankruptcy do NOT lose their car, because they either owe money on the car or the car is not worth the bankruptcy trustee’s time and effort to sell. It’s important to talk to your bankruptcy attorney about ALL your vehicles, how much they are worth, and how much you owe on them.
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Why Lenders Want to Do Business After Bankruptcy A HOT COMMODITY
2. You’re locked in for eight years. In almost any business, the best customers are the ones you know will stick around for a long time. This applies to lending organizations, who would like nothing better than to only lend money to people who will have no choice but to spend the next several years paying it back. So it’s no wonder lenders extend offers to people who have just gotten out of a bankruptcy. After you file for bankruptcy, you cannot file again for another eight years. Lenders know you aren’t going anywhere and will happily give you money with the assurance that they don’t have to worry about another bankruptcy wiping away your debts for the next eight years. If you are thinking about filing for bankruptcy but are worried about not being able to rebuild your credit, rest assured that lenders will give you plenty of opportunities to improve your
When filing for bankruptcy, many people worry about their credit — mainly, how they will get any credit with a bankruptcy on their record. Loans and credit cards have become so cemented in our lives, people can’t imagine how they’ll survive when lenders start to turn them down after a bankruptcy. But the reality is a lot of lenders seek out individuals who have just gotten out of a bankruptcy case for two big reasons. 1. Your outstanding debt is gone. After a bankruptcy, you may not have good credit, but you also don’t have much outstanding debt. Almost all of your debt has been wiped away, and your debt-to-income ratio looks good. This is great news to a lender because it means your income will go to paying them back, rather than competing with a bunch of other debts.
score — at higher interest rates, of course. But there are more immediate concerns you need to consider when filing for bankruptcy. An experienced bankruptcy attorney can help you navigate this complicated area. Give Matthew Dunaway a call at 205-705-3590 and get the answers to your pressing questions.
Summer Grilled Halibut Recipe of the Month
Good News
If you’re tired of grilling hamburgers at this point in the summer, try using your grill for something a little different. This easy halibut recipe is a great change of pace.
Proverbs 3:5-6 Trust in the Lord with all your heart, and do not lean on your own understanding. In all your ways acknowledge him, and he will make straight your paths.
Ingredients • 4 boneless, skinless halibut fillets, about 5 ounces each • 1/4 cup olive oil, plus extra for drizzling • 1 lemon Instructions 1. Lightly oil grill grates and heat grill to medium. 2. Grate 1 teaspoon lemon zest onto halibut fillets. Drizzle with olive oil and season with salt and pepper. 3. Grill halibut, turning just once, for about 5 minutes on each side.
• 2 pounds mixed tomatoes, sliced • 1/2 cup hearts of palm, drained • Basil leaves, for garnish • Kosher salt and black pepper, to taste
4. In a mixing bowl, combine tomatoes, hearts of palm, juice from lemon, and oil. Season with salt and pepper. 5. Garnish salad with basil. Spoon salad over grilled halibut. Serve.
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NSIDE Your Credit Score Isn’t Real ........................ page 1 Keep Your Kids Safe on the Way to School ............................................... page 2 Q&A With Dunaway ..................................... page 2 Why Lenders Love Bankruptcies ................ page 3 Summer Grilled Halibut .............................. page 3 Those Who Don’t Learn From History ......... page 4
‘A History of the American People’ by Paul Johnson A Page FromMatt’s Bookshelf
Today, I want to talk about a history book, but not one that’s like any book you read in high school. In my opinion, Paul Johnson’s “A History of the American People” is the best volume on American history ever written, and not just because Johnson is my favorite historian. Clocking in at over 1,100 pages long, “A History of the American People” isn’t what you’d call light reading, but it does provide tremendous insight into not just the story of the United States, but the story of the people who call themselves Americans. From the earliest settlers to the end of the twentieth century, Johnson aims to reintroduce Americans to the amazing details of American history and culture. As we put a greater emphasis on looking to the future, we come in danger of forgetting our heritage and trying to erase parts of our
history. I believe that’s a mistake. You have to look at the good and the bad. The reason we read history is to understand why things happened and what it was like for the people book includes letters, diaries, and recorded conversations, each reminding the reader that these historical who lived through them. Much of this records were once current events real people lived through. Democracy, slavery, war, independence
— Johnson doesn’t shy away from the good or the bad. He presents it all, empowering the reader to take this knowledge and use it to inform their future decisions. “The History of the American People” is a great starting point for anyone over the age of 15 to refresh their understanding of American history — our history. As Johnson states, “The creation of the United States of America is the greatest of all human adventures.” I believe this is an adventure we could all stand to know a little more about.
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