INDUSTRY INSIGHT
Your Finances
SPONSORED CONTENT
C O V E L L I L AW O F F I C E S , P. C .
Making Money Sense
A
lthough money certainly isn’t everything, when you
don’t have any, it can take on an inflated significance.
Protecting your finances is more important, and yet more
complicated, than ever before in today’s world of cyber
banking and online account hacking. And if you’re lucky
enough to avoid having your money stolen by a computer
hacker, you may fall prey to enticing credit card offers or
consolidation loans which will only mire you deeper in debt.
One of the first calls you should place before making any
financial decision is to a reputable, trusted attorney. Before
signing any loan agreement or making major purchases such
as a home or business, have your attorney review the contract.
It’s much easier to review the contract before signing than to
try to rectify the situation through litigation later.
A word about consolidation loans
Although the prospect of paying off your bills with a
consolidation loan may sound attractive, they will only be
paid for a moment. The bill will arrive shortly—and the
consolidated loan carries a hefty price tag. These loans
merely exchange unsecured debt, such as credit cards, for
secured debt, such as your house. It is never a good idea to
mortgage your home to pay for credit card debt. A good
attorney may help you save years of financial hardship.
Reverse mortgages – reading between the lines
This increasingly popular type of loan most often attracts the
elderly with the promise of freeing up their home’s equity
in the form of monthly payments. What’s less publicized is
the fact that the homeowner will likely still be responsible
for property taxes, maintenance and insurance on the home.
Before giving up your most valuable asset, which you’ve
worked years to acquire, spend an hour with your attorney
who can give you an honest assessment of what to expect
with a reverse mortgage.
The allure of deferred payments
Another appealing option is to buy a washer now, with
a price tag that reads, “Make no payments until August.”
Consumers will often snap up these purchases, convincing
themselves they will “have more money
later” or that “in a few months,
money will not be as tight.”
Unfortunately, this is seldom
the case, and when the due
payments start to roll in,
families can find their budget
strained beyond their means.
Bankruptcy – the dreaded option
When individuals buy into tempting credit schemes, they
can often find themselves with more money going out
than what’s actually coming in. At this point, it may be
time to consider bankruptcy. Just the sound of the word is
formidable and, to be sure, bankruptcy is not a get-out-ofjail-free card. Due to new government restrictions, there are
requirements that must be met to be eligible for filing.
It can sometimes be the best solution for a fresh start,
moving forward with wiser financial decisions. Your attorney
can best advise you if bankruptcy is a viable option in your
particular situation.
Identity theft – the personal crime
Many times, identity theft is carried out by someone we’ve
never met who lives in another state or another country. But
just as frequently, your finances can be drained by a close
personal friend or relative. Those closest to you have access to
your personal records, they know your birth date, and already
have your address memorized. When the unthinkable
happens, the situation requires acting with lightning speed
to minimize financial loss. Accounts must be shut down
immediately and businesses and credit card companies must
be notified. Although you can do this yourself, an attorney
can be more thorough in ensuring that every gate has been
closed, as well as providing legal documentation of your
attempt to resolve the situation in a timely manner. An
attorney is an invaluable teammate in helping you to deal
with banks and other financial institutions at a time when
you may be feeling especially vulnerable.
For more information on protecting your finances,
contact Covelli Law at 412.653.5000 or visit the website at
CovelliLaw.com.
We are a debt relief agency that helps people file for relief under
the U.S. Bankruptcy Code.
This Industry Insight was written by Joe Covelli, owner of
Covelli Law Offices.
Joe Covelli is an award-winning attorney with 32 years’
experience in helping families through various life transitions. For
more information, please contact the law firm at 412.653.5000,
or visit the website at CovelliLaw.com.
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West Jefferson Hills | Spring 2014 | icmags.com 1