to Improve Your Financial Situation
you are having trouble paying your debts, it is important to
take action sooner rather than later.
Doing nothing leads to much
larger problems in the future, whether it's a bad credit
record or bankruptcy resulting in the loss of assets and even
If you're in financial trouble,
then here are some steps to take to avoid financial ruin in
If you've accumulated a large amount of debt and are having
difficulty paying your bills each month, now is the time to
take action--before the bill collectors start calling.
Review each debt. Make sure that the debt creditors claim
you owe is really what you owe and that the amount is correct.
If you dispute a debt, first contact the creditor directly to
resolve your questions. If you still have questions about the
debt, contact your state or local consumer protection office
or, in cases of serious creditor abuse, your state Attorney
Contact your creditors. Let your creditors know you are
having difficulty making your payments. Tell them why you are
having trouble, perhaps it is because you recently lost your
job or have unexpected medical bills. Try to work out an
acceptable payment schedule with your creditors. Most are
willing to work with you and will appreciate your honesty and
Most automobile financing agreements permit your
creditor to repossess your car any time you are in
default, with no advance notice. If your car is
repossessed you may have to pay the full balance due on
the loan, as well as towing and storage costs, to get it
back. Do not wait until you are in default. Try
to solve the problem with your creditor when you realize
you will not be able to meet your payments. It may be
better to sell the car yourself and pay off your debt
than to incur the added costs of repossession.
Budget your expenses. Create a spending plan that allows
you to reduce your debts. Itemize your necessary expenses
(such as housing and healthcare) and optional expenses (such
as entertainment and vacation travel). Stick to the plan.
Try to reduce your expenses. Cut out any unnecessary
spending such as eating out and purchasing expensive
entertainment. Consider taking public transportation or using
a car sharing service rather than owning a car. Clip coupons,
purchase generic products at the supermarket and avoid impulse
purchases. Above all, stop incurring new debt. Leave your
credit cards at home. Pay for all purchases in cash or use a
debit card instead of a credit card.
DID YOU KNOW
that Sullivan & Company manages Pension Funds,
Retirement Plans & Taxable Accounts through Archer
Investment Corporation & Fidelity Investments for our
Fidelity is the custodian for more
retirement plans than any other custodian in the United
Let Sullivan & Company Analyze Your Asset Allocation
& Risk Tolerance for FREE!
Pay down and consolidate your debts. Withdrawing savings
from low-interest accounts to settle high-rate loans or credit
card debt usually makes sense. In addition, there are a number
of ways to pay off high-interest loans, such as credit cards,
by getting a refinancing or consolidation loan, such as a
Tip: Selling off a second car not only provides
cash but also reduces insurance and other maintenance
Caution: Be wary of any loan consolidations or
other refinancing that actually increase interest owed,
or require payments of points or large fees.
Caution: Second mortgages greatly increase the
risk that you may lose your home.
You can regain financial health
if you act responsibly. But don't wait until bankruptcy court
is your only option. If you're having financial troubles,
don't hesitate to call.
If you have any questions about the taxes, don't hesitate to
call the office if you would like more information or specific tax planning strategies this year. Help is just a phone call away at
Management at Sullivan & Co. CPAs
Sullivan leads our
Group and is here to help you navigate your
financial future. As Investment Advisor Representatives,
he and our Wealth Management team are able to provide an independent opinion on the
investments you already own or are considering buying.
We can structure a portfolio
based on your risk tolerance or we can help you decide how
to invest in your company 401(k) plan.
We work with each
client to identify their concerns and to provide solutions
according to their situation.
is also experienced in company retirement plans. If you own
a business that does not have a plan; we can discuss your
options and set up a plan that fits your company.
If your business already has a
plan; we offer a free evaluation of the plan to ensure that
it is up to date and working well for you and your
Our goal is to provide personal, unbiased and independent
advice to help you make well-informed decisions about your
financial life and investments.
Contact Chris Bailey, CPA, MBA, IAR or Ben Perron, CPA, IAR
or Paul Sullivan, CPA, IAR to set up a free
initial consultation (301) 657-8080.
And as always if you have any questions about accounting or
investments and how they effect you or your business, please
give us a call. We can help guide you in the right
you can call our offices if you have any questions about these
or any other accounting, tax, financial planning or insurance
related issues, at 301-657-8080.
Regards, Paul Sullivan, CPA, IAR
President, Sullivan & Company