Asset Protection

Liability & Assets

ASSET:

Something that you own, such as equity in your home (equity is the difference between what the house is worth and what is owed on it.), jewelry, furniture, cash, investments etc. Use the current market value to figure out the value.

FIXED ASSETS:

This includes equity in your home or investments, retirement accounts, personal property and vehicle value.

LIQUID ASSETS:

This includes cash, savings, checking account balances, stocks, bonds, mutual funds etc. Items that you can “liquidate” quickly.

LIABILITIES:

All those items you owe money on – credit cards, house mortgage, cars, boats, toys etc.

NET WORTH:

How much money or assets you have AFTER you subtract your liabilities.

FINANCIAL STATEMENT (Score Card):

Itemized listing of all assets and liabilities. This is your new report card.This is the course you want to pass with EXTRA CREDIT!

Additional Asset & Liability Resources
 

Good Debt, Bad Debt

BAD DEBT

Over 50% of all credit card debt in America is personal debt.
Some problems associated with making payments today for items bought yesterday.

•  When you are in debt, you are working for someone else.

•  You restrict or stop investing in yourself and your future.

•  The freedom to change jobs, career or location is limited or lost.

•  Being in debt creates stress and pressure both mentally and     physically.

•  The sense of being in control of your life is diminished.

DEBT can be as destructive as any drug. Marriages are ruined, hope for a better future is diminished, as well as personal freedom.
BAD DEBT IS TO BE AVOIDED AT ALL COSTS!

GOOD DEBT

Essentially, good debt is when you are borrowing to buy assets and NOT liabilities.

Insurers use credit scores to price car insurance

Auto insurance companies now think your credit score is an important indicator of whether or not you are a safe driver. Some say it carries more weight than your driving record.
More than half of all auto insurers are believed to use credit scoring in setting insurance rates. A spokesman for Allstate Corporation says it helps them keep the cost of insurance low and allows for a more fair underwriting structure.
Consumer advocate groups object to the practice, saying credit scores reward some groups of consumers more than others. They say insurance should be rated by the driving record, not what a person's income level might be. The Consumer Federation of America is urging Congress to rule against the practice. About 20 states have introduced legislation to prohibit or restrict the use of credit scoring, and several have ruled that it cannot be the sole factor in premium or underwriting decisions. Arkansas has banned the practice entirely.
A driver who paid cash for everything, paid on time, and had a perfect driving record, said her insurance cost rose because she had no credit history.
Insurers say credit scoring provides a consistent, reliable tool to evaluate the risk of insuring someone, and it is not discriminatory.
A credit score is based on outstanding debt, length of credit history, late payments, collections, bankruptcies, and new applications for credit.

 

Additional Good Debt / Bad Debt Resources