Tag Archives: Brenda Long

How much will health insurance cost me in the Marketplace?

3-bottom, Area Education, Citizen Journalism, How-To's,

By Brenda Long, Michigan State University Extension


How much will health insurance cost in the Marketplace? This seems to be a big question for many consumers. The Affordable Care Act mandates that most people are insured either through their employer or by purchasing their own policy.


Two online calculators may assist consumers estimate the cost of their health insurance premium as they comparison shop different health insurance plans. You can get into the Marketplace web site www.healthcare.gov to use a price estimator for your state and county. You can also see the available plans and premiums before any subsidy without setting up an account.


You can also use the Kaiser Family Foundation Subsidy Calculator. With this calculator, you can enter your zip code, different income levels, ages, family sizes and tobacco use to get an estimate of your eligibility for subsidies and how much you could spend on health insurance in the Marketplace. Income, age, family size, geographic location and tobacco use are the criteria the Marketplace uses to determine premiums for your eligible health insurance plans.


As premiums and eligibility requirements may vary, contact these resources with enrollment questions:

I have heard from a local Navigator that some folks that have successfully enrolled through the Marketplace have been pleasantly surprised with the affordability of the health insurance plan they chose.


For more answers to your questions about health insurance, go to Health Insurance FAQs – eXtension. Also see previous news articles about health insurance choices on the Michigan State University Extension website.


This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).


Affording health care costs: Part 3

3-bottom, Citizen Journalism, Community Health, Health, How-To's, Senior Living, , ,

By Brenda Long, Michigan State University Extension


You have health insurance, but not all expenses are included in the insurance premium. Doctor visits, medicine, braces and glasses are some expenses you may have to pay. The good news is there are ways to manage your health care costs to save money. This article will focus on health Flexible Spending Accounts (FSAs). Also, look for related articles on reasons to have health insurance (Part 1) and health savings accounts (Part 4).


Setting money aside to manage health care expenses helps reduce your need to use credit to pay medical bills and reduces your concerns that you can cover a bill, according to the University of Maryland Extension. You can save money in your emergency fund. You might qualify for a health Flexible Spending Account (FSA).


Health Flexible Spending Accounts allow you to contribute pre-tax dollars and then be reimbursed for qualified medical expenses based on IRS code. FSA accounts are only offered through employer’s benefits plan packages; you cannot open one as an individual consumer. Typically, you enroll once a year during your employer’s open enrollment season. The amount you choose is automatically deducted from your paycheck and is placed in an account managed by a third-party agency.


You choose the amount to save, up to certain dollar limits. It is important to plan carefully and not put more money in your FSA than you think you will spend during the year on things like co-payments, coinsurance, prescriptions and other allowed health care costs. Otherwise you may lose any money left over in your FSA.


How do you figure out how much to contribute? A good place to start is to calculate your out-of-pocket expenses for the past year. You can get this information from receipts, looking at your explanation of benefits, or obtaining a print out from your doctors’ offices and pharmacy for all visits and prescription purchases. Use the worksheet or online health care cost calculator.

Other articles in this series:

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).


Health insurance shoppers beware: Smart decisions to pick a plan on more than just premium costs

3-bottom, Community Health, Health, How-To's, Senior Living, ,

By Brenda Long, Michigan State University Extension


Making a health insurance plan choice can be confusing. You may be tempted to select the lowest premium you can find. However, it is important to look at more than just the monthly premium. This article will focus on some positive actions you can do to evaluate your current needs, finding the right plan for you, and affordability.


Many people enroll in the marketplace in silver and bronze plans with the lowest premium. But for patients with regular health care needs, much of their annual health expenses are also determined by the cost-sharing structure of the plan they select. AARP has created a free, online calculator, which is easy to use, helps people have a better understanding of their health care costs to decide about insurance marketplace options, and find coverage that meets their individual health care and budget needs. The free calculator shows how an individual’s total annual health care spending can vary based on plan selection.


Depending on your household income and health needs, a plan that has a higher monthly premium but offers better coverage could be a smarter choice. That is why it is worth the effort to accurately review the last year’s medical expenses. Next year may be different, but some needs can be projected.


In the marketplace, you may be eligible for tax credits or cost-sharing premium discounts. Tax credit subsidies are available to eligible individuals and families with incomes below 400 percent of the federal poverty level. Use this calculator from the Kaiser Family Foundation to estimate your subsidy.


But the cost-sharing discount applies only if you buy a silver plan. This is another reason the cheapest plan isn’t always the best. People buying a silver plan with incomes below 250 percent of poverty lower the amount they pay out of pocket for deductibles, coinsurance, and co-payments with a cost-sharing reduction discount. Go to Healthcare.gov to check out the plans in your area.


Doctor visits, medicine, braces and glasses are some expenses you have to pay for beyond an insurance premium. The good news is there are ways to manage your health care costs to save money. Also look for related articles on reasons to have health insurance (Part 1) and special health savings accounts (Parts 3 and Part 4).


This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).


Health insurance can help you afford health care costs: Part 1

3-bottom, Citizen Journalism, Community Health, Health, Senior Living, ,
Photo by office.com

By Brenda Long, Michigan State University Extension


Health care can be costly. Doctor visits, medicine, braces and glasses are some expenses you have to pay for beyond an insurance premium. The good news is there are ways to manage your health care costs to save money. This article will focus on four personal and financial reasons to have health insurance. Also look for related articles on smart choices to pick health insurance plans and special health savings accounts.

My Smart Choice Health Insurance states four reasons why health insurance is important.

Peace of Mind

If you do not have health insurance, check it out. You may be surprised at the affordability. Many Michigan residents who selected plans through HealthCare.gov are getting financial assistance to lower monthly premiums. Others were determined eligible for Medicaid, the Healthy Michigan Plan, or MiChild. Take the first step and find out how much financial help for which you could qualify. So you may pay now with some peace of mind if you get sick or injured, or pay later with no benefits.

Financial Protection

Health insurance helps protect your family’s financial future. Health insurance helps pay costs when you need care and protects you from very high medical expenses. You may not feel that you need health insurance right now — health insurance is for helping manage risks — in this case potential future health problems.


In 2013, over 20 percent of American adults were struggling to pay their medical bills, with three in five bankruptcies due to medical bills. Sometimes we are quick to blame debt on poor savings and bad spending habits. However, research shows the burden of health costs causing widespread indebtedness. Medical bills can completely overwhelm a family when illness strikes,” says Christina LaMontagne, VP of Health at NerdWallet. Furthermore, 25 million people hesitate to take their medications in order to control their medical costs. Unfortunately, this can lead to even worse financial outcomes as preventive treatments are not rendered and patients end up using expensive ambulance and ER care as their health worsens.

Prevention Services

Many health insurance plans offer services and programs to help keep you healthy, thus saving you time and money over time. The Affordable Care Act includes free preventative benefits for adults at no cost to you, without charging you a copayment or coinsurance. This is true even if you have not met your yearly deductible. In addition to annual wellness visits, some plans also offer benefits such as personal wellness coaching, healthy pregnancy programs, gym membership discounts, nutrition counseling, online seminars/webinars, checklists, tools and calculators.

Better Health Outcomes

If you and your family have adequate insurance coverage, based on your health care needs and wants, and use your health insurance as it is intended to be used (prevention visits, immunizations, etc.), this can lead to overall better health for everyone. Even if you have a pre-existing health condition, you cannot be turned down or charged more for health insurance.


Open Enrollment in the Marketplace is in the fall. Consumers should visit HealthCare.gov to check the dates, review and compare health plan options. If consumers who were automatically reenrolled decide that a better plan exists for their families, they can make that change at any time before the end of open enrollment. If income and family size indicate eligibility for a government health insurance plan, you will be redirected to that enrollment site.


Consumers can find local help at Localhelp.healthcare.gov. You can also call the Federally-facilitated Marketplace Call Center at 1-800-318-2596. TTY users should call 1-855-889-4325. Translation services are available and the call is free.


In summary, three key reasons to see what you qualify for are that 1) There are different types of plans available so you can find coverage that meets your needs and budget, 2) Preventive care is free, including cancer screenings and wellness checkups and 3) Quality care no matter what. You cannot be turned down or charged more for being sick or having a pre-existing condition. Take the first step to check out how much financial help you could receive. Then make your informed enrollment decision.

Other articles in this series:

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).


Prioritize which bills to pay

3-bottom, Citizen Journalism, How-To's, , ,

By Brenda Long, Michigan State University Extension


Some bills are more important than others are. To aid your family’s decision-making process, consider the following questions on the University of Illinois Extension Getting Through Tough Financial Times website:


Do you feel you are buried under with debt from child support, back taxes, student loans or credit cards? You have some choices. After creating your spending plan, you need to decide which bills you should pay first and the amount you should pay. You are legally obligated to pay all your bills. However, you can determine the priority you need to pay and how much you should pay on each. You can work with your creditors, as they may be able to reduce some of your payments.


Do you owe child support, back taxes or student loans?

  • Failure to pay child support can be serious: you may be held in contempt of court, have your driver’s license revoked, have liens placed on your property, have your tax refund intercepted or be ordered to jail. You may be able to get the child support order modified. If you don’t get the order modified and fail to make payments, you are responsible for all unpaid support obligations plus interest. Contact Friend of the Court in Michigan or your county child support office for more information.
  • If you owe unpaid income taxes, the Internal Revenue Service (IRS) may seize your paycheck, bank account, house or other property. If you can’t pay the total amount due, contact the IRS to request a monthly repayment schedule. Also contact a reputable tax professional about other options.
  • Federal student loan payments can be deferred (no payments required) during periods of unemployment or financial hardship. You can’t qualify for a deferment once your student loan is in default. For more information on student loans, visit the Federal Student Aid, MyEdDebt.com and Student Loan Borrower Assistance. Interest you pay on student loans during the first 60 months after you begin loan payments may qualify as a tax deduction.

Do you have outstanding balances on credit card accounts? What should you pay first?


According to the National Consumer Law Center book on Guide to Surviving Debt,

  • Medium-priority Debts: Government student loans are medium-priority debts.
  • Low-priority Debts: Loans without collateral are a low priority. Collateral is property that a creditor has the right to take if you do pay.
  • “Unsecured” debts are a low priority and include most credit cards; attorney, doctor and hospital bills; and open accounts with merchants.
  • Do not move a debt up in priority because the creditor or collector threatens to sue you or to ruin your credit record; they may use threats as a tactic to get you to pay. Check your state debt collection laws for more information.

Do you make the minimum monthly payments on your credit cards? This will keep accounts current and avoid negative impacts on your credit report. However, paying only the minimum will increase your finance charges and extend the time it takes to pay off the balance. Compare and negotiate interest rates to ensure you pay the lowest rate. Stop using your cards until your situation improves. Contact a nonprofit consumer credit counseling service if you are having difficulty paying your bills. One such service is the National Foundation for Credit Counseling. Contact them at 1-800-388-2227.


Michigan State University Extension has released a toolkit for homeowners who are experiencing or have previously experienced foreclosure. This toolkit will equip these individuals and families with tools to help them recover their financial stability, in the case that a recovery of their home is not possible. The toolkit is available to download free at MIMoneyHealth.org.


Michigan State University Extension is a HUD-approved housing counseling agency has many MSHDA-certified housing counselors at multiple county offices to assist you by phone or through technology. Find the one staff person nearest you on the MI Money Health website. MSHDA certified Housing counselors may be located online.


To contact an expert in your area, visit the website, or call 888-MSUE4MI (888-678-3464).


Other articles in this series:


Which bills should I pay first in a financial crisis


This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

Which bills should I pay first in a financial crisis?

3-bottom, Citizen Journalism, How-To's, , ,

By Brenda Long, Michigan State University Extension


Do you find yourself making tough choices about which bills to pay in tight months? In Michigan, 14 percent of individuals reported that in 2015, their household spent more than their income (not including the purchase of a new home, car or other big investment), according to the National Financial Capability Study. This same study reported 18 percent of individuals have medical bills that are past due. If you are struggling to make ends meet, you can prioritize based on what might happen and decide which bills are the most important to pay this month. This article contains recommended steps and suggests several possible strategies.


Gather your bill statements and overdue notices, including any letters from creditors. There are three steps you should take, according to Behind on Bills from the Bureau for Consumer Financial Protection.

  1. Understand the risk of not paying certain bills now. What things do you need to keep or get a job, like transportation, childcare, tools or work uniform? To stay housed and keep your utilities connected? What insurance do you need to pay for, including car, health, home or renter’s insurance? Do you have other important financial obligations, such as court-ordered child support, other loans or credit cards?
  2. Assess the pros and cons of your situation. Remember that the costs of losing a place to live add up fast and can make it harder to find a new one. Also, consider consequences, legal or otherwise, of delaying payment. For example, credit card companies might raise your interest rates if you pay more than 60 days late.
  3. Prioritize your bills. You are responsible for all your bills. If you cannot pay all of them at once, decide the payment order from highest to lowest priority. Keep in mind, if you fall behind on secured debt payments, you can lose your house or car.

Next, you can create an action plan to make this month’s most important payments. Use the Personal Monthly Budget spreadsheet or another budgeting tool to list your income and monthly expenses like rent or mortgage, utilities, transportation, education, childcare, cell phone and groceries. How much do you have left to use for debt payments? How balanced are your income and spending?


Now that you see your personal budget numbers, decide on your strategy. Here are five possibilities to consider.

  1. Look at each line item and ask yourself if you can increase income as well as if you can decrease or eliminate some expenses.
  2. If you have to miss a payment, you can try to call the creditor to tell them why and work out a short-term agreement. For example, are they willing to forgive an occasional fee?
  3. If a certain bill is difficult to pay because of the due date, try to negotiate a new due date which better lines up with the dates you receive your income or benefits.
  4. Another strategy is to rotate the bills you pay each month. While this is not ideal, it can prevent serious consequences such as losing your car or house, having a utility shut-off, or defaulting on a loan.
  5. Find out if there are local resources to turn to for help. Those listed below are in Michigan:

Setting goals and planning to pay your bills on time are best practices to help make your financial hopes and dreams come true. Having a monthly budget shows your sense of control to understand your situation and make your action plan. And you will save money by paying down debt to avoid the interest costs from borrowing on credit. Financial planning takes time, patience, and discipline. Find more information about making money decisions and to learn about educational events in your area at MIMoneyHealth.org.


This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

How to avoid foreclosure

3-bottom, How-To's, ,

By Brenda Long, Michigan State University Extension


Many distressed homeowners had poor experiences during the mortgage crisis, including runarounds and surprises. In response, mortgage servicers must do a better job and comply with the new federal loss mitigation procedures implemented by the Consumer Financial Protection Bureau (CFPB) in 2014. The rules are designed to provide consistent and meaningful protections for borrowers. 


Only the five servicers who were part of the National Mortgage Settlement (See my related articles from April 9 and April 26, 2013) must comply with the CFPB procedures. The five Servicers are Ally/GMAC, Bank of America, CitiMortgage, JP Morgan Chase and Wells Fargo. The new rules do not apply to small servicers and community banks.


Servicers: Before foreclosing by advertisement, these five servicers must now do all of the following:

  • By 36 days after a homeowner misses a payment or cannot pay the full amount, the servicer must make a good faith effort to establish contact by telephone or at an in-person meeting.
  • If the borrower’s situation calls for it, the servicer must tell the borrower about loan modification or workout options available.
  • By 45 days delinquent, the servicer must send a written notice to the borrower encouraging the borrower to contact the servicer that contains the name, address, phone number and e-mail of assigned employees responsible to help them avoid foreclosure. The correspondence must also contain information about how to find a housing counselor.
  • After 45 days late, periodic or monthly mortgage statements must include a “delinquency box,” containing information on the possible risks the borrower faces, the amount needed to bring the loan current, how to find a HUD-approved housing counselor and any loss mitigation programs the borrower has already agreed to.
  • Only after 120 days of late payments can a mortgage servicer make a first notice or filing for foreclosure. This gives the borrower time to learn about workout options and file an application for mortgage assistance. If the borrower has already submitted a complete application, the foreclosure process may not begin while the Borrower is being evaluated for a loss mitigation plan. This provision restricts Dual-Tracking, which hurt many consumers who thought they were working out a resolution with their banks and were shocked to learn of a scheduled foreclosure sale.
  • If a loss mitigation application is received at least 37 days before a foreclosure sale, Servicers must review and respond to the borrower within 30 days. If the sale is more than 45 days away, servicers must inform the borrower if the application is complete within 5 business days of receipt.

Borrowers: The earlier that borrowers seek help, the more protections they have under CFPB rules:

  • Borrowers have the most protections if they submit a complete application for mortgage assistance within 120 days of the first missed payment. The servicer is not allowed to start a foreclosure process during those 120 days. There is no deadline to apply, but the sooner the better.
  • If a borrower submits a complete application 90 or more days before a scheduled foreclosure sale, the servicer must give the borrower at least 14 days to accept or reject an offer of a loss mitigation option. Plus, in this timeframe, the borrower may file an appeal of a denial for any loan modification within 14 days.
  • If the borrower submits a complete application for loss mitigation options 45 days or more before a scheduled Sheriff’s Sale, the servicer must send a written notice to the borrower encouraging the borrower acknowledging the receipt of the application within 5 business days. If the application is not complete, the servicer must tell the borrower what additional information and documents must be provided. If the borrower’s application is less than 45 days before a foreclosure sale, the borrower is not entitled to a written notice that their application has been received.
  • If the borrower submits a complete application 37 or more days before a scheduled foreclosure sale, it will be evaluated for loss mitigation options. The servicer must give the borrower written notice of the decision.
  • When servicers deny a borrower for a loan modification option, they must give specific reasons for the denial for each available modification option.
  • Borrowers who sought help before and were rejected may apply again for an evaluation under the new rules. Their complete application must be filed more than 37 days before a scheduled Sheriff Sale.
  • Consumers may file a complaint about mortgages with the CFPB. Call 855-411-2372 (CFPB) or online at http://consumerfinance.gov/complaint.

Some Michigan State University Extension offices have HUD-approved housing counselors who offer the housing counseling requirement. Find one near you at http://www.mimoneyhealth.org/contact_us to call for an appointment in person, by phone or online. In other areas, find a HUD approved housing counselor. 


This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

Five ways to save on housing costs

3-bottom, Citizen Journalism, How-To's, , ,
Courtesy Michigan State University Extension

By Brenda Long, Michigan State University Extension


One key to financial success is lowering your housing costs. Generally, about one third of money spent by the typical household goes toward housing. The less you spend each month on housing, including utilities and other fixed costs, the less financial stress you will feel. You’ll also have more money to save toward retirement or for discretionary “fun” spending.


Refinance your mortgage: Interest rates are still low, and worth taking another look. Use an online calculator to estimate how much you will save over the years. If your current mortgage payment is over 31 percent of your income, you might qualify for a loan modification to lower your payments. 


Follow these links to determine if your mortgage qualifies:

  • Cut your utility bills: Weatherproofing, thermostat settings, landscaping and water conservation can all make a difference. Check out No to Low Cost Actions to Save Home Energy and Money for specific information.
  • Shrink your homeowner’s insurance costs: Look into paying a higher deductible to save yourself money. Ask about the many discount opportunities you might qualify to receive. Do a comparison shop of three companies. Insurance is necessary and it doesn’t have to be super expensive.
  • Fight your property tax assessment: If you feel your property tax assessment is too high, or much higher than neighbors with similar homes, you can appeal to your local taxing authority and potentially save for years to come. Generally in Michigan, January or February is the time of the year to submit an appeal request and it is reviewed by a local review committee in March. Check for errors on your property record and prepare your case.
  • Downsize to a smaller home: If your home is too large for your current needs, consider moving to a less costly residence to save money. A smaller home also could mean big savings on mortgage payments, utilities, maintenance and repairs.

Michigan State University Extension is a HUD-approved housing counseling agency and has many MSHDA-certified housing counselors at multiple county offices to assist you by phone or digitally. Find a staff person near you at mimoneyhealth.org. MSHDA-certified Housing counselors may be located as well.


This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

Are you behind on property tax or mortgage payments?

3-bottom, Area Education, Citizen Journalism, Education, How-To's, Senior Living, Veterans, , , ,

By Brenda Long, Michigan State University Extension

Some homeowners are still having financial difficulties even though the foreclosure rate in Michigan has significantly declined in recent years with the economy and employment rates improving. All it can take is one large unexpected expense, unemployment or life change. Fortunately, nearly $19 million in funds are still available for eligible delinquent homeowners to get caught up and keep their home.

Bill Hendrian and I have written previous articles about Michigan’s Hardest Hit Fund program, also known as Step Forward Michigan. This federally funded loan program started in 2010 and is designed to help eligible homeowners who are struggling with their mortgage, condo association fees, and/or property taxes to retain ownership of their primary residence. As of September 2018, nearly 37,000 Michigan households in all 83 counties received more than $39 million in assistance, according to MSHDA.

Currently, this is the only statewide assistance program to get caught up on delinquent property taxes. If homeowners are behind three years, on 2016 taxes, they have started receiving notices from their county treasurers about facing foreclosure if those 2016 taxes are not paid by Mar. 31, 2019. Last year, my experience was that homeowners needed to apply to Step Forward Michigan by January to allow for processing time. Situations are reviewed on a case-by-case basis. Most homeowners who procrastinated or did not apply until February or March were not approved in time for this assistance earlier this year. The lesson learned was to apply this fall if you are facing foreclosure with delinquent 2016 property taxes.

Watch a short video for guidance about the Step Forward Michigan application process. The online application can be completed in three ways:

  • Go to the Step Forward Michigan website and complete the application yourself plus email, fax or mail the signed application and supporting documents to Step Forward Michigan.
  • Call Step Forward Michigan at 866-946-7432 to apply by phone.
  • Michigan State University Extension Housing Counselors or other local housing counselors can help homeowners fill out the online application, submit all the required documents, and follow-up until a decision is made. During the past eight years, thousands of Michigan homeowners who worked with our counselors have received assistance to save their homes from foreclosure.

If approved, up to $30,000 is paid directly to the participating mortgage servicer or county treasurer for application directly to the household’s mortgage loan or property taxes. No interest and no payments are required from the homeowner. As cases are reviewed, a lien is placed on the property for five years and 20 percent of the loan is forgiven per year. At the end of the five years, the loan is forgiven. During the five-year period, if the property is transferred, sold, or is no longer the principal residence, the non-forgivable portion is due.

For further information or to see if you qualify for assistance you can go to Step Forward Michigan for a list of frequently asked questions and access an online application and a list of documents that are required to submit an application.

If you do not qualify for Step Forward Michigan, helpful resources are provided to consider other options available.

Facing foreclosure is a difficult financial situation for homeowners. Fortunately many are getting back on track to become current with their payments and keep their homes and stay living in their communities. Find fact sheets and more information about mortgage and property tax foreclosure at MIMoneyHealth.org.

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

Getting Married? 8 Tips for Newlyweds on Combining Finances

3-bottom, Citizen Journalism, Education, How-To's, , , , , , , , , , ,

By Brenda Long, Michigan State University Extension

 

Getting married? 83 percent of couples fight about money, according to Debt Reduction Services. Making household finances work is one way newlyweds can help make their marriage work.  Both should agree on how to coordinate household accounts and debt by having constructive conversations. Even though this is not the most romantic topic, it will contribute to a happier marriage.

 

Once the honeymoon is over, focus some attention on your shared financial lives. The Building MI Financial Future Financial Toolkit from the Michigan Department of Insurance and Financial Services offers these tips:

  • Request a free copy of your credit reports at annualcreditreport.com. This information tells you about your use, management and payment history of loans and financial obligations. You might also get credit score estimates from FICO. Then you can objectively analyze the strengths and any weaknesses in the reports, including high debt amounts or discipline about making timely payments.
  • List all sources of income and expenses. Using all pay stubs, account statements, monthly bills and debt obligations, disclose everything financial to each other. Then you can make a monthly spending plan for handling monthly expenses and establish a debt prevention and/or elimination plan.
  • Open a joint checking account to pay for household expenses. Pay for all marriage-related bills, including housing, food, necessary clothing, vacation, transportation, cell phones, etc. If neither of you had credit-related problems, both names can be on the account. If one person has poor credit, you may choose to have your account in only one name. Consider automating your household bills payments, plus setting up separate accounts for each of your savings goals.
  • Decide who is going to pay for what.
    • Option 1: Combine incomes and consider all expenses and debts as one.
    • Option 2: Assign certain payments to one or the other. This might depend on who had loan obligations prior to the marriage.
    • Option 3: Pay ongoing expenses based on the percentage of income contributed.
  • Discuss the relationship each of you has with money. Is one of you a saver and one a spender? Talk about the potential consequences and agree on a workable solution.
  • Consider opening a savings account for an “emergency or rainy day fund”. Unplanned emergencies happen.  As a couple, you should have a goal about how much is enough for unexpected expenses or emergencies. In addition, the recommendation is to set aside several months of earned income to prepare for an unplanned loss of future income. Decide together on a monthly amount to save which fits into your budget and is sustainable.
    • Tip: While many couples choose to pursue a joint checking account, this method may not work for all couples. Whether you have a joint account or separate accounts to pay household expenses, the key is to communicate, have a bill payment plan, and pay bills on time.
  • Update your beneficiaries. Check any employer-sponsored retirement plan, IRAs, annuities, and life insurance policies to update the beneficiary information.
  • Take care of your future selves now. Contribute to your employer-sponsored retirement plan and/or IRA. The recommendation is 15 percent of your combined gross pay or the maximum amount allowed by the IRS. This is a great time to talk about your retirement goals that will require financial planning and strategies.  Further, decide on a homeownership plan including thinking about if, where and when to buy a home and its cost. Discuss any education and professional training plans.

The first year of marriage typically includes many lifestyle adjustments. Setting goals and planning to save are best practices to help make your financial hopes and dreams come true. Having a spending plan shows your sense of control and willingness to set aside now for the future.  Discussing and agreeing on financial adjustments should make your financial lives go smoother. Financial planning takes time, patience, and discipline.  Find more information about spending plans, reasons for and ways to save, credit and debt, homeownership, and many other topics at MIMoneyHealth.org.

 

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://bit.ly/MSUENews. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

Enroll now for health insurance in 2019

3-bottom, Area Education, Citizen Journalism, Community Health, Education, Health, How-To's, , , ,

By Brenda Long, Michigan State University Extension

For more information contact Brenda Long.

 

Health insurance helps provide financial protection. It is for managing the risks of very high medical expenses for potential future health problems. Plan your choices during health insurance open enrollment for 2019. If you obtain health insurance from your employer, ask about the enrollment dates and options. The information below is for people buying health insurance on their own.

Changes for 2019 include the following:

1. Premiums have flattened out for 2019 Health Insurance Marketplace plans after several years of spikes, according to the Michigan Department of Insurance and Financial Services. Consumers should find more affordable, more comprehensive coverage. In Michigan, nine companies will be competing for policy holders to purchase Qualified Health Plans in the Michigan Health Insurance Marketplace:

  • Blue Care Network
  • Blue Cross Blue Shield of MI
  • McLaren Health Plan Community
  • Meridian Health Plan of MI, Inc
  • Molina Healthcare of MI
  • Oscar Insurance Company
  • Physicians Health Plan
  • Priority Health
  • Total Health Care USA

2. The repeal of the individual mandate requirement to pay for health insurance is still in effect in 2018 but will not be included in 2019. This means when you file federal income taxes for 2019, you will not pay a penalty for not having health insurance.

 

3. Short-term, limited-duration plans are allowable to cover an initial period of less than 12 months with renewal options, and up to 36 months total. This provides for new, more affordable options. These plans can provide coverage for people transitioning between jobs, students taking time off from school, and middle-class families without access to subsidized ACA plans. These plans offer lower premiums than comprehensive health insurance, but also cover less. They do not have to take people with pre-existing medical conditions. They may not cover maternity, mental health, prescription drugs and substance abuse treatment. Read the fine print if you are considering this coverage.

 

Not new but important to mention are Health Savings Accounts (HSA), which can be set up through your employer or by an individual. These tax-exempt accounts can be used to pay for eligible out-of-pocket health care expenses not covered by traditional health plans.  HSAs must be established with a high deductible plan so that the HSA pays for routine health expenses and the health plan for more significant costs. Individuals can go to many banks and credit unions in Michigan to set up an account.

 

Here are 5 things to get ready to enroll for health insurance:

  1. Know the dates of the Open Enrollment period. The Health Insurance Marketplace has a 45-day enrollment period from Nov. 1 to Dec. 15, 2018. The Medicare open enrollment period is different from the Marketplace time frame, from Oct. 15 to Dec. 7, 2018. If you qualify for the Healthy Michigan Plan, Medicaid or MiChild, you can enroll at any time of the year.
  2. Ask your employer if it offers health insurance as a benefit. Some employers make use of the Small Business Health Options Program (SHOP) for employees. If not, you may need to get coverage through the Marketplace, or directly from a health insurance agent or company.
  3. Make a list of questions before it is time to choose your health plan. Do you want to stay with your current doctor? Will the plan provide coverage when you are travelling? This will help you compare multiple plans. Have you received a notice from your current health plan about changes to its provider network, co-pays, co-insurance, or prescription drug coverage and what does this mean for you? Read the notice carefully.
  4. Gather your household income information. With the Marketplace, many people qualify for tax credits to save money based on family size and income. Find your most recent W-2, pay stubs or tax return.
  5. Set your budget. You need to figure out how much you can afford to spend on premiums each month. Think about your health care needs, how often you visit the doctor, the number and cost of prescriptions. If you expect frequent visits, prescriptions or medical services, you might want a plan that has higher monthly premiums but pays more medical costs when you use them, so you have fewer out-of-pocket costs. For more information about managing plans with high deductibles, see my February 21, 2017, news article.

This is also a good time to do a financial check-up. Be sure to check out Michigan State University Extension and MIMoneyHealth.org for great tips on many financial topics plus programs in the Events column.

 

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

Four money-saving home maintenance tips

3-bottom, Area Education, Citizen Journalism, Education, How-To's, , , ,

By Brenda Long, Michigan State University Extension

 

The majority of U. S. households, 63 percent, have equity in their own homes. For many, it’s the largest piece of their asset portfolio, according to U.S. Census data and University of Illinois Extension. Regular maintenance and repair should be in your plans so that you can retain the value of your home. It requires time and money, whether you do the work yourself or hire someone else.

 

Home maintenance should be done monthly, seasonally or annually, so the expenses should not be a complete surprise. Prepare by setting aside money each month toward a home maintenance fund so that it will be there when you need it. The Consumer Financial Protection Bureau monthly payment worksheet says a common rule of thumb is to plan to invest one percent of your home value in home maintenance each year. For example, if your home’s market value is $100,000, then 1 percent is $1,000. This amount may vary depending on your home and needed repairs.

 

It’s a good idea to walk around inside and out monthly to visually inspect for potential issues. Look up as well as down. Use a checklist such as this one from the University of Georgia Extension.

 

According to Mint.com, the four key concerns are:

  • Water Drainage/Damage: Rain (and snow in cold climates) can cause serious water damage to insulation and drywall. Be sure gutters and downspouts are working. Look for stains and mold growth, damp carpeting, loose tiles, and cupping wood floors.
  • Heating/Cooling Issues: Yearly cleaning plus regularly change the filters (monthly is recommended by experts) for both long life and efficiency of these systems. If you have a fireplace, annual flue cleaning is essential to prevent the considerably higher expense relining the flue.
  • Roof Damage: Heavy snow, heavy rain and high winds can influence roof quality. Look for signs of damage on the roof and in the attic for water leaks. Asphalt shingles generally last about 20 years, and aluminum or steel shingles last about 50 years. Avoid walking on the roof and do not store heavy items in your attic.
  • Windows: Although aluminum windows are less costly, wooden windows last about ten years longer. Check regularly for peeling paint, cracks and chips in the glazing.

Several government assistance programs are available to better afford repairing and improving your home.  Home improvements such as the cost of insulation, energy-efficient exterior windows, and energy-efficient heating and air conditioning systems qualify for IRS residential energy tax credits. Installation costs do not qualify. Visit the Energy Star website, energystar.gov/taxcredits for details.

 

Plan ahead to fit home maintenance tasks into your schedule and expenses in your budget.  Find tips in Jinnifer Ortquist’s article on Planning Home Improvements and Costs.  Doing small repairs promptly can save you from large, costly repairs later. For example, small leaks in a roof can lead to significant damage in internal walls over time.  Also learn about assistance programs and energy tax credits to stretch your dollars.  For more information about homeownership in Michigan, go to the Housing link at www.mimoneyhealth.org.

 

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://bit.ly/MSUENews. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

 

 

 

Aging in place: Staying at home

3-bottom, Area Education, Community Health, Education, Health, How-To's, Senior Living, ,

Photo by Michigan State University Extension

By Brenda Long, Michigan State University Extension

 

Many older adults value a high quality of life that is directly tied to the ability to continue living independently. Independence depends on if the home continues to meet the older adult’s needs and whether they have a continued connection to daily services, based on a report by the Joint Center for Housing Studies of Harvard University — Projections and Implications for Housing a Growing Population: Older Households 2015-2035.  Let’s explore these decisions to help you devise a realistic strategy.

 

According to the Make the Most of Your Home’s Value lesson from the National Endowment for Financial Education (NEFE), there are some financial obligations to consider related to homeownership. Beyond any mortgage debt obligations, these include property taxes, homeowner’s insurance, utilities, homeowners association (HOA) fees, repairs and cost-of-living increases. Do you have adequate income and savings to cover these expenses? According to the U. S. Department of Housing and Urban Development (HUD), housing costs should be less than 31 percent of income to be affordable. However, an estimated 12 million renters and homeowners are cost burdened, paying more than 50 percent of their income on housing. It is recommended to pay off one’s mortgage before retirement, if possible. Also, it is critical to understand the income tax implications for annual deductions and home sale capital gains exclusion.

 

Other considerations are your values and lifestyle preferences. How do your priorities impact your decision to stay in your current housing or transition to a different situation? Think about these factors:

  • your social network
  • proximity to family, friends, and caregivers
  • access to transportation
  • weather/climate
  • closeness to health care services
  • mobility issues
  • family legacy and security
  • local income taxes and/or inheritance and estate taxes
  • whether or not your home can be modified
  • manageable home and yard maintenance

Programs from local and national organizations are available in Michigan to help repair single family homes. They include weatherization, repairs and improvements, and accessibility modifications to assist homeowners to stay in their homes.

 

Brad Neumann wrote a related article on housing and community development implications of aging in place in February 2017. Also read Beth Martinez’s article on the choice of downsizing to a rental from August 2017.

 

Consider attending our free Retirement Planning online workshops held several times each year. The September series registration is https://events.anr.msu.edu/RetirementSept18/. Financial planning takes time, patience, and discipline. Find more information about financial and housing decisions at MIMoneyHealth.org.

 

This article was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).

Do I have to move out of my home before the sheriff sale?

3-bottom, Citizen Journalism, , , , ,

By Brenda Long, Michigan State University Extension 

 

Mortgage foreclosure rates have significantly decreased during the past ten years, according to the ATTOM report in January 2018. The number of foreclosure filings in 2017 in Michigan decreased by 42.5 percent compared to 2016.

 

A common misconception for homeowners in foreclosure is that they have to move out of their house before the sheriff sale. When a county deputy or appointed county official posts a notice with the sale date near their door, many people think that is the last date they can stay. However, Michigan law says that those individuals have rights to occupy the house usually for six more months. Some homeowners abandon their property early, paying rent without making an informed decision.

 

Homeowners do have rights during foreclosure, which were discussed in my November 2015 article. After a property is sold at a sheriff’s sale, a foreclosure sale, there is a redemption period. For most properties it is a six month period. If the homeowner moves out and the property has been declared abandoned, the redemption period can be shortened to one month.  For some large properties and those with a lot of equity, more than two-thirds of the loan has been paid, the redemption period may be longer.

 

During the redemption period, the homeowner(s) can continue to live in the property and are not required to make any mortgage payments. They can use this time to save funds and plan their next steps. The homeowner also has the right to sell the property to another person, but if the sale price is for less than the mortgage owed, the bank has to agree to the short sale.

 

If the homeowner can find funds to buy back the property then they can keep it. That is why this time is called a redemption period. At the sheriff’s sale, the purchaser paid a certain amount of money to purchase the property. Often the purchaser will be the homeowner’s mortgage company, although it could also be another third party. The amount necessary for the homeowner to buy back or redeem the property is the amount the purchaser paid plus some allowable costs and a daily interest rate based upon your mortgage loan interest rate. A homeowner can learn the sale price for the property by obtaining a copy of the sheriff’s deed from the Register of Deeds in the county where the property is located. They only have to pay the purchase price from the sheriff’s sale even if it is substantially less than the loan amount.

 

Before moving, if that is the choice, the homeowner should check with their county Register of Deeds office to be sure the property was actually sold.

 

Going through foreclosure is the right option for some Michigan homeowners. Knowing that they can continue living in their house with no mortgage payments for six months after the sheriff sale can keep a roof over their head and provide time to plan next steps. They should also know their rights during their redemption period.

 

Michigan State University Extension has released a toolkit, now in both English and Spanish, for homeowners who are experiencing or have previously experienced foreclosure. This toolkit will equip these individuals and families with tools to help them recover their financial stability in the case that a recovery of their home is not possible. The toolkit is available to download free at MIMoneyHealth.org.

 

For more information about foreclosure in Michigan, go to the housing link at www.mimoneyhealth.org or www.michigan.gov/mshda. Michigan State University Extension offices in several counties have certified foreclosure counselors you can talk to for free about your rights and assist you to think about your options in the foreclosure process.

 

Reprinted with permission. This article originally was published by Michigan State University Extension. For more information, visit http://www.msue.msu.edu. To have a digest of information delivered straight to your email inbox, visit http://www.msue.msu.edu/newsletters. To contact an expert in your area, visit http://expert.msue.msu.edu, or call 888-MSUE4MI (888-678-3464).