Bankruptcy

Long-Term Savings Might Mean Short-Term Spending

By Meaghan Olson

Did you know that a common contributing factor to bankruptcy filings is serious illness or injury? In fact, many Americans who file for bankruptcy to escape overwhelming debt do so because of medical bills they can?t afford and didn?t see coming.

It makes sense, then, to review some key ways to spend a little money now to avoid greater expenses in the future. Here?s a look at how you can protect yourself and your family, according to a recent article from U.S. News & World Report.

When to Buy New

• Cribs and children?s furniture: Even items that seem to be in good shape can be a health risk, as safety recalls on baby items are fairly common. Rather than scrambling for an item?s history, opt for a new crib with a proven safety record.
• Car seats: While nobody likes to think about getting in a serious car accident, they do happen and can be devastating if you and your loved ones aren?t prepared. Because safety standards are improved and changed commonly, opt for a new seat for your child. Also: consider that some damaged seats may look okay. Better not to find out the hard way.
• Bike helmets: Did you know that bike helmets are built to protect the head for only one crash? A used helmet may not provide the protection you think you're getting.
• Car tires: Like many of the items on this list, tires don?t come with an accident history and might not show visible signs of serious damage. But remember: the cost of new tires is probably less than the cost of the damage that could be caused by a serious accident. An ounce of prevention here is well worth the price.
• Computer software: While buying secondhand may seem like the cheapest way to go, it could end up being a total waste of money. Many kinds of software come with serial numbers that are registered with the company ? after one registration, they can?t be used again and so would be worthless. Better to buy new software for yourself and avoid the risk of throwing away money.
• Mattresses and bedding: The cost (in dollars, hours, health and frustration) of dealing with bed bugs, mold, mites, bacteria or anything else that might linger on a secondhand mattress is rarely worth the savings. And don?t think these concerns are memories of a distant past, either: even mainstream retailers have had trouble with mattress-loving critters in recent weeks.
• Shoes: If you aren?t repelled by the idea of wearing someone else?s shoes, they may seem like an intriguing bargain. But be careful: used shoes tend to be molded to someone?s feet other than your own, and their support structures can be worn out. If you plan to be on your feet a lot, you may avoid serious back problems by buying new.

Full post as published by The Bankruptcy Blog on August 01, 2010 (boomark / email).