Andy Hinojosa CPA

Things to Remember About Debt Many of us are struggling through tough economic times. It is not unusual for many people to find themselves in a position where debt has become difficult to control. Here are some things to remember about debt: 1. Some debt is good.... Borrowing for a home or college usually makes good sense. Just make sure you don't borrow more than you can afford to pay back, and shop around for the best rates. 2. Some debt is bad. Don't use a credit card to pay for things you consume quickly, such as meals and vacations, if you can't afford to pay off your monthly bill in full in a month or two. There's no faster way to fall into debt. Instead, put aside some cash each month for these items so you can pay the bill in full. 3. Pay off your highest-rate debts first. Then tackle the next-highest rate. By tackle this means throwing all money above and beyond your combined minimum payments at the highest-rate debt. This will save the most money in interest payments. 4. Don't be so quick to pay down your mortgage. Don't pour all your cash into paying off a mortgage if you have other debt. Mortgages tend to have lower interest rates than other debt, and you may deduct the interest you pay on the first $1 million of a mortgage loan. 5. Learn to budget A budgeting is not your enemy. Learn to track your monthly expenses and create a budget for those expenses accordingly. Track your actual expenses and compare them to the budget so you can determine whether you are on track. 6. Maybe getting a second job? After figuring your expenses and cutting back all of the fun money, you might find that you are still unable to meet your obligation given your level of income. A second job (even if it is only temporary) may be the answer. This reminds me of a visit I had to my doctor’s office a few years ago. I was suffering from chronic sinus headaches and I was hoping that my doctor would prescribe me something to help. After explaining my symptoms, my doctor asked me what was going on in my life. I explained to him that it was tax season and I was working many hours at the office. I explained that I was teaching at the University of Phoenix, teaching at the College of the Sequoias and working way too many hours. I cringed with the thought that my doctor was going to scold me about putting money before my health and insist that I slow down. My doctor wrote out a prescription, handed it to me, shrugged his shoulders and said, Well, you have to make hay while the sun is shining."

This is the best summary I have found: https://www.forbes.com//paycheck-protection-program-smal/

Here is a link that will get you to the application process for emergency loans through the SBA. https://covid19relief.sba.gov/#/

Another resource for small businesses: http://www.tularechamber.org/

Information for small businesses who are seeking information regarding disaster loan assistance: https://www.sba.gov/

https://home.treasury.gov/cares

https://www.forbes.com//irs-announces-start-date-for-202/

We have a personal injury attorney who is opening an office in my building (in Tulare). He needs a paralegal/legal secretary to maintain that office. Please send to me any referrals and I will forward those referrals to him. Thank you!

It's good to be home.