Today’s top story: Why couples should consider keeping some of their finances separate. Also in the news: Ten ways to give your credit score a boost, six ways to save $1000 by the end of the year, and what the financial world could look like in 2019.
Why Couples Shouldn’t Merge All Their Finances
The benefits of financial autonomy.
10Best: Ways to improve your credit score
Easy steps that could give your score a boost.
The 2019 Forecast: Way More Millionaires, Way More Inequality
What will the financial world look like five years from now?
6 ways to save $1,000 by the end of the year
It can be done!
How much should you tip housekeeping? A travel tipping guide
Unraveling the mysteries of tipping while traveling.
Today’s top story: The everyday things that are hurting your credit. Also in the news: Whipping your 401(k) into shape, how to cope with low interest rates, and the ten best places to retire on Social Security alone.
5 Everyday Things That Hurt Your Credit
Your furry best friend could be trouble.
How to Whip Your 401(k) Into Shape
Unlocking your 401(k)’s full potential.
4 Strategies for Coping with Low Interest Rates
Counteract low interest rates by avoiding risky investments.
10 Best Places to Retire on Social Security Alone
The locations may surprise you.
8 secrets to building a budget you can live with
Budgeting doesn’t have to be painful.
Today’s top story: How to discover what personal finance nerds know. Also in the news: How to get a judgment off of your credit report, the high cost of college tuition convenience fees, and what’s really behind all of your financial fears.
10 Things Only Personal Finance Nerds Would Understand
We could all stand to be a little nerdy when it comes to personal finance.
How to Get a Judgment off Your Credit Report
Difficult but not impossible.
Is Convenience When Paying Your Tuition Worth a 2.62% Fee?
Not when it could add up to over $1000 a year.
Common Money Fears and How to Get Over Them
What’s really behind those nagging financial fears?
Five apps to help you organize your personal finances
Something to do on your phone that isn’t Candy Crush.
Dear Liz: My husband returned a car to the dealer when he lost his job. Now the company says he owes it more than $7,000 (the difference between what he owed to the dealer and the price for which the car was sold). He refuses to pay any amount, but recently he received a letter from a law office demanding payment or they will take him to court. Is he obliged to pay this money? What options does he have to get rid of this debt?
Answer: A debt doesn’t disappear simply because someone decides not to pay it.
Your husband signed loan paperwork to buy the car, and this paperwork obligated him to repay a certain amount. Voluntarily surrendering the car didn’t change his obligation. Also, the surrender probably is being reported to the credit bureaus as a repossession, which is a big negative mark on his credit reports. Some people mistakenly believe that a voluntary surrender avoids credit damage. Typically, it does not.
Your husband could make matters worse if he continues his stubbornness. The law firm can take the collection to court, where it’s likely to win. That will add a judgment to your husband’s credit files and cause further damage to his scores. His wages could be garnished to pay the debt.
Your husband may be able to settle this debt for less than he owes, especially if he can offer a substantial lump sum, but negotiations with a collector can be tricky. He may want to consult an attorney for help or at least arm himself with more knowledge about what to do from sites such as DebtCollectionAnswers.com.
If this is just one of a number of unpaid bills, though, you both may benefit from talking to a bankruptcy attorney about your options.
In the future, keep this experience in mind when you go to buy another car. Making at least a 20% down payment and limiting the loan term to four years or less will help ensure that you’re never “upside down” like this again.
Dear Liz: I have a 401(k) that has a required annual distribution because I am over 71 1/2 years old. Can I use this distribution as qualified income to invest in a Roth IRA? I have no W-2 earnings, although I do have other income sources that are reported on 1099 forms.
Answer: To contribute to a Roth or other individual retirement account, you must have taxable compensation, which the IRS defines as wages, salaries, commissions, tips, bonuses or net income from self-employment. The IRS also includes taxable alimony and separate maintenance payments as compensation for IRA purposes.
So if the money reported on one of those 1099 forms is from self-employment income, then you can contribute to a Roth IRA. If the form is reporting interest and dividends or other income that doesn’t meet the IRS definition of taxable compensation, then you’re out of luck.
If you don’t have income that meets the IRS definition of taxable compensation, but your spouse does, you may still qualify for IRA contributions, provided you file a joint return that meets the required income thresholds.
Today’s top story: How your kids can hurt your credit. Also in the news: How to find the best financing when purchasing a new car, why baby boomers need help paying down their debt, and five banking fees that are actually worth paying.
5 Ways Your Kid Can Hurt Your Credit
Intentionally and unintentionally.
Need a New Car? Here’s How to Find the Best Financing Deal
Don’t forget to skip the “undercarriage package.”
Boomer Retirees Need a Hand Paying Down Debt
How to prioritize payments while saving for retirement.
5 Banking Fees That Are Actually Worth Paying
Some fees have long-term benefits.
How to Prepare for a Mini-Retirement
Making the big retirement picture seem less far away.
Today’s top story: AT&T agrees to pay customers over a hundred million dollars to settle claims of false charges. Also in the news: Why you should check your bills for mistakes, mortgage mythbusting, and why it may not be the right time to buy a new home.
AT&T May Owe You a Refund for Bogus Charges
The company will pay out over $100,000,000 to settle claims.
How Often Do You Check Your Bills for Irregularities?
Odds are not nearly enough.
5 Mortgage Myths Dispelled
5 Reasons You May Not Be Able To Afford A New House
Every day choices that could keep holding you back.
Can You Go Solar? Leases, Loans Make It Possible
Your electrical costs could take a nosedive.