Ask Liz Weston

Get smart with your money

Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: What a travel agent can do for you that a search engine can’t. Also in the news: How one couple paid off over $200,000 in debt, 6 ways to weed out shady schools, and why your credit score may not be as good as you think it is.

What a Travel Agent Can Do for You That a Search Engine Can’t
More than just booking a ticket.

How I Ditched Debt: Setting Pride Aside and Asking for Help
One couple’s story.

6 Ways to Weed Out Shady Schools
Just because it has “university” in the name doesn’t mean it’s legit.

Why Your Credit Score May Not Be As Good As You Think It Is
So many scores.

The right way to give your teen an allowance

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Here’s an idea: Hand your teenagers hundreds of dollars in one lump sum and leave it up to them to manage the money for the next, say, six to 12 months.

Anyone who’s ever had or been a teenager may quail at the thought, but experts say this approach actually can work much better than a weekly allowance in teaching older kids about personal finance.

In my latest for the Associated Press, how this unconventional method can work better than a weekly allowance.

Tuesday’s need-to-know money news

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Today’s top story: Equifax extends credit freeze deadline. Also in the news: Why single parents are turning to online colleges, how credit card rewards can take the sting out of a starter budget, and strapped families hope President Trump will tackle student loans in tonight’s State of the Union address.

How to Freeze Your Credit With Equifax
Extended deadlines.

For Some Single Parents, Online College Holds the Key

Credit Card Rewards Take the Sting Out of a Starter Budget

Strapped families hope Trump’s speech will tackle student loans
The State of the Union speech is tonight.

Monday’s need-to-know money news

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Today’s top story: Before doing your taxes, gather these documents. Also in the news: 3 things to do when buying a house as an unmarried couple, how credit cards can help you save on buses and trains, and 4 money lessons every teenager needs to know.

Before Doing Your Taxes, Gather These Documents
Putting your paperwork together.

Buying a Home as an Unmarried Couple? Do These 3 Things
Buyer beware.

Credit Cards Can Help You Save on Buses and Trains, Too
Discounts everywhere.

4 money lessons every teenager needs to know
The sooner the better.

Q&A: How to get a higher credit limit after the card company turns you down

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Dear Liz: I asked for a credit limit increase on my Visa card from $5,000 to $20,000. I was turned down because of not enough income. I was very disappointed and wonder what if anything I can do to reverse the situation.

I am a 77-year-old retired widow who owns my home with no mortgage. My annual income is around $50,000 from Social Security and my required minimum distributions from IRAs. I have no debt. My investments and savings obviously don’t count. I was about to charge $12,000 in airline tickets and wanted to take advantage of the cash back on the credit card. I always pay my credit card bill in full every month. I feel discriminated against.

Answer: Imagine you’re a lender and one of your customers suddenly demands that you quadruple the amount you’ve agreed to lend her, with the resulting credit line equal to 40% of her income. That might give you pause.

Or perhaps not. Credit card issuers have different policies about when to grant or deny credit, and those policies can change over time as they try to manage the risks of their lending portfolios. Also, issuers may be less generous to their longtime customers than they are to the new customers they’re trying to attract.

Understanding all that can help you formulate a game plan to get what you want. One option is to call the issuer, explain your situation and ask for a temporary credit line increase so you can book those tickets.

Another (and certainly more lucrative) option would be to apply for a new credit card with a fat sign-up bonus from a different issuer. Several cash-back cards offer rewards of $150 to $200 once you spend a certain amount within the first few months, and you would meet that requirement easily with your ticket purchases.

If you’re willing to consider something other than a cash-back card, you can check out travel rewards cards that offer points or miles. Several have bonuses that can translate into $400 or more of free travel.

Applying for a new card might temporarily drop your credit scores a few points, but that shouldn’t be a concern if you’re not planning to apply for a major loan in the next few months.

Q&A: Don’t rush when setting up your living trust

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Dear Liz: Your column recently answered a question about whether a living trust was the right move, and I thought you mentioned a free online form or worksheet that one could download and fill out. Where can I find that?

Answer: Many sites offering free software or forms are actually subscription services. You typically use a credit card to sign up and are charged a monthly fee after the free trial period ends. If you can wrap up your estate planning in short order and cancel before the fee kicks in, your trust may be free — but given what’s at stake, it’s not a good idea to rush.

After all, if you make a mistake with your estate planning that’s revealed after your death, you can’t come back and fix it. That means your desire to save a few bucks could cost your heirs dearly.

At a minimum, you should consider consulting with an attorney to ensure you’re not making obvious errors. Some of the do-it-yourself sites, including LegalZoom and RocketLawyer, offer the option to consult with a lawyer. RocketLawyer, a $40-a-month subscription service, has a seven-day free trial. LegalZoom sells a $269 living trust package that includes a 30-day free trial of its subscription advice service. After the free trial, the subscription costs $15 a month. Legal self-help site Nolo has an online living trust form for $60 that doesn’t include advice, but you can use Nolo’s attorney directory to find an expert you can hire for a review.

If your situation is at all complicated — blended families, special needs children, contentious heirs, family businesses, foreign assets and large estates all count — then it’s best to seek out an experienced estate planning attorney to draft your paperwork.