Get smart with your money
Today’s top story: What to do about the Fed rate hike. Also in the news: How to deal with credit card fraud, driverless cars, and how your credit card debt is costing you nearly $1000 a year.
Fed Rate Hike: Here’s What to Do
Don’t panic.
First Time Dealing With Credit Card Fraud? You Got This
Important steps to take.
Are Fully Self-Driving Cars Just Around the Corner?
Should we fear the driverless car?
Credit card debt is costing you nearly $1,000 per year
Interest piles up.
Today’s top story: 3 steps to tame your debt in an hour or less. Also in the news: 10 housing and mortgage trends to watch for in 2018, how one woman ditched over 50K in debt, and why to be wary of instaloans in stores.
3 Steps to Tame Your Debt in an Hour or Less
Concrete steps.
10 Housing and Mortgage Trends to Watch for in 2018
What to keep an eye on.
How I Ditched Debt: A Wish List Kept Her Going
Read a success story.
Retailers now offers Instaloans to pay for purchasesBuyer beware,
Today’s top story: Paying for fake organic food. Also in the news: People who eschew checking accounts, 4 questions for your local organic farmer, and defrauded students are losing their debt relief.
The Dirt on ‘Organic’ Food: You May Be Paying for Fakes
Be on the lookout.
Checking Account? No, Thanks, Say Those Who Dislike Banks
It could be costly.
4 Questions for Your Local Organic Farmer
Making sure you get your money’s worth.
Debt relief for defrauded students halted under Trump, says report
Reversing Obama-era policy.
Oh, the injustice of it all.
Who among us hasn’t felt abused as a consumer? We get billed for stuff we didn’t receive, or that doesn’t work, or that didn’t live up to its hype. Companies charge us unexpected fees and insist the costs were revealed in the fine print. Health insurers take customer disservice to a whole new, awful level, inexplicably refusing to pay for services they promised to cover and deluging us with impossible-to-decrypt paperwork.
It’s understandable if you feel that enough is enough. But taking a righteous stand against paying an unfair bill can boomerang on you — hard.
In my latest for the Associated Press, situations where you might be tempted to refuse to pay, and what you might want to consider doing instead.
Today’s top story: 5 ways to reduce credit card interest. Also in the news: Holiday hosting tips to be safe, holiday tipping guide, and the pros and cons of using debit vs. credit cards.
5 Ways to Reduce Credit Card Interest
Escaping the interest trap.
Holiday Hosting Tips to Be Safe, Insurance If You’re Sorry
What’s covered under your homeowner’s insurance.
Holiday Tipping Guide: Whom and How Much
Showing appreciation.
Pros and Cons of Using Debit Vs. Credit Cards
Differences to keep in mind.
Dear Liz: I desperately need your help! My husband, who is 91, is in the early stages of dementia. I just turned 88 and for the first time am responsible for making all the financial decisions.
We are deeply in debt and I don’t know the best way to proceed. We owe more than $40,000 on credit cards, nearly $50,000 on a home equity loan, $20,000 on solar panels and $3,500 for a timeshare.
I am thinking of getting a low-interest mortgage on our home to pay off all these debts. We have no savings left. I just don’t know if this is a good idea or who to go to for answers.
Answer: If you have a younger family member or friend you trust, please consider involving this person in your search for answers. The possible solutions you need to consider are complex and would be daunting even for someone with a lot of experience in making financial decisions.
Getting a mortgage could be one solution, assuming you can get approved and afford the payments. Start by consulting a mortgage loan officer at your bank to see if this is an option.
Another possibility is a reverse mortgage, if you have sufficient home equity. The reverse mortgage could allow you to pay off some or all of your debts without having to make monthly payments. If you have substantial equity, you also may be able to supplement your income.
The reverse mortgage would have to be paid when you sold the home, died or moved out. A housing counselor, available from many National Foundation for Credit Counseling agencies, can discuss those with you. You can get referrals at www.nfcc.org.
Bankruptcy is yet another option to consider.
If your income is below the median for your area, you may be able to file for Chapter 7 bankruptcy liquidation to legally rid yourself of the credit card debt and timeshare. You also may be able to erase the solar panel loan, if it’s unsecured. If you have a lot of equity in your home, though, you could be forced to sell the house to pay your creditors, making Chapter 7 a bad option.
The other type of bankruptcy, Chapter 13, allows you to keep more property but requires a repayment plan that typically lasts for five years.
If you don’t have a lot of equity, on the other hand, and your income is protected from creditors, you may be “judgment proof.” That means if you stop paying your unsecured debts, your creditors could sue you but be unable to collect. An experienced bankruptcy attorney can assess your situation and let you know your options.
Referrals are available from the National Assn. of Consumer Bankruptcy Attorneys, www.nacba.org.
If you don’t have a trusted person to help you sort through your options, or even if you do, consider hiring a fee-only planner who charges by the hour. An experienced planner who agrees to be a fiduciary — which means he or she puts your best interests first — can help ease your mind that you’re making the right choice.
You can get referrals from the Garrett Planning Network, www.garrettplanningnetwork.com.