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: Want to graduate with minimal debt? Choose the right college. Also in the news: How to budget, save, and even win money with today’s prepaid debit cards, 5 key facts about earthquakes and insurance, and hackers are stealing home buyers’ down payments.

Want to Graduate With Minimal Debt? Choose the Right College
Comparison shopping.

Budget, Save, Even Win Money With Today’s Prepaid Debit Cards
Getting your spending in order.

5 Key Facts About Earthquakes and Insurance
Important information.

Hackers stealing home buyers’ down payments
Targeting hopes and dreams.

Tuesday’s need-to-know money news

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Today’s top story: 3 ways to scrub a collections stain off a credit report. Also in the news: Why you probably need title insurance, socially responsible investing, and the Equifax hack just got worse.

3 Ways to Scrub a Collections Stain Off a Credit Report
Do your homework.

Title Insurance: What It Is and Why You (Probably) Need It
Title insurance protects the insured from a financial loss related to the ownership of a property.

Socially Responsible Investing Takes Clearing a Few Hurdles
Align your investments with your values.

Your Credit Cards May Also Have Been Compromised in the Equifax Hack
It keeps getting worse.

Squeamish about buying used items? Get over it

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Bedbugs. Weird smells. The possibility of imminent breakdowns. People have all sorts of excuses for not buying used stuff.

Those who deliberately buy used items, though, say such fears are not just overblown — they’re also expensive.

In my latest for the Associated Press, how buying used items can save you money while not sacrificing quality.

Monday’s need-to-know money news

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Today’s top story: You could be overspending with credit cards. Yes, you. Also in the news: Your excuses for not contributing to a 401(k) are dwindling, which is the best way for you to zap your debt, and how millennials can prepare for the next financial crisis.

You Could Be Overspending With Credit Cards. Yes, You.
Keeping your spending in check.

Your Excuses for Not Contributing to a 401(k) Are Dwindling
No more excuses.

Different Ways to Zap Your Debt: Which Is for You?
Finding the best way to conquer your debt.

How millennials can prepare for the next financial crisis
Preparing for the inevitable.

Q&A: Sinking under a heavy debt load? There’s help

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Dear Liz: I am trying to get my finances in order and, like many, I am struggling. The majority of my debt comes from student loans, but I also have unsecured debt that is weighing me down. I work for a nonprofit and know I need to contact my lenders to try to enroll in the Public Service Loan Forgiveness program, but my debt has me completely frozen. Every few months I try to do something and then I end up back where I am now, feeling overwhelmed.

Answer: You’re not alone. Credit counselors often deal with people who are so paralyzed by debt problems they can’t even open their bills. These people bring in sacks of unopened mail to their first appointments with the counselors.

If you haven’t been able to deal with your debt alone, then by all means, get help. A nonprofit credit counselor is an option; you can get referrals from the National Foundation for Credit Counseling at www.nfcc.org. A financial planner, a financial coach or even a money-savvy friend also can help you.

If you can force yourself to simply call your student loan servicers — the companies that process the payments on your education debt — you can get the ball rolling. These companies can determine if you’re eligible for the Public Service Loan Forgiveness program and help you start on the paperwork.

Public Service Loan Forgiveness can erase the balance of your federal student loans after 10 years of payments if you work in the public sector. To get the maximum benefit, you would need to sign up for an income-based repayment plan and you may need to consolidate your loans. All this involves effort, but if you’re planning to stay in public service, it can be worthwhile.

The Trump administration has proposed ending the forgiveness program for future borrowers. Even if Congress enacts such a change, it should not affect those who have already taken out loans. But you’d still be wise to enroll as soon as possible.

Q&A: How to find out if a car has flood damage

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Dear Liz: You’ve been writing recently about how to find a good, cheap used car. Can you write about how to research whether a car has been damaged in a flood?

Answer: Carfax, which provides vehicle history reports, offers a free flood check in the “resources” section of the site’s press center.

Flood-damaged cars that have been totaled by insurance companies are typically sent to auto recyclers for dismantling but some wind up back on the market. These cars are supposed to have salvage titles that make clear their dubious histories, but it’s relatively easy for unscrupulous sellers to register the car in a different, more lenient state that obscures its past. This is known as “title washing.”

Carfax’s service can help you spot the damaged cars, as can your own senses. A car that smells like mold or strong cleaning solution (to cover up the mold) is a bad sign. Carpeting or upholstery that’s obviously newer than the car can indicate it’s been replaced after flood damage. Look in the glove box and under the seats for mud or silt. A sagging headliner on a newer car is another red flag.

A good mechanic can help you spot problems if you’re not sure. If the seller won’t let you take the car to your own mechanic for inspection, don’t buy it.