Newlyweds: 5 Money Matters For A Recession-Era Marriage

Stephanie Christensen, provided by

Monday, June 27, 2011

You made it through the wedding planning and budgeting process, and started your life as a married couple. But have you decided as a couple how will you handle your finances? (Marriage can be like doubling an income, as long as you avoid doubling these expenses. Check out Marriage: For Richer Or Poorer?)

Handled improperly, marriage and unaddressed money issues can wreak havoc on a relationship. In 2009, The New York Times reported the findings of a Utah State University study which indicated that “couples who reported disagreeing about finance once a week were over 30 percent more likely to get divorced than couples who reported disagreeing about finances a few times a month.”

The best way to avoid financial disagreements with your new spouse is to address challenges openly, have a shared plan of action, and to understand how credit and the financial system works. Maxine Sweet, vice president of public education for Experian and Wedding Planning Expert Kimberly Schlegel Whitman offer their expert advice for the top five money matters facing recession-era newlyweds.

1. Fight the Newlywed Homeowner Fantasy
Though you’re starting a new life as a married couple, one’s financial past does not go away so easily. Particularly if one spouse owns real estate that has lost significant value in the housing downturn, it’s important to be realistic and plan for your new financial life together, with a broad vision on the long-term. If you’re swept away by the fantasy that a newly married couple should purchase a home together to begin a new life, it’s time for a reality check. Schlegel advises couples that own a home they can’t sell to consider staying in the existing home until the market improves. If you’re itching to buy housing right after marriage, consider renting as a temporary option to build savings and a solid financial foundation. Agree as a couple how long you will stay there, and how you will start saving and building your assets for home buying in the future. “The most important thing is to protect your credit history, so that when you are positioned to be able to buy a new home together, you can get approved, and at the best interest rate,” says Schlegel.

2. Save for Worst-Case Scenarios
While the economy is making a slow recovery, job security is still wavering in many industries. Though double income may leave you feeling like money is pouring in, Schlegel advises married couples to have savings amounting to at least six months (preferably nine) of your total monthly income as a couple, in the event that one spouse loses a job, or some other disaster strikes. Choose an interest-bearing savings account together, and establish an automatic savings plan (ASP), so that a portion of each spouse’s paycheck is deposited to the account regularly. Destroy the ATM card so there is no temptation to dip into the funds.

3. My Debt, Your Debt
While joining finances can be a “rite of married passage” for couples, Sweet urges newlyweds to remember that as a married couple, you are both responsible for debt incurred on a joint account. If you decide to consolidate finances, joint accounts will be reported on each of your individual credit reports, and both spouses are financially responsible for any debt incurred. Likewise, a missed payment will negatively impact both of your credit scores and histories. If you live in a “joint property state,” which are predominantly located in the Western part of the United States, Sweet reminds that both spouses are held liable for debt, even if your name is not on the account.

4. Maintain Your Individuality
While financial planning should be a joint activity after marriage, Sweet also recommends keeping at least one individual account in each spouse’s name open. This approach will ensure that each individual has easy access to credit in case of an emergency. If you do find yourself facing divorce one day, having an established account in your name will also help you rebuild your individual credit history. (Does signing a prenuptial agreement put your marriage on shaky ground, or is it just smart planning? See Marriage, Divorce And The Dotted Line.)

5. Understand Credit as a Married Couple
In today’s tightened lending environment, credit is more important than ever. Sweet reminds that while each spouse will always have an individual credit history, even after marriage. Lenders will often consider both of your financial standings when you apply for credit jointly, especially for major purchases like a car or home. Missing just one payment on one of your individual accounts, could impact your future ability to open joint accounts.

The Bottom Line
Money and marriage can be a challenging and stressful issue for many. For recession-era newlyweds, the unique circumstances presented in an economic downturn make sound financial planning as spouses even more critical. Use these five steps as a guide to pave the way for your new job as joint money-managers, and ensure that you’ll start your new financial life as a married couple on the right foot. (Strengthen your marriage by discussing these financial pitfalls. Refer to Top 6 Marriage-Killing Money Issues.)

 

Original story – Newlyweds: 5 Money Matters For A Recession-Era Marriage

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Important facts about bankruptcy

by Jamie Billings

Bankruptcy is a tough road that best reserved for those who do not have any other options. Generally speaking, filing a Bankruptcy is a last resort. While it should not be entered into lightly, it may prove itself to be a positive solution for you. If you cannot pay your debts or you are dealing with a lawsuit bankruptcy maybe an option for you. Bankruptcy is an option when you have little or no income in order to make any kind of monthly payment to your creditors. The court will take away from you the responsibility of paying your debts. Bankruptcy usually lasts 12 months, after which time, any unpaid debt is written off.

One of the major aims of bankruptcy law is to give a financially distressed person an opportunity to make a new financial start. Bankruptcy laws help people who can no longer pay their creditors get a fresh start through liquidating assets to pay their debts or by creating a repayment plan. It also protects troubled businesses and provides for orderly distributions to business creditors through reorganization or liquidation.

Bankruptcy is an important decision and the law and it application to one’s particular situation can be very complicated. It is generally recommend that one consult with an attorney with experience in the personal bankruptcy field.

If you feel comfortable with attempting the bankruptcy process without an attorney there are several online bankruptcy services and information that may assist you. Bankruptcy information provides an expert advice and a live forum alongside a regular roundup of the latest news, statistics, and research from the world of debt solutions. You may also find reports on issues surrounding bankruptcies.

If you are deeming for a bankruptcy help, you should first understand the different consequences of bankruptcy so you will then be able to make informed decisions about the alternatives available to you. You can also try and come to an informal repayment arrangement with your creditors you can consider a formal arrangement.

There are a number of factors to consider in deciding whether bankruptcy is an appropriate option. You may wish to consult an attorney before proceeding to file for bankruptcy.

Bankruptcy laws help people who can no longer pay their creditors get a fresh start through liquidating assets to pay their debts or by making a repayment plan. Bankruptcy laws also guard troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation.

Bankruptcy will really give you a fresh start. However, careful consideration should be given before filing for bankruptcy, because doing so may affect your credit and like any ordinary phenomena, it have other consequences.

Source

The Magnificent 7: Where state laws get you extra free credit reports

A handful of states guarantee you an extra peek at your credit

By Lisa Bertagnoli

 

Everyone loves a freebie, so residents of seven states may be happy to know that state law grants them a free extra copy of their credit report every 12 months. 

That’s one from each of the three major credit bureaus, in addition to the one that federal law promises to all citizens every 12 months. That works out to six free credit reports a year for residents of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont. 

Most residents of those states don’t know about that extra report, though, and the big credit bureaus don’t exactly advertise it. Getting them takes some legwork, but experts say it’s worth the effort: Frequent peeks at your credit report can mean better financial health.You can find and scrub errors faster, and see what you’re doing right and wrong.

Important, but little-known rule
Federal law guarantees each consumer the right to one free credit report from each of the three major credit bureaus — Equifax, Experian and TransUnion — every 12 months. That right comes from the Fair and Accurate Credit Transactions Act (better known as the FACT Act), which became law in 2003 as an amendment to the Fair Credit Reporting Act (FCRA). Due to the recession, overall awareness of credit report availability is rising. Nationwide awareness jumped to 53 percent in November 2010 from 37 percent in July 2010, according to Freescore.com, a Norwalk, Conn.-based for-profit credit information site.

But in the seven “extra credit report” states, word about the additional report doesn’t seem to have gotten out. A call to the Colorado Attorney General’s office, for instance, yielded a telephonic blank stare: “Nobody knows anything about the law other than that it exists,” says Mike Saccone, communications director.

How to get them
Getting that extra credit report isn’t as easy as getting your first one, however. Your initial free report should come from AnnualCreditReport.com — the official government-mandated site for obtaining free credit reports. A few clicks on that site and a few minutes later, you’re all set. To get the second one isn’t so simple.

Residents of the seven “extra free report” states must contact the three major credit bureaus to request their reports. Each bureau features a different process, spelled out below.

Equifax: Visit www.Equifax.com/FCRA. After filling out the name, address and Social Security number fields, check “Free State Credit File” under the “Reason for Credit File Request” header.

Experian: The “Check Credit Report” page on Experian.com requests that consumers call (866) 200-6020 to confirm their eligibility and to request their extra free credit report via snail mail. The automated phone system uses the caller’s area code to identify their location and then provides options based on where the person is calling from. 

TransUnion: Visit TransUnion’s “Learn More About Getting Your FACT Act Free Credit Report” page. On that page, click the link that says, “Learn more about obtaining a free credit report if you meet one of the above conditions.” On the next page, click “Yes, I am eligible” next to option No. 4. You’ll then be taken to a page where you can choose your state of residence so you can get your free report.

Credit reports requested online are available immediately and are encrypted for security reasons, says Rod Griffin, director of public education for Experian, the Costa Mesa, Calif.-based credit bureau. Reports requested by telephone take about seven to 10 days to reach consumers by mail. Mailed reports do not include information dangerous in the wrong hands, such as the consumer’s entire Social Security number.

Why it matters
After a few costly experiences with look-alike websites, Donna Trimarco, a resident of Lumberton, N.J., got a free report after attending a financial services seminar at Fort Dix, N.J., where she is an administrative assistant.

The report revealed a few surprises, including a lien on her house. Still, Trimarco was glad to have the information, as she needs a new car and wants to get a student loan to finish her master’s degree.

She admits to a checkered financial past, including a bankruptcy, but hopes regular review of her credit report will help her plan a rosier future. “If I keep my act together, it means looking at everything, each credit report,” Trimarco says.

Indeed, experts advise obtaining as many free reports as are due you, and timing them to arrive regularly. Taren Coleman, president of Coleman Financial Group, a financial advising firm in Bethesda, Md., advises clients to obtain reports at least once a quarter. Consumers are better able to spot, and correct, mistakes if they pull reports often, says Coleman.

Coleman also advises thinking ahead. For instance, if you plan to purchase a house or car or refinance your home, study your credit report before the bank does. The advantage? “No surprises, no errors,” Coleman says.

Read more: http://www.creditcards.com/credit-card-news/7-states-where-residents-get-extra-free-credit-report-1282.php#ixzz1Apq2AIzD

How Long Will A Bankruptcy Filing Stay On My Credit?

People in Victorville want to know: “How will Bankruptcy affect my credit? How long will a Bankruptcy stay on my credit report?” This is only normal because they want to rebuild their credit as soon as possible.

Let’s talk about that.

How will Bankruptcy affect my credit?

Think about it. If you’re at the point of needing a Bankruptcy, then your credit report is probably about as bad as it can get. Chances are that charge-offs, garnishments, late payments, and foreclosures have already taken a significant toll on your credit.

Just after you file Bankruptcy your credit score will drop. Then it will gradually start to rise and get better over time. Here’s why.

First, creditor will change the way they see you. Right now they see you as a person with a lot of unsecured debt that might file Bankruptcy at any time. But after a Bankruptcy they’ll begin to see you and someone with little or no unsecured debt (i.e., credit cards). They’ll realize you can’t file Bankruptcy again for 8 years. That means you’re a good credit risk and you’ll probably start receiving credit card offers again.

Second, your debt-to-income ratio will greatly improve overnight.

How long does Bankruptcy stay on my credit report?

The length of time your Bankruptcy stays on your credit report varies for one credit reporting agency to the next. Here’s the general rule:

• A Chapter 7 Bankruptcy remains on your report for 10 years from the date of filing.

• A Chapter 13 Bankruptcy remains on your report for 7 years from the date of filing.

• Other negative information (i.e., late payments or charge-offs) can stay on your credit report for 7 years.

What should I do after filing Bankruptcy?

First, you need to set a goal to start rebuilding your credit rating. That’s not as difficult and you may think.

The most important thing you can do to rebuild your credit is PAY YOUR BILLS ON TIME. Like someone has said: “It’s not Bankruptcy that hurts your credit; it’s not paying your bills on time.”

Second, after you’ve received your Bankruptcy discharge, you need to check with the 3 major credit bureaus at least once a year to make sure that your credit reports are correctly stated. If you find errors or debts that haven’t been removed, then write the credit bureau and point it out. Demand that they correct it.

Remember … the Bankruptcy court doesn’t report any information directly to the credit bureaus. It’s your responsibility to do that.

Here’s how to get your free credit report

Did you know that recent federal law gives yo the right to have one free credit report per year from each of the 3 major consumer credit reporting bureaus. Because each of the credit reporting agencies have different information you should check out all 3 and correct any errors on your reports.

To get your free credit report you can click on the following link

www.AnnualCreditReport.com

Here are the links to Contact the 3 major credit bureaus directly for yourself.

www.Experian.com

www.TransUnion.com

www.Equifax.com

Contact a Bankruptcy attorney to learn more about how a Bankruptcy may help you and how it will affect your credit.

I’ll bet you have some questions. You can Contact Me by phone at 760-241-3215. Stephen Brittain

Talk with me. I’ll treat you like a friend.