Kimberly
Credit
Therefore, it is important to:
* Finding out what you owe
* Freeze your debt
* Discuss and allocate responsibility
* Living reasonably with your debt
Finding Out What You Owe
You may already know what is owed since most couples
do. However, if your spouse has been secretive about financial
affairs, or if your spouse is unable to resist spending money
and taking on additional debts, you may be in dark with the exact
amount of debt involved. And, one of the easiest ways to find
out about outstanding debt is to get a copy of your credit report.
Who knows, you and your spouse may have a shared credit history
that you are unaware of and, getting your credit report from all
three agencies is probably a good idea.
Divorce Debt Uncovered
Jenny thought she was just wasting time ordering
credit reports. But what she soon discovered came as a shock to
her. You see, her husband had signed her name to six different
credit card agencies, running up more than $15,500 in credit card
bills in her name.
Credit Report Errors
If your report has errors, each credit-reporting
agency provides detailed and specific instructions on how to correct
errors.
Bad Credit Warning
If your credit is damaged, don't fall victim to
a company that promises to be able to repair your credit for you.
Everyday, companies nationwide appeal to consumers with poor credit
histories. They promise, for a fee, to clean up your credit report
so you can get a car loan, a home mortgage, insurance, or even
a job. The truth is, they can't deliver. After you pay them hundreds
or thousands of dollars in up-front fees, these companies do nothing
to improve your credit report; many simply vanish with your money.
No one can legally remove accurate and timely
negative information from a credit report. But the law does allow
you to request a reinvestigation of information in your file that
you dispute as inaccurate or incomplete. There is no charge for
this. Everything a credit repair clinic can do for you legally,
you can do for yourself at little or no cost. According to the
Fair Credit Reporting Act:
* You are entitled to a free copy of your credit
report if you've been denied credit, insurance, or employment
within the last 60 days. If your application for credit, insurance,
or employment is denied because of information supplied by a credit
bureau, the company you applied to must provide you with that
credit bureau's name, address, and telephone number.
* You can dispute mistakes or outdated items for free. Ask the
credit reporting agency for a dispute form or submit your dispute
in writing, along with any supporting documentation. Do not send
them original documents.
Clearly identify each item in your report that
you dispute, explain why you dispute the information, and request
a reinvestigation. If a new investigation reveals an error, you
may ask that a corrected version of the report be sent to anyone
who received your previous report within the past six months.
Job applicants can have corrected reports sent to anyone who received
a report for employment purposes during the past two years.
When reinvestigation is complete, the credit bureau
must give you the written results and a free copy of your report
if the dispute results in a change. If an item is changed or removed,
the credit bureau cannot put the disputed information back in
your file unless the information provider verifies its accuracy
and completeness, and the credit bureau gives you a written notice
that includes the name, address, and phone number of the provider.
You also should tell the creditor or other information
provider in writing that you dispute an item. Many providers specify
an address for disputes. If the provider then reports the item
to any credit bureau, it must include a notice of your dispute.
In addition, if you are correct-that is, if the information is
inaccurate-the information provider may not use it again.
If the reinvestigation does not resolve your dispute,
have the credit bureau include your version of the dispute in
your file and in future reports. Remember, there is no charge
for a reinvestigation.
Freezing Debt
Once your debt is identified, your main goal is
to keep it from getting worse and prohibit a barrage of new charges
appearing on your statement.
An easy and quick way to do this is the time-honored
adversarial divorce technique of cutting off the credit cards.
But, prior to taking that step, it is important to inform your
spouse The way to do it is to call the number on the back of the
card. But, keep in mind; you probably won't be able to cut off
your spouse without cutting off yourself.
If you and your are cooperating with each other
(and remember, most spouses do), see if you can't agree on a card
or two that will remain in effect for designated purposes subject
to designated limits on spending.
Choices
You have two choices as you deal with the payment
of your debts:
1) Agree to pay them off immediately or
2) Agree to be equally responsible for them.
Pay Off
If you have or if you have property that you can
sell for cash, paying off your debts immediately is simpler, cleaner,
and safer for both of you.
Equal Responsibility Through Debt Consolidation
If you both agree to be responsible for your debt,
and you do not have property or assets to liquidate to satisfy
the debt, an easier way would to be debt consolidation. The counselor
will help you both identify the debts owed, devise a strategy
for getting out from under them, negotiate, or eliminate your
interest rate and perhaps be able to cut your payments by up to
70%. It's simple, sound, and reasonable! For more information
visit our free debt consolidation quote area.
Living With Debt - Live More Simply
You really can do without some of those things
that seemed so necessary a few months or years ago. Trade in your
head-turning car for a nice sensible one, cancel the premium channels
on your cable or see if they are offering other packages and bring
your own salad from home instead of ordering lunch out. For realistic
budget ideas visit our budget planning area.
Three Loan Pitfalls
"Risk-based pricing" Lender
This is all the rage now among lenders. They lure
people in with promises of quick and easy loan approval, and they
usually don’t deliver what they promise. The problem is
that the interest rates attached to these quick and easy loans
may be sky-high, sometimes in excess of 20 percent a year. And
be cautious for penalties or increased interest rates if you're
late with a payment.
Temporary "low-ball" Rate
Let's be realistic here -- does it really matter
what your lender charges you for the first six months, when you're
going to be paying on average for several years? You need to seriously
think through the total cost over the life of the loan. If you
don't know what this is, insist that your lender explain it to
you before you sign on the dotted line. If a lender is advertising
a very low or even zero rate as an introduction, be very suspicious
because you may end up paying for it later.
Home Equity Loan
Home equity loans make a great deal of sense for
many purposes. Because they're secured, you can usually get a
lower interest rate on them, and the interest is often tax deductible.
The problem with home equity loans flows from their advantage:
they're secured.
If you fall behind on an unsecured credit card,
your lender has to sue you to get the money, and you can reduce
or eliminate the debt in bankruptcy. If you fall behind on a home
equity loan, your lender can grab your house.
Article Source: http://www.ArticleJoe.com We have been helping
people with their debt consolidation needs for over a decade,
and our reputation as a full service debt consolidation company
is unsurpassed in the debt consolidationindustry.
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