Evan Vitale

Evan Vitale – Resist Holiday Spending Bug

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Evan Vitale

November is here and, before you know it, you’ll be bombarded with holiday ads, commercials and new credit line offers so you’ll have more money to spend during the busy shopping season.

The temptation to spend – especially when creditors offer credit in front of your sparkling eyes – now is the time to stick to your budget; stick to the plan that you set nearly a year ago. Resist the urge to spend and resist the urge to sign up for a new line of credit.

You’ve come so far in creating and setting your budget, now is not the time to blow it. Yes, everyone will have a Merry Christmas, but you’ll regret the spending decisions you make now when the credit card bills come around in January (and, believe me, everyone regrets those big spending decisions when that fat bill – with high interest rates – arrives in the mail).

Suzy Orman calls it the “buy-it-now-bug” saying everyone catches the spending bug now and we start feeling the full effects in January. She advises:

  • Use only cash. Challenge yourself to not buy any gift with a credit card.
  • Go homemade. Whether it’s baked, knitted, scrap-booked or any other gift that you make yourself, it will feel more meaningful to the recipient and it will keep you away from the spending temptation.
  • Check your giving circle. Have a conversation with your family and friends about scaling back with your holiday giving. Who knows? They may have wanted to have the same conversation with you, so break the ice and have that discussion now.

An extra tip is to have a “secret Santa” drawing in your family. Instead of giving gifts to everyone, why not set a budget and everyone has a “secret Santa?” This way, the spending is kept to a minimum and everyone gets to enjoy a special gift.

Resist the urge. Follow the tips mentioned above and stay within your budget. You’ll be happier come January!

Evan Vitale – Your Credit During Divorce Part II

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By Evan Vitale

Let’s continue with our second part of our two-part blog series on how to handle and maintain your credit during a divorce.

In our first-part, we shared some thoughts and steps you should take involving joint bank accounts. Now, here are some other items that you should consider that will help you protect your credit during a marital split.

If you have any loans, such as an auto loan, you’ll want to make sure your name (or your spouse’s name) is removed from any joint auto loans. If you’re retaining the car, then the loan should be in your name. However, if you are not able to retain the auto, then you’ll want to make sure your name is removed from the loan, so you’re not obligated.

If there is a house, then this could become a little more sticky as it’s not as easy to drop a person’s name from the mortgage. Usually, if a person is going to keep the house, they will need to refinance the home in just their name (thus, removing the other person from the loan). If this is not possible, then it’s better to sell the house and split the profits (which protects everyone). Of course, there are many horror stories of credit disaster as both names are on the mortgage and the loan is never paid, resulting in foreclosure and destroyed credit.

Once all joint assets have been dissolved, liquid assets (with the help of an attorney) can be divided along with any remaining cash.

You will also need to notify all creditors and banks of your divorce. If a collector is calling on a debt that you are not legally responsible for, you will want to let them know that you are no longer married and therefore no longer responsible for the debt. You might also want to notify them in writing.

Finally, when you feel everything is dissolved and the matter is closed, keep an eye on your credit. Check it regularly. Many times, people are later surprised when something pops up on their credit report that didn’t belong to them and now a credit repair needs to be done. Catching it early rather than later is going to be much better for you and your credit in the long run.

Divorce is a very difficult time, so you definitely don’t want to have credit issues and hassles along the way. Work with your attorney, your banks, your credit cards and loans to solve these matters as soon as possible.

Evan Vitale – Your Credit During Divorce Part I

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By Evan Vitale

Divorce isn’t fun for anyone, but in the event of an unfortunate divorce, the last thing you probably have on your mind is protecting your credit.

Usually during marriage, one spouse will manage all of the finances (i.e., creating a budget, paying bills, making deposits, savings, etc.). However, during divorce, you want to separate all accounts. You’ll want to make sure whose name is on what account. If the account is joint, then both spouses have the responsibility of making sure the account is paid. Creditors don’t know what the agreement is on a joint credit card balance, nor do they care.

Unfortunately, a joint account usually will remain open and one spouse will run up a large bill. Even during a divorce, both spouses are responsible for the credit card balance. I’m sure we’ve all have friends on both sides of the fence here when it comes to one party running up a credit card balance and the other one feeling like they are suck with the balance.

If you have an individual account with an “authorized user,” then you will want to take immediate steps to remove the authorized user. As long as the “authorized” person is still on the account or credit card, they have the authority to use the card, etc.

In addition, you’ll want to dissolve any joint banking accounts. When cancelling a bank account be sure to do it together, the legal way. That way there won’t be a dispute on the balance at the time of the closing. You may also want to consider removing one of the spouses name, diving up the funds accordingly and leaving your funds in the account in order to keep the account (and any associated bank cards, automatic payments, etc. intact).

More on handing divorce credit in our next blog post!

Evan Vitale – Rebuilding Your Credit

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By Evan Vitale

Bad credit can happen to anyone. Loss of a job, medical bills and other circumstances can make it difficult to make ends meet.

Unfortunately, as we all know, bad credit follows us for the rest of our life. It will make it difficult to buy a home, a car or rent an apartment. Bad credit can also mean higher auto insurance premiums or higher interest rates and other problems.

Never fear. You can work to rebuild your credit score by following some simple steps along the way:

– Apply for a secured credit card. While it’s “secured” by a deposit equal to the card’s credit limit, it’s a good way to get started in rebuilding your credit as your payments here will be reflected on your personal credit report.

– Consider applying for another credit card. Don’t go crazy and apply for many; just one. You may find a financial institution will give you a credit card with a small limit ($300 for example) and a high interest rate and annual fee. Only use the card one or two times per month to make small purchases. These would be for things you would normal need to purchase such as groceries or gasoline. Make your payments on time and pay off the balance due each month. After a while, the card will increase your spending limit, but continue to follow the plan.

– Check your credit report and dispute any outstanding debts you are unsure of on your report. Try to get older negative credit information removed from your report. Anything you can get removed from your report will help boost your credit score.

The process may seem slow at times, but you will steady start to improve your credit score and get back on the road to good credit.

Evan Vitale – College Students and Credit Cards

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By Evan Vitale

When it comes to college students and credits cards, it can sometimes be like mixing oil and water. Sometimes, it seems like credit card companies offer credit to college students like candy.

Too much of anything is a bad thing.

Fortunately, college students still need to qualify for credit and, with some help from parents (and the bank), students can keep themselves out of early credit trouble.

Here are some tips for college students thinking about credit cards:

  • Make sure you know how credit cards work. What’s the credit limit? Is there an annual fee? What is the interest rate? When is the due date? What is the penalty and late fee if you can’t pay on time?
  • It is a good idea for any student to have a job before they have a credit card. Typically, if a student is under the age of 21 and they don’t have a job, they may need a co-signer in order to obtain a credit card. Even then, higher interest rates may be attached to the card due to the risk involved.
  • Make sure you do your research. Many credit card offers will be coming your way as you start college. Check the rules; rates; fees and benefits of each card before filling out an application.
  • Avoid signing up for multiple cards. With many credit cards in hand, you’ll be tempted to spend more and, before you know it, you’ll juggling payments and late fees. This is how quickly some college students get into credit trouble.

Some credit cards offer rewards for purchases made using a particular credit card. In some cases, rewards act as cash that you can use to help pay off your credit card balance or they can be cashed in for other perks such as free gas or for gift cards.