Archive for April, 2008

A How To Guide for Spending the Tax Rebate Check

As I was spending my time reading a variety of websites today, I cam across on article on CNN.com that talks about how different people in the United States plan to spend their tax rebate checks.  The news reported in the past few days that the first of the economic stimulus payments are going out early in hopes of stimulating the economy now, instead of a week later like the original plan.  I’m not sure if that extra week is going to make a bit of a difference but hey, if it makes life easier for some to get their check early then that sounds good to me.

Six Figures and Broke Debt Update

I try to update my chart over at the No Credit Needed Network once a month, today was that day. Over the past month, we have a net reduction of $1510 on our credit cards. As I’ve previously mentioned, I have not included my automobile loan, home equity loan or student loans in that chart. The amount would have been lower but my husband has had about $800 in charges hit his account for his upcoming business travel. So in a month, when we receive the expense check, we’ll be able to apply that chunk of money to the debt.

Since we started with NCN at the end of 2007, we have paid off 12.49% of our debt. At this rate, we’re looking at about 32 months to pay off the debt. As my income goes up a little bit (I am a freelance writer so it isn’t much right now) this will go a little bit faster as 100% of what I make goes directly on to debt.

Maxed Out Documentary Review

After seeing Maxed Out (a documentary) mentioned on several websites, I decided to check it out. What better way to spend a Saturday night than cuddling up on the couch and watching a movie about debt, right? The film, by director James Scurlock, provides an insider’s view of debt collectors and the credit card industry. In all honesty, as a user of credit, the documentary was a bit scary to watch. I’ve seen enough documentaries to know to take everything I see with a grain of salt but even if only a portion of what was presented is true, it is definitely the right time to stop using credit.

Visiting a Few Personal Finance Blogs

In reading through some of my favorite personal finance blogs, I decided to do my own blog entry highlighting some of their articles today.

No Credit Needed 5 Rules of Spring Training (for your finances) - Fun entry and correlates personal finance to baseball’s spring training.  The five rules are:  Pitchers and Catchers Report First, Start Slowly, Go Somewhere Warm, Practice the Fundamentals and Have Fun.  A must-read. 

The Top Five Personal Finance Sites

As consumers across the United States are being affected by the housing crisis and the credit crunch, personal finance websites are noticing an upswing in traffic. Consumers are using Google as their financial counselor and looking for information on how to secure their personal financial future. Read on to learn more about the top five personal finance sites.

Debt After Divorce

As I’ve mentioned previously, I listen to the Dave Ramsey Show podcasts on a regular basis. Although I don’t always agree with what Dave says, I do feel motivated by listening so continue.  Several times a week, he will get a call from a person who is either divorced, or going through a divorce, and is looking for financial advice.  He is always spot on with that advice, the creditors don’t care what the divorce decree says and that financial agreement between you and the creditor supersedes the divorce decree.

I know I’ve mentioned this before, but back in the 1990s I was a collection representative for Discover Card.  I started out working accounts that were 30 days late and ended up working charge-off accounts and doing pre-legal screening on the high-number accounts for possible litigation.  As part of our training, we were responsible to keep up to date on the federal regulations as well as what information was in the card member agreements.  The divorce topic came up often and sure enough, when you signed up for a Discover Card you stated that you were responsible for the debt in the case of a divorce, regardless of what a judge said.

Today in my Google Alerts I received a link to an article from Kiplinger.com entitled “Handling Debt After a Divorce” in the “Ask Kim” section.  Author Kimberly Lankford offers some great advice, here is an excerpt:

Unfortunately, there’s nothing you can do about the harm that was already done to your credit report. A divorce decree is an agreement between the divorcing couple, but “it does nothing to separate their assets, accounts or financial obligations,” says Maxine Sweet, vice-president of consumer education for Experian.

Despite the decree, your name is still on the loan, so you’re liable for all the payments, and the mortgage company is unlikely to remove the delinquency from your report.

Read the entire story here:  Handling Debt After a Divorce. 

2008 Economic Stimulus Payment Information

The time is quickly approaching for the 2008 Economic Stimulus Payments to be processed.  Tomorrow is tax day and the deadline to file your 2007 Income Tax.  Even those individuals who wouldn’t usually file a tax return (some disabled individuals, veterans, etc) need to be sure to file for 2007 as the 2008 Economic Stimulus Payments will only be sent to individuals who filed a 2007 Income Tax return. 

Site Redesign

Six Figures and Broke has been redesigned to provide information in a more clear and concise manner.  Look for up-to-date information on the topics of consumer debt and personal finance plus continue to follow me in my journey to get, and stay out, of debt!