Liz Pulliam Weston
Money Talk
Prepaying mortgage may not make financial sense
November 15, 2009
Dear Liz: We refinanced our house in January for a 30-year fixed rate of 4.625%. We are paying about $513 a month extra toward the principal, which will allow us to pay off our mortgage in 16 years.
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New car or used? Buy either, but be smart
November 8, 2009
Dear Liz: My husband and I own a car that's on its last legs, and we are contemplating a replacement.
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Consider these factors before refinancing your home
November 1, 2009
Dear Liz: When does it make sense to refinance a home? I have a 30-year, fixed-rate jumbo loan. The loan is just over 2 years old with a rate of 6.5%. Should I refinance to 5.75% with zero points? I make extra payments every month with the intention of paying the loan off in 15 years, but I don't want to be locked into a 15-year rate in case I have some difficult times.
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One simple way parents with good credit can help children build theirs
October 25, 2009
Dear Liz: My credit scores are good (over 800 when I refinanced my mortgage last year). I was thinking of listing my son, who is 14, as an authorized user of my credit cards to start establishing his credit history. Will it work? Is there any other way to help him? If it is too early, when is a good time to start?
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An estate plan can be done inexpensively
October 18, 2009
Dear Liz: We want to have an estate plan that doesn't cost a ton of money. We're both in our early 40s and have no children. I'd label us middle class, with not much money left over after monthly bills. Lawyers want too much money to "help" us. Isn't there a better solution?
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When student loans hit collection agencies
October 11, 2009
Dear Liz: I'm in default on my student loans.
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Balance-transfer deals are getting scarcer
October 4, 2009
Dear Liz: Can we really trust the banks anymore to adhere to the terms they offer us? I liked your suggestion about using low-interest-rate balance-transfer offers to speed up debt repayment. However, one of my credit card issuers has both increased my minimum payments and lowered my limits on my credit card and line-of-credit accounts. When I asked why, they said, "Because we can." So when they send me a set of balance-transfer checks with a 1.99% interest rate, I don't trust them to keep their word. Now I am just concentrating on paying off the balance as soon as possible and will keep the card only for emergency use.
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Stop allowing withdrawals from the Bank of Mom and Dad
September 27, 2009
Dear Liz: My husband and I are having a rough time making it from paycheck to paycheck. We make pretty good money. We have four children and end up helping them every month. We cannot seem to make it without going in the hole in our checking account. Could you please help me with what we should do?
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Before a divorce, separate your finances
September 20, 2009
Dear Liz: My wife and I each had excellent credit when we married 10 years ago. We are now divorcing (amicably). Since we married, we have put everything in her name: two houses in succession, three cars, all car insurance and utilities. We refinanced our house in February with her name first.
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Pitfall in this saving strategy
April 20, 2008
Dear Liz: I'm self-employed and have a Simplified Employee Pension account. Every year I borrow from an equity line to contribute the maximum to this account. My wife questions whether we are ahead by doing this. I say yes because we obviously save on the amount we pay in taxes and are paying only 5.25% on the equity line. We hope to pay off the loan in six months, plus we get to write off the interest. Is this a good plan?
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Fighting an unethical debt collector
April 6, 2008
Dear Liz: I think I'm being pursued illegally for a debt I don't owe. I visited a hospital in June 2007. It took my health insurer about six months to process the claim. Shortly after I received my benefits statement from the insurer, I received a call from a collection agency saying I had to call back immediately and give my credit card number to pay this debt. Instead, I called the doctor's office the next day. The receptionist told me my account was still open and had not been turned over to collections. I gave them my address and they sent me a bill, which I paid. A month later, I got another call from the collection agency, once again telling me I had to pay that very same day and that I had to call back with my credit card information. My requests to be faxed a bill have been ignored. When I asked that a bill be mailed to my home, the woman I talked to said the address I gave her was false (it wasn't). I just received another call, and the caller threatened to put this debt on my credit report if I don't pay. What is going on here? Is this fraud? I get really nervous with these calls, and I'm not sure what's going on here.
