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Liz Pulliam WestonMoney Talk |
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Dear Liz: I am in my 40s. My wife and I have great jobs that pay well, but at times it seems as though we can't get ahead. With income in the $170,000 range, you'd think it would be easy. But with children, retirement, vacations, it's not. Any insights?
Dear Liz: Over the last year, I have been trying to identify and pay off old debts by getting copies of my credit reports. I've been attacking these old bills one at a time while also sending in extra payments to bring down my credit card balances so that only 10% to 20% of the credit limits are being used. How long will it take before I see my credit score start to go up?
Dear Readers: As the economy deteriorates, more of you are submitting questions about debt and its effect on your finances. Today's column is devoted to providing answers on this topic.
Dear Liz: I have a 403(b) retirement account at one of the financial firms that nearly failed but that found a last-minute buyer. That made me wonder what would happen to my retirement money if the company had failed. My money is all in a money-market fund.
Dear Liz: My wife and I have two young children, a mortgage and two financed cars. We also have more than $100,000 of debt, mostly on credit cards that are in my wife's name. Our savings are gone. I have never been in this situation before. I am self-employed and bring home about $6,000 a month. My wife doesn't work. Personally, I don't think I will ever pay off this debt, and I don't know if I should call a financial advisor or a lawyer. What do you think of my situation?
Dear Liz: Last I looked I had a credit score of 680. I think it should be better as I haven't even missed a payment in well over seven years.
Dear Liz: I need help. I'm a 42-year-old woman with serious medical problems and $5,000 in credit card debt. My only income right now is $668.25 a month in Supplemental Security Income. My daughter recently turned 18, which means we lost her Social Security allowance of $720 a month. I recently had to apply for food stamps. I was in a debt consolidation program to pay off my credit card debt, but now I can't pay. I want to work but I'm too ill, and I don't want to file for bankruptcy. I feel that I should pay my debt, but how?
Dear Liz: I've incurred roughly $56,000 in student loan debt. The federal loans were consolidated at a rate of 4.75% a few years ago. The rest are private loans and have higher, variable interest rates. I've heard that some people have been able to transfer their student loan debt to a very-low-interest credit card (say about 1% or 2%) and paid it off ahead of schedule this way. Is this a smart move for the private loans? If so, how would I find such an offer? (Perhaps through a credit union?)
Dear Liz: My husband and I just inherited about $700,000 in a brokerage account. About $300,000 is in municipal bonds. The rest is in various mutual funds with some cash, corporate bonds and other, "alternative" investments. In addition to the inheritance we have $400,000 in IRAs and SEP IRAs, as well as equity in our home. We are both semi-retired consultants who intend to keep working for at least five to 10 years.