How to Manage Your Finances (Collection)

Description

In Your Credit Score: How to Improve the 3-Digit Number That Shapes Your Financial Future, fourth edition, Weston thoroughly covers brand-new laws changing everything from how your credit score can be used to how you can communicate with collectors. Weston also updates her guidance on using FICO 08 to raise your score… fighting lower limits or higher rates… maintaining the right mix of cards and balances… bouncing back from bad credit… choosing credit "solutions" that help, not hurt… and much more!

In There Are No Dumb Questions About Money, Weston answers your most pressing questions, helping you navigate today's more-complicated-than-ever financial world. Through real-life reader questions and clear, to-the-point answers, Weston shows how to manage your spending, figure out what you can and can't afford, and choose the smartest ways to pay off your debt. You'll discover why most investment strategies don't work, and identify better ways to save for retirement. But you'll also learn to handle the trickier, emotional side of money: how to avoid fights with your partner, deal with spendthrift children or parents, and spot con artists or lousy advisors before you get robbed. Using humor, keen insight, and time-tested financial planning principles, Weston can help you wrangle your money into shape -- and find your own path to financial freedom.

Sample Content

Table of Contents

Your Credit Score: How to Improve the 3-Digit Number That Shapes Your Financial Future, 4/e

Introduction     xxii

Chapter 1  Why Your Credit Score Matters     1
How Your Credit Score Affects You     1
What It Costs Long Term to Have a Poor or Mediocre Credit Score     3
How Credit Scoring Came into Being     6
How Credit Use Has Changed over the Years     7
Consumer’s Fight for Truth About Credit Scores     8
Credit Controversies     9
    Credit Scoring’s Vulnerability to Errors     9
    Credit Scoring’s Complexity     10
    Credit Scoring’s Use for Noncredit Decisions     11
    Credit Scoring’s Potential Unfairness     11

Chapter 2  How Credit Scoring Works     15
What Is a Good Score?     17
Your Credit Report: The Building Blocks for Your Score     18
How Your Score Is Calculated     19
The Five Most Important Factors     20
    Your Payment History     20
    How Much You Owe     21
    How Long You’ve Had Credit     22
    Your Last Application for Credit     22
    The Types of Credit You Use     23
Your Credit Scorecard     24
Your Results Might Differ     25
How Do I Get My Score?     26
What Hurts, and for How Long     31
New Versions of the FICO Score     33

Chapter 3  FICO Versus “FAKO”--Competitors to the Leading Score     39
The VantageScore Scale     40
How VantageScores Are Calculated     42
Comparing the Scoring Systems     43
Some Rules Remain the Same     44
So Which Is Better?     45
VantageScore’s Future     45
Other Scores Lenders Use     47

Chapter 4  Improving Your Score--The Right Way     51
Step 1: Start with Your Credit Report     51
    Check the Identifying Information     52
    Carefully Review the Credit Accounts     53
    Parse Through Your Inquiries     54
    Examine Your Collections and Public Records     54
    Dispute the Errors     55
Step 2: Pay Your Bills on Time     56
    How to Make Sure Your Bills Get Paid on Time, All the Time     57
Step 3: Pay Down Your Debt     60
You Need to Reduce What You Owe Rather Than Just Moving Your Balances Around     61
    You Might Need to Change Your Approach to Paying Off Debt     61
    You Need to Pay Attention to How Much You Charge--Even If You Pay Off Your Balances in Full Every Month     62
    How to Find Money to Pay Down Your Debt     64
Step 4: Don’t Close Credit Cards or Other Revolving Accounts     65
Step 5: Apply for Credit Sparingly     65
    How to Get a Credit Score if You Don’t Have Credit     66
Credit Scores Without Credit     70

Chapter 5  Credit-Scoring Myths     71
Myth 1: Closing Credit Accounts Will Help Your Score     72
Myth 2: You Can Boost Your Score by Asking Your Credit Card Company to Lower Your Limits     73
Myth 3: You Can Hurt Your Score by Checking Your Own Credit Report     74
Myth 4: You Can Hurt Your Score by Shopping Around for the Best Rates     75
Myth 5: You Don’t Have to Use Credit to Get a Good Credit Score     76
Myth 6: You Have to Pay Interest to Have a Good Credit Score     77
Myth 7: Adding a 100-Word Statement to Your File Can Help Your Score if You Have an Unresolved Dispute with a Lender     78
Myth 8: Your Closed Accounts Should Read “Closed by Consumer,” or They Will Hurt
Your Score     79
Myth 9: Credit Counseling Is Worse Than Bankruptcy     79
Myth 10: Bankruptcy Hurts Your Score So Much That It’s Impossible to Get Credit     80

Chapter 6  Coping with a Credit Crisis     83
Step 1: Figure Out How to Free Up Some Cash     86
Step 2: Evaluating Your Options     89
    Task 1: Prioritize Your Bills     89
    Task 2: Match Your Resources to Your Bills and Debts     91
    Task 3: Figuring Out a Repayment Plan     92
The Real Scoop on Credit Counseling     94
Debt Settlement: A Risky Option     97
Should You File for Bankruptcy?     100
The Effects of Bankruptcy Reform     101
The Type of Bankruptcy That You File Matters     102
Should You Walk Away from Your Home?     104
Step 3: Choose Your Path and Take Action     106
    Option 1: The Pay-Off Plan     106
    Option 2: Credit Counseling     107
    Option 3: Debt Settlement     107
    Option 4: Bankruptcy     107

Chapter 7  Rebuilding Your Score After a Credit Disaster     109
Part I: Credit Report Repair     111
Scrutinize Your Report for Serious Errors     112
Know Your Rights     113
    Organize Your Attack     115
    What You Need to Know About Unpaid Debts and Collections     116
    What You Need to Know About Statutes of Limitations     119
    Should You Pay Old Debts?     122
    “But You’ve Got the Wrong Guy!”     125
Part II: Adding Positive Information to Your File     126
    Try to Get Positive Accounts Reported     126
    Borrow Someone Else’s History     127
    Get Some Credit or Charge Cards if You Don’t Have Any     127
Part III: Use Your Credit Well     128
    Pay Bills on Time     129
    Use the Credit You Have     129
    Keep Your Balances Low     129
    Pace Yourself     129
    Don’t Commit the Biggest Credit-Repair Mistakes     130

Chapter 8  Identity Theft and Your Credit     133
New Options That Might Help     137
How to Reduce Your Exposure to Identity Theft     139
    Buy a Shredder     139
    Get a Locking Mailbox     139
    Protect Your Outgoing Mail     139
    Keep Track of Your Receipts     140
Keep Your Financial Documents Under Lock and Key     140
    Get Stingy with Your Social Security Number     140
    Know What’s in Your Wallet     140
    Ask About Shredding Policies     141
    Don’t Let Your Debit Card out of Your Sight     141
    Opt Out of Credit Card Solicitations, Junk Mail, and Telemarketing     142
    Don’t Use a Cell or Cordless Phone to Discuss Financial Matters     143
    Be Wary of Telephone Solicitors and Emails Purporting to Be from Financial Institutions     143
    Be Smarter About Social Media     143
    Safeguard Your Social Security Number     145
    Monitor Your Credit Reports     145
    Consider a Credit Freeze     147
What to Do if You’re Already a Victim     148
    Keep Good Notes of Every Conversation You Have Regarding the ID Theft     148
    Contact the Credit Bureaus by Phone and Then with a Follow-Up in Writing     149
    Contact the Creditors by Phone and Then Follow Up in Writing     149
    Contact the Police or Local Sheriff     149
    Contact Bank and Checking Verification Companies     150
    Contact the Collection Agencies     150
    Get Legal Help     151
    Don’t Give Up     151
What to Do if the Credit Bureau Won’t Budge     153

Chapter 9  Emergency! Fixing Your Credit Score Fast     157
Repairing Your Credit in a Matter of Hours: Rapid Rescoring     158
Boosting Your Score in 30 to 60 Days     161
    Pay Off Your Credit Cards and Lines of Credit     161
    Use Your Credit Cards Extremely Lightly     162
    Focus on Correcting the Big Mistakes on Your Credit Reports     162
    Use the Bureaus’ Online Dispute Process     163
    See if You Can Get Your Creditors to Report or Update Positive Accounts     163
What Typically Doesn’t Work     163
    Disputing Everything in Sight     .164
    Creating a “New” Credit Identity     164
    Closing Troublesome Accounts     164

Chapter 10  Insurance and Your Credit Score     167
History of Using Credit Scores to Price Insurance Premiums     169
But What’s the Connection?     171
What Goes into an Insurance Score     175
Keeping a Lid on Your Insurance Costs     176
    Start Thinking Differently About Insurance     177
    Raise Your Deductibles     178
    Don’t Make Certain Kinds of Claims     178
    Be a Defensive Driver     180
    Use the Right Liability Limits     180
    Drop Collision and Comprehensive on Older Cars     181
    Shop Around     181
    Protect Your Score     182

Chapter 11  Can Bad Credit Cost You a Job?     183

Chapter 12  Keeping Your Score Healthy     189
The Do’s of Credit Health     190
    Pay Off Your Credit Card Balances     190
    Have an Emergency Fund     192
    Have Adequate Insurance     194
The Don’ts of Credit Health     195
    Don’t Buy More House Than You Can Afford     195
    Don’t Overdose on Student Loan Debt     196
    Don’t Let Your Fixed Expenses Eat Up Your Income     197
    Don’t Raid Your Retirement or Your Home Equity to Pay Off Credit Cards     198
Your Score     199
    Get Your Credit Reports     200
    Take Action     200
    Don’t Be Late     201
    Dealing with Mortgages, Car Loans, and Other Secured Debt     201
    Consider a Fraud Alert or Credit Freeze     202
    Look for Lenders Who Aren’t FICO-Driven     202
In Conclusion: The Three-Year Solution     203

Index    205

Introduction     1

Chapter 1  Balanced Budget, Balanced Life: Setting Your Financial Priorities     5
How to Stick to a Budget     6
For a Budget That Works, Get Control of Your Debt     7
What Do Average Families Spend?     8
Balancing Your Budget in the Big City     9
Income Dropped? Expenses Have to Drop, Too     12
How to Beat “Frugal Fatigue”     12
Fast Ways to Cut Cable, Cell Bills     15
What to Do with an Extra $5,000 a Month     15
Planning a Family? How to Prepare Financially     16
Facing a Layoff? Rule #1: Conserve Cash     17
Living Paycheck to Paycheck? Knock It Off     18
Why Your Budget Doesn’t Work     19

Chapter 2  Slay the Debt Dragon     21
What Comes First?     22
What Comes First, Savings or Debt Payoff?     23
Why You Shouldn’t Pay Down Your Mortgage     23
Don’t Drain Your Retirement to Pay Debts     24
Use Inheritance to Pay Down Debt, Boost Savings     25
How to Stop Collection Calls     26
Garnishments Are Taking Food off This Family’s Table      26
Massive Debts Mean Gambling Is More Than a “Habit”     27
Debt Doesn’t Disappear After Lender Write-off     28
How Long Bad Debt Can Haunt You     29
What to Do When You Can’t Afford Your Life     30
Young Widow Struggles with Late Husband’s Debts     31
Dealing with After-Death Creditors     32
Fighting an Aggressive Collection Agency     32
Student Drowning in Debt Needs Professional Help     33
How to Cope with a Big Medical Bill      35
When Bankruptcy Is the Best of Bad Options     36
What to Do When Bankruptcy Won’t Work     37

Chapter 3  Burnish Your Credit Score     39
Improving Bad Scores Takes Time, Patience     40
Why “Free” Credit Scores Aren’t     41
How Credit Card Balances Affect Your Scores     41
Does a Credit Card Make You a Slave to Lenders?     42
Why Carrying a Balance Is Stupid     43
No Credit Cards? You May Not Get the Best Rates     43
How to Use Credit Cards to Improve Your Scores     44
Should You Stay in Debt to Help Your Scores?     44
Don’t Close Accounts If You’re Trying to Improve Your Scores     45
Close Cards the Smart Way     45
Debts Rising? It’s Time to Cut Spending      46
Big Debts Mean You Can’t Afford Your Life     46
Marriage Doesn’t Combine Your Credit Reports     47
Unwanted Time Share Can Lead to Credit Score Hit     48
“Piggybacking” Can Pose a Serious Risk     49
Skimping on Credit Card Payments Can Damage Scores for Years      50
Short Sale Causes Credit Scores to Plunge     50
Finding an Apartment After Foreclosure     51
Recovering from Bankruptcy Takes Five to Ten Years     52
Installment Loans Can Boost Credit Scores     53
Not All Loans Help Your Scores     54
How to Score 800+     54
Credit Scores Not Perfect? Don’t Sweat It     55
Zombie Debt May Still Hurt Credit Scores     56
Insurance Scores Differ from Credit Scores     56
“Too Many Credit Cards” Boosts Insurance Premiums      57

Chapter 4  Couples and Money     59
When Savers Marry Spenders     59
Credit Concerns or Just Cold Feet?     61
Fiancé’s Reluctance May Be Just Prudence     61
His, Hers, or Ours? Setting Up Finances As a Couple     62
Time Share Causes Financial Woes     63
Adding Fiancé As “Authorized User” May Help His Scores, but Be Careful     64
New Wife Could Help His Credit, but She’s Not Obligated     65
Marriage Didn’t Trash Son’s Credit Score     66
Spouse’s Debt May Be Yours—or It May Not Be     66
Separate Your Finances Before Divorce Is Final     67
Couples’ Big Age Difference Affects Retirement Planning     68
Choosing Pension Payout? Get Expert Help     69
How Marriage, Divorce, and Death Affect Your Social Security Check     70

Chapter 5  Family Money: Keeping the Financial Peace      75
When Grandpa Reneges on Promised Money     76
When a Sibling Wants a Loan     76
Supporting the Family Spendthrift     77
Quit Trying to Change a Deadbeat     78
Helping Parents Support a Freeloader     78
Saying No to Handouts for Adult Children     79
Daughter’s Family Is Bleeding Them Dry     80
Could Son’s Unpaid Bills Harm Parents’ Credit? Maybe     81
When It Makes Sense to Let Your Adult Kids Live at Home     82
How to Buy Stocks for Children     82
Dealing with Parents’ Financial Crisis     83
Beware Becoming Trustee of a Sibling’s Money     84
Are Family Heirlooms Worth the Fight?     85
Stepdaughter Wants “Everything”: What Does She Deserve?     86
How Can I Resolve a Spat with My Siblings over an Inherited Home?     87

Chapter 6  How to Stop Working Someday: Saving and Investing for Retirement     89
With Retirement, There’s No Making Up for Lost Time     90
$25 Is Enough to Get Started Saving for Retirement     90
There’s No Such Thing as “Risk-Free” Retirement Investing     91
Stocks: A Must or a Gamble?     92
Dependents Can Fund Roths Even If Their Parents Can’t     93
Don’t Tap Retirement Funds for a Bigger Down Payment     94
Build Retirement Funds Before Paying Down a Mortgage     95
Don’t Suspend 401(k) Contributions to Pay Down Loan     96
Retirement Planning Without a Retirement Plan     96
Self-employed? You’ve Got More Retirement Savings Options     97
Roll Your 401(k) into an IRA? Maybe Not     98
Windfall in Your 50s? Don’t Blow It     99
Get a Second Opinion Before Buying a Variable Annuity     99
Don’t Count on an Inheritance to Fund Your Retirement     100
What’s a “Safe” Withdrawal Rate?     100
Is a 3% Withdrawal Rate Too Conservative?     101
Social Security: Grab It Early, or Wait for Bigger Checks?     102

Chapter 7  Protect What You Have     105
Should a 29-Year-Old Buy Life Insurance?     105
Don’t Buy Life Insurance If You Don’t Need Life Insurance     107
Help Your Pet Without Risking Your Finances     108
Going Bare on Health Insurance Isn’t Smart     109
“Eating Healthy” Won’t Protect Against Medical Bills     109
Is Disability Insurance Worth the Cost?     110
Why You Shouldn’t Buy Cellphone Insurance     111
Get a Second Opinion Before Buying an Annuity     112
When You Can Skip Rental Car Insurance     113
Stick with Insurance Minimums or Buy More Coverage?     114
Is Disaster Insurance Worth the Cost?     115

Chapter 8  Identity Theft     117
Don’t Trust Your Tax Papers to the U.S. Mail     118
Sometimes You Have to Cough Up Your SSN     119
Credit Account Closure May Be Cause for Alarm     119
Credit Freezes May Be Your Best Defense Against ID Theft     120
What Should I Do If My Sister Is an Identity Thief?     121
What to Do When Your Wallet Is Stolen     122
Do Dead People Have to Worry About ID Theft?     123
101 for Identity Theft Victims     124
Redact Your Medicare Card to Reduce ID Theft Risk     125
Are Businesses Protecting Your Social Security Number?     125

Chapter 9  Home Sweet Home: What You Need to Know About Real Estate     127
How Much House Can I Afford to Buy?     128
No Down Payment Saved? You’re Not Ready to Buy a Home     128
Student Loan Debt May Limit Mortgage     130
Shop Hard Before You Refinance     130
When to Pay Down Your Mortgage     131
Should You Refinance a Mortgage That’s Almost Paid Off?     132
When Shorter Loans Make Sense     133
Adjustable Mortgage May Not Be Affordable for Long     133
Should She Walk Away from Her Home?     134
What Foreclosure Does to Your Credit     135
Don’t Expect Mortgage Lender to Do the Right Thing     135
New Rules May Help More Underwater Homeowners     136
Get Help with a Mortgage Modification     137
Short Sales Can Trash Your Scores     138
A Short Sale Isn’t a Bailout     138
How to Speed Up Foreclosure     139
Property Loss May Lead to Bankruptcy     140
Will You Face a Tax Bill after Foreclosure?     140
Finding an Apartment after Foreclosure     141
How to Get a House Sold Fast     142
How to Dump a Time Share     143

Chapter 10  Pay for College Without Going Broke     145
If You Can Save for College, You Should     146
529 College Savings Plans Are a Good Option for Many     147
Withdrawals from 529s Can Be Tricky     148
529s Aren’t Always the Best Way to Save for College     149
Mom Stole College Fund. What to Do?     149
Did Grandma Divert the College Fund?     150
Don’t Overdose on Debt for a Child’s Education     150
“Free Money” May Not Make School Affordable     151
It’s Too Late to Borrow for Child’s College Education     152
Finding a Way to Pay for School     153
Is It Too Late to Go Back to School?     154
“Dream School” Can Turn into a Nightmare     154
Is a “Dream School” Worth Any Price?     155
Ivy League Tuition Waiver Doesn’t Apply to Our “Dream School” Applicant     156
Tiny Salary, Big Debt     157
Degree from For-Profit School Leads to Big Debt     158
How to Make Headway on Student Loans     159
Is Graduate School Worth Borrowing For?     159
Wrestling with Student Loan Debt? Know Your Forgiveness Options     160
Student Loans in Collections? Here’s Where to Find Help     161
Settling Student Loan Debt: Tough but Possible     162
Student Loan Settlement Won’t Be Cheap     163

Chapter 11  Find an Advisor You Can Trust     165
Variable Annuity for a Dying Woman? I Don’t Think So     166
“Unsuitable” Annuity Can Be Undone     167
Is a Money Manager Worth the Cost?      168
How to Find an Advisor You Can Trust      69
Your Broker Is Not a Retirement Expert     169
How to Invest an Inheritance     170
Finding Trustworthy Advisors     171
What to Do Now with Your Extra Cash     172

Chapter 12  At the End: Caring for Elders and Planning Your Estate     173
Helping an Indigent Parent Navigate “the System”     173
Son-in-Law Badgers Elderly Couple for Money     175
Protecting a Parent from Financial Opportunists     176
Daily Money Managers Can Help Pay the Bills     176
A Reverse Mortgage Could Keep Mom in Her Home     177
Asset Transfer Could Delay Medicaid Eligibility     178
Incapacitated Parent? Tread Carefully     179
Father’s Living Trust Is Missing     180
The Documents You Need but Probably Don’t Have     181
Who Needs an Estate Plan?     182
Why Estate Plan?     182
DIY Wills and Trusts Can Backfire     183
Can the Guardian of Your Kids Change His Mind?     183
Are Unequal Bequests a Good Idea, or Are They a Disaster in the Making?     184
Credit Cards Must Be Paid Before Estate Is Distributed     185
Executor Won’t Have to Pay Mother’s Debts out of Pocket     186
Dad Died Without a Will. What Now?     187
A Guide for Executors     187
What’s the Best Thing to Do with an Inherited IRA?     188
Social Security Benefits Don’t Last Forever     189
What Happens to Personal Loans After Lender Dies?     189

Index     191

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