Brent’s Credit and Debt blog

I talk to many people who are on a credit hunt.  They have decided that they are going to build a huge pile of credit cards, and have lines of credit approaching our national debt!

But when is more credit actually too much credit?  Creditors look at your credit, and start to wonder if you are doing what is called ‘debt pyramiding’.

When you apply for a LOT of credit, especially if you try to get it fast with a lot of applications in a short time, a big red flag is raised with a creditor.  While having a large line of credit available with a low balance might help your scores a very small amount, your creditors look at things in a slightly different light.

Creditors have noticed patterns of credit usage over time.  They know that a person that gets a lot of credit quickly may be tempted to SPEND a lot of credit quickly.  Or, you may be on the verge of financial trouble, and you are stocking up on credit lines so you can live off of credit.

When a person is trying to pyramid their debt, that can mean that they are going to by things on one card, and use a different card to make payments.  The interest starts to add up, and soon you can’t keep up with the minimum payments, much less the amount you actually owe.

If you have established credit, one of the best things you can do is manage that credit well, and let it age.  Trying to get additional credit may hurt your ability to get credit, and denials can hurt your score.

Apply for credit slowly.  Get a card, or a loan, and make sure you have no problems with it.  Use it wisely.  In 6 to 8 months, get another and go through the same process.

I normally don’t like the New York Times.  They seem to have a seriously biased slant to their reporting, and I prefer a more balanced view of things.  However, in this case, one of their reporters has things dead on.

Susan Saulny, a writer for the New York Times, has written a story about a new problem with Foreclosure:  The bank may not want your property back!

In some cases, the cost of the foreclosure exceeds the value of the property.  In that case, the lender may not go through with the foreclosure, which means the holder of the title (the current homeowner) is liable for the property.

The real problem, though, is that in some cases the former owner moves out, but when the foreclosure stops, the former owner is liable for the property.  In the article, Ms. Saulny goes on to explain that this liability may include fines if the home is not kept up, as well as other fees.

The rest of this story is available here:

http://www.nytimes.com/2009/03/30/us/30walkaway.html

That’s it.  The Top 10 Ways to Protect Your Credit During Divorce.

Your life is already tough.  Going through a divorce is one of the hardest things you will ever do.  It touches every part of your life, and you need to protect yourself while going through it.

Remember, it is you taking care of yourself now.  You HAVE to stop thinking about things as a member of a couple, and start thinking about things as a single person again.

I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce.  Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!

You can view the Conclusion video here: 

Remember to ask your questions about credit and debt in the form to the right.  I will answer via blog or video as soon as I can!

When you fill out the form, your question goes straight to my email inbox.  I am an email addict, so I will see it quickly.  If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.

I found an interesting article today on MSNBC about a $38.00 cup of coffee.

Banks are increasingly covering overdrafts, and charging a large fee for the ‘privilege’ of not having a bounce on your account.

Now, personally, I would rather not be able to pay for something than have to eat a $34.00 fee from my bank.  But the banks don’t always give you that option.

Take a look at the article and let me know what you think.

http://www.msnbc.msn.com/id/29879567/

In Tip 1, I am asking you to start managing your money.  This is critical!  You are starting fresh, and it is very easy right now to damage your credit.

I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce.  Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!

You can view the Tip 1 video here: 

Remember to ask your questions about credit and debt in the form to the right.  I will answer via blog or video as soon as I can!

When you fill out the form, your question goes straight to my email inbox.  I am an email addict, so I will see it quickly.  If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.

In Tip 2, I discuss the danger in assigning your legal rights to someone else with a power of attorney.

I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce.  Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!

You can view the Tip 2 video here: 

Remember to ask your questions about credit and debt in the form to the right.  I will answer via blog or video as soon as I can!

When you fill out the form, your question goes straight to my email inbox.  I am an email addict, so I will see it quickly.  If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.

In Tip 3, I discuss your financial picture during the divorce process.  If you aren’t awarded enough money to live on, you need to say something.

I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce.  Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!

You can view the Tip 3 video here: 

Remember to ask your questions about credit and debt in the form to the right.  I will answer via blog or video as soon as I can!

When you fill out the form, your question goes straight to my email inbox.  I am an email addict, so I will see it quickly.  If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.

In Tip 4, I discuss how taking care of your financial obligations will help you to move ahead after your divorce. .

I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce.  Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!

You can view the Tip 4 video here: 

Remember to ask your questions about credit and debt in the form to the right.  I will answer via blog or video as soon as I can!

When you fill out the form, your question goes straight to my email inbox.  I am an email addict, so I will see it quickly.  If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.

In Tip 5, I discuss how paying off joint accounts may cost you money while letting your spouse off the hook.

I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce.  Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!

You can view the Tip 5 video here: 

Remember to ask your questions about credit and debt in the form to the right.  I will answer via blog or video as soon as I can!

When you fill out the form, your question goes straight to my email inbox.  I am an email addict, so I will see it quickly.  If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.

In Tip 6, I discuss how changing your spending habits now can help you in your new life, especially if your financial status will change.

I have posted a video series to the MyCredEd YouTube channel discussing how you can protect your credit during divorce.  Remember, your divorce will be over soon, but the effects of a credit problem can last years longer!

You can view the Tip 6 video here: 

Remember to ask your questions about credit and debt in the form to the right.  I will answer via blog or video as soon as I can!

When you fill out the form, your question goes straight to my email inbox.  I am an email addict, so I will see it quickly.  If I put your question into a video, or answer it in a blog, I will send you and email back to let you know the answer is ready.