Julia asks: I’m deciding on whether to go to graduate school and need to consider costs. I have $15k in cash, but that won’t hold a candle to what it will cost in full. Is a master’s degree at a not-well-known school (but still accredited for the program) worth the nearly free tuition of being in-state? I’m going into environmental planning, a field that isn’t known for being “lucrative”. Read more…

Oct 6th, 2009 by David Weliver in Uncategorized
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Chris asks: Both my wife and I are in the military. I am currently deployed and will be re-enlisting for another four years of service. My career field receives a bonus for re-enlisting which will be about $78,000. I’ll get half up front, and the rest in annual installments over the next four years (all of which is tax-free because I am in a tax free warzone). We were planning on buying a new vehicle when I returned, but other than that have no plans for the money. We know we want to save for our future (retirement) but don’t know where to start. Read more…

Oct 5th, 2009 by David Weliver in Investing, Retirement, Saving
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Edward asks: If I have a balance transfer option on a card but I already have a balance on that card, can I transfer the balances onto other cards and, once those transfers clear, transfer the money back to the original card and get the zero or 1.99 percent transfer APR that they were going to give me? Read more…

Oct 5th, 2009 by David Weliver in Credit Cards, Debt
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Lara asks: How do I cope with debts that are much bigger than what I am earning now? Read more…

Oct 4th, 2009 by David Weliver in Debt
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MB asks: I have an LLC and have found a contract position through a third party. I want to be paid on a corp-to-corp basis. The third party broker says that they can only pay me on a corp-to-corp basis if I can show proof that I pay myself on a W2 basis. I tried to explain that single party LLC’s don’t pay themselves as W2 employees. I file a Schedule C. The company says that because the work being done in classified as “W2″ work (as opposed to independent contractor work), they have to be sure that whoever they contract is being paid as a “W2″ employee. Is this true? Can LLC’s not be paid for doing “W2″ work? Read more…

Oct 3rd, 2009 by David Weliver in Self-Employment, Tax
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Ben asks: “My twin brother and I share a Credit Card with Citibank and want to change our card from their “Elite” level which charges a fee, to their “Bronze” level, which does not charge a fee. The folks at Citi said they weren’t sure if this would affect our credit scores. They said it might show on the report as “Brand Conversion.” Will this affect our scores?”

It all depends on whether they treat the change as a “conversion” as they suggest or the cancellation of your original credit card and a reapplication for a new one. Push them on whether the account will remain the same, or whether you’ll have to apply for a new card. Some credit card companies will only allow you to switch cards by canceling your original account and reapplying for a new card.

If this is the case, yes, it may damage your credit, because your credit score improves the longer you have had accounts opened. If, for example, you had the original “Elite” card open for five years, you would losing out on five years of history on your report. In the end, I wouldn’t take the company’s word for it. If you are convinced you want to make the switch, be prepared for it to have at least a minor negative impact on your score.

Sep 24th, 2009 by David Weliver in Credit, Credit Cards
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Dan asks: I have an opportunity to reach a debt settlement agreement with one of my credit cards, in which they will forgive about 30% of my debt if I pay the remaining balance in full over a couple of months. Will this hurt my credit score? How badly will my credit be damaged by this settlement?

When a creditor offers to settle a debt for less than you owe, it can be a big relief. Unfortunately, debt settlement is not without consequences. Among those consequences is the effect of debt settlement on your credit score.

When you pay off a debt in full and close the account, it will appear on your credit report as closed/paid-in-full or paid-as-agreed. That’s what you want to see. If you settle this debt, however, your credit report will likely reflect that the account is closed and charged-off or negotiated. Ideally, the creditor will place a note in your credit file stating that you paid most of your balance. If not, you can approach the credit bureaus yourself and enter this information into your file.

How will this affect your credit health? To be honest, it will set you back. BUT, ask yourself this. If you are settling this debt, were you already late with this or other accounts? If so, getting this debt off the books may—in time—help your credit out because your report will no longer reflect late payments. Often times when trying to get out of debt we make decisions based upon preserving our credit, when in reality its that credit that got us into debt trouble in the first place. If given the choice between getting rid of your debt and avoiding damage to your credit score, I’d pick getting rid of the debt!

Good luck!

Sep 24th, 2009 by David Weliver in Debt, Uncategorized
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Angela asks: “Where can I get the really free government credit report?”

Consumers in the United States are entitled by law to access each of their three credit bureau reports once each year. You may request these free credit reports under the government law at annualcreditreport.com. As far as we know, this is the only Website that provides access to the free credit reports as mandated by federal law. Other sites (like freecreditreport.com) are actually paid services that may offer a free trial.

Note that when you request your free government credit report from annualcreditreport.com, you will be asked which reports you want: Your credit report from Experian, TransUnion, and/or Equifax. You may check all three at once or check one at a time and different times throughout the year.

Aug 11th, 2009 by David Weliver in Uncategorized
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Testing…

Dec 9th, 2008 by David Weliver in Uncategorized
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