Take the time to understand credit..the good, the bad and the ugly.

I came across the following article this morning and thought it would be good to share.  I have a lot of  friends and clients who really do not understand "credit" and how little things they think are helping their credit score, are actually hurting it.  It is important that when you take out a line of credit that you understand all of the responsibilities that come with it.  You need to know things such as: interest rate (the offer rate and lifetime rate), how the interest rate works, the annual fee and all other fees involved on the account,when your payment will be due, what the difference is between paying the minimum fee due and the account balance or another amount, what happens if you can't pay on time or the minimum amount due, what happens if you go over your credit limit, what happens if you lose your job and can't pay it at all, etc.  Credit cards are the worst kind of credit to have.  Be extremely careful when taking out a line of credit with a credit card company.  There are several different types of credit lines you can have.  Some lines of credit qualify to allow you to deduct the interest paid on the account every year from your taxes.  Credit card interest is not one of them.  Beware....credit can cause extreme financial problems and stress. Credit can be deadly.  Always research, be knowledgeable, ask questions and use credit wisely.  Credit is a big responsibility and you need to be sure that you can make it work for you. 

http://money.msn.com/credit-rating/5-ways-young-adults-ruin-their-credit-cardratings.aspx

Remember, taking care of yourself and your loved ones is most important in life. I care about you and your future! ~ Katie

Top 3 FAQ regarding bankruptcy received this week.

1 - What property do I have to include in my bankruptcy?
You have to list everything that you own in your bankruptcy petition.  Even if you own the item with someone who is not filing bankruptcy with you such as your parents, you must list it.  If you are buying items such as a car or a home and you still owe money on it (this is considered secured property), you must list you have it.  This does not mean that you will lose all of your property if you file a bankruptcy, I am just saying you must list it in your petition.  Most of the time, you can keep all of your property in a bankruptcy.  Secured property can be kept as long as you are able to keep making your payments. 

2 - Who will know if I file a bankruptcy?
Bankruptcy filings are public records; however, they are not published in the newspaper.  In theory, everybody could know, but under normal circumstances, nobody will ever find out.  Bankruptcy filings are done electronically and in order to be able to review the bankruptcy information, you must have an log on to the electronic system.  In order to get a log on you must be an attorney or work for one.  Under normal circumstances nobody will know you filed for bankruptcy.  Keep in mind that bankruptcy is visible on your credit report for 10 years

3 - Can I get credit or be able to buy things after bankruptcy and how long does it stay on my credit report. 
You will qualify for credit right away after you receive your bankruptcy discharge, but  BE CAUTIOUS...it will probably be limited and have a high interest rate.  You can take measures to rebuild your credit; however, you must be CAUTIOUS that you are able to repay the amount you borrow, pay on time and not let your debt get too high.  There are specific time requirements on how often you can file a bankruptcy and you do not want to find yourself in a situation where you can't pay your borrowed debt and cannot file another bankruptcy. 

Remember, taking care of yourself and your loved ones is most important in life. I care about you and your future! ~ Katie

Are you behind in your paying your bills?

If you are delinquent on an account, you still have rights against a debt collection agency. The Fair Debt Collection Practices Act (FDCPA) is United States statute of the Consumer Credit Protection Act.  Its purpose is to eliminate abusive collection practices by debt collection agencies.  The FDCPA creates guidelines that debt collection agencies must follow.  It also defines the rights of consumers who find themselves behind on their bills and dealing with these agencies.  I can potentially protect you from debt collection agencies: calling and disclosing information to third parties not involved with the debt such as an employer, friend, or family member, threatening garnishment of your wages, threatening legal judgment without going to court, threatening to put a lien on you or your property, the amount of phone calls placed per day including before 8 am and after 9 pm, and abusive/hostile language.  Below is a link to the FDCPA.  If you feel your rights have been violated, please call my office at 407-217-5807 or toll free at 855-582-2737 to set up a free consultation.  Don't let the economy destroy your dignity! 

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

Remember, taking care of yourself and your loved ones is what is most important in life. I care about you and your future! ~ Katie

Do you have a simple Will package?

Due to recent events that have happened in my life, I feel it necessary to advise anyone reading of the importance of a Will.  People often do not have documents in place to guide their loved ones in a time of tragedy making the awful occurrence even more stressful.  A simple Will is a document that allows you to direct to whom your property will go, direct who will be in charge of your estate, and who will be nominated as guardian of your minor or disabled children, if any. A simple Will involves no estate tax provisions, little paperwork, no trusts, and no complicated specific gifting provisions which makes this type of Will not appropriate for everyone.  This Will works best for individuals with all assets well under one million dollars ($1,000,000).  A simple Will does not require a lot of paperwork and is not expensive.  My simple Will package will allow you to designate an executor, a health care agent and a durable power of attorney.  An executor is responsible for gathering your assets and distributing them according to the terms of your will.  A health care agent would be responsible to make medical decisions on your behalf including decisions regarding life support if you were unable to do so yourself.  A durable power of attorney allows someone to act on your behalf  with respect to many duties such as banking, property, insurance, etc.  Most importantly, a simple Will allows you to designate a guardian for your minor or disabled children.  These documents are CRITICAL for anyone who wants to help ease their loved ones stress in a time of extreme difficulty.  Please contact my office at 407-217-5807 to set up a free consultation to for information on our simple Will package. 

Remember, taking care of yourself and your loved ones is most important in life. I care about you and your future! ~ Katie