Marriage, Divorce & Your Credit

Before you say "I do" I recommend full disclosure!

By “full disclosure,” I refer to the financial realm and not just talking about where you're going to live, whether or how many kids to have or where to go on your honeymoon. At some point you've got to talk about money both in terms of where you're going and where you've been. Your credit history and scores need to be a part of such a conversation.

So many marriages are begun without this essential, logical, and rational step and it leads to so many arguments and strife later. If anything is out of order financially, the time to fix it is BEFORE you get married! There are some things you don't want to bring into a new relationship.

And then there's the unfortunate matter of divorce...

Statistics show that at least 50 percent of first marriages end in divorce as do many of subsequent marriages. Most people don't plan on it, but it happens. It’s important to know how to recover financially should it ever happen. Divorce can be devastating and most attorneys don't know how to help you with that part. The attorney is under no obligation to protect you from the financial pitfalls. Most couldn't anyway.

You've got to reach out to a financial professional both before and after marriage. No matter the situation, it often helps to have another person looking from the outside. The same thing applies to your credit and credit history. A lot of what it takes to rebuild your rating is counter- intuitive. This means you THINK you should do it, but you shouldn't.

This is where I can help. It is so crucial and failing to take action can create a direct threat to your financial security and your credit rating.

mark@risingpointsolutions.com

Will Paying My Bills Improve My Credit?

Dear Mark,

I am getting a lot of pressure and of course they are lying about taking me to court -- all of this coming from a five year old credit card with a major bank. Of course, by now they have added a ton of other charges for late fees, attorney fees and who knows what else! They are offering me a settlement where I would pay $4000 of the $6000 they are saying I owe them. It should never have been more than $2000 in my mind!

Can you ever wheel and deal with these people--say like I offer $1000?

Sincerely,

Seeking Credit Answers


Outstanding question!

Here are my initial thoughts. Yes, you should pay old debts! I believe that if we make a debt, we should pay a debt. Still, there are a couple of other things to consider regarding your credit and overall financial health. First, paying off old debts on demand in this fashion won't necessarily improve your credit. In fact, though there is some relation to paying off debts and improving your credit, they are not as related as you might normally think. That takes a different kind of work. When it comes to improving your credit, there is an order and priority you will want to pay attention to.

Now, to the matter of negotiating settlements, ABSOLUTELY take advantage of settling at a lower amount any time you can. There is nothing unethical or unbusinesslike about asking your creditors to reduce a portion of your debt or otherwise make payment arrangements for you. My experience is that many companies will work with you and accept anywhere from 50%, 40% or even as low as 30% of what you owe. It never hurts to ask and anything you save can be put towards other bills and debts where they are less forgiving.

I' would be glad to consult with you about what debts to consider paying first. Some things may never come of your credit report, however, unless your creditors are legally forced to abide by the law and report information such as payoffs accurately. For that kind of help, you will need a professional. When you're ready for a free consultation, give me a call at 832-566-2001 or e-mail mark@risingpointsolutions.com! Please join us on our Rising Point Solutions Facebook page, too!!

Honestly? I'm shocked!

I joined the Rising Point Solutions team almost two months ago now thinking it would be a great way to earn more money and help some people get into homes. Easy breezy, right? I mean, I knew the need in Houston for credit repair and thought it would fit well with what I'd been doing in hard money lending. But here's the thing. It's been nothing like I expected!

1. I thought I would be working on people with a lot of questionable situations, but the truth is many people are suffering from tons of mistakes and inaccuracies by their creditors who are either unethical or uninterested in reporting accurate information. Helping people fix/remove the stuff that shouldn't even be on their credit report does wonders!

2. A person with a 760 FICO score will pay over $200 per month LESS for a mortgage than a person with a 620 score. Really it's about $2500 per year and countless thousands over the life of a loan. It's said that most people sell their home and move about every five years. We're talking about almost the price of a car saved from just having better credit.

3. I thought it would be all about helping people purchase homes and I've been surprised to learn how many employers (and even prospective employers) are checking credit scores and histories and using them to determine whether people will get or receive jobs. I might be the last one, but I didn't expect that.

Bottom line is that a lot of people had a rough few years as the stock market and real estate market both crashed. They may have rebounded, but still have some residue of a poor stretch sticking around. I'm glad to be helping solve that problem!

If you want to put a bad credit history in your past, contact mark@risingpointsolutions.com or call me at 281-846-5720!