Divorce can be a tortuous affair, at best. However, it appears that it might just have got a whole lot worse.
Recent research suggests that more and more ex spouses are seeking retribution by taking out joint credit cards, car hire and equipment leasing after divorce. By using the name of their ex spouse they can then indulge in reckless spending or cause untold damage to equipment that has been leased. It’s kind of like the financial equivalent of taking a pair scissors to a wardrobe of clothes!
Often, only the true extent of the damage can be ascertained from your credit reference - obtained from the likes of Transunion, Experian and Equifax.
Fortunately, the law can help expunge marks on your credit score.
David Rubinger, spokesman for Equifax says “if your ex-spouse used your name and Social Security number to take out credit without your knowledge, that person has stolen your identity.” It doesn’t matter to a credit agency whether you have been the victim of credit fraud by a criminal, friend or ex spouse.
The key to reclaiming your credit history back is to report the situation immediately to the credit company and the credit referencing agencies. They will require you to fill in a full report to the police on the matter.
However, if you have a joint account that was created with your ex spouse before the divorce, then the situation is a little different
Experian spokesman Rod Griffin says. “If you have a joint account, you’re considered fully responsible for that debt,” It is still possible to file a dispute with reporting agencies who have 30 days to investigate the situation.
The common sense approach to this is to shut all joint accounts down when you divorce and be vigilant for a vengeful spouse looking to smear your credit record!
(Via USnews)
An interesting article from WRAL.com asks the question:- “How rewarding are credit cards that promise rewards?”
It’s a very good question and in my experience the answer is that some are more rewarding than others.
This is backed up by Consumer Reports who have recently sized up credit-card reward programs and found some good ones. For example Blue Cash from American Express is thought to be among the best US based cash-back cards, although it’s patently not suited to everyone..
According to WRAL.com:
“Consumer Reports urges people to be aware that card companies offering 5 percent cash back on purchases usually have restrictions. The American Express Blue Cash card, for example, offers 5 percent back only after a cardholder has spent $6,500 at supermarkets, gas stations and other locations. Likewise, the Discover Open Road card gives 5 percent back on gas and car maintenance only for the first $1,200.”
Tobie Stanger of Consumer Reports advises that:
“It’s important to know the specifics of your card and keep an eye out for any changes in terms, also everybody must size up which card is best for them.
You have to understand the terms. The credit-card companies have become very creative, and the terms can be confusing.”
Tobie Stanger goes on to say:
“If you regularly carry a balance on your credit card, don’t even bother with these cards because the finance charges will eat up any rewards. But if you pay your balance every month, they can be great”.
The story is always the same. Pay your balance off at the end of the month…
Posted by Tom Wilkins on Thu 23rd August 2007 at 06:00 AM, Filed in Credit Tips
If you’re unlucky enough to get yourself into a hole with credit card debt then don’t despair. Firstly, it’s not the end of the world although there is a price to exacted in terms of poor credit ratings and bankruptcy. Nonetheless, there is alot of help out there should you need guidance. Credit card debt counselling is one way of helping yourself.
The process should run as follows:
1. Realise you need help and approach a trained debt counsellor.
2. Thoroughly explain your situation to the counsellor.
3. The counsellor should talk through all the options available to you.
4. Solutions might include:- budgeting, debt consolidation onto lower interest rates, asset disposal and remortgaging.
5. Cut down the number of credit cards you own.
6. If you really have to use credit cards, shop around for the cheapest APR.
7. Try to pay off your balance at the end of each month.
The key point to recognise from this sort of counselling is that you have ultimately over spent and need to moderate your spending in the future. Talking to someone can help crystallise some of these objectives and encourage you to take action.
The Virgin Money Credit Card has to be one of our favourite reviewed cards in recent weeks.
The opportunity to save an absolute fortune is apparent when you see:
0% p.a. on balance transfers for 15 months (2.98% handling fee applies)
0% p.a. on card purchases for 3 months
It’s a no brainer really when you might be paying 15% - 20% APR on your balance elsewhere. 15 months 0% even with 2.98% handling fee really is quite an exceptional deal.
Other great features include:
Read more...
An interesting piece of research published by Lloyds TSB reveals that 26% of UK Internet users took a “these things happen” attitude to online fraud.
The study also looked at some fascinating demographic differences:
• Just 15 per cent of people aged 18-25 said they felt ‘very well informed’ about appropriate ways to avoid becoming a victim of online banking fraud. This compares to 22 per cent of 35-50 year olds and 29 per cent of those over 65.
• Gender was another major discriminator - 26 per cent of men claimed to be well informed, whereas just 14 per cent of women expressed confidence.
• Some 39 per cent were blithe because they knew their bank would reimburse them.
Ian Larkin, managing director of consumer banking at Lloyds TSB, said:
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