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Msg: 685310
Rydeswitheagles Subject: Re: Credit question?
Author: RydeswitheaglesProfileContactLogbookNote
Date: Mar 20, 2012 11:42 AM
P-23F-1039M-92
Reply to: Msg 685269 by Brandy
Speaking from personal experience, I just went through debt reduction last year and found out when doing my taxes that all the debt forgiven by the credit card companies is counted as INCOME. Just something to think about (basically it means I OWE about $5000 in taxes this year when I usually get back about $2000). And, yes, the credit card companies mostly settled for half of what was owed, but my credit went down the drain. Since my intention was to totally get rid of my credit cards, I'm okay with having no credit. So I guess it all depends on what your friend is trying to do. Credit card companies are willing to work with people as long as they are up front and honest about what is happening. Good luck to your friend.
Msg: 685323
Sea Maid Subject: Re: Credit question?
Author: Sea MaidProfileContactLogbookNote
Date: Mar 20, 2012 12:48 PM
P-52F-268M-845Inactive
Reply to: Msg 685310 by Rydeswitheagles
Wow! thanks for sharing that! who would have thought that you would have to pay taxes on money you never saw!
Msg: 685327
Subject: Re: Credit question?
Author: trilla_marionProfileContactLogbookNote
Date: Mar 20, 2012 12:58 PM
P-18F-88M-774
Reply to: Msg 685269 by Brandy
I second Ryan's suggestion of asking the companies to lower the interest rate. He may have to bug them a bit about it though. My best friend went through this years ago when she was put on bed rest during her pregnancy. She's a single mom so she was without income. Since she had been using her savings to make her card payments they didn't believe her when she called to ask for them to lower her interest rate. It wasn't until she had to stop making payments all together that they called her willing to make a deal. Of course you said your friend has already stopped making payments so most likely they will be willing to lower his interest for a specific amount of time. Without being slammed by interest hopefully he'll be able to get a little ahead. Good luck to your friend!
Msg: 685404
Green Tortuga Subject: Re: Credit question?
Author: Green TortugaProfileContactLogbookNote
Date: Mar 20, 2012 5:48 PM
P-261F-1876M-21375Premium
Reply to: Msg 685310 by Rydeswitheagles
Speaking from personal experience, I just went through debt reduction last year and found out when doing my taxes that all the debt forgiven by the credit card companies is counted as INCOME.

That may be true, but I'd still count it as the lesser of two evils. =) Let's say that you can get $10,000 written off of your debt. You can earn $10,000 to pay it off, but you'd still have to pay taxes on that income, so really you might need to earn $13,000 to have enough to pay off the 10K after the tax man takes his bite.

Or, if you can get a credit card company to write off the 10K, you'd still have to come up with the $3000 to pay the taxes on that "income." Overall, though, that only puts you three grand in the hole. It's still a heck of an improvement over having to earn $13,000 to pay it off! I'd take a deal like that in a heartbeat!

And logically, whether you "work" to earn $13,000 and pay taxes, or you have to pay taxes on $10,000 that's written off, it basically amounts to the same thing. In fact, I'm rather glad the government taxes such writeoffs as "income." The person who actually worked to earn $13,000 had to work hard for that money. The person who gets a $10,000 write-off doesn't have to work at all for that "free" income. It seems more fair to tax money that doesn't actually require work to acquire rather than to tax income that requires a lot of blood, sweat, and tears. *shrug* But that's a totally different topic and I'm sure you'll find plenty of people who disagree with me. =) Which is okay--I'm just trying to explain why it actually makes sense to tax that write-off as income. It basically IS income--in the sense that the credit card company gave you ten grand to pay off your debt with. Just because a credit card company gives you ten grand doesn't mean it's not income.

But I wasn't talking about debt reduction (though if someone can get it, by all means, grab it!)--I was talking about reducing the interest rates. Getting your interest rates reduced does not count as income, so you won't be taxed for that.

-- Ryan
Msg: 689889
Zen Hunter Subject: Re: Credit question?
Author: Zen HunterProfileContactLogbookNote
Date: Apr 5, 2012 8:28 PM
P-50F-781M-604
Reply to: Msg 685269 by Brandy
I had some issues a few years back that I was able to clear up with the help of conumer credit counseling service I highly recomend at least calling this agency. They are not a fly by night group and not scammers. They negotiate with creditors. You pay ccc, they oay the creditors. One oayment easy to manage and they also offer advice on oersonal budgeting.
Zh
Msg: 689919
Erela Subject: Re: Credit question?
Author: ErelaProfileContactLogbookNote
Date: Apr 5, 2012 11:28 PM
F-54M-228Inactive
Reply to: Msg 685323 by Sea Maid
Actually you did see the money at some point. After all, this is the reason you owe money to your credit company; you used their money to buy the items you purchased. If they let you get away without paying the full amount borrowed....yes, that is income; income that you have already spent....
Msg: 689920
Erela Subject: Re: Credit question?
Author: ErelaProfileContactLogbookNote
Date: Apr 5, 2012 11:33 PM
F-54M-228Inactive
Reply to: Msg 689919 by Erela
Sorry Sea Maid, I just realized how my last comment sounded. I meant you in the sense of the borrower who borrowed the money. Not you, specifically, since you are not the one in this situation....
Msg: 712748
Subject: Re: C'mon....help a teacher out :)
Author: speedsquareProfileContactLogbookNote
Date: Jul 5, 2012 4:24 PM
P-64F-1837M-4703Premium
Reply to: Msg 712738 by tchrlady
SMELLS LIKE SPAM. Don't click any links.
Msg: 712756
55 Steps Subject: Re: C'mon....help a teacher out :)
Author: 55 StepsProfileContactLogbookNote
Date: Jul 5, 2012 5:36 PM
P-99F-114M-1391Inactive
Reply to: Msg 712738 by tchrlady
Looks to me like a ponzi scheme.
Msg: 712760
Subject: Re: C'mon....help a teacher out :)
Author: speedsquareProfileContactLogbookNote
Date: Jul 5, 2012 5:47 PM
P-64F-1837M-4703Premium
Reply to: Msg 712756 by 55 Steps
That's actually more accurate. I googled it and found a YouTube video with a guy explaining it and inviting us to join through him!
Msg: 712763
55 Steps Subject: Re: C'mon....help a teacher out :)
Author: 55 StepsProfileContactLogbookNote
Date: Jul 5, 2012 5:57 PM
P-99F-114M-1391Inactive
Reply to: Msg 712760 by speedsquare
This sort of thing is of questionable legality -- at best it is legal by a loophole, depending on what it says you are buying.
Msg: 712767
wassamatta u Subject: Re: C'mon....help a teacher out :)
Author: wassamatta uProfileContactLogbookNote
Date: Jul 5, 2012 6:58 PM
P-39F-290M-7162Premium
Reply to: Msg 712763 by 55 Steps
Definitely a scam, just barely this side of legal.
http://www.gooeasy.info/2012/01/07/empower-network-scam/

It's interesting though.. these guys are smart. If you do a google search for "empower network scam", the first few page or so is frontloaded with at-first-seemingly "independent" testimonials that say after careful research, it ISN'T a scam... then go on and try to get you to sign up. But click back a page or two on google and suddenly the story starts to change...
Msg: 712815
Green Tortuga Subject: Re: C'mon....help a teacher out :)
Author: Green TortugaProfileContactLogbookNote
Date: Jul 6, 2012 2:16 AM
P-261F-1876M-21375Premium
Reply to: Msg 712767 by wassamatta u
Yes, definitely a pyramid scheme. Hey, moderators, let's delete posts like that in the future. Not that pyramid schemes are commonly posted on AQ, but I see no reason why people should even be able to click to links that would get them involved in one.

-- Ryan
Msg: 799133
Subject: Money Advice
Author: Hosmer'sProfileContactLogbookNote
Date: Aug 21, 2013 12:53 PM
P-32F-123M-1043Inactive
Hey all. Well this has been one heck of a year. Basically we screwed ourselves when we were younger and got in credit card debt. So we've been ok the past couple of years, even managed to pay some off and buy a house. We usually have a little bit left over each month. Well, last month I miscalculated something and we've been treading water ever since trying to get back on track. Just as I think we'll be ok in the next few paychecks, my husband's hours is going to be cut back drastically for at least two months. He's our only income. I need to figure out something. I could get a job at walmart or babysitting, but it'd still be a few weeks before i'd see any income. So I'm wondering if those debt consolidating things work? I don't want them to lower my debt, just lower the payments until we get back on our feet. Any ideas?
Msg: 799193
Captain Slick Kitty Subject: Re: Money Advice
Author: Captain Slick KittyProfileContactLogbookNote
Date: Aug 21, 2013 5:50 PM
P-372F-539M-2019Premium
Reply to: Msg 799133 by Hosmer's
Credit card debit . . . the worst.

Anyways, I work with Green Path. They don't really talk to your creditors to reduce what you owe. What they do is they talk to the creditors and get your credit cards into a their program and explain that you are in their program and they get your monthly charges reduced to sometimes nothing.

They also talk to them about a payment schedule, sometimes even reducing your monthly bill.

I would talk to them. It could not hurt. Plus they don't charge a large up front fee like a lot of other "consolidators" do. I do pay them like 35 buck a month but I send them one money order and they pay everyone from that one money order. One stamp for me.

csk
Msg: 799557
Subject: Re: Money Advice
Author: Hosmer'sProfileContactLogbookNote
Date: Aug 22, 2013 7:14 PM
P-32F-123M-1043Inactive
Reply to: Msg 799193 by Captain Slick Kitty
Thank you. It looks like a good company. I'm going to see if I can talk to the creditors first. I appreciate the tip! :)
Msg: 924075
Subject: Checks
Author: CrazyolisProfileContactLogbookNote
Date: Apr 10, 2016 6:33 PM
P-46F-235M-1874
Hi
Question....does anyone use checks anymore? My son is 16, he just got his bank account with a debit card in his own name. I am figuring the easiest way to start building a credit history, but one that is not going to allow him to start with a credit card allowing him to build up debt.

My thought was a gas card. He just got a car, which he paid half for. It was earlier than expected, we knew he would need one for next school year, but a great deal came up and we had to jump on it.

So I am thinking he cant get in too much trouble with a gas card. He buys gas and maybe a pack of gum in the store? Its not like he can use it at Brookstone and buy a massage chair!

So my question is....I can link a speedpass to his debit card, which doesn't really count as credit since it takes it right out of his bank account. Or I can get a credit card issued in his name. Getting him a monthly bill. Then he has to pay the bill off each month. If this car has as good of gas mileage as everyone says, he shouldn't go over maybe $30 a month.

So my next question is.....should we order paper checks for him to actually write checks to pay the bill or just learn online bill paying. this is how I pay most of my bills. I write very few checks in a month. My guess is the young adults of today are not going to be using checks at all. They will be able to do everything electronically.

So any thoughts? I am trying to start teaching him to be a financially responsible young adult.

thanks!
Msg: 924081
JampersandJ Subject: Re: Checks
Author: JampersandJProfileContactLogbookNote
Date: Apr 10, 2016 7:12 PM
P-70F-813M-910Premium
Reply to: Msg 924075 by Crazyolis
It's good to know how to write a check - for those occasional times when you don't want to give out your credit card info, or it's just plain easier ~ $10 for Girl Scout cookies, for example.

We just paid our taxes - to e-file, they wanted to charge us $30. Heck no! We wrote a check - not giving the government one more cent than necessary!

I remember that when our kids were in high school, we wrote all sorts of checks for school photos, grad night, field trips, year books, fees for extra curricular activities, and so on. You can have your son practice writing checks for stuff like that.
Msg: 924082
Green Tortuga Subject: Re: Checks
Author: Green TortugaProfileContactLogbookNote
Date: Apr 10, 2016 7:20 PM
P-261F-1876M-21375Premium
Reply to: Msg 924075 by Crazyolis
I'm not sure giving him checks will help much one way or another. It's not like writing a check is rocket science or anything. Once someone has done it once, they've pretty much mastered the art of check writing! I've written exactly two per year for I don't know how long--and only then because I get a 5% discount from my dentist rather than putting it on a card. =)

As for building credit.... I don't think he can get a credit card with his name on it at all until he turns 18. Good credit is important, but I'll be darned if I know how someone under 18 can really build a real credit history.

Online bill paying is certainly here to stay, though, which might be the way to go. And debit cards to access money in his account could certainly be useful. Unless he's planning to buy a house when he turns 18, though, I wouldn't worry much about building a credit history for the time being. =)

-- Ryan
Msg: 924089
scouttrekkie Subject: Re: Checks
Author: scouttrekkieProfileContactLogbookNote
Date: Apr 10, 2016 8:16 PM
P-480F-3879M-2159Premium
Reply to: Msg 924082 by Green Tortuga
Just wanted to share this story about learning on how to write a check. These days young adults are clueless as to even knowing how to write the words for a specific dollar amount. Example for the amount $123,456.00 they have a difficult time translating that amount into words for writing a check. Probably one of the main reasons no one wants to write checks. There's no spell check.
Msg: 924095
Green Tortuga Subject: Re: Checks
Author: Green TortugaProfileContactLogbookNote
Date: Apr 10, 2016 9:38 PM
P-261F-1876M-21375Premium
Reply to: Msg 924089 by scouttrekkie
Example for the amount $123,456.00 they have a difficult time translating that amount into words for writing a check.

I have to admit... I've never had that problem, but I sure wish I did! =)

-- Ryan
Msg: 924104
Subject: Re: Checks
Author: SpringChickProfileContactLogbookNote
Date: Apr 11, 2016 3:24 AM
P-278F-608M-521Premium
Reply to: Msg 924075 by Crazyolis
I would have to agree with Ryan... there isn't a lot of benefit in writing checks more than a few times (once you know how). I think it is a far better strategy to teach him how to be responsible with credit and how to be safe with his money transactions online.

I think it is true that you have to be 18 to get a credit card, but maybe you could start with a secured card in your name that is his responsibility. As long as it is secured, he is limited to spending the amount actually in the account. This way he can get familiar with the practice of paying the entire balance each month. Then once he is old enough to get one in his name, he will already have some experience with it.

As for online transactions, even though many people shop online and use online bill pay, most could use a good class in online money safety. This is where I see the future going -- the continued use of online money transactions, but along with that comes the continued occurrence of phishing schemes and other crooks trying to steal your identity.

SpringChick
Msg: 924105
Subject: Re: Checks
Author: CrazyolisProfileContactLogbookNote
Date: Apr 11, 2016 4:06 AM
P-46F-235M-1874
Reply to: Msg 924104 by SpringChick
I was wondering if he could even get a card in his name until he was 18? I do have to look into that. My second thought was to get a new gas card in his name and make his responsible for his portion. I just wanted him to have the experience of getting the bill each month and paying it off.

And I do admit, if I have to write a big check for something, I have to think a minute on how to write out the dollar amount!

True about needing checks for somethings....cookies...I told him he needs to keep at least some cash on him, he shouldn't run his debit card everytime he runs through McDonalds. But then I say really....why...at least when running his debit card, he has a record of what he spent in a day. If he leaves the house with 50 bucks in cash and comes home with $3 he will have no idea where he spent it all.

Oh the things you must think about when trying to teach financial responsibility!
Msg: 924107
Subject: Re: Checks
Author: NatureMamaB6ProfileContactLogbookNote
Date: Apr 11, 2016 4:17 AM
P-193F-472M-171
Reply to: Msg 924075 by Crazyolis
My Girl Scout troop has had to learn how to write checks as part of their badge work. My granddaughter has a checking account to pay her dues each week. Her type of checking account will entitle her to a bonus of $200.00 for opening the account at a certain time that the bank offered it.The other girls chose not to do it. Their loss! Of course, the bank had her go through the paperwork, etc. just like we all have done when we opened our checking accounts. She learned that it is a process to do any banking.

I write checks and do not pay any bills online. I have had to many problems with computers and don't trust them paying bills that way. I have one credit card to just order items online so in case of any problems, I can easily track it.

Good luck in whatever you choose to do.
Msg: 924109
RDHG Subject: Re: Checks
Author: RDHGProfileContactLogbookNote
Date: Apr 11, 2016 4:31 AM
P-407F-1327M-2126
Reply to: Msg 924105 by Crazyolis
Everything else aside, what would it hurt to get him some checks? You can get checks inexpensively through Current or other companies like that. Then, if there was ever an occasion to use a check, he would have them. It is not like they will go bad. If that one box lasts him from years, that it fine. :-)
Msg: 924122
Trekkie Gal Subject: Re: Checks
Author: Trekkie GalProfileContactLogbookNote
Date: Apr 11, 2016 7:06 AM
P-2F-222M-9084Premium
Reply to: Msg 924075 by Crazyolis
I write one check a month for my rent. Even though most bills are paid online, until we go to a completely paperless system, it's still good to know how to write a check.

TG
Msg: 924124
Green Tortuga Subject: Re: Checks
Author: Green TortugaProfileContactLogbookNote
Date: Apr 11, 2016 7:50 AM
P-261F-1876M-21375Premium
Reply to: Msg 924109 by RDHG
It is not like they will go bad. If that one box lasts him from years, that it fine.

Actually.... I had a checkbook where the date is partially already filled in: ________ 19__.

I scribbled out the "19" and write the full year the rare times I've used it. I might still have that checkbook somewhere, but I think it's in storage. I can't remember the last time I've seen it, but I know I never threw it away and I still have the account it was attached to. =) I think I got the checkbook in 1995 or something. I'll probably still have it until I die. =)

-- Ryan
Msg: 924125
Fiddleheads Subject: Re: Checks
Author: FiddleheadsProfileContactLogbookNote
Date: Apr 11, 2016 7:54 AM
P-313F-1258M-1391Premium
Reply to: Msg 924075 by Crazyolis
I write checks (piano lessons, skating coach, Scholastic book orders) all the time, but I'm not sure a sixteen year old would need to. And checks are so expensive to order!

Your teaching him to be financially responsible is far more important than whether it's checks, credit card, or gas card. He'll learn from your example, and maybe mess up a few times as he finds his way. Better when the stakes are low.
Msg: 924167
RDHG Subject: Re: Checks
Author: RDHGProfileContactLogbookNote
Date: Apr 11, 2016 1:01 PM
P-407F-1327M-2126
Reply to: Msg 924124 by Green Tortuga
Haha. If her teenage son is still around writing checks by the time the next century rolls over, then more power to that old man!
Msg: 924312
Subject: Re: Checks
Author: TEAMVProfileContactLogbookNote
Date: Apr 12, 2016 10:23 PM
P-40F-93M-81Inactive
Reply to: Msg 924075 by Crazyolis
Teach him responsible financial behavior. I would definitely start my kids with using plain simple green cash. Let them feel and see the cash. No cards, no checks, no speed pass! All cash. It seems that young kids don't fully grasp where the cash is coming from and they believe it is endless. Teach him how to earn that green stuff, how to save it in his personal account, how to create and stick to a budget, and how to withdraw the money when he needs it. Teach him the benefits of compound interest and the downfall of getting into debt. Being able to get in debt to "build credit" can come later. Good Luck!
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