Credit Card Debt Management

If you are among the 10 percent of holiday shoppers hitting the stores at the very last minute, keep in mind a survey done recently in the Colorado Springs area. According to that, women prefer diamond earrings above all other jewelry. Tools are still at the top of men’s gift list, while clothing is still at the top of women’s.

Of course, some will choose to defy the stereotypes. Ironically enough, I hinted at diamond earrings and got a golf putter instead. Really, it’s a selfless gift considering it will take strokes off my golf game. Whatever you settle on as you run around getting those last-minute gifts, remember to consider taking advantage of those store brand credit cards to get extra discounts on the already great prices available at the last minute. However, these usually come with higher APRs and temptation to spend more than necessary, but can bring useful perks like VIP discounts that are useful at stores you frequently visit. And remember men, with diamond earrings you can hardly go wrong.

As we near the end of 2007, it is important to look back on your past financial year. Was it better or worse than 2006? What did you do differently to make it so? Are there any opportunities for improvement in your financial behavior of 2007?

Getting a bit personal, here are a few of my personal financial goals:

Find better auto insurance. Silly? Maybe, but our car insurance is astronomically high and I know where to find better rates. I vow to quit procrastinating and check into it to find out for sure.

Change my long-distance carrier. Again, this is a small detail, but every little bit helps. At the rate I’m paying for long distance, I would have to make a lot of calls to justify it. And I don’t make that many long distance calls, not even close. TransWorld Network has e-mailed me their rates for my area: 5.9 cents a minute in the U.S. and 6.5 cents a minute to an international land line. Now that’s talking my language!

Save more and give more. Both of these have always been a battle for me, and I hope to do better with both next year. Those who have witnessed the cyclical power of giving know that giving more means getting more, whether the rewards be tangible or intangible, in the present or the future. So why is it still so hard sometimes?

Grocery shop with cash. After experimenting with this a few months ago, I witnessed the psychological effect of shopping with cash. It’s true what they say - it is absolutely more difficult to spend cash on frivolous items. This trick was a fabulous money-saver for me for about two months.

Of course there are other personal goals I have, but financial inventory is essential to your financial health. And what better time than the end of the year to take inventory of everything - spending habits, records keeping abilities, earning goals, budgeting successes and failures, etc. If you can get a grip on money, you will worry less about that area of your life and improve your psychological outlook as well.

Christmas is four days away and that seems like a good time to talk about protecting your credit in the midst of a divorce. Why? Christmas is the most expensive holiday and money is the leading cause of divorce. So it’s not the cheeriest topic, but everyone must know during and after divorce how to look out for their own credit history. Divorce is a notorious wrecking ball for a credit report, but here are a few tips to help:

Debt is not divided like assets. This may seem like a no-brainer, but The Oregon Divorce Blog says the following:

“A common myth we come across in our practice is that the court has the power to protect a client’s credit if the ex spouse doesn’t pay an obligation they were ordered to pay under a divorce decree…If you and your spouse signed a legally binding contract with a creditor, the divorce decree cannot protect you from the creditor. You both signed a binding contract with the creditor (for example: Citibank, Countrywide, American Express), and that contract survives the divorce decree and remains an obligation of both parties, no matter what the divorce decree says.”

Obtain credit reports at the beginning of your divorce case. This is a reference point for the remainder of the time you are cleaning up your joint debt.

Try to pay and close out all debts beforehand. If you cannot do so, make arrangements for you and your spouse to each make monthly payments. Follow up and ensure that this is being done. If the spouse fails to hold up their end of the bargain, pay both shares of the debt and seek reimbursement through the court system. Also try to include a clause in the final judgment stating the legal options available to either spouse if the ex fails to pay their share of the debt.

And on that note, happy holidays!