Client Newsletters at GreenPath Debt Solutions, July 2008

GREENPATH CLIENT NEWSLETTER
JULY 2008

Marriage and Money:
Put Financial Considerations First When Love is in the Air

Summer is the season of romance and weddings and of dreaming and planning for fabulous parties, evenings under tents, beaming brides and smiling guests. Before you say "I do," though, consider this reality of marriage: you are not only joining together in love, you are joining two financial lives, as well. So, talk marriage and money early on…not just marriage for a real chance at true love's bliss.

"Like it or not, people bring financial baggage into a relationship. Perhaps it comes in the form of a poor credit rating, significant debt, or no experience managing money," said Sara Light, a GreenPath financial counselor. "Addressing money differences up front can help couples avoid a lot of trouble later."

GreenPath, recommends the following "Do's and Don'ts" for those first financial conversations:

Don't approach the subject in the heat of battle. Instead, set aside a time that is convenient and non-threatening for both parties.
Do make it a casual conversation about a serious subject, respecting the fact that each person has valid opinions and concerns.
Do probe to understand long-held financial attitudes, often present since childhood and ingrained by observing how parents addressed money issues.
Do acknowledge that one may be a saver and one a spender, understanding that there are benefits to both and agreeing to learn from each other's tendencies.
Do bring financial documents, including a recent credit report, pay stubs, bank statements, insurance policies, and investments to the table.
Do construct a joint budget that includes savings. Even though the combined income may increase, expenses may follow suit.
Do decide which person will be responsible for paying the monthly bills. It is likely that one person will be a better fit for this task than the other.
Do set aside discretionary money for each of you to use as you wish.
Do determine short-term and long-term family and individual goals.
Do talk about whether or not loaning money to family members is acceptable.
Do talk about caring - physically and financially - for your parents as they age.

Court records show that financial stress is one of the main causes of divorce and, for that reason, it should be taken very seriously. If you or anyone you know is thinking about this kind of "financial merger," GreenPath counselors are available to help with the important task of bringing two incomes, two lifestyles and two financial attitudes together. Talk to a GreenPath counselor today. Counseling is free of charge.

Tough Times Illustrated by Financial Literacy Survey

A recent survey conducted on behalf of the National Foundation for Credit Counseling and MSN Money reports:

One in ten Americans with mortgages was late or missed a mortgage payment in the 12 months prior to the survey.
One-quarter of Americans feel they do not know enough about owning a home to consider buying one.
Roughly 15 million American adults are either getting calls from collectors or considering bankruptcy.
Only 59 percent of the adults in the group known as "Generation Y" pay their bills on time every month.
Roughly 50 million Americans fail to track their spending.
A majority of the public does not have a sufficient emergency fund.
More than one-third of the adult population, or roughly 76 million adults, say they do not have any retirement savings.

"Consumer financial literacy is more important now than ever," according to the authors of the report, Princeton Survey Research Associates International. "And identifying what Americans know about their finances and the decisions they make surrounding them is a critical first step."

GreenPath counselors know that, frequently, a call to a financial counselor is the next, and best, step. Refer a friend or loved one to GreenPath if you think they may need help with any of these issues. We'll be glad to empower them with the information and support they need to overcome challenges and achieve their goals.

Foreclosure:
What Are the Other Options?

Times are troubled and "foreclosure" has become a household word and daily fear. If you are in trouble with your mortgage, there are different options available, all of which you can discuss with your lenders and/or a GreenPath counselor:

Temporary indulgence - A 30-day grace period to enable the homeowner to repay all past due amounts in one payment.
Repayment plan - An agreement between the lender and individual to bring the account current with special payment arrangements. Always ask for this in writing!
Special Forbearance - The loan servicer agrees, in writing, to reduce or suspend a homeowner's monthly payments for a specific period.
Loss Mitigation Alternatives - Loss mitigation alternatives are for dealing with long-term hardships. They include:
- Modification - A permanent change of the note's original terms in order to help the homeowner bring a defaulted loan current.
- Assumption - Allows a qualified applicant to assume both the title to the property and the mortgage obligation from the homeowner who is currently delinquent.
- Pre-foreclosure Sale - This option is from Fannie Mae only. It is a sale of the property in which the servicer and the homeowner agree to accept the proceed of the sale to satisfy the defaulted mortgage even though this may be less than the amount owed on the home to avoid foreclosing on the property. All other options must be considered prior to this being offered.
- Deed in Lieu - This Fannie Mae option is considered the last resort. It is a workout option in which a homeowner voluntarily conveys clear property title to the lender in exchange for a discharge of the debt.

Disputing a Credit Card Charge

It happens to everyone at some time. You review your credit card statement to find a charge that just shouldn't be there. Knowing your rights and responsibilities along with the credit card company's responsibilities will help when it happens to you:

Notify your lender as soon as possible. Typically the lender must be notified of the dispute in writing within 60 days of the statement, but a prompt phone call to customer service will get things moving quickly. Your card company will usually respond to your verbal complaint by sending you a form to fill out and return. Do it promptly, clearly indicating the reason for the dispute.
Don't miss a payment, but don't pay for the charge. If you notify your lender in writing within 60 days of the statement, you're free to avoid paying the charge while you wait for the dispute to be resolved, and you can continue to use your card freely.
Expect a response within 30 days, a resolution within 90 days. Credit card companies have specific legal responsibilities. They must respond within 30 days and resolve the problem within 90 days. If these requirements are not met, the card company cannot legally collect the disputed amount or any related finance charges.
Don't worry. With the exception of the disputed charge, if your payments are up-to-date and all of your other responsibilities to this creditor are being met, your credit report is safe. Credit card companies cannot file a negative credit report about you while the problem is under dispute.

Comment? Suggestions?
Write to the editor at editor@greenpath.com