Your credit score affects more things than most people realize. We all know that for borrowers it has something to do with mortgage rates. Or whether or not we get that personal loan we need.

But for lenders, your score measures your financial trustworthiness. It’s based on your current credit record and credit history. It also measures level of risk lenders take by lending to you or assuming some financial obligation on your behalf. Sounds pretty reasonable, right?

Unfortunately, a single company, Fair Isaac Corporation, holds much of the control of a key component of your credit score. According to their site, their “FICO” score is used directly or as part of another company’s customized calculations by 90% of all businesses that use credit scores. A lot of power in one company’s hands.

What exactly is a Credit Score?

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Why a debt success story on a career site? Because real-life stories help put a face to “how-to” advice that can often feel undoable. And debt can weigh you down in life and career by limiting your choices. Sometimes you feel forced to take a job you don’t love. Or get turned down for one you would love because of your credit profile.

Plus, real-life stories help us feel more confident that this seemingly undoable thing can actually be done — by real live flesh and blood people, and not just on TV. And that helps make it easier for us to finally getting a handle on things … including debt!

This is the story of someone I know. I’ll call her Jennie. For Jennie debt had become a way of life. Owing $10,000 – $20,000 at any given time was not unusual for her. And for a long time, it didn’t even worry her. After all, she was making enough money to pay her bills — although her total debt number kept rising.

Jennie needed a debt success story

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A friend recently asked me some banking questions I thought were pretty basic. Part of me was surprised, but I realized that a lot of people don’t know much about banks. Mostly she wanted to know what to do with some money she saved. But she also worried about not losing any money in the process and figured banks were safe.

Most people worry about protecting their savings. You want your money to grow safely (more on FDIC insurance below), and yet many banks pay almost nothing. Meanwhile, they get to make lots of money for themselves using your money to make loans and invest in things that pay more than they pay you.

So how can you make wise investment decisions for yourself?

Banking questions & answers

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A loan officer I know asked me to discuss a topic that she deals with every day: Debt. Specifically good debt vs bad debt. And the choices people make when buying things they think they need. Here are her words:

“Debt is a super hot topic right now … so explore good debt vs bad debt. People spend $50,000 on a new car which depreciates immediately vs buying a home that long term typically appreciates and helps build wealth — crazy to me!

And let’s not forget student loans … you don’t need a college degree to make money anymore. [Read more…]

Compounding. Compounding. Compounding. Just as with location in real estate, compounding is the key to retirement money growth over time.  If you ask the best time to start saving for retirement, the answer most people will give you is “Now!” Or better yet, yesterday.

That’s because your money earns even more money the longer it sits gathering interest. Compounding (where accumulated interest also grows along with principal) is almost magical. And when the money is in a tax-deferred account, where all your interest earnings get to keep compounding … well, even better!

Retirement money growth charts

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As retirement time gets closer, you start thinking about where you might want to live. One interesting option you might hear about is the Life Plan Retirement Community, a special type of CCRC (Continuing Care Retirement Community).

But, as lovely as the pictures in the brochure may be and as tempting as the descriptions sound, there are questions you need to ask before signing the contract. And answers you definitely need to dig into further even after you get them.

What is a Life Plan Community (CCRC)?

Life Plan Retirement Communities offer you financial security and options for progressive (continuing) care if needed as you get older. They usually have cost-saving benefits built into the monthly fee (meal plans, cleaning, free medical transit, free utilities, tax advantages, etc.) plus a variety of social activities designed to keep you active and enjoying your retirement years. [Read more…]

Unless you’re independently wealthy, when you’re out of work money gets tight. And you start to think a lot about money … and where to get it. Do you borrow from a friend or family? Keep using your credit cards until they max out? Find extra work? Or do you use your IRA money.

Sometimes you need to turn to all those sources. And they all have drawbacks or, in the case of part-time work, not always easy to make happen right away. But if it reaches the point where your IRA (retirement) money is the only spare cash you can find, here are some things to think about.

Reasons NOT to use your IRA money

Since this is the advice of most money professionals, here are the main reasons to avoid dipping into your IRA funds: [Read more…]

Life seems so long when you’re young, And then one day you actually start thinking about retirement — and it’s not all that far off. How did you get there? Seems impossible. And yet there you are. Worried you haven’t done enough to prepare.

Although early on you somehow assume all this will just happen, you want to have enough money set aside so you actually can retire. Even if “retire” for you might include doing things you truly love that also earns money. And for most of us that takes some solid planning early on.

But thinking about retirement is BORING!

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A few years ago, someone I know got the shock of their life. Their monthly Social Security was suddenly over $300 less than usual. Since they often turn to me with finance questions, they were understandably upset when they called me. Turns out, their monthly Medicare cost (the premium) went WAY up.

Why did that happen? Well, the reason for this unexpected outcome seemed like a wonderful thing at the time. As a fellow blogger, they sold a website they’d owned for many years and got a windfall lump sum payment.

But while they were prepared for the hit to their income taxes, no one had ever told them [Read more…]

NOTE: I wrote this post a while back. This video from a health insurance broker I know will give you some useful updated info on deciding between Medicare Advantage vs Medigap (Supplement). Hope it helps! 

The Difference Between Medicare Advantage or Supplement

For more including why not just Medicare, continue reading…

Judy H. wrote to ask me about her Medicare coverage. She says she’s confused by all the information and choices out there. She’s not alone! She’s looking at Medicare Advantage vs Medigap (Medicare Supplement).  Or should she return to Original Medicare and pay the 20% on her own?

While I’m not a Medicare expert, I do understand some of the basics. I also did some online snooping to hopefully help guide her to finding an answer that’s right for her. Here is her question and my response. Your situation may be different, but hopefully this can help you decide too:

Decision: Medicare vs Advantage vs Medigap

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