Personal Finance Archives - Page 2 of 4 - Rubin & Associates

Your Credit Score: What the Number Really Means (and What It Doesn’t)

Everyone knows that their credit score is important – but most Americans don’t understand how the scores are assessed or affected by their actions. Ideally, you want a credit score in the 700-800 range, but what does that really mean – and how do you get there?

Your credit score is calculated by one of the credit reporting agencies – EquiFax, Experian, and TransUnion. These agencies assign your credit score based on current and historical factors, and the score is an assessment of how likely it is that you’ll repay any debts that you accrue. The majority of the score is related to your past payment history and your current level of debt.

Lenders use your credit score to determine how risky it would be to lend you money. With higher credit scores, your loan terms and interest rates will be much better. If you have a lower score, you’ll be assigned a higher interest rate, since the risk is greater for the lender. If your score is low enough, you may not even be approved for the loan or credit card. (more…)

By Mark Rubin|2023-06-01T09:51:08-05:00May 25th, 2023|Bankruptcy, Bankruptcy Myths, Financial, Personal Finance|

US Credit Card Debt Hits All-Time High – What Does That Mean For You?

Credit card debt in the United States hit a record high at the end of 2022, topping out at almost $1 trillion for the first time ever. During the last quarter of the year, delinquencies were growing at a faster and faster rate. The Federal Reserve Bank of New York released data that showed overall balances growing by $61 billion over the last three months of 2022 – with a grand total of $986 billion for Q4. This was the largest increase over a single quarter since the bank started tracking changes in 1999. (more…)

By Mark Rubin|2023-12-01T14:54:35-06:00March 20th, 2023|Bankruptcy, Debt, Financial, Personal Finance|

Struggling with debt? Here’s how to avoid bankruptcy

Debt is pretty much a fact of life for most Americans, especially in today’s post-COVID landscape. Most families do not teach their children how to responsibly manage money, which leads to problems down the road. The majority of today’s workforce has learned money management through trial and lots of error.

It is far too easy to get overextended on your finances, and most people do not realize that they are in trouble until it’s almost too late. When you are already stretching your finances to the limit, any unexpected bump can send you down the road to bankruptcy. (more…)

By Mark Rubin|2023-03-20T14:42:15-05:00September 29th, 2022|Bankruptcy, Debt, Personal Finance|

6 Tips For Avoiding Bankruptcy

The proliferation of credit cards and the “gotta have it now” American lifestyle have lead to a problem: for many Americans, living with debt is par for the course. The changes in America’s financial landscape due to COVID and resulting lockdowns have only made things worse. In many cases, debt spirals out of control until filing for bankruptcy appears to be the only way out.

Most of our clients are regular, hard-working DFW-area residents who simply hit an unexpected bump in the road. Whether it was the loss of a job, reduction in wages, or an accident, a single speed bump on the road of life can send you in a completely different direction.

Once you start living on credit and spending more than you can afford to pay off, the debt multiplies quickly until it seems like there’s no escape. (more…)

By Mark Rubin|2021-09-26T14:26:16-05:00September 26th, 2021|Bankruptcy, Debt, Personal Finance|

Should I File For Bankruptcy?
Should I File For Bankruptcy?

Bankruptcy, Personal Finance, Texas Bankruptcy

Should I File For Bankruptcy?

Filing for bankruptcy is a huge decision, and usually it has to be made under pretty extreme stress. Your circumstances are unique – so the best way to know if you should file is to call us at 214-760-7777 for a free consultation. The pandemic and ensuing lockdowns have made the situation even more stressful for many DFW area residents. This post will help answer a few high level questions, but it is always better to talk to an expert to get answers about your specific situation.

In general, these are a few of the most important questions to consider before filing for bankruptcy:

Can you pay back your debts outside of bankruptcy?
Are creditors suing you to collect their debts?
Are you facing foreclosure or repossession of your property?
How much property do you own?

Can you pay back your debts outside of bankruptcy?

Before you decide to file for bankruptcy, think about the types of debt you are trying to eliminate – and consider whether you can pay off those debts outside of bankruptcy. For example, if your main struggle is credit card debt, determine whether you can really afford to pay it off. If you make enough money to pay back your credit cards, you could consider consolidation, where you combine them into a single loan or settle your debt with the credit card company. (more…)

By Mark Rubin|2021-05-25T16:27:55-05:00May 25th, 2021|Bankruptcy, Personal Finance, Texas Bankruptcy|

6 Tips to Avoid Holiday Debt
6 Tips to Avoid Holiday Debt

Bankruptcy, Personal Finance

6 Tips to Avoid Holiday Debt

The holiday season is upon us again, with Black Friday and Cyber Monday just a few weeks away. The holiday season, and Black Friday in particular, are designed to get Americans to spend as much money as possible. This year, the COVID lockdowns will change the way people shop for the holidays. The doorbuster shopping events won’t happen this year – everyone will be shopping from home.

Shopping online can be more dangerous for your debt situation, since you’re not physically at the store and paying attention to the prices of the items you’re buying. Plus, credit cards give you the illusion that you can spend more money than you currently have, so many Americans fall deeper into debt during the holiday spending season. Making matters worse, gifts bought on credit cards end up costing far more than if you paid cash, once you factor in interest rates and finance charges. There’s also the fact that if you max out your credit limit, your credit score will drop.

Once the holiday season is over, the warm fuzzies disappear, and you’re left with even more debt. This year, we thought we’d share a few holiday spending tips to help you avoid over-spending, and hopefully help you avoid any more debt. Once you realize that Black Friday is specifically designed to get you to spend more money than you planned on spending, it’s easier to avoid the holiday credit card blowout.

(more…)

By Mark Rubin|2020-10-28T16:53:01-05:00October 28th, 2020|Bankruptcy, Personal Finance|

Bankruptcy and Divorce – What You Need To Know
Bankruptcy and Divorce – What You Need To Know

Bankruptcy, Personal Finance

Bankruptcy and Divorce – What You Need To Know

Many times, financial difficulty leads to stress in a marriage. In cases where the financial stress leads to divorce, the issues often lead to bankruptcy filings.

The question that we hear the most often from clients regarding divorce is “What should we do first – the divorce or the bankruptcy?”

There’s actually no easy answer for that question. Every situation is unique, so if you’re asking the same question, you should consult with an experienced bankruptcy attorney. Your attorney will be able to look at all the factors and suggest the route that will work best for you.

In general, if certain conditions are present, filing for joint bankruptcy before the divorce will be the fastest, most cost-effective option:

Both spouses know that they’re going to file bankruptcy
There are few, if any, assets that would be exempt under bankruptcy laws, so not much will be divided in the divorce
The emotional situation isn’t so hostile that the spouses wouldn’t cooperate in a bankruptcy proceeding

If one spouse won’t agree to joint bankruptcy

If your spouse won’t agree to a joint bankruptcy, you can still file bankruptcy on your own. When your debt is discharged, the creditors would then start collection efforts for the entire debt against your spouse (since the debt is the responsibility of both spouses). (more…)

By Mark Rubin|2022-06-01T11:17:29-05:00September 24th, 2020|Bankruptcy, Personal Finance|

How To Pay Your Bills On Time
How To Pay Your Bills On Time

Money Management, Personal Finance

How To Pay Your Bills On Time

Sometimes the simplest things in life can be the hardest to do. The concept of paying an invoice on time is fairly simple, but with life throwing you unexpected curve balls, getting a check in the mail or making a payment on time is sometimes the last thing on your mind. Especially during the huge unknown of COVID, it’s important to stay on top of your bills so you don’t get behind.

Even though paying bills is a mundane task, doing so on time results in several positive effects:

You avoid late fees. You don’t have to part with more money than you should.
You keep your lights on. If you don’t pay your bills, the companies will eventually cut off their service and you could be left in the dark.
You keep your credit score in good standing.
You get peace of mind. Save yourself from worrying about what will happen if you don’t pay your bills on time.

If you’d like to achieve these results, here are a few tips to help you get on schedule with your bill pay system.

(more…)

By Mark Rubin|2020-08-28T10:16:30-05:00August 28th, 2020|Money Management, Personal Finance|

How are credit scores computed?

Credit, by definition, is your ability to borrow money. Information that is included on your credit report could sway a potential lender one way or another in deciding whether to extend credit to you.

There are 3 major credit reporting bureaus:
Equifax
1-888-548-7878
www.equifax.com

Experian
1-888-397-3742
www.experian.com

TransUnion
1-800-916-8800
www.transunion.com

Under Federal law, you are entitled to a copy of a free credit report from each credit bureau each year. The credit bureaus have established a website in which to obtain a free copy of your credit report at www.annualcreditreport.com.

A credit report is more than just a list of the lenders and a person’s payment history. Credit reports contain information that can be used to help lenders determine whether to extend credit to you.

Here is a list of some of the things a credit report may list:

Anywhere you have applied for credit
Your name, Social Security Number, and your spouse’s name
Your current and previous addresses, name and address of your employer, as well as your income level
Information regarding lawsuits, foreclosures, repossessions, and whether you have filed for bankruptcy

Why are all these pieces of information listed on your credit report? Companies want to know whether you can be counted on to pay back your debts. Not only do lenders look at your credit report, but insurance companies look for risk factors on it, employers can use it to screen applicants, and landlords can use it to screen tenants to determine if they are likely to pay the rent on time.

Lenders use all of the information on your report to derive a credit score on you. A credit score is a number used to rate your credit worthiness. There are a number of different scoring systems. One scoring system is known as the Fair Isaac Corporation (FICO) Credit Score. This score ranges between 300 and 850. According to FICO, 40% of the population score at 690 or lower, while 40% score 745 or higher, with just 20% above 780.

Lenders want to know whether a borrower will repay a debt once a loan is extended. Then, the lender can use the score to determine how much to lend you, and what interest rate to charge you. Lenders assign points to the various aspects of your credit report.

Five factors are weighed most heavily when making this calculation:

Debt to income ratio. This is the proportion of how much total debt you have relative to your income level. This is the single largest factor that creditors consider in determining whether or not to extend a loan or other credit to you. Even if you have no balance on a credit card, your credit limit is still added to the debt side of your debt-to-income ratio.
Payment history. This factor considers whether you have paid your debts on time, including mortgages, car notes, credit cards, store accounts and loans.
Length of credit history. Lenders look to see how long you have paid on your debts. Good past payment history can help sway a lender to loan you money if you’ve had recent issues that could negatively affect your ability to get the credit.
Recent credit or applications for credit. If a lender sees that they are the tenth place this month that you are trying to borrow from, it could send up red flags.
The type of credit for which you are applying. Lenders that will retain a security interest in collateral, such as a car or mortgage company, may be more willing to lend money to more ‘at risk’ borrowers when the lender knows that they can always take back the collateral in the event of default on payments.

Other factors that lenders look at to determine who is a good credit risk are:

Education level. The higher the better.
Length of time at current residence. If you move around a lot, you lose points, but if you relocate for a better job and show your income is higher, that helps get you points.
Length of time at your current job. The longer you have been at your job, the better risk you appear to be.
Homeowner v. Renter. Homeowners are considered better credit risks than renters.

Creditors like stability. If you can show you are a stable, reliable person who has the ability to repay your debts, you will be a much better credit risk to a potential lender.

Everyone should always review his or her credit report periodically. Errors can be and are made. Just a few points can make or break your ability to acquire new credit. Therefore, it’s crucial to have an accurate credit report. Over the last few years, identity theft has become a bigger and bigger problem as well. An uncorrected error can cause years of stress and frustration. The credit reporting bureaus must correct any inaccurate information on your credit report, but you need to bring the inaccurate information to their attention. Once corrected, the bureau is supposed to send you a free copy of the credit report showing that the inaccuracy was corrected.

By Mark Rubin|2019-01-28T14:17:07-06:00January 28th, 2019|Personal Finance|

6 Tips to Keep Holiday Spending Under Control

It’s that time of year… Holiday shopping is stressful for everyone, but it’s especially tough for families that are already struggling with overwhelming debt. You don’t have to spend a fortune to have a happy holiday season! Follow these tips and you’ll reign in the spending and skip the spending stress.

1. Make your own list

Santa makes a list and checks it twice – you should too. It’s easy to get caught up in the gift-buying frenzy, but you don’t have to give gifts to everyone! Make a list of everyone you’re buying gifts for – aim for less than 6 people outside of your immediate family. For everyone else, bake cookies – it’s a more personal gift and lets you still acknowledge friends without breaking the bank. (more…)

By Mark Rubin|2018-11-30T15:21:08-06:00November 30th, 2018|Personal Finance|