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Wed, 18 Nov 2009 19:49:52 GMT

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Wed, 18 Nov 2009 19:48:34 GMT

LeaseTrader.com Survey and How Your Ex Could Destroy Your Credit

Gina Roberts-Grey — Tue, 17 Nov 2009 15:34:13 GMT

When you're building a relationship, building joint credit feels like a natural rung on the ladder. But if the romance happens to sour, that same joint credit can become the backbone of financial devastation.

Scores of the newly divorced, separated or uncoupled who have co-signed for cars and leases or have joint plastic tucked in their wallets are left holding all -- or most of -- these financial bags post breakup. And those bags can get pretty heavy.

"That means someone may be stuck trying to make payments he or she can't afford," says Dan Danford, principal and chief executive officer at Family Investment Center, a commission-free investment management firm in St. Joseph. And that can impact your credit.

Even though few people enter a relationship with the intention of ruining their new mate's credit, many experience this unfortunate outcome of uncoupling. "Beyond not being able to pay your own bills, an ex not paying his or her share of joint accounts can be especially dangerous," says Danford. "Normally, a person knows they're not paying their own bills. But it's common for people to not know an ex hasn't paid until they're served a summons or being hounded by collection agencies." Which means months of late or missed payments have already been reported to credit bureaus and lowered your score.

"I had no idea my ex wasn't paying off the bills he agreed to take on after we split up," says Chloe Martin of Chicago, Illinois. "I found out by accident, when I tried to make an appointment at the vet's office and was told the account had been sent to collection."

According to a survey conducted by LeaseTrader.com, an overloaded budget and the potential of a shattered credit score are plaguing new singles, or those on the verge of being legally single again. The survey says the most common bag a person is likely to be left holding is housing: rent or mortgage. Car loans and leases, credit cards (major cards as well as retail (store) cards), property damage/repairs and pet responsibility round out the top five heaviest bags.

That's why experts say it's wise to check the number of financial bags each of you are -- or might be -- carrying now. Just in case your relationship hits a bump later on.

Protect your score

If you're about to be riding in the single lane, Danford says the best way to protect your credit is to communicate. "Make sure you've told everyone who needs to know that you're now [or soon to be] single and discuss what you're responsible for." Most importantly, he says you should note what you're not responsible for. "That will eliminate a lot of the confusion and potential plunging of your credit."

Other helpful tips:

Years after a split, both names could remain on a property's mortgage or deed. To thwart confusion, notify all lenders of your split and ask what formal notification is required to properly re-title the account or assets and amend the title. "Just having a divorce decree isn't enough to accomplish this," Danford cautions. "In most instances, separate steps must be taken."

Close joint accounts that have zero balances and notify all creditors -- including bank lines of credit -- that you want to block any new charges.

Formally notify all three credit bureaus (Experian, Equifax and Trans Union) of the split and division of debt. "It can't hurt to have a written notification in your file in case a problem arises later on," advises Danford.

Preventing a problem

Uneven financial bags can also hurt those who are happily married or newly committed. Renee A. Hansen, a senior financial adviser with Ameriprise Financial Services and a private wealth adviser in Phoenix, suggests that the best way to handle a financial meltdown is to sidestep one altogether. "Keeping credit accounts separate is really the best way to go," she advises.

"In the event one person loses their job or is suddenly unable to earn an income [due to illness or accident], the other isn't left in an unrealistic financial position," Hansen continues. Translation: You won't get stuck carrying more financial responsibility than your income can handle. She adds, "It's not about 'sticking it' to your mate. It's about protecting one-half of your household's credit score."

That protection, Hanson says, comes from partners making sure they aren't responsible for more than they're actually able to pay and not, Hansen adds, "what they 'hope' they can someday pay."

Balancing bags

A semiannual review of what you're both bringing in vs. what needs to go out, Hansen says, keeps bags balanced fairly. "Pick two times a year that are easy to remember, like when you file your taxes and your birthday, or when the clocks change for daylight savings time, to review your financial picture," she suggests.

She also urges separating financial obligations whenever possible -- no matter how solid your romantic union is. "This lets you both build solid scores," she explains. And in the event one of you takes a hit, the other's credit won't suffer as much as if everything were linked together.

"Carry utilities in separate names, too," Hansen suggests. "One can take the electricity, the other the phone."

Not mixing credit with love is especially helpful for unmarried couples. Those at the greatest risk in this situation are cohabitating couples. "Without the ability for a judge to divide debts via a divorce proceeding, this can get very ugly," says Danford.

Danford recommends couples (married or not) review their credit scores together. "An annual review keeps everyone in the loop on where your household stands." It will also indicate a problem. "Reviewing scores can help a couple determine if one partner's credit is over- or under-exposed," Danford says. "It can indicate areas that need tweaks and adjustments before a major crisis arises."

The bottom line

The most in-love of lovebirds should always think twice before co-signing on the dotted line. "You've got to consider how co-mingling credit can affect either of you in the long run," cautions Hansen.

And in the unfortunate event your relationship does sour, don't expect your ex to carry through on financial promises made while you were still a couple. Danford says it's quite common for those promises to be swept under the carpet during a divorce or break-up.

If you do get left holding the bag, credit counseling and debt repayment programs can help. "Many creditors will arrange for payment plans," says Danford, "after being given a copy of a divorce agreement."

LeaseTrader.com and Crash Text Dummies

Leonor Vivanco — Mon, 16 Nov 2009 21:58:49 GMT

After riding shotgun with her text-happy former roommate, Jinny Yi couldn't take it anymore.

"She would be texting while driving with her knees," said Yi, 31, who lives on the Gold Coast. "It was really scary."

Yi eventually stopped accepting rides from her friend and started offering to drive.

"Texting is probably one of the worst things to do while driving because it's so distracting," she said.
It's not just distracting. Starting Jan. 1, texting while driving will be illegal in Illinois. The state will join 18 other states, including California and New York, that have texting bans. In late September, President Obama signed an executive order banning federal workers from texting while driving on the job or in government-owned vehicles.

Texting drivers are 23 times more likely to get in to a crash than drivers who were not distracted, according to a Virginia Tech Transportation Institute study released in July. That's more of a risk than dialing or talking on a cell phone. Drivers texting had their eyes off the road for 4.6 seconds, equal to the time it would take to drive down a football field at 55 mph, the study showed.

Despite these and other studies that show the dangers of texting while driving--a test by Car and Driver Magazine found texting was worse than drunk driving when it came to drivers' response times--the behavior ranked surprisingly low in a recent poll about distracting car behaviors.

In a LeaseTrader.com survey of more than 3,000 drivers released last month, men ranked road rage frustration, eating and drinking and checking out other drivers more dangerous than texting while driving. Women listed kids in the car, putting on makeup and messing with the radio as the top dangers.

"That's weird. I think texting is way more dangerous," said Caroline O'Hare, 24, who lives in Old Town. "You're not looking at the road, you're looking at your phone."

Meanwhile, the use of texting continues to skyrocket. More than 740 billion texts were reportedly sent in the first half of 2009, nearly double compared to last year, according to CTIA, an association that represents the wireless telecommunications industry.

Drivers don't need new technology to be distracted, said John Sternal, spokesman for LeaseTrader.com, an online marketplace for Car Lease transfers. Sternal said he's seen drivers use electric razors in the car and knows drivers look at other drivers.

"Let's face it, I'm guilty of this too," Sternal said. "I'm a guy; guys like to look. You take your eyes off the road to send a text message and see who the pretty girl is--the bottom line is, your eyes are off the road."

Driver distraction was reported to be involved in 16 percent of fatal crashes and
21 percent of injury crashes in 2008, according to statistics released in September by the National Highway Traffic Safety Administration. The under-20 age group had the greatest proportion of distracted drivers involved in fatal crashes followed by drivers between the ages of 20 to 29, NHTSA stats showed. Specific distractions were not broken out.
"Texting right now is perhaps the most egregious act of distracted driving that involves technology that is occurring on our roads today," said Henry Haupt, spokesman for the Illinois Secretary of State's office. "When an individual has their hands off the steering wheel, their eyes are off the road and they're busy composing a message, the question is, 'Who's driving the car?'"

Despite the number of studies that show the dangers, despite the growing bans, texting is just too tempting for drivers like Paul Lescieux, who says he can't resist checking messages.
The 18-year-old Hinsdale student said he's aware he gets distracted from driving when he reads and responds to texts in the car, but, "It saves time and sometimes you need to give an immediate answer."

"I know it's bad," he said. "There's no real excuse to do it." lvivanco@tribune.com

The other phone offense

In addition to the upcoming statewide texting ban, Chicago has had a law on the books since July 2005 to ticket drivers on cell phones not using a hands-free device.
But this year, the number of tickets issued for using cell phones while driving is down drastically compared to the past few years. From January to Oct. 30 this year, 2,403 tickets were written. That's down from the 7,584 tickets in all of 2008, 17,413 in 2007, and 13,433 in 2006, according to statistics compiled by the traffic division of the Cook County circuit court and provided by the Chicago Police Department.

LeaseTrader.com on NBC Connecticut News

Wed, 11 Nov 2009 18:55:55 GMT