ONLINE MEDIA

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 Survey: Children More Distracting for Drivers Than Texting

Fri, 16 Oct 2009 14:34:19 GMT

As the federal government looks to ban texting while driving, a new survey finds that isn’t the most dangerous distraction for drivers: Kids and road rage are.

The survey of more than 3,000 drivers also found a distinct difference between men and women when it comes to distractions on the road, according to LeaseTrader.com, which conducted the poll.

For 18.3 percent of men, road rage frustration was the most dangerous distraction, followed by eating/drinking (14.7 percent), checking out other drivers (10.9 percent) and kids in the car (9.8 percent).

For women, kids in the car were the No. 1 distraction (26.3 percent) followed by putting on makeup (16.6 percent), messing with the radio (10.4 percent) and navigation (9.5 percent). Women did not cite road rage as a distraction.

Just 7.6 percent of men and 4.2 percent of women cited texting while driving as a dangerous distraction.

Last week, the Obama administration said it was cracking down on texting while driving. The president signed an executive order directing federal employees not to text-message while driving government-owned vehicles, when using electronic equipment while driving, or while driving their own vehicles while conducting government business.

LeaseTrader Drivers Downplay Texting Distraction In Poll

Fri, 16 Oct 2009 14:33:18 GMT

As the federal government attempts to restrict text messaging while driving, a new survey finds that there are more dangerous distractions for drivers, such as road rage and food.

LeaseTrader.com surveyed 3,000 drivers and discovered significant differences between men and women when it comes to distractions on the road.

Eighteen percent of men think road rage and the temptation for revenge is the highest distraction today. According to the poll, men also think things like checking out other drivers (10.9 percent) and other passenger conversations (9.5 percent) are bigger dangers than texting while driving (7.6 percent).

Women, on the other hand, say kids in the car are the biggest distraction (26.3 percent). Women also said that texting while driving (4.2 percent) is even less of a concern than men, and putting on makeup (16.6 percent) and avoiding inclement weather (8.4 precent) pose a greater risk.

Last week, President Barack Obama signed an executive order directing federal employees not to text-message while driving government-owned vehicles, when using electronic equipment while driving, or while driving their own vehicles while conducting government business.

LeaseTrader Driven to Distraction

Lisa Black — Fri, 16 Oct 2009 14:32:11 GMT

Drivers rank other hazards higher than texting
Things people consider their primary distractions

Texting while driving has been banned in federal vehicles and portrayed in graphic videos designed to scare teens. But according to at least one survey, many motorists say other roadway distractions are more dangerous.

Men indicate they are sidetracked by road rage, with 18.3 percent answering that they struggle with the temptation to take revenge, according to a national poll of 3,000 drivers by Miami-based firm LeaseTrader.com. Women considered children in the car to be the biggest distraction.

Texting while driving ranked fairly low among concerns.

The survey was conducted online and through phone interviews, said John Sternal, a company spokesman.

Nearly 11 percent of men cited "checking out other drivers" as their highest distraction, something that did not appear on the women's list. "It's pretty apparent men and women have different dealings in all aspects of life," Sternal said.

LeaseTrader Survey: More Than Texting Distracts Driving

Fri, 16 Oct 2009 14:28:28 GMT

Car and Driver Magazine caught headlines when they announced that texting while driving was more dangerous than drunk driving, but a new survey asked motorists to open up about what other activities grab too much attention behind the wheel.

Some drivers readily admitted that having other occupants in the car, or even eating and drinking while driving took their attention away from the road.

The survey conducted by LeaseTrader.com polled more than 3,000 drivers nationwide. The results were divided into male and female categories.

Both sexes put texting while driving in the middle of the pack on the list of things that distracted them.

A quarter of all women surveyed said having kids in the car was much more distracting than anything else. After totting kids around, their No. 1 was putting on makeup.

For male motorists, road rage was the top distraction. Nearly 20 percent of men cited frustration and the temptation to exact revenge on discourteous drivers as the biggest reason they failed to pay attention.

Survey participants said that while they were very aware of some of the distractions, there were some that they hadn't thought about until they were asked to list them.

Top Male Distractions By Percentage

      18.3% -- Road Rage
      14.7% -- Eating / Drinking
      10.9% -- Looking At Other Drivers
      9.8% -- Kids In The Car
      9.5% -- Passenger Conversations
      9.3% -- Reading
      7.6% -- Texting
      7.1% -- Playing With The Radio
      4.2% -- Navigation
      4% -- Avoiding Inclement Weather
      3.2% -- Shaving
      1.4% -- Other

Top Female Distractions By Percentage

      26.3 % -- Kids In Car
      16.6% -- Putting On Makeup
      10.4% -- Playing With The Radio
      9.5% -- Navigation
      8.4% -- Avoiding Inclement Weather
      7.1% -- Passenger Conversations
      6.8% -- Eating / Drinking
      4.2% -- Texting
      3.1% -- Reading
      2.5% -- In-Car Video
      2.4% -- Road Rage
      2.7% -- Other

Bartering and Lease Swap becoming more popular amid recession

Laura Cohn, — Fri, 16 Oct 2009 14:26:59 GMT

Given the economic downturn, many people are reverting to barter.

Craigslist recently reported that bartering activity had jumped more than 80 percent on the site over the past year. The reason? Bartering is addictive -- and fun:

You can trade just about anything. Want to upgrade your camera? Adorama will quote you a price for your camera and cut you a check or offer a credit toward new equipment (Adorama.com). Want to break your Car Lease? Go to Swapalease.com or LeaseTrader.com. At SwapThing.com, recent trades included a clothes dryer for a high-speed table saw.

Barterer beware. Look for a site that verifies the addresses and phone numbers of its users, such as BarterBee.com, which lets you trade CDs, movies and video games free.

Swap a house. Clubs such as International Home Exchange Network (IHEN.com) let you do that for as little as $40 a year. To find the right club, visit KnowYourTrade.com.

Remember Uncle Sam. If you barter more than casually, you may have to report your transactions. The IRS has guidance at www.irs.gov but check with your accountant. Small businesses trading with others can find help on taxes at sites such as Barter Business Unlimited (BBU.com).

Dump Dud Deals and Save Some Dough – LeaseTrader.com

Dayana Yochim — Fri, 16 Oct 2009 14:25:52 GMT

When times were better, it was a lot easier to let the little things slide. Things like new cell-phone fees, car-lease clauses, and all those fliers written in fine print that got tossed straight into the recycling bin.

The problem is that some of those little things have turned into much bigger money maladies as time has passed. Here are four fixes for a few of the most common money siphons.

Stop life-insurance premiums from driving you to an early grave
Escaping the shackles of a shoddy life-insurance policy before your contract is up can be a snap -- so long as we're talking about term insurance. Simply cancel your policy, and stop paying premiums.

If, on the other hand, you hold a policy that offers permanent coverage, your punishment for early cancellation is a nasty surrender charge. These fees can be brutal -- not budging for years and costing up to 10% of the policy's payoff value. Thus, many people simply stop paying their premiums and kiss whatever money they've paid into the policy goodbye.

For those who haven't built up any cash value, a cut-and-run approach may be the soundest exit strategy. But if you've had the policy for 10 or 15 years and have built up a decent amount in cash value, bail out by either transferring into a low-cost annuity with a 1035 Exchange or converting to a paid-up term insurance policy tax-free with your current company. But don't get sweet-talked into another high-fee product, and make sure you're eligible for a replacement term policy.

Hang up on a dud cell-phone contract
That snazzy phone you got for free makes a pricey paperweight if the service contract turns out to be a bad fit. I don't blame you for considering tin cans and a ball of twine, especially when faced with $175 to $250 in early termination fees -- for each phone, if you have a family plan! Get out your reading glasses, and cozy up to your contract.

Look for the "materially adverse change" clause, which allows customers an early no-fee exit when the carrier changes terms -- say, for example, it adds administrative fees or increases its texting charges. The catch is that you have only 14 to 30 days to bail. If that window has closed, head to Celltradeusa.com to swap out of your contract. Registration is free, and unlimited access to potential buyers is $19.99 -- good until you finally unload that contract.

Put the brakes on a crummy Car Lease
If you're getting taken for a ride in a pricey Car Lease, stop watching the odometer and head to LeaseTrader.com or Swapalease.com. These services match you up with someone who will take on your auto albatross and thus steer you clear of pricey termination fees. Paying a few hundred dollars to hand over the keys sure beats the alternative of shelling out $300 to $400 in dealer disposition costs and having to pay the remaining contract in one lump sum.

Dump that overpriced, underperforming annuity
Do you own an annuity whose return is severely lagging its benchmark (e.g., a fixed annuity versus a bond index)? Or is the company behind your annuity looking a little sickly? It might be time to plan an exit strategy.

Since dumping an annuity early triggers surrender charges, the longer you wait to bail, the less you'll pay in penalties. In the meantime, consider partial annual withdrawals (e.g., 10% per year), which some institutions allow sans surrender fees.

If you're 59 1/2 or younger (you look great to me, by the way), avoid the tax consequences of cashing out -- both deferred income taxes and that brutal 10% gains penalty -- by making a 1035 Exchange into a lower-cost annuity (try Vanguard, Fidelity, and T. Rowe Price). You'll still pay surrender charges, but you'll avoid triggering a taxable event. Just make sure the company to which you're moving your money handles the transfer.

Another bonus: You'll save buckets in fees. For example, the Vanguard Variable Annuity has a mortality and expense charge of 0.45% as well as low fees on the funds within its plans. You'll make up those surrender charges quickly -- in a single year if your current annuity charges 2% -- which makes parting ways much less painful.

If you're worried about the company's solvency, you do have some insurance on your investment -- from $100,000 to $500,000, depending on where you live -- through your state's Guaranty association. Here's more about the good, bad and ugly of annuities.

More money triage
If you're suffering any aftershocks from financial fumbles, don't waste energy kicking yourself -- start dealing with them now. For more advice, see:

Top 20 Reasons People Want to Get Rid of A New Car From LeaseTrader.com

Mark Tapscott — Fri, 11 Sep 2009 15:02:17 GMT

You say you loved your new vehicle when you first laid eyes on it in the dealer showroom, but now that you've driven it a few days, it just isn't what you expected. So you want to get out of that purchase or lease deal that was so inviting.

If you bought a Government Motors product, you are probably in luck because GM has announced a new 60-day return policy. Check out the release from the automaker here for details. There are exceptions, such as you can't have put more than 4,000 miles on the vehicle.

Expect other automakers to follow GM's lead on this.

In the meantime, you might be wondering what sort of reasons people cite when bringing back vehicles they thought they loved, but then things went sour behind the wheel. LeaseTrader.com helps people get in and out of leases, and they are citing these as the top five reasons:

1) divorce/breakup
2) death
3) health
4) relocation
5) family growth

LeaseTrader.com says these five account for 65 percent of all customer situations. No surprise that divorce and death are on top of the list, but relocation and family growth strike me as a little iffy. You got the vehicle to drive, to get you to new locations, right? And if your family suddenly grew, odds are it didn't come as a surprise, right?

Anyway, here are the rest of the top 20, according to LeaseTrader.com:

6) deployed to military
7) lost income/job
8) gas prices
9) dissatisfaction
10) disability
11) new company-issued car
12) child went off to college
13) car safety
14) retirement
15) environmental
16) parking too expensive
17) public transportation
18) weather
19) social pressure
20) feature upgrade

LeaseTrader.com on azfamily.com

Kirsten Joyce — Mon, 10 Aug 2009 11:45:16 GMT

Exclusive: Brand Loyalty Survey Shows Erosion

Jim Motavalli — Tue, 04 Aug 2009 17:49:12 GMT

American automakers (with the notable exception of Ford) have some work to do in rebuilding their brand images, according to an as-yet unreleased survey from LeaseTrader.com. The data also shows that loyalty is on the decline for almost all models—a probable result of the recession (and people going for the best deal they can find).

“American companies need to get back to building the cars people want, plain and simple,” said John Sternal, a LeaseTrader.com vice president.

The website, which pairs people needing to get out of leases (the state of the economy has meant a big jump in that business) with customers wanting to finish them off, surveyed 150 customers of each brand in reaching its brand loyalty conclusions.

Who has the best brand loyalty? Mercedes-Benz, with 53.2 percent retention (down from 55.5 percent in 2008, the survey’s first year). Following close behind are Honda (51.7 percent, down from 54.2), BMW (50.6, down from 56.2), Lexus (46.1, 49.8), Ford (34.8, 31.9), Toyota (33.5, 36.2) and Cadillac (32.7, 28.4).

The survey information doesn’t necessarily track with automaker July sales figures released yesterday, but Ford was one of the few automakers to show a sales increase (2.4 percent) compared to July of 2008. Also showing a positive jump in sales were Hyundai (a mid-pack loyalty performer, at 17.6). Hyundai’s sales results are likely due to its very strong incentives, including Cash for Clunkers deals before the program actually went into effect. Kia was also up in sales (4.7 percent) but it was also mid-pack in loyalty (12.8 percent). The biggest sales gains were made by Subaru (34.2 percent), which has average loyalty (16.5 percent).

At the very bottom of the list were four brands whose future is either dim or in flux. Bringing up the bottom was GM’s doomed Pontiac division (just 7.9 percent brand loyalty, down from 13.8). Second lowest was another brand whose future has been questioned: Mercury (8.4, down from 12.1). GM’s Saturn, which will have a new life under the savvy Roger Penske, is at 9.2, down from 13.6. And Jaguar, reflecting its sale to India-based Tata, is at 9.3 percent, down from 14.8 in 2008. Other brands with low numbers are Volvo, Hummer (of course!), Porsche (surprising, that one), Chrysler, Mitsubishi, Mazda and Saab.

Sternal says brand retention is “based on all kinds of things, and price is definitely a factor. People go back to the dealer they’ve bought from before and say, ‘I’m giving you a chance to take care of me again.’ If that doesn’t happen, they might lose loyalty.”

Mercedes’ stellar showing reflects the perception that “quality comes first” at the company. The company’s actual quality performance may differ (Consumer Reports says the C-Class has had just “good” reliability, for example) but, as they say, perception is reality.