Our Community Power Blog

If you are switching from one job to another, and already have a 401k Plan with your old employer, there are 3 things which you shouldn’t do when you think of a 401k Rollover (transferring 401k money into an IRA account).

1. Go for a withdrawal:

This is something that most people do when they change jobs. Taking out cash from the 401k account, that too, when you’re under 55, will require you to pay taxes on the money withdrawn. Besides, there’s a tax penalty worth 10% of the distribution.

2. Simply forget about your old plan:

Your new employer may offer you a new 401k plan but this doesn’t mean that you don’t make use of the old plan. Your previous employer might change the 401k money investment options which might give you lower returns. Moreover, if your 401k balance is below $5000, then your employer won’t bother to remember it.

Read the rest of this entry »

Joint debts can make the break up of a marriage more traumatic. After divorce, it is legally not practical to divide the debts between the couples. Going through a divorce is the most difficult time and such financial complications can turn things all the more ugly and complicated. In case of joint accounts, if one joint account holder misses the payment or stops paying the bill, the lender will come after the other joint account holder. When you open joint accounts with your partner, it means that both of you are responsible for it. A divorce decree does not change the previous agreements made between you and the lenders. It doesn’t matter to the lender who actually made the charges or who agreed to pay off the bills in the divorce decree. The lender will try to collect from both the account holders. So, a word to the wise, don’t sign a divorce petition just for the sake of calling it a quit with your partner. Don’t sign the petition until and unless everything related to all the credit accounts that are jointly held is worked out.

If you are contemplating to file for a divorce, then here are some credit tips. Read the rest of this entry »

Credit cards can give you the shock of your life. Plastic money is what fulfills our life style isn’t it? However there are reasons which can prove it wrong. We have become dependent on the plastic but are they worth it?

Find out some points that disclose the negatives of the pocket size friend who you possess.

Read the rest of this entry »

(I have written another post as a continuation to this)
Life after divorce is not easy. All of a sudden you are left alone with issues such as children, money, career and home. Yeah…I know it can leave a person reeling. Matters can go even worse for you if your ex spouse is not paying off the joint accounts you once held together.

Being divorced does not mean that you are off the hook for any of the debts held by your ex-spouse. It’s pretty normal for the married couples to hold joint accounts. But what happens to these joint accounts when you are divorced. The accounts you held with your ex will be listed in your as well as your ex’s reports. You might be now thinking of the divorce decree that said that all the joint accounts have been assigned to your ex. But wait!!! The divorce decree is not concerned with the original contract that you and your ex had with the lender.

So, what happens when your spouse stops making payments on the accounts assigned to him or her in the decree? You have to come up with the full amount and it will be really hard for you and the things can turn ugly when you start getting behind on your payments. And late payments really hurt your report. Before your report is marred, try to convince your ex to put the accounts in his or her name. I know it won’t be a cake walk for you but still you have to do it. Or, you can consult an attorney and chalk out some plans so that one of you at least makes the minimum payments. So, sitting idle and just blaming your ex for ruining your credit won’t help. You have to do something!!!!

Technorati Tags: Credit report, Divorce, Divorce Decree