Bruce Williams
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DEAR BRUCE: I have been married for 30 years, and I'm 50 years old. I have done some major damage to my credit. I have borrowed against everything. I have refinanced my home, borrowing against my 401(k). Our home is worth $150,000, and we owe $135,000. I owe my 401(k) more than $20,000, and I have $20,000 in credit-card debt. I have been trying to reduce my debt, but it just seems daunting. I have talked to some of the counseling companies, and they want to charge a large percentage to negotiate a better deal. I don't see how this helps me. Where do I go from here? I don't want to go bankrupt, but I'm just crushed. On top of everything, the company I work for is in financial trouble. — F.C., via e-mail
DEAR F.C.: You do have a ton of problems here. While you say you don't want to go bankrupt, technically, you are bankrupt — you owe more than you are worth. First, you need to get out of debt. You didn't mention how much you earn, but you are probably so far in hock at your age, it would be difficult, if not impossible, to get out. You might wish to talk to the Consumer Credit Counseling Service, a nonprofit organization that I have confidence in. CCCS may be able to help you. In my opinion, many of the companies that advertise extensively are best avoided. You might also want to find a part-time job to help pay down the debt.
DEAR BRUCE: My mother recently died. In her effects, I found a safe-deposit key. I have contacted her bank, but they said it didn't belong to them. I have contacted every other bank in the city — no luck. I never knew she had this. I would be interested to see what might be stashed away. Can you think of any way to find this out? — Reader, via e-mail
DEAR READER: Since you've had no luck with the local banks, you are going to have to go through your mom's papers with a fine-toothed comb. If she did have a safe-deposit box, she would have had to pay for it, and there will be a paper trail. You need to do some serious digging. There is no way you can trace the box by the key; it is deliberately void of markings to keep someone from identifying the bank to which it belongs.
DEAR BRUCE: My husband recently passed away, and he was the primary name on several of our credit cards. Should I be aware of any pros or cons when I inform the companies of his death. I do have cards in my name, along with my own bank accounts, etc. Will removing his name affect my credit rating? The companies are not talking to me when I call. What should I do? — Reader, via e-mail
DEAR READER: You mentioned that you have several cards in your name. Why do you need so many credit cards in both your husband's name and yours? Often, the lender will refuse to renew the card if it knows someone has passed away. But so what? If you have adequate credit in your name (as you apparently do), I would simply notify the credit-card companies that you no longer have use for these and that your husband has passed away. I've never understood why people feel they must have a pocket full of credit cards when one or two are enough. Extra cards are an invitation to disaster.
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Send your questions to JWR contributor Bruce Williams by clicking here. (Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided.) Interested in buying or selling a house? Let Bruce Williams' "House Smart" be your guide. (Sales of the book help fund JWR).
