Welcome to the World News Tonight Power of 2 Web chat.

Jennifer Openshaw is president of WeSeed.com and the author of a book about overcoming barriers to financial success.  Submit your questions about ensuring your financial health. 

Openshaw will log on and answer questions LIVE from 7-8 p.m. Eastern and Central time.

Thank you!

I understand paying with cash to stay out of credit card debt BUT - how do you pay down debt you already have piled up?

 

steve...

I have questions about how a stay at home mom can affect her financial safety.  I can't  seem to save money when I make very little.  I do have a IRA from past jobs but not much else.

 

Thanks,

C Gibbs

Where do you start if you have very little savings?

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Hello, I have spent the last year cleaning up my debt how do I go about cleaning up my credit report of those adverse accounts.

Thank you

I would like to know how to negotiate my total credit card balances down with a cash-lump sum.  Do I have to hire someone to do this?  I believe it would be called an offer in compromise. I have recently had some life changing events that are hindering my ability to keep paying my monthly payments without running extremely short to live on. I am not nor have I become late in paying or am I delinquent in any of my payments.

Is debt consolidation a good idea? I have seven credit cards, all with a balance.

I have an old debt which is no longer affecting my credit, however, the company who has acquired the debt has found me and wants payment.  The debt is in the $8900 range and they say they'll settle for $4300 ish. 

If the debt is no longer affecting my credit rating, will the settlement show up as a negative blip on my credit report? 

What is the best advice to pay down a debt of $8900 for a part time working adult student?

Thank you so much for your time.

Shannon

Hi,

With the prices of everything going up all the time.  I'm out of work & can't find work.  I haven't had any luck with getting a job.  I've had several phone interviews all good-but when I've meet with a couple of the temporary agencies.  The interview went well but nothing every turn up.  I've had one temporary company  call me about two different jobs, they told me they  would call me back(but haven't), I've called them but no return phone call.  What I'm asking is how are you suppose to save when you don't have a job & with today's prices.  My husband works & the savings we used to have was use when he had 5 different surgeries and in Nov.  I had surgery.  What is the average person suppose to do.  I'm sure I'm not  alone, that even the people that have 2 incomes coming in-everything goes for gas & food.

Thank you for you time,  Judy

Please bear with us.  Jennifer should be logged on momentarily, and we thank you all for your patience.

Where is the best place for me to get started learning more about retirement and investing? I have some savings, but have no idea what I should be doing with it. Where can I start?

If I cut up my credit cards and start paying only cash, am I going to hurt my credit rating by not having any credit going on?  Should I keep one card, use it minimally and pay it off each month, or should I just cut it up and be done with it?  My credit rating is currently 730 but I have credit card debt that I want to eliminate.

Thank You.

 

Bank or Credit Union? I use Bank of America and it seems like I get charged for everything. But my friend uses a Credit Union and has no charges if any compared to my Bank. Are Credit Unions better?

Steve, boy... that's a question i get from so many people. let me offer a few specific ways to chip away at that debt and then also refer you to a chapter in my book, The Millionaire Zone, that gives some great strategies. In the book, by the way, I talk about Kristine, a real woman with $40k in debt and a terrible home loan, and i talk about how i got her debt-free... she is a happy camper today needless tosay. First, you need to know how much money you have coming in and how much going out. Doing a simple budget (and you can get a program to help you at www.freebudgetkit.com) will help immensely as it did with Kristine. Then  find ways to free-up money to pay down debt. One suggestion is to look at your top 5 biggest expenditures - like the home (are you paying mortgage insurance), the car (can you get insurance wiht a higher deductible?), insurance (can you bundle with one company and save? often you can). Second, cut the frivolous spending - things like dining out, buying stuff you don't really need. I'm a big believer in making lists so that you buy what you plan. Also, can you generate some additional income, maybe be renting out a room? tough times call for new thinking, really. Debt consolidation is an option but the question there is a) do you want to put your home at risk and b) can you handle the new payments? remember that most people who get rid of debt end up going right back because they haven't changed their spending behavior. Finally, if you have a lot of debt and no income, you can often work with the credit card companies. They will often give you a period under their forebearance program where you can delay payments without it hurting your credit report. If you're facing hardship, like divorce or no true prospects of work, well, that's when you (or someone on your behalf) can negotiate your terms. I could go on more about this but know that you can get out from under if you put your mind to it. Just remember to commit to getting out from that debt and follow the rules in the book. Another resource is the credit kit at www.easycreditkit.com. Go get em, Steve

I have multiple credit cards with approximately $90k worth of debt; how can I implement a plan to pay off this debt?