How to avoid paying cash for the holidays
photo credit: Ru

Planning a family? How to prepare financially
Dear Liz: My wife and I are planning to have a child in the next couple of years, and I realize that I have no idea how to go about preparing for that financially. How much cash should new parents try to have available? What else should we be considering? Answer: Congratulations in advance on your entry into the great adventure of parenthood. The most important thing to know is that you can’t predict what’s ahead, financially or otherwise. The U.S. Agriculture Department estimates that it will cost middle-income parents nearly $300,000 to raise a child to age 18. But your costs could be a lot less if you’re particularly fr

Building credit in tight times
Dear Liz: In March 2008, I applied for a secured credit card with a limit of $500 and started the path to build my credit history. I was told on the phone that after 18 months, the status of my card would be upgraded to a regular, nonsecured card. Now the issuer is telling me, “We are not upgrading secured cards after a change in policy.” What recourse do I have, bearing in mind that all my payments have been on time and in full? Answer: Credit card issuers have become much more conservative in recent months. But that doesn’t mean you’re out of luck. Another issuer may well welcome your business. Check your credit sc

How bankruptcy affects your credit scores
Dear Liz: It looks as if I will have to file for personal bankruptcy because of a business failure. (I guaranteed the debts personally, and there are two I know I can never repay.) I could possibly keep the business open a few more months if I stopped paying a few of the other creditors, thus keeping my workers employed a little longer. I know my FICO score will drop when I file, but will it drop more if I stop paying bills before I file, or is the FICO drop the same no matter what? Answer: The end result will be about the same. If you stop paying some bills, those skipped payments will lower your score substantially. Once you

Today’s the last day to enter my book giveaway
Today is the last day to enter to win free copies of my books. FT Press is giving away 15 sets of my library–”Your Credit Score,” “Easy Money” and “Deal with Your Debt.” Another 10 people will win copies of “Your Credit Score.” Just by entering, you’ll get