Transcript webinar slides

Parents Forever
CREDIT ISSUES DURING FAMILY
TRANSITION
JENNIFER GARBOW & SHARON POWELL
UNIVERSITY OF MINNESOTA EXTENSION
FAMILY RESILIENCY, EXTENSION EDUCATORS
© 2015 Regents of the University of Minnesota. All rights reserved.
OBJECTIVES:
 Objective 1: Protecting and maintaining your credit
through family transition
 Objective 2: Understanding the implications of overusing
credit
 Objective 3: Exploring division of debt
© 2015 Regents of the University of Minnesota. All rights reserved.
POLL
 How comfortable are you teaching issues
around credit to parents?
© 2015 Regents of the University of Minnesota. All rights reserved.
Objective 1:
PROTECTING & MAINTAINING YOUR CREDIT
THROUGH A FAMILY TRANSITION
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Create a post-transition money management
plan
Identify all sources of income
First expenses should be mortgage or rent
© 2015 Regents of the University of Minnesota. All rights reserved.
The University of Minnesota is an equal opportunity educator and employer. This PowerPoint is available in alternative formats
upon request. Direct requests to 612-626-6602.
Inventory all debt & credit lines
request a free credit report
make note of individual & joint accounts
© 2015 Regents of the University of Minnesota. All rights reserved.
The University of Minnesota is an equal opportunity educator and employer. This PowerPoint is available in alternative formats
upon request. Direct requests to 612-626-6602.
Remove each other as authorized users
THIS IS A SIMPLE AND IMPORTANT TASK
FOR CREDIT CARDS
© 2015 Regents of the University of Minnesota. All rights reserved.
Separate Joint Accounts
IF YOU CANNOT SEPARATE, IT’S IMPORTANT TO MANAGE
SHARED ACCOUNTS CAREFULLY
FOR LOANS WILL HAVE TO GO THROUGH THE LENDER
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Monitor Your Credit
STAGGER PULLING CREDIT REPORTS EVERY 4 MONTHS
ANNUALCREDITREPORT.COM
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Objective 2:
UNDERSTANDING THE IMPLICATIONS OF
OVERUSING CREDIT
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FINANCES & EMOTIONS
 Can negatively impact both parents
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FINANCES & EMOTIONS
 Impulsive decisions
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FINANCES & EMOTIONS
 Using credit to get through
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More expenses during transition
ATTORNEY FEES
RELOCATION EXPENSES
CAN YOU THINK OF OTHER ADDITIONAL COSTS
DURING THE TRANSITION TIME?
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Objective 3:
EXPLORING DIVISION OF DEBT
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Secured & Unsecured Debt
SECURED DEBT IS BOUND BY THE TERMS OF THE
CONTRACT, IF BOTH PARENTS NAMES ARE ON IT THEN
BOTH ARE RESPONSIBLE
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Unsecured Debt
DEBT IS IN GENERAL PROPORTION TO A PARENTS ABILITY
TO PAY
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Understand your Divorce Decree
DIVISION OF PROPERTY
SPOUSAL SUPPORT
CHILD CUSTODY
FINANCIAL OBLIGATIONS OF EACH PARENT
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What if a parent is not fulfilling their
financial obligations?
IF IT’S A JOINT ACCOUNT THE OTHER PARENT IS
EQUALLY RESPONSIBLE, REGARDLESS OF THE
DIVORCE DECREE
© 2015 Regents of the University of Minnesota. All rights reserved.
Establishing your own credit & financial
identity
USE INDIVIDUAL CREDIT
PAY ON TIME
PAY OFF BALANCES MONTHLY
SLOWLY BUILD
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Questions???
Thank you!
© 2015 Regents of the University of Minnesota. All rights reserved.
The University of Minnesota is an equal opportunity educator and employer. This PowerPoint is available in alternative formats
upon request. Direct requests to 612-626-6602.
Poll
How comfortable are you now teaching
financial concepts to parents?
© 2015 Regents of the University of Minnesota. All rights reserved.
The University of Minnesota is an equal opportunity educator and employer. This PowerPoint is available in alternative formats
upon request. Direct requests to 612-626-6602.
RESOURCES & REFERENCES
 www.DivorceSupport.com
 www.Credit.com
 MN Attorney General’s Office: For basic money & credit information:
www.ag.state.mn.us
 www.BankRate.com
 Request a free credit report at: www.AnnualCreditReport.com
 www.Creditkarma.com
 LawHelpMN.org: offers court forms, fact sheets, and other resources
on a wide range of legal issues
 www.mnlegaladvice.org: MN Legal Advice Online is a new FREE
way to get legal advice online if you can’t afford a lawyer.
© 2015 Regents of the University of Minnesota. All rights reserved.