Events Calendar
In This Section
Most Read Stories
Akron judge Linda Kersker dies
DiLullo's closes doors after 63 years
Portage man beaten at home, robbed of coins
Akron police arrest murder suspect within an hour
Call center to cut 250 jobs in Akron
Rib, White and Blue is festival of tastes
Man fit for trial in rape of girl, 2
UPDATE: Deadly motorcycle crash closes I-76
Blogs:
Pets:
Summit teams up with Rescue Waggin' to save dogs
The Heldenfiles:
I Hate "More To Love"
Patrick McManamon:
Ron Artest goes to the Lakers
Akron Zips:
Opponent outlook: Northern Illinois
Browns Bulletin:
Single-game ticket sales begin July 11
Tribe Matters:
Tribe needs to slow down opponents
Cleveland Browns:
Stallworth test showed marijuana
Kent State Sports:
Men's Basketball Scheduling update
Cleveland Cavaliers:
Updated: Free Agency: Another Gone - Apparently
All Da King's Men:
IPCC Already Wrong About Global Warming
Blog of Mass Destruction:
Wow….Sarah Palin Resigns Governorship
Akron Law Café:
Abraham Lincoln and the Fourth of July
Varsity Letters:
Highland senior receives honor
See Jane Style:
Picnic Wear
Car Chase:
Where do We Go from Here?
Let's Talk Real Estate:
Hate Crime in Fort Worth Texas: "That F***t had it Coming"
Ohio Travels with Betty:
Linda asks-where is the Ohio Chautauqua?
Sound Check:
Rundgren fans rejoice!: Second night of AWATS at The Civic added
HRLite House:
Sport Psychology and Performance Consulting
Akron Gamer:
Hot link: Best of Nintendo at E3
Callers also concerned about taking on children's, grandchildren's debt
By Betty Lin-Fisher
Beacon Journal business writer
Published on Friday, Oct 24, 2008
High credit card debt and home equity were the themes of phone calls handled by financial counselors during a free program offered Wednesday by the Beacon Journal.
There were also a number of calls from parents and grandparents trying to take care of debt of college-aged and adult children and grandchildren.
The financial hot line was sponsored as part of the newspaper's ''Reclaim the Dream'' series on personal finances. The phones were answered by volunteers from the Consumer Credit Counseling Service and Financial Planning Association of Northeast Ohio.
The final call-in will be held again on Saturday from 10 a.m. to noon. The number to call is 330-996-3644.
One caller had $30,000 in credit card debt on six credit cards at interest rates in the range of 10 percent to 14 percent. The caller was making minimum payments, but couldn't afford to pay any more and wasn't making a dent on the debt, said Jess W. Hurst, a financial planner with The Millennial Group in Akron.
The caller wondered if he should try to tap into his home's equity to pay off the credit card debt. Hurst told the caller that it would first depend on whether he could get a home equity line of credit, since banks have tightened credit standards on new lines. Many banks have also frozen existing lines of credit.
If the caller could get a line, then he could pay his current $800 payments at the prime interest rate, which is 4.5 percent, instead of the 10 to 14 percent he's paying now, Hurst said. Interest on home equity lines is also tax-deductible, Hurst said.
But, the key, Hurst said, if the caller does get a home equity line and pays off the credit card debt, would be to stop racking up credit charges.
''The biggest risk is if they don't change their behavior,'' Hurst said.
Financial advisers and credit counselors caution consumers about taking unsecured debt, such as credit card debt, and rolling it into a secured debt, such as a house, but they said the change in credit card behavior is the biggest factor. If the behavior changes and the home equity debt is also paid off and no further credit card debt is added, the consumer can use that temporarily to get a handle on finances.
Another caller, a 68-year-old woman, told Eric Schwarz, a financial planner with Bernstein Global Wealth Management in Cleveland, that she was having trouble making ends meet. But she had $35,000 invested in mutual funds and wondered if she should sell her mutual funds to pay off her mortgage, especially in light of recent losses on Wall Street.
Schwarz told her that without knowing the specifics of her mutual fund, she should probably speak to her broker, but if it helped her sleep at night, she should consider it.
In particular, Schwarz said, given the woman's age and that she is having trouble with everyday expenses, it seemed paying off her mortgage would then free up cash for her budget.
Kelly A. Smith, a financial planner with Beacon Financial Partners in Beachwood, and Victor Russell, regional manager for the Consumer Credit Counseling Service, both took calls from parents who got into trouble helping children in debt.
To see all of the financial stories, many with tips, in the Reclaim the Dream Series, go to http://www.ohio.com/news/reclaim_the_dream.
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com.
High credit card debt and home equity were the themes of phone calls handled by financial counselors during a free program offered Wednesday by the Beacon Journal.
Get the full article here.
Comments
Click here to post your comments
Barberton, OH
Posted 06:00 AM, 10/24/2008
Don't you know that all you have to do is shoot yourself somewhere on your body to make it look like a suicide, but live through it, and you get a free ride? That is what they are doing in Akron.
Posted 08:45 AM, 10/24/2008
haha true
