HOW SHOULD I MANAGE MY CREDIT?

Women are more likely than men to carry consumer debt but less likely to take on big-ticket debt such as a small business or investment loan according to the Journal of Financial Planning. One of the best ways to manage debt is to think carefully about the type of purchase you’re making so you can match it with the right type of financing. 

Using credit to buy an asset like a house is probably a sound financial investment, but buying consumables like vacations or restaurant meals on credit can add up in interest if you don’t pay your balance off in full each month. Last night’s $25 meal may end up costing you $50 if it’s not paid off quickly. We can help you establish and maintain your credit as well as get your credit back on track.

Establish a credit history.

If you don’t have a credit history, you should start to build one as soon as possible. For women, it’s important to establish and maintain your own credit history separate from your spouse’s. You should have one credit card in your name alone, rather than only joint accounts with your spouse. You never know when you might want to start your own business or when, due to death, separation, or divorce, you will need an established independent credit history.  

Credit Cards

Manage your credit.

Be sure that you are using credit appropriately. Start by researching how much money you need and how you intend to pay it back. Most of us are familiar with credit cards, mortgages, and car loans, but certain loan packages can be a good fit for adding on to your home or leveraging your stock buying power.

• Credit Card—Use it like a temporary loan with interest. You should try to pay balances off monthly to avoid mounting credit and interest.
• Home Equity Line—Get a home equity line for home repairs and additions, or use it to consolidate higher interest debt. You must have enough equity built up into your home to qualify.
• Buying on Margin—If you own stock, you may be able to utilize a margin account to borrow against its value. 
• Life Insurance—If you have cash value life insurance, you can take out loans against your life insurance policy. 
• Borrowing from 401(k) —You may be able to borrow against your 401(k) savings.

Wachovia Home Equity Products

Wachovia Life Insurance Products

Get your credit under control.

Because it’s just as easy to reach for your credit card as it is to reach for cash, we often make purchases with credit that we shouldn’t. Unfortunately, one of the pitfalls of credit is that it can creep up on you when you’re not looking. Wachovia can help you find ways to gain control and put your credit back on track.  If you’re having trouble paying off your credit cards:

• Contact your credit card company and negotiate a more convenient payment due date to avoid finance charges and late payment fees.
• Negotiate your credit card’s interest rate and minimum payment. If you tell the company you’re having trouble paying their bill, they’d rather negotiate a lower interest rate than have you default completely. They may even waive future finance charges.
• Transfer balances to card companies offering a lower interest rate. Before you do that though, give your current card company a chance to meet or beat the lower rate. Most of the time they will rather do that than lose your business.
• Notify your creditors if you can’t make a payment or need to make a partial payment. When they don’t hear from you, they have to assume you are skipping out on your responsibility. If they know you’re having difficulties but aren’t running from your obligations, they’re more inclined to be accommodating. They’ll probably be willing to work out different repayment conditions to help you get back on your feet. 
• Review your credit report regularly to check for errors. If you find errors, they can be disputed by filing a dispute form in writing along with copies of supporting information. There is no charge for filing a dispute.

  Experian
  P.O. Box 2104
  Allen, TX 75013-2104
  (888) EXPERIAN (397-3742)
  
  Equifax, Information Service Center
  P.O. Box 105873
  Atlanta, GA 30348
  (800) 685-1111
  
  Trans Union Corporation
  P.O. Box 390
  Springfield, PA 19064-0390
  (800) 888-4213

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Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

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