Credit & debt management

Earning a college degree used to be the default route to a secure future. However, the financial crisis of the last five years has thrown a wrench into the works. Parents have found themselves unable to assist with tuition, cuts in state funding mean fewer grants and scholarships available, and students are turning to government-backed student loans to finance tuition and make ends meet.

More than 600,000 new bankruptcy cases were filed in the first half of 2012. If you were one of them, it may feel like your financial future is doomed.

You’ve seen for sale signs on houses around town, and they’ve got you thinking. Maybe now is the time to declare independence from your landlord, and buy your own home. Buying a house will be the largest investment most people ever make, say personal financial planning experts at The Ohio Society of CPAs. Before you look for a house, analyze whether renting or buying at this point in time makes the most sense.

Difficult economic times and a tight job market have sent an unprecedented number of adult children back home to live with their parents. A 2010 Pew Research Center study showed 21.6% of adults ages 25 – 34 were living in a multi-generational household. Welcome to the Boomerang Generation.

Nearly 12 million adults were victims of identity fraud last year, up 13% from the previous year, according to Javelin Strategy & Research. Identity fraud or theft occur when thieves use your personal information to commit a crime, whether that means stealing your credit card details or using your Social Security number to set up a fraudulent bank account. The Ohio Society of CPAs recommends these steps to take after—and even before—identity theft happens.

Do you wish you had more control over your financial situation? The good news is that you don’t need to read a textbook to improve your financial literacy. In fact, according to The Ohio Society of CPAs, there are a few simple steps you can take to begin getting your financial house in order.

If you’re like most people, your mailbox is overflowing with credit card offers. Before you shred the next batch, take a look and see what the credit card companies are offering. You might find a deal that’s better than what you already have.

The Credit Card Accountability, Responsibility and Disclosure Act of 2009 (known as the Credit CARD Act) placed limits on the ability of those under 21 to get a credit card. It also set strict limits on card companies’ ability to market to college students. However, whether they get a credit card now or later, it’s a good idea for young adults to learn good credit habits early. The Ohio Society of CPAs recommends these tips for avoiding credit pitfalls.

According to the National Foundation for Credit Counseling, the top financial new year’s resolution for consumers in 2011 is cutting back on debt. Now that the year is nearly half over, how many people have kept that pledge? If your resolve is starting to fail, The Ohio Society of CPAs offers these tips for making it happen.

You’ve put in four, or maybe to your parent’s dismay, five or six years of hard work in college, and now graduation is here. What’s next? Planning for retirement.

If the IRS came calling, could you easily put your fingers on the important records that will back up your tax return? If you’re a hoarder, with file cabinets overflowing in old checks, bank statements and pay stubs, or a purger—someone who shreds everything the minute you file your return, these CPA tips of record keeping can help you make sense of what to keep and what to pitch. Reducing your paperwork burden will help you be more organized with the documents you do need to keep.

Most Americans agree saving for a rainy day is a good idea. But despite recommendations of CPAs, Americans are racking up certain debt faster than they are growing emergency savings, according to a recent Bankrate Inc. study.

“What’s your credit score?” That might be the question. But the answer is another question: “What’s in your credit file?”

Have you ever been hit by a hefty charge for accidentally withdrawing more money than is in your checking account? These fees can be quite high, so The Ohio Society of CPAs advises that you understand how they work and how to avoid them.

Are you and your spouse completely familiar with each other’s financial situation? Are critical documents up to date? Are you prepared if a spouse is incapacitated or dies? Failure to share information can magnify problems in a crisis.

You just earned your first paycheck from your new college job and you feel like you are at the top of the world. Now you can finally afford that new outfit, a trip with your friends to the movies and the new gadget you’ve been eying.

Many people have lost their jobs in the last few months as the economy has turned sour. Scam artists are still fully employed, however, in good times and bad. In fact, The Ohio Society of CPAs warns that the threat of being defrauded by a con artist probably rises during a recession, as money becomes tight and thieves work overtime to get their hands on yours. CPAs caution against these scams – and offer advice on how to avoid becoming a victim.

At a time when your career is reaching a peak and you are looking ahead to your own retirement, you may find yourself in the position of having to help your children with college expenses while at the same time looking after the needs of your aging parents. Squeezed in the middle, you've joined the ranks of the "sandwich generation." It’s a challenge millions of Americans are currently facing.

The nation has been facing uncertain economic times for a while now, a fact that has had an impact on many Americans. That means that many families have had to tighten their budgets and cut back on some of their spending. As this occurs, kids may have a tough time understanding why their parents can no longer afford the toys, electronic gadgets, activities or trips that they want. Here's some advice on how to address the economy with your children.

Money issues are one of the leading causes of marriage stress. Making sure both of you are on the same page when it comes to finances before you walk down the aisle can help avoid problems once the honeymoon is over.