Financial News Features

Howard Dvorkin, CPA, chairman of Debt.com explains, “If you get evicted, your credit score won’t take a direct hit, but the glancing blow will still sink you.” That’s because evictions go into public records, Dvoskin explains. “Many landlords now do background checks on their potential tenants,” he says. “Good luck getting that affordable lease if your new landlord finds that eviction judgment.”

“Debt that affects someone’s shelter and security, such as mortgage debt, should be looked at first,” said Howard Dvorkin, CPA, personal finance expert and chairman of Debt.com. “Credit card, medical and student loan debt can be looked at afterward.”

In an April survey of more than 1,000 Americans by financial adviser website Debt.com, 80 per cent said they have a budget. The survey found that 88 per cent of respondents who budget managed to stay out of debt. Users are not budgeting for minor expenses such as coffee shop runs, but are instead doing so for holidays and special events before time.

Howard Dvorkin, CPA, the chairman of Debt.com, says, “Paying rent with a credit card can either be profitable or dangerous, depending on your [level of financial] discipline. If you always pay your bills on time, then using a rewards card can rack up thousands of extra points per year. But if you carry a balance and sometimes forget to make timely payments, then you’ll end up paying steep interest on top of your steep rent.”

Make certain to stick to AnnualCreditReport.com, cautions Howard Dvorkin, Chairman at Debt.com. “Don’t Google it and click the first few links. You’ll be taken to websites that try to sell you financial services. The only place to get free credit reports is AnnualCreditReport.com,” he says. “Everywhere else is trying to mine your data or sell you something.”

View these lines of credit as a form of emergency cash, to be used primarily for home-related expenses or other emergencies, advises Howard Dvorkin, a certified public accountant and chairman of Debt.com: “Having the ability to pull equity out of your house at any time you want is concerning to me.” Indeed, your home secures this loan, so if you don’t repay it, you could lose your home.