Smart Money: Credit bureaus responsible for reaffirming data

Bruce Williams is a national radio talk show host and syndicated columnist.

Dear Bruce: You have openly remarked that if false or inaccurate information turns up on a credit report you are to call the credit reporting bureau and request that the information be checked and, if found inaccurate, removed from your file. There is a specific term that you said should be used, but I am unable to recall the term. Could you please tell me? T.M., via e-mail

Dear T.M.: The term is reaffirm. When you write (and call) ask the credit-reporting agency to reaffirm the information, which simply means they are obliged under the law to contact the creditor who reported the information. The creditor has 30 days to report back this information. If they do not receive such affirmation, the law requires the agency to take the inaccurate information off of your credit report. If, however, the creditor does respond and says this is accurate, then you will have to take the matter up with the creditor.

Dear Bruce: A year ago I received a gift card for $110 from an electronics store. I have asked the store if I can get cash for it, but was told no. I doubt if Id ever be able to use it since I dont own a computer or any photo or stereo equipment. I had just purchased a new television before I received the card. I am a 60-year-old widow and could use the money for other needs. The card is good for a year from now. Is there some way I can get the money? E.D., Henderson, Nev.

Dear E.D.: If the people issuing the gift certificate choose not to give a cash refund thats the end of the story. The likelihood is that if you made an effort you might find someone that would like to buy it maybe at a discount for say $75 or $85. That works for everybody.

This is one of the reasons why I have continually advised against gift certificates.

Dear Bruce: We just refinanced the house at a lower interest rate on a 30-year term. At my age I wont live long enough to pay it off. I am on disability retirement. My wife is still working and will retire in about six years. We planned on paying off the house in 10 years, but it would really strap us financially. The payments are $531.98 a month. My wife wants to pay an additional amount on the principal every month, but Im told that if we try and pay it off early we will be house poor. I have spoken to my son and he is not averse to selling it if we die. What should we do? Reader, via e-mail

Dear Reader: I see no great advantage in you making payments ahead on your mortgage. Although you indicated that you are not going to live for 30 years, you may just fool them. I dont know why your sons input is even necessary. If something happens to his parents and there are debts to be satisfied and real estate that would cover those debts, where are the choices and whats the problem? If I were you I would continue to make the monthly payments and put aside as much as you can for your wifes retirement.

Dear Bruce: Ive been married 22 years and have three children, ages 12, 15 and 16. We both work and have an income of $65,000, but have $45,000 debt on our credit cards. We went into a debt-consolidation program and now live on a strictly cash basis. We simply do not have money for the kids college educations. Weve already refinanced the house, and Im looking for options. We think our daughter is college material. Glen, via e-mail

Dear Glen: Your kid, if shes college material, will go to college though maybe not the college of her choice, and she may have to dig a big hole regarding a loan. She may also start her college career in a community college where the expenses are modest. Not the best options from your perspective, but they are options. I see no reason for parents to impoverish themselves or borrow against their homes and retirement for a college education for their children. I think its great when parents are able to help, but you should not have a guilt trip if you are not able to.

Dear Bruce: My wife and I are both 57 and debt-free. Between retirement and a part-time job our combined income is $50,000. Our investments, including our retirement plan, are about $300,000. We are not concerned about leaving an inheritance and enjoy vacation travel. What would you suggest in terms of investments? J.M., Taylorville, Ky.

Dear J.M.: You guys have retired at a very early age, which is desirable because it gives you lots of time to enjoy yourselves. However, you are foregoing some of the prime earning years where your retirement income could be substantially increased. While the income described is reasonable, its not going to allow for a great deal of luxury vacation travel. Its not going to buy you many overseas trips or cruises. In terms of investments, you will have to determine what your tolerance for risk is. If the retirement account is doing well, leave it where it is. If you feel that you can do better, it can be rolled over into a self-directed IRA then you call the shots.