This Week In Your Wallet: Credit Bureaus Agree to Major Changes
“Was that you I just heard on NBC Nightly News?” My pal Kathy asked me that question. She was cooking and not watching, but listening to the 6:30 p.m. broadcast. “It was,” I told her. (You wouldn’t believe how many people recognize me not by sight, but by overhearing a conversation. That’s what happens when you’re on in the background for years, while people get dressed in the morning!)
Anyway, yesterday there was big news on credit reports and NBC’s Tom Costello interviewed me for his piece. Actually, the biggest news in more than a decade. The three big credit reporting agencies – Equifax, Experian and TransUnion – agreed that bad medical debts wouldn’t be included on credit reports until after 180 days. This should go a long way to solving the problem where it’s the insurer, not you, late with payment. The agreement also improves the process for handling the errors on credit reports that plague one in five consumers. Now, actual trained investigators from the bureaus will oversee the process, which has largely been handled by computers. All in all, good news.
And while we’re on the subject of credit, let me take a moment to remind those of you who use credit cards regularly to be sure you’re getting all out of them that you can. And no, I certainly don’t mean by maxing them out. I’m talking about benefits and rewards. As DailyWorth points out, many people don’t take advantage of these perks, because they don’t know they have them. That’s understandable. Sometimes even the bennies get buried in the fine print. Spare yourself the squinting and check out the site’s list of your credit card’s best-kept secrets.
For example, purchase protection – a reason to consider paying for your next expensive, yet breakable item (i.e. cell phone, laptop or pair of sunglasses), with your credit card. Many credit card companies will double the manufacturer’s warranty for up to one year. That means you can say no to the sales associate’s extended warranty pitch without thinking twice. (Whew.)
Does “use it or lose it” still apply to you?
Just because some employers adopted flexible spending accounts with carryovers (accounts with the option to rollover funds to the following year), it doesn’t mean the funds in your F.S.A. will rollover too, which makes this week’s March 15 spending deadline an important one to keep in mind. You see, if your company doesn’t offer F.S.A.s with carryovers — or they do, and you didn’t opt in — then there’s a chance your account will be subjected to this Sunday’s “use it or lose it” cut off. In other words, if you don’t spend the money in your account, you’ll forfeit it.
As The New York Times reports, March 15 is the deadline for employees with F.S.A.s that offer a grace period for incurring eligible expenses for reimbursement. The deadline is usually Dec. 31, but federal rules allow your employer to extend the deadline if they choose. (This is not to be confused with an F.S.A. “run-out” period, which means you don’t have a grace period, but perhaps a 90-day period from the Dec. 31 deadline to submit receipts for medical expenses from 2014. You can file claims, not make new ones.) If you have extra money in your account, some eligible items you can buy are: eyeglasses, contact lens solution, blood pressure pumps, first-aid kits and sunscreen (with an SPF of 15 or higher). Items that aren’t eligible, for example, are over-the-counter medications, like allergy drugs and pain relievers. In order to get reimbursed for these latter items, you’ll need a prescription from your doctor. There’s still time, so double check your F.S.A. balance today and act accordingly.
Fingers crossed: 529 plan expansion possible
On the college front, 529 college savings plans may soon cover additional expenses, like computers, software and Internet access. On the back of President Obama’s controversial proposal to cut 529 tax benefits, the House of Representatives passed a more favorable bill that would make these plans more flexible. In addition to making the above items eligible expenses, the bill would allow 529 account holders to re-contribute money tax-free to their 529s — if the money is a refund from the school. For example, if the beneficiary has to drop out of school for a certain period of time (i.e. medical leave) and the college or university offers a refund, then he/she can reinvest it within 60 days of the refund date. What are the chances the Senate will give this bill a passing grade too? CNNMoney describes them as “fair.”
Saying ‘goodbye’ is getting easier and easier
Calling off cable isn’t for everyone, but with streaming alternatives — like Hulu and Netflix — easily accessible, cutting the cord has never been easier. Even if you’re digging in your heels because you can’t live without basic cable, USA Today says a new streaming service, Sling TV, may be a game-changer. It streams live TV from popular channels (i.e. ESPN, CNN and Food Network). A subscription goes for $20 a month. Right now, it’s invitation only. But (as they say in the TV world) stay tuned…
Have a great week,
Jean
