tonight it's plastic prison break. loans, skyrocketing rates. get ady to get free. welcome to the credit card clinic it is one sick sca crooks who s doctors on your dime. at least hospital visits posings me. i get stuckith a collectio bill. >> mak sure medical i.d. theft never happens to you. plus, michael jackson -- we heard a loabout his life and death but there are many lessons toearn from wha he left behind. what you need know about protecting your family and your money. it's all "on the money."

> i'm carmen wong ulrich. now, you kn, credit card companies are running against a g ticking clock. new regulation and continued drama up nearly record defau. but we are running against the crit clock of oss. loss of mone could be saving inead. loss of money that could b growing in savings and investment accounts d sometime, thgh, we areust eking by. i'm he to help you get outof credit card debt for good. the fastest, chpest and easies way. it is a plasc prisonbreak. welcome to the otm credit card inic. sandra in iowa, sandra, my girl, have you 32 grand in credit card debt. talk to me about it. >> cler: carmen, you know, i can hestly say this cdit card debis nothing to do with overspending. it ijust bacally me assistanting my son th his college expenses a ao every-day ving. at i'm hoping youan do,

carmen, shed lht so i know i'm not just n gointo sink to the bottom and helpme get out of the cred card debt and give me a road map a plan o action my ne-monthmergency zblund ds w much have you got in there now? >>aller: in my emergency fu, i ve $4600. okay. there's a start. at least it is mot ety. yohave a situation where you havechild support disappearing in september. correc >> caller: do. it is actually -- it will be reducing, carmen. currently $850 and itill go to $425. >> y still have fundsoming in thelp wh your son. w,ou did co-sign on his student loans, right? i did. know that's frowned on but really for his sittion, in ordero get the funding h needed and attractive interest rates he nd ad co-signer. >>ou know that is on you. onus of those student loans is on you let's take a look andddress the credit card situation first and see how wean help you with that let's assume that he will find a

and be able topa the debts. let'look at your house of cards. u actlly only have a coue of cards here with two very big balancesruing. $18, 000 and $14,000. your inrates are no bad. right? >> caller: correct. >> in the future, thesare- these wi change. correct? >> the one that' for $18,000 terms are met.s longs the but th other one will change from a 1.99% th january of 2010's paymt. my conrn is, carmen, you know, if i y to pay down the lower one, will the highe balance, 3.% will they then come back and change my terms payment? >> that is a ver good question because ally, they are anng a lot of things witho you asking or doing anytng these ys. zran, you know what, it is time to bring in our buddy the decrd iad doctor, cred credit.com. you saw sara's numbe.

what'ser diagnosis? she has would cards very high balances. very low rates right now. >> these intert rates have you are fantasti 3 opinion 99%, 1.99%, let'so this. let's make t assumption that they are not going stay that lo we know that they e not going to. the credit card issuers are hemohaging and looki ways to juice up and me much as theyossibly can out ofus. i feel your pain andear the fear in your voice about not wanting to do something tha- acts as some sort of catalyst for the credit card issuer to increase the rate off the 3.99%. ly have nereen any credit card agreement that actually penalizes t card holder for making additional payments. i don't know that woulbeny sortf violationf your tes. >> no. but to her point, though, they can change t terms and at in pot in time. you can'kind of try to play aheadf time with back in the day where weould do more and see where they were going and try hedge the bet there. sandra you kno you need a

paydown plan an got one for you. let's give thank you plan. you gave us your numbers and what you are paying now. and i know things are tight. right now we are gog -- where you areat, six yea, three nths, and $00or so in interest. ich actually that interests not so bad because those rates are so low. here's the thg. if you put and fd an extra $200 amonth, put it towardshe highest ratecard, 3.99% for now, ift changes, put the moy on the card with the hier rate, two years, ten nths, you will be done. $1300 interest. that wl save you three years and five month an $606 in rest. whato u think? that is wondeul news, carmen. >> the key here, i know you sa day-to-day exns.e rds for that's wt worries me becae youeally need to stop using those cards. stk to the plan. it will get you out. you have 21 grand, tote natal

credit card de. tell us about it. >> caller: wl, basically it is me and myhusband ande got into credird debt because of overspendi and shoppin we are trying to get back on track by payin off ou credit cards. my conce is he thinkse need to make purchases ateast once a month r the cards to stay open. n we just pay off the balans and leave the cas alone? is it going to ht u if we don't makeegular puhas? >> i he to say, you took your husband's advice and you ran with it. you have a lot of cards re. let'take a look at your hous of cards. we are taing about -- ten cards or so. lots of differt cards onhis repo. john, you kn, she's looking at huge aprs. 29.99%. we are seeing best buy. aot of cards. >> she has falle into the retail card tr someone convince you that you have to have a card om all the fferent retailners order to be able to op at that retailer. i think we have figured out that's not the case you know what? it is interesting. guess whosadvice correct, yours on your husband's? >> i think me.

f course you think. guess what. you are both right. believe it or not, you are both correct. you definitely want get these paid down but you do want to closthem and you don't want to leave them inactive for too long or the credit card issuer wl close th for. did y wait. i would be happy i her zale's, best bye sleepy's, if those get closed i'm fine -- youknow three t cards she nes. these are, as you called them, subpri cards. >> subprimcards. you know what? that doe't kilher will make her credit card stronger. the cards you mentioned also have a rept in credit limit. d with the zero bance sxans card still open, her credit score will bit from the unused lit on those cards. she doesn't have to go and use them all the time. you don't have to buy sothing at besbuy every onth. once year i -- >> iave so many cards on my edit repor 10,12. on canceled. some of th are retai cards. you don't use them and you rotate several on a monthly

basis for small eenses but your husband -- you don't need toe using all niece cards. let me tell yo if you can find a little extra money, you are going to see what we can do with this. let's give you your otm paydown plan your current plan, how much you e paying now, lit take y six yes and $7800 in interest. which is painfu my friend if you can find another $200 a month and stop using the cas, $200 a month, tohe highes rate card that you have, $29.99%, you will be don in two years, 11 months and y $3600 non. >> ierest much better. >> much better. i have oneven better for you. because with that yoare going to save three yrs and a month and fr grand hadin. that sounds ood. if you put $300 amonth towards it. it is going tohave off another year and almost another $1,00 >> okay. >> if that can motivate you, what do you thk? >> caller: yes. that sounds good. i want it downform one year

acly. >> okay, then. the lculations show -- yo have a total of 21 one year. that would takquite a bit with the intest rates. we are talng about $1800 month. >> she would have to g mega--aggressi. do you have thatisposable come atend of month, two and a month? >> no. probably more like $500. >> that's reat. $500, every $100 you ow at this will cut do tint you sxa down the timeou are in debt. you can put $500. my mtal calculator probably out in less than two years. >> belie so, ye >> absolutely. thanyoso much. >> caller: thank you. >> we have mike new york on the line. mike,ou are dealing with almost $16,000 inredit card debt you are really, really in a tough spot. because you lost your jo >> calr: that's coect. i got a new position through poor money management making my decision wasy heart itead of head. co-sign ad an for my older son, bribut managed tfa out college and i'm on the hook for that.

and then my wife quit work to go ck to school. and e became a nurse and she significantlyincreased her salary but we gothe school, her school loans, andhile she was off from work, my one credit card srt creeping up and we basically almost ran out cash. and my big concern is espially witheing o of work, my younger boy in school in los anles on a full scholarship, but he still needs support from me and i don'tant to jeopardize his education. >> yeah. mike, i tell you, i wouldn't want to jeopardize it but i want to take the load of your back. please try to get him to get a work study job, like idid. that's wt i did, go to the financial aioffice and say you are in a tough spot. yo dad lost job. ve me a work study j tt will help. th can be off of urg back. right now we have deal with you. let's take a look at your house of cards. yohave a couple of cards re. with very high balancesand $6,000 or so. your rate is not horrible.

13.99% is your highestrate. but, john, mike has lot of other debt this hisame besides the cards. >> i tnk it might have en a good decision at one time but has ce to hatim which is a bad decisn is this mortgage he has here and it is a 20-year mortgage. what concerns me with t -year mortgis you are paying less interest anday your home off faster. every ngle month, you are ligated contractually pay more of youroney towards the mortgage, lender,n order do so. >> mik when did you get the 20-year mortgage? >> approximately eight years ago. >> you are pretty ch in a it. it doesn't you know, if you were to really, really in a tit spot, if the income was not coming in, you were not able to pay you bills, it i one of those things you go and exten yourself and refinance into a 30-year. i hate for to you dothat cause you put so much effort into this 20-year. so many s in. i don't want to you do that. mike, here is th ing. first of all, we want to absolute look into getti jo hold on tohe cas you have. because you are unemploy. don't be too aggression bif

paying off the credit card. pay the minimum. once you getack to rk, here is what i want to youdo. right now withr current plan, it wil take you the long time, my friend, 15 years, one month and $9500 ininterest. too much. here's somethi to motivate you. only another $200 a month to your highest rat card and three years,ix months 300 in interest. what do you think? >> well, that's wt i'm going to trydo and worki with a woman now trying t find a job. i to getne as soon as possible. so i -- soun like a course of action that i'm going to pursue. >> yes. mine, mike, eer th thing. john, when yo-- when you don't ve the income, it is hard to gofter the debt. ke, when he gets that job, that is when he can go after it. >> this period of time now where he is temporarily unemployed, this is the one where you are treading water and requis you to make the minimum requid paymen to awful your credits. keeping th happy but not keeping them terribly happy. and once you get back into an employment positio then you can start with the aggression. where am iggressely

attacking is? >> mike, pay on time every time, sir, and you will be okay >> caller: okay. >> thank you so much for joining us. thank you, joh back afterthe breakh help with one more caller. if you need an appointment with your cret card clinic, walk-ins are welcome. do you hava stash of cash and need t know where is t best place put it? mail me and you can be on the show. th latest twist on identit theft. crooks posing as you at the hospital. >> i g stuck with a collection billnd i have to prove the hospital -- thos charges are not mine. >> we helphis victim back on track. whe can learn from mhael jackson when it comes to protecting your money and fami after you are gone i believe thre are still mysterie t world,

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> it is one sick scam. crcroo that s ste y you identit

pay forededic treatment leaving g yohuhuing from the hihi cost. u u hed ofididenty theft and woworrabout your asasc. bubut imagineomomeo pretendidin to be youunn the hospital. experts s s that medicical i.d. theft is on the sese. afaffeininat least a q quaerer a millioion ererans every year. wh a thief getstreatment, ththen sticksyou with thebill, ththe inisis re.. it happppen t to scott bennett. his f forroommate stole h h identity andanan up m mor than $20,000 in debeb at hospitalal more than 1,200ililes zbla from what i can tellll he h h made 2 hohoititalisits posing as m me d get stuck withth e collection llllnd i have to pveve to t the hohospalalhose charges a are no mimine >> ununli other rmrmsof identity theft,there are ferer protections s inplace. yoyou e left to untangle a web of lababs and bulance anddoctor and p phaacist billll ofoftefofor one hpipil ssta

takes myyhhou,, phonene calls toto collection o bling susupeisors. gatherining paperworkrk, m mini ports. it i is ryryfrustrating. it is like afull-time job. >> you just hehed d sct's oror he is s wi now.w. this has been ququit a btle for long timeme. have you b beeabableo get o o of is so r? > n it just cocoininuetoo on and on and o i haveven'een ablee veven stop the e peonon fm contitiining ing to the hospspit.. >> andhehen -- whahat other repercussions are there? you have a lot o of things happening t to uu not justt your credit or yourur identity.y. lots of other things gogg n.n. you ararbebein rejected for. >> yes. part of itss -- v verifficult to --f you wanttoto get a mortgage loaoan orr anything. because alallhihis uff shows myredit repororts so, the-- the employeyernd e e emoyment that i have, it is --- verytrict as s r r asour background andouour credit. . >> right.t. theninsurancnce,ereryou --

insurance e lilicy recently. > y. the -- t t l lif ininrance, it will affect thth.. i'mrerey suret t is affecting mymy auto andnd --omome insurar totoo. but they don't admit that but yet, when i look to apply for w w inrance, that's the first thing they look a a is the credt report. > wt t it that happened this week about fingerprinting? thth need your fierprints? i i d that a f feweeks go. hi to go to the lalal p pole departmementhere. get ngngerinted and thehen eyey sent it f fro theololic department to the facility out there, t theolole -- outthere. andbebecae he h -- hadad several crimes that he mmitted deder identity. okay. isis i very bad.. also, ott, you have been spending -- youu wk full time and you hahave a family but yoyu have beeee spending so muchimim this. about how muchch tee a wewe? w whe i havee several cas, several instances goingngnn ickesly spend 2 20 3 30 urs a weekekwoworkg on thesese. >> it is le a sononjojob.

>> yes. somemetis s is -- takes mo time than mymy job.b. >> we will helpp y with hat. joing us is pamdixon, exutive director of thewowod ivivacfoforu pa you are famililia th sct's story. but hs one of thousands abcbc news, right? yes. its -- it is realllly a tragege that's happening now. and so f f people are awareff th cririme and d w w it i imptsts every d ople. >> now, , yorganization recently completed study about folks whoo h havbeen a victim o memecal identity theft. > whave done a numberff stieies thiscrime. what we found t tha most people -- ey findut lee about this cme and thehenwhat happens is that i it justt simp ntntins. and peopop d don have a lo ghghtso acquire e thr r cords or c corctct tir records. and welso find thahat lot o o vivicts, very similar to scscot spend so much h ti fixingigi t e finance callide ofheir records and theynever aenend

gegettg g eir medical rececor fixed. and i is the mical records that rereal create a lot harm for opople cause you can get badad treatment, and alsls you u ha emoyability and insururabitity down the oad. >> we arare t ting carareof bot dedehere. soe have pam o ohe medical side. and alalso we b brohtht backuru crititoctor here to help o. so mucuch tthi john, has t -- affectctyoyour credit and let's take careeofof that becausecoco ntioned something v ver imimpoant. you look t to ee crcred.. he works for the federal rerve. >> yes.. scott works for ththeededer serve and as ----ss a rightt of employer, they h hav the ability y to do whahass called prpre-plploynt or continued employmentnt screeningwhwhic includes evevwing the c cret rerts. i have lookedd a h h credit rererts a ok, they are awash with collectitiss because of ths crcrinal who is following h him ararnd as scott bennett.. his fico scores that don't havee any directmpmpt on h employment, but t he mentioned momogage. anddomomeoers insurance. this is hitting g gunund ro on a

variety of frfron.. his fico scores are 18 and 6565. i didd simulations without t th collectitis.s. she over 800. he's's edit itit right no but he c c't takedvantage andnd eny y at he deserves as credit e eli con sirm b becsesef the e clections. s sco, did you know ttt? did you know you are credit elite? > well, i wawas guguri it wa pretty ghgh >> that's s whe e we want toget yoyou back to.o. we have tips to help p foss prent this kind ofhihingrom happening. yoyouaid that peoplpl tend to discover late e buthther are things you c can do now eveven yohaven't been a v vicmm to ta care of th and take c car of urself. > absolutely. the most iororta thing you can do right n isget a baseline of y yr r mecal records. believe it or not. whwh you need, when this ime happpps s iso be able to p pro thth t thi isn't y. and having theededal files that are pure and uunaltltated is jusust key to dogg that. the seconond ing i to c cal yor insurer, public or prate, and prctively request on a regegul

basis aa lting of a the benefitstshahat ve been paid in yoyourname. and this canan help youou find things early. d then fifilllly, you wanto correct t urur mical records afr r is happens to you.u. it c c taketime. but it isncncdibly important to do. >>scott, whato o yothink? i know -- you sent a a great ototo great photo of your son th piles o of medicalecords that you t.t. les. it s great. it will have all ofouourdoctors anand nsnsurers, have theyy bee helpful to y youitith ththis >> i scrutinized ery receipt i getroroy insnsananceompany to makeke se e ey are my charges. ii have even called -- i iadad a surgery done this yearar a and wa callining ee of the labs, they had my r rea information bb they also had ininfoatatn that s s no me. it was underer intnty theft whwhicisis sry it is all right there in o one place. >> you are very goodd with keeping the records andnd beses we f foryou. john, you haveve some veve good

ne f for scott so h cann get back the life h h deserveses. >> yes. you know,, this --- i veve an insisi r relionship with the company called identity thefef 911. i sisit t tir advisory y bodd and one o oththe ings that they do is to taff thenus of the consumer andthth theyy ta on all of the restoratitionorork themseselv.. 20, 3030 hours a a week that h s spending d dngng sething other an working a and spenenngng tim with his filily and being frustrated, , quee frankly, the are companies ththatilill this for him and it is v ver pensive. i i s s ab inform get it basically atatrereats because of the e egrious situauaonons see re. >> scocottyoyou e getting helel fofor free a no moref f is 20,0, 3030ouours eek. done. t thasounds awesome. has been something ththat have beeeetruggling with andnd veve talked to s so ny people over the years. anand one s s seed to be able toomomup with an zblans we have a couplele of answers foru here, scott. papa t tha you so much for yrr helplp o this. you guyuys ee keeping aye out

this. th i i a really horrrrib,, horrible crime.e. so let's hopefullyly d some work to make it g go away. ank you, scott. keep us post eded >> absolututel >> we will makaksusureou get the lp you need. thank you soso much, john. if you have money emergency, medical or herwise, we want to hehelp you out. call me or e-m-ml l me. you u ululd on the show. nenetwtwis in the oldld credit rdrd cpanies g gee wild. phphtotom edit cards. whwhatrereththey findndutut toghghs w extra. will be back with h evytytng you neneedo o kn. check ititutut. next, borrowing moneyrorom your retirement. dodo n take out lns frorom your 401(k). >> realize that now. >yeah. unfortunately.y. too late on thatt one. it too lee for thihicaller? find out in d dolr dilemma. later -- >> my vehiclee sold twtwo w wee ago, 111 years old. > mher with b w dreamams.

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need help improvingng your edit scscor call me e e e-ml me. you could be on the e sh.. you mo w wha time it . itss time t help s sveve your dodoarar ilemmas. anththon n newyork, what's youo dollar dilemma? >>aller: i have two 4 401) loans ththat tk out toouy property. can ii consolidatey 401(k) loan? isishahat e best thing to do? >> let's talkbout that prprerty ter. thth40401( loans are they with the sameeomomny and administrator? >>aller: yes. > ty are. they cocoul be consolidateded. you neeeed t to talk with y yrr adadmiststrar andf those 401(k)k)s b becse it is like - think o it as a credit cacard. two credit c car a at theamame

bank. have you two different raras. you u cagogo tk to the b ban an try g g them consolidide e it. however, m my ieiend anthony, d not tata o loans thrghgh y you 40k). >> i realize that no >> unfortunanate.. too late on thth e. thee o oer thing where a -- ere's thee 401(k)? where is i it vested? is it in company stock? >>eses >> have yoyou anangethat? >> y y, , i anged that. >> y h he. >> s.s. >> goodod. were y y w wating the show? yes.s. >> excecellt.t. talk to thehem, ask them ifhehe can lolor r th interest rateono thosose anans. >> ok. > seeff theycacado that and y y th back as soon as poibib. asap. ininhis jobmmkeket, you kww thatat iyoyou re to lose youou job, you have to p themback inull within 30 to 60 da >> s.s. >> s.s. be careful therere, myfriend. go luck. ev at's your dollar dilemma? c cler: hi there, carmen. myilillsre paid. i have $1$100a month left. i woulullilike to buy a condo

nte fe and rent it foror a a couple o of yessntil i nt it available full titime whatathohoul do i wiwith$1$170 extra a a month? >> well, letet m ask you a question. u have a couple ofofproperties. right? >>ight. >> h h any? >> caller: tw >> okay. and you he e lot o of e eitity ee propertieses which is grgrea >> how much caca do you hhe? caller: ,0,0. >> you a areeaeal estateeich an caca or. you nene t to ve more money. put more e moneaway to ototec ururlf. i knowow y a areoing to get clclostoto rirement. whwh d do u want to retire? >> caller: i i haven't w wked f over ten years.s. >> there u . i neneed tyoyo have morore cash hahand >> caller:r:owow mh? >> let's s sayomom livivin penses so you makesusu you can pay those mortgages you rerey have. ththe nknk igoing to want to see that. when you gooror another loan to t t th nexthome, which ihihi yomamay be a a little overextended.. do you have any otheher reretimt savings?s? >> caller: no. >> okay. that's the thing i wldldather yonot put everyryining in real

estate.. it is all yourggggs in ththat o basket i i those homes. i knowhehey bode wellor y.. you haveve l of eqequi. put money intntoomomhing pels p you work f f yourself. caller: yes. d do u have an llc? doouou he a a corporation -- a e you incorporated? c cler: no. >>f f yodo that, it will enable you have sep accountnt ththatouou c put money away to grow t-f-fe. for r u. anand osose -- the o oth homes at you have,he problbl i is thatat wheyoyopull the moy out andasash t, you are going to y on a lot on tax owes those. investment proropeieies. you w wt t to make sure to diversrsy y yoself and put meyey in thesep. >> okay. we have a facebebkk message frfm papaul here's what he asked me. i have money in my 40101(k) would love to o us and as a a w ymymt on a housese toto avoid taxes. how do i goabout ththat if i i doesn't wk,k, can i m mo the money toto a i. rfshg a.? i thinkyou are referring g o, firsrst ofall, it h to be your first home and n now first, pup

that in quoteses b becse that means you haven't owown a home n the past cplpl offyears. okay.. that's your home. $10,0000isis t limit you u can take out ofouour 401(k). it has to a app t t the pururch of t theomome. clclosg costs, dowown payment, that sort of ththg. leave e a paper traiail. that is h y youan get o o of the 10% tax penalty the on at 401(k). pa, , u also can,ofof coursrs roll that 401(k))nto another i.r.a. or a rototh. see if y you c do th, my friend. thank you for r ititin do y you have a a dollar d?d? u u st can't crack.. i wawa t to hear itit. fais join n our ceceok fan page. wiwi be thehere and i will see yothther ladies, come on, gals.. nextxteeeek dollar dilemma is a about you. it is lies night onndodoll dilemmmma xtxt saturday. call me or e-mail me, ladidies. xtxt,lessons learn to about what m micelel jkson left

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>>ou money watch, talk about michael jackson's estate has everything from his will to the guardianship of his children and shows just how important it is to have a pla in place. we he what you need to know outs wills and trust. so you can protectour family and your m. joining usow toiscuss alex us andttorney specializing in estateand founder of familywealmatters. we are getting tknow a lot about at is going on, multiple wills, you know, wheredo the kids go. so we can learn bit from what's happening. >> there are so manylessons, carmen. the biggest lesson are make sure you have a relationship with your lawyernd that's going keep ur plan up to date as things change your life and as ings change with your assets. make sure everybody knows where your estate plan documents are so it is not a secret. this does not have to be something you keep secre and make sure everybody knows where too if something happens to

you. make sur that you have gudi's names for your children and for the short term and the long term and you are t counting on the cot to decide who will raise your kids. >> a know, though so many people actually the majority americans, who need to have a will, don't have one. i did a shoutout ourfabook page. i want to see what the questions were. here is sothing that's very, very common from a t of fol and what's keeping them from ing. this a mes from cynthia. e writes omg, th creeps me out so much. as a mother of t beautiful kids, i often think what if something were to happe to my husband and me? whwould i trust to watch over my children the whole thi sms taboo. it is hard to decide who we should trust to mak sure our kids have what theyneed. as well as save for their future expenses and needs i wouldn't know where to gin. alexis, it seals like loof this is taboo and inertia. >>that's right. and omg is right. cause if you don't decide it ge -- gets left up tohe

court to decide. you don't want a judge tt doesn't know you making decisions abouwho would raise ur kids. wheneveralk to pplabout th and i say to them, who would a judge choose to raise your kids, they realize it is someone th would never want. yoha thebility to take control of this now and it is so easy and there are so man resources onhe interne now d just get it done a you ca go to nolo.com and kidsprotectionpl.com. many places on the iernet. it is preandeasy. there's no excuses ymore. >> y. there really are none. i know in the past ten years ago, it was harder and more expensive. now ere are options of all price ranges and thi you ou definitely get in place right way. especially the will and guardianship. he to ohio wre donna is on th money line. >> my question is about wls versus trusts and estates. i'm a single mom of two children under 18 and my husband diedix years ag unexpectedly at 38. i have a wil who shows who the kids are to supposed to goto

and who the ecutor will be. i ve spelled out in my will that my kids are to receive money at 25 years of age. i have investmenthat shows suppos to go to them. i don't know if ts is enough. how do i assure through my will that the money leave in their best interests rlly stays wi them upon my death? >> great question especially sie it is just you now. sometime as wills not enough. right? >> and in thi case, its absolutely not enough. if you have will, and no trust, it means everything is going to go to the cot process and be publicnd it is going to be more expeive and if your kidsannot beheeneficiary ofour investments, you retirement accnts, life insurance, theare not old enough. you nt to have a trust in place to me sure thathat is the beneficiary of your assets andhat your trust will say when your children receive those assets at 25. that's fine. you can sefrp it ou longer. somebody will be icharge of that mon and totally private

and get a trust and don't just >> if she didn't do that, she coul-- her estate cou end newspaper probate court and i could be public cord. and decisions could be made that are not the bes interest of her kids. right? >> itill end up in probate court. it will be public record. it will be expensive a it will be time consumerin and peoplehe had named to take ov will not be able to take over right waynd give the guardi to -- raing her kids the money they need take care of them immediately. a trust t way go in this situation. >> don a what do you think? can you get that living trust? >>if i have a trust, does that mean that i don't up wit an estate? don't end up in obate? what's that mean? >> right. if you have arust, what it meanis that nothing willo through erobatecourt and as long as yourssets are owned in the name of your trust, this the most importa part. is listed on yr house and on t the deed to your house and on your bankaccounts and your brokerage accounts as a

beneficiaries,ife insurance and your rement accounts. that is the way you are going the keep this estate out of probate. >>ake sure that you ha everythingut put i the trust name and not directly in you child's na. >> okay. thank you. thank you so ch. over to virginia wher eric is on the line. eric, tell us whas up. your question has to d with dates, rit? caller: yes, it is. actually, i'm calling because i created a rokable trust and in april of this year, i funded my cash account and myom and i also created -- made beneficiary to my retirement count and my suranc policies. however, shtly after creating the trt my fatherassed and he was listeas thexecutors and beneficiary. my queion is what's the best way to update the trust document or -- should i amend it or crte a new one and specifically because i'm -- assets actually refer to a specific dof the original trus >> yes. that's the thing. you have to create a whole new trt when you have the changes? or is thera way to amend it? >> you can just amend it if you

restate and it da new one, you need to keep the same dates the old one. i comeend you foraving a trust. ease get it reviewed by laer and make sure that it is exactly what you need and it is drafted the right way so you faly is not stuck in the d. >> thank you smuch for calling. ank you for joinin ustoday. now coming up, it is auestion i hear all t time for folks looking to end money on something eecially in this economy. do i deserve it? well, i have your answer right after this. i'm carn wongulrich with your on the mey dollars and cents. when it is about getting rid of your debt it is abou efficiency. stop charging. concentrate on wipe tougt debt with the highest interestate while payi minimums on all tackle the next e our lt. then the next. and the next. remember, whenou are done, p the former debdollars in the sa.

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>lelet'say youotot your eye on a new home, new car, a and a vacation and anythingiginghaha you spend d moyy on. e e ilt kicksin. in this economy, d i really deseservthth? if y you d desererit, h how do u

a abo buyingitit to make sensee for your momoy?y? new w onfofootot let's lilive a ttttle deboborainin texas wanantso o o if shehe derervesomething that i ululdn mind having eierer beforere wgeget thatat d remarks s hoararyou? talk too us. >> my husband andnd i i aren n lileleit of anargumumt.t. my h husnd and i are diligent savers and paid off t t our credit cards, two remaining wh $14,000 0 bancnce it andboboth ofof thehemwiwill be paid o in august. 33% of myy paycheck my tspp account. mymy husbandilill mama o o on hihis retirement c ctrtribionin september. we purchased a secondndomome dedembmberf '08. it was a repo andpupu $60 thousand dhoun and f fanance $52,000. wewe he $1000 in ourmemergcy fund.. we have two girlssn n a arenn college. and have got alall that tenen care of >> ddebahahyou are saying that -- i serve something. what do you thihink y deserve?

>well, seeing how w we keep vehihicl f f as long as wedodo, mymyehehic iusus sold twowo w we ago, 11 yeararsold. my husband's vehiclee w was 141 yeyes old before that. i think it is t tim at i observed a -- newar and ulul love have a a 28 bmwha-top coconvtitibl >> i wananonone,oo, deborah. i ntnt o with,oo. caller: for a trophy wifefe. >> that's right.t. lieneni looked at y yrr fifinces and your situtuatn.n. here is s ee thing. for most pplple, i ilways recommend, of cououe,e, have a nice bigigatat ergency fund. uu g gss le well belowouour memean right? compared to hohow chch money is coming in, you g guyon't need a lot of money to sustain y you lifestyle. >> exactly.. we have a home econd home that's purchased outright. valulu a at$$9800 a a receive ,200 a month rent that. that's going b bactoto pay forhe $60,000 we put downn o o a usus. likekeououaid we liveeell bebelo our mes.s. >> thehe paff is s re. here i is eething.

one more question f you. did d i hear that you want to p for the car in cash? >> caller:r: tt't'the cicice. if my husband w wts ay for the e ne---- re house w w purchaseseanand by decemberer o '09, i would like toake that extra mey and purchasee t the car. that's - that's where we are coming at odds. >> p payffff the morortgee on a home thatyou already 50% own, right? or the car. here's where i come down o on ts on drum roll, pleasas m my iends. derarah, you deservrveththat sw cocoertib convertible. hehe is the thing. i i diresearch for you. you know, you know, i a car girl. re is the thing. we f fndnd a bfofor u. this i isoioi to show y just what a gooood c cice you are making. it is not that y you reaeall dedesee this car butut you nn afrdrdhis car and if you are e going to buy a carar, yy aarar that keeps s smumuchf its vavau

328 right w straight off the lolot will ct t yo$50 something wi options. we f fou y y a 2008 withbobout 5050 mesesawayrom younn houston for $44,000. itasas aut 60 ouousa miles itit now, derarah, weooked for an '0'07. depreciateted $2,000. sohihiis a car thattolds its vavaee ememenusly. u u dotececsarily i think need to pay for tight cash. should you choooo do it you k ko that it isisoioingo tain a emendous amount of i itsvalue. atato you think? >> i tnk she i is yoyos.s. >> make sure, tnknk about it this way,ou deserveve it. i wouldn'tpupu all o of yr monon on the caor on the home. i would - -- nothing wrong if y could get t a great rate for rrrring. you hahaveolollaral here. if you will p pay i all o off m susu thatou keep yr cash so you can papay ososeorortges and

y y her debt.. no moree credit card debt. >> absolulute.. yes. no more c cret t rd debt. i will be hearinggrorom your husband d onon? he will be mad. possiblyly possibly. >> sometetim y yave to lili a littlele. you have been dngng e evething right. enjoy, dede. coming up,p, helpeped heravave $1$14,00 settling h her debt. then she wt and enent0000 on a purse.e. your reactions and my y reonon. takingts rightful ple

in long line of amazingg peorm. this is the new e-upe. this is rces-benz. you ve questions. who can give y the financial advice you nee where will yin the stability and rereces to k keep u u ead of this rapidly y evvivingorld?e these are tough questitis. that'why we brought together two othe most powerfulames in the industry. introducing morgan stanleys. here to rethink th management. here to ananerer.. your questions. momorg s snley smith barney. a new wewith oveve13130 ars of experience.ir

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last week you wched me do good ney mentoring. showing kim how to settle up with debt colors and stay fit. let's look at your total saving drum roll, pase. u saved $14,204. all on your own. that a lot money. i know wt you did withhe money. she bought -- tell uwhat you bought, my friend. >> a $400urse but was on sale. >> okay. this is we are going to talk to kim about that purse. well, that purchase uched a nerve because a lo of you were upset that not only with what she didut with the supped

savings i mentne folks like jeff who sent me this e-mail. she dn't save this money. somebo will be payingor it in some way and boasted that s he savings she boug a purs are you kidding me? what kind of lesson are we tehing? on tfacebook, liz nt me this message. kim settled r collections and bought $400purse? are you kiddin me? have a real problemith settling u bought the junk, taught to pay foit if and we wonr why the banks are in trouble. all right,jeff, liz and everody el out there. t me explain to u something here about collectionand debt. first of all,i, too, coletely gob smacked by the $400 purse purchase. i n'even spend that much on a purse. listen, understand the business, though. the businesstransaction behind it. the credit card debt, once it i sold to a cotion agency, it is written off. the credit cardebt no longer existso the credit card mpany. they sold it to collectionsnd about ten cts on the dollar.

so when it comes to paying the collection agency, anything that u pay tm over that cents on a dollar, that's pure profit for them. not the creditard company. not on what you ow. en and only then, when it is with collection do i recommend settling. if you settle th a credit card company, you pay taxes on the debt that forgiven and also, too, i believe you should pay off your credit cardbills. for kim,it wass to late. so hence, those saving agai i'm keeping up with her on that purse. holding r at task. thank you for wting. do y want facebookace time withe? joining your o official facebook fan page to signup. i'm in there every day. i want to see y there, too. "the suz orman show" is coming next. one of the most extreme cases of debt suze has ever seen. next week, dyou have a stash of cash? i need to know the best pce to put . call me. you coulbe on the show. check out tonht's web ext.

john is back to ow you how to pe withhantom credit cards another horror sto ofcard companies gone wild. eck it out. remember, if you mis ahow just want to catch a segment again, download full epides of otm. even if you download i nt to see you xt week "on the money." mr. evans? this is jace from onstar. have received an automat signal you've been in a front-end crash. do you need d he?

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