Everyday Cheapskate

Dear Mary: My boyfriend and I want to get married one day. However, I've come to the realization that he doesn't care about his credit. He has student loans, medical bills, utility bills and even letters from lawyers about bounced checks. I want to help him get it all straightened out, but I don't know where to start. He tells me that his bills won't affect me when we get married, but I am not so sure. Can you lead me in the right direction? — Kim, e-mail

Dear Kim: I'm glad you are asking these questions now, while you still have options. Your boyfriend is wrong. Of course his credit would affect you — and in a big way — should the two of you marry. Have you seen his credit report? How he handles his financial affairs affects his credit score, and I bet he has a real doozy. If you buy a house after you are married, the lender will average your two credit scores to see whether you qualify and at what interest rate. His poor credit will affect his ability to get a cell phone plan, buy a car, get auto insurance and even qualify for a job.

More than that, I hope you will consider what his financial immaturity and lack of personal responsibility mean about his character. You cannot change him, no matter how hard you try to straighten out his money problems. Only he can effect real change. Unless that change comes from the inside out, it will not be authentic or lasting. I am concerned that he does not share your basic core values, nor you his.

I hope you see this as a clear warning sign.

Dear Mary: I am about to receive $20,000 in two payments as a retirement incentive. I am almost 63 and still have a mortgage; we pay extra on the principal every month. I want to pay down the mortgage with this money, but the bank tells me we will have to pay a hefty fee to do that. Should I pay the fee, or is there another way to pay down the principal on our mortgage? — Shirley M., e-mail

Dear Shirley: I am assuming from what you say that your mortgage is subject to a prepayment penalty clause. That means that if you were to prepay any portion of the principal ahead of your payment schedule, you would be charged a penalty because that would deprive your lender of future interest. The terms and conditions of that penalty fee are spelled out in your mortgage document. I cannot advise you because I do not know the penalty fee structure. I suggest that you familiarize yourself with the terms to which you agreed and then get some wise counsel from an accountant or your tax preparer to weigh the pros and cons of paying the penalty fee now or later. In the future, never enter into a mortgage agreement that contains a prepayment penalty clause.

Do you have a question for Mary? E-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of www.DebtProofLiving.com and author of 18 books, including "Can I Pay My Credit Card Bill With a Credit Card?" To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.

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