Hmmm.....do I have to report an ongoing Salary Advance Account?

[Krys]

I'm not sure about this one.

My husband has a Salary Advance Acct. through his Credit Union.
Every payday, he pays it off, and then takes out another one for the same amount. This will be ongoing until our finances are stabilized.
I should also mention that 25% of each loan is deposited into a restricted account, which I DID list under my bank accounts.

It's an actual account listed with our other accounts, but since it comes and goes every paycheck, I'm not sure how or if I need to put that down. Does that make sense??

It is an account, so should I list it with our Checking/Savings accounts, or would I list it as a debt? There is no way for it not to get paid because it is automatically drafted out of his paycheck.

[tcreegan]

Hi Krys,

It is an account, so should I list it with our Checking/Savings accounts, or would I list it as a debt? You could check with the CU, but it sounds like a line of credit. (Don't let the account # fool you, credit cards, car loans, these are accounts too)

AND, while you are chatting w/ the CU folks, try to slip in what is going to happen when the BK is filed. Sometimes they tie checking/savings acct to credit lines, when they get the Bk notice they freeze them all and use checking/savings to pay the credit line. Sometimes BK violates their membership agreement and ask you to take your business elsewhere. And plenty of times none of this happens, don't mean to scare you!

But definitely check with them, CUs don't play by the same rules a bank does....

Tom in Colo

Every payday, he pays it off, and then takes out another one for the same amount....that 25% of each loan is deposited into a restricted account, which I DID list under my bank accounts. ....wish I got 25% in my account....wife lets me have a $10 allowance...

[Krys]

Tom, as always, you give great advice. Thank you SO much for the extra tips!!