CONTRIBUTING WRITER
| By Norman G. Grill
Paying off debt the smart way
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n today’s climate of economic uncertainty, being debt free is a worthwhile goal. Unfortunately, with mortgages, car loans, credit cards and student loans, for most people especially those of pre-retirement age this is unrealistic. Instead, it’s better to begin by focusing on managing debt. These tips will help you get started. Assess the Situation First, assess how much and what type of debt you have by writing it down using pencil and paper or entering the data into a spreadsheet like Microsoft Excel. You can also use a bookkeeping program such as Quicken or a debt management app such as Debt Manager, Debt Payoff Planner, or you can use Changed if you are only concerned about student loan debt. When compiling or entering your list be sure to Include every instance you can think of where a company has given you something in advance of payment such as your mortgage, car payment(s), credit cards (all of them), tax liens, student loans, PayPal Credit, and store payments or cards used on electronics or other household items such as Home Depot or Best Buy. Record the day the debt began and when it will end (check your credit card statements), the interest rate you’re paying and what your payments typically are. Next, add it all up. The goal is to break this into manageable chunks while finding
extra money to help pay it down. If you’re one of the millions of people who have lost their jobs during the coronavirus pandemic, many auto and student loan lenders, as well as mortgage and credit card issuers are offering temporary concessions. Before you make any payments, call or visit their websites to see what their policies are during the pandemic and whether there are options for deferral and other measures you can take. Identify High-Cost Debt Even if you haven’t lost your job or experienced sickness related to the pandemic, it never hurts to identify which debts are more expensive than others and pay them off first. Unless you’re getting a payday loan, the worst offender is consumer debt such as personal loans, auto loans and credit cards with high-interest rates. Credit cards are easiest to tackle so start with them: • Don’t use them. You don’t have to cut them up, but take them out of your wallet, put them in a drawer and only access the one with the lowest interest rate in an emergency. • Identify the card with the highest interest and pay off as much as you can every month and pay the minimum amount due on other cards. When that one is paid off, work on the card with the next highest rate. • Check your credit cards for bal-
ance transfer rates and transfer balances from higher interest accounts to a lower interest one. When you pay less interest, you can pay down your debt faster. The catch is that at the end of the balance transfer period (typically six to 12 months), the low or if you’re lucky, zero interest rate, reverts to a higher credit card interest rate. • Don’t close existing cards or open any new ones. It won’t help your credit rating and might even hurt it. • Pay on time, absolutely every time. Late payments even one can lower your FICO score. • Go over your credit card statements in detail and look for monthly charges for things you no longer use or don’t need anymore. • Call your credit card companies and ask them nicely if they would lower your interest rates sometimes it works. Income and Output Do whatever you can to retire debt, even if it means reevaluating your priorities and changing your lifestyle. Consider taking a second job and using that income only for higher payments on your financial obligations. Substitute free family activities for high-cost ones. Sell high-value items that you can live without. When bills come in never miss a pay-
ment. Not only are you retiring debt, but you’re also building a stellar credit rating. If you buy a house or car or rent an apartment, you’ll want to have the best credit rating possible. A blemish-free payment record will help. Besides, credit card companies can be quick to raise interest rates because of one late payment and a completely missed one is even more serious. Also, pay with cash. To avoid increasing debt load, make it a habit to pay for everything you purchase with cash or a debit card. Shop wisely and use the savings to pay down debt. If your family is large enough to warrant it, invest $45 to $60 and join a store like Sam’s or Costco and use it. Shop there first, then at the grocery store. Change brands for a better price if you have to. Use coupons and store savings clubs religiously. Calculate the money you’re saving and use it to pay down debt. Remember, every penny counts and even if it’s a small amount every month, consistently saving adds up over time. This column is for information only and should not be taken as specific advice. Always consult a qualified financial professional if you have questions. Norman G. Grill is managing partner of Grill & Partners LLC, certified public accountants and consultants to closely held companies and high-net-worth individuals, with offices in Fairfield and Darien.
Pelham attorney admits assisting sanctioned Russian oligarch BY BILL HELTZEL Bheltzel@westfairinc.com
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Pelham attorney who helped a Russian oligarch manage his U.S. real estate has pled guilty to conspiracy to commit money laundering. Robert G. Wise surrendered to federal authorities on April 25 and agreed to forfeit $3,771,728 representing illegal funds he handled for the oligarch. The oligarch is Viktor Vekselberg, a Russian billionaire who owns the Renova Group energy conglomerate and who was once ranked by Forbes as the 44th richest person in the world. Vladimir Voronchenko, a childhood friend and business associate of Vekselberg
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who lived in the U.S., hired Wise around 2008 to manage Vekselberg’s properties. Wise practiced from an office in Manhattan and frequently represented international clients “seeking advice on the purchase, sale and management of real estate matters,” according to a webpage that has since been taken down. He began practicing law in New York in 1968 and he has no record of public discipline, according to the New York State Unified Court System attorney online services. Vekselberg used shell companies to buy six luxury homes, including two apartments on Park Avenue, Manhattan, an estate in Southampton, and two apartments and a penthouse on Fisher Island, Florida. WCBJ
The shell companies made about 90 wire transfers totaling $18.5 million to Wise’s attorney legal trust fund account from 2009 to 2018, according to court records, and Wise used the funds to maintain the properties. In April 2018, the U.S. Treasury designated Vekselberg as a Specially Designated National. Unless authorized by the government, citizens are prohibited from dealing with him and he could no longer transfer funds or conduct business in the U.S. Wise knew that Vekselberg had been sanctioned and that he owned the properties, according to court records, but he continued to assist the oligarch by receiving about 25 wire transfers totaling nearly $4 million from international accounts con-
trolled by Voronchenko. In June 2019, for instance, Smile Holding Ltd., a shell corporation in the Bahamas that Voronchenko controlled, wired about $150,000 to Wise’s attorney trust account for maintenance of the U.S. properties. “Although the source of payments changed after the imposition of sanctions on Vekselberg,” according to a February indictment against Voronchenko, “the management of the payments remained the same as before.” Voronchenko has since fled from the U.S. Wise is scheduled to be sentenced in federal court, Manhattan, of Nov. 6. If he pays $210,441 to the government by the end of the year, the $3.7 million forfeiture will be considered satisfied.