Dave Ramsey is known for stating that you shouldn’t borrow money, at all. If you can’t make the purchase with the income or cash you have then you can’t make the purchase. However, in our society, using credit is not just common it’s ingrained. Credit is used to make large purchases such as cars, houses, large appliances for the home or business, loans for education etc. I remember not…
Credit card debt is a major problem. The average American household has $15,270 in credit card debt. The average interest rate for a credit card is 14.95%, but we know the range goes up as high as 30%. Ouch. But you made a debt reduction strategy, you challenged yourself, and you paid it all off or are really close to paying it off. Congratulations! Are you resolved to stay out…
Some of you have asked so let’s talk about it. No matter how much your income, whether it’s $30,000 or $200,000, you have likely experienced financial hardship at some point. It comes in many forms. Perhaps you’ve had to file for bankruptcy, have had an unexpected financial disaster or emergency that wiped you out, or perhaps you started a business and are going through lean times. During and after financial…
Over 80% of Americans have debt: mortgages, car loans, credit card loans etc. You likely fall in that number and you likely want to pay off your debt. Whether you’re the type of person who is really good about making sure you pay more than the minimum payment every month or you’re struggling to do better with making the payments, most of us falter around the holidays and rack up…
In our society, money is necessary. Whether it’s something that you need or want, you need money to get it. In order to have shelter you’re likely paying rent or mortgage. In order to feed yourself and your family you need to purchase food and groceries. In order to get around you need transportation, whether you take public transportation or you drive your own car. Money permeates every aspect…
The past two weeks we discussed what credit is, how you build it, what is a credit score, and what affects your credit score. Now you know the importance of your credit history, what is on it, and how those items affect your credit score. So you may be thinking ok, what do I do if I have a low credit score or what can I do to raise my…
What is a good credit score? Last week, we talked about what credit is and what is a good way to use it. Basically any time you borrow money, you are using credit and creating a credit history. Did you look at those “innocent” store cards differently? Before any lender loans you money, they have to assess how likely they are to get their money back and how likely they…
If you’ve ever borrowed money you started a credit history from which your credit score is based. Most of us got that first credit card right before going to college or shortly after stepping foot onto campus. I remember getting so many offers for credit cards in the mail. You know when getting mail was so exciting because you never really got anything via mail (and you weren’t paying bills…
I mentioned my guest article published on Bobby Finance a few weeks ago and received a few questions about it so I’m posting it here to assist those with questions on student loans. I also want to add that you can also go to the site www.myfedloan.org to view and manage all your federal loans. Many of us have taken out student loans to finance our education. If this is…
Is there really such a thing as good debt? You’ve probably heard the terms good debt and bad debt, but what do they really mean? Can any debt really be good? Many use the term good debt to refer to a loan used to purchase something that will appreciate or increase in value e.g. student loans and mortgages. Subsequently those are the two largest causes of debt in the United…
