Understand Why Minimum Payments Trap You in a Cycle of Perpetual Debt
As you scan your mail, it’s easy to quickly pick up or click on the important items in which to open. Yes, bills always make the list. You glance at each bill, look at the “amount due,” and schedule your payment. But the data is clear, more Americans than ever ...
What is Credit Counseling?
Been there, done that…AND that, about your debt on your cards. You made minimum payments for years, only to watch your balances grow. You’ve tried the snowball and stacking methods to eliminate your credit card debt, without success. Whether it is too much temptation, the lack of discipline, or the ...
Why Credit Card Balances Grow So Fast: The Power of Compound Interest
Borrowing money includes certain costs, which often include upfront fees, interest charges on the principal balance and a late charge if you miss a payment. What you might not expect are the hidden costs associated with borrowing money due to compound interest. What is Compound Interest? Banks set their interest ...
Why a Reverse Mortgage is an Expensive Way to Pay Off Debt
With retirement drawing near, Baby Boomers are seeking non-traditional ways to eliminate debt before entering retirement. Making minimum payments on credit card debt for the next 30 years is not feasible because it can significantly increase retirement income needs. One option, many seniors consider is a reverse mortgage. Unfortunately, using ...
Debt Settlement and Negotiation as a Debt Relief Option
Financial hardships don’t all come in the same form. Forced early retirement, age discrimination, and health can all influence your continuation in the workforce. Instead of a job loss, you may face underemployment or the need to take time off to care for a loved one. Whatever the case may ...
Should You Borrow from the Cash Value in Your Life Insurance Policy to Pay Off Debt?
Our strong economy reflects high consumer confidence, record low unemployment, and rising consumer debt. In March 2019, according to The Balance, consumer debt rose by 5% over the previous month. When you feel good about the economy, it is easy to rack up more personal debt because you are confident ...
What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
The phone rings. It’s a number you do not recognize. It’s probably another debt collection agency calling to demand payment. Why answer when you do not have the money to bring the account current? It is not good to avoid creditors because it could trigger lawsuits, which will make matters ...
Why Paying Off Debt with a Home Equity Loan is a Risky Strategy
Almost everyone has debt. You use credit to purchase a home, buy a car, pay for college, and make everyday purchases on a credit card. When credit card balances creep up to the maximum limits, and you realize making minimum payments on thousands of dollars’ worth of debt does not ...
Which Debt Relief Option is the Right One for Me?
The stress from carrying large amounts of high-interest credit card debt can make it feel as though an elephant is sitting on your chest. The balances grow each month, and so do your minimum payments. It feels as though you will never see the day when you are free from ...
How Does a Debt Consolidation Program Work?
Another month begins, and your debt balances are going nowhere. Making minimum payments has not made a noticeable impact. You still don’t have enough at the end of the month for unexpected expenses or enough cash to set aside funds for future needs. Something has to give. You do not ...
