Are you managing your debt? Or is it managing you? If you're stuck in a money quicksand trap, you may not even realize at first that you're in a financial predicament, especially if you're sinking slowly and have been poorly managing your cash for a long time.
Are you managing your debt? Or is it managing you? If you're stuck in a money quicksand trap, you may not even realize at first that you're in a finan...
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- Start by taking inventory of all your outstanding debts. - Look for ways to maximize your disposable income so you can put more money towards your ...
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Entering one’s twenties often marks the beginning of true financial independence, a period of exciting possibilities juxtaposed with significant eco...
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Navigating the labyrinth of healthcare debt requires a unique blend of financial strategy and systemic understanding, distinct from managing other for...
Read MoreGood Debt: Debt that invests in your future or builds assets, like a reasonable mortgage or student loans that significantly increased your earning potential (low interest, tax advantages). Bad Debt: Debt used for depreciating assets or consumption, like credit card debt from vacations or clothes (high interest, no lasting value).
Unpaid bills sent to collections can hurt your score, but paid medical collections are removed from credit reports. New rules also delay reporting medical debt to bureaus for 365 days.
As a temporary measure, it is often necessary. The guaranteed return of saving on high-interest debt payments (e.g., 20%+ APR) typically outweighs the potential returns of the market. You can resume investing with more power once the debt is under control.
If you are not already overextended, responsibly adding a single credit card can be a good way to build a positive payment history and establish a revolving credit account, thus diversifying your mix. However, you must use it sparingly and pay the balance in full each month to avoid new debt.
Yes. Aim for a small emergency fund ($500-$1,000) first to avoid new debt from unexpected expenses. Then focus aggressively on debt repayment before building a larger fund.
