Are You OverExtended?

Are you managing your debt, or is it managing you? Practical guidance for managing personal debt and credit.

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  • Spending more than paying off
  • Trouble paying bills
  • Buying without down payments
  • Maxed out credit lines
  • Retirement not properly funded
  • No payoff strategy
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Recent Articles

How to Lower Your Credit Utilization Ratio Without Closing Cards
Credit Utilization Ratio

How to Lower Your Credit Utilization Ratio Without Closing Cards

Your credit utilization ratio is the share of your available revolving credit that you are using. Revolving credit includes credit cards and lines of...

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How to Lower Your Debt-to-Limit Ratio Without Closing Credit Cards
Debt-to-Limit Ratio

How to Lower Your Debt-to-Limit Ratio Without Closing Credit Cards

Your debt-to-limit ratio, often called credit utilization, compares the balances you owe on revolving accounts like credit cards with your total...

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Why Keeping Up Appearances Is Quietly Maxing Out Your Credit Cards
Conspicuous Consumption

Why Keeping Up Appearances Is Quietly Maxing Out Your Credit Cards

Conspicuous consumption is a fancy phrase for a simple habit: buying things less because you need them than because other people will see you have...

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Why Your Credit Utilization Ratio Matters More Than Your Credit Limit
Credit Utilization

Why Your Credit Utilization Ratio Matters More Than Your Credit Limit

Many people believe a high credit limit is the main thing that helps their credit score. It feels good to see a $10,000 or $20,000 limit on a card...

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Video

Consumer Credit Tips

Each video breaks down one practical way to get out from under debt and stay there — straightforward advice on credit, budgeting, and the habits that keep you from getting overextended again.

FAQ

Frequently Asked Questions

The most common examples are mortgages (secured by the house) and auto loans (secured by the vehicle). Other examples can include secured credit cards (backed by a cash deposit), and some personal loans that use a savings account or certificate of deposit as collateral.

Lenders look at your Debt-to-Income (DTI) ratio—your total monthly debt payments divided by your gross monthly income. A lower DTI (typically below 36%) shows you can handle a mortgage payment and makes you a more attractive borrower.

Secured debt is a loan that is backed by an asset, known as collateral. This collateral acts as a guarantee for the lender. If the borrower fails to make payments (defaults), the lender has the legal right to seize the asset to recover the owed amount.

Unexpected illnesses or injuries often result in high out-of-pocket costs (e.g., deductibles, copays, uncovered treatments), forcing families to rely on credit cards, loans, or payment plans to cover expenses.

An emergency fund is cash set aside for unexpected expenses. It acts as a financial shock absorber, preventing you from needing to rely on high-interest credit cards or loans when unforeseen costs arise, which is a primary driver of debt.