image image image image
Personal Debt

Are You OverExtended?

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.

  • Spending more than paying off
  • Trouble paying bills
  • Buying without down payments
  • Maxed out
  • Retirement not properly funded
  • No payoff strategy
Sign Up
image

5 Signs You're Financially Overextended

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...

Read More
image

Pay Off Debt

- 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 ...

Read More
image

Navigating The Financial Tightrope In Your 20s

Entering one’s twenties often marks the beginning of true financial independence, a period of exciting possibilities juxtaposed with significant eco...

Read More
image

Dealing With Healthcare Debt

Navigating the labyrinth of healthcare debt requires a unique blend of financial strategy and systemic understanding, distinct from managing other for...

Read More
  • Healthcare Debt ·
  • Diverse Credit Mix ·
  • Credit Utilization Ratio ·
  • Debt Avalanche Method ·
  • 40s ·
  • Credit Score Five Factors ·


FAQ

Frequently Asked Questions

Long auto loan terms (72-84 months) often lead to negative equity, meaning the borrower owes more than the car is worth. This traps them in the loan and can lead to rolling over old debt into a new loan, perpetually increasing their debt load.

Debt consolidation involves taking out a new loan (often at a lower rate) to pay off multiple existing debts, simplifying payments. Debt settlement involves negotiating with creditors to pay a lump sum that is less than the full amount owed, which severely damages your credit.

If you have not addressed the underlying spending habits that led to debt, or if you are considering high-risk options like payday loans or title loans, avoid credit tools. Instead, focus on budgeting, cutting expenses, and seeking nonprofit credit counseling.

Debt settlement severely damages your credit score. The strategy requires you to become delinquent on payments, which is reported to credit bureaus. Furthermore, accounts will be marked as "settled" rather than "paid in full," which is viewed negatively by future lenders.

You will typically be charged a late fee. After multiple missed payments, your account may be sent to collections, and the debt will be reported to credit bureaus, significantly damaging your credit history.