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

The Hidden Dangers of Home Equity Lines of Credit
Secured Debt

The Hidden Dangers of Home Equity Lines of Credit

When you own a home, it can feel like you have a safety net underneath you. That safety net is your equity, which is simply the difference between...

1 day ago Read More
The 30% Credit Utilization Rule Explained Simply
Credit Utilization

The 30% Credit Utilization Rule Explained Simply

If you have a credit card, you have probably heard that you should never use more than 30% of your available credit. This is called the 30% rule, and...

1 day ago Read More
How Big Should Your Emergency Fund Be?
Building an Emergency Fund

How Big Should Your Emergency Fund Be?

Unexpected things happen all the time. Your car breaks down. Your furnace stops working. You get hit with a medical bill. Without money set aside for...

2 days ago Read More
Using Your House as an ATM Is a Dangerous Way to Manage Debt
Secured Debt

Using Your House as an ATM Is a Dangerous Way to Manage Debt

When you fall behind on bills, it can feel like there is no way out. The credit card payments pile up, the interest keeps growing, and you start...

2 days ago Read More

Popular Articles

The Strategic Timing of Credit Applications
Strategic Credit Application
The Strategic Timing of Credit Applications
Understanding the 50/30/20 Rule: A Budgeting Framework for High Debt
Navigating Medical Debt: A Guide to Resources for Low-Income Individuals
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

Without understanding concepts like interest rates, fees, and loan terms, individuals may borrow money without realizing the true long-term cost, leading to unsustainable debt.

Living on a deliberate budget. This is the decade to move from vague spending to intentional allocation of every dollar. A rigorous budget is the essential tool for freeing up cash to attack debt, build savings, and secure your financial future. It's the foundation for recovery and long-term stability.

While paying more than the minimum doesn't change your current required payment, it aggressively reduces the principal debt. As the principal shrinks, so do the future minimum payments, steadily improving your PTI over the long term.

Paying with cash is psychologically painful, which naturally curbs spending. Credit cards decouple the pleasure of purchasing from the pain of paying, numbing the feeling of spending real money and making it easier to overspend.

A common and effective budgeting rule is the 50/30/20 rule: 50% of your income for needs (rent, food), 30% for wants, and 20% for savings and debt repayment. If your debt is significant, you may need to temporarily increase that 20% by reducing your "wants" category.