Building an Emergency Fund

Your Emergency Fund Is the Best Defense Against Credit Card Debt
Building an Emergency Fund

Your Emergency Fund Is the Best Defense Against Credit Card Debt

Unexpected expenses are not a matter of if. They are a matter of when. The car needs new tires. The water heater stops working. The dog eats...

1 month 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...

1 month ago Read More
Automating Your Emergency Fund: The Set-and-Forget Strategy
Building an Emergency Fund

Automating Your Emergency Fund: The Set-and-Forget Strategy

Most people understand that an emergency fund is essential. Three to six months of living expenses in a separate savings account can turn a flat tire...

2 months ago Read More
The Role of an Emergency Fund in Protecting Your Credit Score
Building an Emergency Fund

The Role of an Emergency Fund in Protecting Your Credit Score

Most people think of an emergency fund as a simple savings account for unexpected car repairs or medical bills. That is true, but it serves a much...

3 months ago Read More
Why an Emergency Fund Is Your Best Protection Against Credit Card Debt
Building an Emergency Fund

Why an Emergency Fund Is Your Best Protection Against Credit Card Debt

If you are a middle-class consumer with a steady job and a few credit cards, you probably think you have your finances under control. You pay your...

3 months ago Read More
The Emergency Fund as Your First Line of Defense Against Credit Card Debt
Building an Emergency Fund

The Emergency Fund as Your First Line of Defense Against Credit Card Debt

Most people don’t plan to fall into credit card trouble. It usually starts with something small and unavoidable. The car needs a new transmission...

4 months ago Read More
FAQ

Frequently Asked Questions

Add up the minimum payments for all your debts (credit cards, personal loans, auto loan, student loans, etc.) for one month. Divide that total by your gross (pre-tax) monthly income. Multiply by 100 to get a percentage.

No. Checking your own credit score is a "soft inquiry," which does not affect your score at all. Only hard inquiries from applications for new credit have an impact.

Seek help from a non-profit credit counseling agency (like NFCC.org) if you: Can only make minimum payments. Are consistently late on payments. Use credit to pay for essentials like groceries. Feel constant anxiety about your finances. They can provide free or low-cost advice and help you create a Debt Management Plan (DMP).

Nonprofit credit counselors, patient advocacy groups, and legal aid organizations can help negotiate bills, navigate financial assistance, and address collections issues.

In rare cases, providers or collectors may sue for unpaid bills, potentially resulting in wage garnishment or liens. Responding to lawsuits and seeking legal advice is critical.