Will Layaway Help My Credit Score?
Q: Can putting something on layaway hurt my credit score? A: I don’t see how a layaway plan can help or hurt a consumer’s credit — mainly because no credit or loans are being provided. With a credit card, you charge what you want, take immediate possession of the merchandise, and then pay the bill […]
An Easy Two-Step Process to Create a Basic Budget
Here’s my simple two-step process for creating a basic budget. It’s fast, easy, and anyone can do it. Step 1: Itemize ALL of Your Expenses Create a list of everything you spend money on—whether those expenditures are weekly, monthly, or yearly. Use different categories to group all your expenses. Examples of common budget categories include: […]
I Feel Like I’ve Lost Everything – What Should I Do?
Q: Two years ago I lost my job working at a New York bank making about $85,000 per year. Prior to my layoff, my financial situation looked something like this: Assets Savings of about $18,000 $60,000 in my 401k A $400,000 house with $170,000 in equity Liabilities A HELOC for $25,000 at 5% A $488 […]
How to Make a Budget Work after a Financial Downfall
Whether you had to deal with some unexpected medical bills, maxed out your credit cards to cover expenses, or faced some other type of financial blow recently, it’s time to rework your budget. Managing a budget after a financial downfall can be tricky, especially if you are strapped for cash and used up your emergency […]
Is The Credit Score Industry Fair to Consumers?
In my latest book, Perfect Credit, I explained that the credit score industry prefers to work together—without you whenever possible. I’m not saying that they have no need for you or that they don’t want to have some dealings with you. After all, consumers provide valuable feedback and constitute a revenue source. And companies in […]
5 Tips to Save on Thanksgiving Travel
Even though you can find some great deals on last-minute flights about a week before Thanksgiving, it may be challenging to find a flight that fits your schedule. Thanksgiving week continues to be one of the busiest travel seasons of the year, so it’s in your best interest to plan ahead and make those trip […]
Four Surprising Insights About Getting Out of Debt
If you have recently started on the long journey to improve your finances and get out of debt, you have probably hit a few real and imagined obstacles by now. Perhaps you did not get the raise that you were expecting, or even worse, you’ve lost your job altogether. Maybe you’ve been kicking yourself as […]
Should You Keep Your Long-Term Care Insurance Policy?
Q: A few years ago I bought a long-term care policy; it cost about $200.00 a month, which is a lot of money for my budget. A lot of people my age prefer not to pay for long term care, instead they expect government to take care of them. What is your opinion, please? A: […]
How Much Does it Cost to Get a Divorce?
Going through a divorce will not only take its toll on your emotions, but also on your finances. The high costs associated with hiring a divorce attorney and losses you might incur when divvying up your property and assets with your ex can have a negative impact on your financial situation. At the low end, […]
What is a Savings and Loan Association?
Many home buyers seeking a new mortgage turn to a savings and loan association (S&L) instead of a traditional bank to get their loan. Savings and loan association management are financial institutions that specialize in savings deposits and mortgage loans. These institutions typically work with private investors to coordinate funds for a loan. Since these […]
Reading the Fine Print Can Help You Avoid Being Suckered or Ruining Your Credit Score
Have you ever bought something or said yes to a so-called “deal” only to feel suckered later when you read – or were made aware of – the fine print involved? If you want to avoid getting burned, and especially if you want to maintain a great credit rating, you absolutely must abide by one […]
All Debt Is Not Created Equally – Why Credit Card Debt Wrecks Your Credit Score
Debt is a massive problem in America. While some people are able to survive in this economy by taking low-interest loans, we have to accept it that we’re up to our eyeballs in debt of all types: mortgage loans, credit card debt, student loans, automobile loans, and more. Even though home values have plummeted, the […]
What is a Credit Score?
A credit score is simply a three-digit number that summarizes your overall credit standing and tells creditors how likely you are to either repay a debt or default on it. A credit score is calculated based on the underlying information that is contained in your credit reports. But a credit score is not automatically included […]
Here’s How to Fix Your Defaulted Student Loans
Federal student loan defaults are way up – rising to 8.8% in fiscal year 2009, compared to 7.0% in 2008, according to new data released in September 2011 from the Department of Education. The numbers represent the most recent figures available about federal student loans, and they show that scores of borrowers continue to struggle […]
Quick Budgeting Tip: Use The 20% Rule to Stick to a Budget
In tough economic times, many people want to start budgeting – or better stick to a budget – but they find it hard to do so. Here’s an easy way to stay on track and maintain a realistic budget: use something I call “The 20% rule.” In a nutshell, the 20% rule says that whatever […]