Get smart with your money
Today’s top story: 3 steps to spring clean your credit card debt. Also in the news: Trading privacy for car insurance discounts, how to improve your 401(k), and 4 ways to get a low-interest credit card.
3 Steps to Spring-Clean Your Credit Card Debt
Spring is finally here.
Should You Give Up Privacy for Car Insurance Discounts?
Being watched for a discount.
How to Improve Your 401(k)
Dealing with limited options.
4 Ways to Get a Low Interest Rate Credit Card
Get ready to negotiate.
Today’s top story: Paying debt back home vexes expats. Also in the news: 6 surefire ways to delay your tax refund, can your employer cure your money woes, and how paying your credit card minimum puts you in a debt spiral.
Paying Debt Back Home Vexes Expats
When your debt follows you around the world.
6 Surefire Ways to Delay Your Tax Refund
Avoid them to get your refund faster.
Can Your Employer Cure Your Money Woes?
Debt solutions as employee benefits.
How Paying Your Credit Card Minimum Puts You in a Debt Spiral
Paying just the minimum won’t make a dent.
Today’s top story: Money mistakes even smart people make. Also in the news: 3 reasons to choose a college based in price, the pros and cons of moving abroad for health care, and which state has the highest average credit card debt.
Money Mistakes Even Smart People Make
We all make them.
3 Reasons to Choose a College Based on Price
Spend less time in debt.
Should You Move Abroad for Health Care?
The pros and cons.
Where credit card debt is the worst in the US: States with the highest average balance
Where does your state rank?
Today’s top story: Don’t let friends and family pick your financial advisor. Also in the news: A month with the 50/30/20 budget plan, what the confusing terms in your 401(k) plan mean, and a growing number of Americans have more credit card debt than savings.
Don’t Let Friends and Family Pick Your Financial Advisor
Due diligence is essential.
Budget Diary: Navigating Holiday Spending and Debt Payments
A month with the 50/30/20 budget.
What This Confusing Term in Your 401(k) Plan Means
Deciphering the strange terms.
A growing number of Americans have more credit-card debt than savings
And it’s getting worse.
Today’s top story: Furloughed workers face potential damage to their credit scores. Also in the news: A bill could expand the financial literacy of students, 8 budget types for businesses, and 6 practical ways to pay off credit card debt.
A big problem looms for furloughed workers — preventing damage to their credit scores
Another impact of the government shutdown.
Bill Introduced to Expand Financial Literacy of Students
Teaching more than just the basics.
8 Budget Types for Businesses
Different budgets for different needs.
6 practical ways to pay off credit card debt
Climbing your way out of debt.
Today’s top story: How to manage student loan debt without making it worse. Also in the news: How to get credit when you have none, why it may be time to stop itemizing your tax deductions, and the state most burdened by credit card debt.
How to Manage Student Loan Debt Without Making It Worse
Don’t let interest get out of hand.
How to Get Credit When You Have None
Starting from scratch.
It May Be Time to Stop Itemizing Your Tax Deductions
The standard deduction could be enough.
This state is the most burdened by credit-card debt
Is it yours?
Today’s top story: New scoring could help credit-shy millennials. Also in the news: Giving yourself the gift of a $0 credit card balance, 5 key steps to joining the 401(k) Millionaires Club, and why you should only share your credit card info at a hotel at the front desk.
New Scoring Could Help Credit-Shy Millennials
Introducing UltraFICO.
Give Yourself the Gift of a $0 Credit Card Balance
A gift with long lasting impact.
5 Key Steps to Join the 401(k) Millionaires Club
Starting early is crucial.
Only Share Your Credit Card Info at a Hotel at the Front Desk
Protecting your info during your stay.
Dear Liz: You recently said you don’t need debt to have good credit, but I was told that “credit utilization” — the amount of credit you use compared with your credit limits — is important. Paying off the cards each month means zero balances are reported to the credit bureaus and result in no utilization. Also, older credit accounts help scores, and my older accounts dropped off after a period of time, lowering my average age of credit accounts to four years. How can I fix this? Good credit doesn’t stay on forever.
Answer: It’s not true that paying off your cards results in zero credit utilization. The balance that the card issuers report to the credit bureaus is typically the balance on your statement date. You could pay it off in full the very next day, and the statement date balance would still show up on your credit reports and get calculated into your credit scores.
That’s why it’s important to keep your credit utilization down, even if you pay in full (as you should). It’s good to keep charges below about 30% of your credit limit. Below 20% is even better, and below 10% is best.
Accounts typically won’t drop off your credit reports unless they’re closed. Even then, the closed accounts can remain on your credit reports for many years, contributing to the average age of your accounts. The key to having good scores is to keep a few accounts open and in use, not to carry debt.
Dear Liz: My ex-husband is a self-employed carpenter who just turned 64. He’s gotten a bit over his head with his credit cards. He tried for a home equity loan since he has plenty of equity and high credit scores. His mortgage lender says he doesn’t make enough money and that he needs a co-signer.
He owes only $50,000 on the house and needs about $40,000 to pay off his bills. Why should he be punished for working hard all these years? This is crazy and stupid. Is a reverse mortgage the way to go for him?
Answer: Possibly, but it’s concerning that he has so much credit card debt. Too often people who tap their home equity to pay off debt wind up worse off in a few years. They don’t fix the problem that caused the debt in the first place, so they continue to overspend — but now they have less of a home equity cushion to fall back on in case of emergency.
That’s especially true with a reverse mortgage. These loans allow people 62 and over to borrow against their home equity without having to make payments or repay the loan until they sell, move out or die. However, any amount they borrow and don’t repay will grow over time, typically at a variable interest rate. People who use reverse mortgages to pay off debt early in retirement can wind up unable to access their equity later, when they may need it more.
The lender isn’t trying to punish your ex for working hard, by the way. It’s saying he doesn’t appear to have enough income to pay his mortgage, cover the new loan payments and take care of his other bills. Your ex may think the lender’s standards are too strict, and it’s true many lenders are more reluctant to lend to the self-employed. He may find another lender that’s more cooperative if he shops around. But that huge amount of credit card debt indicates a serious problem that needs fixing, and another loan may not be the answer.
Since your ex feels comfortable sharing financial details with you, you might suggest that he discuss his situation with a credit counselor (the National Foundation for Credit Counseling offers referrals) and with a bankruptcy attorney (the National Assn. of Consumer Bankruptcy Attorneys). Each can assess his situation and offer different potential options he could consider.
Today’s top story: Employee loans as alternatives to payday loans. Also in the news: 3 savings strategies for holiday shoppers, the best Black Friday deals, and many people are still paying off last year’s holiday debt.
Short on Cash? Employee Loans Are Alternatives to Payday Loans
78% of working Americans live paycheck-to-paycheck.
Outsmart Other Holiday Shoppers With These 3 Saving Strategies
Your phone is your ally.
Best Black Friday Deals for 2018
Holiday strategies.
It’s the holidays already? Many are still paying off credit card debt racked up last year
It’s ok to use credit cards, but they need to be paid off promptly.