The landscape of personal investing has been profoundly transformed by the advent of exchange-traded funds, commonly known as ETFs. These innovative f...
Read More
In the intricate tapestry of personal finance, where wealth accumulation and debt management often claim center stage, insurance operates as the essen...
Read More
In the landscape of personal finance, the traditional pillars of a robust portfolio have long been stocks, bonds, and cash. While these assets provide...
Read More
Personal finance is the cornerstone of a secure and intentional life, far exceeding the simple act of balancing a checkbook. It is the practice of man...
Read More
Personal finance extends far beyond simply earning and spending money; it is the strategic management of one’s resources to build security and achie...
Read More
For many individuals, acquiring a vehicle is not just a convenience but a necessity, yet the financial path to ownership is often paved with debt. The...
Read More
Avoid turning to high-cost solutions like payday loans or title loans, as they create a much worse debt trap. Also, avoid closing old credit cards, as this hurts your credit utilization ratio. Most importantly, avoid ignoring the problem.
Liabilities are all your debts. This includes revolving debt (credit card balances), installment debt (auto loans, student loans, personal loans), mortgages, and any other money you owe, such as medical bills or back taxes.
People feel the pain of a loss more acutely than the pleasure of an equivalent gain. Using a large chunk of savings to pay off a debt feels like a loss of security, even though it is a net gain by reducing liabilities. This makes people hesitant to use savings aggressively.
A single 30-day late payment can cause a drop of 60 to 110 points, depending on your starting score and overall credit history. The impact is more severe for those with previously high scores.
Yes, medical debt is typically dischargeable in Chapter 7 or Chapter 13 bankruptcy, but this should be a last resort due to long-term credit impacts.