Your minimum payment is meant to keep you in debt. A minimum payment is generally calculated as 2-3% of your balance, or 1% of your balance plus interest and fees. This minimum payment is specifically calculated to maximize the amount of interest you pay, and the length of your repayment. Keep in mind, the interest you pay is profit for…
The balance transfer game can be fun, until you lose the game. A credit card balance transfer is a common way of avoiding interest rates. This is done by frequently moving your debt to new sources, chasing low introductory rates. While this can be an effective way to avoid excessive interest rates, it can be equally dangerous. For consumers with…
Unsecured credit step aside, secured credit is here to help rebuild. Times are tough for the general population’s credit. Even those who enjoyed easy approvals and low interest rates in years past are starting to feel the crunch. The reality is, your credit card or other unsecured debt always catches up to you. When this happens, we enter a rebuilding…
Make sure your extra payments go to the principle and not the interest. In order to pay off your loan sooner, you ought to make extra payments towards your principal balance. Most people are not aware that extra payments do not always go directly to the principal, but are applied to the interest instead. Remember, the interest is the lenders…
If you’ve ever applied for a loan, chances are you’re familiar with the term “negative equity”. However, you may still lack a full understanding of exactly what it means. Secured loans are basically loans that use physical collateral to calculate the amount and terms of the debt repayment. Secured loans with negative equity An example of a secured loan would…
An introduction to credit card balance transfer. The average credit card debt in the U.S. is $5,331 on an individual level. But, if you’re new to the credit game, you’re not likely part of this statistic. For those of us that have been building and maintaining credit for a while now, we know there are some common techniques to keep…
Get to know your credit. In fact, become best friends. Whether you’re looking to improve your credit score, or building it from scratch, we’ve got some tips for you. Building and maintaining good credit is no easy task, but often times consumers are overwhelmed by the information they encounter online. A low credit score is not the end of the…
I’m good at making money, even better at spending it. Debt to income (DTI) ratio confuses a lot of people. Unfortunately, these people are often the ones in need of some kind of financial assistance. Many consumers aren’t aware of the simple calculation they can do to find their DTI, or the affect it has on their buying power. As…
Trying to borrow with bad credit? Not so fast. Many Americans are asking questions like, what is a good credit score or how to rebuild a credit score? Chances are if you’re asking these questions, your credit score could use some work. According to Lexington Law; 12% of the U.S. population has a credit score below 550. This group of…
I’ll pay more next month… When creating a budget, you’re told to keep your expenses as low as you possibly can, and it’s good advice. Unless of course you’re making credit card payments. Most people are tempted to make the minimum monthly payment on their credit card in an effort to offset other bills. In the long run this is…