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…
Credit reporting at home and abroad. A great deal of attention is put on the three-digit credit score that summarizes your creditworthiness. Have you ever wondered how the credit reporting system came to be? Or, what are the credit systems in different countries in the world? Do you need to rebuild credit if you move to a new country? Let’s…
Independence can be great, but not when you have to pay a deposit on everything! The task of landing in your dream apartment doesn’t end with just signing a lease notice, paying the rent, and shifting your things. You also have to set up some or all of your utilities. These include Electricity, Water, gas, sewer, and TV/Internet, etc. Are…
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…
It’s bad enough to worry about ONE credit score. There’s a three digit number that matters greatly to your financial well-being. This number can make or break a big financial decision, or be the reason for hefty deposits. If you haven’t figured it out by now, we’re talking about your credit score. First of all, your credit scores being different…
So you have student loan, and credit card debt. How to prioritize your debt. Debts of any kind have to be paid under the set terms in order to maintain your credit score. Unfortunately, the terms of the multiple loans don’t care much about each-other, or your wallet. Now, to prioritize your debt debts, you have to understand the types…
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…
You pay off a past debt, now you want the reward! Many people ask about the time it takes for their credit report to update once they pay off a past debt. If you’re anything like me, you wait a few weeks and then start checking to see if the derogatory mark has dropped. It can never happen soon enough;…
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…