If you shop online, you’ve probably seen a buy now pay later (BNPL) service —like Affirm, Afterpay, Klarna or Paypal— during the checkout process. In recent years, these services have become incredibly popular. In fact, more than 45% of U.S. adults have signed up for at least one BNPL plan, and they’ve spent more than $20 billion using BNPL. But there’s a lot of risk involved with using these services. Here’s what you need to know. How Do Buy Now Pay Later Services Work? Each BNPL company offers something a little different, but they allow you to make a purchase now, and pay most of the bill l ..read more

Question: I’m looking for help to repair my credit. I made a mistake in joining a debt consolidation group and they have trashed my credit. Need to get it fixed ASAP! A: Dear reader, I completely understand your urgency in wanting to repair your credit, especially after you hired a company to do so, and it made matters worse. There are reputable credit repair services out there. Though, unfortunately, some operate unethically and do not have their clients’ best interests at heart. I am glad you have remained committed to achieving your goal through a different strategy. Just remember that anyt ..read more

Not all of us remember the 1980’s, but those who do might be experiencing some flash-backs, at least when it comes to paying for groceries, gas, or just about anything else. That’s because, as of mid-2022, inflation officially reached heights it hasn’t soared to since 1981. Even with unemployment down and income growth up, inflation is causing many households to feel like they’re further behind. In fact, a Moody’s analysis estimates that the average increase in household expenses is around $300 or more per month.  In our 2021 Financial Literacy and Preparedness Survey roughly a third of U ..read more

In order to help students and their families that may be facing financial troubles due to the COVID-19 pandemic, the Biden administration has announced that they will extend the federal student loans pause on payments until the end of August. This is great news because it allows borrowers a chance to save up more money for when it comes time to pay again. We always like to help our young people with their financial health, so we have some tips for how to prepare for when student loan payments restart later this year. 1. Make A Budget and Make Cuts The first step that you need to take is to cre ..read more

My husband got really sick in November…without insurance. The big bills are just starting to roll in from the dialysis center and soon the hospital. What do we do? We have insurance now, but that isn’t going to help with past bills.  Medical debt is a burden for many American families, especially in the absence of adequate medical insurance coverage. And although the prospect of dealing with medical bill debt is daunting, you have options to negotiate with the providers to get a reduced bill or enroll in an affordable payment plan. Review some strategies below to help you tackle your debt ..read more

My credit card account was closed 6 years ago. I paid a reduced payment at the request of the credit card company, but never missed a payment. Unbeknownst to me, they closed my other account. I can no longer make purchases, but I technically still have an account with them. When I went to have it opened back up, they said there was nothing that could be done once it was closed. I have a small balance left but will have it paid off very soon. Is it hurting my credit more now?  Creditors can close a credit card account without the user’s permission for many reasons and without warning. Gene ..read more

It’s no secret that money can cause stress in relationships. But military couples have a unique set of financial challenges, whether it’s finding work for a non-military spouse, having to pay for frequent moves, dealing with sudden deployment or otherwise.  According to our 2021 Financial Literacy and Preparedness Survey, military couples are unique in a few other important ways, too. For one, military couples told us that they’re more likely than civilian couples to discuss their finances with each other, and they have a strong belief in being honest with each other about money.  Bu ..read more

With so many payroll deductions, it is common for many people to feel their take-home pay is almost gone by the time it gets to them. You may have several options to maintain your take-home pay that go beyond changing your 401(k) contributions and W-4 withholdings.   Maxing out your 401(k) contributions  In 2022, the maximum annual contribution to a 401(k) plan is $20,500 if you are under 50 years old, plus a catch-up contribution of up to $6,500 if you are 50 or older. If you have enough cash to max out your annual maximum contribution, that is something you might want to consider ..read more

When you secure a business loan or line of credit, hopefully, you’ve already mapped out a plan for how to use the capital to strengthen and scale your business efficiently. If you haven’t developed that plan yet, don’t move forward with spending a dime until you do. Far too often do businesses tank because they’ve taken out loans or lines of credit they can’t pay back or used irresponsibly. The last thing you want to do is ruin your business credit, limit your financing options because of that, and stall your business growth. Instead, it’s best to implement a strategy like capital budgeting to ..read more