Credit cards can be highly beneficial to your finances because they allow you to have a cushion for emergencies, earn cash back, and build a solid credit history. However, if you get behind on your payments, recovery can be very challenging. Missing one or two payments may not seem like a big deal, but it is. The late fees are expensive and it immediately impacts your credit score.  How to get back on track after falling behind on payments If you are behind on credit card or unsecured debt payments, you should be proactive about creating a solution. There are programs designed to help cus ..read more

How Inflation will Impact Personal Debt  If you’ve been paying attention to the news, you know that the inflation rate in the United States is higher than it’s been in decades. Currently, the annual inflation rate for the United States is 8.5%. This is the highest it’s been since 1981.  It’s clear that inflation affects goods and services, but if you are trying to get out of debt, you may be wondering how inflation impacts personal debt. Inflation is the decline of purchasing power that a given currency has over time. The effects of inflation tend to be a rise in the cost of goods an ..read more

If you are carrying a debt balance, you may have considered exploring debt relief services. Debt relief companies negotiate with creditors to establish lower payments or better payment terms, on the consumer’s behalf.  If negotiated successfully, a consumer will generally pay back a fraction of the balance owed (principal and or financing costs).   However, with these kinds of benefits, you may be wondering how legitimate debt relief programs are. Firstly, when searching for a debt relief program, be discerning. Repayment of financial debt can be an arduous process, so it is imp ..read more

A debt-to-equity ratio is a way of measuring if a corporation or group is being financed through debt or owned outright by funds/assets. Debt-to-equity ratios are commonly used and referenced in the financial world, and as such are important to understand. Knowing what is good and bad when it comes to debt-to-equity ratios can help keep groups financially secure long-term.  Debt-to-equity ratios are calculated by dividing total liability (debt) by equity. A 1.0 or less is a safe or less-risky ratio to have. A number higher than 2.0 is thought to be less secure. However, a good debt-to-equ ..read more

If you’re interested in buying a house or purchasing a vehicle, then you’re likely familiar with credit scores. Your credit score estimates the likelihood of you repaying your debt, and for the most part, scores around 675 or higher or considered good credit. What does your credit score mean? Your credit score is a three-digit number between 300 to 850 that estimates how likely you are to pay your bills and repay borrowed money. Your credit score is developed based on mathematical formulas and past actions. While a credit score of 675 or higher usually indicates that you’re a good credit risk ..read more

Credit cards are great ways to build your credit score and have emergency money, but interest rates can be confusing and very expensive. Credit card interest mostly depends on how you manage your accounts. If your credit card has an annual percentage rate of 20%, it doesn’t necessarily mean you’re getting charged 20% interest once a year. Your actual interest rate can be higher or lower because it is calculated daily and is only charged if you carry debt from month to month. How to calculate credit card interest Change your annual rate to a daily rate. The first step to calculating your rate i ..read more

It is always a great use of time to review and analyze your personal finances. If you’re looking to start saving money or paying off debt, it is an absolutely necessary task!  Strategically reviewing your finances can become a very simple and stress free task once you know what to look for.  (i.e. where you may be leaving money on the table, when to cut back on frivolous spending) Here are four tips for strategically reviewing your personal finances. Be objective about your financial situation. The first step is to understand your situation. Take some time to collect all of the state ..read more

If you’re feeling impacted by a mountain of debt, debt consolidation may be a great way to lighten your load. Debt consolidation combines multiple debts into one single payment. In a good debt consolidation program, you’d be paying a lower interest rate on your consolidated debt than you are paying on the individual debt accounts.   Debt consolidation can help reduce the total cost of debt repayment by reorganizing, reducing and simplifying pay-off on multiple accounts.  There are a number of ways to consolidate debt. Debt consolidation programs are the safest way to repay debt ..read more

At the beginning of the pandemic, the financial markets saw a sharp decline in credit card spending. Debt was being paid off in a record-breaking fashion, due in part to the stimulus money being distributed. But now, almost two years later, debt is starting to creep back up again. Credit Card Debt Increasing as Lockdowns End Not all debt is created equally. Mortgage, car loans, and credit cards are vastly different from one another. The only thing they have in common is that they all have been increasing in 2021 after going down in 2020. Because of the booming housing market, the amount of mon ..read more

Contrary to popular belief, overwhelming debt is normally the result of a family emergency and unplanned expenses that spin out of control. Most people do not end up with significant debt because of an addiction to shoes, or the like. It can happen to anyone, at any point in time, and causes extreme duress in the life of the individual. In these situations, debt reconciliation is the solution! And, one of the most frequent questions we are asked about debt reconciliation is:  What happens at the end of the Debt Reconciliation process? Debt reconciliation, or debt elimination, is a method ..read more