Search Results for: debt

The Opportunity Cost of Debt You Are Holding Onto in Life

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Opportunity Cost - How Debt Is Ruining Your Life

The following is a guest post from the crew over at Kasasa, a financial technology and marketing services company for the banking industry. Kasasa provides local banks and credit unions with marketing, resources, and innovative products including free checking. If you haven’t checked out their services, I highly recommend you do so and find an institution near you that offers Kasasa’s free checking.  It’s hard to avoid debt. Without it, the idea of buying a home or going to college would be unattainable for many. Even the people who we see as successful or enviable most likely have debts in some form. So how can you utilize debt to grow your worth without digging a hole you can’t get out … Read more

5 Things to Do When Consolidating Your Debts to Save

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Moves to Make With Your Finances When Consolidating Debts

According to the American Economic Statistics Office, the average American had credit card debt of over $5800 in 2015, with households averaging over $15,700. These debts come from a number of different credit cards. With the debt coming from a number of different sources, the process of managing one’s finances becomes a bit more tedious. In order to make this process less tedious, people consolidate their debts into one. In some cases, debt consolidation would also come with lower interest rate. Another alternative is to apply for a loan with more favorable terms to pay off some more expensive debts. 5 Things to Do When Consolidating Debt Personal finance experts have varying views about using debt consolidation a tool for … Read more

Is it Ever Appropriate to Invest While in Debt?

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Is it Ever Appropriate to Invest While in Debt?

Should you invest while still in debt? When should you start investing? You may want to start investing despite still being in debt. Is it ever appropriate to invest while in debt? The presence of the word “ever” in that question should be a hint that the answer is “yes”. If you figured that already, then good for you and right you are. Is it Ever Appropriate to Invest While in Debt? But it’s a “yes” with qualifications. Investing while in debt should be the exception to the rule. There are, however, a number of exceptions, some of which we’ll talk about here. Investments that can be engaged in with skill, like binary options trades through Banc de Binary, are one … Read more

Which Is First: Paying Off Your Debt or Investing for Retirement?

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This question has plagued financial planners for years. Should you pay off debt, or should they start a retirement account first? This assumes that the same amount of money is involved in each transaction. We will use $5,000 for our examples. Below we will take a look at the pros and cons of each option, and give our opinion. Paying Off Debt First Paying off debt is a great way to use a lump sum of money. Being in debt can be burdensome to the individual in debt, and feeling like you are never going to get out can be awful. If you do not have a lump sum, you may want to consider a debt management plan to help … Read more

Dave Ramsey’s Baby Step 2 – Pay Off Your Debt With A Debt Snowball

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What is a debt snowball?

The second baby step in Dave Ramsey’s The Total Money Makeover is to pay off all of your debts except your mortgage. He recommends doing this by using a debt snowball. It is his baby step 2. When Dave Ramsey talks about paying off all of your debts except your home, he means precisely that, all of your debts. This is where you list all of your debts in order from the smallest balance to the largest balance. You should include all of your credit card debt, student loans, car loans, loans to parents, debt to the IRS, money borrowed from your parents or family, late payments that you still owe hospitals, and all of your other debts. If you haven’t read The … Read more

How Debt Can Ruin Your Retirement

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This is a guest post by Mike Egan who is the author of “Your Stronger Financial Future”. A recent article in the New York Times focuses on seniors who are considering mortgages on new homes when they retire. The article is a good summary of what seniors (or anyone considering a mortgage application) should expect and the specific items to have handy, such as proof of income and a good credit score. What the article doesn’t address is the question of whether a mortgage is a good idea, either for a senior (65 and older) or anyone else.  Think about this – no matter what the term of the home loan, or mortgage, you’ll be paying interest to the lender, plus … Read more