Finance is a serious matter, and everyone should know the basics. Yet most high schools don't require students to take a financial literacy class. As a result, students are understanding less and less about money, which is leading to a growing national debt. Without proper financial education, we can't expect things to get any better.more

Credit cards, auto loans, student loans, personal lines of credit, mortgage payments…it’s no wonder why it’s so easy to get into debt. Credit is such a necessity when it comes to owning a house or buying a car or an education. However so many of us miss a payment, and once you miss just one it’s so easy to miss more. Then before you know it collections agencies are calling and demanding repayment. We all know that the best way to stay out of debt is to pay our... more

Are you in the bottomless black pit of debt and unable to climb out? You’re not alone. Many Americans find themselves in debt every year, but on that same accord many are able to get out of debt and even improve their credit rating in the process using some of these tactics: Contact your lenders – Don’t be too prideful to ask for help. The biggest thing you can assume is that your creditors don’t care about you paying back the debt you owe. Actually they... more

While some pay opt for the path of shifting debt or debt consolidation to bring unmanageable debt under control, credit counseling may be an attractive option for some, depending on the circumstance. A credit counselor will work with you to bring your spending habits under control, and may also work with your creditors to negotiate better repayment terms. This may mean negotiating a lower interest rate, lower monthly payment, or even agreeing to a “settlement” payment that... more

You’ve missed your credit card payment yet again, and this month you might actually miss your mortgage payment as well. Then out of the blue you get a call from a collection agency. You’re horrified and you don’t return the call. Then suddenly letters start to arrive…first notice…second notice…third and final notice...You’re in serious trouble with collectors and you don’t know how to get out. Dealing with collectors can be a horrifying... more

A home is probably the largest single purchase that you will ever make in your lifetime. So it makes sense why many homeowners would look to their property ownership as a way to help them get out of debt. After all, your home is the most expensive asset you own, which makes it the best collateral you have. Now you can consolidate your debt via a home equity loan quite simply, and believe me lenders will offer it as the first solution if you own a home, or own a good portion of your home,... more

You have no bloody idea how it happened, but suddenly you are in debt. Sure you might have missed a few credit card payments, and because you were had money coming out of your savings to pay for your car loan, you bounced a payment for your student loan. However you had no idea it was so serious until you got that dreaded phone call from a debt collector. Now you’re afraid to answer the phone at home and at work, and what’s worse you’re receiving threatening mail and... more

Debt consolidation is simply that, combining all of your debts into one single debt. Theoretically, by combining, the new payment will be less than the sum of all the old payments, and will therefore be more manageable. It doesn’t always work that way, though. If you’re carrying a high level of debt, a lender may well grant you a debt consolidation loan, but only at a high rate of interest, and you may not realize any savings at all. You will, however, save money if you can... more

Don’t be swayed by the “non-profit” label of some credit counseling agencies. Non-profit is merely a different way of organizing a corporate entity, in reality, it means very little and offers no reassurance whatsoever as to the legitimacy of the organization. Whether your credit counseling agency is for-profit or non-profit is completely irrelevant. According to the IRS, some credit counseling agencies hide behind non-profit status in order to circumvent consumer... more

Having one bill every month instead of 6 sure sounds like a good deal doesn’t it? However when it comes to putting all of your debts under one lump payment called consolidation, you need to know the facts. Oftentimes debt consolidation offers a lower interest rate, but lower interest rates on a higher lump balance over a longer loan term (length) won’t necessary be saving you that much money over the long-term. That’s why I’d like to discuss the pros and cons of debt... more

The first and most obvious tip for trimming down debt is to spend less, and it’s the advice most counselors will start out with. Yet, this simple piece of advice is sometimes just too simple, especially if your income isn’t as high as you’d like and you’re already living on the edge. Many people that live frugally are still nonetheless in debt, and it’s difficult to trim down expenses any further than they already are. However, it can still be done. The first... more

“Consolidate with us and we’ll reduce your credit card payments to 0%!” “By consolidating your debt you’ll wipe out your credit debt permanently!” “Trust us, we’ll negotiate with your creditors and get you out of debt!” Consolidating your debt means that all of your existing debts and accounts – including your credit card debt, student loans, car loans, mortgages, personal lines of credit and other personal loans –will... more

Acceleration clause – If you default on your loan payment your borrowing agreement will state that the creditor can demand full payment on the balance of your loan. Additional principal payment – This tactic is used to pay a loan off more quickly when you pay more than the minimum monthly payment due. Adjusted balance – Lenders will do this in good faith and to keep good customers. They will charge interest on a loan is based on the amount owed instead of on the... more

The amount of debt you carry may seem manageable, and if so, you may not see any immediate need to reduce it. Nonetheless, debt reduction can always be a valuable tool. Even if you are able to pay your bills on a timely basis, carrying a high debt load can be dangerous, for several reasons. First of all, situations change. You may have to take off work, get laid off, or have an unexpected financial burden, and if you have a high debt load, that extra expense or reduced income may be just... more