Author name: Mike Peterson

Credit cards are useful tools – if used correctly. Unfortunately, it’s all too easy to find yourself in debt after only using your card for a short time. Why do people so quickly fall into credit card debt? Let’s talk about how to avoid these 6 credit card debt traps: 1. Not Having a Budget […]

If you have more than one credit card, you hopefully reviewed your options before choosing the one(s) that best fit your lifestyle. But you might not have considered just how many different types of credit cards are on the market today. Let’s consider the basics of 9 different types of plastic. The following three types

Whether you’re trying to build or repair your credit, you’ve likely heard that carrying a credit card balance will improve your credit history. Unfortunately, there’s just no truth to this. Come along as we bust this common myth and give you some better alternatives. Should You Carry a Credit Card Balance? On its face, it

You have a personal budget, right? If you answered “No,” you’re not alone… for better or worse: A 2020 survey by the National Foundation for Credit Counseling revealed that less than half of Americans (47%) use budgeting methods to track their personal spending. But if you’re serious about maintaining – or regaining – some solid

When you are trying to build or maintain your credit, it’s important to understand the difference between hard credit pulls and soft ones. It turns out that one type of pull will negatively affect your credit score for up to two years, while the other one won’t affect it at all. Let’s talk about the

It’s simple math: To save money, you need to spend less than you bring in. Unfortunately, this simple math isn’t always easy to figure into your life. If you’re like most people, you are burdened with some level of debt. And financial woes can be very complex. This article is all about easy, practical ways

As with most personal finance matters, refinancing your mortgage is an individual decision. If you’re considering a change, be sure to take into account all of your unique circumstances – don’t simply get hung up on rising or falling interest rates. There are important pros and cons to weigh before committing to refinancing your mortgage.

Ugh, hidden fees! They crop up everywhere and are seemingly unavoidable. Some of these charges are so sneaky that you might not have noticed them. Or they’re so small that you only realize they exist after they’ve added up over time. Let’s investigate some of the more common fees that creep into our lives –

It’s your big day: your wedding. It’s the symbolic “first day of the rest of your lives” as a married couple. Celebrate the way you want, but don’t start your union in debt. You’ve already established a budget. And you’ve set up a cool spreadsheet to track all your expenses to stick to your budget.

10 Signs of out-of-control credit card debt. Chances are, your reasons for getting a credit card were solid. Maybe you wanted to improve your credit score. Possibly you were looking for a financial safety net until you were able to build your emergency fund. But somewhere along the way, you began using the credit card

FICO is the most common scoring system that lenders use to determine your creditworthiness. This score takes data from your credit report and compiles five main factors to figure out your credit score: whether you consistently pay bills on time, how much debt you carry, how long you’ve held credit, your credit types, and how

When used properly, a credit card can be an integral part of your financial arsenal. The big caveat here is the word properly. Credit cards used improperly or recklessly can spell certain financial ruin. There are numerous ways to fall victim to this. One is to use your credit card in situations you flat-out can’t

4 Ways to consolidate credit card debt. Credit card debt consolidation is the process of combining multiple credit card balances into a single monthly payment. Consolidating your credit card debt can make payments easier and sometimes even cheaper. If you can score a lower interest rate, you’ll be able to reduce interest costs, make your

4 Tips for savvy credit card use. Your credit cards are an important part of your financial portfolio. When you use them wisely, they offer a plethora of benefits. You don’t need to carry around a big wad of cash, and if you use reward-based cards, you can earn some great perks. Also, you typically

Let’s face it: Debt has a way of creeping up. Small charges that add up over time or unexpected expenses can often lead to a mound of debt. This is particularly true during times of reduced income or unexpected job loss. Before we know it, our debt is out of control – and we have

When Wallis Simpson, the Duchess of Windsor, said, “You can never be too rich or too thin,” she was obviously not talking about credit files. In fact, a thin credit file is not at all attractive, especially to potential creditors. But how can you know if your credit file is too thin? It’s not as

Reestablish your emergency fund in 4 steps. Was it an emergency appendectomy that landed you in the hospital? Or burst water pipes that flooded your basement? Or a fender-bender that resulted in some costly repairs? Whatever the reason, you tapped into your emergency fund to pay the bills. And now your precious safety net is

If you have a credit card, you surely know that you receive a monthly billing statement with all the information you need to know about the current status of your credit card account. Whether it comes hard-copy in the mail or electronically via email, you’ll always get the same information from month to month. But

Too often, when faced with the need to make a major purchase, we find ourselves having to turn to consumer debt to fully pay for it. Due to lack of planning or unexpected timing, these one-time big expenses often end up costing big money for years to come. What is the point of shopping around

How debt management plans affect your credit: When it comes to paying off a lot of debt, few methods are as efficient and effective as a debt management plan. While it’s one of the more extreme measures, in many ways, it can also be a direct path to debt freedom. A debt management plan (DMP)

Let’s face it, life can throw some real curve balls. That perfect house you bought a few years ago may have started out looking like a dream come true, but now it’s turned into a debt nightmare. If paying the mortgage is keeping you up at night, rest assured that help is available. You don’t

Debt collectors are third-party businesses hired by creditors to collect unpaid debts. Some companies buy past-due debts from creditors or other businesses and then try to collect them. Say you have a past-due balance with ABCredit; they may hire PQRecovery to collect the debt you owe.  Debt collectors aren’t part of the company that extended

Bankruptcy. It’s not a fun topic of conversation, but if personal bankruptcy is something that could be in your future, it’s important to understand what you’re facing. The first thing to understand is that bankruptcy, as scary as it sounds, won’t leave you penniless. On the contrary – it can actually lessen what you owe.

Are there really hidden dangers of credit card debt? Credit cards are such a convenience. Don’t like to carry wads of cash? Forgot your checkbook at home? Need quick access to funds? No problem! That little piece of plastic in your wallet solves all those problems. But such convenience has a price. And across the

Debt-to-income ratio (DTI) is one of those financial terms that probably sounds vaguely familiar to you. You know you’ve heard it somewhere before, but you can’t quite remember what it is – or why you should care. The truth is, unless you have applied for a loan recently, you probably haven’t given it much thought

Need to reduce your debt? Don’t do this: We talk a lot about debt – particularly getting out of debt. And while we cover a lot of strategies that help many people dig out of a financial hole, it’s time for a frank discussion about a few schemes that don’t work for a lot of

Does this sound familiar? Every time you check out, the cashier at your favorite department store asks if you’d like to save 10% on today’s purchase by signing up for the store’s credit card. You perpetually turn down the offer because you don’t want to go through the hassle of the paperwork. But you remain

Student Loan Default Explained: When you took out your student loan, you signed a promissory note and entered into a legally binding contract promising that you’d repay your lender when the time came. Well, the time has come. Now, what do you do to make sure you’re holding up your end of the bargain? Perhaps

What are starter credit cards? In today’s economy, having good credit is about more than just being able to borrow money. In fact, credit checks are regularly required for lease approvals, with utility companies, and even as part of the job application process.  While most people know that credit scores are a factor in determining

Debt consolidation as a financial tool has been around in one form or another for years. While it may sound like a complicated industry term used by experts, it is actually a fairly simple concept for rolling multiple unsecured debts into one single loan for the purpose of debt repayment.  What Is Debt Consolidation? In