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Start an Emergency Fund or Pay Off Debt?

Not long ago, I participated in a forum discussion: Debt Snowball vs. Emergency Fund. The premise is very simple. Should the person start an emergency fund while he’s still in debt? In this case, we are talking specifically about credit card debt averaging 15% in interest. In this article, we will follow this sample scenario: … Read more Start an Emergency Fund or Pay Off Debt?

How Does a 401(k) Loan Work, Advantages and Disadvantages

How Does a 401(k) Loan Work, Advantages and Disadvantages 8

Are you thinking about borrowing money from your 401(k) plan? Whether it is for the down payment for your home purchase, for debt payment, to fund your new business venture, or to cover your cash shortfall; borrowing money from your 401(k) is a decision that you need to consider carefully. Table of Content How to … Read more How Does a 401(k) Loan Work, Advantages and Disadvantages

myFICO Free Credit Scores Estimator: Estimate FICO Score

myFICO Free Credit Scores Estimator: Estimate FICO Score 21

In What is a Good Credit Score? post, I shared various ways you can use to get your credit score for free. I also mentioned the myFICO Free Credit Scores Estimator tool, which will give you a free estimate of your scores. The calculator asks you ten questions to come up with an estimated range … Read more myFICO Free Credit Scores Estimator: Estimate FICO Score

How to Calculate Debt-to-Income Ratio (DTI Ratio)

How to Calculate Debt-to-Income Ratio (DTI Ratio) 26

Debt-to-Income Ratio, or DTI ratio, is how a bank or lender determines what you can afford to borrow. It is a way to assess your ability to pay back the loan based on your income and other debt obligations. If your DTI ratio is too high, then you’re a risky borrower and may not qualify … Read more How to Calculate Debt-to-Income Ratio (DTI Ratio)

How to Pay Off Credit Card Debt in 7 Steps

How to Pay Off Credit Card Debt in 7 Steps 31

Being in debt is not fun. Unfortunately, many people do find themselves in debt, carrying a balance on multiple credit cards and loans. Even if you have a debt problem that seems insurmountable, you can eliminate credit card debt on your own without using a debt consolidation service. While I think the debt consolidation company … Read more How to Pay Off Credit Card Debt in 7 Steps

Dave Ramsey’s Debt Snowball and Other Methods

Dave Ramsey's Debt Snowball and Other Methods 35

Debt Snowball is a debt elimination strategy popularized by Dave Ramsey, a renowned debt and personal finance guru. Under this method, you reduce your debt by paying the minimum monthly payment to all accounts, except the one with the smallest balance, which you’ll try to pay down as fast as you can.   How the … Read more Dave Ramsey’s Debt Snowball and Other Methods

How to Choose the Best Credit Monitoring Service

How to Choose the Best Credit Monitoring Service 41

The financial world today is fraught with pitfalls. One of the biggest issues is your credit score. Lenders — and others — check your credit score regularly to see what sort of default risk you present. Your credit score is largely based on the information that is reported to the major credit bureaus, so it … Read more How to Choose the Best Credit Monitoring Service