Everyone knows credit card interest rates are high, leaving you paying thousands in interest as you whittle away at existing credit balances. What credit card companies don’t tell you is that you can pay more for existing debt if interest rates rise. The Federal Reserve Banks’ decision to raise rates in December 2015 hit your wallet in the form of higher interest payments. While your minimal payments may not have changed more of your monthly payment is now going towards interest, making it harder to pay off existing debt balances. Now the Fed is once again positioned to raise rates one or more times before the end of the year, leaving you with even higher costs.
Archive for month: October, 2016
Those nearing retirement can become prime targets for financial threats that may impact the quality of life during your senior years. Concerns include: outliving savings, maintaining your standard of living, and leaving a legacy for heirs.
Threats that could potentially redefine your retirement include the following:
The process of saving money for an emergency fund is rather simple: You transfer money into a savings account and then leave it alone. Automate the process and watch your money grow as time passes. There are a few challenges with this simplistic approach because it also means you must have additional money in your paycheck, or it comes right back out to pay a bill.
The benefit of building an emergency fund goes beyond having money in an account to cover an emergency or unexpected expense; accumulated savings also represents financial security and stability that most of us seek.
Student loan debt has become a financial crisis for millions of former college students. Debts balances have ballooned, and -quality jobs are not abundant enough for graduates to tackle student debt payments and other costs, like home ownership or starting a family. These debts are having a ripple effect throughout the economy.
The debt statistics are staggering: Currently, nearly 1.3 trillion dollars in outstanding student loan debt are spread among 43 million borrowers. The average debt held for 2016 graduates is $37,172, which amounts to an average monthly payment of $351. A staggering 71% of graduates carry student loan debt after completing school¹. As graduates struggle with payments, many return home to live or rely on parents for continued support, financially impacting both new graduates and those nearing retirement.
Laws are in place to protect consumers from inaccurate and fraudulent credit reporting. The Fair Credit Reporting Act or FCRA are the laws governing consumer credit files. The FCRA was written to reduce fraud and protect consumer privacy. Areas covered by the Act include: Reporting to credit bureaus, consumer access to records, rental histories, and information collection agencies use like credit bureaus.