The process of debt collection can be intimidating. The laws and your consumer rights may be unclear and the debt collector can be aggressive and insistent. You may have the desire to pay the debt but don’t know how you could possibly come up with the large amounts of money they are demanding. After all, if you had the cash laying around, the delinquent account would never have gotten behind and turned over to a collection agency in the first place. Read more
Debt has become so much a part of life that it is often viewed as a necessity. With costs rising faster than inflation, it is not hard to justify financing purchases. Consider 2015 cost of living numbers. The median price for a home is $213,800, the average car sold for $31,252, and the average cost for a year of college was over $30,000. These staggering costs are difficult to save money in a culture that wants everything today.
The truth is, carrying debt in any form has consequences. Wise use of credit will allow you to build wealth and grow your income faster than paying cash for items like a college education or a home. Leveraging debt for these purposes can have positive results.
On the flip side, there is the negative aspects of carrying debt, especially when it becomes more of a burden than a benefit. When you finance wants instead of needs, debt can take control over your budget. When you begin financing disposable goods instead of appreciating assets, you become a slave to debt payments long after the goods have lost their value. Read more
Your son or daughter graduated from high school and is heading off to college. They are in need of a car, and you feel this is an opportunity for them to establish credit in their name. The bank however, will only approve the loan if you agree to be a cosigner. Should you do it?
When asked to cosign a loan understanding liability and potential consequences is essential. It is difficult to say no to family members in need, but risking ruined credit or liability for a large bill should have you carefully considering this decision and if this is a wise financial move. Read more