All Debt Articles

Deflation is a word on the lips of more financial experts these days. The term refers to a fall in prices (despite no change in product quality or quantity) and is the opposite of inflation. But like inflation, deflation can have a devastating impact on individual pocketbooks and the broader economy. On the surface, deflation sounds great. Most consumers cheer when gas prices fall or Read more...

Here's another cause of our financial woes: testosterone. A new study, detailed online in the journal Evolution and Human Behavior, found that higher levels of testosterone correlate with riskier financial behavior. Men with more testosterone make riskier investments than those with lower levels. To be specific, men with 33 percent more testosterone than average invested 10 percent more of Read more...

What's the toughest money question? It's the one that can't be solved with a calculator, or even by a smart accountant. In fact, you may need the combined insights of a family therapist, psychologist and financial planner to find the answer when someone asks: "I need money. Can you help?" You want to help. But should you? And if so, how and how much? With millions struggling Read more...

Dear Bankruptcy Adviser, I have filed for Chapter 7 after failing the income test but passing the means test. I was unemployed for four months and have $85,000 in unsecured debt that I have been barely paying off, and $500,000 on a secured debt associated with a house in foreclosure. The problem is that for the last two months I have had a high-paying job. What are the chances that I Read more...

The world is full of don'ts. Don't run with scissors, don't wear seersucker after Labor Day -- and please, do not feed the bears. Some rules are designed to preserve social order by imposing stigmas on unseasonal attire while others are necessary to avoid potential stabbing or mauling catastrophes. All attempt to avert crises that may arise as unintended consequences of our Read more...

Breaking open the 401(k) plan piggy bank can be tempting if you're in a financial jam. And it appears that more Americans are giving in -- jeopardizing their futures to meet current financial needs. Several retirement plan providers, including Fidelity and T. Rowe Price, have reported increases in loans and withdrawals for 2007. Anecdotally, Bankrate has received an increasing number of Read more...

Just because you can, doesn't mean you should. The adage is as true for borrowing money as it is for poking yourself in the eye with a sharp stick. But, unlike eye poking, which has few benefits, borrowing has good points and bad. "Borrowing where you are not overextending yourself is good borrowing," says Patricia Hasson, president of Consumer Credit Counseling Services of Read more...

The terrible performance in the stock market recently has some very smart people thinking about violating some of the basic rules of investing. Here’s a question I got recently that makes the point. “Paul, with all due respect, although in most instances I would agree with you that it makes sense to eliminate credit card debt, paying it off at any cost and in all circumstances does not Read more...

With banks getting stingier about credit cards and home equity lines of credit, where should a consumer turn? Some might be tempted to crack open their 401(k) retirement nest eggs to find themselves some extra cash. Mix in easy access to that credit via a debit card and borrowers might think they're looking at credit nirvana. The money is there: 401(k) plan assets exceeded some $3 Read more...

Dear Dr. Don, We have 19 years left on our mortgage but we need to lower the monthly payments. My husband has retired due to illness. I'm still working but there's less monthly income. I have 11 to 12 years yet before I plan on retiring. We currently owe $197,000 at 6.49 percent on a fixed home equity loan. The home is currently worth about $270,000 in a lousy market. We have about $20,000 Read more...

Dear Bankruptcy Adviser, My husband and I were advised to opt for Chapter 13 bankruptcy to help us from going into foreclosure with our home. My husband has been out of work due to a disability and will not go back to work for at least a year and maybe more. We are already four months behind and we are preparing to lose his short-term disability. Even though he has applied for Social Read more...

Deciding where to go to college can seem like making a deal with the devil these days. You can obtain a premium education at one of the top schools in the world, but there's one tiny catch: You just have to give up your firstborn child and two appendages of your choice. Or live in debt -- forever! (Cue evil laughter.) Gary Carpenter, CPA, executive director of the National College Read more...

More and more teens and college students have credit cards. Like the population at large, some have good deals and some don't. Credit card companies target these groups because they are a fast-growing segment of the population and they have money to spend. So it's no surprise when a high schooler or a college freshman receives piles of offers. If you're a college student, or the Read more...

Ah, the freedom of college, where you can subsist on pizza and skip your biology class without the threat of parental retribution. But being on your own has its downside, too. Suddenly, you're paying some of your own bills. You may be taking on thousands of dollars in student loans. And you have to figure out whether your new Abercrombie jeans will push you over the spending limit on your Read more...

Doing good could catch you a break on your student loan payments. Recent college grads can cancel part or all of their federal education debt by working in public service jobs -- lower-paying professional jobs that serve low-income communities -- or by volunteering. Loan forgiveness programs are available to everyone from teachers to nurses to young doctors and lawyers to Peace Corps Read more...

Dear Dr. Don, I am 38 years old and joining the Peace Corps. I want to make sure I take enough precautions to preserve my credit rating and retirement account during the 27 months that I won't draw a salary. I don't plan to return to the economically depressed state where I live and I won't have a job when I exit the Corps. My house, with a current loan balance of $82,000, will be Read more...

One of the most depressing moments in your life is when you are trying to figure out how much money you are going to need for retirement and realize if you keep doing things as you are, you are going to have a (substantial) shortfall. A key reason you may be coming up short is that you owe too much money. We aren’t talking about deductible debt. (Your mortgage would be an example.) And we Read more...

See also: debt, money, retirement, vacation, work

How many credit cards should you have? Many people are afraid to have multiple cards. Some are afraid that they'll lose track of the different bills each month and fall behind on their payments. Others fear that the temptation of high credit limits will entice them to overspend. And some people fear that creditors, upon seeing multiple open credit lines, will be less likely to Read more...

There's a financial side and a human side to debt. The financial side is easy to quantify, and the numbers are huge. Americans are drowning in debt, carrying a record $972.5 billion in revolving charges at the end of 2007, according to data from the Federal Reserve. "The average household has $11,000 to $12,000 in credit card debt," says Christopher Viale, president and Read more...

Rewards credit cards can offer some pleasant savings that nonrewards cards can't. How much you'll make back depends on the card you choose and your spending. Before you shop, find out what kind of rewards card makes the most sense for you. Then you can start comparing cards on sites such as Bankrate, LowCards and CardRatings. As you examine different rewards cards, look for the Read more...