Recent interest rate cuts by the Federal Reserve have sparked conversations among potential homebuyers about whether now is the time to make a move. For those grappling with credit card debt or looking into personal loans, the outlook remains largely unchanged. According to financial experts, the best approach is still to tackle debt head-on with a structured repayment plan. A Growing Debt Challenge Americans are currently facing a significant credit card debt crisis, particularly among...
If you’re juggling credit card payments, it can feel tough to stay on track and get ahead. Through credit card debt consolidation, it’s possible to simplify the repayment process and merge multiple payments into one, ideally with a better interest rate. You do this by taking out a new loan. While credit card consolidation can be beneficial and may lower payments and the total amount of interest you owe, there are risks to consider. Below...
Earlier this year, I received life-changing news: my staggering $370,000 student loan debt was forgiven. For over a decade, this debt was a heavy weight on my shoulders. Seeing the enormous balance left me feeling sick every time. With a modest teacher’s salary, I had no idea how I’d ever pay it off. Managing monthly payments was a constant battle. A temporary break came during the COVID-19 pandemic, which paused payments and froze interest. While...
President Joe Biden has announced another wave of student loan forgiveness, with just a month remaining before his presidency concludes. On Friday, the administration confirmed the approval of $4.28 billion in student loan relief for 54,900 individuals under the Public Service Loan Forgiveness (PSLF) program. This initiative clears debts for government and nonprofit employees who make 10 years of qualifying payments. This new relief stems from recent improvements to PSLF, including a temporary adjustment that...
Credit repair is the process of rebuilding your credit and improving your credit score after it’s been damaged by poor credit habits, financial setbacks, identity theft, or credit reporting errors. While bogus credit repair offers are a favorite ploy of scam artists, credit repair itself is legal. There are legitimate credit repair companies that can help you, and there are steps you can take to repair your credit on your own. This article explains how....
Going through a divorce can cause changes to your finances, including a difference in income, expenses, and what you can save. It could also impact your credit score as you realign your existing joint accounts to reflect your newly single status. Key Takeaways A divorce may result in financial changes that can impact your credit score. Late or missed payments by your former spouse on joint accounts will negatively impact your credit score, so you...
When January began, I knew it was time to address something I had been avoiding: my credit card debt. When I finally totaled it, the amount shocked me—it was worse than I expected. I owed $29,357, and my monthly payments were edging close to $1,000. If I heard this story about someone else, I’d probably wonder, “How did that happen?” The truth is, it crept up on me. I wasn’t splurging on luxuries or living...
Inheritance can be life-changing. From paying off debt to investing in the future, it’s a financial turning point for many families. According to the Federal Reserve data, on average, American households inherit $46,200. However, this number is inflated by large amounts passed down in wealthy families. Here, we’ll get into the numbers and explore how inherited wealth can impact your financial planning. Key Takeaways Large estates (over $13.61 million in 2024) are subject to federal...
Since our founding in 1999, Investopedia has been one of the most popular online sources of financial definitions, analysis, and advice for tens of millions of people every year. Our financial dictionary is the foundation on which this site was built, and it has given us a profound insight into what topics, terms, events, and technology define the financial world. For every major financial event, headline, trend, or development, we have a definition or explanation...
Inflation has been front and center in the news throughout the past few years. You’ve probably faced it head-on every time you’ve gone grocery shopping or bought a cup of coffee. According to the 2024 study from the Pew Research Center, 62% of Americans saw inflation as one of the country’s top problems. While inflation may be painful for your wallet, it’s a relatively normal part of the economic cycle. In fact, experts like to...
