FAQ - Everyday Personal Finance Questions

Can My Wife’s Bank Account Be Garnished for My Debt?

The creditor can obtain a judgment against you or file a debt collection lawsuit if you have outstanding debt. The creditor can then try to garnish your wages or your account to try and retrieve payment for the outstanding debt. If the creditor gets a court order, they can even garnish your social security account to get funds to repay the debt, provided they follow the rules. The government can also get funds from the account to pay various debts, including child support and alimony. But can the creditor garnish your spouse’s account for your debt? Well, it depends. […]

Is It Worth Paying a Credit Repair Company to Fix Your Credit Score?

Credit repair companies help to fix your credit score in return for a fee. The companies can boost your credit score faster than you’d do yourself, saving you money in the long term. By fixing your credit score, the credit repair companies help you to start enjoying a better score. The benefits can include access to credit and lower interest rates that help you save money in the future. While there’re genuine credit repair companies, you should also be on the lookout for scams to avoid losing money or getting into other problems. What’s Credit Repair? Your credit score is […]

Can a Credit Card Company Take Your Social Security If You Have a Debt?

Are you overwhelmed by credit card bills? Probably you’re wondering whether a credit card company can take your social security benefits to pay off the debt. Here is some good news. Private debt collectors, including credit card companies, cannot take your social security benefits to pay off your loans. Section 207 of the Social Security prohibits private debt collectors or bankruptcy courts from accessing your social security account to take all the funds for paying your debts. Some of the rules that creditors must follow regarding your social security funds include: They cannot take all the funds from your account. […]

What Happens When You Stop Making Credit Card Payments?

Being unable to pay credit card bills is a challenge that many people face. It can be because of a layoff, a pile of debt, a medical emergency, or other reasons. Even if you face financial challenges, not making your credit card payments only makes things worse. For instance, you could face higher interest rates and be charged late fees, and it also takes a toll on your credit. When you don’t make credit card payments, the negative mark will remain in your credit report for seven years. If you fail to pay for a long time, your account may […]

Can you Get a Personal Loan if you have a Bad Credit Score?

A bad credit score should not deter you from obtaining personal loans. This article guides on extra steps to help you meet the criteria and even qualify for better interest rates. Confirm Credit Report and Scores The credit industry is ever-growing, with financial institutions more concerned about managing risks. As a result, lenders dig deeper to analyze and get more information about borrowers from credit bureaus and other sources. Even if the federal law mandates major creditors to issue a free credit report annually, it does not harm to check your scores from credit reporting agencies, loan statements, and other […]

How Do I Repair My Credit Score

Having a bad credit score comes with a lot of challenges, including; Not getting approved for a loan, apartment, auto insurance You have to put up a deposit for utility services such as electricity Paying higher insurance premiums Paying a high interest for loans that get approved Here 4 ways you can repair your credit score: Make payments on time Your credit history shows how you make payments. One way to repair your score is to pay your bills and debts on time. To help you do this; Make a list of all your bills Note when they are […]

Do Debt Relief Programs Actually Work Out?

Debt relief programs do work out. However, you need to be extra careful of scammers in the industry out to milk your last cash. Also, before you can sign up for a company, find out how much they charge and how they’ll help you with your debts. How the Debt Relief Programs Work Debt relief companies come in handy to offer you the breathing room you need to make progress on your debt payments. One advantage of working with a debt relief program is that the company can negotiate for you to pay less than you initially owed. Also, you […]

Does Debt Consolidation Affect Your Credit Score?

If you owe too many creditors, one creative solution you can use to deal with the challenge is debt consolidation. By consolidating the debts, you put the accounts in one place where you enjoy a low-interest window as you pay your debts. Debt consolidation can hurt or help your credit score depending on your choice of method and how you stick to your payment plan. But, even if debt consolidation hurts your credit score, it’s only temporary. You also have several ways you can use to lessen the negative impact of debt consolidation on your score and use it to […]

How Can I Put off My Debt When I’m Broke?

Having debts can be very overwhelming, especially when you are broke. Here are nine ways you can put off your debt: Come Up With A Plan Having a plan is crucial to achieving your goal. The plan should list all your debts and the order you want to clear them. Make repaying your debt a priority. Create A Budget Having a budget will help you: See how much you can put into debt payment What expenses you can reduce to be able to set off the debt Be financially disciplined because there is a structure on how you are allocating […]

What Does Debt Relief Mean?

What Does Debt Relief Mean? Sometimes, you may feel overwhelmed by debts, including student loan payments and credit card bills. Consider looking at your debt relief options if you’re facing such overwhelming debts. Debt relief tools change the amount of debt, interest rate, or terms to help you get back on your feet. It can also involve persuading the creditor to accept less than the full amount owed. The tools can take various forms and come with advantages and disadvantages. Before you start a debt relief program, it helps to understand its consequences. The Meaning of Debt Relief […]

How Do I Get Out of Debt?

Getting out of debt as quickly as possible gets you on the right path to proper financial stability. There are some effective tricks you can consider if you want to have more control over your debts. They include the following: Scale up Your Monthly Repayment Installments. Most credit card companies only demand 2% of the existing debt every month. Such a modest figure may sound appealing to card holders, but it does not prevent you from sinking into a debt cycle. Setting aside a higher percentage of your paycheck has more impact in reducing your outstanding debt. For example, using […]

Are the financial concepts used in personal finance the same as those used in corporate finance?

Yes, both personal and corporate finance is about balancing risk and return. The concepts are similar because a company cannot afford to lose money. However, a few differences influence the way people approach the subject and their answers to each other’s questions. Let’s look at them. Debt in Corporate Finance vs Personal Finance Debt in corporate financing means borrowing money and agreeing to pay it back over time, usually with interest. It could be a secure or an unsecured loan. A company takes out a loan to raise money for working capital. Debt in personal finance refers to the money […]

Do You Feel Grade School Teaches Enough Personal Finance Concepts?

No, because most millennials are in a bad financial state, with large loans and little to no savings. One possible explanation for this is a lack of money management education. What Is the Purpose of Personal Finance Education? Personal finance education aims to prepare students for a lifetime of responsible financial behavior. For an individual’s financial future to succeed, they must learn the fundamentals of budgeting and saving early on. Schools do not teach personal finance, which is a significant factor in why some people lack a firm understanding of their financial future. It’s also why so many people in […]

What Are the Most Important Things to Know About Personal Finance?

Personal finance is a never-ending journey. In money management, there is always room for improvement. Every step is a learning experience, and you should become familiar with a few facts concerning money. They include: 1. Learn to Accept Your Debt Accepting that debt comes at a price is just as vital as understanding the value of money and the necessity to pay for your financial goals. 2. Use Credit Cards There are many advantages to using a credit card. For example, the ability to stretch the expense of large purchases over a longer period. However, if you merely pay the […]

What Do Most People Not Understand About Money and Personal Finance?

Most people do not know what they’re doing with their money and personal finances. Personal finance is one of the most challenging aspects of life, and you find many people struggle with it. It’s not uncommon for people to not know what they’re doing with their investment or personal finance. Here is why: Part of the difficulty is that most people think it’s a complicated and challenging subject, while in fact, it isn’t. Managing your finances does not demand any special knowledge or skills. The problem is that many individuals lack or are too afraid to do anything with their […]

What’s The One Financial Lesson That Most People Learn Late in Life?

Most people learn about personal finance too late in life. The most common reason is that people don’t save or invest enough money. Below is a list of the most important personal finance lessons that people learn too late in life. 1. Learn to Save Money You must have enough money to get by in case of an emergency. Many people find themselves in debt because they haven’t saved up enough money. Avoid saving only for retirement. 2. Investing Is Not a Get-Rich-Quick Scheme Investing is a long-term process that requires patience and perseverance. The goal of investing is to […]

What Is the Impact of Personal Finance on the Quality of Life?

A person’s well-being is strongly affected by their financial situation. The capacity to decide about what you want to do; for example: Repair your house Use a mortgage to pay What timeframe it will take All of them are at the heart of personal finance. Another important aspect of financial self-control is the freedom to make conscious decisions about what you will do. The capacity to manage one’s finances is a crucial life skill. What you value as a person and a member of society plays a key role in making these decisions. What Is the Correlation Between Personal Finance […]

What Are Some Key Personal Finance Concepts to Understand Financial Freedom?

To be financially free is having enough money to cover your basic needs while also freeing up your time to pursue your interests. Here is the truth: Not everyone has the luxury of being financially secure. If you don’t save and invest enough money, you won’t be able to enjoy a steady source of income for your entire life. This kind of financial independence is only possible for those who begin saving early and spend less than they earn. The following are the most important personal finance concepts for achieving financial independence: 1. Investing in Your Future Investing in your […]

What Personal Finance Is and Why It Is Important?

Given that most schools do not include personal finance in their curriculum, it’s a good idea to go over it in greater depth. We know the study of how people invest their money and save for the future as personal finance. It’s significant because it establishes a framework for deciding and assisting you in making money work harder for you. What Is the Meaning of Personal Finance? Personal finance refers to all aspects of money management, including saving and investing. It includes: Insurance Tax and estate preparation Mortgages Budgeting Retirement planning Banking Investments Finding the best approach to make money […]

What Personal Finance Tips Do You Have?

1. Saving Money Is Challenging but Not Impossible Many people believe it is difficult to save money. If this is true, then most people who claim it are ignorant of math or have never tried. To save money, one must cut back on their expenditures. It’s a simple equation. However, most people cannot account for unexpected costs. Why? After saving money, most people spend more than they have. Some people may claim they do not have an emergency fund since they do not have a large amount in their savings account. Even though this is true, it’s best to look […]

10 Must Know Personal Finance Concepts

Many people disregard personal finance because of its complexity. The good news is that you can use the knowledge in this article to make improvements in how you approach your finances. Let’s dive in. 1. Know Your Expenses Budgeting starts and ends with expenses. How can you manage your finances if you don’t know your expenses? Keeping track of every dime that leaves your wallet is essential, and compiling your receipts each month is an excellent place to start. 2. Keep Tabs on Your Investments Your ability to make wise investment decisions influences a person’s financial well-being. Understanding your investment […]

What Personal Finance Mistakes Should Everyone Avoid?

Let’s start with the most obvious mistake; spending more than you earn. As long as you are earning enough money to cover your expenses, it doesn’t matter what you spend it on. But if your expenses exceed your income, then that’s when the money problems start to happen and spiral out of control. We’ve seen so many people make this mistake. They think that if they earn more money, they have to spend it all. There are a few simple things you can do to avoid this mistake. We’ll list them here, but you should also read our other posts here. 1. […]

What is Personal Finance?

Personal finance is a very broad topic, and there are a lot of ways to look at it. Here are some points that we’ve come up with: Money is a Tool You need to understand how the economy works in order to be financially responsible. And while this is generally not taught in schools, it’s important to understand that there is a relationship between your income and your spending. You need to keep track of what you spend and where your money goes. You should know exactly where every penny of your hard-earned money goes. This is the most important thing […]