Author: Michael Peterson
How Credit Cards Become Debt Traps
It’s estimated that some 60 million American households regularly carry outstanding credit card balances. According to a WalletHub study, the average household’s credit card balance is $8,425. We know what this means: Carrying a balance (meaning you don’t pay off your total amount due every month) incurs interest (meaning you’re actually paying more than you owe on your card). But why are so many of us falling prey to this debt trap? By investigating five of the most common reasons why we accumulate those high card balances, in no particular order, we might be able to help you avoid this financial pitfall. Reason #1. Cardholders just pay the minimum payment amount. Typical credit card statements show several types of “amounts due.” When you’re submitting payment, you can
Guidelines for Spending on Your Mortgage
So, you’ve decided to take the leap and buy a home. Congratulations! But have you given some thought to what kind of mortgage you can afford? Think about the price of the home as well as the monthly payment you’ll pay to own that home. Banks take your ability to pay the monthly payment into consideration when deciding whether or not to grant you a loan. If you use the same principle that banks use to narrow your search to homes that you can afford, you will be one step ahead of the game. So how do you do that? Read on to determine how much mortgage you can afford. How Much Can You Spend on a Mortgage? Buying your dream home is a milestone in life
