Dept Management

Key takeaways Governments often borrow money to cover deficits when taxes and other revenues don’t cover expenses. The national debt is the total amount of money a country’s government owes to its creditors. A higher national debt can affect personal debt through increased interest rates, reduced benefit programs and potential…

Key takeaways Becoming debt-free starts by assessing your budget and determining how much you can realistically afford to put toward your outstanding balances. A proven payoff strategy such as the debt snowball or debt avalanche method can help provide a framework and keep you motivated to continue moving forward. Other…

Key takeaways It may be difficult to obtain a new loan after you enter a debt management plan, especially if you charge off some of your current debt. Many creditors report the details of a debt management plan to credit bureaus, which may impact your ability to qualify for a…

Key takeaways On average, men carry more debt than women across all categories, except student loans. The gender pay gap affects women’s ability to earn, save, invest and build wealth. Even though women spend less and carry lower debt balances, they still feel more financial stress than men. Despite attempts…

Key takeaways If you are willing to jump through a few extra hoops, you can use one credit card to pay off another. The most common strategy for paying one credit card with another requires a new balance transfer credit card. Be aware of balance transfer fees, which vary from…

Key takeaways Secured debt uses an asset as collateral to secure the loan, while unsecured debt doesn’t require any collateral. If a borrower fails to repay the loan as agreed, the lender can seize the collateral. Mortgages, home equity loans, home equity lines of credit (HELOCs) and auto loans are…

Key takeaways A balance transfer fee is what credit card issuers charge when you transfer debt, usually credit card debt, to another credit card. Balance transfer fees are typically 3 percent or 5 percent of the total balance you transfer to your new card. It’s difficult to negotiate or avoid…

Key takeaways As of March 2025, new federal rules will remove all medical debt from consumer credit reports, including unpaid balances over $500. Previously, medical debt over $500 could appear on credit reports after one year in collections, but this will no longer be the case once the rule takes…

Dealing with tax debt can be overwhelming. Whether caused by financial setbacks or errors in filing, owing money to the Internal Revenue Service (IRS) is a burden that requires careful attention. Ignoring tax debt can lead to penalties, interest and even legal actions such as liens or wage garnishment. If…

Key takeaways Using a personal loan to pay off credit card debt could be a smart move if you can secure a lower rate or are juggling multiple credit card payments Paying off credit card debt with a personal loan may not be right for you if you’re overwhelmed by…