Achieving financial independence doesn’t happen overnight—it’s a journey. By changing some of the everyday decisions you make regarding money, you can create a great financial future.
Credit report bureaus are intentionally vague about how their credit scores are calculated. Because of this, it is impossible to know exactly how different types of credit activity will have an impact on your credit rating.
Not all debt is created equal. When it comes to debt that can put you in a financial hole and make it tough to climb out, credit card debt is near the top of the list.
For many recent college graduates, student loan debt can provide a rude awakening when you enter the working world: You’re able to seek out a full-time job and the extra income that comes with employment, but you also have to start paying back loans you took out to fund your college education.
Debt is involved in some of the biggest decisions and achievements in our lives. Taking out a mortgage, buying a new car, and using loans to pay for college are common ways people accumulate debt, but they don’t necessarily mean you’re mismanaging your money.
The average American household owes more than $137,000 in debt. If you’re in a similar situation, remember that it’s how you manage that debt that counts. Even with high amounts of debt, smart decisions and the right debt management strategies can minimize the impact of that debt and reduce how much you owe.
American consumers carry a lot of debt—about $38,000 on average, and that doesn’t include home mortgages. This debt often includes a mix of student loans, auto loans, and credit card debt, and if it isn’t properly managed, it can rack up high interest charges that dig your financial hole even deeper.
But if you’re dealing with high amounts of debt and have no plan to pay it off, there’s no need to panic. Debt consolidation can be a useful strategy for simplifying your bills, reducing the amount of interest you’ll pay, and putting yourself on a path to paying down debt.
Student loan debt has become a major point of concern for recent college graduates and their parents. Getting a college education is more expensive than ever, but many students feel that the career benefits of having a degree outweigh the high price tag. As a result, more college students are entering the workforce with entry-level salaries, owing tens of thousands of dollars in student loans. Though this problem is serious, it is not insurmountable. With smart financial planning and a disciplined approach, you can pay off your student loans, leave debt behind, and begin building toward your future goals.