Unfortunately, while this approach might work initially,delinquent credit card debtcan become a major financial strain over time. Late fees, penalty APRs and accumulated interest can make the debt snowball, and if you're unable to catch up on missed credit card payments over the long term, ...
Cheryl Lock
Looking back, Nitzsche says that liquidating his 401(k) to pay off credit card debt is something he wouldn't do again. "It is so detrimental to your long-term financial health and your retirement," he says. Many experts agree that tapping into your retirement savings early can have long-...
Credit card issuers place a soft credit inquiry on your credit report when they check whether you're pre-approved. This doesn't affect your credit score. When you submit an actual application for a credit card, the lender places a hard credit inquiry on your credit file, which can impact ...
Each day, I can't help but ask myself: Why didn't I get a credit card sooner? I've been a debit card loyalist ever since I opened my first one at age 15 (with the help of my parents). At the time I needed a checking account to deposit the earnings from my first job: life...
There are a variety of ways to handle a credit card bill you can't pay. You may want to contact your card issuer to discuss potential options. The credit card company may offer you a payment plan or provide helpful information. Balance transfers might help move your debt to a lower-inter...
If you qualify for a low interest rate on a debt consolidation loan, or you transfer your debts to a 0% balance transfer credit card, you’ll save money on interest, which you can then put toward paying down your debt. Just make sure you don’t run up new balances on the cards you...
Consulting a business attorney or tax professional can help ensure compliance and minimize tax risks. Borrowing money from your own corporation allows you to collect more than your normal salary or dividends at a tax-free rate. However, you can't just take as much money as you want. You nee...
Manybalance transfercredit cards also offer promotional periods of six to 18 months for which they charge 0% interest on thetransferred balance. Of course, moving a balance from one card to another won'teliminate the debt. But it can help you pay it off faster—especially if you get a rea...
You could pay off credit card debt that carries a higher interest rate than your mortgage, particularly if your credit card balances are of a significant amount. The Bottom Line It's important to consider the interest rate, the remaining balance, and how much interest will be saved before ...