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Managing Debt

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What Is a Mortgage “Suspense” Account?

If all goes well with your mortgage, your money will always go toward paying your balance, and you’ll never accidentally underpay or overpay your mortgage balance. But if you do happen to underpay or overpay, your mortgage lender can’t simply accept a partial payment or send you a refund check. Instead, your money goes into...

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Payday Loans: How They Work and Why They’re Usually a Bad Idea

When you need cash fast, a payday loan can offer you a way to borrow small amounts of money quickly when you’re in a financial pinch. Even with bad credit, you may be able to qualify. But these short-term loans are dangerous and come at a high price. Payday loans represent one of the most...

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What Is Deferred Interest Financing and How Does It Work?

Contrary to popular belief, it’s easy to avoid paying interest on credit card purchases. Simply pay your statement balance in full each month and, with most card issuers, that does the trick. Sometimes credit card issuers have special promotional offers, known as deferred interest financing. These offers give you a chance to avoid interest in another...

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What Is a Security Deposit? A Definition and How To Avoid Them

When people think of a security deposit, many associate it with renting a home or apartment. In reality, security deposits are used for many purposes, like establishing new utility services, renting a place for a getaway, and even car rentals. Security deposits are also associated with certain types of credit cards. Keep reading for more...

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Delinquent Accounts – How To Avoid Them or Handle Them if They’re Already on Your Credit Reports

Have you ever loaned money to someone you know? If so, you may have asked that person to pay you back by a certain date – either all at once or in a series of smaller payments. Hopefully, your loved one kept up the other end of the bargain and stuck to the payment plan....

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Charge-Offs: How They Work and How They Affect Your Credit

Whenever you borrow money, you agree to pay the credit card issuer or lender back a portion of the debt (plus interest) each month. With credit cards, you’ll need to make a minimum payment that fluctuates depending on your overall balance. Loans, by comparison, typically require you to pay a fixed monthly amount. But what...

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Mortgage Grace Periods and Late Mortgage Payments Explained

It goes without saying that always making your loan payments on time is arguably the most important rule for you to follow in order to earn and then maintain great credit scores. Late payments should be avoided like the plague. However, the subject of late payments and credit reporting, especially mortgage late payments, is often misunderstood. Here’s...

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How to Pay Off Debt: 6 Strategies That Work

In more ways than one, debt can be a four-letter word. When it gets out of control — whether from medical bills, shopping sprees, or unexpected emergencies — it becomes an albatross that affects your emotional and physical health. Although it might feel overwhelming, you can tackle any debt the same way: one step at...

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Paying Down Debt: 7 Tips and Strategies

One reason why debt can feel so overwhelming is that there seems to be so much of it! It’s like that crowded closet we don’t want to deal with. We recoil at the chaos and try to pretend it doesn’t exist. But debt – much like clutter – catches up to us eventually. Like a...

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