Industry News, Resources, and Useful Tips

Understanding Debt-to-Income Ratio The debt-to-income ratio is one of several factors that contribute to overall financial wellness. It compares your monthly debt payments to your gross monthly income. This ratio is significant because it can help you find peace of mind with your finances and make smart decisions when making big life decisions. In this…

Understanding the Effect of Student Loans on Credit Score If you took out loans to pay for your education, you might be concerned about how student loans affect credit scores. It’s true that student loans can impact your credit. However, responsible management of student loans can actually help you build your credit, while mismanaging loans…

APR Meaning and Significance What does APR stand for, and why does it matter regarding your finances? APR stands for annual percentage rate, and it’s a crucial factor when borrowing money or using a credit card. It’s a rate calculated based on a yearly cost and represented as a percentage. APR matters because it represents…

Credit vs. Debit: What’s the Difference in Accounting? One of the most important financial concepts to understand in accounting is debit vs. credit. Even if you are not pursuing a professional career as an accountant, these concepts are crucial because they impact financial record keeping and business decision-making. Knowing the difference between debit and credit…

How Do You Cash a Check? One of the most common banking activities that people regularly use is check cashing. But do you understand the various ways how to cash in a check and how to handle issues that may arise with check cashing? People often need to cash checks they receive from their employers…

Understanding Your Debt to Credit Ratio Your debt-to-credit ratio is the percentage of available credit you currently use. It’s an important financial metric to understand because lenders use it to determine how much you can borrow and your interest rate. Before applying for a personal loan, you can use a debt-to-credit ratio calculator to assess…

Introduction to Debtors and Creditors In financial relationships, people and organization’s roles are commonly split into debtors and creditors. In straightforward terms, a debtor is someone who borrows money, and a creditor is someone who lends it. Yet, it’s important to understand the key differences between a debtor vs creditor because their obligations differ based…

Understanding Unexpected Expenses vs. Overlooked Costs Even the most responsible and financially secure people get thrown off by unexpected expenses when they least expect it. Unexpected expenses are financial emergencies that arise without warning and that you couldn’t have seen coming. On the other hand, overlooked costs are more like recurring bills or seasonal costs…

Good vs. Bad Debt and What Debt Means for You Some people assume that all debt is bad and should be avoided at all costs. However, debt can be both good and bad because of how it’s handled as a strategic means to better financial health. For example, some debt has long-term financial benefits, while…

Understanding Debt Management and If a Debt Management Program Is Right for You Simply put, debt is money owned and an obligation to pay off funds to another person, company, or government entity. Nearly eight out of 10 Americans have some type of debt, and the average debt per adult is $66,772. The most common…