using a home equity loan to pay off debt

Should You Be Using a Home Equity Loan to Pay off Debt?

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Debt consolidation is one of the most common reasons for obtaining a home equity loan. Home equity loans often come with much lower interest rates compared to credit cards and other sources of debt. However, tapping into your equity is not always the best financial decision. Here is what you should know before using a…
what is a balance transfer on a credit card

What Is a Balance Transfer on a Credit Card?

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A balance transfer on a credit card occurs when you move the entire balance from one credit card to another. You are essentially using a credit card to pay off another credit card. Balancer transfers are often used to consolidate debt or switch to a card with a lower annual percentage rate (APR). Here is…
how does getting an auto loan work

How Does Getting an Auto Loan Work?

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Buying a new or used car often requires an auto loan. If you have never applied for an auto loan before, the process can be overwhelming. You need to consider your credit score, the amount of the loan, and many other details. Here is what you should know before applying for an auto loan to…
how do loans work

How Do Loans Work?

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Close to 80% of Americans have some form of debt, from credit cards to mortgages and personal loans. However, the terms of the loans vary for everyone. The type of loan, your credit score, and many other factors influence your ability to borrow money. To avoid borrowing more than you can afford, learn more about…
how do credit card rewards work

How Do Credit Card Rewards Work?

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Between commercials, online ads, and credit card solicitations in the mail, you’ve probably already heard mention of credit card rewards. But what you may not know is how they work or why they are so incredibly beneficial.  The idea behind credit card rewards is pretty simple, and is very similar to other rewards programs you…
how does debt consolidation work pros and cons

How Does Debt Consolidation Work? (Pros and Cons)

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If you have debt, you’re not alone. As of May 2020, American consumer debt was $14.3 trillion. That figure includes mortgages, auto loans, card cards, and other outstanding payments.   One solution is debt consolidation using personal loans. Consolidating debt with a personal loan can simplify your payment schedule and — in some cases — reduce…
why you should pay off your debt aggressively

Why You Should Pay off Your Debt Aggressively

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Too much debt is the number one enemy of achieving your financial goals. Now, debt isn’t always bad — it helps people become homeowners, obtain a college degree, and start businesses. Many of us start out with a “just for emergencies” credit card that can be a lifesaver in true emergencies, provided we don’t let…
how using a credit card works

How Using a Credit Card Works

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Credit cards are a great way to make purchases easily, borrow money conveniently, and sometimes even earn money when you use them. But how does using a credit card work, and why are credit cards used? Here’s everything you need to know about how to use credit cards for dummies. No, we don’t actually think…
obtaining a home loan and how mortgages work

Obtaining a Home Loan and How Mortgages Work

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Most people understand that a mortgage is a type of secured loan that a borrower takes out to pay for a home or another type of real estate property, which serves as the collateral. However, a mortgage can be a complicated debt instrument. The 2008 foreclosure crisis is evidence that borrowers often accept the terms…
how credit works and how to build it

How Credit Works (And How to Build It)

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Whether you’ve taken out a loan or have a credit card, chances are you’ve used credit at some point in your life. But how, exactly, does credit work? What is credit? Yes, credit is what allows you to borrow money, but it’s also become much more than that. For better or worse, credit is like…
learning to use a credit card responsibly

Learning to Use a Credit Card Responsibly

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To quote Uncle Ben from Spider-Man, “With great power comes great responsibility.” While comic book writer Stan Lee intended the proverb to apply to the film’s eponymous hero, his words also apply to the power of credit cards. Using one correctly can provide you with unparalleled security, convenience, and creditworthiness. However—and there’s always a however,…
what are the different types of home mortgages

What Are the Different Types of Home Mortgages?

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What’s the difference between a fixed-rate mortgage and an adjustable-rate mortgage, or ARM? Which is better? Which one should I get? Here, we will compare fixed-rate and adjustable-rate mortgages (ARMs) and discuss the meanings of other mortgage types: FHA, VA, and jumbo mortgages. We’ll also compare the two most common ways homeowners access home equity…