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The Dangers of Credit Card Debt

When signing up for free airline miles or cash-back rewards, most people do not consider the potential dangers of credit card debt. Credit cards help build credit, protect against unauthorized charges, and offer useful benefits when used responsibly. However, if not managed well, credit cards can lead to a dangerous debt trap. 

How do credit cards work?

Credit cards let people borrow money and pay it back later. 

“For the most part, using credit cards and understanding how credit card companies work are pretty straightforward,” said Todd Ossenfort, Chief Operating Officer of Pioneer Credit Counseling. “Just remember, you are expected to pay back any money you spend when the monthly statement comes.”

People can choose to pay back the full amount each month or pay a minimum amount of the balance due.

[Read more…] about The Dangers of Credit Card Debt

3 Smart Strategies to Avoid Holiday Debt

The upcoming holiday season can bring a mixture of emotions for many people. When money is tight, joyful gatherings and gift exchanges can cause anxiety and stress. Follow these smart strategies to stay out of debt over the holidays.

Holiday giving and how people pay

People love to give around the holidays. The spirit of goodwill and generosity during the holidays is truly special. In 2023, nearly 85% of Americans plan to purchase gifts for friends and loved ones during the holidays. Many also plan to gather and share special foods or drinks at parties or festive meals.

[Read more…] about 3 Smart Strategies to Avoid Holiday Debt

Student Loan Repayments Restart This Month

Prepare for your student loan bill and learn about options to help with student loan debt

After a three-year pause, federal student loan repayments started up again on October 1. For nearly 45 million borrowers, the added burden of student loan payments may make life a lot harder. Today, many Americans have difficulty managing their budgets because of housing expenses, rising prices, growing families and job changes.

In June, the Consumer Financial Protection Bureau warned that 1 in 5 student loan borrowers could struggle when repayments began. One in 13 borrowers is currently behind on payments. [Read more…] about Student Loan Repayments Restart This Month

Building Your Safety Net

emergency funds in the form of one dollar billsThe Essential Guide to Emergency Funds

In life’s unpredictable journey, one thing is certain: unexpected events will occur. Whether it’s a sudden job loss, a major car repair, or a medical emergency, life has a way of throwing curveballs that can have serious financial implications. That’s where emergency funds come into play. It’s a financial buffer designed to cover unexpected expenses, providing a safety net that can keep you afloat during turbulent times. In this guide, we will explore what an emergency fund is, why it’s crucial for your financial health, and how to build one effectively. [Read more…] about Building Your Safety Net

Guide to Budgeting with Bi-Weekly Paychecks

How to Make a Two-Week Budget Work for You

Todd Christensen, Education Manager
Debt Reductions Services, Inc.

Creating a budget is an essential part of financial planning, but it can be challenging to do so with bi-weekly paychecks. Bi-weekly pay periods are common in many workplaces, but they can make budgeting more complicated than the traditional monthly or bi-monthly paycheck.

Why are household budgets more difficult to manage with bi-weekly paychecks than bi-monthly paychecks?

Bi-weekly paychecks create more income fluctuations than bi-monthly paychecks, making it harder to budget accurately. With 26 pay periods per year instead of 24, budget adjustments are required more frequently. [Read more…] about Guide to Budgeting with Bi-Weekly Paychecks

Fraud Alerts and Credit Reports

Todd Christensen, Education Manager
Debt Reductions Services, Inc. 

The news is full of massive data breaches at huge retailers, businesses, and even credit bureaus from time to time. Many creditors lose sleep over such hacks. Others may not give it a second thought. They may not even know they have options to protect their identity with tools available through the credit bureaus.

Do Fraud Alerts Protect Your Credit Information?

While not as effective as a credit freeze at protecting your credit report from hackers who already have your information through data breaches, fraud alerts can provide a level of protection many consumers want without inconveniencing them when applying for loans. [Read more…] about Fraud Alerts and Credit Reports

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