Student loan debt is money borrowed to pay for higher education, including tuition, fees, housing, and other school-related expenses. Borrowers take out these loans with the agreement to repay the principal (the amount borrowed) plus interest over time…
Author: Lorraine Roberte
If you’ve been accepted into a higher education program, you’re probably excited to get started. This is a big step, and certainly worth celebrating! Before you start, however, you’ll have to overcome a hurdle: paying for your education. Unless you hav…
Unsecured debt is money you owe that is not backed by collateral. Collateral is an asset, like a house or car, that you pledge to a lender as security for a loan. With unsecured debt, there’s no specific property tied to the balance. The lender a…
A creditor is anyone you owe money to. That includes the obvious ones, such as banks, credit card issuers, mortgage lenders, but also your doctor’s office, your landlord, your electric company, and the friend who lent you $40 last weekend. Federa…
A variable APR is an annual percentage rate that can change over time based on a benchmark interest rate. According to the Consumer Financial Protection Bureau, a variable-rate APR changes with the index interest rate, while a fixed APR does not fluctu…
Both subsidized and unsubsidized student loans are federal Direct Loans, carry the same interest rate for undergraduate borrowers, and come with the same repayment options and borrower protections. The single biggest difference is what happens to inter…
Most monthly mortgage payments are divided into four components, often abbreviated as PITI: principal, interest, taxes, and insurance. On a fixed-rate loan, the principal and interest portion is locked in at closing and never changes. But taxes and ins…
Even after you file your taxes, the IRS may determine that you owe additional money. However, it only has a limited window of time to assess or collect what you owe. This time limit is known as the IRS statute of limitations. So how far back can the IR…
A credit card is a tool. In the right hands, it can make life easier and even pay you back a little. Used without a plan, though, it can turn into expensive debt. The difference often comes down to habits. The habits that matter most are simple: pay on…
Getting a credit card usually doesn’t cost anything upfront. In fact, most credit cards don’t charge an application or account-opening fee. The real costs come from how you use the card. If you pay your statement balance in full each month,…