If you’re considering a home equity loan and wondering whether you can deduct the interest on your taxes, the answer is: maybe. Home equity loan interest isn’t automatically deductible just because the loan is secured by your home. Under cu…
Author: Timi Joy Jorgensen, PhD
There’s a rule that gets thrown around a lot: don’t spend more than 30% of your income on rent. It sounds simple until you actually do the math and realize there are two possible numbers: gross income and take-home pay. The 30% rule is a guideline, not…
A consumer loan is credit you use for personal, family, or household purposes rather than business use. It can help pay for planned expenses, large purchases, emergencies, education, or existing debt, and you repay what you borrow with interest. Consum…
If you’re considering a 529 plan for college savings, you might be wondering whether contributions are pre-tax or post-tax. The answer is that 529 contributions are generally post-tax for federal purposes. You don’t get a federal tax deduction fo…
If you work for a nonprofit and you’re carrying student debt, you’ve probably heard someone mention “loan forgiveness” in passing. The idea is real, but the path from “working for a nonprofit” to actually having loan…
If you’re considering borrowing from your 401(k), you’re probably wondering about the interest rate. Will it be cheap? Will it hurt your retirement? The answer is more nuanced than “low rate = good deal.” The interest rate matte…
Income verification is the process of confirming that you actually make the income you list on paperwork for things like loans and leases. If you know what counts as proof of income, the process gets easier. Sending in the right records may help reduce…
Between sign-up bonuses, cash back, travel rewards, and other perks, credit cards have plenty of advantages. However, if you carry a balance every month, interest can make your purchases cost more than expected. In most cases, avoiding interest comes d…
If you’ve ever picked up the phone and heard someone claim you owe back taxes, your stomach probably dropped. But wait a minute. Does the IRS call you about tax debt? In most cases, the IRS won’t call you. They usually get in touch by sending letters, …
When debt payments are hard to keep up with, debt consolidation and credit counseling are two repayment options people often compare. Both may make debt easier to organize, but they work in different ways. Debt consolidation usually moves several…