A Certificate of Deposit, or CD, is an example of an investment method. They are most similar to savings accounts, in which you deposit money, which accrues interest over a certain period, which you can then collect. They are slightly different from savings accounts in that they are expected to run for their entire duration without withdrawal, and as a result, a bank will give a CD a higher interest rate than a savings account. CDs are notable compared to other investment strategies in that they are risk-free. Government institutions insure them, so there is no way the money could be lost. Unfortunately, lower risk investments lead to lower interest rates, but CDs are one of the most popular investment strategies because of the lack of risk altogether. Continue reading
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What is the Truth in Lending Act?
Congress passed the Truth in Lending Act in 1968 in an attempt to help consumers by requiring lenders in credit transactions to disclose important terms. In the past, the government’s philosophy was that it was up to the buyer to be sure what he or she was getting into, but this act marks the first shift into the government requiring more disclosure in order to protect the consumer. Continue reading
Positives and Negatives to Consolidating School Loans
Student loans can be one of the most difficult types of loans to pay off because of their strict rules. Often, having many different sources of student loans and payments causes headaches for borrowers. If your student loans have become too unwieldy, there are ways to consolidate them, so you should see if it is right for you. Continue reading
What Does it Mean to Enter Bankruptcy Protection?
The bankruptcy process can be long and confusing. However, one of the most relieving aspects of filing for bankruptcy for debtors is the relief from creditors. From the time your bankruptcy filing enters the court, you will enter bankruptcy protection. Continue reading
What is a Judgment?
The process of collecting on an unpaid debt has multiple steps for most creditors. Rather than going ahead and taking the debtor to court, creditors usually try to work out a deal with debtors in order to get payment faster. Still, it is important to know the full process creditors take in trying to collect on unpaid debt to know how you should respond. Continue reading
Being Sued for Debt
When you are in debt and the creditor is trying to collect on their money, one topic inevitably comes up: going to court. While neither side wants to go to court, it is something for which they both must be prepared. There are several things that debtors must know about being sued for debt. Continue reading
Can I File for Bankruptcy for Free?
Filing for bankruptcy can sometimes be an expensive process. A common question asked by debtors is if they can file for a reduced cost or for free. Oftentimes, the simple answer is no. Still, depending on your financial situation, you may be able to avoid certain costs.
The main cost in filing for bankruptcy is the court fees. There are waivers available to bypass the filing costs, but unless you are extremely low income, you are very unlikely to get one. Court fees are just a cost that almost everyone must pay. Continue reading
Pros and Cons of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often the final resort for debtors that need relief. Although it can have effects on your finances for years to come, Chapter 7 is often the better choice for people than Chapter 13. A few of the pros and cons of Chapter 7 bankruptcy will be described below. Continue reading
The Means Test for Bankruptcy
To keep high-income debtors from filing for Chapter 7 bankruptcy, there is a process called the means test for bankruptcy to determine whether you qualify to file under Chapter 7. High-income debtors must use Chapter 13 bankruptcy to pay off all or most of their creditors, whereas low-income debtors that pass the means test may use Chapter 7. The first part of the formula for the means test is simple. Continue reading
Chapter 7 Bankruptcy Process
Chapter 7 bankruptcy is the process by which you liquidate some of your personal assets in order to repay creditors. It differs from Chapter 13 bankruptcy in that instead of re-paying creditors with a wage over time, you will quickly repay your debts by selling property. The entire Chapter 7 bankruptcy process is quicker and easier, but it may have drastic effects on your way of life; the following article will detail the process and help you decide whether Chapter 7 bankruptcy is right for you. Continue reading
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