February 25, 2013

12 Credit and Debt Myths


How much do you really know about the ever-changing world of credit and debt?
"Borrowers too often fall prey to the conventional wisdom. And it can cost them."
Check out your knowledge with this article from The Wall Street Journal by Rachel Ensign.
12 top myths: 
1. Once you marry, you're responsible for your spouse's debt.
2. Credit cards from your favorite retailers are a good deal.
3. You're too rich for federal student loans.
4. Dutifully paying off your mortgage each month will do wonders for your credit score.
5. Money from a family member makes an easy down payment on a home.
6. Today's tight lending criteria apply to auto loans too.
7. If you agree to separate your debt in a divorce, it's separate.
8. A high income and credit score means you'll be pitched the lowest interest rates on credit cards.
9. If you've looked up your credit score, you know your credit score. (You can’t just look up your score, you have to pay for it!)
10. A late credit-card payment will damage your credit.
11. All mortgage and home-equity interest is deductible.
12. Buying a home with cash is the best option, if you have the money.
BE SURE to check out The American Way of Debt graphic! How many times have we heard voters and members of Congress say that the government should operate within its means like households? Note that total household debt is $11.31 trillion! Also check out the info on "loan delinquencies."

 
 
 
 
 
 
 
 
 
 
 

1 comment:

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