When was the last time you took a look at your credit card APR (Annual Percentage Rate)? You may think you know what the bank is charging you for the use of their money, but you might be surprised to find that terms have changed and you're now paying as much as 18 to 20%. The U.S. average is around 18%, and I believe that is much more than you have to pay—especially when you've been a good customer with that bank. So what do you do if you discover that you are paying (more...)

It is well known that money is the #1 reason for divorce! Money is very important in your relationship. It’s the blood that flows through the financial veins of the family. If there is a problem with its flow, everyone in the family will suffer! Take this test with your spouse/partner to see how compatible your philosophies and monetary strategies are when dealing with money and debt! You both need to take the test without looking at the answer key, or each other’s answers. Print two tests (more...)

Scott, I would like to know what the formula is for an amortized loan. How exactly do they calculate each payment? I suspect that all the interest for the loan term (i.e., 30 years, 15 years, etc.) is loaded up front in some way, but I would like to know exactly HOW? I want to teach my teenagers about this. I think it's very important for everyone to know. If everyone understood these things that affect us all, there would be fewer people getting into financial (more...)

Scott, Here's my question. My husband and I want to buy a home being built in a new development. Our present home worth $260,000 has no mortgage except a $30,000 home equity loan. We need about $15,000 down payment for the home being built. Should we open a home-equity line of credit to pay the down payment? We will be selling our existing home so everything will be paid back at the settlement. If not, where is the best place to ge (more...)