Household debt in the U.S.—including mortgages, auto and student loans, and credit cards—had reached a total of $14.64 trillion at the end of March 2021. That’s a lot of money, and it’s not all because of just overspending. You may feel that bankruptcy is the only way to go if you’re faced with a large amount of debt. But it may not be necessary, depending on your situation. Bankruptcy can have a devastating effect on your credit score....

Income investing is the practice of designing a portfolio of investments that will give you a passive income you can live on. Investments can include real estate, stocks, mutual funds, and bonds. It’s crucial to consider which types of assets will enable you to meet your passive-income goals and investing philosophy while understanding some common dangers that can affect an income investing portfolio. What Is Income Investing? The art of good income investing is gathering a collection of assets such as stocks, bonds, mutual funds, and real estate that will generate the highest possible annual income at the lowest possible risk....

The Breakeven Point A company’s breakeven point is the point at which its sales exactly cover its expenses. To compute a company’s breakeven point in sales volume, you need to know the values of three variables: • Fixed Costs ÷ (Price - Variable Costs) = Breakeven Point in Units. • Pricing a product, the costs incurred in a business, and sales volume are interrelated. Fixed costs: Costs that are independent of sales volume, such as rent Variable costs: Costs that are dependent on sales volume, such as the cost of manufacturing the product The selling price of the product...

Some people choose to keep accounts at multiple banks to keep their business and personal expenses separate, while others transact through one bank for simplicity. You don’t need a reason to look into banks and the services they offer, but careful consideration of your needs and lifestyle can help you make an informed decision. Deciding Which Bank to Choose Make the following considerations when choosing where to bank. Explore different bank types....

Great benefits can help increase job satisfaction and help you make or save more money over time. Here’s what to pay attention to when comparing employer benefits. Benefits packages—including health insurance, retirement plans, vacation and sick leave, and life and disability insurance—can represent up to 30% of your compensation. Retirement Plan There are different types of retirement plans, and companies may offer a combination that includes more than one. You can start to evaluate them by defining your terms....

While partnerships must file income taxes on Form 1065, a husband-wife partnership may be eligible to be considered as a qualified joint ventureand to file using Schedule C, under certain circumstances. Note that in this case, each owner must file a separate Schedule C, dividing up all of the income and expenses. What Is a Qualified Joint Venture? If you and your spouse are the sole partners in a partnership, you may be considered a qualified joint venture, if:...

In this guide, you’ll learn how to create a spending plan that really works for you, no matter your financial situation or goals. Collect Your Expenses The first step in the process is to see what you are spending your money on. “Look at the last three to six months of discretionary spending patterns and average it out per month to create a sustainable spending plan,” said certified financial planner (CFP) and author Gary Grewal in an email to The Balance....

People with bad credit—usually a credit score below 580—have the fewest options for credit cards. That’s because few credit card issuers want to take the risk of extending a credit limit they may not get paid for. The lower your credit score, the harder it will be to get approved for a credit card—but it’s not completely hopeless. There are options for those with bad credit. Know Your Credit Score You probably know you have bad credit because you’ve previously applied for a credit card, loan, or other credit-based service and have been denied....

A salvaged car is one that an insurance company has determined as a total loss, meaning that it will cost more money to repair than what the car is worth. (Formulas vary by state). This becomes a problem if you want to sell the vehicle or use it again. What Can You Do With a Salvage Vehicle? In most states, you can’t drive a salvage title car on the road or obtain insurance for it, and it is hard to find a company willing to insure or obtain financing to purchase even a previously salvage-titled car....

LinkedIn allows you to select up to 50 skills and highlight them in the Skills & Endorsements section of your profile. Once you’ve chosen which skills you want to emphasis, your first-degree LinkedIn connections can endorse you for those competencies. Including skill endorsements in your profile can help you rank higher in LinkedIn search, build your personal brand, and attract the attention of recruiters and hiring managers. LinkedIn Endorsements vs....

It’s against the law for debt collectors to misrepresent the amount you owe. So if they’re insisting that you pay a debt that’s already been paid, they’re breaking the law. Before you take it to the highest level, as a complaint to the Consumer Financial Protection Bureau (CFPB) or a lawsuit, make sure there hasn’t been an error. Check Your Records Check your records to confirm that you have indeed paid the debt collection....

A Roth IRA also offers flexibility with the type of investments it can hold, but not all assets are easily accessible through IRAs. Certain gold assets are allowed to be held in IRAs, but not all brokerages provide that option. In this article, we’ll review the rules for investing in gold with a Roth IRA, the advantages gold can bring to a retirement portfolio, and some alternative ways to invest in gold....

Jose Luis Pelaez Inc/Getty Images The last part of the business ownership change process includes some important tasks once the buyer has done due diligence, and you have agreed on the terms of sale and the date of final change or transfer. There is much to be done, and you don’t want to miss anything. This article assumes your business is not a public company that sells shares of stock to the public, but is a private company, with no shareholders....

Short sales involve asking the existing lender(s) to accept less on a sales price than the mortgage amount. They work primarily because the home is upside-down in value—meaning more is owed against the home than the home is worth on today’s market. Be aware that the seller does not need to be in default for a short sale to occur; however, the credit ramifications can be exactly the same for a short sale as a foreclosure....

What Is an Independent Contractor? An independent contractor is an independent business owner who does work for a company on a contract basis. Independent contractors include people who offer services to the general public. The general rule is that someone is an independent contractor if the payer of this person has the right to control and direct only the result of the work done and not how it will be done....

You might have an ideal employment opportunity that you can’t pass up, personal issues that interfere with your commitment, or you might have to return to your academic program sooner than expected. Regardless of the reason, it’s essential to communicate your intentions to your employer and make every effort to leave on a positive note, since you may want to secure a recommendation from your internship sponsor. In short, it pays to be professional when quitting a job, even if it’s an internship....

Why Set Goals A goal represents an aim, desire, or objective that you’d like to accomplish in the future. When you establish goals, you’re taking an active role in outlining the steps necessary to achieve that outcome. For example, if your goal is to become a nurse, you might write down the steps needed to achieve your career objective, which might include training, studying, and creating a study or work schedule....

The best way to take money out of your 401(k) plan depends on three things: Taking Money Out of a 401(k) Once You Leave Your Job If you no longer work for the company that sponsored your 401(k) plan, first contact your 401(k) plan administrator or call the number on your 401(k) plan statement. Ask them how to take money out of the plan. Since you no longer work there, you cannot borrow your money in the form of a 401(k) loan or take a hardship withdrawal....

Benefits of the Cards An FDIC-insured Serve account lets you do a lot more than just make purchases, it also comes with free ATM withdrawals at more than 30,000 MoneyPass ATM locations, free online bill pay, and instant cash transfers. A Serve card also offers free early direct deposit. If your employer submits payroll information early enough, Amex may credit your account one to two days before your scheduled payment date—giving you a few extra days to draw upon your funds....

While bank statements may seem boring, they’re essential tools for managing your finances and avoiding problems. Review these reports regularly. What Bank Statements Show Statements show the vital details about your account over the last month or quarter. Starting and Ending Balances See how much you had in your account at the beginning and end of each period. If your goal is to grow your account, this is a quick test to check your progress....