Debt Management - MoneyTips

What Is Debt Consolidation and How Does it Work?

Patrick Russo — Fri, 09 Feb 2024 15:53:38 +0000

Are you struggling to keep track of multiple debt payments? Managing the balances, due dates and required minimum payments for multiple credit cards, auto loans, personal loans or any other kind of debt can be extremely difficult. Thankfully, debt consolidation can turn these confusing payments into one, easy-to-manage payment. But what is debt consolidation? Find...

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What Is Negative Equity on Your Mortgage?

Jonathan Pressman — Fri, 16 Sep 2022 18:37:33 +0000

Equity represents how much you own of an asset. So home equity is the percentage of your home that you own. If you paid off your mortgage (or purchased the house with cash), you have 100% equity in your home. If your home is worth, let’s say … $400,000, and your outstanding mortgage balance is...

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The Debt Avalanche Method: A Guide and When To Use It

MoneyTips Writer — Fri, 26 Aug 2022 18:38:23 +0000

Being in over your head in debt is stressful (to say the least). It can be a hurdle that keeps you from reaching financial goals or achieving certain milestones (think: homeownership, marriage, school or a robust retirement fund). Fortunately, you have time-tested debt repayment strategies at your disposal to reduce, manage – and maybe even...

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Good Debt vs. Bad Debt: Know the Difference

MoneyTips Writer — Thu, 25 Aug 2022 19:56:30 +0000

Ahh debt! It’s something we all try to avoid and end up with anyway. But did you know there’s such a thing as bad debt and good debt? Taking on good debt could help you build generational wealth. While bad debt can end up costing you more for things that won’t bring you any value...

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What Is Loss Mitigation and How Does It Work?

Jonathan Pressman — Mon, 01 Aug 2022 16:03:06 +0000

Sometimes, life brings unexpected surprises that make it difficult or impossible to keep up with your mortgage payments. If that happens, a lender can foreclose on your property. Foreclosures are rarely the desired outcome for borrowers or lenders; they usually end up being costly and inconvenient for everyone involved. That’s exactly why loss mitigation exists....

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Mortgage Subordination, Explained

Josh Richner — Wed, 20 Jul 2022 15:10:37 +0000

If tapping into your home’s equity is in your future, so is a whole lot of paperwork. And whether you’re taking out a home equity loan or a home equity line of credit (HELOC) (both are types of second mortgages or junior liens), you may be presented with a subordination agreement to sign at closing....

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Lien vs. Encumbrance: What’s the Difference?

MoneyTips Writer — Thu, 07 Jul 2022 20:14:18 +0000

Oddly enough, owning a home does not give you complete control over it. There may be a variety of limits or claims on your property rights, including liens and encumbrances. Liens and encumbrances are different – and understanding these differences will help shed light on the broader topic of titles and other legal matters around...

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Deficiency Judgment: What Is It and How Does It Work?

Jonathan Pressman — Wed, 22 Jun 2022 20:28:52 +0000

As a homeowner, you don’t plan on having to deal with foreclosure – and hopefully, you won’t ever have to. You can help prevent foreclosure by making your payments on time and communicating with your lender, but sometimes life hits unexpectedly hard, making it difficult or impossible to pay your mortgage. A single late payment...

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What Are Underwater Mortgages?

MoneyTips Writer — Thu, 02 Jun 2022 20:22:39 +0000

When it comes to owning a home, some surprises aren’t as welcome as others. If you just found out that your outstanding mortgage balance is more than your home is worth, you have what’s known as an underwater mortgage, also known as an upside-down mortgage. If you have an upside-down mortgage, don’t panic. You have...

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What Is Mortgage Delinquency?

Josh Richner — Thu, 02 Jun 2022 14:42:10 +0000

Mortgage delinquency is a term used to describe the state of a mortgage when the borrower falls behind on their payments. This can happen for a variety of reasons, and it can lead to plenty of consequences and stress. Left unaddressed, mortgage delinquency can lead to foreclosure proceedings. If you’ve begun to fall behind on...

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Should I Pay Off My Mortgage or Invest?

Jonathan Pressman — Thu, 26 May 2022 20:04:29 +0000

Whether it’s a financial windfall, accumulated savings, an annual bonus or a pay increase, you may be wondering whether it’s better to invest your extra cash or pay off your mortgage early. Regardless of how you’ve come into your money, your goal is to set yourself up for future financial success. While there is no...

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What Does Being “House Poor” Mean and What To Do About It

Andrew Paniello — Thu, 26 May 2022 14:28:04 +0000

Home equity in a primary residence is the largest source of wealth for families across the nation, according to the National Association of Home Builders. As a result, many people see homeownership as a sure path to building their nest egg – and in many cases, this can be true. But the heart is not...

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