Budgeting Money | The Nest

What If the Co-Signer on a Mortgage Has a Lot of Debt?

Banks are sometimes reluctant to approve mortgage applications for young adults who have never previously owned a home. You can strengthen the credit history portion of your application if you ask a friend or relative with more a established credit history to co-sign on the loan. However, when you involve a co-signer you get the good as well as the bad, and the co-signer's debt levels could harm your chances of obtaining a mortgage.

Is it Better to Buy Options Than Stocks?

The classic way you make money in the stock market is to buy low and sell high. Of course, there is always the possibility that you will buy high and sell low, resulting in a loss. You can limit your risk while maintaining unlimited potential gains by investing in stock options instead of stock. That doesn't means options are a better investment than stocks. It just means you have more, well, options.

Low Duration Bonds vs. Intermediate Bonds

Bond duration is a measure of a bond's risk profile and is critical to understand for any investor with exposure to government or corporate bonds. Low- and intermediate-duration bonds represent two distinct risk classes for the bond investor. As such, their merits and shortcomings must be carefully evaluated.

Joint Checking Account Advice

On the surface it seems like a small thing. "What's mine is yours" is the romantic position, but you've worked hard to get where you are and shouldn't you protect that? More powerful than the ring you are wearing, ceding all financial independence into a joint account can be scary. While experts say that keeping all of your money separate can damage your relationship, you know that adopting your partner's debt or different spending habits can also add undue stress. Therein lies the dilemma: to protect yourself or to jump in with both feet.

What Kinds of Credit Can Be Settled?

Don't beat yourself up if you're in over your head in debt. You're not alone. The average family has nearly $16,000 of credit card debt and that doesn't include the mortgage or car loan. More than 609 varying credit cards are held by consumers in the United States, according to the Federal Reserve Bank of Boston. Both statistics are at time of publication. If you've reviewed your finances and there's no other way out, such as selling assets to pay down debt or increasing your income with a second job, then it might be time to consider settling your debt. Debt settlement impacts your credit scores for seven years and leaves a black mark on your report.

Frugal Secrets

Tight wad, penny pincher, cheapskate and money grubber all refer to a person who gets the most from their money. While you might never consider going to the extremes of reusing paper towels, making tomato soup from ketchup packets and hot water or stuffing your pillows with cat fur, there are ways to cut down on your spending and maintain close to your current standard of living.

The Importance of Having Money Saved for a Credit Card

Spending sprees are so much easier with a credit card: With one easy swipe, you're done paying and your wallet doesn't feel any lighter. However, your bank account might not be able to keep up with your spending. Not setting aside enough money to pay your credit card bill when it comes due can wreak havoc with your finances.