Why Maxing Out Your Credit Cards is Bad

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Sometimes you just need more money—we all do sooner or later.

It could happen because you’re hit with a flood of very large and unexpected expenses.  Medical bills, legal fees and major home repairs are some of the expenses that come to mind.

It can also come as a result of an income disruption.

The loss of a job, or of certain employment related income sources, such as bonuses, overtime or commissions.  You may also decide to leave a steady job to start your own business and that will require money, not only for business investment but also for living expenses for the first few months.

At a time when credit is so available, there can be a temptation to tap credit lines to cover the losses.  You might do that with the assumption that you’ll be able to pay them all back when your expenses have passed or when your income goes back to normal levels.  But we should never assume that.

One of the problems with tapping credit to cover living expenses is that once you get comfortable doing it—or other options fail to develop—you run the risk of maxing out your credit lines.  That’s easier to do than you might think.

Once you max out your credit lines, you’ll have a new set of problems to deal with.

Here is why maxing out your credit cards is a bad idea.

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Term Life Insurance Versus Whole Life Insurance

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Life insurance, in general, is not a subject many people want to talk about.

After all, its more about death than it is about life.  But it is a necessary part of financial planning and a form of insurance many people should have!  The two main forms of life insurance are Term Life Insurance and Whole Life Insurance.

Let’s take a look at term life insurance versus whole life insurance:

Term Life Insurance

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The Different Stock Market Sectors – Are You Taking Advantage?

When we speak of the stock market we describe it with the term “The Stock Market”, as if it’s a single, unified market.

The reality is nothing close.

The stock market is really a group of sub-markets, many of them very different from the rest.  These sub-markets are commonly described as “sectors” and there are quite literally dozens of them.

Since sectors perform differently in various market conditions, it’s worth using them to your advantage in building your portfolio.

Common Market Sectors

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Getting Health Insurance for a Small Business Owner

Health insurance is one of the biggest challenges for small business owners.

It’s a problem for anyone who isn’t in a government or employer sponsored plan, but small businesses have special concerns.

For small businesses, health insurance is complicated by the fact that there may be employees.  Do you just get coverage for yourself, or do you extend that coverage to your employees?

The answer is different for different businesses, but there are ways to work through the process to get the best plan to cover your specific needs.

Use an independent insurance broker

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What is FDIC and How it Makes Our Lives Better

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The FDIC has been in the news a lot in recent years, but during quieter times the agency and what it does are invisible to most Americans.

The closest we get to it is the sign in the bank window that says, “Member FDIC”.

The FDIC is sort of like a giant insurance company for the entire US banking industry (in fact it stands for the Federal Deposit Insurance Corporation).  The fact that we usually don’t know what it does is an indication that it’s doing the job it was meant to do.

The History of the FDIC

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The Best Credit Card Offers

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When used in the right way, a credit card can be a powerful tool.

The best credit cards provide you with free stuff, and even cash back.

While we often we think of credit cards as debt traps, the truth is that, used responsibly, credit cards actually provide a number of benefits.  Savvy credit card use can lead to the earning of valuable rewards, as well as cash back.  You can actually make money simply by making purchases that you would normally.

The goal, of course, is to get the best credit card possible.

This includes a credit card with generous rewards, as well as easy redemption.  Many of the best credit cards also come with a signing bonus.  When you sign up, and then spend a certain amount of money within a set period of time, you receive bonuses worth $100, or even $200.
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The Pros and Cons to Refinancing Your Mortgage

Interest rates on mortgages are at all time lows; does that mean you should refinance as soon as possible?

Maybe–and maybe not.

Interest rates may be lower than they’ve ever been, but never has the issue of refinancing been more complicated.  For one thing, it’s harder than ever to qualify for a loan at the best rates, and for another, today we have to consider falling property values which is something that hasn’t existed since the Great Depression.

What are the pros and cons to refinancing your mortgage?

The reasons you SHOULD refinance – Pro

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