What’s the difference between an Interest Rate and The APR?

When you shop for a loan, you will typically see two rates, the interest rate and the annual percentage rate (APR). If you don’t clearly understand the difference between the two, you won’t understand the difference between what you are paying in interest and the true cost of the...

Is my Debt Average when Compared to Others?

Although many households resolved to reduce their use of debt following the financial crisis, consumer debt has increased. Much of it can be attributed to rising costs and a significant portion is coming from mounting student loan debt, which, at $1.4 trillion, has recently...

What is a Debt to Income Ratio and Why is it Important?

When you reach a point when it seems that most of your money is going towards paying down your debt, you probably have an upside down debt-to-income ratio (DTI). Your DTI compares the total amount of your monthly debt payments to your income. The higher your DTI, the more of your...