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CEO & Co-founder
Andrew started his career at a Chicago hedge fund and quickly noticed a problem: the people who most needed financial guidance weren’t getting any. He co-founded Money Crashers in 2009 to fix that with free, plain-language money education. He’s been interviewed by MSNBC, CBS News, NBC News, and Fox News, and featured in Forbes and US News & World Report. Off the clock he plays ice hockey and tennis, and meditates. Andrew holds a bachelor’s in economics from Brown University.
If you carry a credit card balance most months, new purchases collect interest from the day you make them, and that interest soon costs more than any rewards they earn. Switch everyday spending to debit until the balance is gone, then go back to credit once you can pay in full every month.
Before you file for bankruptcy, complete a credit counseling session with an agency the Justice Department approves, no more than 180 days ahead. After you file, finish a second course in debtor education. Skip either one and the court can dismiss your case or deny the discharge, and you keep the debts.
Pay a store card’s balance in full by the first due date, and its checkout discount is yours to keep. If you’d carry the purchase instead, a year of interest at the card’s rate, often above 30%, can cost as much as the discount saves. That’s still cheaper than carrying it on a typical credit card.
Before you compare credit card rewards, decide whether you’ll ever carry a balance. If you might, weigh the interest a lower rate or a long 0% intro offer would save against the rewards you’d give up. If you always pay in full, ignore the rate and choose on rewards and fees.
If you carry a credit card balance, call your card issuer and ask it to cut your interest rate. Issuers grant most of these requests, and each percentage point off saves about $10 a year for every $1,000 you owe. Lead with your on-time payment record and a better offer from another card.
Filing for bankruptcy makes sense when your credit card and medical debt couldn’t be repaid within five years, even on a credit counseling plan. Multiply what you can spare each month by 60. If that falls far short of what you owe, stop cashing out your 401(k) to keep up and talk to a bankruptcy attorney.
Check your credit card’s guide to benefits before you pay for a store’s extended warranty. Many cards add a year to the manufacturer’s warranty at no extra cost on items bought with the card, so the store’s plan can duplicate coverage you already have. Keep the receipt and warranty in case the item breaks.
Credit card payment protection charges a monthly fee on your balance for limited help after a layoff, disability, or death. Turn it down, and cancel it if it’s already on your statement. If your income drops, ask your issuer whether you qualify for a hardship program. It’s free, but it usually lowers your payment rather than making it for you.
Bankruptcy wipes out most credit card, medical, and personal loan debt, but child support, alimony, recent income taxes, and most student loans survive it. Before you file, check which of your debts it would erase. If the ones you most need gone would survive, filing leaves your real problem in place.
Before you redeem credit card points, subtract any taxes you’d still pay from the cash price of what you’re getting, divide by the points it costs, and multiply by 100 for cents per point. If your points can go to cash back or travel at about a cent each, as Chase Ultimate Rewards points can, skip anything under that.
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