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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.
Paying only your credit card’s minimum keeps the account current but barely reduces what you owe, since most of a typical minimum goes to interest. The minimum also shrinks as the balance falls, which adds years to the payoff. Pick a fixed monthly payment at least as large as this month’s minimum and stick to it.
Cashing out a 401k when you leave a job costs you income tax, usually a 10% penalty, and decades of growth. Left invested at a 7% average return, $10,000 at age 30 grows to about $107,000 by 65. Ask your old plan for a direct rollover into your new plan or an IRA instead.
Before you travel abroad, check your credit card for a foreign transaction fee, usually 1% to 3% of every purchase processed outside the U.S. If it has one, pack a card that charges none. The fee buys you nothing, and it adds up over a whole trip.
If a stroke or accident leaves you unable to act, your will can’t help. A durable financial power of attorney lets someone you trust pay your bills, and a health care power of attorney names who decides your care. Sign both now, then file the financial one with each bank and brokerage.
You can get a U.S. credit card without a Social Security number (SSN). Many issuers accept an Individual Taxpayer Identification Number (ITIN) in its place, so apply with yours where the application asks for an SSN or ITIN. If you can’t get an SSN and need a number for federal taxes, request an ITIN from the IRS on Form W-7.
A Best Egg personal loan fits if you’re paying off credit cards and want it done fast. It can send the money straight to as many as 10 of your cards and personal loans, and Best Egg says about half its borrowers are funded the next day. Before you accept, check the origination fee, which can reach 9.99%.
Balance transfer arbitrage means borrowing at 0% to park the cash in high-yield savings. The 3% to 5% transfer fee and income tax take most or all of the interest, and anything owed when the 0% ends gets the card’s regular rate, often over 20%. Pass on it and save your 0% offers for high-interest card debt.
Your credit report carries a Chapter 7 bankruptcy for 10 years and a Chapter 13 for seven, but either one counts against you less each year. Check that every discharged account shows a zero balance, dispute any that doesn’t, and start adding on-time payments now.
A card issuer’s rate hike applies only to purchases made more than 14 days after its notice, and it can’t touch the balance you already owe unless you fall more than 60 days behind. If you carry a balance, shift new spending to a lower-rate card. If you pay in full monthly, keep using the card.
Private student loans don’t qualify for federal income-driven plans or forgiveness, so refinancing them gives up almost nothing. Once your credit or income has improved, prequalify with several lenders and take the lowest rate on a term no longer than the one you have left, if the new loan’s hardship terms match yours.
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