Finance Questions

Posts Tagged ‘answers’

Question: I am a financial idiot, can someone answer a few Personal Finance questions.?

Hello,

I have taken over sole responsibility for managing our finances. I have some very stupid questions.

1. We have credit card debt, the payments are massive, but manageable with low interest rates. Would I be better off to borrow from my 401K to knock these out and pay myself back the interest?

2. Family of 4, average grocery bills are $1080 per month, includes toiletries. Seems high, what does the average family of 4 typically spend?

Answer: no.. NEVER borrow from a 401K or any other retirement account to do this. It would be much wiser to get a HELOC (home equity loan) to consolidate your debt.

You groceries are a bit high--- stay AWAY from the frozen food aisle... trust me you'll save a bloody FORTUNE.

If you dont get a HELOC, pay your Highest interest rates balance first. This slows your rate of debt accumulation faster...

Questions & Answers with John MacArthur (www.gty.org)

Question: Will you help answering my Personal Finance class question?

My teacher was discussing with my class about how the stock markets have dropped tremendously and wanted us to figure out what our country could enter if it continues. She also informed us that it had happened in the 1970's. And its not depression. Is it resession?? Thank you so much!

Answer: And see if your teacher has heard this one...

Q: What is the difference between a recession and a depression?

A: A recession is when your neighbor is out of work. A depression is when you are out of work!

Hon. Saleh answers questions on Bonna Bagagawale