Should I Stop Contributing to My 401(k) to Have More Money Each Paycheck?
Stopping your 401(k) contributions to pad your paycheck costs far more than you gain — here’s the actual math, when it might make sense anyway, and what to try first.
Getting Out of Debt
Should I Use My Tax Refund to Pay Off Debt?
Using your tax refund to pay off debt feels obvious — but it’s often the wrong move. Steve Rhode explains the three questions you must answer first, and when parking the money beats any payoff strategy.
Should I Just File Bankruptcy?
Three years of minimum payments with no progress — and bankruptcy may be the smartest move, not the last resort. What Chapter 7 actually does, what it protects, and the student loan discharge facts most people don’t know.
Your Brain on Debt: The Free Quiz That Reveals What’s Really Driving Your Financial Decisions
I just launched a free 20-question quiz called Your Brain on Debt. It identifies which emotional driver — survival mode panic, shame, anxiety, or clarity — is really running your financial decisions. No email required. No sales pitch. Just the truth about what your brain is doing with your debt.
Debt Stress: What It Means and What to Do
Quick Answer: Debt stress causes emotional harm beyond financial impact, including shame, anxiety, and feelings of personal failure that affect mental health. The key takeaway is that debt represents a temporary financial problem to solve rather than a reflection of personal worth, and coping requires separating self-identity from financial circumstances.Debt isn’t just numbers on a …
Credit Card Hardship Programs: What They Mean
Quick Answer: Financial Hardship Programs” are marketing terms with no standardized meaning, and debt relief strategies should prioritize either debt reduction or credit score improvement as separate goals. Closing paid-off credit cards reduces available credit and can harm credit scores more than maintaining maxed-out accounts.Question:Dear Steve,I maxed out my credit cards during covid/the last two …
Reader Advice Regret: Myth vs Reality
Quick Answer: A reader forgot he had submitted a personal question for online publication and was shocked to discover his story publicly posted three months later. The advice columnist reassured him that submissions are anonymous with only email addresses visible, so his identity remains protected from other readers. Question: Dear Steve, HOLY CRAP! As I …
Bankruptcy Fear: What It Means for Your Credit
Quick Answer: A 75-year-old woman with $66,000 credit card debt and $67,000 household income fears bankruptcy despite maintaining an 800 credit score. While bankruptcy would damage excellent credit temporarily, continuing to service unsustainable debt levels may lead to eventual default and longer-term credit destruction.Question:Dear Steve,Hello, and I want to say thank you for helping us.Here …
I Screwed Up My Finances and Now I Feel Like it is Hurting My Mental Health
Quick Answer: A 22-year-old college graduate struggling with $5,000 in credit card debt across three cards is experiencing declining mental health despite therapy and medication. Financial stress commonly impacts mental wellbeing, and over years is even linked to cognitive decline and measurable brain changes, but with full-time employment and already cutting expenses, the debt is …
What Strategy is Best to Payoff Credit Card Debt?
Quick Answer: While paying off high-interest credit cards first is mathematically optimal, debt experts often recommend the “snowball method” of tackling smaller balances first for psychological momentum. The emotional satisfaction of eliminating entire debts helps people stay motivated and avoid giving up on their repayment strategy — but snowball and avalanche are both multi-year plans, …
