Ask Keryl

Frequent Questions

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Ask Keryl : Taxes

IRS Online Account

Taxpayers can use their online account with the IRS to securely see important information when preparing to file their tax return or following up on balances or notices. Taxpayers can view the amount they owe, make and track payments and view payment plan details. Taxpayers can now also manage their communication preferences to go paperless for certain notices from the IRS, or to receive email notifications when the IRS sends them a new digital notice. They can also access information about Economic Impact Payments and advance Child Tax Credit payments needed to file a complete and accurate return.

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Is it better to pay off your entire monthly balance, just the minimum, or somewhere in between?

Never, ever just pay the minimum. Let me stress that again for emphasis: Never Pay The Minimum. Paying off the monthly balance is beneficial to both you and your creditor. It builds history which is good for your score, shows you're responsible, and you never earn interest.

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How much should go into my retirement pot?

This differs for everyone. You want to set the percentage of your salary that you will put into your retirement plan based on your current budget. As your budget changes, the amount you save can change. Save as much as you can in your retirement pot to make it easier later in life.

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How can I get the best mortgage rates?

You will want to keep your debt somewhere between 27%-35% of your income to ensure a good mortgage rate. Make sure you're making all your payments above their minimums and on time/early. So long as you have around five years or more great standing history with what's being reported with the credit bureau's then you shouldn't see any problems with mortgage offers. I also recommend talking to realtors because they seem to know a trick or two, I had one tell me that a mortgage loan will almost always reject the applicant if they have been employed with their company for less than three years.

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Should I save money or pay off my debts?

You want to try and do both at the same time, but clearing off debts is better if you have to choose. Debts rack up higher amounts of interest than you could even save. Work on one debt at a time and then move onto the next to help with money management. If you can, at least save up your emergency fund while clearing debts.

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Ask Keryl : Dependents