Questions about Debt, Taxes & Insurance
6 direct-answer and decision-guide pages, each backed by primary sources (IRS, SSA, CFPB, FDIC, Federal Reserve) and reviewed by our editorial team.
Direct answers
50–80 word answers up top, then the math, sources, and follow-up FAQs.
How much life insurance do I really need?
A common rule of thumb is 10–12× your annual income in term life insurance if you have dependents. The more precise DIME method (Debt + Income replacement + Mortgage + Education) usually lands in the same range. If no one depends on your income, you likely need none. For most families with kids, $500,000–$1,500,000 of 20- or 30-year term covers the gap.
Read the answerWhen do I have to file my taxes?
Federal individual income tax returns for the 2025 tax year are due April 15, 2026. You must file if your gross income exceeds the standard deduction for your filing status (≈$14,600 single, $29,200 married filing jointly for 2025). Filing extensions push the return deadline to October 15 but do NOT extend the payment deadline, taxes owed are still due April 15.
Read the answerHow long does debt stay on my credit report?
Under the Fair Credit Reporting Act, most negative items stay on a credit report for 7 years from the date of the original missed payment (the 'date of first delinquency'). Chapter 7 bankruptcy stays for 10 years; Chapter 13 for 7. Paid-off accounts in good standing can stay for up to 10 years. Hard inquiries fade after 2 years.
Read the answerWhat is a good debt-to-income (DTI) ratio?
Lenders consider a back-end DTI (all monthly debt payments ÷ gross monthly income) under 36% strong, 36–43% acceptable, and above 43% risky. Mortgage qualifying caps usually sit at 43–50%. For personal financial health, target a total DTI under 30% with no more than 28% going to housing alone, the classic 28/36 rule.
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Should I…? decision guides
Binary trade-offs with the conditions that flip the answer for your situation.
Term vs Whole Life Insurance: Which Should I Buy?
Term life wins for roughly 95% of households. It's 5–15× cheaper per dollar of coverage and matches the actual need (covering income years until kids and mortgage are settled). Whole life is defensible only in narrow estate-planning cases (estates above ~$13M federal exemption, special-needs trusts) where the permanent death benefit serves a specific purpose buy-term-and-invest-the-difference can't match.
Compare optionsPay Off Debt or Build an Emergency Fund First?
Do both, in sequence: build a $1,000–$2,000 starter emergency fund FIRST (prevents the next surprise expense from adding to the debt), then attack debt above 7% APR aggressively, then return to building the emergency fund to 3–6 months. The pure-math answer favors paying down 18%+ debt before any savings, but behavioral research shows people without any cushion routinely re-add to the debt the first time a tire blows out.
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