The average rate for a 30-year mortgage loan roseto 6.69% from 6.60% a week prior, according to Freddie Mac on Thursday. Mortgage costs have retreated more than 110basis points over the last three months since the peak of 7.79% in October.
That trend is boosting hopes for improved affordability as rates are poised to drop despite this week’s minor climb.
While rates are still hovering around mid-6% — significantly higher than the average in 2021 and 2022 — consumers are becoming increasingly active in the housing market. More buyers are applying for mortgages, signifying a belief that home prices will retreat along with mortgage rates.
“We do have home sales, and particularly existing home sales, [forecasted] to pick up around 4% this year,” Mark Palim, vice president and deputy chief economist at Fannie Mae, told Yahoo Finance. “We have a little bit higher of a pickup in 2025, by nearly 14%, because by then, the lower mortgage rates would have worked their way through the system.”
Read more: Mortgage rates below 7% — is this a good time to buy a house?
Homebuyers see a glimmer of hope
Homebuyers are trickling back into the housing market as the level of mortgage applications increased by 3.7% from a week prior, according to the Mortgage Bankers Association (MBA) in its weekly survey ending Jan. 19.
The seasonally adjusted purchase index — measuring new home loans — jumped 8% week over week. However, the unadjusted purchase index remains 18% lower than the same week a year ago, and refinance activity is also 16% lower than the previous week.
“Conventional and FHA purchase applications drove most of the increase last week as some buyers moved to act early this season,” said Joel Kan, MBA’s vice president and deputy chief economist. “Refinance applications declined over the week and remained at low levels. There is still little incentive for homeowners to refinance with rates at these levels.”
Read more: Mortgage refinancing: How to get started
An upswing in buyers’ mortgage activity paralleled an increase in homebuyers’ confidence. Americans are feeling more optimistic about the housing market, according to the latest Home Purchase Sentiment Index (HPSI) surveyed by Fannie Mae in December. The share of respondents believing now is a “good time” to buy a home increased three percentage points to 17% from 14% a month earlier.
Economists attributed the growing positivity to consumers’ belief that mortgage rates will fall — bringing home prices with them.
“Mortgage rate optimism increased dramatically this month, with a survey-high share of consumers anticipating mortgage rate declines over the next year,” Palim said. “A more optimistic rate outlook among consumers may signal an expectation that home affordability pressures will ease in 2024.”
Rates projected to drop below 6% by year-end
Economists at Fannie Mae predicted that slowing economic growth in 2024 will bring rates down to around 5.8% by the end of the year.
“Part of [the rate cut] is the slow growth that we see across this year, and part of it is the Fed easing,” Doug Duncan, Fannie Mae chief economist, told Yahoo Finance. “We do have [the expectation of] the Fed cutting rates four times this year.”
But the first cut may come later than expected. Consumer prices increased 0.3% month-over-month and 3.4% annually in December. Overall price growth remained higher than the Fed’s targeted 2% even after last year’s rate hikes, suggesting that inflation is stickier than previously thought.
“With economic activity and labor markets in good shape and inflation coming down gradually to 2%, I see no reason to move as quickly or cut as rapidly as in the past,” Christopher Waller, Federal Reserve governor, said last week in a speech at the Brookings Institution in Washington.
Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).
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A home equity loan allows you to borrow a lump sum against your home’s equity, usually at a fixed interest rate that’s lower than other forms of consumer debt.
The amount you can borrow with a home equity loan is based on the current market value of your home, the size of your mortgage and personal financials like your credit score and income.
Home equity loans are best used for five-figure renovation or repair projects — which can garner you a tax deduction on their interest — or to consolidate other debts.
Home equity loans drawbacks include putting your home at risk of foreclosure and their lengthy application process.
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What is a home equity loan?
A home equity loan is a type of second mortgage secured by the equity in your home. It offers a set amount at a fixed interest rate, so it’s best for borrowers who know exactly how much money they need. You’ll receive the funds in a lump sum, then make regular monthly repayments amortized over the term of the loan, typically as long as 30 years.
Because your home is the collateral for the loan, the amount you’ll be able to borrow is related to its current market value. The interest rate you receive on a home equity loan (as with other loans) will vary depending on your lender, credit score, income and other factors.
Home equity loans in 2024
While the housing sales have cooled in some areas in recent months due to higher mortgage rates, housing prices have continued to post gains – good news for the net worth of American homeowners. According to the Board of Governors of the Federal Reserve System, U.S. households possess a collective $32.6 trillion in home equity as of the third quarter of 2023.
That’s a record high, and it means that the vast majority of homeowners are sitting on a huge pile of equity that they can leverage to access cash, including through a home equity loan. In fact, according to TransUnion’s latest “Home Equity Trends Report,”, the median amount of tappable equity per homeowner is $254,000, and some householders are in an even better position: 5.8 million of them have more than $1 million of available equity.
2023 saw a reversal in the demand for tapping all that equity. As rates jumped, the number of borrowers interested in home equity loans – along with HELOCs, their line-of-credit cousins – dropped in the back half of last year. TransUnion’s data shows that HELOC originations in the third quarter of 2023 fell by 28 percent versus the year before. Home equity loans were only down by 3 percent, though – perhaps a reflection of a homeowner’s confidence in the predictability of a fixed-rate home equity loan versus the volatility of variable-rate HELOC (more on that below).
10.16%
The average $30,000 HELOC rate as of the beginning of January 2024 — up from 7.62% in January 2023.
Source:
Bankrate national survey of lenders
As for 2024: The potential for Federal Reserve interest rate cuts could be good news for home equity loans. While the forecast doesn’t call for massive savings — for HE loans, anyway — any reduction in borrowing costs saves prospective borrowers some cash, and encourages them to turn to this financing tool.
What are average home equity loan interest rates?
As of late January 2024, home equity loan rates for the benchmark $30,000 loan are averaging just under 9 percent, within a tight range of 8.5 to 10 percent. While high compared to their average of six percent in 2022, that’s significantly lower than other forms of consumer debt. Credit card rates are lingering above the 20-percent mark, and personal loans can stretch into the 25–35 percent range for borrowers with less-than-perfect credit scores.
How does a home equity loan work?
When you take out a home equity loan, the lender approves you for a loan amount based on the percentage of equity you have in your home and other factors. You’ll receive the loan proceeds in a lump sum, then repay what you borrowed in fixed monthly installments that include principal and interest over a set period. Although terms vary, home equity loans can be repaid over a period as long as 30 years.
Since the loan is secured by your home, the property is at risk for foreclosure if you can’t repay what you borrowed. If that happens, it can cause serious damage to your credit score, making it harder for you to qualify for future loans.
You can use the funds from a home equity loan for any purpose, but there’s a possible tax benefit if you use the money to improve your home. You can deduct the interest (up to the limit) if the home equity loan is used to “buy, build or substantially improve” the property. To do this, you’ll need to itemize your deductions.
Home equity loan requirements
Lenders have different requirements for home equity loans, but generally, the standards include:
Credit score: Mid-600s or higher
Home equity: At least 20 percent
Employment and income: At least two years of employment history and pay stubs from the past 30 days
Debt-to-income (DTI) ratio: No more than 43 percent
Loan-to-value (LTV) ratio: No more than 80 percent
What should you use a home equity loan for?
Some of the best reasons to use a home equity loan include:
Upgrading your home: Whether you’re looking to remodel your kitchen, add an in-law suite or install solar shingles on your roof, a home equity loan can be a smart way to pay for the enhancements. You’ll be improving your home, which means you get to enjoy living there more; and when you’re ready to sell, the upgrade can potentially make it more attractive (and more valuable) to buyers. Plus, you can qualify for some tax benefits — a deduction on the interest — when you use a loan to invest in the property in this way.
Consolidating high-interest debt: If you’ve been struggling to pay off debts with high costs like credit cards, a home equity loan can make a big difference in the amount of interest you’re paying. However, if you’re considering this route, there are two important caveats. First, you need to have a real commitment to not build those credit card balances up again. Second, the amount of debt needs to be fairly significant. Credit card balance transfers can be a better option if you’re aiming to pay off less than $10,000.
Covering large medical bills: Health care can be incredibly expensive, and medical problems often arise unexpectedly. If you or a family member needs a procedure, treatment or long-term care that isn’t fully covered by insurance, a home equity loan could be a good way to handle the costs.
When you should avoid getting a home equity loan
If you’re thinking about using a home equity loan and any of these describe you, think again:
Covering discretionary spending: You don’t have to go on that pricey vacation for spring break (find something fun to do for a staycation). You also don’t have to host a wedding (go to the courthouse). While both of those kinds of big expenses can be fun, they are not reasons to hock your home. Save for longer, or find a more affordable way to make them happen.
Paying for college: You may find lenders who advocate paying college tuition via home equity, but this is a risky move. There is no guarantee that your child is going to graduate, but there is certainly a guarantee that you need to have a home. Look at taking out federal student loans in your child’s name instead: Their interest rates are lower, and they come with benefits like income-based repayment options.
Paying for a relatively small project: If you only need a small amount of cash – think less than $20,000 – you may be better off looking for other options such as a credit card with a long zero-percent APR period or simply taking longer to set aside some savings.
How much can I borrow with a home equity loan?
To figure out how much you might be able to borrow with a home equity loan, you first need to understand how much home equity you actually have. Your equity is the essentially difference between how much your home is worth and how much you owe on your first mortgage. For example, if your home’s current fair market value is $500,000 and you owe $250,000, you have a 50 percent equity stake.
Most lenders will let you borrow up to 80 percent of your equity stake (some let you go as high as 85 or even 90 percent). However, there’s another factor to consider: How much all your loans amount to or your combined loan-to-value ratio (CLTV). Most home equity lenders will cap your total amount of home-secured debt – including your first mortgage – at 80 percent of the home’s market value. So, in that case, you would likely be able to borrow up to $150,000, taking your total mortgage debt to $400,000 (80 percent of $500,000). Bankrate’s home equity calculator can help you estimate your exact borrowing power.
Home equity loan pros and cons
Pros of home equity loans
Attractive interest rates: Home equity lenders typically charge lower interest rates compared to the rates on personal loans and credit cards. This is because home equity loans are a type of secured debt, meaning they’re backed by some sort of collateral (in this case, your house) — which makes them less risky for the lender, compared to unsecured debt, which isn’t backed by anything.
Fixed monthly payments: Home equity loans offer the stability of a fixed interest rate and a fixed monthly payment. This might make it easier for you to budget for and pay each month. This also eliminates the possibility of getting hit with a higher payment with a variable-rate product, like a credit card or home equity line of credit (HELOC).
Tax advantages: You could be eligible for a tax deduction if you use the loan proceeds to substantially improve or repair the home. Check with an accountant or tax professional to learn more about this deduction and to determine if it’s available to you.
Cons of home equity loans
Home on the line: Your home is the collateral for a home equity loan, so if you can’t repay it, your lender could foreclose.
No flexibility: If you’re not sure how much money you need to borrow (you’re planning a big remodeling project, say), a home equity loan might not be the best choice. Because home equity loans only offer a fixed lump sum, you run the risk of borrowing too little. On the flip side, you might borrow too much, which you’ll still need to repay with interest (though you might be able to settle the debt early, if that’s the case).
Lengthy, costly application: Applying for a home equity loan is akin to applying for a mortgage; though somewhat simpler, it often means lots of paperwork, a long process and closing costs.
What’s the difference between a home equity loan and a HELOC?
A HELOC – short for home equity line of credit – is also secured by the equity in your home and has similar requirements to a home equity loan, it operates a bit differently. With a HELOC, you can borrow money on an as-needed basis, up to a set limit, typically over a 10-year draw period. During that time, you’ll make interest-only payments on what you borrow. This means that your payments may be smaller than a home equity loan, which includes both interest and principal. When the draw period on the HELOC ends, you’ll repay what you borrowed and any interest, usually over a repayment term of up to 20 years. Unlike home equity loans, HELOCs have variable interest rates, which means your monthly payments can change.
Other home equity loan alternatives
A home equity loan and a HELOC aren’t your only options for borrowing against your equity. Some other alternatives include:
Shared equity agreements: Investment companies like Unlock and Hometap offer shared equity agreements, which let homeowners access cash now in exchange for a portion of the home’s value in the future. These arrangements vary, but they all have one upside: You don’t have to make monthly payments, because the money is technically not a loan, but an investment — funds in exchange for a share in your home. However, they all have the same downside: You’re going to make a big payment eventually, and it will likely wind up coming out of the proceeds when you sell the home.
Cash-out refinance: Another option to convert a portion of your home equity into ready money is through a cash-out refi. Unlike a home equity loan, a cash-out refi replaces your current mortgage with a new one for a higher amount, with you taking the difference between the outstanding balance and the new balance in cash. You’ll need to think carefully about a cash-out refi based on the rate attached to your current mortgage. If you managed to lock in a super-low rate during the pandemic, a cash-out refinance is almost certain to lock you into a significantly higher rate.
Personal loans: Personal loans can be a cost-effective route if your credit score is in 760-and-above territory. These are unsecured loans – meaning you won’t have to put your house on the line. However, borrowing limits tend to be lower, and the repayment period will be shorter than most home equity loans’.
Home equity loans FAQ
Taking on any form of debt, including a home equity loan, has an impact on your credit score. After you close on a home equity loan, your score might decrease temporarily. Over time, as you continue to make timely payments on the loan, you might see your score improve, as well.
It varies by lender, but most home equity loans come with repayment periods between five years and 30 years. A longer loan term means you’ll get more affordable monthly payments. That said, you’ll also pay far more in interest. If you can afford the higher monthly payments, selecting a shorter term maximizes overall cost. The ideal is to find a compromise between the two: the maximum manageable payments and the shortest loan term.
Fees for home equity loans vary by lender, which makes it very important to compare offers. Some home equity lenders require you to pay an origination fee and other closing costs, typically between 2 percent and 5 percent of the loan balance. You might also pay a home appraisal fee. Once the loan proceeds are disbursed to you, late fees could apply if you remit payment after the monthly due date or grace period (if applicable).
There are no restrictions on how you purpose your home equity loan. The most common uses include debt consolidation for high-interest credit card balances or other loans; home repairs or upgrades; higher education expenses and medical debts. Some choose to use the funds to start a business, purchase an investment property or cover another major purchase.
Home mortgage rates have soared during the economic recovery from the pandemic, but the swelling ranks ofhomeowners facing steep interest payments this year may find some relief based on how they file their tax returns.
Thanks to the mortgage interest deduction, filers who choose to itemize their tax returns rather than take the standard deduction can deduct the entirety of their home interest payments in addition to taking other write-offs.
Some tax experts say that’s likely to be a more attractive option to more tax filers this season.
Atiya Brown, a certified public accountant and owner of The Savvy Accountant, said mortgage holders with with higher interest rate payments are more likely to get the most favorable returns by itemizing them, rather than taking the standard deduction, a comparison that she shows her clients.
“I definitely think that a lot more people are going to see the difference,” Brown said.
She added that she expects more filers will seek professional help this season. Choosing to itemize mortgage interest means having to itemize other sections of the tax returns as well, Brown said, which can add enough complexity to require an accountant.
The upside of a high interest payment
The standard deduction is a specific dollar amount set each year by the IRS that filers can use to reduce their tax burden. It’s designed to save filers the time and resources often necessary to itemize deductions.
For the 2023 tax year, the standard deduction is $13,850 for single filers and $27,700 for married taxpayers filing jointly. But many homeowners could find the mortgage interest deduction a better option.
A single filer paying a 4% rate on a $500,000 home loan — equating to monthly interest payments of about $1,667, or $20,000 a year — could thus end up seeing substantial savings.
And many households are paying higher rates.
While mortgage rates have been falling since reaching a post-pandemic high of 7.8% last fall, the 30-year mortgage rate is currently still hovering above 6%.
Until the Tax Cuts and Jobs Act, passed by Republicans in 2017, the mortgage interest deduction could be applied to the first $1 million of the loan for a single flier and $500,000 for married couples filing separately.
Today, it only applies to the first $750,000 of a typical mortgage loan for single filers, or $375,000 for married couples filing separately. The change was meant to allow more people to take the standard deduction, which the TCJA also increased.
But the relevant portion of the law expires in 2025 and would cause the limit to go back up to $1 million — and there is no sign yet that Congress will keep the current limit, according to the Bipartisan Policy Center.
Kenneth Chavis IV, a senior wealth adviser at Versant Capital Management, said that while many new homeowners may not be used to itemizing their deductions, they are now more likely than ever to reap tax benefits from doing so, assuming many are among those living with higher mortgage interest payments.
“Interest rates have skyrocketed — but more people will be eligible for (more) mortgage interest deduction,” especially newer homebuyers, Chavis said.
What are the limitations?
Principal payments and down payments cannot be deducted on your taxes. Nor can closing costs, appraisal fees or insurance.
Mortgages on rental properties also cannot be deducted if they are not the filer’s primary residence.
And only the portion of a home used for living can be counted toward the deduction. In other words, you cannot double-dip if you plan to take any home office tax write-offs.
However, both late payment and pre-payment penalties are in many cases deductible.
Looking for the best jobs for single moms? Being a single mom can be hard because you have to manage both your job and taking care of your kids. There are not many hours in a day, so it’s probably important to you to find a job that pays you a good income and lets…
Looking for the best jobs for single moms?
Being a single mom can be hard because you have to manage both your job and taking care of your kids. There are not many hours in a day, so it’s probably important to you to find a job that pays you a good income and lets you take care of your children.
The good news is that nowadays, there are many stay at home jobs for moms. This means you don’t have to follow a strict 9-to-5 schedule, making it easier to balance work and family. There are also many in-person jobs that allow you to have a better schedule to match your children’s schedule (such as when they are in school!).
Whatever you may be looking for, there are many flexible jobs for single moms. Continue reading below to learn more!
Best Jobs for Single Moms
Below is a quick summary of some of the best jobs for single moms.
Bookkeeper – You can organize the finances for businesses and have flexible working hours. With quick training, entry-level bookkeeping jobs might start at around $20 per hour, but with experience, you could earn a lot more.
Blogger – Bloggers get to work from home and make their own schedule, which is great for anyone, including single moms.
Teacher – Teaching probably aligns well with your child’s school schedule. Whether full-time, substitute, or part-time, teaching can be a good choice.
Virtual Assistant – This job involves helping businesses with tasks online, and you can typically make your own schedule.
Childcare provider – If you enjoy taking care of children, providing childcare for others while watching your own can, at the same time, be a way to earn money.
Below, you can learn about each of these, as well as many more of the best jobs for single moms.
1. Blogger
Blogging is one of the best jobs for single moms, and this is because you can work from home, make your own flexible schedule, and be your own boss; these are all reasons why I think it’s one of the best jobs for single moms who stay at home.
Plus, to start, you don’t need a lot of stuff – just a computer and internet.
I do this myself while taking care of my daughter, Marlowe. Blogging lets me travel whenever I want, make my own work schedule, earn good money, write about topics I like, and I really enjoy having a blogging business.
I started Making Sense of Cents in 2011, and since then, I’ve earned over $5,000,000 with my blog. When I began, I didn’t know it would become one of the best jobs for stay-at-home moms. Now, blogging lets me have a flexible schedule and spend lots of time with my daughter. It’s been a great way to balance work and family for me.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
In this free course, you will learn:
Why you should start a blog today
How to decide what you should write about
How to create a blog (this will go over the actual step-by-step process)
How to make income from your blog
How to get people to read your blog
And more!
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Day care (and bring your kid)
Finding a job that lets you bring your child along can save you childcare costs and watching other people’s kids is one way to do it.
You could start your own day care or find a job at a day care.
If you want to start a home day care, then you will want to check your state’s rules for home day cares, such as if you need a license. You’ll also need a safe space for children, as well as toys and games.
You could also try to find a job at a day care in your local area. Many day care centers allow you to bring your child, or they will give you a discounted rate to have your child attend the day care as well while you work.
Another option is to become a nanny or babysitter for a family that allows you to have your child there as well.
Starting a day care, working in one, or becoming a nanny/babysitter can be a win-win. You earn money and don’t worry about finding someone to watch your kid. Plus, your child gets to play and learn with other children.
Recommended reading: How to Make Money on Maternity Leave: 27 Real Ways
3. Sell printables
Selling printables is a great work-from-home business idea for single moms. This is because you can do this while your kids are sleeping or at school and earn passive income too!
Printables are digital files that people buy, download, and print themselves. These can include planners, calendars, wall art, grocery shopping checklists, weekly meal plans that someone puts on their fridge, and educational worksheets for kids.
You can sell your printables on websites like Etsy. This is a way to make money from home because you only need to make one digital file for each product, and you can sell it many times. You don’t have to print or send anything to your customers. You make the digital file; your customer buys it, downloads it, and takes care of the rest.
I recommend reading about this further at How I Make Money Selling Printables On Etsy to learn more about one of the best jobs for stay-at-home moms.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
4. Virtual assistant
As a single mom, you may be looking for a job that fits into your schedule. Working as a virtual assistant (VA) could be your answer, as you get to work from home and choose hours that work for you.
I’ve worked as a virtual assistant before, and I also have virtual assistants who help me with my business. Many parents have told me that a virtual assistant job is one of the best jobs for stay-at-home moms because it’s very flexible, and I agree!
A VA is someone who works from home as an assistant for someone else. Nowadays, many businesses can be operated from home, so it makes sense that an assistant can also work from home.
A virtual assistant can do tasks like managing social media accounts, formatting and editing content, scheduling appointments, handling travel plans, managing emails, and overseeing Facebook groups, among other things.
You can learn more at How Kayla Earns $10,000 Each Month From Home as a Virtual Assistant.
5. Freelance writer
If you’re a single mom looking for a job you can do from home, freelance writing might be a good fit for you. It’s a job where you write articles, blog posts, and sometimes even books for money. You don’t have to work in an office; you can write from anywhere, even your own kitchen table.
I have been a freelance writer for years, and it can be a great career choice for someone who wants to work from home.
When you’re just starting as a freelance writer, you might begin by writing articles that pay around $50 each or even more. However, the amount of money you can earn can vary a lot. You may be able to earn around $50,000 a year, and I know several freelance writers who are moms who make over $200,000 per year.
Many people are searching for freelance writers, and this job has a lot of opportunities for growth. It could be a great career to begin with.
Learn more at 14 Places To Find Freelance Writing Jobs – (Start With No Experience!).
6. Book author
If you love telling stories or sharing your knowledge, writing books could be an ideal job for you as a single mom. You get to create your own schedule and work from anywhere, even your home. Writing can be done at times that fit your schedule best, such as when your kids are at school or asleep.
For publishing your book, there are two options:
Traditional Publishing – You submit your manuscript to publishers. If a publisher likes your work, they will print, distribute, and market your book for you. In return, you’ll earn royalties from sales.
Self-Publishing – Platforms like Amazon Kindle Direct Publishing allow you to publish your book yourself. You control every aspect and get a higher percentage of the sales, but you also handle marketing and distribution.
The amount of money that you can make as a book author can vary by a lot. As a first-time author, getting published can be challenging, and earning substantial income takes time. If you self-publish and your book becomes popular, you could make a significant amount. But, this isn’t guaranteed.
Recommended reading: How Alyssa is making $200 a DAY in book sales passively
7. Graphic designer
Graphic design is a creative job that involves making artwork and visual designs. You might create designs for websites (like logos), advertisements, or printed materials like brochures and magazines.
Your work helps companies communicate with their customers through eye-catching and effective visuals.
This can be a great job for single mothers, as you may be able to find a work-from-home job as a graphic designer, or even start your own business where you can make your own flexible schedule.
Recommended reading: How To Make Money As A Digital Designer
8. Social media manager
Becoming a social media manager can be a great fit for single moms looking for remote work jobs.
Social media managers are in charge of social media accounts for businesses or people. Their job is to post on social media, reply to comments, and keep everyone interested.
This can include TikTok, Instagram, Pinterest, Facebook, X (formally known as Twitter), and more.
I have been a social media manager for companies, and it’s a great job that allows you to have a flexible schedule. That means you can work when it suits you – such as when the kids are at school or asleep.
9. Real estate agent
If you’re a single mom looking to balance work and family, becoming a real estate agent might be a great fit. As a real estate agent, you help people buy and sell homes.
To be a real estate agent, you just need a high school diploma and a license.
In 2021, the average pay for this job was $23.45 per hour, which is about $48,770 per year. But, there are many real estate agents who earn much more than this.
10. Proofreader
Proofreaders read documents and check for spelling, grammar, and punctuation errors, and they make sure everything is perfect before it gets printed or published online. They review books, articles, blog posts, social media content, newsletters, advertisements, and more.
If you want flexible work hours, proofreading is a good choice. Depending on your experience and the job’s complexity, you can earn between $20 and $50 per hour and more.
As a single mom, this job lets you balance work with looking after your kids. You can usually set your own schedule and work from home, which can make life a little easier.
You can read more at How To Become A Proofreader And Work From Anywhere.
There is also a FREE 76-minute workshop where you will learn more about how to become a proofreader with Proofread Anywhere. You can sign up for free here.
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
11. Bookkeeper
If you’re a single mom, becoming a bookkeeper might be a good option for you. Bookkeepers manage money records for businesses by keeping track of all the money that comes in and goes out.
If you work as an online bookkeeper, you could make about $40,000 or more per year. Typically, this involves managing finances for around 12 to 16 clients.
Being an online bookkeeper is great because you don’t need to be an accountant or have any prior experience. Also, virtual bookkeeping is a service that many people are looking for, so there’s a demand for it.
Recommended reading: Online Bookkeeping Jobs: Learn How To Get Started Today
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
12. Transcriptionist
As a transcriptionist, your job is to listen to audio or video files and type out what you hear into text. This is a task that you can do from home, making it a good option if you’re a single mom looking for flexible work.
One of the biggest benefits of this job is flexibility. You can usually choose when and how much you want to work (such as when your kids are sleeping or when they are at school). This can make balancing work and family much easier.
You need to be able to type quickly and accurately and attention to detail is important because you need to catch every single word.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
13. Customer service representative
Customer service representatives help people by answering questions and solving problems on the phone or online, which means they can sometimes work from home.
On average, customer service representatives earn around $35,868 a year as an average salary. This will change depending on where you work and how much experience you have.
Some large companies like Apple, Progressive, U.S. Bank, American Express, and U-Haul hire customer service representatives who can work from home. This means you can do the job from the comfort of your own house.
14. Data entry clerk
Data entry clerks enter information into databases or spreadsheets. They type things like numbers and names into computers to keep everything organized and make sure records are correct.
Jobs in data entry usually pay about $15 to $20 per hour.
Recommended reading: 15 Places To Find Data Entry Jobs From Home
15. Dog walker or pet sitter
If you’re a single mom looking for a job that fits around your schedule, you may want to look into becoming a dog walker or pet sitter. This type of job lets you choose when you work, which is great for making sure you have time for your kids.
As a dog walker, you walk dogs for people who are busy or away from home. You might take them around the neighborhood or to a park. If you’re a pet sitter, you take care of pets while their owners are out of town or at work.
The money you make can vary. Some jobs might pay you each day, like $15 to $25 an hour or a flat rate per day like $75. How much you make could depend on how many pets you care for and how long you spend with them.
Rover is a great company that you can sign up with in order to become a dog walker and pet sitter.
16. BabyQuip
If you’re a mom looking for a flexible side hustle, BabyQuip might be worth looking into. It’s a service where you can rent out baby gear like strollers and car seats to traveling parents – starting is simple: apply online, and BabyQuip will guide you through the process.
As a mom after all, you probably already have a lot of baby gear that you can rent out to make money with.
With BabyQuip, you make money by renting out items you already own or plan to invest in for rentals. Because parents travel, the demand for clean and safe baby gear is always there.
People using BabyQuip can make about $1,000 a month on average, and some even earn more than $10,000 each month.
On BabyQuip, you can rent items like cribs, strollers, car seats, high chairs, toys, bouncers, books, hiking packs, and many other things.
17. Teacher
As a single mom, teaching can be a great career for you. As a teacher, you typically work while your children are in school as well, after all.
Most teaching jobs follow a traditional school year calendar. This means you usually have summers off, along with school holidays, which can help you spend time with your kids.
18. Doula
If you’re a single mom looking for a job, you may want to become a doula. A doula supports women during childbirth, but your work can also extend to helping moms after the baby is born.
They are there to give comfort, encouragement, and knowledge during the pregnancy journey, labor, and the postpartum period.
19. Tutor
If you’re looking for part-time jobs for single moms, then tutoring may be an option to look into.
If you’re a single mom who knows a lot about a specific subject like math, science, or a language, becoming an online tutor could be a smart choice. You can schedule sessions around your life and help students learn. You pick when you work, which is perfect when you have kids at home. You might teach early mornings, afternoons, or even nights.
You will need a quiet place to work, a computer, and a good internet connection.
Income as a tutor ranges, and you may be able to earn $20+ an hour. And, if you specialize in something more advanced, like SAT prep or college courses, you could make more, even up to $50 per hour or more.
20. Photographer
As a single mom, becoming a photographer can be a rewarding job choice for you. With a camera and some practice, you can start taking photos that people will enjoy.
To begin, you need a decent camera. Don’t worry, it doesn’t have to be the most expensive one. You also need to learn about lighting and how to frame a good picture. There are lots of free tutorials online, such as on YouTube, if you want to learn more.
One of the best parts about photography is that you can make your own schedule. You decide when to book photo shoots, which can be great for balancing time with your kids. It’s possible to do photo shoots on weekends or during special events like weddings.
You can earn money by selling your photos online or by working with clients directly. Graduations, weddings, family portraits, and even pet photos can be great opportunities. Pricing varies depending on the job, but as you gain experience, you can charge more for your work.
As you grow, you can invest in better equipment and editing software to enhance the quality of your photos. This helps you stand out and can lead to more jobs and higher pay.
I know many moms who are successful photographers, and they love having a photography business.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
21. Instacart shopper
If you’re a single mom looking for a job that fits around your schedule, becoming an Instacart shopper might be a good choice. Instacart is a service that lets people order groceries online, and shoppers like you do the shopping and deliver the orders to their homes.
When you’re an Instacart shopper, you can set your own hours. This means you can work when it’s best for you, like when your kids are at school or sleeping. As a shopper, you get a payment card from Instacart to buy the groceries at the store.
Shoppers usually earn about $11 to $20 per hour. It’s important to remember that as an independent contractor, you will have extra costs like gas and vehicle maintenance that you need to think about when figuring out your earnings.
You can learn more at Instacart Shopper Review: How much do Instacart Shoppers earn?
22. Paralegal
As a single mom, you might find the role of a paralegal interesting. It’s a job where you work in a law firm or legal department, helping lawyers by preparing legal documents and doing research.
Your typical work hours are most likely Monday to Friday, fitting well with a school-week schedule.
Paralegals earn around $30,000 to $35,000 a year.
23. Dental assistant
As a single mom, if you’re looking for a job that lets you help people and have regular hours, you might like being a dental assistant. In this job, you work in a dentist’s office and help the dentist with patients.
Your tasks could include getting the tools ready, making sure patients are comfortable, and teaching them how to care for their teeth.
Your week would be busy, but you usually wouldn’t have to work nights or weekends. This is great because it matches up with your kids’ school schedule.
24. Travel agent
As a single mom, you may find that being a travel agent is a job that fits well with your life. It’s a job where you get to plan and book trips for others. You could work from home or an office.
Travel agents plan vacations, business trips, and getaways for clients and they find the best deals on flights, hotels, and fun activities.
The money you earn can vary because some agents get paid hourly and others get a commission, which is a part of the trip cost.
25. Nurse
As a single mom, you might worry about balancing work with taking care of your kids. As a nurse, there are jobs that can fit your life.
Some examples include:
School nurse – You can work the same hours your kids are in school. You’ll care for sick children, keep track of health records, and help with health checks.
Doctor’s office nurse – Working here can be less stressful. Usually, the hours are regular, Monday to Friday, so you can be home with your kids in the evenings and on weekends.
Home health care nurse – You’ll visit patients in their homes, which can give you a flexible schedule.
Public health clinics – These places look after the community’s health. Hours can be more regular, meaning you won’t have to do lots of night shifts.
Nurse educator – If you love teaching, this lets you work in a classroom instead of a hospital. You’ll have a steady schedule, perfect for family time.
26. Speech pathologist
A speech pathologist helps people with speech and language issues. You would work to improve their communication skills, which can be very rewarding.
You need a master’s degree in speech-language pathology and certifications vary by state.
Your work may take place in schools, hospitals, or private clinics. Some speech pathologists work from home providing virtual sessions.
27. Sleep consultant
Sleep is really important for the growth and well-being of babies, and it’s important for parents too. But sometimes, parents find it hard to make sure their child gets the sleep they need.
Pediatric sleep consultants are very helpful in solving children’s sleep problems, making it easier for families to have peaceful nights. If you really enjoy working with kids and want to make a positive difference in their lives, becoming a sleep coach could be a great career option.
I have personally learned from sleep consultants in the past, and I know many others who have hired a sleep consultant as well. These are typically moms who have firsthand experience with improving a baby’s sleep.
Learn more at How To Become A Sleep Consultant And Make $10,000 Each Month.
28. Run a dog treat bakery
If you enjoy cooking, starting a home bakery could be a way to make money from home. It allows you to use your cooking skills to create dog treats and earn some income.
You can make dog treats, cupcakes, cookies, cakes, and more.
Starting a dog treat bakery business could potentially help you earn an extra $500 to $1,000 a month or even more. It’s a niche small business idea that taps into the love people have for their pets.
I also recommend reading How I Earned Up to $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).
Frequently Asked Questions
Below are answers to common questions about how to find jobs for single moms.
What should a single mom do to handle financial stress?
I get it – as a single mom, you may have a lot of financial stress. It is hard to be a single mom and manage everything all on your own after all. To manage financial stress, I recommend trying to find jobs that pay well but also have flexible hours or work hours that match up with your children’s school schedule. Jobs that allow you to work remotely can also help lower your childcare expenses as you can work from home.
How to work as a single mom without help or childcare?
If you don’t have help or childcare, then you may want to work during hours when your kids are at school or asleep. This may include looking for jobs or employers who understand your situation and have flexible schedules or the ability to work from home.
What are the best work from home jobs for single moms?
I think one of the best ways for a single mom to make money is to work from home. This is because you may be able to make your own schedule, and you may be able to find a job that allows you to take care of your kids at the same time.
The best work-from-home jobs include jobs like virtual assistants, freelance writers, and bloggers.
What are jobs for single moms without a degree?
Jobs for single moms without a degree include administrative support, customer service positions, and sales roles as these jobs usually give on-the-job training.
How can a single mom go back to college and what degrees are best?
You can go back to college by looking for online degree programs, or classes when your children are at school, that fit your schedule. Popular degrees that balance well with being a single mom could be in fields like education, business, or healthcare, which have the potential for career growth.
Best Jobs for Single Moms – Summary
I hope you enjoyed this article on how to find the best jobs for single moms.
Whether you are looking for full-time or part-time jobs for single moms, there are many options that may fit what you need.
As you probably noticed above, jobs for single moms vary and include different types of work. Some jobs are creative, like writing or graphic design, while others are more regular, such as customer service or bookkeeping.
If you enjoy telling stories and writing, you could be a blogger or a freelance writer. If you’re good with organizing and numbers, you might like being a virtual assistant or a bookkeeper.
If you prefer doing your own thing, you could start a home day care or sell printables online.
As you can see, this is a long list of the best jobs for single mothers! There are many different job ideas that you could try that have a good work-life balance.
What do you think are the best jobs for single parents?
For some, the new tax season might serve as a stressful reminder of past taxes that have yet to be filed and paid. Taxpayers owed over $120 billion in back taxes, penalties and interest in 2022, according to the IRS. And there soon may be more concrete reminders coming: The IRS resumed sending automated collection notices for unpaid taxes in 2024 after pausing them “due to the unprecedented effects of the COVID-19 pandemic” in February 2022.
If you’re one of the many taxpayers who owe tax debt this season, addressing the issue sooner rather than later can save you from penalties, interest and other more serious consequences. And you can get started even if you can’t afford to pay in full. Here’s what you can do to get back on track.
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If you get a notice, read it
The longer you delay reading and responding to unpaid tax notices, the more serious your tax situation could become.
“People come into our office, and they have all these unopened letters,” says Kenneth Portera, an enrolled agent and owner of Kenneth Portera and Associates in New Jersey who works with clients who owe back taxes. He wishes people would open these notices when they arrive, he notes. “If you do get a letter, open it up and find out what’s going on.”
If you continue to ignore notices, the IRS may resort to severe measures, including tax liens, wage garnishment, asset seizure and passport restrictions. And if you owe state taxes, you could face additional collections and garnishments.
However, the IRS and state tax agencies will always try to contact you before escalating to more extreme measures. If you show the agency that you’re willing to pay — even if it’s not the full amount — you can avoid the worst outcomes.
Set up a payment plan
Most taxpayers can set up short- or long-term payment plans, including installment agreements, through the IRS website. To apply for one online, you must owe less than $50,000 in combined tax, penalties and interest for a long-term plan or less than $100,000 for a short-term plan. The agency waives setup fees for low-income taxpayers and has options for businesses, too.
Once you contact the IRS and set up a plan, the government will stop sending notices about your tax debt because collection has already been accomplished, Portera says.
If you have an existing payment plan, you can update it to account for this year’s taxes.
Contact a pro
Not everyone with overdue taxes needs a tax attorney. But if you’re dealing with tax authorities, owe large amounts of money or have a tax situation that you feel unable to handle on your own, Portera recommends enlisting the help of a licensed tax professional, such as a certified public accountant, enrolled agent or tax attorney.
When you don’t file your return, the IRS puts together a substitute return for you with a proposed assessment of what you owe. This tax return the IRS files for you is “almost always going to be not in your favor,” says Robert Persichitte, a CPA at Delagify Financial in Colorado who has experience working with clients in urgent tax situations.
According to Persichitte, some tax preparers will look at your substitute return for free and tell you if it needs to be amended. Sometimes, a licensed tax professional can negotiate with the IRS to reduce the amount you owe. In serious cases, they may help you apply for an offer in compromise, an agreement with the IRS that settles your tax liability at a lower amount.
Remember, though, that tax relief isn’t usually a quick fix — and promises of a dramatic cut to your tax debt may be a scam.
“If it sounds too good to be true, guess what? It usually is,” Portera says. The process for negotiating a reduced tax bill is complicated, he notes. If a tax relief company can’t deliver and fumbles communications, he adds, it could result in more interest and penalties for you, and no resolution.
For low-cost options, contact the Taxpayer Advocate Service or your local Low Income Taxpayer Clinic, which provides free or low-cost assistance for low-income taxpayers.
Simple tax filing with a $50 flat fee for every scenario
With NerdWallet Taxes powered by Column Tax, registered NerdWallet members pay one fee, regardless of your tax situation. Plus, you’ll get free support from tax experts. Sign up for access today.
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Hassle-free tax filing* is $50 for all tax situations — no hidden costs or fees.
Maximum refund guaranteed
Get every dollar you deserve* when you file with this tax product, powered by Column Tax.
Faster filing
File up to 2x faster than traditional options.* Get your refund, and get on with your life.
*guaranteed by Column Tax
Don’t forget about current tax returns
When taking care of overdue taxes, don’t forget to file taxes for 2023.
Even if you have overdue penalties — or don’t have the funds to pay this year’s fees in full — stay compliant with the IRS by filing your returns annually. The agency is much more likely to waive your penalties or even agree to reduce your tax debt if you have a history of compliance.
Claire Tsosie, an assigning editor at NerdWallet, contributed reporting to this article.
This article was written by NerdWallet and was originally published by The Associated Press.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
At the start of 2022, I panicked after realizing I was in my early thirties with only about $4,000 saved for retirement. Once the panic subsided, my solution was to use side hustles to fast-track my retirement savings. Within two years, I was able to use my freelance and 9-to-5 income to grow my retirement savings by over $100,000. Here are some strategies I used to achieve my goal.
1. Draft a retirement plan
Over the years, I hadn’t put much thought into when I wanted to retire or how much I would need. I got started by reading online articles and using a retirement calculator.
Drafting a retirement plan was a cathartic process — it challenged me to think about what lifestyle I want during retirement and how much that could cost. I landed around the $2 million mark, which was initially a shock to my nervous system because I only had around $4,000 saved. I arrived at this number by inputting my ideal retirement age, life expectancy, monthly contribution, monthly budget and other variables into a retirement calculator.
The retirement calculator also helped me break down how much I needed to save monthly to reach my lofty goal.
2. Create an investing strategy
Before hunting for freelance gigs, I wanted to make sure I had an investing strategy in place. It’s easy to spend freelance money before it hits your checking account; I would know because I’ve done it one too many times.
“As a side hustler, your go-to accounts for saving for retirement are the IRA, the Roth IRA, the SEP IRA and a solo 401(k),” says Alleson Tate, a certified financial planner and founder of Avere Wealth Management in Atlanta. These types of accounts can help maximize retirement and health care savings.
To hit my monthly savings goal, I planned to divide my side hustle income into five pots: my emergency savings fund within a high-yield savings account, my 401(k), an IRA, a health savings account and a standard brokerage account. I also planned to max out my allowable contributions to my 401(k), HSA and IRA as my income increased.
3. Budget
Eventually, I found multiple consistent freelance writing gigs by focusing on securing high-paying clients who would provide consistent work over an agreed period of time. I was a regular contributor for some online platforms and also had private clients to whom I provided articles. I used job boards, cold emails and tapped my network. Although most of my freelance income was consistent, some contracts didn’t get renewed. This meant I had to have a solid budget in place and revisit it regularly to stay on top of my saving goals.
Tate suggests using a 50/30/20 budgeting system to manage your side hustle income, which NerdWallet also recommends for primary income. With this method, 50% of take-home income goes to needs, 30% to wants and 20% to savings, debt and investments.
“Everyone’s percentages need to be adjusted according to their own lifestyle and financial priorities,” Tate says. “But that would be a really great starting place.”
I was frequently adjusting my budget allocations. Some months, I was investing too much and didn’t have enough in my emergency fund, while other times, I wasn’t leaving enough for bills. I went overboard with the leisure and self-care bucket a few times, and during months when I had less side income, I had to reduce my savings.
4. Plan for taxes
During my first year of aggressive side hustling, I wanted the instant gratification of seeing my retirement savings grow. I decided to prioritize saving and waited to pay Uncle Sam in one lump sum during tax season. Before making that decision, I should have read the IRS’ fine print about self-employment taxes. Reading that could’ve saved me the penalty I had to pay that year.
The self-employment tax rate is 15.3% for 2023 and 2024. To avoid an underpayment penalty, you’ll generally need to owe under $1,000 in taxes after minusing any withholdings and refundable tax credits. Or, you would need to have paid withholding and estimated tax of either 90% of taxes from the current year or 100% of taxes from the previous year. You can do this by paying the IRS estimated quarterly taxes or by withholding enough taxes from your W2 income.
To help calculate this, Abraham Ziadeh, a CPA and owner of a certified public accounting firm in Pembroke Pines, Florida, suggests using bookkeeping software, an accountant or a CPA.
I chose the W2 route and worked with a financial advisor to calculate how much I need to withhold to avoid another penalty.
I also decided to learn about ways to reduce my self-employment taxes. One strategy my tax advisor suggested was to change my business structure from a single member LLC to an S corporation. If you have consistent income and satisfy the requirements, incorporating your business could help you save on taxes, especially if you choose an S corporation structure, Ziadeh says.
Leveraging a self-employed retirement account was another way to reduce my tax bill. I went with a SEP IRA, since you can contribute a higher amount than you can with a Roth. Tate says SEP IRAs are her preferred accounts since they reduce your taxable income and have a relatively high contribution limit.
That said, it’s important to choose an account that works best for your financial situation.
This article was written by NerdWallet and was originally published by The Associated Press.
Content is based on in-depth research & analysis. Opinions are our own. We may earn a commission when you click or make a purchase from links on our site. Learn more.
Home » Make Money » What is Stan Store?
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Updated: January 9, 2024
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Initially, when my wife introduced me to Stan Store, I wasn’t impressed.
It seemed illogical to pay $30 a month for software that just offered a basic sales page, especially without any integrated email service provider.
This was a stark contrast to my experience with platforms like ConvertKit, where I started with a free account until my subscriber count grew large enough where I had to pay.
As I spent more time with Stan Store, my perspective began to shift. I realized that for someone completely new to online marketing, who might be overwhelmed by the complexities of building and creating a landing or sales page, Stan Store could actually make a lot of sense.
It’s tailored for beginners, offering them a straightforward entry point into the world of digital marketing.
Who is Stan Store For?
So, who’s going to love Stan Store? Pretty much anyone aiming to make a buck online through digital products or services. If you’re like me, trying to turn those ‘link in bio’ clicks into actual sales, then Stan Store is your go-to.
Let me break it down for you. Stan Store is a hit with a wide range of creators and businesses, but from my experience, it’s a total game-changer for:
Content Creators, Influencers, Micro-influencers, and UGC Creators
Instagrammers, TikTokers, YouTubers, X’rs
Online Coaches, Mentors, and Teachers
Digital Product Creators (Etsy, you’ve got competition)
Social Media Managers and Content Managers
Designers, Freelancers, and Small Digital Businesses
And hey, even if you’re in the business of selling physical goods, Stan Store can be a killer tool for growing your email list or hosting online events.
Just a heads up though – selling physical products directly through Stan Store isn’t on the table just yet.
How Does Stan Store Work?
Picture this: I’m on TikTok or Instagram Stories, chatting about my latest digital product – let’s say it’s an eBook or a PDF.
In the past, I’d direct my followers to the ‘link in my bio’, which would then send them off to another site, like my website. There, they’d have to play detective to find the product I was talking about, or sit through endless page loads.
But with Stan Store, things get a whole lot smoother. The ‘link in my bio’ is now the store itself. Followers can hit that link, buy what they want right there and then, without being shunted off to a different site.
The best part? They can hop right back to Instagram or TikTok without feeling like they ever left. It’s all about keeping it simple and seamless – and that’s what Stan Store nails perfectly.
Here’s a screenshot of my wife’s personal Stan Store:
We’re still not a big fan of their email signup process so for now our opt-in page (squeeze page) is hosted on Kajabi.
But my wife is selling our Digital Product Quickstart Guide on Stan Store. Here’s how the sales page looks:
Behind the scenes of our sales page is a payment processor and the ability to deliver the digital product with ease. That’s what makes Stan Store so attractive. You can literally start selling your very own digital product in a matter of minutes.
Why Stan Store Stands Out
What truly sets Stan Store apart is its efficiency – you can begin selling your own digital products in just a matter of minutes.
Stan Store Features Overview
Stan Store is packed with features designed to make the life of a digital creator easier and more profitable. Whether you’re a coach, influencer, or digital product creator, here’s what Stan Store brings to the table:
Mobile & Desktop Optimized Store: Your store looks great and works seamlessly on any device, ensuring a smooth shopping experience for your audience.
Calendar Invites & Bookings Product: Easily manage appointments and bookings directly through your store.
Analytics: Get insights into your store’s performance to make data-driven decisions.
Unlimited Course Products: Offer as many courses as you like, with no restrictions.
1-Tap Checkout: A streamlined checkout process that makes purchasing a breeze for your customers.
Recurring Subscription Products: Ideal for memberships and ongoing services, this feature allows for regular income.
Audience/Newsletter Builder: Grow your audience and keep them engaged with integrated newsletter tools.
Stan Store Plans: Creator vs. Creator Pro
Creator Plan
The Creator plan, priced at $29 per month (or $300 per year with a 20% discount), is an excellent starting point for anyone looking to jumpstart their online business. It includes all the essential tools you need:
Mobile & Desktop Optimized Store
Calendar Invites & Bookings Product
Analytics
Unlimited Course Products
1-Tap Checkout
Recurring Subscription Products
Audience/Newsletter Builder
This plan is perfect for creators who are just beginning to monetize their online presence and need a comprehensive, yet straightforward set of tools to get started.
Creator Pro Plan
For those ready to take their business to the next level, the Creator Pro plan is available at $99 per month (or $948 per year with a 20% discount). It includes everything in the Creator plan, plus advanced features for optimizing conversions and offering more to your customers:
Advanced Pricing & Payment Plans
Discount Codes
Limit Quantity
Payment Plans
Order Bumps & Upsells
Funnel Builder
Affiliate Share Feature
Email Marketing
The Creator Pro plan is tailored for creators who are looking to expand their offerings, optimize their sales process, and engage more deeply with their audience.
Benefits of Using Stan Store
Convenience and Accessibility
The convenience and accessibility of Stan Store are what eventually changed my initial skepticism. The platform allows anyone, regardless of their technical skill, to quickly set up a landing or sales page.
This ease of use is a crucial factor for many users, especially those who lack the time or technical expertise to navigate more complex systems.
Competitive Pricing and Deals
The initial pricing, though seemingly high, is justified by the platform’s simplicity and effectiveness, particularly for its target audience – the absolute beginner in online marketing. The recent addition of an email service provider at a higher tier adds more value, making it a more comprehensive tool.
Drawbacks of Stan Store
Limitations in Product Availability
One of the criticisms I had of Stan Store was its limited range of features. While its simplicity is its strength, it also means that users looking for more advanced features might find Stan Store lacking. This limitation can be a significant drawback for users as their businesses and marketing skills evolve.
Stan Store Alternatives
In the journey of online entrepreneurship, it’s crucial to explore various platforms to see what aligns best with your business needs. While Stan Store has been a solid choice for me, I’ve also had experiences with other platforms worth mentioning:
Shopify: Shopify is a robust platform for creating online stores. It’s feature-rich and offers a lot of flexibility for those looking to build a detailed and extensive online shop.
WooCommerce: Ideal for WordPress users, WooCommerce seamlessly integrates with your existing site, transforming it into a fully functional e-commerce platform. It’s versatile but can be a bit complex, especially for beginners.
Etsy: Etsy is the go-to marketplace for unique, handmade, or vintage items. It’s less about building your own store and more about joining a vibrant, existing marketplace.
Teachable and Thinkific: Both are excellent for creating and selling online courses. They offer a range of tools tailored for educators and coaches, focusing on course creation and student engagement.
Gumroad: Simple and straightforward, Gumroad is perfect for independent creators selling digital products like books, music, or art directly to their audience.
Kajabi: Kajabi is an all-in-one platform offering tools for online courses, marketing, and website building. It’s ideal for those offering educational content and looking for a comprehensive solution.
Comparison Table: Stan Store vs. Alternatives
Feature/Platform
Stan Store
Shopify
WooCommerce
Etsy
Teachable/Thinkific
Gumroad
Kajabi
Customization
Moderate
High
High
Low
Moderate
Low
High
Ease of Use
High
Moderate
Moderate
High
High
High
Moderate
Target Audience
Creators
General Retail
WordPress Users
Artisans
Educators
Independent Creators
Educators/Marketers
Product Type
Digital
All Types
All Types
Handmade/Vintage
Courses
Digital Products
Courses/Marketing
Pricing Model
Subscription
Subscription
Free (Plugin)
Transaction Fees
Subscription
Transaction Fees
Subscription
This table gives a quick overview of how Stan Store compares with its alternatives in terms of customization, ease of use, target audience, product type, and pricing model. Each platform has its strengths, and the best choice depends on your specific business needs and goals.
Is Stan Store Worth it?
After diving deep into Stan Store and comparing it with its alternatives, the big question remains: Is Stan Store worth it? Based on my experience and the insights I’ve gathered, my answer leans towards a yes, especially for a specific audience.
Stan Store stands out for its sheer simplicity and focus on digital content creators. If you’re just starting out or find yourself overwhelmed by the complexities of more advanced platforms, Stan Store offers a welcoming and straightforward path. The ease of setting up a sales or landing page, combined with the platform’s focus on digital products, makes it an attractive option for creators who want to monetize their content without the hassle.
The pricing, initially a point of skepticism for me, actually makes sense when you consider the target audience and the features offered. For beginners and those not ready to navigate the complexities of platforms like Shopify or WooCommerce, Stan Store’s $29 monthly fee for the Creator plan is a reasonable investment.
And for those looking to scale up, the Creator Pro plan, despite its higher price, brings in advanced features that could justify the cost as your business grows. If you’re not sure Stan Store is a good fit, the 14-day free trial might be exactly what you need.
Bottom Line – Stan Store Honest Review
In conclusion, while Stan Store might not be the one-size-fits-all solution for every online entrepreneur, it certainly has carved out its niche. It’s a platform that understands and caters to the needs of digital content creators, making it a worthwhile consideration for those in its target demographic.
As with any tool, it’s about finding the right fit for your specific needs, and for many creators, Stan Store could be just that.
To try Stan Store for free, click here for a 14-day trial.
FAQ – FAQs- Stan Store Review
Stan Store is best suited for digital content creators, including online coaches, influencers, micro-influencers, UGC creators, and digital product creators. It’s also a great fit for anyone looking to streamline their ‘link in bio’ to convert followers into customers.
Stan Store seamlessly integrates with social media platforms like Instagram and TikTok. The integration allows creators to direct their social media audience straight to their Stan Store via a ‘link in bio’, facilitating immediate purchases without leaving the social media app.
Stan Store is designed with simplicity in mind, making it extremely user-friendly for beginners. The platform’s intuitive interface allows for easy navigation and quick setup, even for those with little to no technical background.
Stan Store has two pricing plans: the Creator Plan at $29 per month or $300 annually, and the Creator Pro Plan at $99 per month or $948 annually, with each plan catering to different levels of business needs.
About the Author
Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.
Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.
While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.
Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of AWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
All third party trademarks, including logos and icons, referenced in this website, are the property of their respective owners. Unless otherwise indicated, the use of third party trademarks herein does not imply or indicate any relationship, sponsorship, or endorsement between Good Financial Cents® and the owners of those trademarks. Any reference in this website to third party trademarks is to identify the corresponding third party goods and/or services.
Content is based on in-depth research & analysis. Opinions are our own. We may earn a commission when you click or make a purchase from links on our site. Learn more.
Home » Make Money » Systeme.io Review
Written By:
Updated: January 8, 2024
5 Min Read
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GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.
These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.
Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.
Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.
Systeme.io has emerged as a versatile tool in the digital marketing landscape, often met with initial skepticism due to its bold claim of being an all-encompassing, free platform. This skepticism is not uncommon; many assume that a free, all-in-one software solution might compromise on quality.
However, as experienced firsthand, Systeme.io defies these expectations, offering robust functionality that genuinely surprises new users.
The platform serves a multifaceted purpose, aiming to simplify the digital marketing process. It’s designed for entrepreneurs and businesses seeking an integrated solution for email marketing, sales funnels, website building, and more. The importance of such a tool lies in its ability to streamline various marketing tasks, which are often scattered across different platforms, into one cohesive system.
How Systeme.io Works
The user interface of Systeme.io is a standout feature, characterized by its user-friendly design. This ease of use is particularly appealing to those who are new to digital marketing tools. The interface is intuitive, making navigation and operation straightforward, which is a stark contrast to the often complex dashboards of similar tools.
At the core of Systeme.io are several key features that make it a comprehensive digital marketing solution. These include email marketing capabilities, sales funnel creation tools, a website builder, options for hosting membership sites, and affiliate program management.
Each of these features is designed to work seamlessly with the others, providing a unified experience. For instance, the email marketing service is notably efficient, rivaling established providers like ConvertKit, AWeber, and MailChimp, especially with its free subscription model that remains functional up to a certain point.
Features of Systeme.io
Email Marketing: Systeme.io’s email marketing tool is not just about sending emails. It allows you to segment your audience, create personalized email campaigns, and track the performance with detailed analytics. For instance, you can segment your audience based on their behavior, like those who clicked a specific link in your last email. This level of customization ensures that your messages are targeted and effective.
Sales Funnel Builder: The sales funnel builder is a standout feature. It’s not just about creating a sequence of pages; it’s about guiding your potential customers on a journey. You can set up a funnel that starts with a landing page, leads to a product page, and ends with a thank you page, all while tracking user behavior. The drag-and-drop interface makes it easy to design each step, and you can add elements like pop-ups or forms to capture leads.
Blogging and SEO: Systeme.io’s blogging platform is straightforward yet powerful. You can create SEO-friendly blog posts with ease, thanks to features like customizable URLs, meta tags, and integration with Google Analytics. This ensures that your content is not only engaging but also ranks well in search engine results.
Automation and Workflow: Automation in Systeme.io is about saving time and creating efficient processes. For example, you can set up an automation rule to send a welcome email to new subscribers or trigger a specific action when someone purchases a product. This feature simplifies complex marketing tasks, making it easier to manage large-scale campaigns.
Affiliate Program Management: With Systeme.io, you can run your own affiliate program. This means you can recruit affiliates, track their performance, and manage payouts all within the same platform. It’s an excellent way for businesses to expand their reach without a significant increase in marketing spend.
One of the most significant benefits of Systeme.io is its cost-effectiveness. The platform offers a surprising amount of functionality without any initial investment, making it an attractive option for entrepreneurs and small businesses with limited budgets. This aspect was particularly striking, as it’s rare to find a platform that provides such a wide range of features for free.
Another major advantage is the all-in-one nature of Systeme.io. It eliminates the need for multiple subscriptions to different services, consolidating essential marketing tools into one platform. This not only simplifies the management of digital marketing activities but also ensures better integration and efficiency. The platform’s ease of use is a testament to its well-thought-out design, catering to users who may not have extensive experience in digital marketing.
Drawbacks of Systeme.io
Despite its many strengths, Systeme.io is not without its limitations. One notable drawback is the limited customization options. While it offers a range of templates and a user-friendly interface, users who desire more advanced customization may find the platform somewhat restrictive compared to more specialized software.
Scalability can also be a concern with Systeme.io. As businesses grow, their needs become more complex, and the platform may not be able to keep pace with these evolving requirements. This is particularly relevant for larger businesses or those with highly specialized needs. Additionally, while Systeme.io integrates well within its ecosystem, it may have limitations when it comes to integrating with external tools and services.
Systeme.io Pricing Structure
The pricing structure of Systeme.io is one of its most appealing aspects. The platform operates on a freemium model, offering significant functionality without any cost for up to 2000 contacts or email subscribers and three sales funnels. This approach allows users to thoroughly test and experience the platform before committing financially.
When compared to competitors, Systeme.io’s pricing is highly competitive. For instance, platforms like ClickFunnels offer powerful functionality but at a higher cost, typically starting at around $100 per month after a free trial. This can be a significant investment, especially for new entrepreneurs or small businesses. In contrast, Systeme.io’s paid plans, which provide access to a broader range of features, are more affordable, starting at less than $30 a month.
Comparative Analysis with Other Tools
To provide a broader perspective, let’s compare Systeme.io with other popular tools in the market:
Feature/System
Systeme.io
ClickFunnels
HubSpot
Kartra
Email Marketing
Advanced segmentation and automation
Basic email functionalities
Comprehensive email tools with CRM integration
Advanced automation and lead scoring
Sales Funnel Builder
Intuitive drag-and-drop builder
Highly customizable funnels
More focused on inbound marketing
Similar to ClickFunnels with added features
Blogging and SEO
Basic but effective SEO tools
Not a primary feature
Advanced SEO and content strategy tools
Limited blogging capabilities
Automation and Workflow
Simple automation rules
Complex automation capabilities
Extensive automation with CRM integration
Advanced automation but steeper learning curve
Affiliate Program Management
Integrated affiliate management
Available but less intuitive
Not a core feature
Robust affiliate management system
Pricing (Starting Plan)
Free plan available
$97/month
$45/month
$99/month
This comparison shows that while Systeme.io offers a comprehensive suite of tools at an affordable price, platforms like HubSpot and Kartra provide more advanced features in certain areas but at a higher cost. ClickFunnels, on the other hand, is more expensive but offers highly customizable funnel-building capabilities.
User Reviews and Testimonials
User reviews and testimonials play a crucial role in understanding the real-world effectiveness of Systeme.io. Many users have shared success stories, highlighting how the platform has helped them streamline their marketing efforts and grow their businesses. These positive experiences often emphasize the platform’s ease of use, comprehensive feature set, and excellent value for money.
However, it’s also important to consider critiques and common issues raised by users. Some have pointed out the limitations in customization and scalability, as mentioned earlier. These critiques are valuable for potential users to set realistic expectations and for the platform’s developers to identify areas for improvement.
Systeme.io for Different Business Sizes
Systeme.io’s suitability for small businesses is one of its key strengths. Its simple interface, combined with a comprehensive set of tools, makes it an ideal choice for small enterprises looking to establish or expand their online presence without a significant investment in multiple tools or platforms.
For medium to large enterprises, the relevance of Systeme.io can vary. While it offers a solid foundation for digital marketing, larger businesses with more complex needs might find the platform somewhat limiting. However, for businesses at the cusp of growth, Systeme.io can be an excellent tool to start with, providing a cost-effective solution for scaling up their marketing efforts.
Final Verdict on Systeme.io
The overall assessment of Systeme.io is overwhelmingly positive, especially when considering its target audience of small businesses and entrepreneurs. The platform offers a remarkable range of features at an unbeatable price point, making it an excellent choice for those starting their digital marketing journey or looking to consolidate their marketing tools.
The recommendation for specific user groups would vary based on their size, needs, and experience in digital marketing. For beginners and small businesses, Systeme.io is an excellent choice, offering everything needed to get started with digital marketing. For more established businesses or those with very specific needs, it might serve as a stepping stone before moving on to more specialized or advanced platforms.
About the Author
Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.
Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.
While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.
Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of AWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
All third party trademarks, including logos and icons, referenced in this website, are the property of their respective owners. Unless otherwise indicated, the use of third party trademarks herein does not imply or indicate any relationship, sponsorship, or endorsement between Good Financial Cents® and the owners of those trademarks. Any reference in this website to third party trademarks is to identify the corresponding third party goods and/or services.
Mortgage rates barely changed this week, but experts still expect further declines in 2024.
The average rates for 30-year loans inched up to 6.62% from 6.61% a week ago, according to tracking by Freddie Mac on Thursday. Aside from this week’s minuscule rise, rates have been declining for weeks since late October, falling nearly 117 basis points from a 12-month high of 7.79% at the end of October.
Those recent declines have boosted homebuyers’ ability to purchase homes, but further affordability improvement could be curbed by a continual supply shortage, especially if lower rates bring back sidelined demand.
“While mortgage interest rates are expected to overall decline in 2024, minor fluctuations in weekly mortgage interest rates are to be expected,” Jessica Lautz, National Association of Realtors’ deputy chief economist, wrote to Yahoo Finance.
“The biggest demand is likely to come from those who had been priced out of the homebuying market. For spring, there will likely be competition among the steady share of all-cash homebuyers and first-time buyers trying to edge in,” Lautz added.
Read more: Mortgage rates decline. Is 2024 a good time to buy a house?
Rate drop improving affordability
The national median monthly mortgage payment on purchase applications fell by $62 to $2,137 in November from the month prior, according to the Purchase Application Payments Index (PAPI).
“Homebuyer affordability improved in November, with a decline in mortgage rates, providing relief to prospective homebuyers,” Edward Seiler, MBA’s associate vice president, said in a press release. “MBA expects that affordability conditions will continue to improve as mortgage rates decline, which should generate increased demand heading into the spring homebuying season.”
A decrease in PAPI — indicating stronger affordability — can be attributed to a reduction in borrowed loan amounts, a drop in mortgage rates, and an increase in incomes.
However, homebuyers’ ability to afford homes is still lower than a year ago. Mortgage applicants are paying $160 more, or 8.1% higher, each month compared to the national median mortgage 12 months ago. While rates didn’t increase substantially this week, homebuyers today are still paying 14 basis points more than 12 months ago, when the average 30-year mortgage rate was 6.48% on Jan. 5, 2023, according to Freddie Mac rates archive.
Read more: How to buy a house in 2024
Many experts are predicting further rate drops in 2024, though. As the US economy is expecting a soft landing — where inflation curbs without a national recession — rates are poised to drop to around 6% or potentially lower by the end of 2024.
“If inflation continues to show signs of improvement and the bond market remains less turbulent than during much of 2023, mortgage rates should at the very least stabilize this year, if not show sustained declines,” Jacob Channel, LendingTree’s senior economist, predicted for 2024 housing and economic market.
Affordability curbed by lack of listing
Housing experts warned that limited inventory could restrain affordability improvement achieved by declining rates. Without adequate supply, sidelined prospective buyers returning to the market could outpace the housing supply and increase competition.
“Homeowners may still be reticent to move from low interest rate mortgages, which may be in the 2.5% to 3.5% range, until they are in a situation where a life or job change occurs forcing them to reconsider their living situation,” Lautz said.
Total inventory of unsold existing homes, not including new constructions, declined 1.7% from the previous month to 1.13 million units at the end of November, according to the National Association of Realtors. This is the equivalent of 3.5 months of supply on the market, nearly 2.5 months lower than what experts believe to be a balanced and healthy market of 6 months.
For context, today’s existing home inventory levels are relatively close to the record low of 860,000 units in January 2022 compared to the record high of 4.04 million units in July 2007.
But inventory could still see a slight uptick as more sellers reach their “tipping point,” or the rate level at which homeowners are willing to sell their homes. Most homeowners — nearly 92% — have rates below 6%, Redfin says. But as rates drop to 6% or below, more owners could be open to selling. This would reverse the mortgage rate lock phenomenon that slowed the housing market in 2023 when most homeowners refrained from selling to keep their lower-than-market rates.
However, experts don’t expect a significant jump in inventory that could bring down home prices, as roughly 4 in 5 homeowners still have rates below 5%, and one-quarter have rates below 3%.
“We are not going to see a big turnaround,” Danielle Hale, Realtor’s chief economist, said on 2024’s affordability challenges during NAR’s Real Estate Forecast Summit. “But I do think we are going to see baby steps in the right direction.”
Rebecca Chen is a reporter for Yahoo Finance and previously worked as an investment tax certified public accountant (CPA).
Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more
Read the latest financial and business news from Yahoo Finance
Whether you’re buying a house or a car, financing a wedding or vacation, embarking on a major home renovation, paying for rising medical costs, or even consolidating debt, you might need to take out a loan.
But what about when you’re retired?
Even though they don’t earn a traditional income from a paying job, retirees can still take out loans. Requirements for retirees to secure a loan might be a little stricter, but it’s certainly possible.
Below, we’ll dive into loans for retired people — how they work, common types, and where to find them.
What Are Retiree Loans?
A retiree loan is any loan that you take out in retirement. It doesn’t refer to one specific type of loan, but rather a collection of loan types available to anyone in retirement, as long as they qualify.
Qualifying for a loan as a retiree can be more challenging than someone who is still employed full-time, since lenders like to see steady income. But many retirees have reliable sources of income outside of a job that can help them qualify. 💡 Quick Tip: Some personal loan lenders can release your funds as quickly as the same day your loan is approved.
Considerations for a Loan
When considering loans for retired individuals, lenders may consider a number of income sources, as well as an applicant’s debt-to-income ratio and credit score.
Retirement Income
One of the main sources of income for seniors who no longer work is their retirement accounts. If you are retired, you might receive regular payments from an IRA, 401(k), pension, and/or Social Security.
Collectively, these accounts make up your retirement income. And they may be significant enough to take out a retiree loan, like a personal loan, car loan, or even a mortgage.
Fixed Income
Retirees may have other sources of fixed income beyond their retirement income. For example, retirees might earn income from investments, earn annuity income, or receive spousal or survivor’s benefits. Retirees may also generate revenue from rental properties.
If any of these are limited sources of income — that is, they’ll run out eventually — the lender might require proof that you’ll at least receive that income for a set number of years. Without that proof, they might not factor in that source of income when determining loan eligibility.
Some retirees continue to work, whether full- or part-time or even as a contractor. If you’ve taken up a side hustle, like driving for a rideshare service or acting as a consultant in the field from which you retired, your 1099 income may also help when applying for a loan in retirement.
Assets
Retirees who have a significant portion of their money tied up in assets may be able to leverage those assets to secure a loan. For example, mortgage lenders might offer a securities-backed loan.
Securities-backed loans offer retirees liquidity without selling their assets. Instead, the lender can claim ownership of your assets — stocks, bonds, and real estate, for instance — if you default on your loan.
Because investment values fluctuate, a lender will likely consider only a reduced value of your assets (up to 70%). This protects them in the event that your assets decrease in value during the life of the loan.
Debt-to-Income Ratio
Lenders consider more than just your income when you apply for a loan, especially in retirement. They’ll also look at your debt — and thus your debt-to-income (DTI) ratio.
Your debt-to-income ratio is a calculation of all your monthly debts divided by your gross monthly income. This might include credit card debt, mortgage payments, car loans, personal loans, and even student loans.
For example, if your monthly debts total $2,000 and your monthly income is $10,000, your DTI ratio is 2,000 / 10,000. That’s 0.20, or 20%.
The higher your DTI ratio, the less likely a lender is to approve you for a loan. While requirements will vary by lender and the type of loan you’re applying for, you’ll likely have a harder time securing a loan if your debt-to-income is 50% or higher.
Credit Score
As with any other loan, lenders will also factor in your credit score when you apply for a retiree loan. By improving your credit score, you increase your chances of getting a loan.
So what affects your credit score? Generally, five key factors can influence your rating:
• Credit utilization
• Payment history
• Credit history length
• Credit mix
• New credit
Retirees generally have longer credit histories, especially if they keep credit cards open and have been paying a mortgage for decades. By paying your bills on time, keeping your credit usage down, and resisting the temptation to apply for new credit cards, retirees may be able to raise their credit scores ahead of applying for a larger loan in retirement.
Where to Find a Retiree Loan
Retirees can look for loans in the same places that other borrowers do. Financial institutions like banks and credit unions generally offer a wide range of loans, from mortgages and car loans to personal loans and debt consolidation loans. Your own bank or credit union is a good place to start.
Where you get a retiree loan can also depend on the type of loan. For example, if you’re purchasing a new car, the dealership may help you find financing. When you work with a real estate agent to buy a home, they might put you in touch with a lender.
Common Retiree Loans
Retirees have access to a wide range of loans depending on their needs. Here are some of the most common types of retiree loans you might come across:
Home Equity Loan
A home equity loan allows you to borrow against the equity you’ve built in your house. You generally need to have paid off at least 15% to 20% of your home to have enough equity for a loan; the more you’ve paid off, the larger the loan could be.
You might use a home equity loan to fund a renovation project, medical payments, or even debt consolidation. But remember, your house serves as collateral, so it’s important to make your payments.
Reverse Mortgage Loan
Reverse mortgage loans are available to people who are 62 or older who have paid off most of their mortgage or own their homes outright. When you get a reverse mortgage, you retain the title to the home and don’t have to pay the loan (and interest) until the last surviving borrower has moved out permanently.
Reverse mortgage loans are not for everyone. Weigh the pros and cons of a reverse mortgage before moving forward.
Debt Consolidation Loan
Retirees who are struggling with various debts may choose to consolidate in a single loan, ideally at a lower interest rate. Consolidating your debt means only a single monthly payment, but it could extend the number of years it’ll take you to be debt-free. 💡 Quick Tip: Swap high-interest debt for a lower-interest loan, and save money on your monthly payments. Find out why SoFi credit card consolidation loans are so popular.
401(k) Loan
If you’re strapped for cash ahead of retirement, you may be able to borrow from your 401(k) account balance before you start receiving distributions. Doing so has certain tax implications to review with your accountant.
Unfortunately, you cannot take out an IRA loan, though if you’re 59 ½ or older, you may be able to make early withdrawals penalty-free.
Personal Loan
You can take out a personal loan for almost anything — wedding costs, home improvements, even credit card debt consolidation. Personal loan interest rates and terms vary depending on the length of the loan. For example, SoFi offers personal loans with low interest rates, and there are no fees required.
Just make sure you have the right credit score for a personal loan before applying. Bad credit borrowers may qualify, but the interest rates can be significantly higher.
Payday Loan
Seniors in retirement may also take out payday loans in an emergency, but keep in mind that there are a lot of risks with payday loans, including high costs.
Requirements for Getting a Personal Loan as a Senior Citizen
Lenders have similar requirements for all applicants, including retirees. The notable difference is that your sources of income will be different from an employed individual receiving a steady paycheck.
Here’s what lenders will generally look for when deciding to approve your loan application:
• Your sources of income (retirement distributions, Social Security, investment revenue, part-time work, etc.)
• Age (some lenders may not give out loans to borrowers who are 75 or older)
• Credit score
• Debt-to-income ratio
• Collateral or assets
The Takeaway
Retiree loans refers to any loan you take out in retirement. Depending on your needs and financial goals, it may make sense to apply for a personal loan, home equity loan, 401(k) loan, debt consolidation loan, or other loan type. Retiree loan requirements are similar to those of any other borrower; you’ll just have to demonstrate other sources of income since you’re no longer employed full-time.
You’ll also need a low debt-to-income ratio and a high credit score.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2023 winner for Best Online Personal Loan overall.
FAQ
What are retiree loans?
Retiree loans are any type of loan you get in retirement. Retirees may take out personal loans, mortgages or reverse mortgages, home equity loans, and even debt consolidation loans.
What are the requirements for a retiree loan?
Requirements for a retiree loan are similar to those of other borrowers. Lenders will need to see all your sources of income, and you’ll also need a low debt-to-income ratio (generally below 50%) and high credit score (requirements vary by type of loan). You’ll also need assets to back up a secured loan.
Where can I get a retiree loan?
Retirees can look for loans anywhere that other borrowers might apply for a loan. Common retiree loans include home equity loans, 401(k) loans, debt consolidation loans, and personal loans. Because retirees typically no longer have a traditional source of income (i.e., a paying job), they may have to meet additional requirements to qualify for a loan.
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