Capital One announces new 1:1 transfer tier, additional travel partners and more airport lounge details – The Points Guy


New transfer partners, 1:1 transfer tier for Capital One miles — The Points Guy


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Source: thepointsguy.com

New Refinance Program Probably Won’t Mean Much

Last updated on January 9th, 2018

refinance

During President Obama’s speech to the nation last week, he mentioned that the White House would be working with the federal housing agencies to help more homeowners refinance their mortgages at today’s low rates.

And on Friday, the Federal Housing Finance Agency (FHFA) released a statement, noting that it “has been reevaluating an existing program, the Home Affordable Refinance Program (HARP), to determine if there are ways to extend the benefits of this refinance product to more borrowers.”

Currently, in order to be eligible for a HARP refinance, a borrower must have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac, be current on mortgage payments, and have a first mortgage that does not exceed 125 percent loan-to-value.

That last bit seems to be the issue at hand, as there are scores of borrowers who meet the first two guidelines, but not the third.

To give you an idea, 85 percent of the Miami and Orlando MSAs were underwater as of last year, with average LTV’s of 150% and 140%, respectively.

In Riverside, California, the average LTV was around 164 percent last year, and has probably worsened since then.

So pretty much all of the hardest-hit borrowers haven’t been eligible for HARP.

LTV Ceiling Lifted?

Under the new refinancing plan, the LTV ceiling would be lifted or possibly removed, allowing these types of borrowers to refinance to take advantage of the record low mortgage rates currently available.

But it’s very likely that you would still need to be current on mortgage payments to qualify.

And while the new proposal sounds decent in theory, many of these borrowers have been grappling with a lack of home equity for years now.

So if they were going to walk away, they probably would have by now. Or they would have at least missed a payment or two.

If payments are lowered for the select few who have stuck it through, but are deeply underwater, they’re still left holding onto a house worth much less than the mortgage.

How much better off will someone be paying $200 less per month on a $300,000 mortgage worth just $150,000?

Even if it does make a big difference, the program still banks on mortgage rates remaining low and home prices reversing course in a major way, as it doesn’t address principal forgiveness.

Targeting the Wrong Group?

Then there are the homeowners with mortgages not backed by Fannie and Freddie, which while far fewer in number, account for a huge chunk of the problem loans.

A few years back, former FHFA director James B. Lockhart noted that these private-label securities accounted for 62 percent of all seriously delinquent mortgages, and thus, were the root of the problem.

These have yet to be addressed on a large scale, and probably won’t be, aside from on a case-by-case basis.

And so there may be some economic stimulus associated with this program (more money in some pockets), but it certainly won’t be a silver bullet.

Perhaps only time will sort things out, as impatient as we are.

Concrete details of the program should emerge later this month…

Read more: Can I refinance with negative equity?

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for 15 years.

Source: thetruthaboutmortgage.com

GAP To Move Card Issuers From Synchrony To Barclays ($1 Billion)

WSJ is reporting that GAP will change credit card issuers for it’s private label and co-branded credit cards for brands such as Athleta, Banana Republic and Old Navy. The existing issuer is Synchrony and the new card issuer will be Barclays. Synchrony has previously held this relationship for approximately 22 years.

The changeover is expected to happen sometime around April 2022 when the existing contract ends and Synchrony is expected to earn $1 billion from the sale. As part of the sale Barclays has purchased the backbook meaning that existing cardholders will be brought over to Barclays in the sale.

Unfortunately it’s probably bad news for all of the spending offers we regularly see on these cards, as previously 80% of the card programs cost was incurred by GAP.

Hat tip to reader John L

Source: doctorofcredit.com

16 Best Ways to Save Money at Pottery Barn in 2021 – Discounts & Sales

If you’ve ever gone shopping for home decor, furniture, and bedding, you’ve probably visited a Pottery Barn.

The Williams Sonoma subsidiary is best known for its upscale products and stunning floor displays. Since its founding in 1949, Pottery Barn has branched out into Pottery Barn Kids and Pottery Barn Teens to appeal to a wider audience.

Despite these changes, Pottery Barn has always maintained a premium status for their brand. But if you’re shopping on a tight budget, there are numerous creative ways to save money at Pottery Barn.

Between in-store hacks and ways to save money on furniture and home furnishings, you probably don’t have to pay full price when you hit up this popular retailer.

Best Ways to Save Money at Pottery Barn

Pottery Barn is unlikely to compete on pricing with more affordable retailers like Ikea. But you don’t have to pay full price just because a store is stylish.

Many money-saving Pottery Barn hacks can help you make your next home furnishings upgrade affordable without sacrificing quality.

1. Join The Key Loyalty Program

The easiest saving trick every shopper can use is to join The Key member rewards program. This loyalty program extends to Williams Sonoma’s family of brands, meaning it covers Williams Sonoma and Pottery Barns along with Mark and Graham, and West Elm.

Joining The Key is free. You start by picking your favorite brand and then sign up for The Key through that brand’s website. To sign up, provide your name, email, address, phone number, and birthday.

Once you’re a member, benefits include:

  • Earring 3% cash back across the family of brands
  • Getting exclusive access to new deals and releases
  • Using Pottery Barn and Williams Sonoma’s free design service

You can redeem cash back as store credit across any Williams Sonoma family store once you reach $15. You can use cash-back rewards from The Key program with your cash-back credit card rewards to increase your savings, and you can redeem your balance online or in-store.

2. Follow Local Stores on Social Media

You can follow Pottery Barn on social media if you want general updates about sales and country-wide initiatives. However, truly frugal shoppers are better off following their local stores.

Local store pages are useful for several reasons. For starters, you can reference them to find store hours or a contact number and to check whether the store’s open on holidays.

Additionally, local stores post photos of their inventory and sales. That’s when you can find specific pieces on clearance or products that are only in stock at your preferred location.

But note that not every Pottery Barn has a local Instagram, Facebook, or Twitter.

3. Sign Up for Pottery Barn Emails

If you want a low-effort way to save, sign up for the Pottery Barn email list.

Subscribers receive information about exclusive sales and promotions, so you can wait for a sale or event before you shop. You also learn about new Pottery Barn products and upcoming store events.

4. Use Online Pottery Barn Coupons

Another trick to save money at Pottery Barn is to use online coupons.

There are numerous online coupon databases you can search for deals, including:

These websites let you activate online coupon codes before shopping, potentially earning percent discounts and perks like free shipping.

Similarly, you can also use shopping browser extensions for online shopping to automatically apply available coupons at checkout. Two popular browser extensions that work with Pottery Barn are Capital One Shopping and Honey.

Both extensions apply coupon codes at checkout, ensuring you don’t miss out on savings. Both platforms also let you earn rewards by shopping at hundreds of partner retailers.

An advantage of using extensions over coupon websites is that you don’t waste time manually searching for coupon codes on the Internet. However, it’s important to note that coupon codes don’t always work, and you might find a particular website or extension works better for you than others.

Capital One Shopping compensates us when you get the Capital One Shopping extension using the links we provided.

5. Shop With Discount Gift Cards

If you shop at Pottery Barn frequently or are planning a shopping spree, buying discount gift cards is a simple way to save more money.

People regularly sell unwanted gift cards to marketplaces that then resell them at a discount. Usually, discounts range from 1% to 2%, so you can buy a $50 Pottery Barn gift card for around $48.

That’s not a lot, but for larger purchases, discount percentages often increase. For example, on some discount gift card websites, you can find $100 and $500 Pottery Barn gift cards with $10 to $20 discounts.

Some popular gift card marketplaces include:

Gift card availability and denominations vary based on supply and demand. Raise generally has the most extensive collection, and you can usually find Pottery Barn gift cards ranging from $25 to $100.

Plus, new members get a 10% discount bonus with the coupon code “FIRST” for a maximum savings of $20.

Since more significant discounts provide the most savings, the key is to plan your Pottery Barn shopping trip. That way, you know exactly how much money you need and don’t overspend on gift cards.

6. Understand Shipping Rates

At Pottery Barn, shipping costs depend on your total order price and whether you want standard shipping or next-day shipping. Standard shipping arrives in four to five business days and upgrading to next-day costs $26.

To potentially save more, consult Pottery Barn’s shipping rates and fees table. For orders under $200, you’re looking at up to $21 in shipping fees. However, orders of $200.01 or more charge 10% in shipping until you reach $3,000 or more, at which point shipping costs drop to 5% of your total order value.

If you’re on a massive Pottery Barn shopping spree, consider what a 5% or 10% shipping rate does to your bill.

For example, at $2,900, you’re looking at $290 in shipping costs. However, spending $100 more to reach $3,000 brings shipping costs to $150, netting you $40 in total savings.

If you’re close to a shipping-reduction threshold but don’t need anything else, ask friends and family if they need anything or think about any upcoming gifts for birthdays and holidays. But crunch the numbers.

If buying a low-cost product still saves you significant cash, it’s worth it. You can always donate unwanted merchandise and get a charitable donation tax deduction. Just check the sale and clearance section for deals.

Finally, look for products that are available for pickup when shopping online. If you live near a Pottery Barn, making the drive is probably worth it to avoid paying for shipping.

7. Shop on Clearance

If you want to find Pottery Barn products at a discount, your best bet is to wait for a clearance sale or floor sales event.

Pottery Barn’s website has a sales section, so you can begin your search for deals online. But visiting your local Pottery Barn allows you to find markdown products the retailer doesn’t advertise online.

Occasionally, Pottery Barn also sells floor models during floor sales events. That includes furniture and other inventory previously used for in-store displays, which the company can’t sell as new. This inventory often has minor scratches or dents but is sold at a discount.

If you don’t mind buying furniture with a potential scratch or two, floor sales are worth keeping an eye on. Alternatively, check the online clearance section regularly to look for deals.

8. Shop Off-Season

Chances are you’ve tried shopping off-season to save money on clothing or back-to-school supplies. But have you ever considered shopping off-season for home decor?

Like other retailers, Pottery Barn rotates their floor displays and inventory to match the upcoming season. So you can buy a set of summer linens and bright throw pillows as you enter the fall to save money in the long run.

9. Visit a Pottery Barn Outlet Store

Pottery Barn has several outlet stores where you can find floor models, returns, overstocked inventory, and slightly damaged or worn inventory it can’t sell in regular stores.

Essentially, outlet stores help Pottery Barn liquidate excess and gently used merchandise, which means you can potentially find discounts.

Currently, the following states have one or more outlet locations:

  • Arizona
  • California
  • Georgia
  • Illinois
  • Massachusetts
  • Michigan
  • Missouri
  • New York
  • Ohio
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Virginia

Just remember: Outlet prices aren’t always lower than the regular retailer, and you should also factor travel time into your bargain hunt. When in doubt, call ahead and ask for specific pricing on pieces you’re considering and for a store attendant to check product availability.

You can also sign up for Pottery Barn Outlet emails to receive outlet store-specific newsletters about new product arrivals and deals.

10. Buy Gently Used Pottery Barn Products

If you don’t live near an outlet, you can shop at companies that resell used and like-new Pottery Barn products at lower prices.

Several websites where you can find used Pottery Barn products include:

You can also shop on auction sites like eBay if you don’t mind bidding and potentially negotiating with sellers.

Selection can be limited when looking at resellers, but the effort is worth it if you find your next living room set or coffee table for half the price.

11. Use the Pottery Barn or Other Cash-Back Credit Card

The Pottery Barn credit card is perfect if you’re a serious Pottery Barn shopper. There are zero fees and plenty of perks. For example:

  • Earn 10% back for shopping at Pottery Barn, Pottery Barn Kids, and Pottery Barn Teens when you spend $250 or more on a single purchase.
  • Receive early access to sales, limited-edition collaborations, and information on new arrivals.
  • Shop for $0 down with 12 months of financing on purchases of $750 or more.

The 10% back in reward points is the primary selling point for this card. For example, if you spend $3,000 redesigning your living room, that’s $300 in rewards — not bad for a no-fee credit card.

However, you must spend $250 in one transaction to get the reward, which severely limits the usefulness of this card if you don’t spend much money on your Pottery Barn trips.

If that’s the case, shop with some type of cash-back credit card to maximize savings.

Cards like the Chase Freedom Unlimited® (read our Chase Freedom Unlimited review) and American Express Blue Cash Preferred® card (read our American Express Blue Cash Preferred review)  are excellent options that have welcome bonuses and cash-back rewards for everyday spending, making them a better choice if you don’t frequently shop at Pottery Barn.

12. Take Advantage of the Military Discount

If you’re an active military member or veteran, you and your family can take advantage of Pottery Barn’s 15%-off military discount. This discount also applies to Pottery Barn Kids and Teens as well as Williams Sonoma.

Plus, military members also get 10% off on electronics at Williams Sonoma.

13. Create an Online Registry

If you have an upcoming wedding or want to save money on newborn expenses, Pottery Barn has registries you can use to save money.

The Pottery Barn wedding registry helps your wedding guests shop for gifts you’re actually going to use. Plus, you can add products from any retailer in the Williams Sonoma family of brands to a single registry.

You can also ask a registry expert to help you craft a registry list that suits your style.

After the wedding date, you get a 10% completion discount for up to six months, meaning you have six months to buy out the remaining merchandise on your registry at a discount.

The baby registry from Pottery Barn Kids works the same way, except you get a 20% completion bonus.

14. Save on your New Move

Paying for moving supplies to pack and ship all your stuff adds up fast.

Thankfully, Pottery Barn has several incentives to help keep moving costs down. For starters, you get $15 off when you spend $75 or more on Sherwin-Williams paint.

Since 2 gallons of Sherwin-Williams paint typically costs between $75 and $150, depending on the paint type, that’s generally enough to paint an average-size room if you’re applying two coats.

Note that Sherwin-Williams is on the pricier side, so unless you’re in love with one of its colors or need high-quality paint to cover up darker colors, brands like Behr and Valspar are typically more budget-friendly.

You can also sign up for the New Mover Program to receive a welcome catalog and design advice for your new home. Pottery Barn also offers free design services to new movers.

However, the best part of the moving program is the installation service. The retailer can mount your TV, hang curtains, paint your new home, and assist with other installation and assembly for a small fee.

First, verify the Pottery Barn in your area offers this service. Then get a quote and compare the price to hiring another professional or doing the work yourself.

15. Use the Pottery Barn Employee Discount

Pottery Barn employees get up to 40% off regularly priced merchandise and an additional 20% off on clearance. So if you’re looking for a side gig and have a redesign project coming up, applying to Pottery Barn could be worth it.

Plus, you can use the extra money to help pay for your upcoming project and take the sting out of paying for it with your regular paycheck.

The Williams Sonoma family of brands hires throughout the year, especially during the holidays, so keep an eye out for job postings if you’re considering this saving trick.

16. DIY Pottery Barn Knockoffs

Crafty shoppers might be better off getting creative than paying higher prices for official Pottery Barn items.

If you’re open to a DIY project, start by searching for Pottery Barn knockoffs on Pinterest. A single search yields hundreds of knockoff ideas, tutorials, and decor ideas you can use to transform your home while staying on budget.

Some design bloggers also focus on knockoff DIYs. Knock Off Decor has a category that’s full of Pottery Barn DIY projects that can save you money.

Often, these projects involve purchasing more affordable materials from places like the dollar store or a local hardware store. Some projects simply involve upcycling existing pieces of furniture to match Pottery Barn’s aesthetic.

Just remember to consider your time and level of experience before taking on a DIY project. If you can score massive savings and enjoy working with your hands, the knock-off route is one of the best ways to decorate your home on a budget.

But if you’re busy or just all thumbs, it’s probably a waste of time.


Final Word

Saving money and scoring discounts probably aren’t the first things that come to mind when you think of Pottery Barn. But it’s possible.

However, you should still shop around, especially if you have a massive home renovation project coming up. Retailers like Wayfair, Overstock, Crate & Barrel, and even general retailers like Target often carry cheaper alternatives to Pottery Barn products.

You might have to get creative and mix and match products from different retailers to achieve that Pottery Barn aesthetic. But if shopping at Pottery Barn alternatives saves you money and matches your design vision, it’s worth the effort.

If you’re committed to Pottery Barn, give yourself as much time as you can when planning your home makeover. If you can wait a few months for a clearance event or for specific pieces to go on sale, you can furnish your home with high-quality furniture and home decor without spending a fortune.

Source: moneycrashers.com

Dear Penny: I Have $700K, but Spending Gives Me Panic Attacks

Dear Penny,

I’m a 61-year-old woman with $700,000 saved for retirement. I own my own home (with a mortgage), and I have more than five months of daily expenses in a cash account. I have a few investment accounts in addition to the cash and I basically follow a 60/20/20 budget for my after-tax and after-retirement dollars.  

Why can’t I stop freaking out about money? I save for home repairs, and then freak out when I write the check. I save for a new car and then freak out when it’s time to buy it. I HAVE THE MONEY.

I’m not poor, but I have been cash poor in the past. I have always saved for retirement, but I can’t stop freaking out. And by freaking out, I mean literally days of heart-pounding panic attacks where Xanax is my only friend.  

How do other people handle this? 

-L.

Dear L.,

Fear is healthy to a degree. It’s what makes us wear our seatbelts and avoid dark alleys at night. Some level of money-related fear is also a good thing. If you didn’t worry there was a chance you’d run out of it, why wouldn’t you spend every dollar?

But there’s a big difference between healthy fear and the serious anxiety that you’re experiencing. An advice columnist is no substitute for mental health treatment. Whatever you do, it’s essential that you discuss your anxiety with a professional.

I wish I could tell you that $700,000 is more than enough for you. But that wouldn’t be an honest answer. There’s no way I can tell you with certainty that any level of savings is a guarantee you’ll never run out of money. Even billionaires wind up in bankruptcy court. But there’s plenty you can do to reduce the risk of whatever outcome you fear.

Financial health isn’t just about any one number. That $700,000 could be more than enough if you live in a low-cost area and plan to work for several more years. But if you live in Manhattan, you want to retire next year and people in your family frequently live past 100, it could leave you woefully short. Context is what matters here. The amount you have saved is meaningless without knowing your lifestyle, goals and concerns.

What I’m wondering is how much actual planning you’ve done beyond just saving. Do you have an age in mind for when you want to retire? Have you thought about when you’ll take Social Security? Do you plan to stay in your home and, if so, will you be mortgage-free by the time you retire?

All of this may seem overwhelming to think about when money already causes you so much stress. But worrying constantly plays a mind trick on you. You spend so much brain space and energy on worrying that it can feel like you’re actually taking action.

I want you to do what seems counterintuitive and think about the absolute worst-case scenarios. But I don’t want you doing this alone. I’d urge you to meet with a financial adviser, since you have the means to do so.

Write down your biggest fears so that you can discuss them together. Are you afraid of outliving your savings? Are you worried the market will crash right as you’re about to retire? Or that health care costs will eat up your retirement budget?

A financial adviser doesn’t have any special sourcery that can guarantee none of these things will happen. What they can do, though, is help you reduce the risk of those worst-case scenarios. If you’re worried about running out of money, they can help you plan how much you’ll safely be able to withdraw from retirement accounts and when you should take Social Security. Of course they can’t stop a stock market crash from happening, but they can make sure your investments are safely allocated based on your goals.

It sounds like you’re someone with a low risk tolerance, which means you probably want to invest conservatively. Perhaps a good investment for you would be to pay off that mortgage using a chunk of that savings. Will it be scary to fork over that much money at once? Of course, especially since the interest savings will probably pale compared to your investment returns. But if you can sleep more soundly knowing that what’s probably your biggest expense is taken care of, it could be worth it. I’m not saying that’s something you should absolutely do, but it’s worth discussing with your financial pro.

I suspect that when you think realistically about your worst-case scenarios, you’ll realize things aren’t as dire as you imagined. Suppose for some reason you had to quit working tomorrow. Your plans for retirement would probably change significantly. But at the same time, you wouldn’t be left without food or a home.

You say you’ve been cash poor in the past. Yet you overcame that and even managed to save for retirement when you didn’t have much money. You aren’t doomed to repeat your past.

I think if you do what’s scary and face your fears head-on — with the help of both a financial and a mental health professional — you can reduce the anxiety you feel about money. That’s not to say you’ll never worry about money again. But you can get to a place where fears about money aren’t dominating your life.

Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. Send your tricky money questions to [email protected].

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Source: thepennyhoarder.com

The Best Parks and Green Spaces in Philadelphia

From the moment William Penn, founder of the Colony of Pennsylvania, set aside Philadelphia’s Five Great Public Squares as part of his “Greene Countrie Towne” city plan, Philadelphia has been recognized for its amazing public green spaces and parks, large and small, urban and woodsy. Nearly every neighborhood contains an inviting, safe, inspiring public space. But what are some of the best?

Fairmount Park

Fairmount Park PhiladelphiaFairmount Park Philadelphia
Fairmount Park

Every discussion of Philadelphia parks must start with Fairmount Park, the largest space within the world’s largest urban park system.

Stretching from the Strawberry Mansion to the Spring Garden neighborhoods, the East Park half of Fairmount Park lies on the Schuylkill River’s east bank. This side features scenic running and biking trails that wind past historic sites such as The Philadelphia Museum of Art and Boathouse Row, with its famous light display, large plateaus near Brewerytown, which include the Sedgley Woods Disc Golf Course and Strawberry Green Driving Range and the vast Fairmount Park Athletic Field, where you can hop into a pickup hoops game or join an organized sports league. For a quieter outing, the recently renovated East Park Reservoir is one of the best bird-watching enclaves in the city.

Across the river, though still in Fairmount Park, the West Park runs from the Wynnefield neighborhood down to Mantua. Here you can take the kids to the first-in-the-nation Philadelphia Zoo, the Please Touch Museum or the John B. Kelly Pool right next door.

For a more adult excursion, take in a concert and an amazing view at the Mann Center for the Performing Arts or fling a Frisbee at the Edgely Ultimate Fields. In the winter, Philadelphians of all ages take to Belmont Plateau for the city’s best sledding hills.

Wooded parks

Wissahickon Valley ParkWissahickon Valley Park
Wissahickon Valley Park

For everything Fairmount Park has to offer, other city parks boast their own perks. The expansive Wissahickon Valley Park extends from Chestnut Hill through East Falls in North Philly. There you’ll find people on mountain bikes and on foot traveling the winding gravel paths of forested Forbidden Drive, youngsters learning while having fun at the Wissahickon Environmental Center Tree House and anglers casting into the trout-stocked Wissahickon Creek.

Running from Bustleton to the Delaware River in Northeast Philly’s Holmesburg section, Pennypack Park is a 1,300-acre wooded creekside hiking and biking oasis that provides nature programs at Pennypack Environmental Center, a full working farmstead with cattle, sheep, pigs and chickens at Friends of Fox Chase Farm, and King’s Highway Bridge, the oldest in-use stone bridge in America.

In extreme South Philly, you’ll find Franklin Delano Roosevelt Park, adjacent to the professional sports complex, which contains a full 18-hole golf course, a nationally-celebrated skateboard park and the Meadow Lake Gazebo, long a popular spot for wedding photos.

The John Heinz National Wildlife Refuge at Tinicum, a little farther south in Eastwick next to the Philadelphia International Airport, is a top hiking, canoeing and fishing spot within a stunning environmentally-protected tidal marsh.

Urban parks

Spruce Street Harbor ParkSpruce Street Harbor Park
Spruce Street Harbor Park
Photo courtesy of Anastasia Navickas

If you prefer parks that feel part of the city rather than those that feel like you left the city, Philadelphia won’t disappoint.

Atop the Circa Centre South Garage in University City is Cira Green, a new rooftop greenspace boasting seasonal coffee carts, summer movies and some of the best views of downtown.

Named by Jetsetter Magazine as one of the “World’s Best Urban Beaches,” Spruce Street Harbor Park at Penn’s Landing is an eclectic recreational sanctuary along the Delaware River with seasonal food and beer trucks, a riverside boardwalk and a cluster of more than 50 cozy hammocks, which hang under spectacular LED lights strung amongst the trees.

From biking to basketball to bird-watching, Philadelphia’s city parks and green spaces offer unlimited means of escape from the bustle of urban life.

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What is debt validation? – Lexington Law

A group of people seated in a discussion.

Information in this article is not intended to provide legal advice for your individual circumstances and does not create an attorney client relationship with Lexington Law. If you need specific legal advice, contact an attorney in your jurisdiction.

A debt validation (or verification) letter may help you resolve some issues related to collection accounts and potentially minimize the damage done to your credit score.

For example, collection agencies may “reactivate” debt that you might have forgotten about, reporting very old debt again on your credit report. Or they may even try to collect debt that you already paid or that is past your state’s statute of limitations. In these cases, you may want to use a debt validation letter.

What Is Debt Validation?

Debt validation is simply the act of demanding that a credit agency prove that you owe a specific debt. The right to debt validation is protected under the Fair Debt Collection Practices Act.

Debt validation is simply the act of demanding that credit agency prove that you owe a specific debt.

How to Request Debt Validation

To protect your FDCPA rights, should follow a certain process. These steps help you document that you sent a proper validation letter and whether or not the collection agency responded in a timely manner.

1. Obtain a Copy of Your Credit Report

Obtain a copy of your credit report and highlight the
negative items you want to challenge. Make sure you have a basis for
challenging them. Examples for reasons include that you already paid the debt,
that you never owed the debt to begin with or that the debt is beyond your
state’s statute of limitations on collections.

2. Write and Mail a Letter

Write a letter including the reasons you feel the debt
is invalid. Address the letter to the collection agency that reported the debt
to the credit bureau. State that you’re requesting validation of the debt or
removal of the debt from your credit report. Then mail the letter and request a
return receipt so you have proof that you sent it and that the collection
agency received it.

3. Follow Up With a Challenge Letter

If you don’t receive a validation of your debt and it’s
still on your credit report, follow up with a credit challenge letter. Send
this letter to the credit bureau and include copies of any documentation you
have that disputes that you legally owe the debt. Make sure to note that you
contacted the creditor and did not receive a response to your validation
request, and include copies of the letter and the return receipt as proof.

4. Wait 30 Days for a Response

The credit bureau must investigate dispute letters. It will contact the reporting collection agency and request documentation of the debt. If the collection agency doesn’t provide sufficient documentation within 30 days, the credit bureau must remove the item from your credit report. Continue to check your credit report, even if you don’t hear from the bureau or creditor, to see if the item is removed.

How to Write a Debt Validation Letter

Dealing with collection accounts and agencies can be
stressful, and if you don’t think you owe the debt, you might also be angry. Remember,
it’s important to be as professional, clear and concise in a debt validation
letter as possible. You might need to use this letter later for proof that you
asked for validation of the debt, so you don’t want to complicate the issue or
use unprofessional wording.

Instead, keep it as brief as you can, including only what
you need to for the validation request. That includes:

  • What debt you are writing about
  • That you are requesting validation under the
    FDCPA
  • What information you are requesting
  • That you dispute the debt and request it be
    removed from your credit report
  • Your request that the creditor stop trying to
    collect the debt

Is a Creditor Required to Respond to Debt Validation?

Creditors do not have to respond to every debt verification letter sent to them. Under the FDCPA, if a collector contacts you about a debt, you have 30 days to request validation. If you send a verification request within that time, the creditor is legally obligated to respond to you. However, if you send a letter outside of that time or based on something you see on your credit report, the creditor is not legally obligated to respond.

Some people might tell you that it’s better to simply pay the debt and ask the creditor to delete the item from your report in return. That can in some cases, be an expensive proposition that doesn’t provide any results—especially if you don’t actually think you owe the money. Payment for deletion isn’t an option most creditors can back up because many collection agencies have contracts with the credit bureaus that prohibit it.

If a collector contacts you about a debt, you have 30 days to request validation.

How a Debt Validation Letter Can Help

Even if you’re outside of the debt validation window
under the FDCPA, a debt verification letter can still offer some benefits.
First, if the collector realizes that there is an issue with their information,
they might remove the negative item from your credit report. Even if that doesn’t
happen, you at least have documented proof you took these steps, and that can
help you when you try to dispute the information with the credit bureaus.

For more help with staying on top of your credit report and disputing incorrect items, get in touch with the credit consultants at Lexington Law.


Reviewed by John Heath, Directing Attorney of Lexington Law Firm. Written by Lexington Law.

Born and raised in Salt Lake City, John Heath earned his BA from the University of Utah and his Juris Doctor from Ohio Northern University. John has been the Directing Attorney of Lexington Law Firm since 2004. The firm focuses primarily on consumer credit report repair, but also practices family law, criminal law, general consumer litigation and collection defense on behalf of consumer debtors. John is admitted to practice law in Utah, Colorado, Washington D. C., Georgia, Texas and New York.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

How do annuities work?

A mother and her daughter play together.

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

Many people know about 401(k)s and IRAs, but there are many other options for retirement planning and wealth-building. Find out more about annuities and whether this option might be right for you.

What is an annuity?

Annuities are a type of insurance product, but instead of insuring yourself or your property against potential future losses, annuities let you insure income. Specifically, they help ensure that you will receive an agreed-upon amount of money periodically at some point in the future, which makes them a popular vehicle for retirement planning.

Annuities are a type of income insurance product that helps ensure that you will receive an agreed-upon amount of money periodically in the future, which makes them a popular vehicle for retirement planning.

How annuities work

The basic concept behind annuities is that you purchase a product now. You pay for it either in a lump sum or via agreed-upon payments—sometimes in the form of insurance premiums over a period of years.

In exchange, at some point in the future, you begin to receive payments on your annuity. Those payments typically come periodically, such as monthly, quarterly or annually. Depending on the annuity product you purchase, you can receive those payments for a certain period of time or for the rest of your life once the annuity payout begins.

You can generally expect to get back more in annuity payments than you pay into the product. That’s why they’re considered an investment. The reason for this is that your annuity purchase price or premium payments are put into a pot with all the other payments being made by annuity customers for that product or provider. Those funds are invested, and the earnings over time result in a profit for you and the insurance provider.

The main types of annuities

How much you can earn, when and how it pays out and the risk associated with your investment all depend on what type of annuity you buy. The types of annuities are summarized below to help you determine if any might be a good choice for you.

Deferred annuities versus immediate annuities

The first major decision to make when purchasing an annuity is whether you want a deferred or immediate annuity. Deferred annuities begin paying out at some agreed-upon point in the future, making them potential vehicles for retirement planning. Immediate annuities start paying out immediately, which might make them a better option if you’re close to retirement or want to ensure a certain level of income in the near future.

Three categories of annuities

Once you decide when you want your payouts to begin, you’ll need to pick a more specific type of annuity to invest in. Both immediate and deferred annuities have three major categories which are outlined below.

3 types of annuities

1. Fixed annuities

Fixed annuities are those that pay out an agreed-upon, guaranteed amount each time you receive income. This can be a good option if you want a stable income you can count on. The downside of fixed annuities is that the lower risk comes with lower potential reward from a returns perspective.

2. Fixed indexed annuities

Fixed indexed annuities guarantee at least a minimum amount paid out, so they can help provide stability for your budget. But part of your returns is tied to the performance of a market index. Market indexes include options such as the Dow Jones or S&P 500. If you have a fixed indexed annuity, then you might earn more payout than the minimum if the market performs well in a given period.

3. Variable annuities

Variable annuities are tied to a group of mutual funds. The amount of your annuity payouts depends on the performance of those funds. That can mean greater long-term reward, but it also comes with more risk than either of the other two categories of annuities.

Can you withdraw your money early?

You may be able to withdraw money from an annuity early if you find that you need your investment back or can’t wait until payouts are scheduled to begin. But this can be a costly move.

First, if you take money out of a retirement account, including some annuities, before reaching retirement age, the IRS may levy a 10% penalty. You’ll also have to pay any applicable taxes on the income.

For the purposes of annuities, penalties and taxes are only paid on the amount you earned on the investment. You’re not taxed on the amount you paid into the annuity because you were already taxed on that amount when you earned it the first time.

In some cases, the IRS waives the 10% penalty. Such cases include the total disability of the annuity owner or the annuity owner taking early withdrawals to pay for qualified education expenses.

How are annuities taxed?

Taxes on annuities can be complex, so it’s important to consult a tax professional to understand what your tax burden might be. Typically, payments you make toward an annuity are not made with pre-tax dollars. That means the money you pay into an annuity is already taxed, and you won’t pay income tax on it again in the future.

But you might owe taxes on any earnings you make from the investment. That means when you begin to receive payouts, you will have to report the income and calculate how much of it is taxable.

Is an annuity right for you?

Deciding whether any investment is right for you is an individual matter. You must look at your current financial state, your goals for the future and the level of risk you’re comfortable with. Since annuities are based on contracts, they’re typically considered less risky than stock market investments, but no investment is 100% guaranteed. Consider talking to a financial adviser to understand what investment and retirement planning options might be right for you.


Reviewed by Kenton Arbon, an Associate Attorney at Lexington Law Firm. Written by Lexington Law.

Kenton Arbon is an Associate Attorney in the Arizona office. Mr. Arbon was born in Bakersfield, California, and grew up in the Northwest. He earned his B.A. in Business Administration, Human Resources Management, while working as an Oregon State Trooper. His interest in the law lead him to relocate to Arizona, attend law school, and graduate from Arizona State College of Law in 2017. Since graduating from law school, Mr. Arbon has worked in multiple compliance domains including anti-money laundering, Medicare Part D, contracts, and debt negotiation. Mr. Arbon is licensed to practice law in Arizona. He is located in the Phoenix office.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com