anniversary

Apache is functioning normally

Editor’s note: This is a recurring post, regularly updated with new information.

Southwest Rapid Rewards Priority Credit Card overview

The Southwest Rapid Rewards Priority Credit Card is the most rewarding of Southwest Airlines’ personal credit cards, offering a $75 annual Southwest credit and 7,500 anniversary bonus points. With a healthy sign-up bonus and the most benefits of any of the airline’s offerings, this is the card to get if you’re a Southwest loyalist. Card Rating*: ⭐⭐⭐½

*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.

Southwest Airlines has a legion of fans — largely due to its flexible change/cancellation policies and offering two free checked bags for all passengers. Unlike other airlines, Southwest doesn’t offer lounges, premium cabins or even seating with extra legroom. But it does offer a full suite of cobranded credit cards to help frequent flyers fulfill their Southwest travel goals.

The Southwest Rapid Rewards Priority Credit Card is the most premium personal credit card in the Southwest lineup. It offers hundreds of dollars in value with Southwest each year, and its current sign-up bonus offers a healthy point bonus.

But are its benefits valuable enough to warrant the $149 annual fee? And is now the right time for you to apply? Let’s find out.

OWEN CL/UNSPLASH

Southwest Priority Card Welcome offer

The Southwest Rapid Rewards Priority Credit Card currently offers a welcome bonus of 60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases within the first three months of account opening. TPG values Rapid Rewards points at 1.5 cents each, meaning 60,000 points are worth $900.

This is the first time Southwest has offered a promo code as part of a sign-up bonus on a credit card. The code will appear directly in your Southwest.com account within eight weeks of meeting the spending requirement. It can be used — only once — on a single one-way or round-trip Wanna Get Away, Wanna Get Away Plus, Anytime and Business Select fare, and is available for use until October 31, 2024.

Given it is a single-use promo code, it would be best to save this for a more expensive ticket. You’ll get the biggest savings when using the code for round-trip travel and/or during peak travel periods like the summer or the holidays.

Note that the welcome bonus will count toward earning the carrier’s venerated Companion Pass, which typically requires 135,000 points in a calendar year.

Sign up for our daily newsletter

Related: 13 lessons from 13 years’ worth of Southwest Companion Passes

All Southwest cards are subject to Chase’s 5/24 rule. This means if you’ve opened five or more credit cards in the past 24 months (from all banks, not just Chase), you may not be approved. Also, you can’t open a new personal Southwest card if you currently have one open or if you earned a sign-up bonus in the past 24 months on any personal Southwest card.

WYATT SMITH/THE POINTS GUY

Earning points with the Southwest Priority Card

Here’s what you’ll earn with the Southwest Priority card:

  • 3 points per dollar on Southwest purchases.
  • 2 points per dollar spent with Rapid Rewards hotel and car rental partners.
  • 2 points per dollar on local transit and commuting, including rideshare apps.
  • 2 points per dollar on internet, cable and phone services; select streaming.
  • 1 point per dollar on all other purchases.

This is a wide variety of bonus categories compared to other airline credit cards, though top travel cards are typically even more lucrative.

Related: The best rewards credit cards for each bonus category

Redeeming points with the Southwest Priority Card

Redeeming points with the Southwest Rapid Rewards Priority Credit Card is very straightforward. Southwest award prices are directly tied to the cash value of the ticket, meaning the number of points you need for a flight will fluctuate, but you’ll rarely encounter times when you can’t use your points. Plus, if your plans change, you can redeposit your award without penalty.

While Southwest’s Rapid Rewards points won’t help you fly in first-class suites, they can provide great value. For instance, you can fly from Los Angeles (LAX) to Chicago-Midway (MDW) for just 8,091 points one-way, depending on the time of year. Meanwhile, other airlines often charge 10,000 miles or even more (assuming you can find availability).

SOUTHWEST.COM

If you book during one of Southwest’s flash sales, you could score awards for less than 2,500 points one-way. You can even fly to fun faraway destinations like Hawaii, Costa Rica and Mexico with your Southwest points.

Southwest Rapid Rapid Rewards Priority benefits

The Southwest Priority card offers the following benefits:

  • Anniversary bonus: Each year on your card-opening anniversary, you’ll receive 7,500 Rapid Rewards points, worth about $112, based on TPG’s valuations.
  • Annual Southwest travel credit: During each cardmember year, you’ll receive a $75 travel credit that can be used on most Southwest purchases, including tickets (but excluding upgraded boardings and inflight purchases), dropping the card’s actual cost to $74.
  • 25% inflight savings: Receive 25% back (as a statement credit) after you use your card to purchase inflight drinks, Wi-Fi, messaging and movies.
  • Tier qualifying points boost: Earn 1,500 TQPs that count toward A-List and A-List Preferred status for each $10,000 you spend in a calendar year.

In addition to the Southwest-specific benefits, the card comes with lost luggage reimbursement, baggage delay insurance, extended warranty coverage and purchase protection. The card has no foreign transaction fees, and the annual fee is $149.

Which cards compete with the Southwest Priority Card?

Southwest Airlines currently offers three personal cards — all with the same sign-up bonus. Thus, it can be difficult to choose the right one.

  • If you want Southwest benefits with a more modest fee: The Southwest Rapid Rewards Premier Credit Card has the same welcome bonus but extra perks to justify its $99 annual fee. These include 6,000 anniversary bonus points, 2 EarlyBird check-ins per year, 25% back on inflight purchases and 1,500 TQPs towards A-List status for each $10,000 spent on the card. For more details, read our full review of the Southwest Premier card.
  • If you want a Southwest card with an even lower annual fee: The Southwest Rapid Rewards Plus has a $69 annual fee and an anniversary bonus of 3,000 points. You’ll also receive 2 EarlyBird check-ins every card anniversary. For more information, read our full review of the Southwest Plus card.
  • If you want points you can use with Southwest and other airlines: The Chase Sapphire Preferred Card earns Chase Ultimate Rewards points, which you can transfer 1:1 to Southwest — as well as a wide range of airlines — for making flight redemptions. You’ll get numerous travel protections, a $50 annual hotel credit and robust earning categories, and the card has a $95 annual fee. For more information, read our full review of the Sapphire Preferred.

For more options, check out our full list of travel credit cards.

Related: Comparing the Southwest Rapid Rewards Priority, Premier, and Plus Credit Cards

Is the Southwest Rapid Rewards Priority Card worth it?

If you fly Southwest at least a few times each year, you will come out ahead with the Southwest Priority Credit Card. The card’s everyday earning rates aren’t the most lucrative out there, but impressive built-in perks like upgraded boardings, a $75 annual travel credit and a 7,500-point anniversary bonus easily make up for it.

Bottom line

The Southwest Rapid Rewards Priority Credit Card is the most rewarding of Southwest Airlines’ personal credit cards, with a solid sign-up bonus and the most benefits of any of the airline’s offerings. If you fly Southwest often, it’s the card for you.

Official application link: Southwest Rapid Rewards Priority Credit Card

Additional reporting by Ryan Wilcox, Benét J. Wilson, Jennifer Yellin, Joseph Hostetler, Christina Ly and Ryan Smith.

Source: thepointsguy.com

Apache is functioning normally

Editor’s note: This is a recurring post, regularly updated with new information and offers.

Southwest Rapid Rewards Premier Credit Card overview

The Southwest Rapid Rewards Premier Credit Card is the middle of the pack for Southwest personal credit cards. While airline credit cards generally don’t have too many perks, the absence of foreign transaction fees and 6,000-anniversary bonus points should help offset this card’s reasonable $99 annual fee. Card rating*: ⭐⭐⭐½

*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.

Savvy TPG readers know we generally don’t recommend building your points strategy around a single cobranded airline credit card, as these tend to offer fewer perks and less flexibility than a comparably-priced transferable points card.

When it comes to the Southwest Rapid Rewards card portfolio, you’ll generally find better earning rates and more flexible redemption options with cards that earn Chase Ultimate Rewards points — such as the Chase Sapphire Preferred Card — which you can then transfer to Southwest Rapid Rewards at a 1:1 rate.

That said, Southwest credit cards are very popular among Southwest fans. The mid-tier version of the three personal Southwest cards — the Southwest Rapid Rewards Premier Credit Card — has a good balance of perks and an annual fee that could make it worthy of a spot in your card collection.

Here’s everything you need to know about the Southwest Premier Card to help you decide if it should earn a spot in your wallet.

ROBERT ALEXANDER/GETTY IMAGES

Southwest Rapid Rewards Premier Credit Card welcome offer

New applicants for the Southwest Premier card can earn 60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases in the first three months from account opening.

TPG values Southwest Rapid Rewards points at 1.5 cents apiece, making the 60,000 points alone worth $900. While you can redeem points in several ways, the best value will come from using them for flights.

This is also the first time Southwest has offered a promo code as part of a sign-up bonus on a credit card. The code will appear directly in your Southwest.com account within eight weeks of meeting the spending requirement. It can be used — only once — on a single one-way or round-trip Wanna Get Away, Wanna Get Away Plus, Anytime and Business Select fare, and is available for use until October 31, 2024.

Sign up for our daily newsletter

Given it is a single-use promo code, it would be best to save this for a more expensive ticket. You’ll get the biggest savings when using the code for round-trip travel and/or during peak travel periods like the summer or the holidays.

Keep in mind that you can’t earn a sign-up bonus on the Southwest Rapid Rewards Premier Credit Card if you currently have any personal Southwest card, nor are you eligible if you earned a sign-up bonus on a personal Southwest card in the past 24 months.

Also, all of Southwest’s cobranded cards are subject to Chase’s 5/24 rule. If you’ve opened five or more new accounts over the past 24 months (across all issuers, not just Chase), you’re likely to be denied for this card.

Related: The ultimate guide to credit card application restrictions

Earning points on the Southwest Rapid Rewards Premier Credit Card

Most airline credit cards award bonus points or miles for purchases directly with the carrier, and that’s certainly true here: You’ll earn 3 points per dollar spent with Southwest on the Premier Card.

However, it also has some other enticing bonus categories: You’ll earn 2 points per dollar spent on local transit and commuting purchases, internet, cable and phone services and with select streaming providers. You’ll earn 1 point per dollar on all other eligible purchases.

This amounts to a 4.5% return on spending with Southwest and a 1.5% return on everyday spending, according to our valuations.

ZACH GRIFF/THE POINTS GUY

Redeeming points on the Southwest Rapid Rewards Premier Credit Card

When it’s time to use your rewards, one of the best things about redeeming Southwest Rapid Rewards points is the simplicity of the process. Whether you select the cheapest Wanna Get Away fares or the most expensive Business Select tickets, the cost of your award ticket is tied to the cash price of the flight.

This means you don’t have to worry about getting the highest possible cent-per-point redemption value. If you have Rapid Rewards points, you can redeem them for gift cards or merchandise, but the best value comes from using your points for Southwest flights — including options to Hawaii and international destinations.

Remember that Southwest’s policy of no change or cancellation fees means you can reprice your award ticket if the price drops. This offers valuable flexibility to get the best possible redemption.

Read more: How to change or cancel a Southwest Airlines flight

Southwest Rapid Rewards Premier Credit Card benefits

While you don’t expect an airline credit card with a $99 annual fee to come loaded with perks, there are quite a few benefits on the Southwest Rapid Rewards Premier Credit Card.

You’ll receive 6,000 bonus points on each account anniversary, which TPG values at $90 — meaning that the anniversary bonus nearly offsets the card’s $99 annual fee.

Also, you’ll enjoy additional benefits like two EarlyBird check-ins per year with the Southwest Premier Card — helping you get on the plane early to snag a better seat — and 25% back on inflight purchases.

WYATT SMITH/THE POINTS GUY

You may also be interested in earning Southwest A-List elite status to further enhance your travels with the carrier. Doing so requires completing 25 qualifying flights or earning 35,000 tier-qualifying points (TQPs) in a calendar year. You can earn bonus TQPs by spending on the Premier card: 1,500 TQPs for every $10,000 spent per calendar year.

Related: Battle of the airlines: Why I think Southwest Airlines is the best

Which cards compete with the Southwest Rapid Rewards Premier Credit Card?

The Southwest Premier card has two obvious competitors: the other Southwest credit cards from Chase. However, it’s worth also considering a general travel credit card with a similar annual fee to see whether this is better for your wallet. Let’s see how they stack up:

For more options, check out our full list of travel credit cards.

Related: Comparing the Southwest Rapid Rewards Priority, Premier, and Plus Credit Cards

Is the Southwest Rapid Rewards Premier Credit Card worth it?

The Southwest Premier card with a $99 annual fee is mostly offset by the 6,000 anniversary bonus points, which have a value of $90, according to TPG’s valuations. If you value its other perks at more than $9, that covers the annual fee. However, most Southwest loyalists should apply for the Priority card instead, as it has more benefits.

Bottom line

The Southwest Rapid Rewards Premier Credit Card can be a good option for frequent Southwest flyers. If you fly with Southwest occasionally, this card’s price point and perks could make it a good fit for your wallet without the higher price tag on other travel credit cards.

Official application link: Southwest Rapid Rewards Premier Credit Card

Additional reporting by Ryan Wilcox, Stella Shon, Christina Ly and Ryan Smith.

Source: thepointsguy.com

Apache is functioning normally

Editor’s note: This is a recurring post, regularly updated with new information and offers.

Hilton Honors American Express Surpass® Card overview

The Hilton Honors American Express Surpass® Card provides solid earnings at Hilton properties and automatic Hilton Gold elite status, which offers complimentary breakfast, increased earnings and space-available upgrades when you stay at Hilton properties. The status perk alone may make it easy to justify the card’s $95 annual fee (see rates and fees). Card Rating*: ⭐⭐⭐½

*Card Rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.

Hilton Honors Gold status is one of the best mid-tier hotel loyalty statuses you can obtain. As a Hilton Gold elite member, you’ll get complimentary breakfast, space-available room upgrades and improved earnings when staying at Hilton brands. Luckily, you can easily earn and maintain Hilton Gold status since it is an automatic perk of the Hilton Honors American Express Surpass Card.

The Hilton Surpass card is an ideal choice for those who stay at Hilton properties often and want a cobranded credit card with a modest annual fee and valuable perks — but who aren’t willing to shell out for the top-tier Hilton Honors American Express Aspire Card.

The information for the Hilton Aspire Amex Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

With its elevated welcome bonus, you might wonder whether the Surpass card is a good addition to your wallet. Here are the details and other cards to consider as you decide.

Hilton Surpass welcome offer

New applicants can earn 130,000 Hilton Honors bonus points and a free night reward after spending $2,000 in purchases on the card in the first three months of cardmembership. Offer ends July 19.

THE POINTS GUY

Having another Hilton credit card doesn’t make you ineligible for the welcome bonus, but remember that Amex has a “once per lifetime” rule on card bonuses. Amex also has these terms for the welcome offer:

Welcome Offer not available to applicants who have or have had the Hilton Honors Surpass® Card or the Hilton Honors Amex Ascend Card. American Express may also consider the number of American Express Cards you have opened and closed as well as other factors in making a decision on your welcome offer eligibility.

Luckily, Amex will inform you before submitting your application if you’re not eligible for the bonus. If you get this message, you can proceed without the welcome offer or withdraw your application before Amex performs a hard pull on your credit report.

Sign up for our daily newsletter

Related: A complete guide to Amex’s one-bonus-per-lifetime restrictions

Earning points with the Hilton Surpass

BILL FINK/THE POINTS GUY

The Hilton Surpass card is a great way to earn Hilton points. You’ll earn 12 points per dollar at Hilton hotels and resorts — a 7.2% return on spending, based on TPG’s valuations. This is better than you’d get with most of the best credit cards for booking hotels, including the Chase Sapphire Reserve (6%).

You’ll also earn 6 Hilton points per dollar spent at U.S. restaurants (including takeout and delivery), U.S. supermarkets and U.S. gas stations, giving you a return of 3.6% on these purchases. Finally, you’ll get 3 points per dollar spent on all other eligible purchases — a return of 1.8%.

These returns on non-Hilton spending aren’t spectacular. But, if you’re looking to boost your Hilton points balance, the Surpass card provides a decent return even for purchases outside the Hilton Honors program.

Related: Booking direct: How much value does Hilton status provide?

Redeeming points with the Hilton Surpass

When it comes to the Hilton Honors program, your best bet is to redeem your Hilton points for free nights. Unfortunately, Hilton doesn’t publish an award chart, instead using dynamic pricing where the number of points needed for a redemption fluctuates based factors such as the cash cost of the hotel, holidays and peak travel periods.

KATIE GENTER/THE POINTS GUY

One of my favorite options is to focus on properties that cost relatively few points but provide great value. For example, here are 20 of the best Hilton hotels in the U.S. bookable for 20,000 points or less per night. And here are some of the top Hilton properties overseas bookable for 10,000 points or less per night.

Hilton’s Points & Money option allows you to pay more cash (and fewer points) when making a reservation. This can be useful when you don’t have enough points for a full booking but don’t want to pay the full cost of the hotel room.

Hilton Honors also allows members to earn and redeem Hilton points with partners. However, most non-hotel redemption options provide relatively low value for your points, so avoiding these low-value options is best.

Finally, remember that Hilton allows you to pool your points with up to 10 other members. If you want to combine balances with a friend or family member to put an even more luxurious award stay within reach, you can.

Related: 5 ways Hilton Honors should improve its loyalty program

Hilton Surpass benefits

The Hilton Surpass card’s welcome offer is attractive. But the long-term value for semi-regular Hilton guests comes card’s ongoing perks and benefits.

ZACH GRIFF/THE POINTS GUY

Hilton Honors Gold status

The Hilton Surpass card gives cardholders complimentary Gold status in the Hilton Honors program. TPG values Hilton Gold status at $1,255 per year. Hilton Gold status includes the following perks:

If you’re a big spender and charge more than $40,000 on the card in a calendar year, you’ll earn top-tier Diamond status through the end of the next calendar year. Depending on how frequently you stay at Hilton properties — and how much you value the given perks of Diamond status — this can add quite a bit of value to the card. However, there’s a simpler path to Diamond status: it’s an automatic perk of the Hilton Aspire card, which has a $450 annual fee (see rates and fees).

It’s worth pointing out that other credit cards offer complimentary Hilton Gold status, though none has an annual fee lower than the Surpass card:

So if you already carry any of these cards, getting Hilton Gold status as a perk from the Hilton Surpass won’t provide any additional value.

Related: Points of View: Which credit card should you use for Hilton stays?

Priority Pass access

BRENDAN DORSEY/THE POINTS GUY

The Hilton Surpass comes with a Priority Pass Select membership offering 10 lounge visits per year after you enroll for this benefit. Bringing a guest into the lounge uses one of your 10 visits, but you can pay for additional Priority Pass lounge visits.

If you’re a semi-frequent traveler who goes through an airport with a Priority Pass lounge a handful of times a year, this is a great perk that won’t break the bank like similar benefits on premium travel rewards credit cards.

Related: Best credit cards for airport lounge access

Free night reward

ERIC ROSEN/THE POINTS GUY

You can earn a free night reward by spending $15,000 on purchases with the Hilton Surpass card in a calendar year. You can use this free night at almost any Hilton property worldwide on any night of the week. Even at a conservative valuation of $300, you’re still looking at an additional 2% return on that $15,000 in spending.

Related: How to get maximum value from Hilton free night certificates

Other benefits

The Hilton Surpass offers various other benefits. For example, you will pay no foreign transaction fees (see rates and fees) when traveling outside the U.S.

You’ll also enjoy free two-day shipping with Shop Runner, Send & Split to divide bills with friends — such as a group dinner — Pay It Plan It to pay large purchases over time and secondary rental car insurance of up to $50,000 for theft or damage.*

* Eligibility and benefit level varies by card. Not all vehicle types or rentals are covered, and geographic restrictions apply. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by AMEX Assurance Company. Coverage is offered through American Express Travel Related Services Company, Inc.

Related: 6 reasons to get the Hilton Honors Amex Surpass card

Which cards compete with the Hilton Surpass?

For those looking to earn and redeem points with Hilton, natural competitors of the Surpass card will be other Hilton credit cards. It’s also worth considering cards whose points you can use at Hilton in addition to other redemption options.

  • If you don’t want an annual fee: The Amex Hilton Honors card also earns points you can redeem with Hilton for free hotel stays. As a card with no annual fee (see rates and fees), you’ll naturally earn at lower rates and enjoy fewer perks. With the Amex Hilton Honors card, you’ll earn 7 points per dollar at Hilton hotels and resorts, 5 points per dollar at U.S. restaurants (including takeout and delivery), 5 points per dollar at U.S. supermarkets and U.S. gas stations and 3 points per dollar on other purchases. For more details, see our full review of the Amex Hilton Honors card.
  • If you want more perks: The Amex Hilton Aspire card is Hilton’s premium card, offering top-tier Diamond status as an automatic benefit. The card’s annual fee is $450 (see rates and fees), but TPG values Diamond status at more than $3,000 annually. You’ll receive a free night reward on each account anniversary, and you can earn another by spending $60,000 on purchases with your card during a calendar year. Additionally, you can receive statement credits each year for up to $250 in airline fees per year, up to $250 in Hilton resort credits and up to $100 in Hilton on-property credits. You’ll also receive a Priority Pass membership with unlimited lounge access for you and up to two guests. For more details, see our full review of the Amex Hilton Aspire card.
  • If you aren’t partial to Hilton: Try the Amex EveryDay Preferred card, with which you’ll earn 3 points per dollar on up to $6,000 of annual purchases at U.S. supermarkets (then 1 point per dollar), 2 points per dollar at U.S. gas stations and 1 point per dollar on other purchases. You’ll also earn a 50% points bonus each billing period if you have 30 or more transactions during that period. The Amex EveryDay Preferred card doesn’t earn Hilton points. Instead, it earns American Express’ own Membership Rewards points, which you can transfer to Hilton for hotel redemptions but also can use with more than a dozen other airline and hotel partners. For more details, see our full review of the Amex EveryDay Preferred card.

For additional options, check out our full list of the best travel cards.

Read more: Which credit card should you use for Hilton stays?

The information for the Amex EveryDay Preferred and Hilton Aspire cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Is the Hilton Surpass worth it?

The Hilton Honors American Express Surpass Card is competitive in the crowded mid-tier category of cobranded hotel credit cards. With a lucrative welcome offer, solid earning rates, complimentary Gold elite status and an array of valuable perks, the Hilton Surpass is an excellent option for those who visit Hilton properties semi-frequently.

Bottom line

While the Surpass doesn’t offer the flexibility of a card like the Amex EveryDay Preferred card or the elite perks of the Amex Hilton Aspire card, it could still be just what you need to make your next stay with the Hilton Honors program even more rewarding. You’ll get the benefits of having Gold status as well as lounge passes to use. Just note that you do need to spend $15,000 in a calendar year to receive a free night award.

Official application link: Hilton Honors American Express Surpass Card

For rates and fees of the Hilton Surpass Card, click here.
For rates and fees of the Hilton Aspire Card, click here.
For rates and fees of the Hilton Honors Amex Business Card, click here
For rates and fees of the Amex Platinum Card, click here.
For rates and fees of the Amex Business Platinum Card, click here.
For rates and fees of the Hilton Amex Card, click here.
For rates and fees of the Amex EveryDay Preferred card, click here.

Additional reporting by Ryan Wilcox, Stella Shon, Chris Dong, Robert Thorpe and Ryan Smith.

Source: thepointsguy.com

Apache is functioning normally

Hello! Today, I have a great debt payoff story from Heather O’Donnell of HappyHumbleHome.com. Enjoy!

These days, I’m a frugal living blogger at Happy Humble Home and I provide money saving advice and encouragement to others.

But there was a point in my life, not that long ago, when I thought I would be in debt forever.

When my husband and I got married in August of 2015, we had $105,000 of debt. Since then, we have worked very hard towards our goal becoming debt free and we have crushed $95,000 of our debt.

Along the way, we’ve used 2 different debt payoff strategies and we’ve learned 3 essential habits that have helped us be successful along the way. In this post, I’m going to give you an inside look at how I overcame my giant mountain of debt because I know without a doubt that if I can do this, you absolutely can too.

More debt payoff stories:

I brought most of the debt into my marriage

My husband was debt-free except for his car payment. I had a giant student loan and a car payment of my own. Here’s a breakdown of exactly what our debt looked like:

  • Student Loan – $68,000
  • My Car Loan – $20,000
  • His Car Loan – $17,000

If you’re wondering about those numbers, let me give you a quick backstory.

My giant student loan was consolidated from my undergraduate and masters degrees. I went to school to be a elementary school teacher and was working as a kindergarten teacher in an inner city when we got married. Obviously, this was not a very high paying career choice.

It was just pure bad luck that my husband and I had to buy cars at the same time.

A few months before our wedding, his old car was starting to have problems and it would have been expensive to fix. We decided together that instead of fixing his old car, it would make more sense to trade it in and get a new one. So, he did.

We expected the little Honda Civic that I was driving at the time to last us at least another 5 years and we didn’t think his one car payment would be that bad.

But just a few weeks after my husband bought his new car, my car was totaled in a hit and run accident. Thankfully, I wasn’t injured. On the other hand, my poor little car was destroyed.

Clearly, I was going to need a new one. And of course, I could have bought something used and affordable. But instead I did a rushed month of research and decided to invest in a new car that would last us 10 years, barring another horrible accident.

So, that’s how we ended up with 2 car payments at the same time on top of my student loan.

We paid for our wedding in full with cash that we had saved up during our 18 month engagement. But this also meant that we were only paying the minimums on our debt during this time.

It was right after we were married that we decided to get serious about paying off our debt.

Emotionally, it was hard to be the one to bringing so much debt into my marriage. I felt really guilty about it and it took several long conversations with my husband before I was ready to tackle or debt together.

We started by learning everything we could about debt payoff strategies.

We decided that because we were already highly motivated, we should use the debt avalanche and focus on paying off my student loan first since it had a much higher interest rate.

For the next 18 months we devoted every spare dollar that we could to paying my student loan. We paid off $38,000 of the $68,000 total during that time.

The debt avalanche was serving us well. We’d paid off more than half of our biggest and highest interest rate debt. But our life situation was changing. I was pregnant and planning to leave my job to stay home with our baby. We knew this would drastically decrease our income and affect our debt payoff.

So, we decided to reevaluate our strategy.

After looking at our debts, we decided the best thing for us would be to eliminate our highest monthly payment. That would free up more money each month and would make life easier when I wasn’t working.

My husband’s car loan was our smallest debt, with our smallest interest rate, but it was our highest monthly payment at $505.  

We set our sights on that small car loan and started devoting all the extra money that had been going to my student loan each month to the car loan instead.

We had his car paid off in 6 months.

This put a lot more breathing room in our monthly budget.

Then, we turned our attention to my car payment. The minimum monthly payment for my car was only $297, but it was a much smaller total amount than my student loan and we wanted to remove that monthly payment too.

We put everything we could toward paying off my car, including our 2017 tax return, and we had it paid off 7 months later.

By this time, our son was here and I had left my job. Our income was much less than when we were both working and our expenses were a little higher since we had another person in our family.

So, our debt payoff slowed.

There were several months that we could only pay the minimum monthly payment towards the student loan.

Whenever we had a little extra, we would pay more.

Even though our progress had slowed, our motivation was still high. We had built so much momentum when we were paying off our debts quickly and that carried us through those harder months.

Since I left my job in August of 2017, we have paid off $21,000 of my student loan on one income.

So at the time that I’m writing this we still have about $10,000 of debt left. I have this new, life changing ability to see the light at the end of the tunnel. I know we will be debt-free soon, and once we are, we’re never going back.

I want to share with you 3 essential habits that we used to pay off our $95,000 of debt so far.

These strategies worked for me even as someone who was horrible with money in the beginning. And they’ve kept me motivated through the hard times when I felt like giving up. I know these strategies can work for you too.

1. Monthly Debt Check-In

Every month during the last weekend of the month, my husband and I spend an hour planning out our budget for the month ahead and checking in on our debt payoff progress.

We talk about how much debt we’ve paid off and how much further we have left to go.

Sometimes we play with an online debt calculator on Unbury.us. The calculator tells us when our debt will be paid off based on how much extra we can pay each month. For example, if we pay an extra $600 a month, we’ll have our debt paid off my February 2020. It just gives us a rough idea of how close we’re getting.

Talking about it is powerful gets us excited and motivates us to continue.

2. Cutting Expenses for Extra Debt Payments

We did everything we could think of to lowering our expenses so we would have more money to devote to paying off our debts. This wasn’t fun to think about at first, but it was fun to see all that extra money going toward paying off debt.

Here are some of the expenses we cut to free up money for extra debt payments.

Food

We completely stopped going out to eat at restaurants. During the 3.5 years that we’ve been married and working on our debt, my husband and I have only been in a restaurant on our anniversary or birthdays.

We also stopped getting take-out food on the busy (or lazy) nights that we didn’t feel like cooking. Instead we had some supplies on hand for super simples meals that we both liked and that would be easy to prepare when we didn’t want to cook. These were mostly things like tuna, cartons of soup, or frozen chicken fried rice.

I made an effort to meal plan and once I learned a system that worked for me, I worked on stretching the same ingredients out for several different dinners in a week. For example, shredded beef would work for beef and broccoli, beef tacos, and stew.

Then, I started getting serious about saving money on groceries. I started looking for sales, comparing prices, using some coupons, and shopping with a grocery budget. I was able to lower our grocery costs by $40 a week with just a little bit of work and thinking ahead.

Household Costs

After we got our food costs under control, we focused our attention on our household costs.

We seriously cut down on our electric bill just by unplugging things and intentionally turning off what we weren’t using.

We negotiated our cell phone bill and saved $15 a month.

We made an effort to use a little less of everything – less paper towels, less detergent, less shampoo.

We’ve even tried to do some simple home repairs ourselves without calling (and paying) a professional. My husband was able to fix the ice maker in our freezer, replace our doorbell, and even do a simple repair on our toilet.

It was easier than I thought it would be.

I expected cutting our expenses to be a grueling process but it was so much easier than I ever expected. We would just try something, and if it worked we’d get really excited about the money we saved.

My success with cutting our expenses is one of the main reasons I wanted to start my blog, Happy Humble Home. I was excited to share simple, actionable ideas that other people could use in their own lives, with their own families, to save money.

3. Keeping the Future Front of Mind

The biggest change that helped me while paying off debt was actually a mindset shift.

I stopped thinking about what I wanted right now, and instead started focusing on what I want in the long run.

I knew that I didn’t want to still be paying off my student loan when my kids were in college. And during the times that I was struggling, that’s what I would remind myself.

And my husband and I are always talking about how much more money we will have once we don’t have to make any debt payments. We’ll actually be able to save money for things that we really want, like remodeling our bathrooms.

This isn’t an easy mindset shift to make.

There were so many times that I wanted the instant gratification that came from take-out food or going out with friends or buying a cute new outfit.

I had to keep reminding myself that 5 years from now I wouldn’t remember that meal, or event, or outfit. But if I made the right choices, in 5 years I could be debt free. And that would have a profound impact on my family forever.

With practice, those hard choices became easier to make.

And now that I’m so close to being debt-free, it’s very easy to turn down temptation.

$93,000 in 3.5 Years

It’s a little scary to put all my real life numbers out there into the world. But It’s pretty amazing to take a step back and think about how far I’ve come. And It’s even more amazing to think about how close I am to the finish line.

My husband and I expect to be 100% debt free by the end of 2019. And once we are, we are never going back. Also, there will be a party.

In the meantime, I’m going to keep sharing my money saving tips and debt insights over on my blog, Happy Humble Home. I’m doing my best to empower everyone I can reach to fix their financial situation, just like I have. I’d be honored to be a part of your financial journey. You can join me here to get access to all of my best money saving tips and tools (including a printable debt payoff tracker!)

If your debt feels overwhelming like mine once did, I want you to know that this is not impossible. With a little intentionality, some smart choices, and healthy money habits you can pay off your debt and change your future. I know that if I can do this, you can too.

Do you have debt? What are you doing to pay off your debt?

Related Posts

<!–

–>

Source: makingsenseofcents.com

Apache is functioning normally

Save more, spend smarter, and make your money go further

By now, you’ve surely heard of Amazon Prime. It’s the retail giant’s paid membership that’s best known for its speedy shipping services. Packages will arrive at your doorstep in two days max—or as soon as that night. 

Catering to the subset of online shoppers who buy often and want their goods delivered ASAP, Amazon launched its Prime service in 2005. Paying $119 a year for free two-day shipping may not be a great deal if you don’t shop much. But that’s not all a Prime membership will get you. As well as the all-important free two-day shipping, Prime provides its members with one-day shipping for $3.99 free streaming TV and movies, and so much more. 

Millions of people currently reap the benefits of Prime. If you’re one of them, or you’re considering signing up, the following tips will help you maximize the rewards. Read on to learn all about the wealth of offerings that Amazon’s paid membership gets you, and how to get the most out of your subscription.

Amazon Prime Shipping

The most widely known benefit of Amazon prime is, of course, its rapid shipping.  Known as “Prime” shipping, this membership perk gets you free 2-day shipping on all eligible Amazon products. Prime members also have access to ultra-expedited, 1 day shipping on over 10 million items. Better yet, more than 3 million items qualify for same day delivery, as long as you meet Amazon’s $35 order minimum. A package ordered in the morning could arrive on your doorstep that night. 

Amazon delivers on its lofty 2-day shipping goal thanks to their enormous network of Amazon warehouses. These 50+ warehouses are placed strategically across the US. While anyone can start an Amazon business, only products that are fulfilled by Amazon are available in Amazon warehouses. These contain a stockpile of the most commonly ordered Amazon items and are staffed by employees who work around the clock to ensure your product is delivered in a 48-hour window.  

When a Prime-eligible product is ordered, Amazon sources it from the nearest Amazon warehouse. It’s then packaged, placed on an Amazon truck, and delivered to your house by the deadline. 

Amazon Shopping Benefits 

Amazon is the world’s largest online retailer—and it’s no wonder why. Amazon offers some of the most competitive shopping benefits and largest selection of items for sale in the world. Use the following tips to get the most out of the company’s benefits and reap the rewards of your membership. 

Qualify for Amazon Prime Discounted Memberships 

A standard Amazon Prime membership costs $119 per year, or $12.99 each month if you’d rather pay in installments. However, in some scenarios, you may be able to get your membership at a discount—or even for free. 

  • EBT or Medicaid card holders: If you have a valid EBT or Medicaid card, you can get access to Amazon Prime for only $5.99 each month 
  • Students: If you’re a student, you can get a free, 6-month trial of Amazon Prime; once your trial is up, you can have access to Prime membership at $6.49 each month

Take Advantage of Prime Deals at Whole Foods Market 

Prime shopping benefits extend beyond Amazon’s dot com site. Prime members get exclusive discounts when shopping both online and in-store at Whole Foods Markets. 

Try on at Home with Prime Wardrobe

Looking for a new wardrobe but hate the unknown of online shopping? Amazon’s Prime membership solves that problem with Prime Wardrobe. This service allows you to order clothing, shoes, jewelry, and accessories without paying upfront. Try on the clothes at home, send whatever you don’t want back, and only pay for the items that you decide to keep. 

Bookmark the Daily Deals

Every day, Amazon offers exclusive deals for Amazon Prime members. Prices are slashed in every single department—home and kitchen, electronics and accessories, toys, kids, babies, and more. Everything from digital cameras to lawnmowers can be found at reduced prices. 

Plus, Amazon offers Prime members 30-minute early access to Lightning Deals, a promotion in which a limited number of discounts are offered on an item for a short period. Here’s the thing: you need to act fast to grab the discounts. Each deal is available in limited quantities, and when it’s gone, it’s gone. Add the deals page to your bookmarks and sign up to receive daily deal emails. 

The mother of all Amazon deals is Prime Day, a single day devoted to Amazon Prime deals. If you want to take full advantage of this once-a-year event, do your research ahead of time and make sure you have the best Prime Day credit card.

Use third-party price monitoring websites

Long-time Prime user Mark Lindsey’s pick is camelcamelcamel.com, which provides price histories and sends email alerts when an item of interest is discounted. Other options include Honey, Timberfrog, and Price!pinx. Some of these services may be able to be installed directly into your Firefox or Chrome browser. 

Amazon Entertainment

Amazon’s most recent foray is their takeover of the entertainment world with the introduction of Amazon Entertainment. Though its TV and moving streaming service was originally introduced in February 2011, it has grown exponentially in the past several years. It’s now a rival to media conglomerates like Netflix and Hulu. 

Delve into Amazon.com’s video offerings

Through Prime Video and Prime Video Channels, Amazon Prime membership offers free movie and TV streaming, complementary with Prime membership. Furthermore, Prime Video Channels allows you access to premium channels like HBO, Showtime, and STARZ at between $4.99 and $14.99 a month, with no additional apps to download. 

Not only does Amazon offer popular movies and TV shows (for instance, it’s the only place you can stream Lord of the Rings), but Amazon also produces original content available only with an Amazon Prime membership. Its in-house production company, known as Amazon Studios, was started in late 2010. 

Listen to Amazon Music 

Amazon has a vast music library of tens of millions of songs. Prime members have access to a portion of these, available for listening on any Echo device, at no cost. Plus, Prime members get discounted rates on Amazon Music Unlimited—Amazon’s entire music library. 

Game with Prime Gaming 

Gamers can benefit from an Amazon Prime membership, too. Prime Gaming gains you access to free games and in-game content every month. Plus, get a monthly Twitch channel subscription for free and exclusive promotions on new games. With Prime’s free release-date delivery, you can order and receive new video games by 7 PM on release day. 

Other Amazon Prime Advantages

Prime benefits don’t stop there. Make sure you’re getting the absolute most out of your yearly membership price with the following. 

Go Old School with Prime Reading 

Did you know that Amazon was originally a bookstore? Amazon’s reading benefits hearken back to their bookstore roots. Prime Reading provides members with unlimited access to more than a thousand magazines, comics, eBooks, and more. You don’t need a Kindle to read these; they can be accessed on any device. 

Plus, through Amazon First Reads, each Prime member can download one editors’ pick book each month before the official release date. 

Recruit a Friend

Prime members can share their accounts with one other adult, which means free membership for a person of your choosing. To sign them up, go to the Prime Membership management section of your Amazon account settings. Note that student and EBT/Medicaid members cannot share accounts with any other individuals. 

Think beyond the last-minute buy

The ability to make frequent small purchases and be assured of their swift arrival is a key benefit of Prime. Many a Prime user has been saved by the fast, free expedited shipping after remembering a birthday or anniversary in the nick of time. But for household products such as cleaning supplies and toiletries, it’s often cheaper to plan ahead and buy in bulk. 

Amazon’s Subscribe and Save feature allows you to place a recurring order for an item and choose the frequency for its delivery. You’ll save 15 percent off the price and won’t have to worry about stocking up. As another veteran Prime user Mark Zembrzuski notes, “Nothing says you’re living the high life like coming home to 48 rolls of toilet paper.”

If you haven’t yet signed up for Prime, Amazon is currently offering a one-month free trial. To register, visit amazon.com/prime.

Save more, spend smarter, and make your money go further

  • Previous Post
    Eating Healthy on the Road For Less

  • Next Post
    Challenge Yourself to be $1,000 Richer by Labor Day

Chelsea Dehner

Browse Related Articles

Source: mint.intuit.com

Apache is functioning normally

My father was an entrepreneur. He was always starting businesses. He was always selling things.

When I was very young he operated Steve’s Lawnmowing Service. He also sold World’s Finest Chocolate. He carried boxes of chocolate bars with him to church, and sold them after Sunday School. I remember standing on the church lawn, waiting while Dad joked and told stories and sold candy.

He tried lots of other things, too: he was a flight instructor, he sold Shaklee, he raised nursery stock. He read personal finance books. (The Richest Man in Babylon was one of his favorites.)

Dad’s first real entrepreneurial success came with Harvest Mills, which he started in the mid-seventies. He built a wheat grinder from scratch. He liked it so much that he decided to sell them. He developed a system for manufacturing them in a production line. Then, further capitalizing on the health-food craze, he developed the Little Harvey food dryer. These sold well, and soon he had purchased one of the first plots of land in a new industrial park. Harvest Mills was a success.

Dad sold the business in the late-seventies for a large sum of money. For reasons that are no longer clear to me, he never saw full payment for the business. (My memory is this: he sold Harvest Mills for $300,000 payable in ten yearly installments, but the buyer went bankrupt and somehow only one payment was made. Dad, who always had poor personal finance skills, squandered what money he had been paid on airplanes and sailboats, his expensive toys.)

The next six or seven years were tense. The economic outlook in the early eighties was poor. Dad moved from one sales position to another: selling staples, selling industrial supplies, selling boxes. He started other businesses: an accounting service (with software that he wrote in Microsoft Basic on an Apple II), a nursery (again), a wood stove manufacturer. These all failed.

On his fortieth birthday — 31 July 1985 — Dad left his job as a box salesman and founded what would become his greatest success: Custom Box Service. He worked night and day to create a business that could exploit a marketplace niche. He sold the boxes. He designed the boxes. He made the boxes. He delivered the boxes. He did the accounting. He lived and breathed boxes for a decade. One-by-one his three boys came to work for him.

Dad died ten days before the business’s tenth anniversary, ten days before he would have turned fifty years old. Cancer ate his body, consumed his will. He left behind an unconventional inheritance: no money to speak of, but a growing, thriving business.

For the past eleven years, his children (and a nephew) have kept this business running. It now sells well over a million dollars a year. But none of us are entrepreneurs. We don’t have that spark. Sometimes I sense a glimmer of it inside myself, but in order to prosper as an entrepreneur, you need chase a dream that you believe in one-hundred percent. Boxes are not my dream.

When I was a boy, Dad tried to foster my entrepreneurial spirit. He encouraged me to sell seeds from a magazine, but I was too shy to knock on doors. I also failed at selling greeting cards. He tried to teach me to peel chittum bark that could be sold to god-knows-where for use as a natural laxative. (He had done this himself to earn money as a boy.)

Sometimes, if I were personally vested in the enterprise, I relished buying and selling things. In fourth grade, in order to generate money for new comic books, I took my old comics to school and sold them. I took my Star Wars trading cards and repackaged the doubles, selling each thick bundle for twenty-five cents each. I sold my old Hardy Boys books to buy new ones.

Now, for the first time in twenty years, I’m beginning to feel a bit of the entrepreneurial spirit. I have an idea, a plan, a vision.

I am now ready to become an entrepreneur, too.

Thanks, Dad.

Stephen E. Roth
31 July 1945 – 21 July 1995

This is how I like to remember Dad: busting a gut over something.

Source: getrichslowly.org

Apache is functioning normally

Northwestern Mutual, Special Spaces Recognize 10-Year Anniversary of Company’s Childhood Cancer Program with 10 Dream Bedroom Makeovers HGTV star Mina Starsiak Hawk collaborates on latest bedroom reveal for a child in her hometown MILWAUKEE, Nov. 17, 2022 /PRNewswire/ — In recognition of its Childhood Cancer Program’s 10-year anniversary, Northwestern Mutual, through its Foundation, collaborated with Special … [Read more…]