best

Apache is functioning normally

Knowing that you have life insurance protection can provide you and those you love peace of mind. While nobody wants to dwell on the unimaginable, life insurance can help to ensure that your dependents will have additional funds that they may require for paying off debts and / or continuing to pay their ongoing living expenses.
When you are searching for the best life insurance policy, it is important that you obtain the proper type and amount of coverage. That way, your loved ones won’t be left with too little to serve their needs.
It is also key to make sure that the insurance carrier that you purchase your life insurance coverage through is strong and stable financially – and that it has a good, positive reputation for paying out its policy holders’ claims. One company that meets these criteria is Phoenix Life Insurance Company.

The History of Phoenix Life Insurance Company

Phoenix Life Insurance Company has more than a century and a half in the business of providing coverage to its customers. Initially founded in 1851 as the Phoenix Companies, Inc., the company has grown and expanded throughout the years.
This insurer has a primary focus on helping those who are considered to be in the middle income market, as well as those who are more affluent, with securing the property life insurance protection for their needs.

Phoenix Life Insurance Company Review

Phoenix Life focuses on offering a variety of life insurance plans, as well as retirement annuities. These are offered via financial advisors throughout the U.S. The company also has a distribution subsidiary, Saybrus Partners, which provides insurance coverage to clients.
While Phoenix Life Insurance Company is considered by many to be a somewhat small insurance carrier – with roughly 600 home office employees – its products and services rate among the best. Phoenix Life is headquartered in Hartford, Connecticut.

Insurer Ratings and Better Business Bureau (BBB) Grade

Due in part to recent financial issues, Phoenix Life Insurance Company’s ratings are not currently among the best from the insurer ratings agencies. These ratings include a B+ (Credit Watch) from Standard and Poor’s (which is a rating of 14 out of 21 possible ratings), and a B (Stable) from A.M. Best Company (which is seventh out of a possible sixteen total ratings.
Even though the company’s ratings are not on par with where they could ideally be, Phoenix Life Insurance Company has been satisfying the financial obligations that it has to its current policy holders.
While Phoenix Life is not an accredited company through the Better Business Bureau (BBB), it has still been provided with a grade of A+, which is on an overall grading scale by the BBB of A+ through F). Over the past three years, Phoenix Life Insurance Company / The Phoenix Companies, Inc. has not had to close out any customer complaints through the Better Business Bureau.

Life Insurance Products Offered by Phoenix Life Insurance Company

With its key focus on life insurance and annuities, Phoenix Life Insurance Company provides a wide range of products for customers to choose from. This can be quite beneficial, as coverage can change along with the client, as his or her needs change over time.
The company provides several types of permanent life insurance, along with final expense coverage. With permanent life insurance, there is both a death benefit component, and a cash value component. Typically, once an insured has been approved for coverage, the amount of the death benefit protection is locked in, as is the premium amount – which means that the premium that is charged will not go up, even as the insured’s age increases, and if he or she contracts an adverse health condition.
The cash that is inside of the cash value component is allowed to grow and compound over time on a tax deferred basis. This means that there are no taxes due on the growth of these funds unless or until they are withdrawn.
Policy holders who have permanent life insurance protection are allowed to withdraw or borrow cash from the policy’s cash component for any need that they see fit – including to pay off debts, to supplement retirement income later in life, or even to take a nice vacation.
One type of permanent life insurance coverage that is offered through Phoenix Life Insurance Company is whole life. The Phoenix Remembrance Life policy is a simplified issue whole life insurance policy, which also offers supplemental benefits that are designed for protecting the insured’s loved ones and for leaving a legacy.
Because the Remembrance Life plan is a simplified issue policy, it will not require the applicant for insurance to undergo a medical examination, or to answer a long list of medical related questions. Because of this, these policies will oftentimes be approved within just days – or sometimes even sooner. So, if an individual is in need of life insurance protection quickly, this could be a viable option.
Another form of permanent life insurance coverage that is offered by Phoenix Life Insurance Company is universal life. With a universal life insurance policy, there are some similarities to whole life in that there is death benefit protection, along with a cash value component. However, in many ways, universal life insurance is considered to be much more flexible than whole life, as the policy holder is allowed – within certain guidelines – to change the due date of the premium, as well as to allocate how much of his or her premium will go towards the death benefit, and how much will go into the cash component.
Phoenix Life offers the Phoenix Accumulator UL universal life insurance policy. With this plan, policy holders may obtain a higher cash value crediting rate than they can with whole life insurance. There is also an interest bonus feature with this policy.
For those who are seeking both death benefit protection, along with a potentially higher amount of cash value build up over time (in a tax-advantaged manner), the Phoenix Accumulator UL policy may be a good fit.
Another type of universal life insurance that is offered through Phoenix Life Insurance Company is indexed universal life. Here, there is also a death benefit and a cash value component within the policy. However, instead of having the cash grow based on a certain rate of interest, the growth is based on the performance of an underlying market index (or indexes) such as the S&P 500.
With an indexed universal life insurance policy (IUL), if the underlying index or indexes perform well within a certain time period, then the cash value will be credited positively – typically up to a certain “cap.” If, however, the underlying index performs poorly – or even in extreme negative territory – then the cash value will not lose value. Rather, it will just simply be credited with a 0 percent for that time period.
Because of this, indexed universal life insurance is used by many policy holders who are seeking higher potential growth (than that of whole life, or even CDs and money markets), yet with protection of principal.
Phoenix Life Insurance Company offers the Phoenix Simplicity Index Life policy. With this plan, the policy holder may choose from several different cash value accumulation options. There is also a death benefit included in the policy, with the option to allocate policy value in a fixed account and / or to two indexed accounts.
As with the whole life insurance policy that is offered via Phoenix Life, this indexed universal life product will not require a medical examination by the applicant for coverage. There is also no need to fill out a large amount of paperwork. Therefore, those who may have certain health issues could still qualify for this policy – and it could be a viable option if someone is looking for guaranteed death benefit protection, along with protection of cash value and possible higher growth.

Other Products and Services

While Phoenix Life Insurance Company is known for its offerings of life insurance coverage, the company also offers some options for retirement annuities. Today, because many baby boomers are reaching retirement age, there is worry about whether or not retirement income will be able to last through the remainder of their lifetimes. This is particularly the case as life expectancy has increased.
With an annuity, a guaranteed, set income can be received – and, if the annuity holder opts for the lifetime income option, they can literally receive an income stream that will last for the remainder of their lifetime, regardless of how long that may be. Do your research and make sure you’re getting the best annuity rates.
All of the annuity products that are offered via Phoenix Life Insurance Company are designed for flexibility – depending on what it is that a client needs. These annuity products include the following:

  • The Phoenix Personal Retirement Choice – The Phoenix Personal Retirement Choice is a deferred annuity that provides its holder with the ability to build up long-term savings over time on a tax deferred basis. Deposits can be made into the annuity over time, prior to converting the annuity to an income stream. This annuity has several different income options to choose from as well.
  • The Phoenix Personal Income Annuity – The Phoenix Personal Income Annuity is a fixed indexed annuity, so it allows the opportunity to grow cash over time, based on the performance of an underlying index – but if the index should perform negatively in a given time period, there are no losses of principal.
  • The Phoenix Personal Protection Choice – With the Phoenix Personal Protection Choice annuity, the client can deposit a single premium up front. Because this annuity is a fixed indexed annuity, the cash will be protected from market downturns, while at the same time having the opportunity to grow, based on an underlying market index. There are also several options that are available when it comes time to convert this annuity to an income stream.

How to Get the Best Premium Rates on Life Insurance Coverage

If you are looking for the best premium rates on life insurance coverage on plans from Phoenix Life Insurance Company – or from any life insurance carrier – then it is typically recommended that you work in conjunction with an independent life insurance brokerage or agency.
In doing so, you will be much better able to shop and compare – in an unbiased manner – from numerous life insurance policies and carriers, and from there, you can choose the plan and premium quote that works the best for you and your specific needs.
If you are ready to take a look at the life insurance coverage that may be available to you, we can help. We are an independent life insurance brokerage, and we work with many of the top insurance carriers in the market place today. We can get you the details that you need quickly, easily, and conveniently – all from your own computer – and without you having to meet in person with an insurance agent. Whenever you are ready to begin the process, all you need to do is just simply take a moment to fill out the quote form on this page.
We understand that the purchase of life insurance coverage is a big decision. There are many different variables that you need to be aware of – and you want to be sure that you are obtaining the property type and amount of protection for your needs. The good news is that this process can be made so much easier when you have an ally on your side. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

Apache is functioning normally

If you have an aortic valve disorder like aortic stenosis (AS) or aortic insufficiency (AI), the condition is going to be an issue when you apply for life insurance. Insurance companies are very cautious about aortic valve disorders because of their potential to cause serious heart problems.

However, you still could get insured despite your condition. It depends on several factors including the seriousness of your condition. To get a better idea of what to expect, give our guide to insurance underwriting for aortic valve disorders a read.

Life Insurance Underwriting for Aortic Valve Disorders

During the application, you’re going to have to answer about a hundred different questions about your health. Some of those are going to be focused on your aortic valve disorder:

  • How long have you had an aortic valve disorder?
  • What type of disorder do you have (aortic stenosis, aortic sclerosis, or aortic insufficiency)?
  • Has your disorder led to any negative symptoms like chest pains, dizziness, heart palpitations, shortness of breath, or heart failure?
  • Have you had an echocardiogram or cardiac catheterization to check the seriousness of your condition?
  • Do you have any other additional risk factors?
  • What medications are you taking?

 

While there are no medications for an aortic valve disorder, your doctor could prescribe medications for your heart like: Thrombolytics, Beta blockers, Nitrates, and cholesterol medication like statins.

Be sure to answer every question on your application in complete detail. Underwriters will want to know everything they can about your aortic valve disorder to make sure there isn’t a serious problem. If your application appears incomplete, you could get rejected or pay higher rates.

Get Quotes for Life Insurance with Aortic Valve Disorders

The biggest factor for your rating will be the severity of your condition. If you have aortic stenosis, the insurance company will want to know by how much your aortic valve has narrowed as the narrower the valve, the higher the chance of heart problems. If you have insufficiency, the insurance company will want to know how much blood backflow there is in your valve.

Beyond the severity of your condition, there are plenty of other things the company is going to look at. They are going to look at your age, general health, activity levels, and much more. After they’ve gotten all the information, they are going to place you in a rate class. Each company is different, but here are the classes most companies have.

  • Preferred Plus: Impossible for someone with an aortic valve disorder. Even if your disorder isn’t causing any problems now, insurance companies will be too worried about future problems to give you this rating.
  • Preferred: Also impossible for someone with an aortic valve disorder. Insurance companies consider this condition too serious to give a discounted price on a policy.
  • Standard: Best possible rating for someone with an aortic valve disorder. Usually only given to applicants that are 60 or older because the real issue with valve disorders is they cause early heart problems. To get this rating with AS, your AS should be minimal meaning the peak gradient is ≤15mmHg. If you have AI, the blood backflow should only be mild. In addition, you must be in overall decent health and not have other heart problems.
  • Table Rating (substandard): This is where most applicants with the disorder get rated. Your rating will depend on how severe your condition is, your age, whether you have any other heart problems, and your overall health.
  • Declines: Applicants with severe AS (valve opening)

#ap27844-wwfont-family:Archivo,sans-serif#ap27844-wwpadding-top:20px;position:relative;text-align:center;font-size:12px#ap27844-ww #ap27844-ww-indicatortext-align:right;color:#4a4a4a#ap27844-ww #ap27844-ww-indicator-wrapperdisplay:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px#ap27844-ww #ap27844-ww-indicator-wrapper:hover #ap27844-ww-textdisplay:block#ap27844-ww #ap27844-ww-indicator-wrapper:hover #ap27844-ww-labeldisplay:none#ap27844-ww #ap27844-ww-textmargin:auto 3px auto auto#ap27844-ww #ap27844-ww-labelmargin-left:4px;margin-right:3px#ap27844-ww #ap27844-ww-iconmargin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer#ap27844-ww #ap27844-ww-icon imgvertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px#ap27844-ww #ap27844-ww-text-bottommargin:5px#ap27844-ww #ap27844-ww-textdisplay:none#ap27844-ww #ap27844-ww-icon imgtext-indent:-9999px;color:transparent

Ads by Money. We may be compensated if you click this ad.Ad

Aortic Valve Disorder Insurance Case Studies

While an aortic valve disorder will make it harder to qualify for a policy, there are some ways you can get cheaper coverage. As a high-risk applicant, you need to do some work beforehand. To hammer this idea home, we will show you some stories of clients we’ve worked with.

Case Study: Male, 61 y/o, diagnosed with minimal aortic stenosis at 56, never caused any problems, overall in decent health

This applicant was in good health, it was surprising when he was diagnosed with minimal aortic stenosis at 61. He maintained his good health habits and the condition never developed into anything serious. After he applied, he got very bad rates.

While the applicant seemed fine, this isn’t enough for life insurance companies. We recommended he go for an echocardiogram to recheck his valve condition. The tests showed the AS was still minimal. This new information helped the applicant receive a Standard rating.

Case Study #2: Female, 59 y/o, diagnosed with mild AS at 56, used to be overweight and former smoker, taking statins for cholesterol

This applicant used to have an unhealthy lifestyle. She smoked, was overweight and had high cholesterol. When she was diagnosed with mild AS at 56, her doctor warned her that she needed to take better care of herself to avoid future heart trouble. She took this advice to heart and quit smoking, started taking statins regularly, and lost a lot of weight. All in all she was much healthier and this helped her AS from getting worse.

After she applied, her application was rejected. She was stunned. We told her the insurance company hasn’t seen enough of her changes. We suggested her go to her doctor and ask for a note which detailed her improved health and the improvements she made. After she did this, she was approved for a rated plan.

 

Getting Cheaper Life Insurance with Aortic Valve Disorders

As an applicant with a serious health condition like aortic valve disorder, you’re going to pay more for your plan. There is no ifs, ands, or buts, about it. Just because you’re going to pay more doesn’t mean you have to spend a fortune on your coverage.

Source: goodfinancialcents.com

Apache is functioning normally

Working from home is here to stay after the COVID-19 pandemic, and if you’ve spent the past three years working from your kitchen table or makeshift office in your bedroom, you may be wondering how to decorate a home office that’s more suitable for your longer-term work.

Research from the Office for National Statistics’ Opinions and Lifestyle Survey found that 14 percent of adults continue to work exclusively from home long after lockdown restrictions lifted, while a further 24 percent have adopted hybrid working between their home and the office. With many employers set to keep homeworking as a permanent business model, there’s never been a better time to get your working from home setup in order.

Whether you have a dedicated home office or have a desk space within another room in your house, there is still lots of potential to create a home office that is practical, full of personality, and improves your productivity. We’ve rounded up 15 home office décor ideas to inspire you on how it should be done…

15 home office décor ideas

1. Subtle sophistication

If you’re lucky enough to have your own personal home office, make the most of your space and place your desk front and centre, sticking to sophisticated neutral tones for a workspace worthy of any CEO. Open shelving to display books and ornaments add a touch of character, while panelled walls and a sleek cream rug provide the perfect finishing touches.

SHOP: 14 best home office chairs that are stylish and comfortable

2. Bold and bright

If calming neutrals aren’t your thing, perhaps a splash of bold colour will inspire you. Go for all out maximalism with bright cobalt blue, pops of yellow and jewel-tone accents for a home office that’s full of personality and character.

3. Go for traditional heritage prints

Mixing prints across your curtains, blinds and wallpaper are a surefire way to ensure your work from home space is anything but boring. A stylish desk, ladder shelving and luxurious gold and velvet accessories combine to create an opulent feel in this home office.

4. Go muted

© Cuckooland

If you’re easily distracted or working within your bedroom or another space, you may find that it’s best to keep things simple by decorating in muted tones, and allow your accessories such as an oversized vase or eye-catching desk lamp to add interest. 

5. Opt for industrial monochrome

© Dunelm

You can’t go wrong with black and white, and we love how this black wall panel and shelving contrasts against the plain white walls, providing a space to showcase your favourite wall art, books or work accolades.

6. Go traditional

© Cuckooland

For a more timeless and traditional home office, a brown leather chair and oak desk are the ideal choice. Accessorise with a vase or decorative items in complementing neutral and metallic tones to add a contemporary update to this classic aesthetic.

MORE: 30 home office must-haves that make the best working from home gifts

SEE: 12 genius dressing tables that double up as desks

7. Pick pretty prints

Feminine florals, scalloped details and pretty prints combine to create a beautiful home office space that will have you eager to get to your desk in the morning.

8. Think industrial

A wall desk is both practical and on-trend, providing space for you to store books and display photos, while creating a modern industrial vibe in your working from home space.

9. Light and bright

Avoid distractions and maximise light in any office by decorating all in white. Wooden panelling across one wall and the ceiling add interest to a monochrome room, while open shelving and storage will mean you always have everything you need close at hand.

RELATED: 10 real-life home offices of Instagram that will inspire you to work

10. Going green

Calming and cheerful, green is a great colour choice for a home office, whether you go for one statement wall or decorate your entire room in the perky hue. Paired perfectly with sleek black furniture and grey and white accents, this is a home office you’ll love to show off on your next Zoom call.

11. Beautiful Biophilic

© Furniture and Choice

If your desk is located within your bedroom, creating a room divider with open shelving filled with lush plants and blooms is the perfect way to separate the two spaces and ensure your bedroom is still very much your sanctuary after a busy day of work.

12. Create a home office nook

You don’t need a lot of space to create a functional and fabulous home office; utilising an alcove or nook within your bedroom or living room can allow you to work from home without impacting on valuable floor space. Add shelving above your desk to store your books and display your favourite photos and ornaments.

13. Feeling neutral

Neutral tones never go out of style, so try mixing soft tones of cream, beige and grey for a classy and understated vibe. A glass-topped desk is a great way to make a statement, while plants and carefully-curated artwork finish the look to perfection.

14. Get playful

© Furniture and Choice

There’s nothing mellow about this yellow and white home office – and we love everything about it. Neon signs, fairy lights and colour pop accessories add a playful touch to this workspace, while a grid or pegboard provides a great way to display photos and prints, and keep on top of your to-do list.

15. Make it modular

A modular desk system is great for smaller spaces, providing space for all of your home office essentials while giving you the flexibility to move it around as required and truly make it your own.

Want to keep up to date with the latest stories? Sign up to our HELLO! Newsletters today.

Source: hellomagazine.com

Apache is functioning normally

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Source: thesimpledollar.com

Apache is functioning normally

Today we’ll review “Texas Trust Home Loans,” which refers to itself a leading, low-cost online mortgage company based in, you guessed it, Texas!

The company makes three big declarations: that they offer low rates, can close your loan in just 21 days, and are top rated based on customer reviews.

Let’s find out more to determine if they are living up to those lofty goals and ultimately making their clients happy.

Texas Trust Home Loans Fast Facts

  • Direct mortgage lender that offers home purchase and refinance loans
  • Founded in 2015, headquartered in Dallas, Texas
  • A dba of parent company American Heritage Capital, LP
  • Licensed to do business in five states nationwide
  • Low-cost online mortgage lender that aims to close loans in just 15 to 21 days

Texas Trust Home Loans is a Dallas-based direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinance loans.

This means they serve both existing homeowners and those looking to purchase a home, remotely via their call center in Texas.

If you apply, you’ll be working with a loan team online and/or by phone to close your loan, with their aim to fund loans in just 15 to 21 days, which is super fast.

The company got its start back in 2015 and is actually a dba of parent company American Heritage Capital, LP, which also operates brands like Lendova.

At the moment, they are licensed in just five states nationally, including Colorado, Florida, Texas, Virginia, and Washington.

How to Apply with Texas Trust Home Loans

  • Call or simply visit their website to begin your loan application
  • You can search real-time mortgage rates then apply if you like what you see
  • They offer a digital home loan experience from start to finish using the latest tech
  • Most tasks can be completed electronically including secure document upload and eSigning of disclosures

To get started with Texas Trust Home Loans, you can call them up directly on the phone or just head over to their website.

My preference is their website, where you can search daily mortgage rates, then compare the many loan options side-by-side to determine which is best for your situation.

Assuming you find something you like, there’s a “next” button located next to each option that leads you directly to a digital mortgage application.

At that point, simply sign up, fill out the online application, upload any required documents, review and electronically sign your loan disclosures online, and you’ll be off to the races.

They say their All Digital Mortgage could save you up to $4,250 due to lower overhead, with the savings passed onto their customers.

Once submitted, you can sign in 24/7 to check loan status, access your to-do list, or get in touch with your loan team if you have questions or concerns.

Texas Trust Home Loans appears to make it easy to apply for and close a loan quickly thanks to their use of the latest fintech.

Loan Programs Offered by Texas Trust Home Loans

  • Home purchase loans
  • Refinance loans: rate and term, cash out, streamline
  • Conforming loans backed by Fannie Mae and Freddie Mac
  • Jumbo loans
  • FHA loans
  • Fixed-rate loans: 10, 15, 20, 25, and 30 year terms
  • Adjustable-rate loans: 5, 7, and 10-year ARMs

Texas Trust Home Loans Rates

One advantage to shopping with Texas Trust Home Loans is the fact that you can view mortgage rates directly on their website.

No need to call anyone or reveal any of your personal information first. Simply head to their website and click on “Rates.” They also have some sample mortgage rates right on their homepage.

From there, you’ll be able to tailor your search by providing borrower and property details to get accurate, up-to-date mortgage rates.

You’ll see multiple options that vary in closing costs, with the cheapest interest rates displayed requiring discount points be paid, and the more expensive rates requiring nothing out-of-pocket thanks to lender credits.

This allows you to decide on a perfect combination of rate and fee, whether you want the lowest payment possible or the least amount of fees.

They also advertise on Bankrate, and from what I saw were charging a $1,495 loan origination fee.

It’s unclear if they charge this fee on all their loans, or only via third-party sites where they advertise.

Regardless, it appears that all their loans can be structured so borrowers don’t pay any fees out-of-pocket thanks to those credits.

While Texas Trust Home Loans does not charge an application fee, they do require an upfront payment between $450.00 to $1200.00 (depending on the property type and location) for the cost of the home appraisal, which is non-refundable.

This is pretty standard practice, as all mortgage lenders tend to want some assurance that you won’t apply then go elsewhere for a better deal.

All in all, they seem to offer low rates as advertised, but do take the time to gather several mortgage quotes to ensure you snag a good deal.

Texas Trust Home Loans Reviews

On Bankrate, the company has a perfect 5-star rating from nearly 600 customer reviews, with literally only a couple not rated 5/5.

Additionally, 100% of those who reviewed the company would recommend them to others.

Over at Google, Texas Trust Home Loans has a similarly strong 4.7-star rating from about 300 reviews, so it’s clear they are earning top marks in customer satisfaction consistently.

Their parent company American Heritage Capital isn’t Better Business Bureau accredited, but does have an ‘A+’ rating based on complaint history.

Furthermore, they’ve only had one complaint closed in the past three years, and none in the past 12 months.

In summary, Texas Trust Home Loans seems to live up to their promise of offering low rates, fast closings, and stellar customer service.

I particularly like their transparency when it comes to mortgage rates and fees, and the fact that you can complete most tasks on a self-serve basis if you’re comfortable doing so.

Texas Trust Home Loans Pros and Cons

The Pros

  • Offer a digital home loan experience
  • Can apply for a mortgage online without any human assistance whatsoever
  • Openly display their mortgage rates on their website without need to login
  • Transparent about all fees including lender and third-party charges
  • Appear to offer low interest rates with limited or no lender fees
  • Plenty of loan programs to choose from
  • Their parent company has a A+ BBB rating
  • Online learning center where they educate on mortgages
  • Excellent reviews from past customers across different ratings websites

The Cons

  • Only licensed in a small handful of states
  • Limited physical locations
  • Don’t appear to offer VA or USDA loans

(photo: Ray Bodden)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Since 44.4% of the Consumer Price Index is shelter inflation, it’s a massive deal in economics that rents took off in the last two years. Without rents taking off, the CPI data would look much more tame, like what we saw from the years 2000-2019.

As you can see in the chart below, core CPI wasn’t exploding at all this century until COVID-19 hit us. More supply of apartments coming on line will be good news for mortgage rates going forward. The history of global pandemics has always been inflationary early on, as the production of goods gets hit immediately. Then things tend to cool down over time from their inflationary peak level.

Over the next 12 months, the CPI data will account for the real-time cooling down of shelter inflation. And just like the data lagged early on when shelter inflation took off; the opposite will happen over the next year.

Tuesday’s housing starts data does show some promise on the front of attacking inflation and helping lowering mortgage rates, so let’s look at the report and find out what I am talking about.

First, however, remember that the housing market is still in a recession, which I wrote about on June 16, 2022. Housing permits have been falling as the builders simply have too much supply to be confident in building homes again. The housing market is still in a recession until housing permits rise in duration. Even though the builder’s confidence index has been rising recently, it still hasn’t led to a significant uptick in housing permits.

From Census: Building Permits Privately‐owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,413,000. This is 8.8 percent below the revised February rate of 1,550,000 and is 24.8 percent below the March 2022 rate of 1,879,000.  Single‐family authorizations in March were at a rate of 818,000; this is 4.1 percent above the revised February figure of 786,000. Authorizations of units in buildings with five units or more were at a rate of 543,000 in March.

As you can see in the chart below, this looks nothing like the housing peak in 2005 and the crash toward 2008. Back then, housing permits were collapsing as new home sales fell 82% from the peak. Currently, new home sales have been trending better as the builders are taking advantage of low existing inventory. Of course, once we get lower mortgage rates, that should help the builders sell more homes.

The big difference in this housing recession versus other cycles is that housing completions are still rising, which is unusual. However, because of the COVID-19 delays, we are still working through a backlog of homes under construction.

From Census: Housing Completions Privately‐owned housing completions in March were at a seasonally adjusted annual rate of 1,542,000. This is 0.6 percent (±13.3 percent)* below the revised February estimate of 1,552,000, but is 12.9 percent (±18.6 percent)* above the March 2022 rate of 1,366,000. Single‐family housing completions in March were at a rate of 1,050,000; this is 2.4 percent (±12.4 percent)* above the revised February rate of 1,025,000. The March rate for units in buildings with five units or more was 484,000.

As you can see below, completions are like a slow-moving turtle, but they are still rising, so while housing permits are falling, consistent with the housing recession, housing completions are a different story.

Now the data line that excites me the most, of course, is shelter inflation, meaning the growth rate of rent inflation, because it’s cooling down already. This is something I talked about on CNBC last September on the day the CPI report was being reported.

As shelter inflation and wage growth cool down, we are adding more supply, not subtracting. This is key for mortgage rates looking out for years to come. As you can see in the chart below, we have a historic number of 5-unit construction in the works. This is the best way to fight inflation — with supply, with more choices, and landlords having to compete with more supply, preventing them from raising rents faster. The goal should be getting these units out as fast as possible.

One thing that will likely happen soon is that 5-unit builds under construction will start falling, such as we see with single-family homes under construction. With the Federal Reserve wanting a job-loss recession and banking credit getting tighter, apartment construction should fall like it did in the recession of 1974. I just hope it doesn’t collapse down like it did in the recession of 1974. As we can see in the chart below, the single-family units under construction are already falling as they should.

While the housing starts data doesn’t look like too much is happening and still has a recessionary vibe, we have some positive data in these reports.

As the cost to borrowers rises and credit gets tighter, we should be grateful that we have many apartments under construction. Just imagine if rental inflation wasn’t cooling down in real time, and we didn’t have these apartments in the works — it would look like the 1970s again.

That is the last thing the housing market and the U.S. economy need, rent inflation taking off as it did in the mid and late 1970s. This would mean mortgage rates have room to go higher and stay higher.

As you can see in the chart above, after the burst in housing inflation coming from the 1970s, things started to calm down. You can also see why and how inflation wasn’t a problem this century until COVID-19 hit us. That is the history of global pandemics, inflation data gets wild as supply chains are broken, and then things get back to normal over time.

Source: housingwire.com

Apache is functioning normally

There is more mortgage pain to come for the UK’s homeowners, many of whom are yet to feel the full impact of rising interest rates, according to a think tank.

The trend towards homeowners taking out longer fixed-rate mortgages has delayed the impact on some households, with two-thirds of the eventual £12 billion increase in annual mortgage costs still to be passed on, the Resolution Foundation said.

The Bank of England increased the base interest rate to 4.5% from 4.25% on Thursday – the 12th rise in a row since rates started going up in December 2021.

The average mortgage holder could see their monthly interest payments jump by around £200 a month if they fixed to a new rate this year, the Bank’s economists estimated.

Simon Pittaway, senior economist at the Resolution Foundation, said: “While interest rate rises might be coming to an end, there will be plenty more mortgage pain to come.”

Around four-fifths (81%) of outstanding residential mortgages in December 2022 were fixed-rate deals, according to UK Finance figures. This group will not feel the immediate impact of base rate rises until their deal ends.

The foundation said that, while the Bank’s rate-rising cycle has been sharp, the growing popularity of fixed-rate mortgages and longer-term deals means many borrowers are yet to see the impact on their mortgage outgoings.

Of the 7.5 million mortgagor households that will eventually be affected by the rate-rising cycle since the end of 2021, around half have yet to see a change in their mortgage rate, the foundation said.

It added that mortgage costs are expected to remain elevated for some time.

Richer households, which are more likely to be mortgaged than poorer homes and tend to be more expensive properties, will face the majority of the £12 billion rise in mortgage costs, the foundation said.

But it predicted that the scale of the living standards shock will be particularly high for those low and middle-income households who are affected.

Younger home-owning families, who tend to have lower incomes than older households and higher mortgages relative to incomes, will also face a sharp living standards hit, the foundation said.

The foundation is focused on improving living standards for people on low to middle incomes.

A spokesperson for trade association UK Finance said: “Lenders stand ready to help anyone who might be concerned about their mortgage payments. If you’re struggling, don’t put it off – speak to your lender as early as possible.

“Banks have a range of tailored options available to help. Your lender will work with you to find the best option for your individual circumstances.”

Source: uk.sports.yahoo.com

Apache is functioning normally

The Offer

Direct link to offer

  • American Express is offering up to 80,000 points + a free night certificate no annual fee Hilton card after $1,000 in spend

Card Details

  • No annual fee
  • Card earns at the following rates:
    • 7x on Hilton hotels or resorts
    • 5x at U.S. restaurants, U.S. supermarkets and U.S. gas stations
    • 3x on all other purchases
  • Welcome bonus offer not available to applicants who have or have had this product.

Our Verdict

Previous best deals were  130,000 points or 100,000 points + $100. This is less points, but it does come with the free night certificate which could be very useful. There are also the following increased bonuses on other Hilton cards:

Source: doctorofcredit.com

Apache is functioning normally


Credit Card Debt Relief: 6 Strategies – MintLife Blog

Skip to main content

$1 trillion in credit card debt, there must be a sustainable option to lessen the stress of carrying large debts month over month, year over year. Credit card debt relief is a way to not only get out of seemingly endless debt but also to perhaps bring about a little bit of mental—and ultimately, financial—peace.

Rather than just assuming you can entirely write your debt off with little impact otherwise, it’s important to know the various credit card debt relief options that are available and the different impacts each approach will have on your credit and financial health over the long term.

Keep reading to learn six credit card debt relief strategies, or use the links below to navigate the article.

How to Pursue Credit Card Debt Relief

Seeking credit card debt relief can be an ideal option for those experiencing hardship from life’s unexpected happenings, whether that’s medical bills, a sudden loss of income, or debt that has become excessively difficult to manage. Before deciding on a course of action, it’s important to know the differences between each approach.

Here are six strategies to consider for credit card debt relief:

1. Do-It-Yourself

Credit card debt relief may be able to be reached through a resolute commitment to aggressively paying down debts as quickly as possible. Do-it-yourself options to credit card debt relief require discipline and may not offer the degree of immediate debt relief desired.

If you have a particularly good credit score, you may be able to negotiate a lower interest rate on your cards through individual credit card companies to lessen the burden of debt.

While you’re not necessarily entitled to a lower interest rate, explaining your hardship and mentioning the length of time you’ve been with the credit card company could help secure a better deal, making debt repayment more manageable.

You might also consider taking a new approach to paying down debt by:

  1. The debt snowball approach — paying off the credit card with the smallest interest rate first while making minimum payments on other debts.
  2. The debt avalanche method, which allows for accelerated debt repayment as you put extra money towards the debt with the highest interest rate, while paying the minimum on all other outstanding debts.

The snowball method costs more but can boost confidence in being able to fully tackle paying off one card before moving onto the next.

2. Consolidation

Consolidating debt means combining all outstanding debts you owe to different lenders into a new loan.

Credit card consolidation, while not a method that outright eliminates debt, can be a strategy to help you pay down debt faster. With this option, you’ll only be making one payment a month instead of several— potentially making it easier to keep track of what you owe.

By taking out a low-interest rate loan through a lending institution, you may be able to pay off the majority, if not all, of your high-interest credit card debt.

Another option for consolidation is to do a balance transfer from a high-interest credit card to a credit card with a lower or no interest rate to lessen the burden of interest charges. It’s important to note that this option may come with a fee and doesn’t simply get rid of debt, but it could make the credit card debt relatively easier to pay down.

3. Credit Counseling

Seeking credit counseling, which is usually a free service provided through nonprofit organizations and independent financial agencies, may help lead you in the right direction to achieve credit card debt relief.

  • How it works

Trained counselors can guide you through repayment planning by reviewing your budget, analyzing your debt, and offering recommendations to help find a sustainable debt relief solution.

Counselors simply offer suggestions, making the service free unless you opt to use their help in pursuing a course of action, such as enrolling in a debt management program.

4. Debt Management Program

If you decide to sign up for a debt management program (DMP) through a credit counseling agency, you’ll make a single monthly payment to the agency, and the agency will in turn pay your creditors. With this option, you’ll likely be able to pay off your debts within three to five years, as outlined in your specific debt management plan.

  • Considerations

By enrolling in a debt management plan, you won’t be able to obtain new credit until your debts are paid off. In fact, the credit counseling agency will close your active credit accounts while you complete the plan.

Closing your credit card accounts could negatively impact your credit score in the short-term, but by making regular monthly payments (that you can actually afford), debt management programs may help you find credit card debt relief over time.

5. Debt Settlement

Debt settlement means negotiating with your creditors to pay less on your debt than the amount you actually owe. This agreement is typically arranged by a third party—a debt settlement company—that acts as an intermediary between you and your credit card companies.

  • How it works

In this scenario, you cease making payments directly to the credit card companies and instead pay the debt settlement company, which in turn offers a lump sum payment to appease the creditors.

  • Considerations

This avenue is typically a poor choice for credit card debt relief because as you stop making payments to your creditors, your credit score will not only deteriorate, but credit card companies can also come after you with penalty fees and even legal action for failing to make payments. There could also be tax implications if a large amount of debt is forgiven, because the IRS may consider cancelled or forgiven debt as taxable income.

6. Bankruptcy

Bankruptcy should be reserved as a last resort in extreme cases of credit card debt hardship, as it has serious implications on your credit score.

  • The two most common types of bankruptcy are:
  1. Chapter 7 which forgives your debts on the condition that you liquidate some of your assets to pay creditors.
  2. Chapter 13 in which you enter into a court-arranged debt repayment plan that lasts three to five years, after which your debts are dismissed.

Chapter 7 bankruptcy is the only true way to avoid paying your debts, as it essentially wipes out outstanding debt entirely and offers a clean slate. Creditors still receive some means of repayment, whether in assets or through the repayment plan, and bankruptcy can offer a way out of otherwise inescapable debt.

Effects of Credit Debt Relief on Your Credit

Depending on which approach you pursue to achieve credit card debt relief, effects on your credit could range from nonexistent to severe damage. Since credit utilization (the amount of outstanding balances you have compared to your credit limit) makes up 30 percent of your credit score, carrying high credit card debt month after month is likely to have a damaging effect on your score.

The self-managed approach to reducing debt may not necessarily hurt your credit, so long as you continue to make regular payments. Credit card consolidation may help you tackle debt faster, possibly leading to a better score in the long run. Credit counseling won’t have a direct impact on your credit unless you decide to act on the advice given, such as signing up for a debt management plan. Depending on the parameters of the specific debt management program you sign up for, DMPs could have either a positive or negative effect on your credit.

On the more extreme end, opting for debt settlement through a third-party has the potential to hurt your credit when you stop making regular payments to credit card companies. Similarly, filing for bankruptcy could critically weaken your creditworthiness and should only be a last resort option, as a Chapter 7 filing stays on your credit report for ten years, while a Chapter 13 will remain for seven years.

The Bottom Line

The best approach to credit card debt relief depends entirely on the individual level of hardship you have in paying back credit card debts. It’s essential to consider the different options to reducing the strain of credit card debt that will work for your lifestyle. Whether you opt to take the do-it-yourself route or find yourself filing for bankruptcy, taking a committed approach to minimizing your debt could lend itself to better financial health in the long run.

  • Previous Post
    6 Tips to Get Ahead of Your Student Loans Before…

  • Next Post
    Getting Approved for Your First Credit Card

Browse Related Articles


Browse by Topic

Source: mint.intuit.com

Apache is functioning normally

I’ve written about the importance of credit scores before, especially when it comes to getting a mortgage, mentioning that you could save tens of thousands of dollars if you simply had excellent credit.

Fortunately, it appears that the general public is aware of this, per a new study from credit bureau Experian.

The company said some 45% of would-be home buyers (those planning to buy in the next year) are holding off until they improve their credit scores.

This is a good thing because it means they’ll be able to qualify for a greater array of mortgage programs, instead of say just FHA financing, and potentially obtain a lower mortgage rate (and lower monthly payment) in the process.

Still, 34% of those surveyed fret that their credit scores may hurt their ability to purchase a home. And one in five are holding off entirely for at least the next 5-10 years because of a low credit score.

But instead of worrying and accepting defeat, why not take action to improve things so you can shop for a home with confidence?

54% of Future Buyers Are Working on Their Credit Now

The survey found that more than half of future buyers were actively working on improving their credit before making an offer by paying off existing debt, keeping balances low, and making on-time payments.

This is wise given the difference in mortgage rates for an average credit score versus an excellent credit score.

Generally, you want to shoot for a FICO score north of 760 (though 740 might also do) to ensure you obtain the best pricing on both your mortgage rate and PMI, if necessary.

Sure, you can still get approved for a mortgage with an average or even poor credit score, but you’ll just wind up paying a lot more interest over the years. And poor credit history is still the number one reason why individuals are denied a mortgage.

How to Take Action Today

If you’re unsure of how to turn things around, it’s actually pretty easy if you have the means. Assuming you’ve made timely payments on all your credit accounts but your score still isn’t where it should be, consider paying down those outstanding debts.

Last month, I revealed that that my own credit score tanked after the holidays because I made a ton of purchases on my credit cards, this despite paying all the balances to zero well before the due date.

The problem is that credit scores are simply a snapshot in time of your situation, and if you make a bunch of charges you could look worse off than you really are.

So the easiest way to keep your credit scores elevated is to avoid as many purchases as possible before looking for a home, while also paying down any existing balances. This will certainly boost your scores. Additionally, this budgeting can help you set aside more money for the down payment, closing costs, and reserve requirements associated with a mortgage.

Another biggie is to avoid opening any new credit accounts before you begin your home search. This is easy, just don’t do it. Those new credit accounts can drag your credit scores down and will likely increase your debt and take a bite out of your assets. Once your mortgage closes, you can go buy new furniture and whatever else you want.

If you’ve got some late payments on your credit history, your scores will definitely be depressed. One way to resolve this is by disputing the delinquencies with the credit bureaus directly, via their own websites. You don’t have to mail in letters anymore, so this process is a lot easier.

It’s possible to get negative items removed simply if the creditor(s) doesn’t respond to your dispute (even if you were still technically at fault). Once removed, your credit scores can skyrocket.

The takeaway is that a low credit score shouldn’t be the sole reason why you’re not buying a home. And it’s a very fixable problem.

However, it does take time for positive actions to reflect in your credit scores, so it’s never too early to start working on it. The moves you make today can save you thousands upon thousands in the way of a lower mortgage rate.

In some cases, you might even be able to buy more house because less outstanding credit card debt means your DTI ratio will allow for a larger mortgage payment. Your offer will also be more competitive.

Source: thetruthaboutmortgage.com