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Apache is functioning normally

December 7, 2023 by Brett Tams

Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

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Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

By:
Rob Chrisman

Tue, Dec 5 2023, 11:33 AM

My cat Myrtle doesn’t have a lot of rizz, and there are those that will argue that no cat has any charisma whatsoever. But plenty of marketing people do, or can create it, and even if you’re not in marketing, there are some clever marketing people out there. Creative minds as well, and if you’re looking for a Christmas present, here are the “best inventions of 2023” per Time Magazine. There is also cleverness and creativeness in the modular home manufacturing industry, probably far outpacing the ability of state and local government to issue permits. Meanwhile, lenders are facing a winter trying to figure out if they are in the “Survive until ‘25” camp or the “Grow more in ‘24” mindset? The credit industry is reeling as lenders grapple with soft versus hard pulls, renegotiating pricing, and bundled deals. And for some reason LO comp continues to be unsettled: dual comp, MLOs as real estate agents, transferring pipeline data when changing jobs, different fee structures within the same state, and so on. (Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an interview with Mayer Brown LLP’s Holly Spencer Bunting on RESPA happenings and how the industry can get to better regulation.)

Lender and Broker Products, and Services

Out with the old; in with the new! One of the things we most look forward to in December (besides the holidays, of course!) is the opportunity to envision and plan for a great future. We’ve curated a killer panel of industry execs who will share best practices and their favorite secrets to help you usher in 2024 at the highest possible note. TrustEngine’s Dave Savage hosts Dustin Owen of Waterstone Mortgage and Brian Covey of Revolution Mortgage in “Chaos to Clarity”, a sure-to-be deliciously juicy webinar that will inspire and energize you to end 2023 with a bang and move powerfully into the new year. Register now to save your seat!

What’s an internal audit anyway and do you need one? An internal audit acts as a third line of defense for your mortgage operation. It provides comprehensive assurance based on the highest level of independence and objectivity to evaluate the effectiveness of management’s internal controls. This function should advise your mortgage operation on plans to achieve the company’s strategic, operational, financial and compliance goals. An effective internal audit should go far beyond just checking a compliance box; it should be an integral part of protecting your company. If you want to ensure you’re adhering to regulatory requirements and demonstrating good faith business practices, a Richey May internal audit is a good fit. If you’re looking to be Fannie Mae approved in the future or want to maintain your approved status, it’s required. If you’re unsure whether you need an internal audit, ask one of Richey May’s experts today or learn more here.

“Is it a challenge getting what was promised out of your current subservicer? New regulations are always moving the compliance goal posts and your customers are craving the newest technology and high-quality customer experience to meet their needs. After all, aren’t those the reasons you contracted with them? Perhaps it’s time for a change. Come meet Servbank at the MBA Servicing Solutions 2023 and let us show you how our cutting-edge, fully transparent and award-winning servicing platform (SIME), combined with our family of caring Customer Care reps, will protect your company from regulatory misses and keep your customers loyal by delivering a superior experience every time. If your current subservicer promised to make life easier for you, but continues to miss the mark, now is the time to partner with Servbank, the nation’s only fintech bank subservicer, who can meet your unique needs. Stop by booth #601, or schedule a meeting with Servbank.”

Right in time for the holidays, Floify has launched Floify Broker Edition, a one-stop lending platform that makes it easy for brokers to manage loans in one place. Wrapped in Floify’s famously sleek interface, Floify Broker Edition is packed with magical features that save precious time and money, such as automated mortgage call reporting, dual AUS functionality, and PPE and wholesaler integrations. Just like Santa’s elves, automated workflows advance loans behind the scenes so brokers can spend more time spreading the joy of homeownership and less time pushing paper. Treat yourself (and your borrowers!) this holiday season with a lending platform that’s a joy to use. Experience the magic of Floify Broker Edition firsthand and book a demo today.

Take advantage of more opportunities by adjusting your business to match the market. Recently, lenders who could quickly scale their home equity products were able to capitalize on the increased demand. Are you maximizing home equity lending in your system of record? Encompass® by ICE Mortgage Technology® is the only solution on the market that can be easily configured without any development efforts to support a user’s unique products and workflows for each of their channels, including retail, consumer direct, HELOC, wholesale and correspondent. This means you can quickly react to market changes and manage your business in your own way. Click here to read our recent blog that shares strategies to maximize your home equity lending business and how Encompass makes it easy.

A borrower’s servicing experience is only as good as the back-office environment that supports it, which is only as good as the technology that powers it. That’s why ICE is actively moving servicing forward through digitizing the consumer experience and streamlining back-office operations. The mortgage technology experts at ICE understand that effective servicing solutions are built from the “outside in”, designing with the customer in mind and working until the same level of convenience is brought to those working behind the scenes. Read the new blog from Sandra Madigan, Chief Digital Officer at ICE Mortgage Technology, to see how ICE is engineering with empathy, and helping people achieve and maintain the dream of homeownership.

In Naples, people hurl plates, appliances and even furniture out of their windows on New Year’s Eve to symbolize making room for the new. If your LOS has been causing you strife, take a cue from the Neapolitans and chuck it out the window. Dark Matter Technologies is here to help you usher in a more prosperous 2024 with its Empower LOS. A fully cloud-based system, Empower brings your tech ecosystem together in one place and intelligently orchestrates delightful borrower experiences and efficient loan production. Schedule a demo with the Dark Matter team to learn how Empower can elevate your business in the year ahead.

Two things come to mind when looking for strategies to help LOs today. First, understand home buyers in the context of uncertainty in the market today. Get back to basics of why homeownership still makes sense: pride of ownership, building equity for the future, and a better environment for their family to live and grow. Next, be able to articulate good solid strategies to make home buying more affordable, both down payment strategies and ARMs to lower payments. It’s also important to understand buyer’s bias against ARMs and counter with common sense arguments. Usherpa, the #1 ranked mortgage CRM in customer satisfaction and loyalty, is offering these FREE printable handouts with informational scripts to use when talking with your homebuyers and valuable resources you can easily send them about ARMs.

ActiveComply is thrilled to introduce a brand-new product, WebCompass™, to discover and manage your websites for branding, compliance, and accessibility. The same power as SocialShield™ for Social Media but now for website and brand compliance. With WebCompass™ you can discover and monitor company and employee websites & web pages, protect your brand with website content scans and compliance tracking, uncover rogue or unauthorized websites, and streamline reporting demands during regulatory examinations. Sign up today for a demo and the first 25 customers will receive a discount. ActiveComply cloud-based solutions help highly regulated industries confidently manage their social media and website compliance and virtual inspections.

Non-QM, DSCR, Jumbo Broker and Correspondent Program News

Can we continue our same ad please: Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

PRMG offers several Non-QM resources such as product matrices, job aids, trainings, calculators, worksheets, and other information to assist with using Non-QM loan products. Access the TPO Non-QM Resources page for detailed information.

Angel Oak Mortgage Solutions announced the release of its Blended Rate Calculator, providing borrowers with a quick and straightforward tool to estimate potential loan scenarios.

In tandem with its Angel Oak Mortgage Closed End Second Loans program, the Blended rate calculator helps you show borrowers what their 1st and 2nd payments, as well as LTV and blended rates, will be for both mortgages. This tool enables borrowers to easily assess how they can tap into their home’s equity while retaining their first mortgage.

PHH Mortgage announced new products for Non-Agency offering as of November 28th. Go to the company library to view the information.

A Jumbo option designed to empower homebuyers in high-value markets to secure their dream homes. Explore the advantages of Plaza’s new Jumbo Champion loan program, featuring top-notch pricing, loan amounts up to $3 million, and eligibility for FICO scores starting from 720.

LendSure Mortgage Corp., a Non-QM wholesale lender, announced the launch of its new Profit & Loss (P&L) Loan Program offering “a simplified and user-friendly process for business owners seeking capital in a complex financial landscape.” LendSure’s P&L Loan Program is designed to cater to business owners and self-employed investors with fluctuating seasonal income or cash businesses. It eliminates the need for a self-employment questionnaire, simplifying and speeding up the application process and making it more convenient for borrowers to secure financing. “We aim to empower business owners, redefining industry standards and facilitating their path to financial success… The program offers two tiers of loan amounts, giving borrowers the choice to provide only P&L statements for loan amounts up to $1,000,000 or supply two months of bank statements with P&L statements for loan amounts up to $1,500,000. This flexibility enhances the broker-customer relationship by providing a straightforward, efficient solution for business owners. Reach out to LendSure for more information.

First time home buyer/ first time investors now have a chance to buy an investment property with no income. Hometown Equity Mortgage offers a Bridge for First time home buyers; up to 75 percent LTV on a purchase, no ratio DSCR product, NO VOR/VOM, allowed to live rent free. FICO down to 650, Flexible guidelines, 12-24 month I/O with no prepay or EPO.

HighTech Lending Wholesale is now offering Jumbo Reverse Mortgages the Platinum Reverse which comes in three variations: Maximum LTV Fixed Rate, Adjustable Rate with a Line of Credit, and Reduced LTV with a lower Fixed Rate. The minimum age for the Platinum is 55 in most states, but some require the borrower to be 60 or 62.

Capital Markets

First Community Mortgage has named Jeff Pancer to the new position of Executive Vice President, Capital Markets. Congratulations!

Markets finally paused recent optimism that has been riding on the assumption that the Fed will lower interest rates in 2024. Until yesterday, that optimism had fueled rallies in both stocks and bonds over the past few weeks, with investors continuing to overlook Fed rhetoric and bet on deep interest rate cuts next year. Fed Chair Powell on Friday reiterated that it is too early to consider cutting rates, and that the Federal Open Market Committee plans to keep policy restrictive for some time. Despite his stance, markets are still at odds with the Fed, pricing in the first rate cut as early as March and 125 basis points of rate cuts in total for 2024. Remember, sticky inflation can prevent the Fed from cutting.

The Fed is widely expected to leave rates unchanged for the third consecutive FOMC meeting next week, in what would be no change for the fourth out of the past five meetings. However, the post-meeting statement will likely continue to indicate that additional tightening is possible. The fear is that the Fed declaring victory too early while the economy is growing, and the labor market is tight is a risk if inflation spikes back up. The Fed has entered its blackout period ahead of the meeting, so we won’t get any more chatter from FOMC members until after the meeting. Additionally, there will be no Treasury note or bond auctions this week. This week will be dominated by the jobs report on Friday where expectations are for an improvement from October’s report: an increase of 180,000 jobs in November and no change in unemployment.

Today’s economic calendar has a lot of non-market moving releases: Redbook same store sales for the week ending December 2, final November S&P Global services PMI, expected to decline slightly, ISM non-manufacturing PMI for November, expected to tick up, and JOLTS job opening for October, supposedly sliding to 9.35 million from 9.55 million in September. We begin the day with Agency MBS prices better by .125-.250, the 10-year yielding 4.23 after closing yesterday at 4.29 percent, and the 2-year yield down to 4.52 as investors continue to believe, perhaps mistakenly, that the Fed is not only done raising rates but will come around to cutting them.

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Apache is functioning normally

December 7, 2023 by Brett Tams

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

A pay for delete letter is a negotiation tool intended to get a negative item removed from your credit report. It entails asking a creditor to remove the negative information in exchange for paying the balance.

If you have a spotty credit history and you’re working to turn your finances around, you may be wondering how to remove negative items on your credit report. Late payments, charge-offs, credit inquiries and overdue account citations can all count against you.

There are, however, a few ways to potentially have past mistakes removed, one of which is a pay for delete letter.

What is a pay for delete letter?

A pay for delete letter is a negotiation tool intended to get negative information removed from your credit report. It’s most commonly used when a person still owes a balance on a negative account. Essentially, it entails asking a creditor to remove the negative information in exchange for paying the balance.

Even if you’ve gotten yourself out of debt and paid off collection accounts, without a pay for delete letter, negative credit items can remain on your credit bureau file for up to seven to 10 years.

Time heals all wounds—including credit mistakes—but if you can’t simply wait around for your credit to improve, you’ll want to consider taking some actions toward repairing your credit. Read on to learn when you should send a pay for delete letter, view sample templates and discover other credit repair options.

How a pay for delete letter works

An individual with debt writes a pay for delete letter to a collection agency with a request to remove negative information from their credit report in exchange for payment.

First, in order to understand how and why a pay for delete letter works, you’ll need some background on collection agencies.

Collection agencies are in the business of collecting debt. Some collection agencies are contracted to collect for a creditor and receive a percentage of what’s collected. Others buy the debt and seek collection as the “current creditor.”

Usually, a collection agency will only consider offering a pay for delete letter when you’re willing to pay more than it paid for the debt. There’s no magic number, but generally knowing what the other party wants gives you more information about what to include in your pay for delete letter. This increases your chances of succeeding in the negotiation.

Tips for sending a pay for delete letter

A pay for delete letter isn’t a magical fix. Not all creditors will accept pay for delete letters. Typically, many creditors like corporate banks, credit unions and even small-town banks may not be receptive to this strategy.

However, small utility bills, such as phone, cable and power bills, that go to collections are more likely to be accepted by creditors. Before you send a pay for delete letter, here are some tips to help you avoid common mistakes.

  • Consider the status of your credit reporting time limit. Is the debt several years old and about to expire? If so, a pay for delete letter isn’t necessary—the debt will no longer impact your credit score after the time limit has expired. If the credit reporting time limit is still far away, you may want to send a pay for delete letter. In addition, if you want to purchase a home or a car, the lender may require that the collection items are paid off, so you may want to send a pay for delete letter.
  • Verify your debt. Before making a pay for delete offer, it’s imperative that you’ve sent a debt validation letter within 30 days of initial contact with the debt collector and received verification of debt from them. In some cases, collectors could request payment even if your state’s statute of limitations on overdue accounts has run out.
  • Reassess your financial situation. If your pay for delete letter is approved, you often will only have a short window of time to make the payment. Only send one if you’re confident you can pay the agreed-upon amount.
  • Save details for your records. Before sending the letter, be sure to keep a copy for your records. Then when the recipient accepts your terms (hopefully), keep a copy for your records and include a copy with your payment. Also, try to utilize a method that you can verify shipping and delivery, such a “return receipt” or Registered Mail. In the event of any complications, you’ll be glad you did these things.

Pay for delete letter template

Your pay for delete letter doesn’t need to be long and complicated—or even full of legal jargon. Be sure to provide all the relevant information like dates, payment amounts and other details specific to your scenario.

The template below can help you write your own pay for delete letter. Simply update the bolded portions with your own information.

<Your Name>

<Your Address>

<Your City, State, Zip Code>

<Collection Agency’s Name>

<Collection Agency’s Address>

<Collection Agency’s City, State, Zip Code>

<Date>

Re: Account Number <XXXXXXXXXXX>

Dear <Creditor’s Name>,

I am writing this in response to your recent correspondence related to account number <XXXXXXXXXXX>.

I accept no responsibility for ownership of this debt; however, I’m willing to compromise. I can offer a settlement amount in exchange for your written agreement to the following terms:

  • You agree to accept this payment as satisfying the debt in full (once you receive the agreed-upon amount).
  • You agree to not list this debt as a “paid collection” or “settled account.”
  • You agree to completely remove any and all references to this account from the credit reporting agencies (Equifax, TransUnion and Experian) that you have reported to and validated this account.

I am willing to pay the <full balance owed / $XXX as settlement for this debt> in exchange for your agreement to the above terms within fifteen calendar days of receipt of payment. Understand that this is not a promise to pay. This is a restricted settlement offer and you must agree to the terms above in order for payment to be made.

Should you accept, please send a signed agreement with the aforementioned terms from an authorized representative on your company letterhead. Once I receive this, I will pay <$XXX> via <cashier’s check/money order/wire transfer>.

If I do not receive your response to this offer within fifteen calendar days, I will rescind this offer and it will no longer be valid.

I look forward to resolving this matter quickly.

Sincerely,

<Your Name>

<Your Address>

<Your City, State, Zip Code>

Sample letter to remove collection from credit report

Now that you have a template to write your own pay for delete letter, let’s take a look at a sample letter to make sure you’re fully set up for success.

What happens if a pay for delete letter is rejected

You should always be prepared for the event that the collection agency rejects (or ignores) your pay for delete letter. Not all agencies will see the value in agreeing to your terms or the practice of pay for delete letters as a whole.

It’s also worth noting that any acceptance of your offer must be made and returned to you in writing. In the event of a solely verbal agreement, you won’t have the ability to prove that an agreement was reached if the collector doesn’t follow through and remove the information from your credit report.

If your letter was rejected, there are still some other routes you can take to repair your credit.

Other ways to potentially have negative credit report entries removed:

  • Send a goodwill letter
  • Negotiate a settlement
  • Wait out the credit reporting time limit
  • Hire a professional

Common questions surrounding pay for delete letters

Pay for delete is a unique credit repair strategy, so it’s understandable if you have some lingering questions about it. Below, we address some of the most common ones.

Does pay for delete increase credit score?

Pay for delete can potentially increase your credit score if your negotiation is successful, but its impact largely depends on your overall credit profile. If you have several accounts in collections, your score is less likely to increase much from a single negative item being removed.

If you have a single account in collections, on the other hand, your chances of improving your score via pay for delete improve.

Which collection agency owns my debt?

If you’re unsure which collection agency is holding your debt, there are a few strategies you can use to try to learn more. Consider the following:

  • Check if you have any missed calls or voicemails from collection agencies
  • Ask your original creditor for help with tracking it down
  • Get your credit report and check the details surrounding your debt

Can I send a pay for delete letter to the original creditor instead of the collection agency?

You should send a pay for delete letter to the original creditor as long as they haven’t sold your debt to a collection agency. If the original creditor has already sold your debt to a collection agency, you can contact them to see if they are willing to reclaim your debt from collections; however, there’s no guarantee that they will agree to this proposal.

Is a pay for delete letter legal?

Sending a pay for delete letter is a legal way to negotiate to have negative items removed from your credit report. However, it’s important to note that creditors aren’t legally required to respond or accept the request. 

Oftentimes, creditors have contracts with the credit bureaus that prohibit them from removing accurate information from credit reports. If that’s the case, the creditor may not be able to enter into a pay for delete agreement with you.

Are pay for delete letters still common?

In recent years, pay for delete letters have become less common. This is partially because the latest credit scoring models, FICO® 9 and 10 and VantageScore® 3.0, do not take paid collection accounts into consideration when determining your credit score. There’s a chance these letters, even if approved, won’t impact your score at all.

Credit reporting agencies also discourage pay for delete efforts, strongly recommending that only inaccurate information be removed from reports. For these reasons, pay for delete is becoming a much less common practice.

That being said, if you’re in a more stable financial position now and expect collections activity to harm your credit, a pay for delete letter may be a good option for you to try DIY credit repair.

If you’re still not sure how to proceed or your pay for delete letter was rejected, consider equipping yourself with some personal finance tools and working with a credit consultant for a free credit report consultation.

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

Reviewed By

Nature Lewis

Associate Attorney

Before joining Lexington Law as an Associate Attorney, Nature Lewis managed a successful practice representing tenants in Maricopa County.

Through her representation of tenants, Nature gained experience in Federal law, Family law, Probate, Consumer protection and Civil law. She received numerous accolades for her dedication to Tenant Protection in Arizona, including, John P. Frank Advocate for Justice Award in 2016, Top 50 Pro Bono Attorney of 2015, New Tenant Attorney of the Year in 2015 and Maricopa County Attorney of the Month in March 2015. Nature continued her dedication to pro bono work while volunteering at Community Legal Services’ Volunteer Lawyer’s Program and assisting victims of Domestic Violence at the local shelter. Nature is passionate about providing free knowledge to the underserved community and continues to hold free seminars about tenant rights and plans to incorporate consumer rights in her free seminars. Nature is a wife and mother of 5 children. She and her husband have been married for 24 years and enjoy traveling internationally, watching movies and promoting their indie published comic books!

Source: lexingtonlaw.com

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Apache is functioning normally

December 6, 2023 by Brett Tams

It’s almost that time, when everyone resolves to do better and achieve more in the coming year. And a new survey suggests that some people may be fueling their 2024 resolutions with the financial regrets of 2023.

About two-thirds (67%) of Americans have financial regrets for 2023, according to a NerdWallet survey conducted online by The Harris Poll on Oct. 10-12. And three-fourths (75%) of that group say those regrets will lead to new resolutions in 2024.

Every year we face obstacles to our money goals. We may start out with plans to save more and spend less, but life happens. This year began with expenses taking bigger bites out of paychecks, in the form of high inflation. And as the year progressed, increasingly high interest rates added costs to credit card balances and loans, making it more expensive to borrow. Macroeconomic factors like these can be enough to derail financial goals alone, but if they’re paired with job loss, unexpected expenses or other household circumstances, they can push goals further and further out of reach.

If you have financial regrets, you’re in good company. And if your hope is to turn them into successes in 2024, plenty of other Americans have the same plan. Here’s how some of those regrets may have come about and what to expect in the year ahead.

Money regret No. 1: Not saving more

Nearly one-fourth (23%) of Americans regret not saving enough for their financial goals in 2023, according to the NerdWallet survey. And about one in five (21%) regret not saving for emergencies.

Government relief payments paired with constrained spending during COVID shutdowns to bring the personal saving rate to all-time highs in 2020 and 2021. In 2023, that rate, which measures the percentage of disposable income that can be saved, on average, settled below historic averages, making it more difficult to save for big purchases or unexpected emergencies.

In 2024: The personal saving rate, as a national average, is likely to stay on the low side. However, with inflation continuing to come down, you may find it easier to set aside funds in 2024 than you did in 2023. If you don’t have an emergency fund, start there — having a cushion set aside for unexpected expenses can insulate many of your other financial objectives. Then, set measurable and specific benchmarks — such as setting aside a certain portion of every paycheck — to get you toward your longer-term savings goals.

Money regret No. 2: Overspending

More than one in five (22%) Americans regret overspending on entertainment in 2023; 11% regret overspending on travel and 11% regret overspending on a big event (such as a wedding or party), according to the survey.

Consumer spending in 2023 has been surprisingly resilient in the face of inflation and high interest rates. This consumer resilience has been credited with keeping the economy strong when many expected a recession. But there is also evidence that this spending in the face of adversity has been achieved by busting household budgets.

In 2024: Overspending is a risk every year — it’s hard not to splurge on things like entertainment, travel and parties (we all enjoy a good time). The first step to reining in these urges, however, is setting a clear budget. Whether it’s a weekly entertainment budget or a wedding budget, setting a clear expectation for yourself beforehand can help ensure you’re not left with remorse when the dust settles.

Money regret No. 3: Mismanaging credit card debt

Equal shares of Americans (16%) regret not reducing/or paying off their credit card debt and taking on too much credit card debt in 2023, according to the survey.

Credit card debt levels fell during 2020 and early 2021, as people had excess money thanks to relief payments and student loan forbearance, for example, and were generally spending less due to COVID lockdowns. But since then, debt levels have been surpassing pre-pandemic normal. If you used your cards less in 2021 and even paid off some debt, this return to “normal” can feel especially bad.

In 2024: When your finances are in good shape, using credit cards as a tool — to earn points and cash back, for instance — can help you reach money goals more quickly. However, when you’re in debt or have to turn to a credit card to cover an emergency expense, the interest can pile up quickly and make it difficult to dig yourself out. Interest rates will likely remain high throughout 2024, so getting those balances under control is even more important. Make a concrete debt payoff plan, and if you’re struggling to make payments, consider debt relief options such as consolidation and debt management.

Lest 2023 sound like nothing more than money woes: More than three in five (62%) Americans say they achieved financial goals they set out to reach in 2023. Financial headwinds are always present in one form or another. Preparing for them and learning from mistakes may set you up for a greater chance of success in the near future.

METHODOLOGY

This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from Oct. 10-12, 2023, among 2,096 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.7 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].

Disclaimer

NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results.

Source: nerdwallet.com

Posted in: Moving Guide, Personal Finance Tagged: 2, 2020, 2021, 2023, About, actual, All, all-time highs, average, big, Borrow, Budget, budgets, cash, cash back, chance, clear, company, confidence, confidence level, costs, covid, Credit, credit card, Credit Card Debt, credit cards, data, Debt, debt management, debt payoff, Economy, Emergency, Emergency Fund, Entertainment, event, expense, expenses, expensive, finances, financial, Financial Goals, Financial Wize, FinancialWize, first, fitness, Forbearance, Free, fund, funds, future, goals, good, government, historic, historical, household, in, Income, Inflation, interest, interest rates, job, Life, loan, Loan Forbearance, Loans, low, Make, making, management, Mistakes, money, money goals, More, nerdwallet, new, or, Other, pandemic, parties, party, paycheck, payments, Personal, personal finance, plan, plans, points, present, rate, Rates, reach, Recession, resolutions, return, risk, save, Saving, saving rate, savings, Savings Goals, shares, Side, Spending, Spending Less, splurge, states, student, student loan, survey, The Economy, time, Travel, under, united, united states, Wedding, wedding budget, will

Apache is functioning normally

December 5, 2023 by Brett Tams

Well, another year is nearly in the books, which means it’s time to look ahead at what 2024 might have in store.

As is customary, I take a look at mortgage rate predictions from a variety of economists and offer up my own take for the upcoming year.

I also look back at the predictions for the current year to see how everyone did (hint: not well!).

The big story in 2023 was out of control inflation. The story going forward might be cooling inflation.

Though there’s also the risk it resurges, at which point mortgage interest rates could rise again.

Mortgage Rates Are Expected to Go Down in 2024

First let’s talk about the general outlook. Most expect mortgage rates to go down in 2024, which was actually the call in 2023 as well.

But guess what? Everyone was wrong. Expectations that the 30-year fixed would fall back into the 5% range were way off.

Instead, interest rates on the popular loan program surpassed the 8% mark before finally letting up over the past month.

So while many economists are optimistic for the coming year, take note that they felt the same way a year ago. And got it wrong.

But things aren’t exactly the same. The Fed increased its fed funds rate 11 times, which many believe has worked to corral inflation.

And this could lead to weak economic output and rising unemployment, which could result in Fed rate cuts as early as March 2024.

This doesn’t necessarily mean mortgage rates would follow the Fed lower, but it could signal that the worst is behind us.

As such, mortgage rates may have peaked, and it’s possible they could continue to drift lower and find a comfortable medium between their old record lows and recent near-21st century highs.

MBA 2024 Mortgage Rate Predictions

First quarter 2024: 7.1%
Second quarter 2024: 6.6%
Third quarter 2024: 6.3%
Fourth quarter 2024: 6.1%

First up is the Mortgage Bankers Association (MBA), which is often fairly bullish about mortgage rates improving.

They are, after all, fans of mortgages being originated, and lower rates equate to higher funding volume.

Last year, they predicted that the 30-year fixed would ease throughout 2023 and average 5.2% in the fourth quarter.

That didn’t work out as planned, with the 30-year fixed closer to 7% today. And it was actually above 8% just a month ago.

Still, they are predicting lower mortgage rates in 2024, just as they did last year. The difference this time around might the inflation story.

It has cooled a lot since then, which could lead to Fed rate cuts and an easing in the 10-year treasury yield, which correlates well with mortgage rates.

Ultimately, they may have expected inflation to improve faster than it did, which is why they got rates wrong in 2023.

Now that inflation actually is significantly lower, their predictions could come to fruition. Also note that their latest prediction is a full percentage point higher than it was a year ago.

They only expect the 30-year fixed to fall to 6.1% by the end of 2024 versus 5.2% when they made the same forecast a year ago.

Fannie Mae 2024 Mortgage Rate Predictions

First quarter 2024: 7.6%
Second quarter 2024: 7.4%
Third quarter 2024: 7.2%
Fourth quarter 2024: 7.1%

Next up is Fannie Mae, which purchases and securitizes conforming mortgage loans.

They are a lot less bullish than the MBA, as they expect the 30-year fixed to remain in the 7% range for all of 2024.

It’s possible they’ll update their forecast in light of recent improvements in mortgage rates.

But as it stands, they don’t expect the 30-year fixed to drop below 7.10%, which is basically where it’s at now.

So we can take this to mean they expect mortgage rates to remain relatively flat at these new, higher levels for much of 2024.

I will update their numbers if they release a new forecast before the end of 2023.

Freddie Mac 2024 Mortgage Rate Predictions

First quarter 2024: n/a
Second quarter 2024: n/a
Third quarter 2024: n/a
Fourth quarter 2024: n/a

While Freddie Mac stopped releasing a monthly outlook for mortgage rates (for reasons unknown), they still do a monthly commentary.

And from that we can glean some ideas about where they think mortgage rates will go in 2024.

Their latest outlook notes that they expect “recent volatility in Treasury yields to abate which will allow modest reductions in mortgage rates.”

How modest? Well, they said mortgage rates will probably not fall below 6% “in the short run” thanks to the higher for longer narrative.

But given the recent improvement in rates (and the 10-year bond yield), it’s possible rates could get back in the low-6s in 2024.

And if the borrower pays discount points, a rate in the 5% range is also possible, assuming those mortgage rate spreads tighten due to decreased volatility.

A year ago, they expected the 30-year fixed to fall to 6.1% by the fourth quarter of 2023. So perhaps they’re being a bit more conservative.

However, they expect home prices to rise a further 2.6% in 2024 thanks to mortgage rate lock-in effect and favorable demographics, including an elevated share of first-time home buyers.

NAR 2024 Mortgage Rate Outlook

First quarter 2024: 7.5%
Second quarter 2024: 6.9%
Third quarter 2024: 6.5%
Fourth quarter 2024: 6.3%

The National Association of Realtors (NAR) releases a monthly U.S. Economic Outlook that contains their mortgage rate predictions for the year ahead.

I’m going off their October version until I can get a more updated one, so I expect their numbers to get even more optimistic given the recent improvement in mortgage rates.

There’s even a chance they’ll throw out a number in the high-5% range for the fourth quarter of 2024.

NAR chief economist Lawrence Yun also expects the 30-year fixed to average between 6-7% by the spring home buying season.

He added that “we’ve already reached the peak in terms of interest rates.” So his expectation is it’ll get better from here. The question is how much better.

Zillow’s 2024 Mortgage Rate Prediction

Next we have Zillow. Sometimes they make mortgage rate predictions, sometimes they don’t.

Given how wrong everyone has been lately, they said, “Predicting how mortgage rates will move is a nearly impossible task…”

However, they do expect home prices to “hold steady in 2024,” declining by a negligible 0.2%.

They also believe mortgage rates may “hold fairly steady” too in coming months if recent inflation readings are any indication.

Together, the cost of buying a home could level off next year, or even drop if mortgage rates do too. But they aren’t throwing out specific numbers.

Interestingly, Zillow expects more mortgage rate locked-in homeowners to “end their holdout for lower rates and go ahead with those moves.”

So even if rates don’t get much better, the holdouts might say enough is enough and list their properties.

If rates do keep dropping, this argument becomes even more compelling. So much-needed supply could be freed up in the process.

Redfin 2024 Mortgage Rate Predictions

Meanwhile, Redfin believes mortgage rates will steadily decline throughout 2024, but remain above 6%.

Specifically, they expect the average 30-year mortgage rate to linger around 7% in the first quarter, then inch down as the year goes on.

By the end of 2024, the real estate brokerage thinks mortgage rates will fall to about 6.6% thanks in part to 2-3 rate cuts from the Fed.

Offsetting these cuts is the expectation that we will avoid a recession in 2024. So a lack of serious economic pain means more modest declines in rates as opposed to sizable ones.

Still, they see home buyers finally catching a break because home prices are also predicted to be flat.

This means monthly payments will fall further from their recent all-time highs, which we can all agree is a good thing.

Realtor 2024 Mortgage Rate Forecast

Meanwhile, the economists at Realtor.com are predicting a minimal decline in mortgage rates, but still an improvement.

They expect the 30-year fixed to average 6.8% in 2024 after averaging 6.9% in 2023. So just a 10-basis point decrease.

However, they do expect rates to finish off 2024 at 6.5%, which is a little more optimistic.

It’s also markedly better than the 2023 year-end expectation of 7.4%. And would essentially take us back to the end of 2022, when the 30-year fixed averaged 6.42%.

In other words, we might be able to forget 2023 ever happened. But we still won’t be able to revisit early 2022 anytime soon.

At that time, the 30-year fixed was a mindboggling 3.22%.

The Truth’s 2024 Mortgage Rate Predictions

First quarter 2024: 6.875%
Second quarter 2024: 6.625%
Third quarter 2024: 6.25%
Fourth quarter 2024: 5.875%

Like everyone else, I was wrong about mortgage rates in 2023. I thought they’d slowly move lower throughout the year before ending the year around 5%.

Instead, we are closer to 7% today, which is a pretty big miss. That being said, what I assumed would play out last year (lower inflation), seems to be happening now.

There are also several rate cuts now expected in 2024, with the CME FedWatch Tool favoring a 4% – 4.25% range for the federal funds rate by December 2024.

The 10-year bond yield is also expected to moderate further, and could be back to the mid-3% range.

If we assume that mortgage rate spreads also tighten from their current levels near 300 bps to something more reasonable, such as 200 bps, we could see noticeably lower mortgage rates in 2024.

Taken together, a spread of 200 bps and a 3.5% 10-year yield could signal a return to mid-5% mortgage rates.

That might sound a little too good to be true, so I’ll err on the side of caution and go for an average rate as low as 5.875% to end the year.

Remember, there are still a lot of unknowns and potential curveballs ahead. We’ve got multiple geopolitical events that are still unfolding.

And potentially the most contentious U.S. presidential election in history. So as always, mortgage rates will ebb and flow, and opportunities will present themselves.

There will be good months and bad months, but I expect mortgage rates to continue trending lower as 2024 unfolds.

(photo: Marco Verch, CC)

Source: thetruthaboutmortgage.com

Posted in: Home Buying, Mortgage Rates, Mortgage Tips, Renting Tagged: 10-year yield, 2, 2022, 2023, 3%, 30-year, 30-year mortgage, 30-year mortgage rate, 4%, About, All, all-time highs, average, before, big, bond, Books, brokerage, buyers, Buying, Buying a Home, chance, Commentary, cooling, cost, Demographics, discount points, economists, estate, events, expectations, Fall, Fannie Mae, fed, fed rate, Federal funds rate, Financial Wize, FinancialWize, first, fixed, Forecast, Freddie Mac, funding, funds, General, good, history, hold, home, home buyers, home buying, home prices, homeowners, Housing market, ideas, improvement, improvements, in, Inflation, interest, interest rates, Latest, Lawrence Yun, list, loan, Loans, low, LOWER, Make, MBA, minimal, More, Mortgage, Mortgage Bankers Association, mortgage interest, Mortgage Interest Rates, mortgage loans, MORTGAGE RATE, Mortgage Rates, Mortgage Tips, Mortgages, Move, NAR, National Association of Realtors, new, offer, or, Other, payments, play, Point, points, Popular, potential, predictions, present, pretty, Prices, program, rate, RATE LOCK, rate lock-in, Rates, read, Real Estate, real estate brokerage, realtor, Realtor.com, Realtors, Recession, Redfin, reductions, return, rise, rising, risk, second, short, Side, spreads, Spring, story, the fed, time, Treasury, Unemployment, update, US, versus, volatility, volume, will, work, work out, wrong, Zillow

Apache is functioning normally

December 5, 2023 by Brett Tams

Are you looking for the best game apps to win money? Yes, you can actually play games to win real money on your phone and make extra money. There are lots of apps for both iPhones and Androids that let you do this. If you already spend a lot of time playing games on your…

Are you looking for the best game apps to win money?

Yes, you can actually play games to win real money on your phone and make extra money.

There are lots of apps for both iPhones and Androids that let you do this. If you already spend a lot of time playing games on your phone, then you might as well get paid for it, right?

In this article, I’m going to talk about some really good game apps that let you win actual money prizes. These games include ones like those you might find in a casino as well as easier puzzle games and even arcade style games. So, there’s something for everyone. When you play and collect points or coins, you can get your winnings through easy ways like PayPal and Apple Pay.

Key Takeaways

  • Playing game apps can be fun and you can even win real money.
  • The best game apps that pay real money include KashKick, Swagbucks, and InboxDollars.
  • Popular payout methods include PayPal, Apple Pay, and gift cards.
  • Game apps pay real money rewards because they make their money from ads and in-app purchases. They give you a portion of their earnings to encourage you to continue playing their games.

Do any game apps actually pay real money?

Yes, some game apps do pay real money or in gift cards. They most likely will never be a main source of income or a full-time job, though – simply just a way to make some extra money.

Why do game apps pay you real money?

Game apps that give out real money usually make money through ads, things you buy in the app, and paid gaming competitions/tournaments. They share a little of what they earn with you to get you to keep playing their games.

Sometimes, game apps have partnered with different game developers and companies so that people will try new games and earn rewards for them. Since the game app is being paid and they want more people to play the game, they then will share some of their earnings with you to get you to keep playing the games in their app.

It’s a win-win! You get to enjoy yourself and make some extra money, and businesses get to showcase their ads and games to a wider audience.

Recommended reading: 30 Best Money Making Apps

Best Game Apps To Win Real Money

Here’s a quick list of the top game apps that pay real cash:

  1. KashKick
  2. Swagbucks
  3. InboxDollars

Below, I dive further into the best game apps to win real money.

1. KashKick

I think the best game app to win real money is KashKick.

KashKick allows you to earn $100 or more by playing popular mobile games like Yahtzee and Monopoly GO. You can also make money by trying new products and services, watching videos, answering surveys, and reading emails.

There are many different games you can play on KashKick such as:

  • Coin Master
  • Monopoly GO
  • Yahtzee
  • Family Island
  • Bingo Blitz
  • Scrabble Go
  • Solitaire Smash
  • MGM Slots

For example, here’s how you can make money playing Monopoly Go on KashKick: “Install (make sure to accept tracking requirements on your device!) and reach Board 27 within 8 days from the install date to get $30, reach Board 42 within 12 days for $40 more and reach Board 71 within 24 days for another $50 – for a total of $120!”

Please click here to sign up for KashKick for free.

Recommended reading: KashKick Review

2. Swagbucks

Another favorite game app to win real cash is Swagbucks.

Swagbucks is a very popular rewards site where you can earn money by playing games, taking surveys, watching videos, and shopping online, and you can cash out what you earn with PayPal cash or gift cards.

Swagbucks is a company that I started using years ago, and it has helped me easily earn some extra cash on the side, all from home or while traveling. I have personally earned over 100 free gift cards through Swagbucks, so I know that they are a legit game app that pays you real money!

To play games on Swagbucks, you simply head to the “Play” tab when you are logged in. When I logged in, I had over 20 available games that I could get paid to play, with a total rewards value of $2,264.02 or 226,402 SB points.

Some of the games you can play on Swagbucks include:

  • Match Masters
  • Farmville
  • Lucky Buddies
  • Dragonscapes Adventure
  • Wizard of Oz Slots
  • Solitaire Smash
  • POP! Slots
  • Dice Buddies
  • Swagbucks Live

If you join Swagbucks through my referral link, you can receive a $10 bonus.

Recommended reading: Swagbucks Review

3. InboxDollars

InboxDollars is another good rewards site that pays you cash for taking surveys, shopping online, playing games, and reading certain emails. In fact, InboxDollars has been around since 2000, and they have paid over $80 million in cash and gift cards.

They pay via PayPal cash as well as gift cards to places such as Amazon, Apple, Target, Dunkin’ Donuts, Lowe’s, Barnes & Noble, and Gap.

To play games on InboxDollars, simply head to the tab that says “Games.”

When I log in, I have 8 games available for me to currently play, such as Mahjong Dimensions, Solitaire, Word Wipe, Monkey Bubble Shooter, Pyramid Solitaire, Candy Jam, Pet Hop, and Giant Hamster Run.

Sign up for InboxDollars here and get a free $5 bonus.

4. PrizeRebel

PrizeRebel is a popular rewards site where you can play games (as well as take surveys that pay instantly and more). You can redeem your rewards points for PayPal cash, gift cards, and even cryptocurrency.

Some of the games on PrizeRebel include Bingo Blitz, Solitaire Grand Harvest, Age of Apes, Kingdom Guard, Yahtzee, Woody Sort, Viking Rise, and more.

You can sign up for PrizeRebel here.

5. MyPoints

MyPoints is a rewards platform where you can earn money by playing games, watching videos, and participating in surveys. Your earnings can be redeemed as gift cards or PayPal cash.

To get paid to play games on MyPoints, you log in and head to the “Games” tab, and there you will see games such as Bejeweled, Bingo, Catch 21, Puzzle Match, Wheel of Fortune, and more.

Sign up for MyPoints by clicking here.

6. Blackout Bingo

Blackout Bingo is a highly-rated bingo game app that allows you to win real cash. In fact, there are nearly 90,000 reviews on the App Store alone, with an average of 4.5 out of a 5 star rating.

Over 5,000,000 people have played this bingo app where you can win rewards and cash prizes too.

You play against other players in real time and can cash out your winnings via PayPal.

7. Bingo Cash

Bingo Cash is a fun game of Bingo that you can play for free, and you can play against other people no matter where you are in the world. You get to “travel” to different places in the game and practice your Bingo skills. Plus, you can win really big prizes!

Bingo Cash is a free game that you can play on the popular gaming platform called Papaya.

It’s easy and safe to get your prize money through PayPal. You can choose from lots of cool prizes like Airpods Pro, iPads, and coffee makers!

Note: If you live in AZ, AR, CT, DE, LA, MT, SC, SD, or TN, you can’t join prize tournaments. But don’t worry, you can still play for fun with the game app’s virtual currency.

8. Solitaire Cube

If you like to play solitaire, then this is the game app for you as you can get rewarded for playing just like how you normally do.

Solitaire Cube is a card game app that allows you to test your card skills and win real money. The game is available for free on iOS and Android and is perfect for solitaire fans who want to put their skills to the test.

With this game app, you play against other real players all from your phone. Your rewards can be cashed out for PayPal cash or Apple Pay.

9. Mistplay

Mistplay is one of the most popular game apps to win money, with over 400,000 reviews and an average rating of over 4.1 stars out of 5. There have been over 10,000,000 downloads of this app too!

Mistplay is an app where you can earn money by playing and testing new games on your smartphone. It’s a great option if you enjoy discovering new games and want to make some extra cash.

Mistplay has given away $60,000,000 in rewards for playing games since the site was created too.

You can redeem your points for PayPal cash or gift cards to Visa, Amazon, and more.

Note: This app is currently only available for Android phones on Google Play.

10. Fanduel Fantasy Sports

If you like football, soccer, hockey, baseball, basketball, golf, and other sports, then this is the app for you.

Fanduel Fantasy Sports is a sports betting site where you create your fantasy sports lineup and compete with other players for cash prizes.

With this app, you have a chance to win real money. You simply create your fantasy team, keep an eye on your scores, and compete every day for prizes in lots of different fantasy contests.

Note: Fanduel Fantasy Sports is only open to U.S. residents and users must be 18 or older (19 or older in AL, 21 or older in AZ, IA, LA, MA). Users physically located in DE, ID, HI, MT, NV, and WA are not eligible to participate in paid contests.

11. Cash’em All

If you’re a casual gamer and want to play games in your spare time for a chance to win real cash, give Cash’em All a try.

This app doesn’t bother you with in-app purchases or ad walls. Instead, you earn points, or “coins” as the app calls them, for each second you play their games.

There are many different games that you can play on Cash’em All, such as Candy Crush, Match Masters, Bingo Blitz, Coin Master, and more.

You earn points which then can be exchanged into PayPal cash or gift cards to places such as Netflix, Amazon, and more.

Note: This app is currently only available for Android phones on Google Play.

12. 21 Blitz

21 Blitz is a blackjack and solitaire hybrid card game where you can win real money, and it’s a fun choice for people who like card games. Also, it’s great for practicing blackjack, exercising your brain, or simply having fun.

You can play against real people for free. When you feel ready, you can switch to cash games and have a chance to win real money.

This game is a part of the Skillz platform, which is a popular game app platform where people can win real money through their collection of different games that they have (they have some of the best games to win real money).

13. Pool Payday

Pool Payday is the top pool game app where you can play 1-on-1 pool games and win real cash prizes.

This is a free game app where you can win real money taking pool shots and winning points.

The app is available on iOS devices through the App Store, and you can withdraw your winnings via PayPal cash or Apple Pay.

Note: You can join cash tournaments in most places around the world. However, if you live in AZ, AR, CT, DE, IL, IN, LA, ME, MT, SC, SD, or TN, cash tournaments are not available. But, you can still play for free if you live in these states.

14. Bubble Cash

If you like bubble shooter games, then this is the best bubble shooter game app.

Bubble Cash lets you play against other players in real-time bubble shooter games, with the chance to win cash prizes. Bubble Cash is a bubble shooter game where the more bubbles you pop, the higher your chances of winning.

I know people who spend hours playing these types of games, so this can be a fun way to get rewarded to play a favorite game.

Here’s how to play:

  • Match three bubbles of the same color to pop and clear the board.
  • Tap the screen to aim the laser, then lift your finger to shoot the ball.

You can download the app on iOS and Android devices.

15. Solitaire Cash

Solitaire Cash is a card game app where you can play solitaire games for real money.

Once you download the game for free, you can play regular or cash tournaments and have a chance to win real money.

You’ll play against players of similar skill levels, and everyone gets the same deck. So, the game is fair and based on your skills.

The app is available on iOS and Android devices.

16. Rewarded Play

Rewarded Play is an app that pays you for playing games on your phone. If you want to play a variety of games, then this is the app for you.

You can play games such as Scrabble, Yahtzee, Bingo Blitz, Wheel of Fortune, and more.

The way the app works is that they introduce you to new games. Then, the more time you spend playing their games, the more points you can earn. Your points can be redeemed for gift cards to places such as Amazon, Walmart, Target, Nordstrom, and more.

17. Dominoes Gold

Dominoes Gold is one of the best dominoes game apps where you can put your domino skills to the test and win cash prizes.

You play by challenging your opponent in the same games against the computer and see who can win with more points.

The app is available for iOS devices, and you can cash out your winnings via PayPal.

18. AppStation

AppStation is an app that pays you for playing new games on your phone. You can earn coins by trying different games and then redeem them for PayPal cash or gift cards. Games include Fishdom and Match Royal.

Note: Only available for Android users.

19. Jackpocket

Jackpocket is an app that lets you play lottery games and potentially win real cash prizes. You can buy lottery tickets through the app and even be notified if you win. This can be an easy way to play your local lottery games right from your phone.

You can have Powerball, Mega Millions, Cash4Life, and other lottery tickets from NY, NJ, and NH sent directly to your phone.

Just pick your game and numbers (or use Quick Pick), and the app will safely get your ticket from a licensed lottery seller.

If you win less than $600, the money goes directly to your Jackpocket account. For big wins, they make sure to safely deliver you your ticket so that you can redeem your winnings yourself.

20. Cookie Cash

Cookie Cash is a Match 3 puzzle skill game from Papaya Gaming that is for the iPad and iPhone.

With Cookie Cash, you can play as much as you want for free. Then, once you’re ready, you can compete against other players for prizes and real money, such as PayPal cash and Apple Pay.

Note: Cash tournaments are not available in the states of AZ, IA, LA, and SC.

21. Money Well

Money Well has many arcade-style games that you can play to win real money, and this is a very popular game app with over 10,000,000 downloads and an average rating of 4.3 stars out of 5 stars (with over 528,000 reviews!).

You can simply play the games, collect coins, and cash out your earnings for PayPal cash and gift cards to places such as Grubhub and Apple.

22. Bingo Clash

Bingo Clash is a bingo game app from AviaGames with high ratings, and they give real money payouts through PayPal, Apple Pay, Visa, Mastercard, American Express, and Venmo. You can play this game for free and enjoy the competitive nature of real-time bingo.

You’ll play against real players who have similar skills and compete in classic, fun, and fair cash games based on your skills. You can also take part in tournaments with different match styles, and the higher you place, the bigger your prize.

Note: Cash games are not available in the following states of AZ, AR, CT, DE, LA, MT, SC, SD, TN, and VT. But, if you live in one of these states you can still play the game for free.

23. Spades Blitz

Spades Blitz is a card game app where you can win cash earnings by playing and mastering the popular card game of spades.

With Spades Blitz, you compete against real people from around the world in tournaments, where you pay an entry fee to take part.

You can get paid via PayPal cash or check.

Note: The app is available on the App Store and the Galaxy Store. Currently, Spades Blitz is only available for iPhones and Samsung devices.

More Ways To Get Paid To Play Games

There are more ways to get paid to play, other than the game apps listed above. If you like to play games and want to make money, some other ideas to look into include:

Become a Twitch streamer

Twitch is a site where you can make money playing video games, talking, and more.

If you like playing video games, live streaming yourself playing can be a way to make money doing what you love. As you gain followers and subscribers on Twitch, you can earn income through ads shown on your stream, donations from viewers, and monthly subscription fees.

Most Twitch streamers don’t earn a full-time income, but there are some who make well over $100,000 annually. In fact, a few even bring in millions of dollars each year.

To see success on Twitch, I recommend finding ways to keep your audience interested, playing the games that you actually enjoy, and sticking to a regular streaming schedule (because your followers will want to see you consistently!).

You can learn more at How Much Do Twitch Streamers Make?

Play in game tournaments

Playing in gaming tournaments can be a way to make money if you’re really good at a certain game.

Many popular competitive games like Fortnite, League of Legends, and Call of Duty host large-scale tournaments with large prize money.

You’ll need to practice a lot, though, as there are many good players in all games – and you want to be the best in order to actually make some money.

Start a gaming blog

If you love games, then you may be interested in starting a gaming blog.

Starting a gaming blog gives you a platform to share what you know about games, your thoughts on games, and your experiences with other gamers. You can make money from your blog through ways such as affiliate marketing, sponsored content, display ads, or even by selling merchandise.

You can learn more about how to start a blog here.

Become a game creator

If you love gaming and have an interest in design or programming, think about making your own games. Independent game creators can build games for different platforms like PCs, consoles, or even phones.

While a college degree isn’t always required, it can be very helpful. You may want to get a degree in fields like game design, computer science, or graphic design, and also look for courses specific to game design.

First, try finding internships, co-op programs, or beginner-level jobs at companies that make video games. This will give you important experience in the field and let you learn from people who have been doing this for a while.

Sell game merchandise

If there’s a popular game out there, then you may be able to sell merchandise to earn some extra cash.

Some examples of merchandise include T-shirts, posters, or accessories based on popular games.

Of course, you will want to make sure that you can legally do this, as you don’t want to get in trouble for pretending to be a certain game app or anything like that.

My Tips For Playing Game Apps That Pay Real Money

Below are my tips for getting paid to play game apps from your phone.

Be smart about how much time you are spending.

When playing game apps, it can be really, really easy to let time get away from you and play too much (especially if you are a winner!). After all, you are probably having fun and it’s something that you can easily do from your phone.

But, you don’t want to forget about everything else in your life.

You don’t want your game app playing to turn into an obsession (such as with arcade games or trivia games) or into a gambling addiction (as many of the above are similar to casino games).

So, I recommend being careful with any games that require you to pay money (such as to join tournaments) and know your limit. You may want to set a timer for playing and a budget.

You may have to pay taxes.

If you’re winning money from these game apps, then you will need to pay taxes. This means that you will want to save money from any of your winnings for taxes so that you are not surprised at the end of the year with a huge tax bill.

Read real reviews and experience with game apps that pay money.

When you’re trying out different game apps where you win real money, it’s important to read real reviews and experiences. This helps you make a smart choice as reading honest thoughts from other players can give you a clear picture of the app’s pros and cons, how they pay out, how easy they are to play, and if people actually enjoy them.

Some things in game app reviews to look out for include:

  • If the customer service support is helpful (do they actually answer emails if you have an issue?)
  • If payments are actually being made and if they are on time (if many people are leaving reviews saying that they are not getting their payments, then you may want to do more research before you start playing games on that specific app)
  • If the game is fun (of course, this is just an opinion and everyone is different, though)

Keep in mind, while winning real money in gaming apps can be exciting, it’s important to remember that it’s not a full-time job with a full-time income. Always focus on having fun first.

Frequently Asked Questions About Playing Game Apps To Win Money

Below are answers to common questions about playing game apps to win real money.

Which games are best for earning real money? What are some popular real cash games?

There are many game apps that can help you earn real money and some of the top game apps are KashKick, Bingo Cash, Blackout Bingo, Solitaire Cash, and Mistplay. You may want to test a few and see which one is a game that you actually like.

How can I find legit cash games?

To find real cash games that you can trust, you should look for ones that are popular and have good reviews by looking at the Apple Store or Google Play Store to read user ratings and reviews. This can give you a good sense of the game’s legitimacy and whether or not they actually pay out the rewards you earn.

Do any game apps offer instant payouts?

Even if some game apps claim to have instant payouts, the actual time it takes can still vary. Usually, it might range from a few minutes to a couple of days for your rewards to show up in your account.

Are there money-making game apps for iPhones?

Yes, there are several money-making game apps available for iPhone users. Some of the popular ones include Solitaire Cube, 21 Blitz, and Blackout Bingo.

Can I earn money directly to my bank account with game apps?

Certain game apps let you transfer your earnings directly to your bank through direct deposits, while others pay through PayPal, Apple Pay, Amazon gift cards, or other cash rewards.

Game Apps To Win Money – Summary

I hope you enjoyed this article on how to play game apps to win money. As you can see, you have many options!

To sum it up, there are game apps that give real money rewards, and they can be a fun way to spend your time. But remember, they shouldn’t be your main source of income. Think of them as a fun way to make a bit of extra money.

Do you play any game apps to win money? Which one is your favorite?

Recommended reading:

Source: makingsenseofcents.com

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Apache is functioning normally

December 5, 2023 by Brett Tams

All investments carry some risk, but the difference between speculating and investing is the amount of risk involved. Speculative investments are typically short-term, and far riskier than traditional investing products and strategies, and may involve the risk of total loss.

Investing typically indicates a more long-term approach to making a profit, with an eye toward managing risk.

Defining Investing and Speculation

Speculating often describes scenarios when there’s a high chance the investment will deliver losses, but also when the investment could result in a high profit. High-risk, high-reward investments include commodities, crypto, derivatives, futures, and more.

In contrast, investing generally refers to transactions where an individual has researched an asset, and puts money into it with the hope that prices will rise over time. There are no guarantees, of course, and all types of investing include some form of risk.

Examples of Investments and Speculative Investments

Assets that are thought of as more traditional types of investments include publicly traded stocks, mutual funds, exchange-traded funds (ETFs), bonds (e.g. U.S. Treasury bonds, municipal bonds, high-grade corporate bonds), and real estate.

Even some so-called alternative investments would be considered more long-term and less speculative: e.g., jewelry, art, collectibles.

Assets that are almost always considered speculative are junk bonds, options, futures, cryptocurrency, forex and foreign currencies, and investments in startup companies.

Sometimes it isn’t as simple as saying that all investments in the stock market or in exchange-traded funds or in mutual funds hold the same amount of risk, or are “definitely” classified as investments. Even within certain asset classes, there can be large variations across the speculation spectrum.
💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.

The Traditional Approach to Investing

When it comes to the more traditional approach to investing, individuals typically buy and hold assets in their investment portfolios or retirement accounts, with the aim of seeing reasonable, long-term gains.

Traditional forms of investing focus on the performance of the underlying business or organization, not on the day-to-day or hour-by-hour price movements of an asset.

For this reason, more traditional investors tend to rely on various forms of analysis (e.g. fundamental analysis of stocks) and analytical tools and metrics to gauge the health of a company, asset, or market sector.

Speculation: A High-Risk, High-Reward Game

The difference between speculating and investing can be nuanced and a matter of opinion. (After all, some investors view the stock market as a form of gambling.) But when traders are speculating, they are typically seeking super-high gains in a relatively short period of time: e.g., hours, days, or weeks.

In the case of commodities or futures trading, the time horizon might be longer, but the aim of making a big profit fairly quickly is at the heart of most speculation.

Speculators may also use leverage, a.k.a. margin trading, to boost their buying power and amplify gains where possible (although using leverage can also lead to steep losses).

The Psychology of Investing vs. Speculating

The psychology of a typical investor is quite different from that of a speculative investor, and again revolves around the higher tolerance for risk in pursuit of a potentially bigger reward in a very short time frame.

Long-Term Investing Speculating
Taking calculated or minimal risks Willing to take on high-risk endeavors
Pursuit of reasonable gains Pursuit of abnormally high returns
Willing to invest for the long term Willing to invest only for the short term
Uses a mix of traditional investments and strategies (e.g. stocks, bonds, funds) Uses single strategies and alternative investments
Infrequent use of leverage/margin Frequent use of leverage/margin

Historical Perspectives on Investing and Speculation

The history of investing and speculating has long been entwined. In the earliest days of trading thousands of years ago, most markets were focused on the exchange of tangible commodities like livestock, grain, etc. Wealthy investors might put their money into global voyages or even wars. Thus many early investors could be described as speculators.

But investing in forms of debt as a way to make money was also common, eventually leading to the bond market as we know it today.

The concept of investing in companies and focusing on longer-term gains took hold gradually. As markets became more sophisticated over the centuries, and a wider range of technologies, strategies, and financial products came into use, the division between investing and speculating became more distinct.

Recommended: What Causes a Stock Market Bubble?

Speculation History: Notable Market Bubbles and Crashes

The history of investing is rife with market bubbles, manias, and crashes. While the speculative market around tulip bulbs in 17th-century Holland is well known, as is the Great Financial Crisis here in the U.S. in 2008-09, there have been many similar financial events throughout the world — most of them driven by speculation.

What marks a bubble is a well-established series of stages driven by investor emotions like exuberance (i.e., greed) followed by panic and loss. That’s because many investors tend to be irrational, especially when in pursuit of a quick profit that seems like “a sure thing.”

Some classic examples of financial bubbles that changed the course of history:

•   The South Sea Bubble (U.K., 1711 to 1720) — The South Sea company was created in 1711 to help reduce national war debt. The company stock peaked in 1720 and then crashed, taking with it the fortunes of many.

•   The Roaring Twenties (U.S., 1924 to 1929) — The 1920s saw a rapid expansion of the U.S. economy, thanks to both corporations’ and consumers’ growing use of credit. Stock market speculation reached a peak in 1929, followed by the infamous crash, and the Great Depression.

•   Japanese Bubble Economy (1984 to 1989) — The Japanese economy experienced a historic two-decade period of growth beginning in the 1960s, that was further fueled by financial deregulation and widespread speculation that artificially inflated the worth of many corporations and land values. By late 1989, as the government raised interest rates, the economy fell into a prolonged slowdown that took years to recover from.

•   Dot-Com Bubble (1995 to 2002) — Sparked by rapid internet adoption, the dot-com boom saw the rapid growth of tech companies in the late 1990s, when the Nasdaq rose 800%. But by October 2002 it had fallen 78% from that high mark.

Key Differences Between Investing and Speculating

What can be confusing for some investors is that there is an overlap between investing in the traditional sense, and speculative investing in higher risk instruments.

And some types of investing fall into the gray area between the two. For example, options trading, commodities trading, or buying IPO stock are considered high-risk endeavors that should be reserved for more experienced investors. What makes these types of investments more speculative, again, is the shorter time frame and the overall risk level.

Time Horizon: Long-term Goals vs. Quick Gains

As noted above, investors typically take a longer view and invest for a longer time frame; speculators seek quick-turn profits within a shorter period.

That’s because more traditional investors are inclined to seek profits over time, based on the quality of their investments. This strategy at its core is a way of managing risk in order to maximize potential gains.

Speculators are more aggressive: They’re geared toward quick profits, using a single strategy or asset to deliver an outsized gain — with a willingness to accept a much higher risk factor, and the potential for steep losses.

Fundamental Analysis vs. Market Timing

As a result of these two different mindsets, investors and speculators utilize different means of achieving their ends.

Investors focused on more traditional strategies might use tools like fundamental analysis to gauge the worthiness of an investment.

Speculators don’t necessarily base their choices on the quality of a certain asset. They’re more interested in the technical analysis of securities that will help them predict and, ideally, profit from short-term price movements.
While buy-and-hold investors focus on time in the market, speculators are looking to time the market.
💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.

Real-World Implications of Investment vs. Speculation

To better understand the respective value and impact of investing vs. speculating, it helps to consider the real-world implications of each strategy.

The Impact of Speculation on Markets

It’s important to remember that speculation occurs in many if not all market sectors. So speculation isn’t bad, nor does it always add to volatility — although in certain circumstances it can.

For example, some point to IPO shares as an example of how speculative investors, who are looking for quick profits, may help fuel the volatility of IPO stock.

Speculation does add liquidity to the markets, though, which facilitates trading. And speculative investors often inject cash into companies that need it, which provides a vital function in the economy.

Strategic Approaches to Investment

Whether an investor chooses a more traditional route or a more speculative one, or a combination of these strategies, comes down to that person’s skill, goals, and ability to tolerate risk.

Diversification and Asset Allocation

For more traditional, longer-term investors, there are two main tools in their toolkit that help manage risk over time.

•   Diversification is the practice of investing in more than one asset class, and also diversifying within that asset class. Studies have shown that by diversifying the assets in your portfolio, you may offset a certain amount of investment risk and thereby improve returns.

•   Asset allocation is the practice of balancing a portfolio between more aggressive and more conservative holdings, also with the aim of growth while managing risk.

When Does Speculation Make Sense?

Speculation makes sense for a certain type of investor, with a certain level of experience and risk profile. It’s not so much that speculative investing always makes sense in Cases A, B, or C. It’s more about an investor mastering certain speculative strategies to the degree that they feel comfortable with the level of risk they’re taking on.

The Takeaway

One way to differentiate between investment and speculation is through the lens of probability. If an asset is purchased that carries a reasonable probability of profit over time, it’s an investment. If an asset carries a higher likelihood of significant fluctuation and volatility, it is speculation.

A long-term commitment to a broad stock market investment, like an equity-based index fund, is generally considered an investment. Historical data shows us that the likelihood of seeing gains over long periods, like 20 years or more, is high.

Compare that with a trader who purchases a single stock with the expectation that the price will surge that very day (or even that year!) — which is far more difficult to predict and has a much lower probability of success.

Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Invest with as little as $5 with a SoFi Active Investing account.



SoFi Invest®
SoFi Invest refers to the two investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA(www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of SoFi Digital Assets, LLC, please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Bank, N.A.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.

New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.

*Borrow at 10%. Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see SoFi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOIN1023133

Source: sofi.com

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Apache is functioning normally

December 5, 2023 by Brett Tams

It’s a common problem.

You’ve got some cash in a savings account earning a paltry 0.01%. You plan to spend it to buy a home or a car or something else in a few years. How can you invest the money until then to earn some extra interest?

It’s called short-term investing, and it’s tricky. Put your money in the stock market, and it could be gone when you need it. Put it in a traditional savings account, and it earns practically nothing. So, what should you do?

Recently, a listener to our podcast, Michael, emailed me with just this dilemma:

Let’s answer Michael’s question.

What is a Short Term Investment?

What exactly is a short-term investment? Well, there is no official definition. There is no governing body that defines what short-term or long-term investing is. It’s arbitrary.

For me, short-term investing is investing money you’re going to need to spend in fewer than five years.

Why five years? Because most of the time, the stock market doesn’t lose money over a 5-year period. It can, of course. Go back to the 1930s and 40s and you’ll find 5-year periods where the market was crushed, as this Bankrate slideshow demonstrates… 1932 was the worst. The 5-year period ending that year saw a drop of 60.9%.

But that’s rare.

When we have a pretty significant stock market correction or a bear market, it usually takes us at least five years to pull out of it. Of course, that’s not a guarantee. We could hit a bear market, and it could take us 10 years to pull out of it.

Either way, five years is where I draw the line. You may want to draw your own line more conservatively… or even less conservatively, for that matter. What I hope to do today is give you some information that will enable you to make a sound decision.

So, let’s begin.

The 10 Best Short Term Investments

1. Lending Club

Lending Club offers a great option with the potential for better returns. This P2P lending platform makes it easy to invest in loans to individuals and companies.

It’s also perfect for short-term lending. Loans on the platform are for either three or five years. If you know you won’t need the money until then, Lending Club is a reasonable alternative.

I’ve invested in Lending Club loans since the platform was first launched. My current annualized return, including loans that defaulted, is over 8%.

With higher returns, however, comes higher risks. Loans do go into collections and eventually default from time to time. Over the years, I’ve invested in 17 loans that defaulted.

The key is diversity. You can invest in a loan with as little as $25. By diversifying across many loans, you minimize the effect a single default will have on your portfolio.

LendingClub Pros and Cons

  • Very easy to invest in a diversified loan portfolio

  • Potential for high returns on a short-term basis


  • Not FDIC-insured

  • Cannot liquidate the loans early

  • Potential for losses

Expected Annual Return: 5.00 to 7.00+%

Read more: Lending Club Review

Lending Club Disclaimer:

2. Certificate of Deposit

The second option for short-term money is a certificate of deposit. CDs give us a lot more options than a savings account. The term of a CD can range from a few months to more than five years, and the longer the term, the higher the rates.

These higher rates, however, come with added risk. Here’s why.

A CD can be cashed in before it matures. For example, you could invest in a 5-year CD, but decide to withdraw your money after the first year. If this happens, however, most CDs charge a penalty. The amount of the penalty varies by bank and CD product.

As a result, it’s best to keep money in a CD until it matures. For this reason, picking the length of the CD is a critical decision.

So, you end up having this delicate dance- you want a long CD term so that you can make the most interest. But you don’t want to pay a penalty if you take the money out early.

CD Pros and Cons

  • FDIC insured

  • CD terms ranging from 6 months to 5 years or longer

  • Higher interest rates on longer term CDs

  • Can create a CD ladder


  • Still relatively low interest rates

  • Penalty for early withdrawal

Expected Annual Return: 1.00 to 2.50%

Here is a list of banks that offer high-yield CD options:

3. Investing With Betterment

Betterment presents an interesting opportunity for short-term investors. It’s not an investment. Rather, it’s an online company that makes investing in stock and bond ETFs easy.

The service can be used for all types of investing, including long-term retirement investing. To use Betterment in the shorter term, you must get the asset allocation right.

Learn More: The Perfect Asset Allocation Plan

Betterment lets investors decide how much to put in stock ETFs and how much to put in bond ETFs. For short-term investing, a 50/50 allocation protects against the downside while allowing for potentially higher returns.

Here’s the 50/50 asset allocation with Betterment:

The 50% in stocks gives us a chance to earn greater returns. The 50% in bonds helps protect short-term investors from a market crash.

There are no guarantees, of course. But looking at a 50/50 portfolio during the 2008-2009 market crash gives us some comfort.

Using PortfolioAnalyzer, I assumed we invested $10,000 at the start of 2008. Assuming we needed the money three years later, how would our 50/50 portfolio perform over a 3-year period. Remember that in 2008, a total U.S. stock index fund lost more than 37%.

Here are the backtested results of our 50/50 portfolio:

The portfolio still lost money in 2008, although far less than the 37% that the market dropped. And what was our final portfolio value at the end of 2010? It grew to $11,014, for an annual return of 3.27%.

While 3.27% is not a great return, remember that 2008 was a very bad year for stocks. Shift our time period one year forward (2009-2011) and our annual return jumps nearly 11%.

As a result, a 50/50 portfolio with Betterment is a reasonable choice for those needing the money in three to five years.

Betterment Pros and Cons

  • Very easy to implement

  • Money can be withdrawn at any time

  • Potential for much higher returns

  • Fees are very low


  • Not FDIC-insured

  • Potential for capital losses

Expected Annual Return: 0 to 10+%

Learn More: Betterment Review

4. Online Savings Account

Traditional banks pay as little as 0.01% on a savings account. That’s as close to zero percent as you can get.

One option for short-term savings that pay more is to go with an online bank. While the rates are still nothing to brag about, the top online savings accounts today pay about 0.50%. Chime® is now paying an APY of 2.00%, which is right in line with the best online savings accounts available. Chime offers a terrific online savings and checking account geared toward savers. You can see the top current rates here.

Online Saving Account Pros and Cons

  • FDIC insured

  • Funds can be withdrawn at any time

  • Rates better than a brick and mortar bank

  • No monthly fees


  • Interest rates are still low

  • Inflation exceeds the rates

Expected Annual Return: 1.30%

Here are some high-yield savings account options:

5. Municipal Bonds

There is a significant downside to bonds: taxes. Interest earned on bonds is taxed, as are any capital gains.

One option to reduce the tax burden is municipal bonds (known as “munis”). These bonds are typically free of federal income tax and may be free from state income tax, too. Munis are an excellent option for those in the higher federal tax brackets.

I’ve invested in Vanguard’s Intermediate-Term Tax-Exempt Fund (VWIUX) in the past. SEC yields on these funds are lower than similar taxable bonds. The comparison must be made on an after-tax basis. This fund currently sports an SEC yield of almost 2%.

Municipal Bonds Pros and Cons

  • Potential for higher returns

  • Tax advantages

  • Easy access to funds without penalty


  • Potential for losses

  • Not ideal for those in lower tax brackets

Expected Annual Return: 2 to 5% (after tax)

6. Short Term Bonds

Our third option is short or intermediate-term bond funds. More specifically, we want to look at low-cost index mutual funds and ETFs. Both Vanguard and Fidelity offer several options.

Here, you have some important choices to make. Do you want a fund that invests just in U.S. government bonds or one that also invests in corporate bonds? Do you want a short-term bond fund or an intermediate-term bond fund?

Like everything else in life, these choices involve trade-offs.

U.S. Government bonds are more secure than corporate bonds, but they pay less. Short-term bonds are less sensitive to interest rate fluctuations than intermediate-term bonds, but they pay less. Today, short-term government bonds do not pay much more than an online savings account. For example, the SEC yield on Vanguard’s short-term Treasury fund is just 1.25%.

For my money, I want to do better than that in a bond fund. While intermediate-term funds can lose money in a given year, they are reasonably stable. Vanguard’s Intermediate-Term Bond Index Fund (VBILX), for instance, costs just 0.07% and sports an SEC yield of over 2.50%.

A review of the performance of VBILX shows that it lost money in only one of the past ten years:

Short Term Bonds Pros and Cons

  • While not FDIC-insured, still reasonably secure

  • Intermediate-term bonds can yield significantly higher rates than a savings account

  • Money can be withdrawn from the fund when needed


  • Not FDIC-insured

  • Can lose money

  • Rates are historically low

Expected Annual Return: 1.00 to 6.00%

7. Bulletshares

There is a downside to traditional bond funds. They can experience capital losses as funds sell some bonds to buy new ones. If interest rates have risen, the fund incurs a loss on the sale of bonds.

Enter Guggenheim’s Bulletshares. These ETFs combine the potential returns of a bond fund with the fixed maturity of a CD. I first learned about Bulletshares from Jeanne J. Fisher, MBA, CFP, CPFA of ARGI Financial Group.

Traditional bond funds continue in perpetuity. The fund management regularly sells bonds as maturities age and replaces them with new bonds with longer maturities. In contrast, Bulletshares have a defined term of one to ten years.

At the end of the term, assets are returned to existing shareholders. And unlike CDs, a shareholder can sell his or her ETF shares at any time without penalty.

Related: What Are ETFs (and Are They a Strong Investment Option)?

Bulletshares come in two flavors: (1) corporate bonds and (2) high-yield corporate bonds. The first invests in investment-grade corporate bonds. The second buys bonds issued by corporations with a credit rating below investment grade. It involves more risk but offers higher returns.

As an example, the Guggenheim BulletShares 2020 High Yield Corporate Bond ETF has a current yield to maturity of over 5%.

Bulletshares Pro and Cons

  • Potential for higher returns

  • ETF shares can be sold at any time

  • Fixed maturity dates


  • Not FDIC-insured

  • Funds can lose money

Expected Annual Return: 1.50 to 5.50%

8. Wealthfront

Like Betterment, Wealthfront is a robo-advisor that makes investing easy. I list it here in addition to Betterment for one reason: It’s free.

Well, it’s free for your first $5,000 if you sign up using a DoughRoller link. After that, the cost is similar to Betterment. For both, you pay the very low fees charged by the ETFs. You also pay a Betterment or Wealthfront fee of about 25 basis points.

With Wealthfront, however, the 25 basis point fee is waived for the first $5,000.

Wealthfront Pros and Cons

  • Very easy to implement

  • Money can be withdrawn at any time

  • Potential for much higher returns

  • Fees are very low


  • Not FDIC-insured

  • Potential for capital losses

Expected Annual Return: 0 to 10%

Read more: Wealthfront Review

9. Worthy Bonds

Worthy Bonds offers you an opportunity to earn 5% on your money, with an investment of as little as $10. It’s a peer-to-peer investment site, where you can invest money in bonds issued by small businesses. The bonds aren’t guaranteed by a government agency, like FDIC, but many of them are collateralized by business inventory.

When you use the Worthy Bonds mobile app, you can automatically add funds to your investment account. Similar to many micro-savings apps, Worthy Bonds uses spending round-ups to move small amounts of money into your investment account as you spend. For example, if you pay $4.10 for a cup of coffee, the app will charge your account an even $5. $4.10 will go to pay the merchant, and $0.90 will go into your investment account. Once you accumulate an even $10 in round-ups, the funds can be used to purchase a bond.

Worthy Bonds Pros and Cons

  • Invest with as little as $10

  • An investment of $1,000 can be diversified across 100 different bonds

  • Interest is credited weekly

  • There are no fees charged on your account

  • Earn interest at more than twice the rate of inflation


  • Pays simple interest only, and does not compound for higher returns

  • The maximum investment is not more than 10% of your net worth or annual income, or $100,000

Expected Annual Return: 5%

Read more: Worthy Bonds Review – A Worthy Investment for Everyone

10. SmartyPig

The final investment option on our list offers an interesting twist to online savings accounts. SmartyPig combines a high yield with savings goals. As of August 2018, SmartyPig currently offers a high yield savings APY of 1.55%.

Now, the savings goals. With SmartyPig, you set specific savings goals. You can set multiple goals, or just one. You then add to the account until you reach your goal. In this way, SmartyPig is ideal for short-term savers.

Related: 6 Keys to Setting Financial Priorities

SmartyPig Pros and Cons

  • FDIC-insured

  • Potential for returns higher than most online banks

  • Makes saving for a specific goal very easy


  • Low rate compared to other options

Expected Annual Return: 1.00+% (depending on account balance)

Is the Stock Market a Good Place for Short-Term Investing?

We could stop here. After all, the above short-term investing options should cover most situations. Yet many will ask one remaining question: Why not just put all our money in the stock market?

It’s an understandable question. Particularly when the market is rising, missing out on money can be painful. It’s funny, though. Nobody asks me this question in a bear market.

And that’s the point. With the stock market, you can lose money over a short period of time.

Thinking Long Term: Sweat In Up Markets So You Don’t Bleed In Down Markets

Let’s return to 2007 and run a test. We’ll use the Vanguard S&P 500 index fund as a proxy for the market. And we’ll assume we have $10,000 at the start of 2007, that we’ll need to use in three to five years.

How would a $10,000 investment have performed? At the end of three years, we would have $8,395, for an annual return of -5.66%. At the end of five years, we would have $9,837, for an annual return of -0.33%

Yes, 2008 was a bad year. But again, that’s the point. Investing 100% of short-term money in the stock market presents a significant risk of loss of capital. Fortunately, we have better ways to invest for the short term.

Public is an app that helps you invest in individual stocks, even if you don’t have much money to commit. What makes it good for short-term investments is its lack of fees. There is no commission to buy or sell a stock so you can move your money in and out of the market at will without worrying about minimum investment terms. Read our Public app review

How to Manage Your Short Term Investments

Track and Analyze your Short-Term Investments for Free: Managing investments can be a hassle. You may have multiple IRAs, multiple 401ks, as well as taxable accounts. And then there are bank accounts. The easiest way to track and analyze all your investments, regardless of where they are located, is with Empower’s free financial dashboard.

Empower enables you to connect all of your 401(k), 403(b), IRAs, and other investment accounts in one place. Once connected, you can see the performance of all of your investments and evaluate your asset allocation.

With Empower’s Retirement Fee Analyzer you can see just how much your 401k and other investments are costing you. I was shocked to learn that the fees in my 401(k) could cost me over $200,000!

Empower also offers a free Retirement Planner. This tool will show you if you are on track to retire on your terms.

If all of this is overwhelming and not something you want to handle on your own, you may want to think about working with a financial advisor or investment advisor. We suggest visiting Paladin Registry, where you can fill out a form online to tell them what you are looking for. It’s free to use and Paladin Registry will email you a list of three highly-rated professionals that match your needs. From there you can interview each one and choose the best fit.

Happy investing!

  • Rob Berger is the founder of Dough Roller and the Dough Roller Money Podcast. A former securities law attorney and Forbes deputy editor, Rob is the author of the book Retire Before Mom and Dad. He educates independent investors on his YouTube channel and at RobBerger.com.

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Source: doughroller.net

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Apache is functioning normally

December 3, 2023 by Brett Tams

If you count the Friday after Thanksgiving as a business day, mortgage rates had fallen for 6 straight days as of yesterday afternoon.  Moreover, they’d reached the lowest levels in 3 months and had put an impressive amount of distance between themselves and the highs seen just over a month ago.

Ironically, yesterday’s analysis expressed some measure of bewilderment at just how much better rates were versus the previous day.  Now today, we see that all good things–especially those that look a little TOO good–come to an end.

This isn’t necessarily a bad thing.  When rate rallies continue unabated, the certainty and swiftness of the eventual rebound only increase.  By undergoing a moderate rebound in a measured, logical way, rates have made it easier for themselves to remain in the current range without excess volatility.

That doesn’t mean volatility is out of the question, but it’s more likely to be seen in response to the big ticket economic data that typically inspires bigger swings in rates.  We won’t get most of that big ticket data until next week, but there is a chance that tomorrow morning’s ISM Manufacturing index will spark a reaction if it’s much higher or lower than expected.

As is always the case, there’s no way to know if the data will be good or bad for rates ahead of time.  All we know is that the rate market is incredibly interested in the upcoming data as an indication of whether rates have officially turned a corner in the big picture.  While that’s exciting (or scary), keep in mind that it would take several months of cohesive data to do the trick.

Source: mortgagenewsdaily.com

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Apache is functioning normally

December 3, 2023 by Brett Tams

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

Bankruptcy is a legal process that individuals and businesses can undertake to eliminate their debts under the oversight of a bankruptcy court.

Bankruptcy is a legal process that individuals and businesses can undertake to eliminate all or part of their debts under the oversight of a bankruptcy court. For individuals who have amassed debt beyond what they can reasonably pay, bankruptcy is a potential path toward a clean slate.

There are different types of bankruptcy, important terms to know and significant consequences to watch out for. If you’re wondering, “What is bankruptcy?” or you’re considering it for yourself, read on to get an overview, or you can use the links below to jump to a specific question.

How does bankruptcy work?

Bankruptcy is a complicated legal process that involves several steps:

  • A debtor files a legal petition for bankruptcy in federal bankruptcy court.
  • The court appoints a trustee to oversee the case.
  • The trustee examines the debtor’s assets and liabilities and determines if they have any assets which can be administered by the trustee.

While it’s technically possible to file for bankruptcy on your own, working with a qualified attorney is recommended, as the amount of legal knowledge required is beyond what the average person possesses.

During the creditor’s meeting the trustee will examine the debtor and the case and file a report. What happens next depends on whether you filed for Chapter 7 or Chapter 13. In both cases, your debt can be discharged, but the process for achieving that end varies.

What are the different types of bankruptcy?

For individuals, the two most common forms of bankruptcy are Chapter 7 and Chapter 13. Businesses and local governments can also file for bankruptcy, but we won’t cover those types of bankruptcy in detail in this article.

Chapter 7

Chapter 7 bankruptcy is the most straightforward approach to filing for bankruptcy. Chapter 7 bankruptcy, also called liquidation bankruptcy or fresh start bankruptcy, sometimes involves the sale of assets to pay off debt.  In most cases a debtor’s assets are exempt and no assets need be sold. This is best for debtors who have no way to repay their debt.

When a debtor files for Chapter 7 bankruptcy, the following process takes place:

  1. The debtor provides the trustee with tax returns and other financial documents relevant to the case, plus a list of all their assets.
  2. The trustee evaluates the assets to determine which assets, if any, are nonexempt.
  3. The trustee sells all nonexempt assets to pay off creditors. Debtors can keep exempt property, which varies by state law. For example, in New York, a debtor can keep their car if they own it outright and it is worth $4,000 or less.
  4. The debtor meets with their trustee and creditors at a Meeting of Creditors, also called a 341 Hearing, to verify the information they’ve filed in their bankruptcy petition is accurate.
  5. The trustee might pay some of the debt using the proceeds from liquidating the debtor’s nonexempt assets.  However, this is rare.
  6. Any remaining debt is discharged. However, Chapter 7 does not eliminate all debt—debtors are still responsible for paying court-order alimony and child support, student loans and certain taxes.

The Chapter 7 process typically takes about four to five months from filing to final discharge of debt.

While Chapter 7 bankruptcy has powerful effects on debt, it also has consequences. The negative item from bankruptcy can remain on a credit report for 10 years.

A debtor can only file for this kind of bankruptcy once every eight years. For that reason, a condition of bankruptcy is always credit counseling and personal finance courses, which are aimed at supporting people to prevent them from ending up in the same financial situation again.

Chapter 13

Chapter 13 bankruptcy still leads to debt elimination, but it involves a debt payment plan. In Chapter 13 bankruptcy, debtors keep their property and pay debts over an agreed-upon period, usually three to five years. To qualify, a debtor must prove they have regular income. During the payment period, creditors are legally prohibited from collection efforts against the debtor. This type of bankruptcy is best for debtors who have steady income but still can’t afford to pay their debts in full.

If a debtor files a petition for Chapter 13 bankruptcy, the following will occur:

  1. The court reviews the repayment plan. Typically, repayment plans last three to five years and may repay some or all of the debt owed. The debtor prepares and files the plan and creditors have a chance to comment on it, the trustee comments on it and the court makes a final determination as to whether to approve the plan. 
  2. A court-appointed trustee collects your payments. Over the course of repayment, a trustee will collect funds and disburse them to creditors. 
  3. After repayment, the bankruptcy is discharged. After the specified repayment period, the debtor becomes eligible for a discharge. If the debtor has complied with the trustee’s requests, has paid all required payments and takes a financial management course, then the remaining balance on debt (if any) is forgiven. 

The entire Chapter 13 bankruptcy process can take up to five years from the filing date to the end of repayment.

While Chapter 13 bankruptcy also has detrimental consequences for credit and general financial health, it tends to be less detrimental than Chapter 7 bankruptcy. 

Additionally, Chapter 13 bankruptcy remains on a credit report for just seven years, and the process can be repeated more often if necessary. Having debt discharged or reorganized can be a vital financial tool.

Other types of bankruptcy

While individuals file Chapter 7 and Chapter 13 depending on their circumstances, there are other types of bankruptcy that farmers and fishermen, businesses and city governments can use in difficult financial situations.

Here’s a quick overview of other forms of bankruptcy:

  • Chapter 9 focuses on local governments and school districts that need to restructure debt in the wake of financial troubles. Similarly to Chapter 13, Chapter 9 utilizes a debt repayment plan.
  • Chapter 11 enables businesses to create a debt repayment plan in conjunction with a revised business plan that is aimed at increasing profitability. 
  • Chapter 12 is a narrowly focused form of bankruptcy that is exclusive to family farmers and fishers hoping to avoid liquidation.
  • Chapter 15 is an international provision that helps mediate bankruptcy proceedings that involve the United States and at least one other country. 

While all of these forms of bankruptcy are useful, only Chapter 7, Chapter 11 and Chapter 13 typically directly affect individuals in financial distress.

What does it mean when bankruptcy is discharged?

A bankruptcy discharge means a debtor is no longer personally responsible for certain debts. Regardless of the remaining balance of a previous debt, once a bankruptcy discharge is entered, creditors can no longer collect on the debt.

  • With Chapter 7 bankruptcy, discharge usually occurs after the creditor’s meeting. There is typically a 60-day window after the meeting of creditors for creditors to file complaints, after which the discharge may take effect.
  • With Chapter 13 bankruptcy, discharge typically takes place after the repayment plan is completed.

However, not all debts are eligible for bankruptcy discharge. Depending on the type of bankruptcy filed, the following debts may not be discharged:

  • Alimony
  • Child support
  • Tax liens
  • Some federal, state and local taxes (depending on the age of the debt)
  • Student Loans.
  • Debts for willful and malicious injury to a person or property
  • Debts for death or personal injury caused by the debtor driving while under the influence of alcohol or drugs
  • Any debt not listed in the bankruptcy filing

In general, a discharged bankruptcy is permanent, meaning creditors no longer have any claim to previous debt. In some cases, however, a bankruptcy discharge could be revoked if the party proves to the court that the initial petition was made fraudulently. The time period for taking an action in this way is limited to one year after discharge.

What is the benefit of filing for bankruptcy?

There are advantages to filing for bankruptcy for individuals who can no longer deal with overwhelming debt.

Some of the most important benefits of bankruptcy include:

  • The elimination of many types of debt
  • A fresh start with finances
  • An end to calls and letters from collection agencies
  • Relief from wage garnishment, foreclosure or repossession
  • Protection of certain kinds of property 

Bankruptcy courts exist for a reason, and bankruptcy serves an important financial function for many individuals whose debts significantly exceed their ability to repay. For those who have no other good options, bankruptcy provides important benefits and the chance for relief and a second chance at financial security.

How does bankruptcy affect your credit score?

Bankruptcy has a serious detrimental effect on your credit, though it is possible to rebuild credit after bankruptcy.

The negative item from bankruptcy will remain on your report for seven to ten years, depending on the type of bankruptcy. Any time you apply for credit, that negative item will be visible to creditors, who will factor it in when deciding whether to approve your application.

For those looking to rebuild credit after bankruptcy, a secured credit card is often the best starting point. A secured credit card is backed by a deposit, so creditors are usually willing to provide it even to those who have a bankruptcy on their record. Responsibly using the card and making payments on time can slowly lead to improved credit in the future.

Additionally, many people who have gone through bankruptcy choose to work with a credit repair company, which may be able to support the process of rebuilding credit.

What is bankruptcy fraud?

Bankruptcy fraud occurs when an individual withholds information about debts or assets from the federal bankruptcy court. In both Chapter 7 and Chapter 13 bankruptcy, information about your finances determines how your debt is handled, so providing false or misleading information could lead to a revocation of your bankruptcy discharge or criminal charges.

Here are some examples of bankruptcy fraud:

  • Hiding assets. During bankruptcy, you are forced to disclose all of your assets, which may be sold in order to pay creditors. Withholding information about your assets to try to protect them is not allowed.
  • Running up debt prior to discharge. If you use credit to purchase property or items with no intention of repayment simply because you believe the debt will be discharged, you are likely committing bankruptcy fraud.
  • Falsifying documents. Providing false information about property transfers, debts, assets or any other necessary information is forbidden during bankruptcy proceedings.

The consequences of bankruptcy fraud can be serious, especially if a party proves to the court that your efforts were intended to deceive creditors and prevent them from receiving their just payment. You could be denied a bankruptcy discharge. Fines and even prison time are possible outcomes for bankruptcy fraud, so it’s important to be truthful throughout the entire process.

Bankruptcy terms you should know

A bankruptcy score is used by financial institutions to predict the likelihood that an individual will file for bankruptcy within a certain period of time. Similar to credit scores, bankruptcy scores are calculated using a wide variety of factors. Unlike credit scores, however, bankruptcy scores are not available to consumers, so you can’t know your own score or make efforts to improve it directly.

Still, regardless of your bankruptcy score, the same financial habits that support a strong credit score are also likely to help prevent you from needing to file for bankruptcy:

  • Create and maintain a budget. Spending within your means and prioritizing essential expenses is an excellent way to maintain financial health.
  • Make full and on-time debt payments. Make timely payments for loans and credit cards, and avoid keeping a credit card balance from month to month.
  • Avoid unnecessary lines of credit. While credit is a valuable tool, it’s important to avoid opening too many lines of credit and letting debt become overwhelming. 

Bankruptcy scores are important tools for financial institutions making lending decisions, but they are largely unimportant to consumers. As long as you are making wise financial decisions over time, creditors will continue to recognize your efforts and your risk of bankruptcy will remain low.

Bankruptcy terms you should know

As you navigate bankruptcy, you’ll come across a variety of terms that may be unfamiliar. Understanding all of these terms makes navigating the process of bankruptcy much easier, and fortunately, none of them are difficult to understand.

Here’s a list of terms that you should know if you’re trying to understand bankruptcy better.

  • Assets and liabilities: An asset is anything you own, whereas a liability is anything you owe.
  • Chapter: A chapter is simply the specific type of bankruptcy being declared under Title 11 of the United States Federal Bankruptcy Code.
  • Discharge: A discharge means the associated dischargeable debts no longer need to be paid. 
  • Lien: A lien is a claim against a piece of property from a creditor who is owed a debt, such as a mortgage lender or a car creditor. 
  • Liquidation: Liquidation is the process of selling assets, usually to pay debts—for instance after filing Chapter 7.
  • Means test: The means test is used to determine who is eligible to file for Chapter 7 by accounting for income and debt. 
  • Repayment plan: An approved repayment plan is a court-authorized plan to give creditors back some or all of what they are owed. At the completion of a repayment plan under Chapter 13, remaining dischargeable debt is typically forgiven.
  • Secured and unsecured debt: A secured debt has some sort of valuable property as collateral—for instance, an auto loan is secured by the car itself. An unsecured debt has no associated collateral—for instance, a credit card is unsecured.
  • Trustee: Appointed by the court, the trustee is responsible for reviewing the debtor’s financial situation and documentation relation thereto, conducting the meeting of creditors and collecting and liquidating non-exempt assets or ensuring payments are made according to the repayment plan.

Armed with knowledge of these terms, you’ll have a much greater understanding of bankruptcy moving forward.

What does it cost to file for bankruptcy?

The cost to file bankruptcy can be broken down into two parts: court fees and attorney fees. According to the U.S. Court, you’ll pay a $78 administrative fee and a $15 trustee fee to file for Chapter 7 or Chapter 13 bankruptcy, plus any additional relevant fees. The total filing cost is generally under $500.

If a debtor cannot pay the fees associated with filing for bankruptcy, the court may break the fee payment into up to four installments or waive them altogether. Debtors who wish to have the fee waived must submit Form 103B.  Bankruptcy filing fees are not typically waived, even for the most destitute.

That said, most people will also require an attorney for bankruptcy proceedings, and fees can vary significantly. According to All Law, fees for Chapter 7 typically range from $1,000 to $3,500, whereas fees for Chapter 13 are a bit higher, ranging from $2,500 to $6,000. Depending on your location, fees may be lower or higher, so you’ll want to consult a local lawyer to determine a more accurate cost before proceeding.

Should you declare bankruptcy?

Deciding whether or not to declare bankruptcy can be difficult, so make sure you think about all of the alternatives first. People often consider bankruptcy due to unexpected or overwhelming debt—like a medical bill that has ballooned through interest or a handful of loans that have become unmanageable.

There may be ways to deal with these debts before resorting to bankruptcy. For example:

  • Negotiate with your creditors. Ultimately, creditors are looking for you to repay your debt. By contacting your creditors, you may be able to work out a favorable payment plan or have some of your debt erased in order to make it more manageable. 
  • Get a debt consolidation loan. A debt consolidation loan enables you to simplify and often reduce your debt payments by lowering your interest rate or extending your payment timeline. 
  • Work with a credit counselor. A credit counselor may be able to help you evaluate your entire financial picture and create an action plan to make debt more approachable.

Still, even after these alternatives, there are some people for whom bankruptcy is the best available option. If you have no means to pay back your debts and you’ve exhausted other options, contact a bankruptcy attorney to determine your best next steps.

Overall, bankruptcy exists to protect individuals from long-term financial ruin. Though the credit consequences of bankruptcy are long-lasting, the benefits of freedom from debt are absolutely essential in some cases.

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

Reviewed By

Vince R. Mayr

Supervising Attorney of Bankruptcies

Vince has considerable expertise in the field of bankruptcy law.

He has represented clients in more than 3,000 bankruptcy matters under chapters 7, 11, 12, and 13 of the U.S. Bankruptcy Code. Vince earned his Bachelor of Science Degree in Government from the University of Maryland. His Masters of Public Administration degree was earned from Golden Gate University School of Public Administration. His Juris Doctor was earned at Golden Gate University School of Law, San Francisco, California. Vince is licensed to practice law in Arizona, Nevada, and Colorado. He is located in the Phoenix office.

Source: lexingtonlaw.com

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Apache is functioning normally

December 3, 2023 by Brett Tams

Avid TikTok users may be familiar with the #TikTokMadeMeBuyIt trend. They also may be happy to know that it’s now possible to buy things directly from TikTok thanks to TikTok Shop. Entrepreneurs and content creators may be especially drawn to the shop, as it’s a way to sell products to the millions of TikTok users out there.

Whether you’re a content creator, entrepreneur or simply curious, here’s what you need to know about how to make money using TikTok Shop.

What is TikTok Shop?

In September 2023, TikTok Shop launched in the U.S., creating a new way for content creators, brands and entrepreneurs to make money. Individuals and brands can earn dollars by showcasing and selling products directly on the platform.

Here are some of the notable TikTok Shop features that sellers can use to support their money-making endeavor:

  • In-feed video and Live shopping: This feature makes it possible for people to buy products that are tagged in the TikTok videos and Lives in their feed. 

  • Product showcase: Sellers can curate collections of products they’d like to sell on TikTok and post those collections to their profile page. Users can then browse the products, read reviews and buy directly from a business’s profile. 

  • Shop tab: TikTok users can find promotions, discover new products and make purchases within the Shop tab in the app. 

  • Affiliate program: The new affiliate program connects content creators and sellers. Sellers can seek out content creators to promote their products in videos and Lives in exchange for a commission.

  • Shop ads: These can be likened to Instagram, Facebook or other social media ads. They give sellers a chance to advertise to TikTok users. 

  • Fulfilled by TikTok: To take the weight off of sellers, with this feature, TikTok will store, pick, pack, and ship items to customers. 

How do you make money on TikTok Shop?

People can make money on TikTok Shop by becoming sellers or creators. Sellers can showcase their products. Creators can use the affiliate program to partner with brands to promote their products.

Once payments are processed, both creators and sellers get paid through the bank account they connect to TikTok.

How to start a TikTok Shop as a seller

There are a few steps a person need to take before they can start selling products on TikTok. Keep in mind, you must be at least 18 years of age to open a TikTok Shop.

Step 1: Sign up at the TikTok Shop seller center

The first step is to use your TikTok account, an email address or phone number to create a TikTok Shop account. Next, be ready to provide onboarding information like business type, a form of identification, the last four digits of your Social Security number, the shop name, primary products or services that will be sold, and contact information. Business owners should prepare to input information like the business name, employer identification number and business address. Payment and tax information for both individuals and businesses are also necessary, in addition to the business address for the product detail page.

If you’re unsure about what you want to name your shop, don’t worry too much, as you can change your shop name later. It should take three to five days for your information to be audited and for TikTok to make a decision about approval.

Step 2: Upload products

Once the shop is open, it’s time to upload the products TikTok users will hopefully buy. Note that all the products listed on TikTok Shop must align with the app’s policies and community guidelines, so check those out beforehand.

Products can be uploaded in four different ways:

  • Manually: This may prove to be a slow grind, but you can add products to the store one at a time using this option. 

  • Sync with your existing online store: Those who already sell products on platforms like Shopify, Amazon, BigCommerce or WooCommerce can integrate those platforms with TikTok Shop. The how-to guides can be found in the TikTok Shop Seller Center. 

  • Use the Seller Center app: For people who prefer using phones and tablets, there is an option to upload products from a mobile device. 

  • Bulk upload: Using a template TikTok provides, sellers can upload products in bulk. The process includes selecting a product category, downloading the template, inputting product information and uploading the template to the TikTok Shop Seller Center. 

When uploading products, sellers should try to focus on clean images and tight product descriptions to engage shoppers. After uploading products, don’t forget to link the shop to a TikTok account.

Step 3: Sell

The final step is to sell products using live streaming, shoppable videos or product showcases. Sellers can also consider posting a Shop ad, sharing the word on other social platforms and encouraging buyers to leave reviews.

Partnering with TikTok creators through the affiliate program is another way to improve reach and sell products.

There are three types of affiliate plans sellers can choose from:

  • Shop plan: Gives creators a flat commission rate for every product. 

  • Open plan: Allows sellers to create special plans for specific products. 

  • Targeted plan: Allows sellers to invite specific creators to promote select products. 

How to join TikTok Shop as a creator

For people who don’t have products to sell, becoming an affiliate may be the best way to make money on TikTok Shop. The affiliate program is for content creators who want to partner with brands and get paid through commissions to promote products. To become a TikTok creator, you must be at least 18 years old and have over 5,000 followers.

To get started as a creator with the affiliate program, apply through TikTok Shop in the the TikTok app. Once your application has been approved, explore TikTok Shop to find products you might want to sell. Then reach out to sellers to get permission to promote their products. Next, add the products and your contact information to your showcase. Finally, request samples and sell the products to your audience.

Is TikTok Shop safe?

On its site, TikTok says it works with trusted third-party platforms to process customer payments and provide a secure TikTok Shop checkout. That said, if you’re concerned about safety, consider using the same online safety measures you’d use with any other account, such as changing your passwords regularly and using two-step verification for login.

TikTok Shop is one of many ways to make money in our digital-forward society. Just ensure you understand the process and guidelines before committing.

Source: nerdwallet.com

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