Like human health insurance, pet insurance helps cover unexpected medical expenses for our furry friends. One crucial component of that coverage is your pet insurance deductible. Understanding how deductibles work can help you choose the right plan for you and your pet.
What is a pet insurance deductible?
A pet insurance deductible is the amount you pay out of pocket for your pet’s veterinary care before the insurance company starts covering costs. It’s a set amount you choose when you purchase your policy.
For example, if your deductible is $250 and your pet’s vet bill is $1,000, you’ll pay the first $250, and the insurance company will help cover the remaining $750, depending on your policy’s terms. If you have an annual deductible, you’d have to pay this amount only once per year.
How do pet insurance deductibles work?
A deductible is a way for insurance companies to share the cost of vet bills with pet owners. Once you’ve met your deductible, the pet insurance company will pay any remaining portion of your vet bills that qualify for coverage.
In most cases, you’ll need to pay the full vet bill yourself and then file a claim for reimbursement with your pet insurance company. If there are any expenses insurance doesn’t cover, like taxes or waste disposal, the company will subtract them along with your deductible before reimbursing its share of the bill.
Raising or lowering your deductible will affect how much you pay for pet insurance. Selecting a higher deductible usually lowers your insurance premium but means you’ll pay more out of pocket when your pet needs care.
🤓Nerdy Tip
The amount you pay for routine care like vaccines or wellness visits usually doesn’t count toward your deductible. Even if you have separate coverage for preventive care, the deductible typically applies only to covered illnesses and accidents.
Types of pet insurance deductibles
There are two main kinds of deductibles: annual and per condition.
Annual pet insurance deductible
An annual pet insurance deductible is a set amount you pay each year before insurance starts covering your vet bills. You pay this deductible only once per policy term. It doesn’t reset until your policy renews, regardless of how many claims you make. This is the most common type of pet insurance deductible.
Say you have a $300 annual deductible. If your pet has a minor accident and the vet bill is $150, you pay the entire amount since it’s less than the deductible. (Note that you’d still want to file a claim so your pet insurance company can apply the amount you’ve paid toward your deductible.)
Later in the same year, your pet gets sick and racks up a $500 bill. You’d pay the remaining $150 of your deductible, and the insurance would cover a portion of the remaining $350, depending on your policy’s terms.
If your pet has more health issues within the same year, the insurance would continue to help cover the costs since you’ve already met the deductible. But once your policy renews, your deductible will reset and you’ll need to pay it again before receiving more insurance coverage.
Per-condition deductible
With a per-condition deductible, you pay a set amount out of pocket for each illness or condition your pet has. This type of deductible may also be called a per-incident deductible.
For example, if your pet gets an ear infection and later breaks a leg, you would pay your deductible twice: once for the ear infection and once for the broken leg.
After you pay the deductible for a specific condition, insurance helps cover additional costs for that condition over the life of your pet. This is beneficial if your pet develops a chronic problem that needs ongoing treatment each year. Once you meet the deductible for that condition, you don’t pay it again, whereas you’d pay it each year with an annual deductible.
The downside is that if your pet needs care for an unrelated problem later in the same year, you’re stuck paying the deductible all over again.
Did you know…
Very few pet insurers offer per-incident deductibles. Most have annual deductibles, so pet owners have to meet the limit only once per year.
Deductibles vs. copays and reimbursement rates
Deductibles, copays and reimbursement rates are different parts of how you and your insurance company share costs. Once you’ve paid your deductible, the insurance company uses the copay and reimbursement rate to calculate how much of the remaining vet bill it will cover.
A copayment, or copay, is your share of the vet visit cost after you’ve met your deductible. The reimbursement rate is the percentage of the bill the insurer will pay. For example, if your policy has a 70% reimbursement rate, that means your copay is 30%.
To see how these policy limits work together, imagine you have a $200 deductible, a 20% copay and an 80% reimbursement rate. If your pet’s vet bill is $1,000, you’d pay the $200 deductible first. Then, of the remaining $800, the insurance would pay 80% ($640), and you’d pay the 20% copay ($160). So, for a $1,000 vet bill, you’d pay $360, and the insurance would cover $640.
In general, a policy with a higher reimbursement rate will be more expensive, but the insurance company will cover more of your vet bills.
🤓Nerdy Tip
In addition to deductibles, copays and reimbursement rates, most pet plans have an annual coverage limit, which is the most your insurer will reimburse for vet care in a 12-month period. This limit is often customizable, and you may have the option to choose unlimited coverage. Your annual coverage limit is another factor that can influence the cost of pet insurance.
How to choose a pet insurance deductible
The goal when choosing a deductible is to strike a balance between good coverage and manageable out-of-pocket expenses.
First, determine how much you can comfortably pay for vet care. Imagine if your pet needed to visit an emergency vet tomorrow. How much of a deductible could you afford to pay? You shouldn’t struggle to cover your deductible in an emergency, so choose an amount that fits your budget.
Remember, the deductible is just one part of your policy. Consider it alongside copays, reimbursement rates and annual coverage limits to get the full picture. The more costs you take on yourself, the less you’ll pay for insurance, and vice versa.
If you’ve had your pet for a while, looking at what you’ve spent in vet care over the past year may help you predict future costs.
Compare deductible options from popular pet insurance companies
Pet insurance company
Deductible options
$100 to $1,000 annually.
$100 to $500 annually.
$100 to $1,000 annually.
$250 to $2,500 annually.
$100 to $1,500 annually.
$100 to $500 annually.
$100 to $1,000 annually.
$100 to $500 annually.
$250 to $1,000 annually.
$0 to $2,500 annually.
$250 annually. (Other options may be available.)
$50 to $1,000 annually.
$100 to $1,000 annually.
$100 to $1,000 annually.
$0 to $1,000 lifetime per-condition deductible in most states; some states have no deductible.
Saving and investing both involve setting money aside for future expenses. However, there are key differences between the two.
Each has its own set of rewards and challenges. A balance of the two can lay the groundwork for financial prosperity and safeguard your wealth.
The Basics: Defining Saving and Investing
Saving: The Safety Net
What is a Savings Account?
A savings account represents the initial wealth-building step in most financial journeys. At its core, saving means putting money in a secure location, like a bank account. This ensures your money remains safe while also earning interest. High yield savings accounts, frequently found with online banks and credit unions, offer particularly appealing interest rates.
The Role of the FDIC
The safety of savings accounts, money market accounts, and CDs is often reinforced by the federal deposit insurance corporation (FDIC). This entity ensures that even if a financial institution faces challenges, your money remains protected up to the FDIC-defined limits.
Emergency Funds: Why Are They Important?
Life throws curveballs, making it essential to have an emergency fund—a financial buffer. This fund should ideally encompass three to six months’ worth of living expenses, ensuring you’re prepared for unexpected financial setbacks.
The Savings Trade-Off
While savings accounts offer peace of mind, they come with a compromise. The interest rates, especially in traditional savings accounts, often lag behind inflation. This dynamic means your diligently saved money might gradually lose purchasing power.
Investing: The Growth Engine
Dipping Into the Investment World
Investing means allocating money into assets with the hope of appreciating value. Whether it’s shares in the stock market, real estate properties, or units in mutual funds, the primary objective is growth.
Stock Market: A Historic Wealth Builder
The allure of the stock market lies in its historical track record. Over extended periods, it has typically provided returns surpassing those of standard or even high yield savings accounts. Diversifying investments, like putting money in mutual funds, can help harness these potential gains.
The Reality of Investment Risks
However, with potential reward comes inherent risk. Unlike the predictability of an FDIC-insured savings account, money put into the stock market or other investment vehicles isn’t guaranteed. It’s possible to see significant gains, but it’s equally possible to encounter losses.
When to Save vs. When to Invest: Making the Right Call
It’s vital to recognize that while both saving and investing are pillars of financial security, their roles vary according to your needs and circumstances. It’s important to know when to use each of these financial tools.
Immediate Needs and Short-Term Goals
Emergency fund: It’s always paramount to have savings set aside for unexpected expenses. Whether it’s a medical emergency, sudden job loss, or major car repair, an emergency fund acts as a financial buffer. Keeping this in an easily accessible savings account or money market account allows for quick withdrawal without penalties.
Upcoming purchases: If you’re planning major purchases within the next 1-3 years, such as a down payment for a house or a new car, the priority is preserving the principal. In such cases, a high yield savings account or a short-term CD might be more suitable than volatile investments.
Travel plans: Saving for a vacation in the next year? While it’s tempting to try to “grow” your vacation fund quickly through investments, the short timeframe means a higher risk of not having enough money when it’s time to book that trip. Opt for saving in this case.
Mid to Long-Term Objectives
Retirement: For goals that are more than a decade away, such as retirement, the potential returns from the stock market or mutual funds typically outweigh the risks. Even with market fluctuations, long-term investing often results in appreciable growth, especially if one starts investing early.
Children’s education: If you’re saving for your child’s college and they’re still in diapers, investing might offer the growth potential needed to meet rising education costs. 529 plans or other investment accounts might be apt choices.
Building wealth: If you’re aiming to increase your net worth over time and don’t have a specific goal in mind, investing is the route. It leverages the power of compound interest and potential market returns.
Debt Consideration
High-interest debts: If you’re carrying a significant credit card balance or other high-interest loans, focus on paying these down before considering investing. The interest on these debts often surpasses potential investment returns.
Personal Risk Tolerance
Emotional comfort: Your comfort with market fluctuations plays a role. If the thought of losing some of your investment keeps you up at night, even if it’s a generally recommended strategy, you might lean more towards saving or very conservative investments.
Strategies to Optimize Your Financial Balance
To establish and maintain an ideal equilibrium between saving and investing, it’s essential to employ strategic approaches that cater to evolving financial scenarios and goals. Here’s a deeper dive into methods that can help you optimize this balance.
Diversification: The Financial Safety Net
Spread your assets: Avoiding concentration in one type of investment can mitigate risks. By dividing your capital across varied assets, such as stocks, bonds, and real estate, you can potentially safeguard against significant losses in any single asset class.
Low cost index funds: These funds replicate the performance of a specific market index, like the S&P 500. Due to their broad exposure, they offer a balanced growth potential coupled with relatively lower risk. Plus, their typically lower fees mean more of your money stays invested.
Seek Professional Guidance: Navigate with Expertise
Why advisory services?: The financial landscape is vast and often intricate. For those unfamiliar or even those looking for a second opinion, brokerage services or financial advisors provide valuable insights. They help decode the complexities, ensuring your strategies align with your objectives.
Certified financial planners: CFPs undergo rigorous training and certification processes. They can offer comprehensive financial planning advice, ensuring your saving and investing strategies are cohesive and well-aligned with your broader financial goals.
Automate to Accumulate: Consistency is Key
The power of direct deposits: By automating transfers from your checking account to investment or savings vehicles, you ensure consistent contributions. Over time, this approach can substantially amplify your savings and investments.
Harness dollar-cost averaging: This strategy involves investing fixed amounts regularly, irrespective of market conditions. It can potentially reduce the impact of market volatility on your investment.
Review, Reflect, and Refine: Adaptability Matters
Changing tides: Life isn’t static, and neither is the financial world. Personal milestones, market shifts, or alterations in financial objectives can necessitate a change in strategy.
Scheduled check-ins: Dedicate time periodically (annually or semi-annually) to review your portfolios. Rebalancing, which involves realigning the proportions of your investments, can be essential to ensure they continue to match your risk tolerance and goals.
Common Myths and Pitfalls: Separating Fact from Fiction
While financial literacy has grown over the years, myths still abound. These misconceptions can hinder sound financial decision-making. Let’s demystify some of the most common myths and pitfalls in the realm of saving and investing.
Investing Equals Gambling: A Risky Misconception
Understanding the difference: Yes, both investing and gambling involve risk. However, investing is about making informed decisions based on research, market trends, and historical data. Gambling is more reliant on chance and often lacks a strategic foundation.
Strategic approach: Investors often utilize various tools, analyses, and professional advisory or brokerage services to make informed decisions. Over time, while there are market fluctuations, historically, the stock market has trended upwards.
Age Constraints: The Timeless Truth
Power of compound interest: Starting young has its perks. Even small investments can grow exponentially over time, thanks to compound interest. But it’s essential to note, it’s not just for the young.
Every moment counts: Older individuals can still benefit from investing, especially with more substantial amounts and a well-thought-out investment strategy. No matter your age, it’s about finding the right investment portfolio that aligns with your financial goals and risk tolerance.
Minimums and Barriers: Breaking the Monetary Myth
Modern investing landscape: The financial markets have become increasingly accessible. With advancements in technology and the emergence of online banks and brokerage platforms, the barriers to entry have significantly lowered.
Fractional shares & micro-Investing: Some platforms today allow individuals to invest with as little as a few dollars, purchasing fractional shares of stocks or ETFs. This democratization means that virtually anyone can participate in the financial markets, regardless of their initial investment size.
Avoiding paralysis: One of the pitfalls here is waiting for the “right amount” to start investing. This can lead to missed opportunities. Consistently investing, even smaller amounts, can be beneficial in the long run.
Safety Nets, Backups, and Financial Security: A Three-Pronged Approach
Achieving true financial security is akin to constructing a sturdy building. It’s not just about the facade or height but ensuring a robust foundation and safety mechanisms in place. Here’s an expanded view on establishing a comprehensive financial safety framework.
Building a Strong Foundation: The Indispensable Emergency Fund
Significance of the fund: Think of an emergency fund as your financial cushion. When unexpected expenses – like medical emergencies or sudden job losses – arise, this fund ensures you don’t have to dip into long-term investments or accrue high-interest debt.
FDIC insured banks and credit unions: Parking your emergency savings in institutions insured by the Federal Deposit Insurance Corporation or similar protections in credit unions offers an added layer of security. Such institutions guarantee the safety of your deposits up to a certain limit, ensuring your money is shielded against unforeseen institutional failures.
Insurance: Your Financial Umbrella
Different types, singular purpose: The world of insurance is vast: health, life, disability, homeowners, renters, and more. Each type serves a unique purpose but shares a common goal: safeguarding you and your loved ones against financially detrimental events.
Preventive approach: Paying insurance premiums might feel like an added expense. However, in the face of adversities, insurance policies can prevent significant out-of-pocket expenses, ensuring financial stability.
Tax-Savvy Approaches: Maximize Your Returns
Taxable vs. tax-advantaged accounts: Recognizing the difference between these two is crucial. A standard brokerage account will have its earnings subject to taxes annually. In contrast, retirement accounts, like IRAs or 401(k)s, offer tax advantages, either deferring tax payments until withdrawal or eliminating them altogether, depending on the account type.
Compound and save: Over time, the money you save on taxes can compound, potentially leading to significantly larger returns. Being tax-smart is a key component of holistic financial planning.
Stay Liquid: Balancing Accessibility and Growth
Importance of liquidity: Investments tied up for the long term can offer excellent growth potential. However, it’s equally vital to have assets that can be quickly converted to cash for immediate needs, without penalties or a significant loss in value.
Ideal liquid venues: Savings accounts and money market accounts are perfect contenders for such liquid assets. They offer a blend of easy accessibility and modest growth, ensuring you’re not caught off-guard by short-term financial needs.
Bottom Line
Balancing saving vs. investing is an ongoing journey, not a one-time decision. As you navigate life’s ups and downs, your strategy will need tweaks and adjustments. However, with a solid foundation, informed choices, and a commitment to both saving and investing, you can optimize both risk and security, paving the way for a bright financial future.
Frequently Asked Questions
How much should I aim to save before I begin investing?
While it varies for each individual, many financial experts recommend building an emergency fund covering 3-6 months’ worth of living expenses before starting to invest aggressively.
Can I lose all my money if the stock market crashes?
While stock market downturns can lead to significant losses, diversified portfolios can mitigate this risk. It’s rare to lose all money unless invested in single, high-risk stocks.
Do I need a financial advisor, or can I start investing on my own?
You can certainly start on your own, especially with numerous online platforms and resources available. However, a financial advisor can offer personalized advice tailored to your goals and risk tolerance.
Is real estate a safer investment than the stock market?
Both real estate and stocks come with their risks and rewards. While real estate is tangible and can provide rental income, it requires more capital upfront and may not be as liquid as stocks. Diversifying investments across asset classes can help balance risk.
What’s the difference between a Roth IRA and a traditional IRA?
Both are retirement accounts, but they differ in tax treatments. With a Roth IRA, you contribute post-tax money, and withdrawals during retirement are tax-free. With a traditional IRA, contributions may be tax-deductible, but withdrawals during retirement are taxed.
How frequently should I review and adjust my investment portfolio?
While there’s no one-size-fits-all answer, many experts suggest reviewing your portfolio at least annually or whenever there are significant changes to your financial situation or goals.
Can I invest in stocks without going through a brokerage?
Yes, some companies offer Direct Stock Purchase Plans (DSPPs) that allow investors to purchase shares directly without a broker. However, using a brokerage can offer more options and tools for managing investments.
How can I protect myself against inflation eroding my savings?
Investing a portion of your savings can help. Stocks, bonds, and real estate have historically outpaced inflation over the long term. Additionally, consider high yield savings accounts or inflation-protected securities.
Whether you’re bringing in $140,000 on your own or that’s your combined household income, you probably feel pretty confident about your homebuying journey. You’re making about double the national median household income, which is $70,784 per the latest Census data, so getting approved for a mortgage and finding homes that fit your budget shouldn’t be too tricky.
Be smart as you shop, though. Earning more makes it easy to spend more — experts call this lifestyle inflation — and if you’re not careful, a hefty monthly mortgage payment could mean your spending outpaces your monthly earnings. Let’s crunch the numbers on how much house you can afford with a $140K salary.
The 28/36 rule
Many financial experts use a fairly simple set of calculations called the 28/36 rule to assess affordability. This guideline breaks down how much of your income should go toward your mortgage and other debts: Per the rule, no more than 28 percent of your gross income should go to your housing payments each month. And no more than 36 percent should be allocated to your total debt, including housing — such as car payments, student loans and credit card bills.
Let’s apply the 28/36 rule to your $140K salary to see how much you should be spending on housing costs:
Calculator
$140,000 / 12 = $11,667 (gross monthly income)
$11,667 x 0.28 = $3,267 (the most you should spend on housing costs each month)
$11,667 x 0.36 = $4,200 (the most you should spend on total debt each month)
How much house can you afford?
But wait, you might be thinking. I want to know a purchase price, not just how much I should spend on my mortgage payments. Bankrate’s mortgage calculator can help: It shows that if you were to buy a $500,000 home, with a 20 percent down payment and a 30-year loan at 7.5 percent interest, your monthly principal and interest payments would be $2,796. That leaves you a few hundred dollars to cover home insurance premiums and property taxes, which will vary widely depending on your location, before you hit that $3,267 cap.
So hypothetically, you can afford a $500K home. Don’t forget, though, that this does not include your upfront expenditures: a 20 percent down payment on a home of that price is a significant $100,000, plus closing costs.
And these aren’t the only factors to consider before you start house shopping. Here are some other metrics mortgage lenders look at to make sure you’re not overextending yourself:
Credit score: The higher your credit score is, the better the interest rate you can get — which means you’ll pay less in interest. This translates to big savings over the life of the loan, so it’s worth getting your score in the best shape possible before your house-hunt begins.
Debt-to-income ratio: Often called DTI, this metric is similar to the 28/36 rule in that it measures how your debt obligations stack up against your income. If you stay below 36, you should be in good shape, although some lenders allow for a higher DTI.
Down payment: You might have heard that you need to put 20 percent down, but that’s not necessarily true. Some loans require as little as 3 percent for a down payment. However, paying less upfront means borrowing more, and thus bigger monthly payments. And putting down the full 20 percent lets you avoid paying private mortgage insurance on top of your mortgage payment. With your $140K salary, shelling out a bigger down payment just makes sense.
Desired location: In most parts of the country, a $500,000 housing budget will probably get you a spacious single-family home. But in particularly pricey markets, like New York City or the San Francisco Bay Area, it might buy a lot less. Consider general cost of living prices, too, from groceries to transportation to entertainment. Make sure you can afford not just the house, but the lifestyle you want to live.
Home financing options
Even if you’re comfortable spending half a million dollars on a home, you probably don’t have that kind of cash just lying around. That’s where home financing comes in.
Get preapproved for a mortgage
Before you even start house-hunting, it’s smart to get preapproved for a mortgage. Preapproval isn’t final approval, but it tells you the size of the loan you’re likely to get, which helps ensure you don’t waste time looking at homes that don’t fit within your budget. It can also be crucial in competitive markets, where there may be more than one offer on a home — your preapproval lets sellers know you are a serious, qualified buyer.
Different types of loans
There are many different types of mortgages that can help you make that half-million home yours. Most have specific credit-score requirements, and you may not be eligible for some due to your high salary. If you are a military service member or veteran, it’s well worth looking into VA loans, and FHA loans are often popular with first-time buyers and borrowers with poor credit. But with a $140K salary, you’ll probably be looking at a conventional loan. A knowledgeable loan officer or mortgage broker will be able to explore your options with you.
First-time homebuyer programs
Are you transitioning from renter to homeowner for the first time? If so, you might be able to take advantage of first-time homebuyer programs, which can range from grants to low-interest or forgivable loans offering closing cost and down payment assistance. However, many such programs come with a maximum salary cap, so your $140,000 income might make you ineligible.
Getting started
When you’re ready to jump into the homebuying market, working with an experienced real estate pro in your desired area is your best first step. Local agents know their markets well and will be able to show you home options that match your needs and your budget. Ask for recommendations from friends and family, look at yard signs in the neighborhoods you like and research online to find some good candidates. Then, interview a few people before you choose the right one for you.
Netflix has come a long way from its 1998 start of mailing rental DVDs to consumers. There’s no doubt that today it reigns as one of the most popular streaming services out there, gaining the No. 1 spot in U.S. News & World Report’s list of best on-demand streaming services for its expansive library and award-winning original content.
In fact, according to a recent Netflix earnings report, more than 238 million people have monthly subscriptions as of 2023. But is Netflix the right streaming service for you? Explore how much Netflix costs and how the cost per month could fit into your overall budget.
Netflix costs $6.99 to $19.99 per month, depending on your subscription plan. It offers three plans: Standard With Ads, Standard and Premium. A former popular choice was the Basic plan at $9.99, but Netflix recently eliminated this option for new or rejoining members. If you’re currently on the Basic plan, you can keep your account as-is until you decide to change plans or cancel.
Users can cancel anytime. They can watch for the rest of the current billing period, and service ends when the next billing cycle starts. Customers who pay with credit or debit card also have the option to pause service for a month at a time rather than canceling, for up to three months.
Netflix subscription cost
Netflix only offers monthly subscriptions; there’s no option to pay yearly for a discount.
Standard with ads: $6.99 per month
With the Standard with ads plan, subscribers can access the majority of Netflix’s library in full high-definition and watch ad-supported film and television on two supported devices at a time. Supported devices include your smartphone or tablet, smart TV, laptop, or a streaming device such as Roku or Google Chromecast.
Downloading content onto a device to watch offline is not available with this plan.
Standard: $15.49 per month
The Standard plan is similar to the Standard with ads plan in that users can watch Netflix on two devices at a time, but have the added benefit of downloading content onto two devices and watching unlimited ad-free movies and shows. The Standard plan also includes full HD.
In previous Netflix offerings, users could share passwords with friends and family not living in the same household. But in late May, Netflix cracked down on password sharing, telling U.S. customers that their Netflix account “is for you and the people you live with — your household.” Customers now must pay $7.99 per month to share their account with people outside their household. Under the standard plan, users can add only one “extra member” outside their household.
Premium: $19.99 per month
Premium subscribers have unlimited ad-free viewing and can use up to four devices simultaneously, with the capability to download content onto six devices. Enhanced viewing features, like Ultra HD and Netflix spatial audio, set Premium subscriptions apart from the other options. Premium users also have the opportunity to add to the account two extra members not within the same household for shared access, at $7.99 each per month.
Regardless of which tier seems the most suitable today, price increases are on the horizon. The price of major ad-free streaming services has escalated by 25% in the past 12 months, according to The Wall Street Journal. While Netflix has been one of the few that has not increased prices since 2022, it is reported to be planning a pricing change once the Hollywood actors’ strike is over.
How do streaming services fit into your budget?
When deciding whether to add a new streaming subscription or adjust your current ones, it’s a good idea to reevaluate your budget. The 50/30/20 framework can be helpful; it means you allocate up to 50% of your income for needs, 30% for wants, and 20% for savings and debt repayment.
Streaming services fall into the category of wants, or the 30% available from your take-home pay. There’re a few ways to approach fitting streaming services like Netflix into your budget.
First, consider all the expenditures in your wants category — are there ways to save elsewhere, like reducing online shopping or cutting back on restaurant visits? Freeing up funds from other wants can make room in a budget for costlier streaming options.
Likewise, reviewing the number of monthly subscriptions you have and reassessing whether you still use and want them all can help keep a budget on track. Ask yourself: How much do I use each service? If I have to choose one, would I rather have subscription A or B?
If you’re a credit card user, check your rewards categories and see if you earn cash back or bonus points for subscription services. While it may not be worth opening a new card for these perks alone, it can be a nice complement to an existing budgeting strategy.
Silver is a valuable precious metal that has been a medium of exchange for thousands of years, offering both an investment opportunity and a hedge against inflation. The allure of silver extends beyond its industrial utility to its rarity, malleability, and its historical role as money.
As an investor, understanding how to buy silver can provide you with a solid tangible asset and a potential wealth generation strategy.
5 Ways to Buy and Sell Silver
Here’s a brief guide on five popular methods to buy and sell silver, each with their own advantages and considerations.
1. Silver Bullion: Bars and Coins
Silver bullion refers to physical silver, which can take the form of bars or coins. Bars offer versatility with various sizes, while coins, often minted by national institutions, hold potential collectible value along with their silver content.
Silver Bars
Bars can range from small 1-ounce bars suitable for individual investors, to large 1000-ounce bars typically used for institutional investment. They offer a straightforward, easily quantifiable way to invest in this precious metal.
Silver Coins
When it comes to silver bullion coins, there are several types to choose from, each offering its own unique advantages:
American Silver Eagles: These coins are produced by the United States Mint and are well known for their beautiful design and high purity. They contain one troy ounce of .999 fine silver. American Silver Eagles are legal tender in the United States, with a face value of $1. But they are generally bought and sold based on the market price of silver plus a small premium.
Canadian Silver Maple Leafs: The Royal Canadian Mint produces these coins, which are similarly admired for their design and purity (.9999 fine silver). They also contain one troy ounce of silver, and their face value is 5 Canadian dollars.
British Silver Britannias: Minted by the Royal Mint, these coins are .999 fine silver and have a face value of 2 pounds. They feature an iconic image of Britannia, the female personification of Britain.
Australian Silver Kangaroos: These are minted by the Perth Mint in Australia and also contain one troy ounce of .9999 fine silver. They carry a face value of 1 Australian dollar.
Silver Rounds: These are similar to coins but are not considered legal tender. Rounds can be produced by a wide variety of mints and usually contain one troy ounce of .999 fine silver. They often come with unique designs and can be a cost-effective way to invest in physical silver.
2. Silver ETFs
Exchange-traded funds (ETFs) offer a convenient method for investors looking to gain exposure to the silver market without the need to physically own the metal. Here are a few popular silver ETFs:
iShares Silver Trust (SLV): The largest silver ETF by far, iShares Silver Trust is designed to track the spot price of silver. Each share of this ETF represents a certain amount of physical silver held by the fund.
ETFS Physical Silver Shares (SIVR): This fund aims to replicate the performance of the price of silver, minus the Trust’s expenses. It offers a slightly lower expense ratio than SLV.
Invesco DB Silver Fund (DBS): Unlike SLV and SIVR, DBS invests in silver futures contracts, which can result in greater potential for returns but also higher volatility and risk.
ProShares Ultra Silver (AGQ): This fund seeks to provide 2x the daily performance of silver bullion as measured by the U.S. dollar fixing price for delivery in London. This makes it a more aggressive investment, as it leverages your potential gains (and losses).
Aberdeen Standard Physical Silver Shares ETF (SIVR): This fund is designed to track the price of silver, and each share is backed by physical silver bullion held by the fund.
Global X Silver Miners ETF (SIL): This ETF tracks the Solactive Global Silver Miners Total Return Index, giving investors exposure to a broad range of silver mining companies.
Investing in these silver ETFs is akin to buying shares on the stock market. Rather than owning physical silver, shareholders in a silver ETF own shares in a fund that owns silver. This introduces managerial risk and ongoing fees for the management and storage of the fund’s silver.
3. Silver Mining Stocks
Investing in silver mining stocks or a Silver Miners ETF offers an indirect approach to gaining exposure to the silver market. By purchasing shares of companies involved in the extraction and production of silver, you are essentially betting on their operational and financial success.
These stocks often move in correlation with silver prices, but they also hinge on factors like mining efficiency, management proficiency, geopolitical issues, and the overall health of the economy. For example, a company may suffer from operational issues that reduce its profitability, even if the price of silver rises.
Popular silver mining companies include Majestic Silver Corp, Wheaton Precious Metals Corp, and Pan-American Silver Corp. In addition, a Silver Miners ETF, like the Global X Silver Miners ETF, offers diversified exposure to a variety of silver mining companies in one package.
4. Silver Certificates
Silver certificates serve as a hassle-free alternative to physical silver ownership. Essentially, these are documents issued by a financial institution that grant the holder claim over a specified amount of silver.
The silver itself is stored and managed by the issuing institution, eliminating storage and security concerns for the investor. This can be a convenient option for those who wish to avoid the logistics involved with storing physical silver, while still having a stake in the precious metal’s value.
5. Silver Futures and Options
For more sophisticated investors, silver futures contracts provide a way to speculate on the future price of silver. A futures contract is an agreement to buy or sell a certain amount of silver at a future date for a set price.
Options work similarly, giving investors the right but not the obligation to buy or sell silver at a set price within a specific time frame. These types of investments are more complex and typically involve higher risk and potential reward than simply buying and holding silver.
Where and How to Buy Silver
Buying Silver Online
Purchasing coins, bars, or even silver stocks online is an increasingly popular method. Online retailers such as Money Metals Exchange, Gainesville Coins, and JM Bullion offer a wide range of silver bars, coins, and rounds with various designs, sizes, and prices. Buying silver online can often be cheaper than buying locally due to lower overheads, but it’s important to ensure the dealer is reputable.
Before buying, compare prices, check reviews, and ensure the site has secure payment methods. Be aware that when you buy silver this way, you’ll usually need to arrange for secure delivery or storage.
Buying Silver Locally
Local coin shops, some banks, and bullion dealers offer investors the chance to buy silver in person. This can be advantageous, as you can inspect the silver content and quality directly. It’s crucial to research dealers’ reputation and expertise, as well as comparing prices to the spot market price and other local dealers.
Buying Silver on the Stock Market
If you want to invest in silver ETFs, silver mining stocks, or silver futures contracts, you’ll need to use a stock trading platform. These can be accessed through online brokerages. The buying process is similar to buying shares in any public company. As with any investment, it’s important to do your research or consult a financial advisor before buying.
Pros and Cons of Buying Silver
Like all investments, buying silver comes with its own unique set of benefits and potential drawbacks. Let’s explore both sides of the coin to give you a more balanced perspective.
Pros of Buying Silver
Diversification: Silver can offer a good way to diversify an investment portfolio. It tends to move independently of stocks and bonds, meaning it can provide balance and reduce overall risk.
Hedge against inflation and economic uncertainty: Historically, precious metals like silver have held their value over time. As a hard asset, silver can act as a hedge against inflation and economic uncertainty, as its value often rises when the real value of fiat currencies declines.
Industrial demand: Unlike gold, which is primarily used for investment and jewelry, silver has numerous industrial applications. This demand can support the price of silver in a way that may not be applicable to other precious metals.
Affordability: Compared to other precious metals like gold and platinum, silver is more affordable. This lower price point allows more investors to buy physical silver bullion, such as bars and coins.
Tangible asset: When you invest in physical silver, you own a real, tangible asset that you can hold in your hand. This differs from digital or paper assets that only represent the ownership of an asset.
Cons of Buying Silver
Storage and insurance: Owning physical silver means dealing with storage and insurance costs. Whether it’s in a home safe or a safe deposit box, the costs and logistics of storage are factors to consider.
Price volatility: Silver prices can be quite volatile. While this can lead to significant gains, it can also lead to big losses.
Lower liquidity: Although silver is generally liquid, it can be harder to sell quickly compared to stocks and bonds. If you need to convert your silver into cash immediately, you might have to sell it for less than its market value.
No passive income: Unlike stocks and bonds, silver doesn’t produce dividends or interest. Your potential profit lies in the appreciation of the metal’s price.
Dealer premiums and selling costs: When you buy physical silver, you often pay a dealer premium over the spot price. Similarly, when you sell, you might receive less than the spot price.
Storing Your Silver
Deciding on the right place to store your silver is a crucial step. Here are some of your options:
Home storage: A personal safe at home can be sufficient for smaller quantities of silver. It’s convenient but comes with risks like theft or damage.
Bank safe deposit boxes: These offer high security and are good for medium quantities of silver. However, access is only during bank hours, and the contents are usually not insured by the bank.
Professional bullion storage: Ideal for larger investments, these facilities offer 24/7 security and typically include insurance coverage. Companies like the Royal Mint offer such services.
Silver IRA storage: If you have a Silver IRA, your silver will be stored by a qualified custodian in an approved facility, offering a hands-off and worry-free storage option.
Tax Implications of Buying Silver
The tax implications of owning silver depend on your country’s tax laws. In general, any profit from selling silver is subject to capital gains tax. Some silver investments, like silver mining stocks, silver ETFs, and silver futures contracts, might be held in a tax-advantaged account, like an IRA, but this is subject to specific rules and regulations.
Silver IRAs are a particular type of investment retirement account that allows you to hold physical bullion coins or bars in a tax-advantaged manner. They can be a valuable part of an investment portfolio, but they must be administered by a custodian and stored in an approved facility.
Conclusion
Investing in silver can provide diversification, a hedge against inflation, and potential for significant returns. There are many ways to buy silver, from physical bullion to silver ETFs, mining stocks, and more. Whatever path you choose, remember that like any investment, silver comes with risks. It’s important to do your research or consult a financial advisor before diving in.
Frequently Asked Questions
What’s the difference between spot price and market price in the context of silver?
The spot price of silver is the current price per ounce being traded on global commodity markets. The market price of silver, particularly when buying physical bullion, often refers to the spot price plus any dealer premiums, which can include costs for fabrication, distribution, and a minimal dealer fee.
Are silver coins or bars a better investment?
This often depends on the individual investor’s goals and circumstances. Coins can be more collectible and easier to sell in smaller quantities, but may carry higher premiums. Bars, particularly in larger sizes, often have smaller premiums and may be more cost-effective for larger investments.
Is investing in silver better than investing in gold?
Silver and gold are different assets with their own strengths and weaknesses. Silver is more affordable and has more industrial uses, which can drive demand. Gold, on the other hand, is more widely accepted as a store of wealth and is less volatile. Both can play a role in a diversified portfolio.
Are there any tax benefits to investing in silver?
Depending on your country’s laws, there may be tax advantages to investing in certain types of silver investments. For example, in the United States, silver held in a Silver IRA can grow tax-free. However, profits from selling silver are usually subject to capital gains tax. It’s important to consult a tax professional or financial advisor for personalized advice.
What is junk silver?
“Junk silver” is a term used to describe old coins that have no collector or numismatic value but are made of silver. These coins, like pre-1965 U.S. dimes, quarters, and half dollars, can be a cost-effective way to invest in silver, as they are often sold close to their actual melt value.
Selling a house amid a divorce can make an already-complicated situation even more complex. The need to manage a real estate transaction while also managing your interpersonal conflict is stressful, but sometimes financially necessary. Every couple’s situation will be a little bit different, of course, but if you need to sell the marital house due to a divorce, here are answers to some common questions and other things to consider during this difficult process.
Should I sell the house before getting divorced?
You can sell a property before, after or during a divorce, and the best option may be different for each couple. A number of factors can impact the best timing, including housing market conditions, how amicable your split is and the financial needs of each spouse.
One thing that can be useful is to work with a real estate agent who has experience in divorce transactions. “The common denominator for a divorce sale is that the divorcing parties must mutually agree to sell the marital property,” says Lou Rodriguez, an agent with United Realty Consultants in South Florida and author of “Selling Your Home During Divorce: How Everyone Can Win.”
An additional consideration for the timeline of your home sale is the potential profit you stand to make. If the value of the property has gone up significantly since you purchased it, you may have to pay capital gains tax, and the amount is very different depending on whether your taxes are filed jointly or as single individuals. For single tax filing status, you must pay taxes on anything over $250,000 in capital gains. That number doubles to anything over $500,000 if you file jointly as a married couple.
If you sell before the divorce is finalized, be sure you have a plan for what will happen with the earnings. “You’ll want to be careful how you handle the proceeds of the sale so that those proceeds are divided fairly during the divorce process,” says Randi Dukes, an agent with Repeat Realty in Dallas–Fort Worth and a divorce real estate specialist who has earned the RCS-D (Real Estate Collaboration Specialist–Divorce) designation. “It’s often recommended that those proceeds go into a separate account that can be divided upon divorce, rather than mixing the proceeds into other joint accounts.”
What are the options?
When you are going through a divorce, there are several different ways you could decide to sell the family home. Here are some common options.
Sell the house outright
“Often, selling the house makes the most sense because it provides both parties with a lump sum of money to establish a new home and a fresh start,” says Dukes. Selling the property outright means the proceeds can be more easily divided between two people. It also gives both partners the opportunity to establish the next phase of their lives.
Sell it to your spouse
Sometimes it makes more sense for one partner to continue owning the house. This can happen when one partner will have primary custody of the children, for example, as it eliminates the need for the children to move out of their home and be uprooted.
However, this option only works if the partner buying the home can make it work financially. “The spouse keeping the house needs to do their due diligence to make sure keeping it is a sound decision,” Dukes says. “A real estate agent can look at the title to see if there are any liens or second mortgages that one spouse may not know about, and the spouse can talk to a lender or financial advisor to see if they can actually afford to keep the house.”
If this is your plan, make sure you get all your legal ducks in a row. The partner selling the house will likely need to sign a quitclaim deed giving up their rights to the property and transferring them to the other partner — have a real estate attorney manage this process.
Co-own it
You could decide to hang on to the property and continue to own it together. Co-owning might allow you to rent out the property and both gain rental income, for example. Or, you could make the property work for both of you to live there with a renovation that divides it into two units. This can be a viable option for parents who both want to stay near the children.
Give it to your kids or family members
If you’d rather keep the home in the family than sell it, you could consider gifting the property to your adult children or another relative. This option eliminates the need to prepare the property for a sale and could be a way for both partners to put the property in the hands of someone they love. Again, be sure to have a real estate attorney handle the deal for you to ensure that ownership is properly transferred — and it’s a good idea to talk to a tax professional as well, to understand any tax or estate planning implications.
Community property states vs. equitable distribution states
There are two main legal approaches to how property is divided after a divorce. It all depends on whether you’re in a community property state or an equitable distribution state.
The majority of states fall into the category of equitable distribution, which means if one party earns or purchases certain assets, those assets are considered theirs individually. The assets don’t become shared property unless both parties agree to share them. “I live and work in Florida, an equitable distribution state, which simply means Florida courts will divide marital property in a manner which it considers fair, but not necessarily equal,” says Rodriguez.
Community property states, on the other hand, consider all assets acquired during a marriage to be jointly owned by both parties, and they are divided equally in the event of a divorce. Only nine of the 50 states are community property states, according to the IRS: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
How to sell a house during a divorce
Selling a house can be stressful and time-intensive no matter what. Follow these steps if you decide to sell your house during your divorce proceedings.
1. Hire an experienced real estate agent and lawyer
Not every real estate agent or attorney knows how to navigate the conflict and tension that can come with selling a house during a divorce. It’s important to work with someone who has experience in sales like this, or even specializes in them.
“I would recommend that you work with someone who knows how to work in high-conflict situations and has experience in getting people moving in one direction to accomplish shared goals,” says Rodriguez. “Because whatever happens during the sale — accepting an offer, countering an offer, all the way to signing closing documents — requires that both parties agree each step of the way. It makes a difference having a transactionally experienced listing agent who has worked with other divorcing clients.”
2. Get a home estimate and agree on a sale price
It’s important that both parties come together on pricing. There are various ways to determine how much your home is worth, from online estimators to a thorough analysis of your local market prepared by a real estate agent. But a professional home appraisal, which will cost several hundred dollars, is probably the most accurate assessment of a home’s market value.
3. Sell the home and split up the net proceeds
Once you agree on the terms and price for selling the home, your agent will guide you through the home-selling process. This will involve preparing the home for the market, taking professional photos for the listing, listing and marketing the property, coordinating showings, reviewing offers and preparing all the closing paperwork. Once the sale is closed and complete, the proceeds will be shared as required by your state and established by your attorney.
Next steps
Ready to sell? It’s important to find a local real estate agent both of you feel you can trust. “Look for someone with additional training in divorce real estate, and ask them about their experience,” says Dukes. This type of agent will be skilled in handling not only the home sale but also any interpersonal conflict that may arise.
FAQs
The best time to sell a house will be different for different couples. “If both spouses agree, then selling your house before filing for divorce is an option — if you’re trying to take advantage of a strong seller’s market, this might be a good idea,” says Randi Dukes, a Dallas–Fort Worth Realtor who specializes in divorce real estate. However, selling the house after the divorce may be the right choice for other couples. Whichever timeline you choose, it’s important that both partners agree on the process.
In some cases, if both parties can’t come to an agreement on how to sell the property, yes, a court may intervene to force the sale. The laws will differ depending on your state and your specific circumstances, so be sure to consult both your divorce lawyer and a real estate attorney in your area.
Rent prices are on the rise, with the average cost increasing 18% between 2017 and 2022. But buying a home requires a hefty down payment and good credit. Renting to own your home can give you the best of both worlds, but there are some downsides.
If you’re thinking about signing a rent-to-own agreement, it’s important to weigh the pros/cons of rent-to-own home deals. Here’s what you need to know before you sign on the dotted line.
What are rent-to-own homes?
When you own a home, part of your monthly payments goes toward paying off the principal. If you stay in the home long enough, you’ll own it.
The same doesn’t apply to rentals. Your monthly rent solely covers your costs of living in that home, whether it’s a condo, apartment, townhouse, or single-family house.
A rent-to-own home lets you pay rent to live on the property, with the option to buy it when the lease runs out. In some cases, a portion of your rent goes toward the purchase price, but that isn’t always the case.
How does rent-to-own work?
A rent-to-own agreement is essentially a lease agreement with an option to buy. Rent-to-own contracts should be read thoroughly. Those options can vary from one contract to another.
When you sign a rent-to-own contract, you pay an upfront fee called an option fee. This is typically 1 to 5% of the home’s purchase price, and it’s non-refundable.
It’s important to note that a lease does not relieve you of the requirements to buy a house. You’ll still have to qualify for a mortgage and make a down payment. It’s merely a way to buy yourself some time and possibly put some of your rent toward the purchase price of a home.
Lease Option vs. Lease Purchase
Before you sign, pay close attention to the lease agreement you’re signing. There are two types, and one contractually obligates you to buy the property.
Lease Option Agreement
A lease option agreement is the best deal of the two for you, the buyer. You’re signing a lease option contract that merely gives you first rights to the house when the lease is up. If you change your mind, find a better deal, or can’t qualify for a mortgage, you can find somewhere else to live and move your belongings out.
Since the option fee is nonrefundable, it’s important to note that you will lose money if you choose not to buy. Calculate this loss when you’re deciding whether to buy.
Lease Purchase Agreement
Unlike a lease option agreement, lease purchase agreements obligate you to buy at the end of the lease. Since it’s a contract, that means you’re legally obligated to purchase the house.
This can be risky for a couple of reasons. Once you’re in the house, you may see issues you didn’t notice when you were first touring the house. Things could change with the neighborhood or your circumstances that you couldn’t know at the outset.
But the biggest issue with a lease purchase contract could simply be that you aren’t eligible for a mortgage to buy the house. Make sure you know, up front, what penalties or liabilities you’ll face if you can’t buy the house when your lease is up.
Even though both agreements operate differently on your end, they do obligate the seller to give you the option to buy when your lease expires. This puts you in a position to own a home at a predetermined future date, giving you the opportunity to start planning.
Length of a Rent-to-Own Agreement
Rent-to-own contracts start with a lease period that can be up to five years but is usually less than three. The thought is that the rental period will give a renter time to qualify for a mortgage. During this time, you’ll work on building your credit, if necessary, and saving for a down payment.
In some cases, a rent-to-own arrangement could have renewal terms. That means if you reach the end of the lease and want more time, you can extend the lease. With this option, though, the property owner could increase your monthly rent or the purchase price.
Preparing for Homebuying
During your lease term, you’ll make each monthly rent payment in exchange for remaining in the house. But it’s important during that time that you work toward purchasing the house when your time is up. Here are some things to do to boost your chances of landing a mortgage once your lease expires.
Boost Your Credit Score
Your rent-to-own deal requires that you qualify for a mortgage once the term is up. To do this, you will need to meet the minimum credit score requirements. You can get a free copy of your credit report each year at AnnualCreditReport.com, but there are also credit monitoring services that can help you stay on top of things.
Although requirements can vary from one lender to the next, Experian cites the following credit scores as necessary to land a mortgage:
FHA: If you qualify, a Federal Housing Association loan will accept credit scores as low as 500.
USDA loans: Those who meet the requirements can qualify with a score as low as 580.
Conventional loan: Generally 620 or higher, but some lenders require 660 at minimum.
VA loans: Eligible military community members and their families can obtain loans with scores as low as 620.
Jumbo loan: These loans cover houses at a higher price, so you’ll need a score of at least 700.
Save for a Down Payment
In addition to a good credit score, you’ll need to put some money down on your new home. Down payment requirements vary by loan type, but it’s recommended that you put at least 20% down. That means if you’re buying a $200,000 home, you’ll need at least $40,000 by closing.
There are lower down payment options, but if you choose those, your mortgage payments will include something called private mortgage insurance. This will increase your monthly payment by $30 to $70 per $100,000 borrowed.
If you can’t save up 20%, you may qualify for an FHA loan, which requires as little as 3.5% down. Both VA and USDA loans have zero down payment options, and there are programs offering down payment assistance to those who qualify.
The best part about rent-to-own properties, though, is that some come with rent credits. With a rent credit, a percentage of your rent will go toward your required down payment. Calculate in advance how much you’ll have in that escrow account at the end of your lease to make sure you save enough to supplement it.
What are the pros of rent-to-own?
Rent-to-own homes can be a great option, especially during a tight housing market. If there’s a house you want to buy, but you can’t make a down payment or your credit isn’t where it should be, it could be a great workaround. Here are some of the biggest benefits of rent-to-own agreements.
Rent May Go Toward Purchase Price
Depending on the terms of the rental agreement, renting to own could help you work toward paying for the home. Instead of the full amount of your rent being pocketed by a landlord, a percentage of your rent could go toward the eventual purchase price. Before signing, pay attention to rent credits and try to negotiate the best deal possible.
The Purchase Price Is Locked In
When a landlord agrees to a lease option, the home’s purchase price is written into the contract. That price will typically be higher than what the market says it’s currently worth. This means if the U.S. housing market sees an unexpected increase, you’ll be buying the home for less than its value. Even if the market dips, once you purchase the house and remain there for a few years, you may be able to sell it at a profit.
You’ll Buy Extra Time
For many renters, the rent-to-own period provides time to qualify for a mortgage. If you’ve researched all the options and found you’re close but not quite there yet, a rental period could be just what you need.
Before you choose this option, though, take a look at your circumstances. If substantial existing debt and poor credit mean you won’t qualify, you may need more than the few years you’ll get with a rent-to-own agreement.
No Moving Necessary
Let’s face it. Moving can be a pain. You have to pack everything up, line up a moving truck and get help moving, and unpack your items once you’re in the new location.
With a rent-to-own agreement in place, you skip the hassle of moving. You’ve already been in that home, making monthly rent payments, for at least a couple of years. You’ll simply go through the closing process and switch from rent payments to mortgage payments.
What are the cons of rent-to-own?
If you can get a mortgage, that’s always going to be a better option than renting or leasing to own. But there are some instances where renting without the buy option could be better for you. Here are some things to consider.
Rent-to-Own Home Maintenance
Before you sign any lease agreement, it’s important to read the fine print. One thing to note, specific to own agreements, is who will be responsible for maintenance during the rent-to-own period. If you rent without the promise of eventual ownership, your landlord will take care of those costs. In some cases, rent-to-own agreements require the renter to handle all repairs.
But there’s an upside to handling repairs on your own. To your landlord, the property is technically yours. That means you likely will give it more TLC. Still, it’s well worth it to pay for a home inspection before you agree to a rent-to-own agreement. This will identify any serious issues that will need to be addressed before you buy.
Option Fee
One distinguishing feature of a rent-to-own property is the option fee. This is usually between 1 and 5% of the purchase price and is non-refundable. That means if you don’t ultimately qualify for a mortgage, you’ll lose that money.
Home Values Could Drop
Property values aren’t guaranteed. Your landlord estimates the value of the property, but if you’re in a rising market, you might get that home at a steal. While that’s good news for you, the reverse can happen. If housing prices drop substantially during that time frame, you could find yourself buying a property for more than it’s worth.
Contract Breaches Can Be Costly
Rental agreements are a legal obligation. If you don’t pay your rent, your landlord can evict you and keep your security deposit. But rent-to-own contracts bring an additional level of risk. Missed payments mean you could be evicted and lose all the money you’ve put in. That includes the upfront fee and any rent credit you’ve earned.
All that money will also be lost if you can’t qualify for a mortgage when your rental time is up. These agreements can give you some breathing room. However, if your low credit scores, income, lack of a down payment, or employment situation make you ineligible for a mortgage, you could be searching for another rental while losing everything you’ve paid on the lease-to-own home.
Steps to Buy a Rent-to-Own Home
Once you’ve decided renting to own is the route you want to take, you may wonder what to do next. The following steps can help you ensure you get the best deal in a rent-to-own agreement.
1. Find a Home
This is more challenging than it might sound, especially if you’re looking in a competitive real estate market. Rent-to-own homes are extremely rare, so you may have to find a home for sale and try to negotiate this type of setup.
Typically, homeowners become renters when they can’t sell their homes. This means your rent-to-own contract might be on a home that’s in a less desirable or convenient area of town. For someone whose home has been on the market for a while, being able to collect rent money with the promise of a sale in a few years can be a huge relief.
For best results, find a real estate agent who can help you track down a home and negotiate with the seller. The National Association of REALTORS® maintains a directory of real estate agents, but you can also ask for a referral or find real estate agents nearby who have brokered these types of deals recently.
2. Research the Home
Even if it’s tough to find a lease-to-own home in your area, don’t snatch up the first one you find. Crunch the numbers to make sure the rent and purchase price make financial sense for you. Look at the sale history of the home to verify that the owner’s estimated purchase price is somewhat within what the median home price will likely be when your lease expires.
3. Research the Seller
The seller needs to be looked into as well. This is even more important with rent-to-own agreements since this person will be your landlord for the entire lease period. If you see any red flags during your interactions with the seller, move on.
4. Choose the Right Terms
Before you make a real estate purchase, you would have a closing attorney review the documents. The same goes for a rent-to-own agreement. Run all the paperwork past a real estate attorney to make sure there’s nothing in the contract that will hurt you in the long run.
Your real estate agent should be able to negotiate the best terms for you, including how each rent credit will help you build equity and what happens at the end of the lease.
5. Get a Property Inspection
Any time you make a home purchase, it’s essential to know what you’re buying. The same is true for rent-to-own properties. A home inspector can check things out and make sure you aren’t purchasing a home with serious issues.
6. Start Preparing to Buy
Once you start making rent payments, it’s time to start preparing for your eventual home purchase. Chances are, you’ll have to make a sizable down payment on a home loan, so plan to have that ready. Also, keep an eye on your score with all three credit bureaus and make sure you’ll qualify.
A rent-to-own contract can be a good deal for both the buyer and the seller. It can give you time to save money and improve your credit score. A real estate lawyer should take a look at your contracts and make sure your best interests are protected.
Bottom Line
Rent-to-own homes present a unique option for potential homeowners. This approach offers the opportunity to enter the homeownership arena at a slower pace, allowing individuals to build credit, save for a down payment, and experience living in the home before making a final purchase decision.
However, the rent-to-own path isn’t free from drawbacks. Potential buyers should be wary of unfavorable terms, higher monthly payments, and the risk of losing money if they decide not to buy. Ultimately, like all significant decisions in life, choosing a rent-to-own option requires careful consideration and thorough research.
Frequently Asked Questions
Where can I find rent-to-own houses?
Rent-to-own houses can be found through specialized websites dedicated to these types of listings, local real estate agents familiar with the concept, or sometimes through classified advertisements in local newspapers or online platforms.
Can I find rent-to-own homes on Zillow?
Yes, Zillow does list rent-to-own homes. When searching for properties, you can filter the search results to show only rent-to-own options. However, availability may vary based on the region and market conditions.
How long is the typical rent-to-own contract?
The typical lease term ranges from one to five years, but terms can vary based on the agreement between the homeowner and tenant.
Do I have to buy the house at the end of the lease?
No, the decision to buy is optional. However, if you decide not to purchase, you may lose any upfront fees or additional monthly amounts set aside for the potential purchase.
Can the seller change the purchase price once set?
Generally, the purchase price is fixed in the initial agreement. However, some contracts may have clauses allowing price adjustments based on market conditions.
What happens if the property value decreases during the lease period?
If the home’s value decreases and you’ve agreed on a set purchase price, you could end up paying more than the current market value. It’s crucial to negotiate terms that protect your interests.
Who is responsible for repairs and maintenance?
The agreement should clearly outline these responsibilities. In most cases, the tenant bears the responsibility for maintenance and repairs during the lease term.
What’s the benefit of a rent-to-own agreement for sellers?
Sellers can generate rental income while waiting to sell, often at a premium. It also widens the pool of potential buyers, especially those who need time to improve their credit or save for a down payment.
How do property taxes work in a rent-to-own agreement?
In a rent-to-own scenario, the property taxes are typically the responsibility of the homeowner, as they still retain ownership of the property during the rental period. However, the specific arrangement can vary based on the terms of the agreement.
Some contracts may stipulate that the tenant pays the property taxes directly or reimburses the homeowner. It’s crucial for both parties to clearly understand and agree upon who will cover the property tax obligation before entering into a rent-to-own contract.
If I don’t buy, do I get a refund for the extra money paid?
Typically, the extra money paid above regular rent, often referred to as “rent premium,” is forfeited if you decide not to buy.
Is the rent in a rent-to-own agreement higher than usual?
Often, yes. A portion of the monthly rent may be used for the potential down payment or purchase price, making it higher than the average rent for similar properties.
What’s the difference between rent-to-own and mortgage?
Rent-to-own is an agreement where a tenant rents a property with the option to buy it at the end of the lease. No bank is involved initially, and the tenant isn’t obligated to buy. A mortgage, on the other hand, is a loan specifically for purchasing a property. The buyer borrows money from a bank or lender and agrees to pay it back with interest over a predetermined period.
Does rent-to-own hurt your credit?
A rent-to-own agreement, in itself, doesn’t usually affect your credit. However, if the homeowner reports late payments to credit bureaus, it could hurt your credit score. On the positive side, consistently paying on time and eventually securing a mortgage can benefit your credit.
What is another name for rent-to-own?
Rent-to-own agreements can go by various names, including:
Lease to purchase
Lease option
Rent-to-buy
Rent-to-purchase option
Lease purchase
Each of these terms represents the concept of renting a property with the potential option to buy it after a set period.
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.
Banks, credit unions and online lenders provide debt consolidation loans once borrowers go through the application process and meet certain criteria.
The average American credit card debt is roughly $5,010 per person, and many Americans struggle with additional forms of debt like loans and other bills. Loans come with interest rates, which make the overall cost higher than the original amount borrowed, and past-due bills can harm your credit. Fortunately, debt consolidation loans can help.
Today, you’ll learn what these loans are as well as how to get approved for a debt consolidation loan in five simple steps. Regardless of where your credit stands, you may get approved for one of these loans to help you lower interest rates and save some money as well.
What is a debt consolidation loan?
A debt consolidation loan is an unsecured personal loan designed to simplify the debt repayment process. Combining multiple balances into a single fixed-rate loan can potentially allow you to secure a lower interest rate on your debts and may enable you to pay them down faster.
Not only can you use debt consolidation loans to pay off other loans, but many people also use these loans to consolidate their bills. If you’re looking to consolidate credit card debt, you can use a loan or a balance transfer card.
How to apply for a debt consolidation loan
Debt consolidation means combining multiple debts into a single loan with one fixed monthly payment. This type of personal loan will ideally allow you to combine several high-interest debts into a new loan with a lower interest rate. If managed properly, it can yield significant money-saving benefits. However, there are a few steps you should take before applying for a debt consolidation loan.
Step 1: Check your credit
Your credit is one of the primary factors lenders will look at to determine whether or not your loan will be approved. Typically, approval is more likely if you have at least a good FICO credit score, which ranges from 670 to 850.
There are many ways to check your credit score and report for free, and this is often a good idea before you apply for debt consolidation loans. When a lender checks your credit, the hard inquiry can temporarily hurt your credit, so it’s better to know your chances of approval beforehand.
If you have poor credit, here are some ways to improve it before applying for a loan:
Catch up on late payments that are less than 30 days old
Pay off smaller debts to reduce your credit utilization rate
Check your credit report for errors, and challenge any errors you find
Step 2: Make a plan
Before you apply for loans to consolidate your debt or bills, it’s beneficial to make a plan. You can start by listing all of your various debts and bills that you want to pay off. These may include:
Credit cards
Bills
High-interest loans
Store credit cards
You can then add up each of these debts and the required monthly payments for each of them. Now, you can make a plan to see how much money is needed to pay these debts off and how much money you will save when you get a consolidation loan.
When devising this plan, you may want to create a monthly budget at the same time to ensure you can make the new monthly consolidation loan payments on time.
Step 3: Shop around
Whenever you’re applying for loans, remember that there may always be a better deal out there. Different lenders provide different interest rates on loans, and the lower the interest rate, the better. You also have different options when it comes to where you go to take out a loan:
Bank loans: Your current bank may provide loans, and if you have a long-term relationship with the bank, they may be more likely to approve a consolidation loan with bad credit.
Online lenders: There are many online lenders, and these lenders are known for providing loans to those with bad credit. Keep in mind that lenders who specialize in providing loans to people with bad credit may also have higher interest rates.
Credit unions: These not-for-profit financial institutions are often local and may provide you with better rates than other options. In order to take out a credit union loan, you’ll need to apply to be a member and meet certain criteria.
Step 4: Go through the application process
Now that you have settled on a financial institution, it’s time to go through the application process. A debt consolidation loan application may require the following documentation:
Proof of residence
Bank and other financial statements
Pay stubs or proof of income
Government-issued photo ID
After you provide the necessary documentation, the lender will run a hard inquiry to check your credit history and score. Credit scores are a way for lenders to assess the risk level of potential borrowers. Negative marks on a credit report may indicate that a person is likely to default on a loan, which is why it’s helpful to improve your credit score before you apply.
Step 5: Close the consolidation loan and make your payments
If you’re approved for the loan, the lender may provide your funds in one of two ways:
Paying creditors directly: The lender may pay off your debts directly. If this is the case, it’s recommended to continue making your payments until you receive written verification that the debts are settled.
Direct payment to the borrower: The lender may pay you directly by depositing the money into your bank account or providing you with a check. If this is the case, you’re then responsible for paying off your creditors. You may want to pay off the creditors sooner rather than later so you don’t continue to accrue interest fees.
What if your debt consolidation loan is denied?
If your loan application is denied, it can be for a variety of reasons. The lender may see something on your credit report that throws up a red flag, or you may not meet their income criteria. Should this happen, you will receive a letter through the mail or email explaining why they denied your application.
A denial of a loan isn’t the end of the road, and you have a few options you can turn to:
Try to apply for a lower amount: Depending on the amount you request, the lender may decide that you’re too high of a risk. By lowering the amount, they may approve the loan.
Apply with other lenders: Applying for loans triggers hard inquiries that temporarily lower your score, so do your research beforehand. If you’re denied, look for lenders that offer preapproval or specialize in debt consolidation loans for bad credit.
Look into debt management plans: There are various companies that offer credit counseling and debt management plans to help you repay your debt. Some of these services require payment for the counseling, but there are also some that are nonprofit organizations.
Sign up for credit repair: If your loan was denied because of poor credit, it might be due to errors on your credit report. Companies like Lexington Law Firm offer credit repair services and challenge credit reporting errors on your behalf.
Debt consolidation loan FAQ
Here we’ve provided some helpful answers to debt consolidation loan FAQ.
How hard is it to get a debt consolidation loan?
If you have a bad credit score, it can make it difficult to get a debt consolidation loan. You may want to try a bank or credit union that you have a relationship with, or try to repair your credit first.
How can you qualify for a debt consolidation loan?
Typically, a good credit score of 700 or higher is the best way to qualify for a debt consolidation loan. This will also help you get the best interest rates.
Can debt consolidation loans hurt your credit?
The initial hard inquiry into your credit score will temporarily lower your score. As long as you stay current with your monthly payments, your score should be fine and will potentially get higher over time.
What’s the minimum credit score needed to get a consolidation loan?
A fair FICO® credit score of 580 to 669 may be enough to qualify at financial institutions for a debt consolidation loan.
Improve your credit before taking out a debt consolidation loan
As you now know, debt consolidation loans can be a great way to pay off your debt faster and potentially lower your interest rates. If you have poor credit and need assistance before applying for a debt consolidation loan, allow Lexington Law Firm to help.
We have a team of credit professionals, and we’ll assess your credit report to see if any errors are harming your credit. We also offer additional services to help you work toward and maintain good credit. Sign up for your free credit assessment today.
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!
Due to the financial challenges created by the COVID-19 pandemic, federal student loan payments were automatically paused from March 2020 to September 2023. During that time, interest didn’t accrue and collections activities were also paused. But now that payments are due again, many borrowers are looking for ways to make their loans more manageable, especially those who are facing ongoing financial hardships.
One option is student loan deferment, which allows you to temporarily pause your student loan payments. As with most financial decisions, there are pros and cons to deferring your student loans. Here’s more information about student loan deferment and what it could mean for your financial future.
What Is Student Loan Deferment?
Deferment is a program that allows you to temporarily stop making payments on your federal student loans or to temporarily reduce your monthly payments for a specified time period.
This is similar to another option known as forbearance. However, unlike forbearance, you may not be charged interest while your loan is in deferment. According to the Department of Education, if you hold one of the following types of loans, you will not be responsible for paying interest on your loan while it is in deferment:
• Direct Subsidized Loan
• Subsidized Federal Stafford Loan
• Federal Perkins Loan
• The subsidized portion of a Direct Consolidation Loan
• The subsidized portion of a Federal Family Education Loan (FFEL) Consolidation Loan
If you have one of the following types of loans, you will be responsible for paying the accrued interest on your loan while it is in deferment:
• Direct Unsubsidized Loan
• Unsubsidized Federal Stafford Loan
• Direct PLUS Loan
• FFEL PLUS Loan
• The unsubsidized portion of a Direct Consolidation Loan
• The unsubsidized portion of a FFEL Consolidation Loan
If you are responsible for paying interest on your student loans while they are in grad school deferment, you have two options: 1) you can make interest-only payments on the loans while they are in deferment; 2) if you choose not to make these interest-only payments, the accrued interest will capitalize (be added to the loan principal) when the deferment period is over. 💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fee loans, you could save thousands.
How Do You Qualify for Student Loan Deferment?
In order to qualify for student loan deferment, you must meet one of the following requirements:
• You’re enrolled at least part-time at a qualifying university
• You’re unemployed or unable to find employment (for up to three years)
• You’re experiencing an economic hardship
• You’re currently volunteering in the Peace Corps
• You’re on active-duty military service (or are in the 13 months following that service)
• You’re in an approved graduate fellowship program
• You’re in an approved rehabilitation program (for disabled students)
Requesting a Deferment
If you’re interested in deferring student loans to go back to school, you’ll need to apply for an in-school deferment. Most likely, you will request the deferment directly through your loan servicer—there is usually a form for you to fill out. When you request a deferment, you’ll also need to provide some sort of documentation to prove that you qualify for a deferment.
If you are enrolled in an eligible college or career school at least half-time, may be placed in deferment automatically . If it is, your loan servicer will notify you that deferment has been granted. If you enroll at least half-time and do not automatically receive a deferment, you will need to contact the school in which you are enrolled. The school will then send the appropriate paperwork to your loan servicer, so that your loan can be placed in deferment.
Pros and Cons of Student Loan Deferment
The biggest benefit of student loan deferment is the ability to temporarily postpone student loan repayment. As of the first quarter of 2023, 2.8 million loans were in deferment.
If you are deferring for extreme financial hardship, deferment allows you to free up money to pay off bills that require immediate attention like rent or electricity.
For students who have qualified for deferment through community service, like a stint in the Peace Corps, deferment gives them the opportunity to serve their community without any added stress from student loan payments.
While temporarily pausing loan repayment may seem like a blessing, it can come at a cost, especially if your student loans are not subsidized by the government. When in deferment, interest continues to accrue on your loan. And at the end of your deferment period, that interest will be capitalized on the loan. (This means that the accrued interest will be added to the principal balance of the loan. So ultimately, you’ll be paying interest on top of interest.)
This can mean you end up paying even more money over the life of the loan. To see how much deferring your student loans could cost, you can use an online calculator to get an estimate of how much interest will accrue while the loan is in deferment.
The Pros and Cons to Student Loan Refinancing
If you have private loans that aren’t eligible for federal student loan deferment, refinancing your student loans is another option to consider. You may also want to think about refinancing when you’re done with your graduate degree to pay off your loans at a potentially lower interest rate.
When you refinance, your existing student loans are paid off with a new loan from a private lender. If you are refinancing private loans before going back to graduate school, you may be after a lower monthly payment, which you could potentially qualify for when refinancing your loans and extending the loan term. (You may pay more interest over the life of the loan if you refinance with an extended term.)
Alternatively, if you’re looking to refinance after graduate school, you could potentially qualify for a lower interest rate, which could reduce the amount of money you spend over the life of the loan. The lender will use your credit score and earning potential to determine what interest rate you’ll qualify for. And thanks to your new graduate degree, you could have significantly increased your earnings.
Another big benefit of student loan refinancing? You’re able to combine all of your student loan payments – for both federal and private loans – into one easy-to-manage payment.
If you hold only federal student loans, however, you could look into a Direct Consolidation Loan , which allows you to consolidate federal loans into one loan with a single monthly payment. The new interest rate will be the weighted average of your current interest rates (rounded to the nearest one-eighth of 1%), so unlike refinancing, when you consolidate your student loans, you won’t necessarily qualify for a lower interest rate.
If you are taking advantage of your federal loans’ flexible repayment plans or student loan forgiveness programs (or if you are planning to do so), refinancing might not be the best option for you. A major con of student loan refinancing is that you’ll lose access to federal loan benefits when refinancing with a private lender—including deferment and income-driven repayment plans.
Refinancing Your Loans with SoFi
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
Student Loan Refinancing If you are a federal student loan borrower you should take time now to prepare for your payments to restart, including the opportunity to refinance your student loan debt at a lower APR or to extend your term to achieve a lower monthly payment. (You may pay more interest over the life of the loan if you refinance with an extended term.) Please note that once you refinance federal student loans, you will no longer be eligible for current or future flexible payment options available to federal loan borrowers, including but not limited to income-based repayment plans, such as the SAVE Plan, or extended repayment plans.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
Before putting your stuff into storage and begging for a guest bed or couch from a friend, choose the vastly easier option and send your landlord a lease extension letter. There’s no guarantee that you’ll get one, but your landlord may agree to extend your lease end date if they haven’t rented your apartment to someone else yet.
What is a lease extension?
A lot of rental concepts are pretty complicated, but fortunately, this isn’t one of them. A lease extension is exactly what it sounds like — an extension on the length of time you’re allowed to stay in your rental. This can range from a few days to a few months, depending on what you work out with your landlord. You can expect to pay a prorated amount on your monthly rental rate for the additional time you occupy the space.
Asking for an extension
If you have a good relationship with your current landlord and you’ve been a model tenant, your chances are probably pretty good for getting an extension. It also helps if there isn’t a new tenant waiting to get into your apartment. It doesn’t benefit the landlord if the place sits empty, so you may get a lease extension so he or she isn’t out as much money.
The important thing to know when asking is to be professional and reasonable in your lease extension letter. If the landlord agrees to the extension, he or she is doing you a favor, so be polite, courteous and willing to negotiate.
Put it in writing
A lease is a legal document, so a lease extension letter request should be treated with the same level of importance. To request a lease extension, submit a formal letter containing all the pertinent details your landlord needs to make a decision. The letter should include:
Your name, current address and contact information
Date the lease extension request is submitted
Length of the lease extension, including the proposed end date
Reasons for extension
Date by which you need a decision, usually 10 days to two weeks
Putting your request in writing also keeps a record should any issues arise during the extension period.
Timing is everything
If possible, submit your lease extension letter 30-60 days before your lease end date. This gives your landlord enough notice so that when they find the next tenant, they can set their move-in date for when you’ve already left.
Give your landlord something in return
Be proactive in letting your landlord know that you’re willing and expecting to pay for this extended time. Calculate the daily rate of rent you pay based on a 30-day cycle, then offer a prorated rent based on the total days of your extension. So, if your monthly rent is $1,000 and you need to stay an extra week, the rent for the extension period would be $250.
This is a great place to start, and certainly a reasonable offer, but don’t be surprised if your landlord hikes up the cost of occupying the apartment during the extension — it’s a pretty common practice. Think of it as a convenience charge. The alternative to paying a little more is not having a place to stay, moving your things multiple times and wasting money on temporary storage space, so it’s worth it for just a short period.
Sample lease extension letter
Not sure what to say in a lease extension letter? Check out our downloadable example!
[Your Name] [Address] [City, State Zip Code]
[Date]
[Landlord’s Name] [Landlord’s Address] [City, State, Zip Code]
Lease Extension Request for [Rental Address]
Dear [Landlord’s Name],
Please accept this letter as a formal request for an extension to the lease for [Property Address]. Currently, the lease is set to expire on [date]. I would like to amend that date to end on [new date]. I propose to pay you the prorated amount of [extension rent amount] for the additional days that I will occupy the property.
I am asking for this extension because [insert reason here, for example: I am moving out of state, I am getting married, etc.] Your flexibility with my lease end date will make this transition time much more seamless.
I appreciate your careful consideration of this matter. Please respond to this letter with an answer in writing within two weeks [by date]. Feel free to contact me with any questions or to discuss this matter.
Sincerely,
[Tenant Signature] [Tenant’s Name] [Tenant’s Unit Number]
Prepare in advance
To avoid the potentially awkward situation of asking for a lease extension toward the end of your time in the apartment, consider adding a clause to your lease when you sign it that addresses this situation.
Often, the addition of this clause will include the length of time you can extend, a deadline to ask for the extension, as well as any change in rent that may occur. If it’s in the lease to begin with, the landlord is obligated to honor your request.
Regardless of how you word it in your lease, it’s important to read through the entire document carefully to ensure you’re protected as the tenant during the term of occupancy.
Nothing to lose, everything to gain
There’s no guarantee that your move-out date from your current place and your move-in date for your new apartment will be the same. Working with your landlord to negotiate a lease extension is one of the best options to keep your stress levels in check during your move, so don’t be afraid to ask. The worst thing your landlord will say is no!
A freelance writer based out of the Atlanta area, Alia has penned articles during her decade+ career for such sites as HowStuffWorks, TLC, Animal Planet, Zillow and many more. Her favorite things to write about include fitness, nutrition, travel, healthcare and general lifestyle topics. A graduate of the University of Georgia, Alia’s an avid Dawg, but she also loves reading, sewing, eating all things chocolate and playing sports with her husband, three boys and beloved border collie, Flash.