Credit Card Debt Archives - Hanover Mortgages

June 27, 2022

Best CD Rates of 2022

A certificate of deposit — CD for short — is a low-risk savings account that holds a fixed amount of money for a certain time, such as six months, one year or five years.

During that time, your deposit earns a fixed interest rate. Usually, the longer the term, the higher the interest rate.

When the CD term is up, you receive your initial deposit back plus the interest earned.

Unlike a savings account, CDs typically don’t let you withdraw money whenever you want. CD accounts require you to leave funds untouched for a fixed period or else face an early withdrawal penalty.

These penalties usually range from three months of interest to one year worth of interest, depending on the term length.

You can buy a certificate of deposit from a bank or credit union. Bank CD accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 — just like savings accounts and money market accounts.

Credit unions issue share certificates, which are the credit union equivalent of CDs. These are also insured for up to $250,000, but by the National Credit Union Administration (NCUA) instead of the FDIC.

CD vs. Savings Account: Which Is Better?

If you’re debating between a certificate of deposit or a savings account, ask yourself this question: Do you care more about interest rates or access to your money?

A CD account usually earns a higher annual percentage yield (APY) than what you usually find in a high-yield savings account — but your money is harder to access.

If you need easier access to your funds, a savings account is a better option.

But a traditional savings account doesn’t earn much interest. In fact, the national APY for savings accounts is just 0.07%.

So if you’re saving for a short-term goal and want to earn as much interest as possible, a certificate of deposit is likely a better choice than a savings account.

Opening a CD makes sense when you are free of credit card debt and already have an emergency fund built up in your savings account.

Best CD Rates Compared

Bank	Best for	APY	Minimum Opening Deposit	Term Length
Marcus by Goldman Sachs	No-penalty CDs	0.50% – 2.55%	$500	6 months to 6 years	SEE DETAILS
Discover Bank	CD laddering	0.30% – 2.50%	$2,500	3 months to 10 years	SEE DETAILS
Ally Bank	Bump rate CDs	0.30% – 2%	$0	3 months to 5 years	SEE DETAILS
Synchrony Bank	Rate guarantee	0.50% – 2.60%	$0	3 months to 5 years	SEE DETAILS
Capital One	No minimum balance requirement	0.60% – 2.25%	$0	6 months to 5 years	SEE DETAILS
PenFed Credit Union	5-year and 7-year CDs	0.65% – 3%	$1,000	6 months to 7 years	SEE DETAILS
Bread Savings	High APYs	1.75% – 2.55%	$1,500	1 year to 5 years	SEE DETAILS
Quontic Bank	6-month CDs	0.95% – 2.3%	$500	6 months to 5 years	SEE DETAILS

Marcus by Goldman Sachs

Best for no-penalty CDs

5 out of 5 Overall

Key Features

Above-average CD rates
$500 minimum deposit
Various term lengths

Marcus by Goldman Sachs consistently offers some of the best CD rates on the market. It’s one of the few online banks that offers a no-penalty CD option, including seven-month, 11-month and 13-month CD accounts. Term lengths for high-yield CDs range from six months to six years. Marcus by Goldman Sachs also offers a 10-day rate guarantee on CDs.

Marcus by Goldman Sachs

Annual Percentage Yield (APY)

0.50%-2.55%

Term Length

6 months to 6 years

Minimum Deposit

$500

Additional Details

Marcus by Goldman Sachs offers competitive CD interest rates with terms ranging from six months to six years.

CD rates range from 0.50% to 2.55% APY. The $500 minimum deposit requirement is lower than some other banks and credit unions.

The company offers two types of certificates of deposit: a high-yield CD and a no-penalty CD. Term lengths for no-penalty CDs range from seven months to 13 months with 0.35% to 0.75% APY.

Unlike traditional CDs, no-penalty CDs let you withdraw money at any time without paying a fee or losing interest.

Early withdrawal penalties from a standard high-yield CD are as follows: Loss of three months worth of interest on CDs with a maturity date of less than a year, nine months of interest for CD terms of one to five years and a year’s worth of interest for six-year CDs.

Marcus by Goldman Sachs is also well-known for its high-yield savings accounts, which consistently offer above-average interest rates.

Discover Bank

Best for CD laddering

4.5 out of 5 Overall

Key Features

12 different term lengths
Competitive CD rates
IRA CD

Discover Bank offers 12 different CD term lengths — more than many of its competitors. This variety of maturity dates gives customers multiple options for CD laddering. Bank CD terms range from three months to 10 years. The minimum deposit of $2,500 is somewhat high but Discover Bank CD rates are competitive.

Discover Bank

Annual Percentage Yield (APY)

0.30%-2.50%

Term Length

3 months to 10 years

Minimum Deposit

$2,500

Additional Details

Discover, best known as a credit card company, boasts a strong selection of financial products — including CDs.

Discover Bank CDs are available in 12 term lengths, from three months to 10 years and with APYs ranging from 0.30% to 2.50%.

Numerous CD terms makes it easy for consumers to explore CD laddering options. A CD ladder involves opening multiple CDs with staggered maturity dates. Doing so lets you earn interest while providing easier access to your money.

Another perk: Discover offers CDs for individual retirement accounts (IRA CDs).

We’re not in love with Discover’s $2,500 minimum deposit requirement, which is higher than other online banks and credit unions on this list.

The early withdrawal penalty for Discover CDs ranges from three months of interest for term lengths of one year or less all the way up to two years of interest for CD terms of seven to 10 years.

Like all CDs on this list, there are no monthly fees or opening fees.

Aside from CDs and credit cards, Discover also offers an online savings account and checking account.

Ally Bank

Best for bump rate CDs

5 out of 5 Overall

Key Features

No minimum deposit requirements
Interest compounds daily
24/7 customer service

With no minimum deposit requirements, Ally Bank CDs are a great option for new investors. You can also open a CD account in the name of a trust. In addition to several no-penalty CDs and high-yield CDs, Ally offers Raise Your Rate CDs, which give you the option to bump up your CD interest rate if the APY increases during the term without having to wait for the maturity date.

Ally Bank

Annual Percentage Yield (APY)

0.30%-2%

Term Length

3 months to 5 years

Minimum Deposit

Additional Details

Ally Bank, a popular online financial institution, offers a wide variety of online CD types and term lengths. Like many of their financial services, there’s no minimum deposit requirement to open a bank CD.

In addition to its standard high-yield CDs, Ally offers two bump-up CDs, or what the company calls Raise Your Rate CDs.

The APY is a little lower, but you can request one to two rate increases if Ally raises the rate for new CDs with the same term and balance tier as your CD.

That could be appealing as the Federal Reserve increases interest rates throughout 2022.

Ally also offers a no-penalty CD with an 11-month term and a 0.70% annual percentage yield. You can withdraw your full balance and interest any time beginning six days after you fund your account.

Ally is a full-service bank that boasts many financial products including an online savings account, checking account, investment account and more.

Synchrony Bank

Best for rate guarantee

5 out of 5 Overall

Key Features

15-day rate guarantee
9 term lengths
No minimum deposit requirement

Synchrony Bank’s nine online CD term options coupled with a $0 minimum deposit make it ideal for short-term CD laddering. In addition to competitive CD interest rates, Synchrony Bank offers a 15-day rate guarantee — more generous than the 10-day guarantee offered by most banks and credit unions. During this time, you can claim the highest interest rate if the published rate increases.

Synchrony Bank

Annual Percentage Yield (APY)

0.50%-2.6%

Term Length

3 months to 5 years

Minimum Deposit

Additional Details

Synchrony Bank is a financial institution with nine different online CD term lengths ranging from three months to five years. It offers competitive rates on certificates of deposit, from 0.50% to 2.6% APY.

There is no minimum deposit requirement, and the company also offers IRA CDs.

Another perk: You get the option of withdrawing the interest earned before the CD’s maturity date without penalty.

Synchrony Bank offers a 15-day rate guarantee on any certificate of deposit, which is longer than the standard 10-day guarantee offered by most banks and credit unions.

During this time, you can claim the highest available fixed interest rate if the published rate increases.

Early withdrawal penalties are as follows: Loss of three months of interest for bank CD term lengths of one year or less, six months of interest for CDs with one- to four-year terms, and one year worth of interest for five-year CDs.

Synchrony offers other useful tools for savers, including a money market account and a high-yield savings account. However, it doesn’t offer a checking account.

Capital One

Best for no minimum balance requirement

4.5 out of 5 Overall

Key Features

Easy to open
No minimum deposit
Competitive rates

Capital One is another credit card company that offers CDs. There’s no minimum deposit and various term lengths are available. You can decide when your bank CD account interest is paid out — either at the end of the term, monthly or annually. If you withdraw money early, you’ll pay between three months to six months worth of interest, which is less than some other banks.

Capital One

Annual Percentage Yield (APY)

0.60%-2.25%

Term Length

6 months to 5 years

Minimum Deposit

Additional Details

Capital One’s $0 minimum deposit requirement and competitive rates on online CDs makes the company an attractive option, especially for customers who already bank with Capital One.

The company offers nine bank CD term lengths, from three months to five years. APYs range from 0.60% to 2.25%.

Early withdrawal penalties are lower than some other online banks and credit unions: Three months of interest for terms of one year or less and six months worth of interest for longer terms.

Aside from CDs and credit cards, Capital One offers checking accounts and savings accounts.

PenFed Credit Union

Best for longer-term CDs

5 out of 5 Overall

Key Features

High APYs for 5-year terms
Competitive rates
Education Savings Certificates

Pentagon Federal Credit Union offers money market certificates — the credit union equivalent of CDs — with high APYs. Its rates for 5-year and 7-year certificates are some of the highest on the market, though early withdrawal penalties can be steep. The credit union also offers Education Savings Certificates. Like most credit unions, you must become a member of PenFed before you can buy a CD.

PenFed Credit Union

Annual Percentage Yield (APY)

1.5%-3%

Term Length

6 months to 7 years

Minimum Deposit

$1,000

Additional Details

Pentagon Federal Credit Union — PenFed for short — once exclusively served people affiliated with the military. In 2019, the credit union opened its services up to the general public.

PenFed’s money market certificates — the credit union equivalent of CDs — have terms ranging from six months to seven years with annual percentage yields from 0.65% to 3%.

The credit union really stands out for its 3% APY on a seven-year CD — the highest rate of any bank or credit union on this list.

PenFed’s $1,000 minimum deposit requirement is pretty standard for money market certificates with high APYs.

Just to be clear on some credit union jargon: a money market certificate isn’t the same as a money market account. Yields earned on credit union accounts are called dividends instead of interest.

Early withdrawal penalties can be steep. The early withdrawal penalty for its 6-month and 3-year certificates equals 90 days of dividends earned.

For all other certificate term dates, the early withdrawal penalty means losing one year of dividends or 30% of total dividends that would have been earned if the certificate reached its maturity date.

Aside from CDs, Pentagon Federal Credit Union offers a checking account that earns dividends as well as high-yield savings accounts.

Bread Savings

Best for high APYs

4.5 out of 5 Overall

Key Features

Above average APYs
Limited term length options
Interest accrued and compounded daily

Bread Savings is an online bank formerly known as Comenity Direct. It offers five different CDs with term lengths ranging from one to five years. It fetches above average APYs but lacks shorter-term online CD options. CDs are offered through Comenity Capital Bank, which started using the Bread Savings name in April 2022.

Bread Savings

Annual Percentage Yield (APY)

1.75%-2.55%

Term Length

1 year to 5 years

Minimum Deposit

$1,500

Additional Details

Bread Savings offers competitive online CD rates ranging from 1.75% to 2.55% APY and terms from one to five years.

It offers fewer term lengths than many of its competitors and its $1,500 minimum opening deposit is higher than most banks or credit unions on this list.

Early withdrawal penalties are as follows: Loss of six months of interest for one- to three-year CDs and one year of interest for four- and five-year CDs.

Interest for Bread Savings CDs is compounded daily and credited on a monthly basis.

Like most banks and credit unions on our list, this company offers a 10-day grace period once its term matures. During this grace period, you can cash out your certificate of deposit, renew it or change your term.

Bread Savings also offers a high-yield savings account.

Quontic Bank

Best for 6-month CD rates

5 out of 5 Overall

Key Features

Above average 6-month CD rate
Easy to open
Online tools

Quantic Bank offers CDs with term lengths ranging from six months to five years. Its six month interest rate is above average compared to other online banks and credit unions, which can make these CDs a good way to save for short-term goals. Its opening minimum balance of $500 is competitive with other big names in the industry, including Goldman Sachs.

Quontic Bank

Annual Percentage Yield (APY)

0.95%-2.3%

Term Length

6 months to 5 years

Minimum Deposit

$500

Additional Details

Quontic Bank offers everything you’d expect from a highly-rated online bank: competitive CD rates, innovative online tools and a user-friendly mobile app.

Quontic Bank really shines for its six-month CD rates: 0.95% APY as of May 25, 2022 — above average compared to other banks and credit unions.

In total, the company offers five different bank CD term lengths, from six months to five years.

Once a bank CD matures, Quontic gives you a 10-day grace period to withdraw funds. Otherwise, the online CD automatically renews. Early withdrawal penalties vary by CD term.

Quontic Bank offers a range of other financial products, including online savings accounts, checking accounts and money market accounts.

What Are CD Rates?

A CD’s rate is how much interest you’ll earn on your initial deposit. A CD rate is expressed as an annual percentage yield (APY).

CDs earn higher interest rates than traditional savings accounts, and may earn more than a high-yield savings account.

Online banks and credit unions tend to offer the best CD rates.

Most CD rates are fixed: They won’t go up or down after you open your account.

That can be great if you lock in a high rate because the bank can’t give you a lower rate down the road.

On the other hand, a fixed rate can prevent you from earning more money on your deposit if rates later rise.

Credit unions tend to have higher interest rates than banks, so CD rates will likely be higher at those institutions. However, a credit union can restrict membership, so make sure to check eligibility requirements first.

The best CDs offer a competitive rate and APY. They also feature reasonable minimum deposit requirements and attractive compounding schedules.

Are CD Rates Increasing in 2022?

CD rates are increasing as the Federal Reserve embarks on a series of interest rate hikes to fight inflation. These federal actions are likely to result in the best CD interest rates we’ve seen in years.

One-year online CD rates averaged 0.74% nationwide in April 2022, up from a low of 0.44% in 2021, according to Barron’s. The national average for five-year online bank CD rates hit 1.23% in April 2022 compared to 0.65% in 2021.

But before you rush to buy a CD, keep this in mind: Interest rates will likely be higher a year from now. It might make sense to wait for higher CD rates before locking your money up for a year or more.

Or look for a bump-up or step-up CD that lets you take advantage of higher interest rates down the road.

Banks and credit unions are always adjusting CD rates, so it’s important to shop around to find the best APY.

What Are The Different Types Of CDs?

Most CDs offer a fixed rate for a fixed duration — but that’s not always the case.

Here are a few specialty CDs with unique terms.

No-Penalty CDs

These CDs — sometimes called liquid CDs — give you access to your money without an early withdrawal penalty. The catch? Terms usually require a higher opening deposit and earn a lower APY.

Most financial institutions still impose some restrictions on no-penalty CDs. For example, you may not be able to withdraw money from a liquid CD penalty-free for at least a week after you open the account.

Bump-Up CDs

With this CD, you can request a rate increase if interest rates rise during the CD term.

For example, if you bought a 5-year CD, and after two years the bank or credit union increases the rate offered on that product, you can opt into that higher rate for the remaining three years of your term.

You’ll likely earn a lower rate and need to put down a larger opening deposit. Most financial institutions with bump-up CDs limit you to one or two rate increases per term.

Step-Up CDs

These CDs include predictable rate increases at specified times throughout the term of the CD.

Unlike a bump-up CD, the bank automatically increases your APY to the new, higher rate so you don’t need to ask the bank to let you opt into the higher rate.

Jumbo CDs

Jumbo CDs carry a high minimum balance requirement (think $100,000 and up).

Surprisingly, you might not earn much more interest with a jumbo CD than you would with a traditional CD.

Frequently Asked Questions

Are CDs Safe?

CDs are considered a low-risk investment.

You’re guaranteed a specific fixed rate of return, so you assume less risk by placing your money in an FDIC-insured CD or NCUA-insured certificate.

In this way, a CD is as safe as any other FDIC-insured account, like a money market account or a savings account.

Do CDs Have Fees?

Most CDs have no monthly fees or ongoing costs.

However, taking money out of your CD before the maturity date usually results in an early withdrawal penalty.

Early withdrawal penalties vary based on the term of your online CD, but they typically equal the loss of 60 to 365 days worth of accrued interest earnings.

Do You Pay Taxes on CDs?

The amount you pay to buy a CD generally is not taxable, even when you cash it in. However, you will be responsible for paying taxes on any interest you earned from the CD before it matured. This interest must be reported to the IRS as taxable income.

According to the IRS, interest is taxable in the year it is paid.

If your CD earns more than $10 of interest in a year, the bank or credit union should send you a 1099-INT statement. You can see how much interest you earned that year in box 1.

What Is an IRA CD?

An IRA CD is simply an individual retirement account full of certificates of deposit. Many banks and credit unions offer IRA CDs.

You get the tax-advantages of an IRA along with the fixed term and rate of a certificate of deposit.

Some people choose to invest part of their retirement savings in an IRA CD to provide stable, dependable income in their portfolio.

What is a CD Ladder?

A CD ladder is a savings strategy where you stagger certificates of deposit with different maturity dates. It can help you take advantage of higher rates on longer-term CDs while still keeping some liquidity short-term.

Here’s an example of a CD ladder.

You split your deposit into fifths and spread it across multiple CDs: a one-year, two-year, three-year, four-year and five-year CD.

When the one-year CD matures, you can pocket the interest and invest the initial amount in a five-year CD. You can do the same when the two-year CD matures a year later. Eventually, you will have five five-year certificates of deposit so one CD matures each year.

This helps make your money more accessible while still achieving the overall higher interest rate of a five-year CD versus a one-year CD.

Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.

Source: thepennyhoarder.com

June 3, 2022

4 Monthly Bills You Shouldnât Pay Next Month

You’ve done what you can to cut back your spending. Here’s the thing: your current car insurance company is probably overcharging you. But don’t waste your time hopping around to different insurance companies looking for a better deal. Source: thepennyhoarder.com Fiona can help you borrow up to 0,000 (no collateral needed) with fixed rates starting at 2.49%.

1. Cancel Your Car Insurance

But no matter how cognizant you are of your spending habits, you’re still stuck with those inescapable monthly bills. You know which ones we’re talking about: rent, utilities, cell phone bill, insurance, groceries… Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it. Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.

2. Ask This Company to Help Pay Off Your Credit Cards

If you’re a homeowner, you probably have home insurance, but you hardly ever think about it. That’s good — it means you haven’t needed to use it. But it also means you don’t know if you’re being overcharged for it. Homeowners can save hundreds of dollars when they switch home insurance companies this way. ReFiJet will show you multiple auto loans that you’re pre-qualified for, along with rate and payment estimates. You can see for yourself how much you could save. This is done with a soft credit check that won’t affect your credit. So if you’re ready to stop paying them, follow these moves… Get the Penny Hoarder Daily Ready to stop worrying about money?

3. Get Rid of Your Current Car Payment

What if you could lower your monthly payment by 0 or so? A company called ReFiJet will refinance your auto loan to help you save money — and as a bonus, you won’t have to pay for the first two months. It can lower your monthly payment and potentially save you thousands of dollars by the time you pay off your loan. It’s easy to find out, though. To see if you’re overpaying for your policy, check out a website called SmartFinancial. It’s a digital marketplace where you can get quotes and compare rates to make sure you’re getting the best price. You brew coffee at home, you don’t walk into Target and you refuse to order avocado toast. (Can you sense my millennial sarcasm there?) While you’re stressing out over your debt, your credit card company is getting rich off those insane interest rates. But a website called Fiona could help you pay off that bill as soon as tomorrow.

4. Find Out if You’re Overpaying for Homeowners Insurance

If it’s been more than six months since your last car insurance quote, you should look again. Privacy Policy No, like… the whole bill. All of it. If it’s been more than six months since your last car insurance quote, you should look again. <!– –>
Use a website called EverQuote to see all your options at once.

June 3, 2022

These 3 Companies Help Regular People Borrow up to $250,000

So, you have thousands of dollars in credit card debt, and the burden of paying off all that — and interest — is gobbling up your income.

Instead of financially treading water making minimum payments and paying maximum interest, make the smart move, and take out a debt consolidation loan. It’s a personal loan, usually at a lower interest rate that you can use to pay off your high-interest credit cards.

In the long term, you can save a ton of money, but first you have to shop around for a loan.

Sound difficult? It doesn’t have to be. Instead of spending hours scouring the internet, you can go window-shopping at an online marketplace that’ll help pinpoint the best loan for you.

We recommend you try more than one site and see what kind of results you get. Heck, try them all if you want. It won’t take long, and you have nothing to lose: Seeing your options won’t cost you anything, and it won’t hurt your credit score.

1. This Company Will Lend You Up to $250,000

While you’re stressing out over your debt, your credit card company is getting rich off those insane interest rates. But a website called Fiona could help you pay off that bill as soon as tomorrow.

Here’s how it works: Fiona can match you with a low-interest loan you can use to pay off every credit card balance you have. The benefit? You’re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster.

Fiona can help you borrow up to $250,000 (no collateral needed) with fixed rates starting at 2.49% and terms from 6 to 144 months.

Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free t0 check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.

All that credit card debt — and the anxiety that comes with it — could be gone by tomorrow.

2. This Company Has an A+ With the Better Business Bureau

If you owe your credit card companies $50,000 or less, AmOne will match you with a low-interest loan you can use to pay off all of your balances.

AmOne rates start at 3.99% APR, and it keeps your information confidential and secure. After 20 years in business, it still has an A+ rating with the Better Business Bureau.

It takes two minutes to see if you qualify for up to $50,000 online. You do need to give AmOne a real phone number in order to qualify, but don’t worry — they won’t spam you with phone calls.

3. This Company Will Let You Skip Your Credit Card Payments This Month

No, like… the whole bill. All of it. All that debt racked up from the 300 destination weddings your friends made you attend (thanks!) could be paid by the end of this month.

Your credit card company is ripping you off with insane rates, and it’s getting rich off of you. But there are other, nicer companies that’ll help you out. A website called Credible knows the best ones and could pair you up as soon as tomorrow.

Here’s how it works: Credible will match you with a loan that’ll cover your credit card tab. Use that loan to pay off your debt, then make monthly payments to repay the loan. It could lower your monthly payments and help you pay off that debt a lot faster. Plus, no credit card payment this month.

Credible won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.

Now you can finally stop holding a grudge against that friend who thought a Mexico wedding was a good idea.

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Source: thepennyhoarder.com

June 1, 2022

4 Companies To Ask For Money When You Canât Pay Your Bills

And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates — some up to 36%. But a website called AmOne wants to help. Ready to stop worrying about money? There’s a free app called Solitaire Cash that pays you up to every time you win.

1. Ask This Website to Help Pay Your Credit Card Bill This Month

Lots of us already play Solitaire on our phones for fun or just to pass the time. Want to see if you can win money at it?
*Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC. You might be thinking: There’s got to be a catch. This is definitely one of those spammy apps, right? Yep. Just sign up for a free Chime checking account and set up a qualifying 0 monthly direct deposit to take advantage of this face-saving tool. You’ll also get access to other sweet features, like getting paid up to two days² earlier with direct deposit, help automatically growing your savings and access to more than 60,000 fee-free³ ATMs. Signing up takes just a few minutes. You’ll need your Social Security number handy — but don’t worry, your information is protected by bank-level security, FDIC insurance and two-factor authentication. Wrong. There really isn’t a catch. And, in fact, there aren’t even any annoying ads.

2. Get Paid to Play Bingo

To get started, just download the free app and start playing your first game immediately. You don’t need a perfect credit score to get a loan — and comparing your options won’t affect your score at all. Plus, AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau. Over on the App Store, it has a 4.7-star rating (out of 5). Ask one of these companies to help….

3. Let This App Spot You Money

There’s a free iPhone app called Bingo Cash that pays you up to every time you win bingo. That’s money that can go right towards your debt! If you owe your credit card companies ,000 or less, AmOne will match you with a low-interest loan you can use to pay off every single one of your balances. Privacy Policy To get started, just download the free app and start playing your first game immediately.

4. Let This App Pay up to $83 When You Win Solitaire

²Round Ups automatically round up debit card purchases to the nearest dollar and transfers the round up from your Chime Spending Account to into your savings account. Save When I Get Paid automatically transfers 10% of your direct deposits of 0 or more into your savings account. The game is based on a classic Bingo format — plus tons of variations on the game. You’ll battle it out against other players at your same skill level. Everyone gets the same board and sees the same Bingo balls, so winning is totally a matter of skill. The top three players in a game can win real money — anywhere from to . Over on the App Store, it has over a million downloads and more than 15,000 ratings, averaging 4.7 stars (out of 5). ¹According to a GOBankingRates savings survey If you have credit card debt, you know. The anxiety, the interest rates, the fear you’re never going to escape… But what if your car breaks down, or you have a sudden medical bill? When you log into your bank account, how do your savings look? Probably not as good as you’d like. It always seems like an uphill battle to build (and keep) a decent amount in savings. It’s happened to all of us at some point — the dreaded overdraft. It’s not only embarrassing if your card gets declined at the grocery store over a few bucks, but the fees that come with it only put you further into a hole. Double yikes. Source: thepennyhoarder.com But a banking app called Chime wants to protect you from both of those problems with its SpotMe® feature¹. It’s a fee-free overdraft protection that lets you overdraft up to 0 (for eligible members) without consequences. <!– –>
With each game, you’ll battle it out against at least five other players. Everyone gets the same deck, so winning is totally a matter of skill. The top three players who solve the deck fastest can win real money — anywhere from to .

May 25, 2022

The 8 Biggest Money Secrets Most Rich People Wonât Tell You

Life would be a whole lot easier if someone would just Venmo us $1 million, but unfortunately the chance of that happening is, well, probably zero. (Venmo doesn’t allow transactions that large anyway.)

But even though our chances of becoming a millionaire are slim, we can still manage our money like one. No, we’re not going to tell you how to buy hundreds of shares of Apple stock. Or how to pick out the perfect yacht.

These are simple money moves any normal, non-millionaire person can make today. Each secret can get you closer to achieving your big goals.

Take a look:

1. You Can Invest in Fine Art (Even if You’re Not a Millionaire)

You might be thinking you need at least a few more zeros in your checking account before you can even start thinking about investing in art. Warhol? Monet? Banksy? Yeah right. You just managed to finally put away $1,000. Those guys are way out of your league, right?

Wrong. You could still get started with what you’ve got. Seriously.

A company called Masterworks is helping us average folk invest in multimillion-dollar paintings — traditionally one of the most lucrative investment options that’s only available to the super rich. But you don’t need hundreds of thousands of dollars to buy a masterpiece outright; with Masterworks, you can buy shares, instead.

Here’s why it’s a good option: Fine art is super valuable, so it can potentially earn you more money than the stock market. Over the long term, the stock market will earn you an average annual return of 7%, but Masterworks lets you invest in art that’s historically seen a 10% to 25% price appreciation.

This is a long-term strategy, so patience pays off here — literally. But once your piece of art sells, you get your cut of the profits.

It takes less than a minute to request an invitation, and you could become a Masterworks member by the end of the day.

2. You Can Get Free Stock From This Company

Imagine if you had bought one share of Amazon for $18 when the stock first went public. Today, it would be worth more than $20,000 — despite all the ups and downs in the stock market.

Here’s the thing about millionaires: They know the sooner you start investing, the better. And we found a company that will give you free stock to get started.

An investing app called Robinhood will give you free stock in well-known companies just for downloading its app and opening a free account.

Robinhood is free and easy to navigate, which is why more than 10 million people use it — including both news junkies looking to outsmart the market and people who want to carefully put a few bucks away in a long-term investment.

It takes just a couple of minutes to sign up and get your free stock — you may even just get a share of the next big thing.

3. You Can Cancel Your Car Insurance

Did you know you can save some serious money just by switching car insurance companies?

Its true — rates are at historic lows, and you could be paying way less for the same coverage. All you need to do is look for it.

But don’t waste your time hopping around to different insurance companies. Use a website called EverQuote to see all your options at once.

EverQuote is the largest online marketplace for insurance in the US, so you’ll get the top options from more than 175 different carriers handed right to you.

Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you the top recommendations for car insurance. In just a few minutes, you could save up to $610 a year.

4. You Can Give Your Family $1M

This is one of those occasions when spending a little bit of money each month can pay off later.

Have you thought about how your family would manage without your income after you’re gone? How they’ll pay the bills? Send the kids through school? Now’s a good time to start planning for the future by looking into a term life insurance policy.

You’re probably thinking: I don’t have the time or money for that. But your application can take minutes — and you could leave your family up to $1 million with a company called Bestow.

Rates start at just $16 a month. The peace of mind knowing your family is taken care of is priceless.

If you’re under the age of 54 and want to get a fast life insurance quote without a medical exam or even getting up from the couch, get a free quote from Bestow.

5. You Can Stop Paying Your Credit Card Company

If you have credit card debt, you know. The anxiety, the interest rates, the fear you’re never going to escape…

And the truth is, your credit card company doesn’t really care. It’s just getting rich by ripping you off with high interest rates — some up to 36%. But a website called Fiona could help you pay off that bill as soon as tomorrow.

If your credit score is at least 620, Fiona can help you borrow up to $250,000 (no collateral needed) with fixed rates starting at 2.49% and terms from 6 to 144 months.

Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.

All that credit card debt — and the anxiety that comes with it — could be gone by tomorrow.

6. See if You Could Lower Your Car Payment by Hundreds a Year

You know you can refinance your house to save money on your monthly mortgage payment — but did you know you can refinance your car, too?

It’s not a money-saving tactic people talk a lot about, but it could save you a ton of money. A website called Upstart is helping borrowers save an average of $1,025 a year on their car payments. That’s about $4,800 back in their pockets over the lifetime of their loan.

There are no origination fees, and you only need a minimum FICO score of 510. You don’t even need to enter your car’s VIN, and you won’t get any spam calls.

And with an APR range of 2.20% to 29.99% Upstart is saving customers over 17% per month when they refinance. Upstart has helped borrowers save more than $20 million on their car payments in the past year alone*.

Ready to start saving? It takes just minutes to check your rate and see how much you could save.

7. You Can Invest in Hotels — Even if You’re Not Rich

What do you think of when you think of hotel investors? Probably the Monopoly Man, with his top hat, bow tie and mustache. And there’s a good reason the classic board game focuses on buying hotels — it’s a classic investment strategy for the ultra wealthy.

But there’s no reason you can’t invest in hotels, too — even if you’re not rich.

A company called Yieldstreet lets you get started in the world of real estate by giving you access to private commercial and residential real estate deals in key markets. The best part? You don’t have to be the landlord. Yieldstreet does all the heavy lifting.

Normally this is something only available to the super wealthy, but now you can have access to investment opportunities like luxury apartments in Nashville, multi-family property in Dallas — and yes, even a resort-style hotel in Scottsdale, Arizona.

Private real estate has outperformed the average S&P 500 return for the last 25 years, with average annualized returns of 10.3%. And Yieldstreet has a stringent vetting process to decide what properties to invest in to minimize any surprises.

Once invested, you can track your performance on Yieldstreet’s website, and watch as properties are acquired, improved and operated. You could earn money through quarterly dividend payments, and over time, you could earn money off the potential appreciation of the property.

So if you want to get started in the world of real-estate investing, it takes just a few minutes to sign up and create an account with Yieldstreet.

8. Let This Company Cut Your Mortgage Payment

Things have changed since you bought your home. Maybe interest rates are lower right now, or maybe you want to cash out some of the equity you’ve built up since home prices have surged. Either way, you might’ve considered refinancing. But the whole thing can feel overwhelming.

Luckily, a company called loanDepot helps you refinance without all the unnecessary stress.

As one of the biggest non-bank lenders in the U.S., loanDepot combines a digital approach with a traditional in-person customer service — and it could save you big time.

It’s easy to upload all your necessary documents online — basically, they need to know who you are and other qualifying requirements.

Whether you want to refinance your mortgage to lower your monthly payment* or pull cash out of your home’s equity with cash-out refinance, loanDepot makes it easier to check your rate and get approved quickly.

Plus, they’re accredited by the Better Business Bureau with an A+ rating and are the fifth-largest mortgage lender in the country, working with 27,000 clients a month.

It takes just a few minutes to get started and see how much money you could save on your mortgage.

*Monifi: Terms and conditions apply

**subject to approval

*Upstart: Car refinance loans not available in IA, MD, NV, or WV. Car refinance loans in IL and MO are originated by Cross River Bank or Midwest BankCentre. Car refinance loans in CO, KS, and TX are originated by Cross River Bank or Rising Bank, Member FDIC. Car refinance loans in FL, GA, and AL are originated by Cross River Bank or Drummond Bank, Member FDIC. All other car refinance loans are originated by Cross River Bank, Member FDIC.

The full range of available rates varies by state. The average 5-year loan offered on Upstart will have an APR of 9.91% and 60 monthly payments of $426 per $20,000 borrowed. For example, the total cost of a $20,000 loan would be $25,540. APR is calculated based on 5-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

This information is estimated based on all consumers who were approved for an auto loan through Upstart and accepted their final terms. As of 2/1/2022 the average monthly savings amount is 17%. To evaluate savings on a loan you are considering refinancing, it is important to compare your APR and remaining term from your existing automotive loan to the APR and term offered by Upstart.

*loanDepot: By refinancing the existing loan, the total finance charges may be higher over the life of the loan.

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Source: thepennyhoarder.com

May 24, 2022

8 Money Moves to Make Today for People in One-Income Households

On a single income, you have to watch every penny. Wouldn’t it be nice if you got an alert any time you’re shopping on Amazon or Walmart.com and you’re about to get ripped off? You’re probably thinking: I don’t have the time or money for that. But this takes just minutes — and you could leave your family up to million with a company called Bestow. The tens of millions of jobs lost to the COVID-19 pandemic have left millions of families surviving as one-income households for the first time. That’s a really hard thing to do these days, especially if you’re not used to it. In the last year, this has saved people 0 million.

1. Cut Your Food Budget by Planning Ahead

It takes just minutes to get a free quote and see how much life insurance you can leave your loved ones — even if you don’t have seven figures in your bank account. You just have to answer honestly, and InboxDollars will continue to pay you every month. This might sound too good to be true, but it’s already paid its users more than million. Groceries are a huge part of everyone’s budget, so they’re a big target for savings. Try preparing for the week ahead with some meal planning. But a free app called Fetch Rewards will relieve some of that wallet-draining frustration by rewarding you with gift cards just for buying gas (and more than 250 other items at the store).

2. Get Paid Every Time You Buy Toilet Paper

*For a 0K policy, subject to eligibility. Let’s say you’re shopping for a new pair of shoes, and you assume you’ve found the best price. Here’s when you’ll get a pop up letting you know if that exact pair of shoes is available elsewhere for cheaper. If there are any available coupon codes, they’ll also automatically be applied to your order.* And research companies want to pay you to keep watching. You could add up to 5 a month to your pocket by signing up for a free account with InboxDollars. They’ll present you with short news clips to choose from every day, then ask you a few questions about them. Oh, to be a millionaire. Look, not all of us have the money to set up trust funds for our loved ones. But you could still leave them up to million in life insurance — and you don’t even need to have the money in the bank. Get the Penny Hoarder Daily

3. Stop Overpaying for Stuff Online

Privacy Policy Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you the top recommendations for car insurance. In just a few minutes, you could save up to 0 a year. Now figure out how much food you’ll need to buy to make it until your next grocery trip. If you buy the same items repeatedly, you know which ones to stock up on when they go on sale. Stocking up on sale items also helps you freeze meals for the future. If there’s a way to buy in bulk and prep the foods you eat the most often, do it! EverQuote is the largest online marketplace for insurance in the US, so you’ll get the top options from more than 175 different carriers handed right to you. Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it. Here’s how it works: After you’ve downloaded the app, just take a picture of your receipt showing you purchased an item from one of the brands listed in Fetch. For your efforts, you’ll earn gift cards to places like Amazon or Walmart.

4. Get Paid Every Time You Fill Up Your Tank

*Capital One Shopping compensates us when you get the extension using the links provided.
No, like… the whole bill. All of it.
Just add it to your browser for free, and before you check out, it’ll check other websites, including Walmart, eBay and others to see if your item is available for cheaper. Plus, you can get coupon codes, set up price-drop alerts and even see the item’s price history.
Here’s how it works: Fiona can match you with a low-interest loan you can use to pay off every credit card balance you have. The benefit? You’re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster. Plus, no credit card payment this month.

5. Cancel Your Car Insurance

While you’re stressing out over your debt, your credit card company is getting rich off those insane interest rates. But a website called Fiona could help you pay off that bill as soon as tomorrow.
Living in a one-income household is just a little bit easier when you can add even just a little bit more income. For example:
That’s exactly what this free service does.
Living in a one-income household is like being a gymnast walking on a balance beam. You have absolutely no margin for error, and the slightest misstep can spell disaster.

6. Ask This Website to Help Pay Your Credit Card Bill This Month

Ready to stop worrying about money?
Use a website called EverQuote to see all your options at once.
This goes beyond just making a shopping list. Real meal planning helps you save money because it helps you use what you buy, preventing food — and money — waste. It also prevents you from spending extra cash on emergency lunches or late-night takeout.
No matter how strategic you are, groceries still account for a good chunk of your budget. Everybody’s got to eat. You may as well earn a little money back while your groceries are being bagged up.
You can download the free Fetch Rewards app here to start getting free gift cards.
A free app called Fetch Rewards will reward you with gift cards just for buying toilet paper and more than 250 other items at the grocery store.

7. Add $225 to Your Wallet Just for Watching the News

First, figure out how many meals you’re responsible for making every week. If it’s just you, your answer might be 21: seven breakfasts, lunches and dinners. If you have a family, count meals per person — a dinner for three people counts as three dinners, even if you all eat the same thing. It’s been a historic time for news, and we’re all constantly refreshing for the latest updates. You probably know more than one news-junkie who fancies themselves an expert in respiratory illness or a political mastermind. Here’s how it works: After you’ve downloaded the app, just take a picture of your receipt showing you purchased gas from one of the stations listed in Fetch. You’ll earn 25 points for each purchase, which can be redeemed for a Visa gift card and can help you pay for your next tank. The cost of essential purchases, like groceries and rent keeps going up, making it harder than ever for families to get by on a single income. Having to fill up your gas tank these days is downright painful. Prices for a gallon of regular unleaded top in some states and it doesn’t look like there’s relief coming any time soon.

8. Leave Your Family up to $1M

Over a million people already have, so they must be onto something.
If your credit score is at least 620, Fiona can help you borrow up to 0,000 (no collateral needed) with fixed rates starting at 2.49% and terms from 6 to 144 months.
You can download the free Fetch Rewards app here to start getting free gift cards. Over 13 million people already have, so they must be onto something…
We hear people are paying as little as a month. (But every year you wait, this gets more expensive.)
Here’s the thing: your current car insurance company is probably overcharging you. But don’t waste your time hopping around to different insurance companies looking for a better deal. Does all this sound familiar? If you’re in this position, we’ve got a list of money moves you can start making today:
Source: thepennyhoarder.com <!–

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It takes about one minute to sign up, and start getting paid to watch the news.

May 24, 2022

What Does It Mean to Be House Poor?

If you’re an existing homeowner or an aspiring one, you may have heard the phrase “house poor,” typically uttered by an overextended borrower.

It may also serve as a warning to a first-time home buyer from a seasoned homeowner, especially right now with home prices so high.

The Definition of House Poor

Buying too much house for your budget
Even if you technically make enough money to afford it
Because a substantial portion of your paycheck goes toward the mortgage each month
And other monthly housing expenses like utilities, maintenance, repairs, etc.

First, let’s define what it means to be house poor. At first glance, it might sound like someone who lives in a small or meager dwelling, but this isn’t the case.

It’s actually quite the opposite – someone who is house poor has likely bitten off more than they can chew, and is spending too much of their income on housing payments.

This means they could have purchased a McMansion and don’t have much left over for other recurring costs, or even everyday expenses.

It could also mean that they took out a mortgage that was too large for their salary, even if the property is more modest.

It’s really dictated by a borrower’s ability to make housing payments each month, not necessarily the grandeur of the home, as budgets will vary by financial situation.

For example, a really wealthy individual could buy a multi-million dollar home, but struggle to make mortgage payments because their lifestyle is too extravagant.

At the same time, someone making less the national median household income could buy a much cheaper home, but still be house poor.

In other words, both rich and less rich people can be house poor, assuming they bought a property out of their price range and can’t handle the related housing expense.

Know Your Price Range

price vs budget

It’s important to know your price range, so to speak, when setting out to buy real estate.

This isn’t a guessing game, but rather a fine science that requires mortgage calculators and a mortgage pre-approval to determine affordability, appropriate loan size, loan type, down payment, and so on.

What I see all too often is a prospective homeowner going out of their price range to purchase a home they just must have.

Often, it starts innocently enough, but before long, curiosity gets the best of them and they slide that maximum price button higher in their favorite real estate app.

Nowadays, this can also be the result of a bidding war, where the list price was in budget, but the actual offer price creeps higher thanks to competition from other buyers.

This is one reason why I made the suggestion to adjust your maximum purchase price lower in anticipation of an over-list bid.

Chances are if you can afford a $400,000 home, you might want to set it to $350,000 knowing it’ll go over asking.

Those Hidden Costs…

Remember all the many, many costs of homeownership
Not just the mortgage payment but the homeowners insurance and property taxes
Along with utilities (water, gas, electric, trash, etc.) and maintenance like gardening, pool service, house cleaning
Not to mention any potential repairs that will come up along the way

Unfortunately, a lot of future home buyers don’t factor in all the hidden costs of homeownership, and even the not-so-hidden costs, which just exacerbates the issue.

If you’ve never owned your own home before, you might be in for a rude awakening. Do you recall your mom and dad telling you to take shorter showers, or to close the fridge door, or to turn off the lights!

There was a reason for that – all of those actions result in higher utility costs, which can be really expensive, even if you’re super conservative.

You may get bonus points for looking beyond the principal and interest mortgage payment by considering property taxes and homeowners insurance (PITI!).

But what about the water bill, trash pickup, gardening, heating and cooling, and regular home maintenance?

If you were previously renting, your landlord may have covered some of those bills, and anything that broke probably wasn’t your responsibility. Not so when you own the property.

This illustrates the danger in going outside budget, which is sadly pretty common. It’s one of the tenets of personal finance that is constantly broken.

Zillow studied this back in 2016 and found that a third of home buyers exceeded their initial budget, with 39% of first-time home buyers guilty of doing this.

You can also see from the chart above that Millennials (sorry, it’s always this group) were the most likely to go over budget.

The scariest part about this group is that they’re probably the most likely to have children, which will add a lot more living expenses (health insurance, schooling, etc.) beyond their current situation. All the more reason to take baby steps when buying a house…

The takeaway is that one can become house poor in a variety of ways, whether it’s deciding to pay more than originally planned, or for failure to factor in all the costs of homeownership.

In fact, a homeowner could get hit twice, by going over budget home price-wise and not budgeting for these costs. This can spell big trouble down the road.

For the record, home prices and mortgage rates have only gone up since 2016, so my assumption is the number of home buyers going over budget has just worsened.

How to Avoid Being House Poor

Stay within your initial budget!
Or even set your maximum purchase price lower than what you can afford
Get a pre-approval but leave a buffer beyond it
Consider the entire mortgage payment (PITI)
Factor in all utility costs
Set aside money for home maintenance and unexpected repairs
Be sure you have money left over to make other investments
An emergency fund is also key (in case you lose your job)

First things first, what you can afford according to lender guidelines and maximum debt-to-income ratios (DTI) isn’t necessarily what you should spend on a home and a mortgage.

It’s possible to get a mortgage with a very high DTI ratio, but it’s an imperfect calculation that doesn’t always factor in the intangibles, nor actual takehome pay.

There are plenty of recurring costs that don’t show up on a credit report, and minimum credit card payments can fluctuate greatly depending on outstanding balances over time.

There’s a good chance your credit card debt will increase once your housing expense rises, making it more difficult to replenish your emergency fund or save for retirement.

Additionally, a lot of mortgage calculators aren’t very accurate, and tend to underestimate things like property taxes and homeowners insurance. It might be in your best interest to overestimate those costs.

Same goes for mortgage rates – the loan calculator might default to a best-case interest rate that you don’t necessarily qualify for. Again, overestimate when determining how much house you can afford.

Sure, get the mortgage pre-approval to see what you can technically qualify for, but don’t necessarily buy a house that expensive.

Perhaps leave a buffer for items that aren’t covered in that calculation, like the utilities and the unanticipated home repairs that can eat into your monthly budget.

Home Inspections Are Key to Discover Costly Repairs

A home inspection is a must when you purchase a home unless you’re a licensed contractor
It helps uncover most major/minor problems and potential issues with the property
You may need to conduct multiple inspections for things like chimneys, pool/spa, roof, etc.
Unfortunately some home buyers are waiving inspections to make their offers more competitive

Speaking of repairs, make sure you conduct a thorough home inspection when you go under contract to better anticipate any future repair costs.

It may also be possible to obtain seller credits before you move in to compensate for any issues found during the inspection.

For example, determine if the roof and/or HVAC system looks like it’ll need to be replaced sooner rather than later, or if a remodel will likely be necessary in the not-too-distant future.

There’s a reason condo associations charge monthly HOA dues – they know these costs will come up eventually, and budget accordingly.

Most homeowners in single-family homes aren’t required to set aside money each month, but will likely face the same issues.

It can be pretty dangerous if no money is put aside in a savings account to manage these events.

A home warranty can also be helpful during the first year or two to cover any unexpected breakdowns, and the seller might even pay for it.

Also consider your future, aka your retirement. Make sure you have money left over to fill your 401k or IRA, even if you do plan to use your home as a nest egg one day. Home selling costs are also greatly underestimated.

Diversification is good, and as you may recall from the massive housing crash seen about a decade ago, home prices can go both up and down.

Lastly, don’t make positive assumptions, like you’ll be making more money in the future, because it may not pan out. What is certain is that your mortgage payments will keep coming, as will the many other bills that accompany homeownership.

If you want to keep your home long-term, and also enjoy other things outside of it, budget accordingly. This can lessen your chances of becoming house poor, even if things do take an unexpected turn.

Source: thetruthaboutmortgage.com

May 18, 2022

Dear Penny: We Have Bad Credit. Is There Any Hope for a Debt Consolidation Loan?

Dear Penny,

We have credit scores in the 500s, and we are being declined for loans to consolidate our debt to improve our credit.

We understand the importance of improving our credit scores and are frustrated that the debt consolidation we have been advised to apply for is not working out — no approvals. Who can we turn to for a loan?

-D.

Dear D.,

When you have a smorgasbord of debts, life feels like a juggling act. So many due dates, so many interest rates, so many terms and conditions to keep track of.

Then you see the claims in the ads for debt collection loans. Get rid of high-interest credit card debt today! One low monthly payment!

It sounds like a magic little pill that will cure all your financial ailments, right? If only it were that simple.

Unfortunately — as you’ve learned — the people who could benefit most from a debt consolidation loan often don’t qualify. Most lenders require a credit score of at least 620.

You could try applying through a credit union, though membership is required. Unlike big banks, credit unions tend to look beyond your credit score at your overall financial health when you’re seeking a loan.

You can also use websites like Credible, Even Financial or Fiona to shop around for loans. (No, none of them paid me to say that.) But keep in mind that many of the lenders these sites partner with will also require a credit score in the 600s.

While you might be able to consolidate with a lower credit score, you’ll often pay astronomical interest rates — sometimes as much as 30% — which kind of makes the cure as bad as the disease.

But here’s the thing about debt consolidation: Often the benefit is more psychological than mathematical. Sure, life would be a lot simpler with a single monthly payment, but if you can’t lock in a lower interest rate, debt consolidation won’t save you money.

You say you want to consolidate to improve your credit score. If you have enough money to make at least your minimum payments, you’ll gradually see your score increase as you make on-time payments and lower the percentage of your credit you’re using.

Consider speaking with a credit counselor, especially if you can’t afford your minimum payments. The world of debt relief is rife with scammers, so make sure any counselor or organization you work with is a nonprofit that’s accredited by the National Foundation for Credit Counseling.

A credit counselor will help you figure out how to manage your money and debts. The counselor may work out a debt management plan where you make a single payment each month to the counseling organization, which will pay your debts on your behalf. They might be able to lower your monthly payments by negotiating lower interest rates or a longer repayment period, though they generally won’t be able to reduce what you owe.

Avoid companies that offer to work out a debt settlement plan, in which you’ll stop making payments so the company can negotiate to reduce your debt. Not only will these plans kill your credit, but you’ll also owe taxes on the amount that’s forgiven.

It’s easy to get discouraged when you’re deep in debt and low on options for rebuilding your credit. But keep in mind that while a debt consolidation loan might improve your credit somewhat in the short term, it won’t fix the underlying causes of your debt.

Building good credit doesn’t happen quickly. You have to figure out a way not to rely on credit, and to spend less than you make. It requires discipline and a commitment to financial health. And there’s no magic pill for that.

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

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Source: thepennyhoarder.com

May 16, 2022

The Tally App Will Help You Pay Off Your Credit Cards

¹Can save ,185 in 5 years with Tally+ – We calculated the savings estimates in March, 2021 based on Tally’s records for borrowers who enrolled in Tally from November 2018 through October 2020. We calculated the interest users would pay if they had received and accepted a Tally+ line of credit and compared that to the interest they would pay without Tally until their credit card balances are fully repaid. For each borrower we used: (a) their average APR weighted by their initial credit card balances and APRs; (b) an average monthly payment of 3% of their credit card balance(s); (c) average monthly credit card transactions of 0.8% of their credit card balance(s). We assumed the borrower received Tally+ discount credit every month and we deducted annual fees from any potential savings. Actual savings will vary based on factors such as each user’s credit card APRs, the total payments made, and additional credit card charges. Lines of credit issued by Cross River Bank, Member FDIC, or by Tally Technologies, Inc. (“Tally”), NMLS #1492782 (http://nmlsconsumeraccess.org); see your line of credit agreement. Lines of credit not available in all states. The APRs on Tally’s credit lines range from 7.9% to 29.99%, depending on your credit history. Credit card debt is like a money-grubbing evil spirit that never goes away and drains your bank account dry. Choose from Tally Basic or Tally+, whichever is right for you. If you’ve got credit card debt weighing on you, it’s easy to see how much money you’d save this way. Ready to stop worrying about money?

No Waiting on Approval

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. In the app stores, this app is labeled “Tally: Fast Credit Card Payoff,” and it’s called that for a reason: It’s really fast. If you are eligible, (you generally need a FICO score of 580 or higher) , you can get a line of credit pretty much immediately. There’s no waiting around, like if you’re waiting to see if a bank approves you for a personal loan. That can take days, or even a week. Tally quickly does a soft credit check that won’t affect your credit score. The average American family has four credit cards and more than ,000 of credit card debt, according to data from Experian and the Federal Reserve. That adds up to a lot of interest, which is how credit card companies make their money. Tally credit lines are available in every U.S. state except Maine, Montana, Nevada, Vermont, West Virginia and Wyoming. If you’re in this boat, you need to check out a mobile app called Tally. It pays off your high-interest credit cards by giving you a line of credit with a better interest rate. You consolidate all your credit card bills into one monthly payment, and you pay less interest.

Signing Up to Get Rid of Credit Card Debt

It’s the most expensive kind of debt you can have. First you start falling behind on your monthly payments. Next thing you know, they’re gouging you something fierce by charging you more than 20% interest on your balance. You end up paying so much interest that you can never pay off what you owe.

Download the app.
Open an account with your email address.
Apply for a credit line. You’ll be asked for basic info like your income and birthday.
Add your credit cards. Type in the info or scan your credit cards with your phone.
Say yes. Accept the offer and link your bank account.

Get the Penny Hoarder Daily If your new credit line can replace all your credit card debt at a better APR, then Tally will pay off all your cards. Instead of paying your credit cards, you’ll make a monthly payment to Tally instead. Depending on your credit history, your available line of credit will range from ,000 to ,000. You don’t pay interest on all that. You pay interest only on the amount of credit you use. There are even more benefits with the Tally+ membership. It costs per month or 0 per year, but you get a bigger credit line and a lower APR. Applying for Tally’s lower-interest credit line takes just minutes, depending on how many cards you have: That’s why the average Tally+ member saves ,185¹ over five years, according to Tally. Use Tally’s debt calculator to find out how much you could save and if Tally’s the smarter choice for you. You can operate everything through the mobile app, which is designed to be easy to use. Tally won’t charge you any late fees or balance transfer fees. If your new credit line can’t cover all your credit card debt, Tally will automatically pay off the highest-interest cards first, while making minimum monthly payments on the others. It’ll do your thinking for you. Depending on how much you owe, you could save hundreds or even thousands of dollars this way. You can also get out of debt faster. Source: thepennyhoarder.com <!– –>

Posted on May 15, 2022
Crushing Your Financial Goals Through Consistency and Transparency

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

Hersh, a production finance executive from Los Angeles shared with us his experience using Mint, and how it helped him to achieve his financial goals.

We love hearing about how people are leveraging the power of Mint to stay on top of their finances. Whether it’s acing your savings goals, or paying off your credit card debt, every win counts and we love celebrating those wins with you all.

Read on to learn about his #EmpowerMint story.

I downloaded Mint in 2012 and have since used it to review my finances on a monthly basis. However, I didn’t really properly start using it until 2018 when I decided to aggressively start paying off my grad student debt.

I had around $80K of $125K loans left at the time after paying down $45K in about 2 years. Knowing it would take some effort and massive action in paying off such a large sum within my new 5 year goal, I decided to use Mint’s budgeting and expense tracking features to make sure I was staying within my means and putting every extra dollar towards paying down my loan. I needed a platform where I could see all my credit card, bank, and investment accounts in one place, and Mint provided me with that and more.

I paid off $125K in student debt in a little over 3 years with Mint’s help because I was able to better manage my finances using Mint’s budgeting and expense tracking features. I went from a 5 year goal to achieving it in 3+ years. Achieving this goal also led me to becoming a financial coach to help even more individuals pay off their student debt, better manage their personal finances and start investing. I make sure my clients download and track their expenses in Mint so they too can benefit like I did.

I love that Mint offers programs and opportunities for users to win cash towards their expenses by simply using the app more frequently. I already use the app everyday, and I find this feature helpful in spreading more financial awareness and frequency of managing our personal finances proactively.

If it wasn’t for Mint helping me aggregate my accounts and create a budget all in one place, I would have never seen my finances from an aerial view or been motivated to aggressively pay off $125K of my student debt in 3 years. It’s the one app I use everyday to track my Net Worth progress and one I always recommend to all my coaching clients.

Take it from Hersh, consistent tracking and hard work definitely pays off. Comment below with how Mint has helped you and if you’d like to share your story, reach out to us on social!

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

Annemarie Belda is the communications manager for Intuit Mint. She is passionate about helping readers achieve their financial goals from starting a savings account to financial freedom. More from Annemarie Belda

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Source: mint.intuit.com

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