Companies using artificial intelligence in cybersecurity respond to data breaches faster and save over $1 million in incident responses compared to firms that don’t use AI, IBM reports.
Hacks cost financial firms on average $5.9 million in 2023, according to the tech giant’s new Cost of a Data Breach Report. The average global cost of a data breach was $4.45 million, an all-time high and slight increase from last year’s $4.35 million mark.
The research, conducted by the Ponemon Institute and analyzed by IBM, polled 553 organizations worldwide which suffered cyber attacks between March 2022 and March 2023. It’s unclear if any of the 67 U.S. companies surveyed were real estate organizations. The industry however was hammered with attacks over the same period.
Cybersecurity utilizing AI saved firms on average $1.76 million in incident responses compared to businesses that didn’t, the report found. The tech-savvy firms also contained breaches 108 days sooner than their non-AI counterparts.
“Examples include the use of AI, machine learning, automation and orchestration to augment or replace human intervention in detection and investigation of threats as well as the response and containment process,” the report said.
Only 28% of firms surveyed said they extensively use AI and automation security tools in cybersecurity, while 40% rely solely on manual inputs. Although the mortgage industry has slowly embraced tech solutions, an Arizent survey last year found lenders lagging behind their financial services peers in deploying AI and machine learning in cybersecurity.
Lenders, servicers and other real estate players have suffered attacks impacting as little as a few hundred customers to millions of consumers in the past two years. While some firms have yet to acknowledge widely-reported attacks, others are facing class-action lawsuits from borrowers whose personally identifiable information was compromised.
Mortgage firms have been quick to identify hacks, discovering them typically within days, according to public disclosures. In a more severe lapse, a servicer in late 2021 didn’t identify a breach for 41 days before investigating. Those known response times are far quicker than IBM’s reported average of 204 days for companies to identify a breach and 73 days to contain it.
Among the average damages for firms worldwide were lost business costs, which respondents put at an average of $1.3 million per firm in 2023. Those expenses include lost customers and revenue, and the cost of acquiring new clients. Audits, investigations and crisis management totalled on average $1.58 million.
Notification costs to consumers, regulators and other third parties averaged $370,000, according to the report. The 37% of businesses surveyed that didn’t notify law enforcement of attacks paid on average $470,000 more than those who did.
The overall costs don’t include ransoms paid. The FBI warns victims not to pay hackers to further enable them.
Ransomware accounted for nearly 25% of all attacks, followed by phishing at 16% and compromised access credentials at 15%, the report found. Only a third of breaches were identified by a firm’s own security team or tools, a lapse that could add an additional $1 million to a data breach.
The report highlights the benefits of firms which use a managed security service provider, a vendor that provides around-the-clock monitoring. Companies using a security partner cut breach lifecycles by 21%.
Mortgage companies in the past year have also been forced to reconcile soaring cybersecurity and cyber insurance costs with fading revenues. In the past three months alone, lenders have grappled with a ransomware gang, suffered wide-ranging cyber attacks and paid a seven-figure settlement to resolve the fallout of a data breach.
A Utah-based national home lender will shell out over $1.2 million to settle a class-action lawsuit involving a ransomware attack and compromise of personal employee data.
Without admitting to any liability for the infraction, Citywide Home Loans agreed to the settlement in order to resolve the claims, which came after a November 2020 data breach. In the incident, an unauthorized outside individual gained access to the company’s computer network and deployed ransomware, encrypting certain systems that contained the personal identifiable information of Citywide employees.
Included in the compromised data were Social Security numbers, passport and driver’s license information and banking and credit card details. Citywide notified affected employees of the incident between February and April 2021.
Marjorie Curtis, who served as the plaintiff for the class consisting of approximately 3,300 current and former staff members, filed the original lawsuit in October 2021, alleging negligence, breach of contract and invasion of privacy on the part of Citywide Home Loans.
The lender, which has headquarters in Sandy, Utah, did not respond to a request for comment from National Mortgage News prior to publication. Founded in 1998, Citywide is licensed in 35 states and employs more than 800 people. Stearns Lending entered into a shared-equity partnership deal with Citywide in 2018 before it was acquired by Guaranteed Rate in 2021.
Under the terms of the settlement, individuals who were notified their data was compromised can claim up to $5,000 for economic losses incurred as a result of the cyberattack. Another $200 is available for lost time related to the incident. Citywide also agreed to provide two years worth of credit monitoring and identity-theft protection services from Kroll Associates.
In order to receive benefits from the agreement, impacted parties must submit claim forms by Aug. 8. A final approval for the settlement is scheduled on Aug. 25.
The cyber incident at Citywide is one of several to have hit mortgage lenders and servicers in the past few years. Earlier in 2023, a noted hacker threatened to publish customer data he claimed to have obtained through cyberattacks on Academy Mortgage after that lender refused to pay any ransom.
Also this year, Alvaria, a third-party technology vendor contracted by Carrington Mortgage Services became a victim of a ransomware attack that impacted over 50,000 people, with data including names, addresses, loan information and partial Social Security numbers compromised. It was the second attack on Alvaria in the space of a few months, following a late-2022 event. Cybersecurity experts have previously warned of the security threats sometimes coming through outside vendors.
The Federal Bureau of Investigation advises companies to avoid paying ransom following a cyberattack. Payment offers no guarantee data will be returned and could incentivize cyber criminals.
Cash App, a digital money transfer service, has transformed the way we manage our finances. From sharing restaurant bills with friends to paying your gig economy contractor, this app packs a punch beyond the basics of money transfer. Think of it as your mobile money manager, where you can easily check your Cash App balance, do direct deposits, cash out, and even manage your taxes. Yes, you heard right, Cash App taxes can also be managed within the app.
History of Cash App
In 2013, the minds at Square Inc. introduced the world to Cash App. With a vision to simplify monetary transactions, they created a platform that has become a key player in the fintech revolution. It’s fascinating to observe how the app evolved from a basic peer-to-peer payment service to a fully-fledged financial solution.
How Cash App Works
Imagine this: your nephew needs quick money for school supplies. He’s in another city, and you have no idea how to send him cash without physically being there. Enter Cash App.
Once you’ve installed the app and linked your bank account, transferring money is as simple as choosing a contact, entering an amount, and hitting ‘Pay.’ The money will instantly move from your Cash App account to theirs. And voila, crisis averted!
Here are the steps to use Cash App
Step 1: Download and Install
Cash App is available for both iOS and Android devices. You can find it in the App Store or Google Play Store. Once you’ve located the app, download and install it on your device.
Step 2: Create Your Account
Open the app, where you’ll be prompted to enter your mobile number or email address. You’ll then receive a confirmation code, which you need to enter in the app. This process verifies your account and helps protect your personal information.
Step 3: Link a Bank Account
Next, you’ll be asked to link a bank account. Enter your debit card details associated with your bank account. By linking your bank account, you’ll be able to transfer funds to and from your Cash App account seamlessly.
Step 4: Create a $Cashtag
A $Cashtag is a unique identifier for your Cash App account. This is what you’ll give to people when you want to receive money, and what you’ll use when you’re sending money to others. It can be up to 20 characters long and should be something you’re comfortable sharing with others.
Step 5: Understanding the Interface
Once you’re set up, you’ll notice that the main screen is split into two main sections:
The “Cash & BTC” section displays the current balance in your Cash App account. If you’ve chosen to invest in Bitcoin via the app, your balance will be reflected here too.
The “Banking” section allows you to add cash to your balance, cash out your balance to your bank account, view transactions, or invest in stocks and Bitcoin.
Step 6: Sending Money
To send money, tap the “$” symbol at the bottom center of the screen. Enter the amount you want to send, then press “Pay.” You’ll be asked to enter the recipient’s $Cashtag, email, or phone number. Add a note to remind them what the payment is for, then press “Pay” again.
Step 7: Receiving Money
When someone sends you money, it will appear in your Cash App balance. You can keep the funds in the app for future transactions, or cash out to your bank account.
To cash out, tap the “Banking” button at the bottom of the screen, then tap “Cash Out.” You can choose to cash out instantly for a small fee, or to cash out to your bank account within 1-3 business days for free.
Step 8: Using the Cash Card
Cash App offers a free debit card called the Cash Card. You can use this card to spend your Cash App balance at any store that accepts Visa. For individuals who frequently use their credit card for purchases, the Cash App can be a great way to boost savings toward chosen goals without much work. To request a card, tap the card-shaped icon on your Cash App home screen and follow the steps.
Step 9: Investing
Cash App allows you to buy stocks or Bitcoin directly from your account. From the main screen, tap the Investing tab (looks like a chart). Here you can view your investing portfolio, search for stocks, and make trades.
Remember, investing involves risks, and it’s important to understand these before you start.
The beauty of Cash App is its simplicity. It’s a secure and versatile platform that’s ideal for quick mobile payments, money transfers, and even dabbling in investments. Whether you’re a parent paying for piano lessons or a college student splitting rent with roommates, Cash App is an option worth considering.
Cash App Features
Cash App isn’t just a money transfer service. It’s so much more. You can link it to Apple Pay or Google Pay, pay with the custom Visa debit card (known as the Cash Card), and even buy Bitcoin cryptocurrency. Cash App also offers a feature called ‘Cash App Investing.’ With it, users can invest in stocks, making the world of Wall Street accessible right from your smartphone.
One exceptional feature of Cash App is that it allows users to receive paychecks through direct deposit. This is excellent for workers in the gig economy or for anyone preferring a digital banking experience.
Is Cash App safe?
In the age of data breaches and identity theft, Cash App ensures the safety of Cash App users’ personal information through encryption and fraud detection technology. The app is designed to keep your transaction details secure, even if your phone is lost or stolen. It also provides notifications for all account activities, helping you keep an eye on your transactions.
While Cash App is a financial platform, it is not a bank. It provides banking services and debit cards through its bank partners, but a great feature is that the balance in your account protected by FDIC insurance (Federal Deposit Insurance Corporation), just like a traditional bank.
Competitor Analysis
There are other players in the digital money transfer field such as Google Pay, Zelle, Venmo, Square Cash, and PayPal. What sets Cash App apart, however, is its combination of simplicity, versatility, and user-focused design. While other services might offer similar features, Cash App’s uncluttered interface and intuitive user experience keep it at the forefront of other payment apps.
See my in-depth comparison between Cash App and its competitors
Economic Impact
The rise of apps like Cash App has changed the financial landscape dramatically. By eliminating the need for brick-and-mortar banks, they’re driving the shift towards a more digital, user-centered banking experience.
Future of Cash App
Looking forward, Cash App appears poised to expand its offerings even further. The rapid growth of fintech and evolving consumer preferences suggest that apps like Cash App could begin to offer more extensive services, such as loans or insurance products, in the not-too-distant future.
Critiques and Controversies
No service is without its challenges. Cash App has faced criticisms related to customer service and has also been used for scams. The company has taken steps to address these issues and is continually working to improve Cash App user experience and security.
Through its various features and offerings, Cash App has made managing finances a more seamless experience. Whether you’re looking to go digital with your banking, simplify money transfers, or venture into investing, Cash App may become your preferred payment method.
Cash App FAQs
To wrap things up, let’s address some common queries you may have about Cash App:
Can you withdraw money from Cash App without a card?
Yes, you can transfer money from your Cash App account to your linked bank account.
Can someone steal your money with your Cash App name?
No, your Cash App name, also known as a $Cashtag, is just an identifier for others to send money. They can’t access your funds with it.
What happens when someone sends you money on Cash App?
The money will be added to your Cash App balance. You can use it within the app or withdraw it to your linked bank account.
How do you withdraw from Cash App without a bank account?
You need to have a linked bank account or a Cash Card to withdraw money from Cash App.
Do you have to provide your Social Security Number to Cash App?
For certain functions, such as sending large amounts of money or using the app for investing, Cash App does require your Social Security Number to comply with federal regulations.
Do you need a bank account with Cash App?
You can send and receive money with just a debit card, but having a bank account linked allows you to transfer funds to and from your bank.
Is it free to make ATM withdrawals using Cash App?
There may be a fee for using ATMs with your Cash Card, but Cash App can reimburse the fees if you have at least $300 coming into the app each month, like a paycheck deposit.
Maxwell, the mortgage fintech backed by Wells Fargo and Fin Capital, has launched Maxwell Single-Sign On, an SSO (single sign-on) tool for lenders to enhance security and reduce the risk of data breaches, the company announced on Monday.
The tool is designed to address the issue of sensitive data being handled by lenders and loan officers on a daily basis, including social security numbers, paystubs, and tax returns. With cyber threats increasing in the financial sector, the company believes that lenders need to take proactive steps to safeguard their systems and data.
Maxwell Single-Sign On allows lending teams to sign in safely and securely using their existing authentication partner. The tool reduces the risk of unauthorized access to sensitive data and applications, simplifies access management, ensures only authorized users have access to consumer data, and improves usability by allowing teams to log in easily with one click.
The SSO tool is part of meeting the industry demands of ensuring an optimized process from the intake of the application to clear to close and beyond, the company said.
Founded in 2015 by homebuyers, Maxwell offers technology-powered solutions that address the entire mortgage loan process, from application intake to the secondary market, the company said. The company’s suite of technology products helps non-depository mortgage banks, credit unions, brokers, and local banks connect their communities with the benefits of homeownership.
The company believes that by applying technology to market challenges, they give local lenders powerful tools to remain competitive even as the industry evolves.
According to Maxwell, the company’s suite of tools have resulted in a 20% increase in loans closed per loan officer. In addition, the tools have resulted in 21 BPS saved in costs per loan, a 41% increase in net income, and closings that are held 13+ days faster than the average.
This content was generated using AI, and was edited and fact-checked by HousingWire’s editors.
Back in 2013 my friends and I graduated, got jobs, and strangely, began seeing positive numbers in our bank accounts (student loans notwithstanding).
To protect and organize this novel and exciting resource, the savvy among us downloaded budgeting apps. Others budgeted in Excel, and the rest (including me) spent blindly, dreading our monthly statement like a jury summons.
Point is, seven years ago there were plenty of options for virtually managing your budget. Today, there are perhaps too many. There are hundreds of apps for climbing out of debt, budgeting between spouses, investing a percentage of your savings, even budgeting as a freelancer.
With overwhelming options and data breaches still making headlines, is it time to return to good ol’ budget spreadsheet?
What’s Ahead:
Here’s why I budget using spreadsheets
For six months in 2015, I tried everything I could to start meditating. I knew the practice would be challenging, so I tried to flatten my learning curve with apps, books, and by carefully studying the esoteric ramblings of gurus on YouTube.
Nothing worked. I couldn’t close my eyes for six minutes without snatching up my phone like Bilbo Baggins to resume my consumerist coma. It wasn’t until I visited a Buddhist monastery, and meditated for 45 minutes straight with no apps, music, or guidance, that I finally mastered the practice.
I found budgeting to be the same way. I knew it wouldn’t be fun, so I spent weeks trying dozens of different budgeting apps. They sent me reminders, gold stars, and even performed many essential tasks for me.
I wasn’t learning. I was looking for the path of least resistance.
But critical life skills are sharpened through resistance. Budgeting in a spreadsheet is like meditating without music or lifting free weights instead of using machines. You’ll sweat more, but you’ll grow faster. If sweating isn’t your thing, using apps like Mint to track your finances is a great alternative to budgeting in spreadsheets.
As illustrated in the “Pros..” section below, there are plenty of objective advantages to budgeting in a spreadsheet versus an app. Spreadsheets are extremely reliable, built upon the most simple, stable, and well-supported software in the world. Spreadsheets won’t crash or hamper you with surprise “security updates.” They’re effortless to share, and there’s a free template for virtually every conceivable scenario. Best of all, spreadsheets are infallibly secure. While many apps will store your most compromising information using security that’s failed before, there’s nothing a virtual villain can do with your spreadsheet in plain view.
But it’s the subjective psychological advantages of spreadsheet budgets that I believe give them the edge. The security and stability lower stress. The raw journaling aspect offers moments of deep introspection. Finally, the act of learning a new skill in the most organic way offers rewards and nourishment.
My top three budgeting tips
If you’re reading this article, you’re either looking to start budgeting or considering changing up your current method. In either case, you deserve a high-five because budgeting isn’t easy.
There’s a psychological weight to knowing precisely how much money you do (or don’t) have at all times. But trust me, it’s much less burdensome than the pervasive anxiety of not knowing and making poor financial decisions as a result. Plus, budgeting helps you save more, invest more, and makes you a better partner.
Whether you’re just getting started or looking to refine your process, here are my top three budgeting tips:
Be as honest with your budget as you are with your doctor
What do your doctor, your therapist, and your budget all have in common? They all help you solve big problems, but they can only help if you’re honest with them.
It can be extremely hard to admit to yourself just how much you’re spending on certain things, and in tandem, how much money you’re not really saving. But like a mystery stomach pain, mystery spending only gets worse with time.
So when you begin the budgeting process, be honest with yourself. Record everything. If looking at a certain expense makes you cringe, good! Like a massage therapist finding knots in your back, discovering cringeworthy expenses is pretty much the whole point.
Don’t forget insurance and retirement
Perhaps the most common mistake among budgeters is forgetting to include big, routine expenses that fall outside of a monthly cycle. The two that are most oft-forgotten are retirement and insurance.
Generally speaking, you should consider putting away at least 10% of your monthly income into a retirement account. I highly recommend opening a Roth IRA. Remember to subtract whatever you stash away from your monthly income on your spreadsheet.
Similarly, be sure to factor your insurance premiums into each month’s budget. Even if you pay in full, whatever you pay in total annually for home/renters, medical, and auto should be divided by 12 and included in your monthly expenses.
Think of budgeting as “money journaling”
The process of journaling is excellent for your mental health because it “helps you prioritize problems, fears, and concerns” and “provides an opportunity for positive self-talk,” according to the University of Rochester Medical Center.
Because “budgeting” can have loaded connotations, I think of budgeting as “money journaling.” If I’m nervous about my income-to-spending ratio, I record everything to remove the fear of the unknown. Then, I either discover that I’m well within my spending limit, or that I’ve exceeded it and should go lean until the end of the month.
In either case, I feel much better.
Pros of budgeting in a spreadsheet
Versatile and easy to share
Perhaps you’re worried that budgeting in a spreadsheet will involve the complex drudgery of designing something from scratch. Thankfully, nothing could be further from the truth.
I like Google Sheets because it’s free, cloud-based, and doesn’t require surprise lengthy updates. Plus, the platform has hundreds of professional and user-sourced budget templates for every possible scenario. When you find a template you like, you can click FILE > MAKE A COPY, and ta-da, it’s yours forever.
Plus, Google Sheets makes it easier than most apps to share your spreadsheet with friends, family members, or your financial advisor. And when things get private, you can dynamically update the view, comment, or edit access (or revoke it entirely!).
Download Money Under 30’s official “Simple Budgeting Spreadsheet” for Excel here.
Here to stay
Apps come and go, regardless of popularity. Thousands of full-time Viners didn’t think they’d lose their primary source of income overnight until they did.
While budgeting apps are probably less volatile than social media platforms, it’s safe to say that Google Sheets and Microsoft Excel will be around much longer than many of the medium-sized budgeting apps competing on the Apple or Play Store.
By “investing” in a spreadsheet over an app, you can rest assured that your preferred budgeting tool will always be available (and offline, no less).
Better security
A lot of money management apps prompted me for my bank account information. Although they listed good reasons for the invasion of privacy (real-time budgeting data, auto-deposits into retirement, etc.), it still made me feel uneasy.
If the Equifax breach has taught us anything, it’s that a miserly approach to sharing personal information is probably a good idea. Keeping your budget spreadsheet and your accounts separated may be less convenient, but it’s indisputably safer.
There’s very little a hacker can do with a copy of your budget spreadsheet other than mock you for spending $41 on Ben & Jerry’s Chocolate Therapy.
Now that I’ve covered the advantages of budgeting with a spreadsheet, I should acknowledge some shortcomings.
Cons of budgeting in a spreadsheet
Can lack user-friendliness
Rather than overwhelm you with a sea of empty cells, apps YNAB (You Need a Budget) will ease you into the process by asking a few questions at a time to calculate your income, expenses, and goals.
If you feel especially psychologically intimidated by the budgeting process, or you need extra help cataloging your expenses, the Q&A format of many user-friendly apps may ease some of your troubles.
Short on features
Even the best-designed spreadsheet templates are still static in nature and require your input to work effectively. Apps, by contrast, can be more dynamic, automatically adjusting your data based upon the access you give it to your accounts, bills, etc.
While you can write those off as mere conveniences, it’s hard to ignore how some apps will even go so far as to drive behavior. A spreadsheet admittedly can’t send reminders to your phone to stop spending, nor can it automatically invest for you.
Not mobile-friendly
I’d hesitate to call Sheets or Excel “mobile-friendly” – a more apt descriptor would be “mobile-tolerable.” Before a medium-sized purchase, I can always take a quick glance at my budget on Sheets mobile, but I lack the dexterity or patience to make any actual changes until I find a laptop.
By contrast, virtually all budgeting apps are designed to be mobile-friendly. If you’re someone whose laptop stays sheathed most of the day as you do most admin tasks on your phone, an app may better fit your lifestyle.
Summary
My budgeting spreadsheet is like a Toyota SUV – it may be short on fancy features or connectivity, but it’ll always be there and it will never break down.
Even still, while I strongly prefer to budget using a spreadsheet, there’s really no right answer for everyone. What’s most important is that you’re budgeting somehow, somewhere.
Digitalization is still on the rise, and technology has revolutionized countless aspects of our daily lives. The property management industry has benefited greatly from today’s technological advancements – developments in automation and cloud-based computing have paved the way for property managers, landlords and investors to streamline operations and maximize profits. Across the board, technology like this is becoming more accessible and affordable to the average person, but it isn’t without its own issues.
Security concerns have plagued the technology industry for years, and I foresee data breaches continuing to be an obstacle in the years to come. This should be top of mind for those of us in the property management industry, as we are entrusted not only with personal and employee data, but with data from property owners and tenants as well. Unfortunately, this kind of information makes property managers ideal targets for identity theft, data breaches, and other scams designed to steal personal details.
In this line of business, we are given access to a high amount of private information and it is our responsibility as property managers and business owners to protect the information of our employees, clients and tenants.
Prevention for property managers
The best place to start when it comes to data security is basic knowledge – create strong, unique passwords for each online account related to your property. Many experts recommend a minimum of 10 characters, using a variety of numbers, letters and special characters, and using a different password for each account you have (use a password manager or app if necessary). Avoid using personal information in your passwords that could easily be learned through your social media channels (birthdates, names of siblings, children, pets, etc.).
Two-factor authentication may seem like a pain, but it works. Take advantage wherever two-factor authentication is offered on financial sites, email and any other accounts with login information. Don’t do business on any public, unsecured Wi-Fi networks in airports, restaurants and other similar locations. Public Wi-Fi is the same thing as being in public – don’t share anything on the network that you wouldn’t share with the stranger sitting next to you.
Be aware of phishing scams and never click on links or attachments from unknown email addresses. In the property management industry, phishing scams commonly happen around tax season and involve offenders posing as IRS representatives or other authoritative sources and requesting personal information. Please note that the IRS will not initiate contact with taxpayers by email or phone to request personal or financial information and will always begin with contact by mail.
Prevention for small businesses
Owning and managing your own property is one realm and involves data security strategies that are similar to those used to protect your day-to-day personal information. When you begin managing multiple properties or managing properties on behalf of clients, a whole new level of responsibility is on your shoulders when it comes to data storage and protection. In addition to all of the best practices advised for individuals, you’ll want to ensure your business and your employees are practicing the same tactics.
Always protect your employer identification numbers and immediately report any suspected data loss or data breach to the IRS and state tax agencies.
If a data breach occurs
If you are facing a data breach as a property manager or property management business, act quickly in order to mitigate your risk. Research to determine exactly what information was compromised – was it your email or password that was acquired, or was more sensitive information like social security numbers accessed?
Utilize credit monitoring services to keep an eye out for activity or charges that you don’t recognize and place a fraud alert on any credit accounts with suspicious activity.
Without cloud-based technology, our devices would quickly run out of space and the only alternative would be to purchase expensive physical memory storage. Because of the cloud, large companies, small businesses and individuals alike can store and protect their digital information on the cloud. In the years to come, leaders in the technology space will continue to develop more innovative and effective tools to protect consumers and businesses from these situations.
MIAC Analytics revealed it was the victim of a data breach in April, one of several mortgage players to report hacks in the past several months.
It’s unclear how many clients were impacted by the incident at MIAC, which occurred between April 5 and April 6. The analytics firm said it immediately secured its systems once the threat was discovered.
“MIAC determined that in connection with this incident there was unauthorized access to certain systems in its environment, and as a result, certain data stored on MIAC’s systems was subject to unauthorized acquisition,” the company said in a consumer notice filed with cybersecurity firm IDX.
But Freedom Mortgage was affected as it revealed in a disclosure to the Indiana state attorney general that 592 of its customers had undisclosed information compromised. A limited amount of the lender’s past data was in MIAC’s database and may have been compromised, a company spokesperson said on Friday, who emphasized Freedom’s systems hadn’t been breached, and that the company had used MIAC several years ago.
A representative for MIAC declined to comment Friday. The cyberattack was described in a letter to consumers shared with the Massachusetts Office of Consumer Affairs and Business Regulation, and in the IDX announcement.
There was no evidence of identity theft or fraud, MIAC said. The firms offered affected consumers 12 to 24 months of complimentary credit monitoring from IDX.
MIAC doesn’t appear to have been disrupted further, and has since regularly announced loan sales on behalf of its mortgage clients.
That revelation comes after another lender, the mortgage arm of Cornerstone Capital Bank, said its customers were affected by an attack in February at one of its service providers. Houston-based Cornerstone Home Lending said 15,042 of its clients had information compromised, according to a notice to the Indiana state attorney general in March.
“Our investigation determined that the service provider stored Cornerstone data that includes your name, address, loan number and bank account number,” wrote Toby Wells, president of the Loan Servicing Division, in a letter shared with the same Massachusetts office.
Representatives for Cornerstone didn’t return requests for comment this week.
The attack was perpetrated by Russian-linked ransomware gang Clop, according to reports by TechCrunch and other cybersecurity blogs. The hackers allegedly breached a file transfer service with a “zero-day” attack that hadn’t been seen before, and published a list on the dark web of 130 companies they allegedly breached. The wide range of alleged victims includes banking-as-a-service provider Hatch Bank, which said in a Maine notice 139,493 of its customers were affected.
Carrington Mortgage Services meanwhile faces accusations of negligence from consumer plaintiffs in three federal lawsuits over two data breaches at its workforce management vendor, Alvaria.
The hacks at Alvaria in November and March impacted at least 50,690 clients, the companies said in disclosures to state attorneys general. It’s unclear which customers were affected in each incident, but Social Security numbers were among compromised data.
The lawsuits include estimates of the number of customers impacted, ranging from over 685,000 to more than 3 million clients. Neither attorneys nor the companies in the cases didn’t respond to requests for comment Friday.
The complaints resemble class action cases against other large lenders and servicers who suffered significant hacks last year, which all remain pending.
The New York State Department of Financial Services issued a $4.25 million penalty against OneMain Financial Group on Wednesday after finding that the subprime lender maintained poor cybersecurity practices, such as allowing employees and other trusted users, including vendors, to use default passwords on accounts with access to private customer information.
In its Thursday morning announcement about the penalty, the department said OneMain also failed to effectively manage risks posed by third-party service providers, manage access privileges and maintain a formal application security development methodology, in violation of the department’s cybersecurity regulations.
The penalty came after an examination by the department of the cybersecurity policies that OneMain maintained from December 2016 to the end of March 2020. During that period, the department found at least three instances of data breaches at OneMain.
Adrienne Harris, New York banking superintendent, said the settlement with OneMain “demonstrates the department’s dedication to upholding the responsibility of licensees,” particularly when they have access to New Yorkers’ personal financial information.
A spokeswoman for OneMain said the company was “pleased to have resolved this historical matter,” which it “has long since addressed.” She said OneMain is “committed to being a leader in cybersecurity” and would continue investing in its data protection programs.
“Cybersecurity is an evolving area, and we intend to continue our focus on enhancing our capabilities to meet risks as they arise in the future, in accordance with best practices for our industry and in cooperation with our regulators,” the spokeswoman said.
The spokeswoman acknowledged that OneMain did permit employees to share privileged accounts that had access to customer information and that these accounts were allowed to use the default passwords they were initially set up with. These risks “resulted in zero customer harm,” she said.
OneMain, which the department said in the consent order had $4.37 billion in annual revenue and 2.45 million customer accounts in 2021, acknowledged that it has suffered multiple cybersecurity incidents and data breaches in recent years. In 2018 alone, the company suffered at least four data privacy incidents.
One of these incidents involved only one person’s private information, according to a nonprofit that tracks data privacy incidents. Another involved hackers compromising OneMain customer emails to access their account information, according to notices sent to New Jersey customers. The department outlined two other incidents from 2018 and one from 2020 in the consent order against OneMain.
The OneMain spokeswoman said of the data privacy incidents it had suffered since 2018, “we are not aware of any customers who were harmed by any of these incidents.” However, OneMain has sent notices to customers telling them that their personal information had been compromised on at least two occasions since 2018.
One set of notifications went to New Jersey residents in 2018; the other set went to California residents in 2022. The company did not specify how many customers received these letters.
In addition to the $4.25 million penalty it will pay, OneMain must also write policies designed to remediate the cybersecurity shortcomings identified in the consent order and, once executed, submit a report to the department to prove it had done so.
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When you are trying to tighten down the hatches on your spending, you are doing everything possible to stick to your budget.
You are determined to stick to your budget this time around. But, you always hear that budgeting can be hard.
Well, here are some quick budgeting tips that will make sure to stick to your budget.
As most new budgeters learn, they struggle to stick to a budget for their monthly expenses. It is a natural process everyone goes through.
Budget, if you are looking for an easy button, then learn which payment type is best if you are trying to stick to a budget.
Especially if you spend a lot of time on social media, studies have shown you are more likely to overspend. So, you must learn which payment type will have you stick to a budget.
Then, you may be wondering and wanting help deciding which payment type is best for you.
The Optimal Solution Payment Type Solution
The most efficient payment type is something that is instantaneous and there are no fees associated with the transaction.
Cash is the most efficient payment type: Cash payments are usually the most efficient and convenient way to pay for goods or services.
Credit cards can be a less favorable option: Credit cards tend to have high-interest rates and can lead to financial disaster if used irresponsibly.
Debit cards are a great way to keep your spending within your budget: Debit cards should be considered a top priority for budgeting because they keep you within your spending limits.
Developing a budget will help you avoid financial disaster: A budget helps you stay organized and make informed decisions about which payment method works best for you.
Today, there are so many options on which payment type to use in today’s online world.
1. Cash
Cash is a payment type that can be used to reduce debt spending. It is versatile and can be used for a variety of expenses, such as groceries, medical bills, and gym memberships.
Cash is an excellent choice for people just starting to budget and save.
It is more restrained than credit or debit cards. The envelope method of cash budgeting can be used to train your brain to reduce spending. Cash is the most traditional payment method and has the fewest drawbacks. However, you need a safe place to store your cash, and some stores may not accept it.
Benefits of Cash:
Cash is an excellent payment type when your financial goals are to reduce debt spending.
Cash is a finite payment method that prevents you from overspending.
You have a set amount of money to spend each month, so there’s no chance of overspending.
Easy to track with the envelope method: Utilizing the envelope method ensures that you are tracking your spending (i.e groceries, gas, medical bills) and making sure that you aren’t overspending.
Cash is a quick and easy way to pay for goods and services.
No Fees. No maintenance fees or interest rates as credit cards. Cash is just plain cash – printed paper of currency.
You can avoid high fees associated with card transactions: There are no associated fees when paying with cash, making it the cheapest option overall.
Cash discounts may be available. Since you are paying with cash many small businesses offer a cash discount of 2-5%.
You can use cash at any store: No need to carry around extra cards or checks.
It’s easy to get cash: You can easily get cash and make extra cash.
There’s no need for bank account details: No need for bank account details means you’re free from identity theft risks and other inconveniences that come with having a bank account.
Cash allows you to skirt some financial regulations: Because cash payments don’t fall under the purview of many financial regulations, businesses can take advantage of loopholes in the law that allow them to charge higher interest rates on loans or engage in shady business practices. (highly recommended to stay above book)
Cons of Cash:
Possibility of losing or stolen cash: Keep your cash in a safe place!
You need a safe place to store your money: Another disadvantage of using cash is that you may need a safe place in which to keep it – some stores don’t accept it as a payment method.
Why Choose Cash?
Total control over your money, so there’s little chance of unexpectedly running out of funds.
Cash is a great way to stay on budget, as you can easily track your spending and see where you need to cut back.
Unpleasant to spend money with cash, which can help train your brain to reduce spending.
Cash is a quick and easy way to pay: Using cash eliminates the need for banks, credit cards, or other forms of payment.
Verdict: Paying with cash is the best method for budgeting and saving.
Overall, cash is a great payment type when it comes to budgeting. You can immediately see how much money you’ve spent and what needs to be cut back.
You can’t make impulsive buying decisions with debit cards or credit cards.
With a finite amount you can spend, cash is an excellent choice to prevent overspending. According to research, paying with cash can feel unpleasant, which can train your brain to reduce spending as much as possible.
2. Credit cards
Credit cards offer a number of benefits, including convenience, cash back, and the ability to make large purchases or pay bills in case of emergency. However, credit cards also come with credit card debt and can lead to overspending and financial problems if not used carefully.
For many, credit cards are the easiest way to blow your budget because you don’t have control over how much money you spend.
It is possible to overspend with credit cards if you are not mindful of what you charge.
On the flip side, this is a preferred method as many credit cards also offer rewards programs that give you cash back or points for purchases. If you make the conscious decision to use credit cards, you must make payments on time to avoid penalties.
Benefits of Credit Cards
Credit cards are convenient: Convenient to use and don’t have to worry about losing cash.
Use a credit card if you are disciplined and have strict spending habits: If you are disciplined and have strict spending habits, then using a credit card can work well for budgeting purposes.
Flexibility on larger purchases: Some benefits that come with having a credit card include more cash flow as well as being able to make larger purchases.
Credit cards provide support in times of crisis: Many credit cards offer extended services that can help like 24-hour fraud protection, lost wallet services, traveler’s insurance, and many other benefits – check each issuer for details.
$0 Liability on Unauthorized charges: Your credit card company will not be held responsible for any charges that were not authorized by you. This means that if you did not authorize a charge in person, online, or otherwise, you will not be responsible for it.
Fraud protection: Check your credit card issuer, but many offer fraud protection.
New card introductory APR is helpful to pay down debt: The introductory APR for the new card may not last long.
Payments on balance transfer should be manageable: Make sure that the payments on your balance transfer are manageable.
Points: You can accrue points along with your spending which can be a great perk.
Credit card interest rates are significantly lower than payday loans: Interest rates on credit cards are usually much lower than payday loans.
Due Date is After your statement closes. Since your bill cycle is at least another 21 days between the closing date for your statement and the due date, it gives you flexibility. Personally, I still account for the credit card bill in the same month that it was accrued.
Cons of Credit Cards
Potential for credit card debt: When using a credit card, be aware of your credit limit and the interest rate that you will have to pay on your debt. Also one of the categories of debt.
Credit limit often leads people to spend money: The credit limit often leads people to spend money by giving them a false sense of security, when they should stick to a budget and pay attention to their credit card statement and the billing cycle.
Credit card overspending can lead to debt: Consider the purchase if it is essential or delay it if possible.
Ability to easily purchase something you cannot afford. Buying something that you don’t have the money saved up for will cost you interest fees associated and maybe even with a credit card balance transfer.
There are a number of fees associated with a balance transfer: Transfer fee, interest on new purchases charged to the card.
Your introductory APR may not be valid if you make too many payments late: If you fall more than 60 days behind on payments your introductory APR might be canceled and you may face higher interest rates.
Credit score can suffer from debt: When you carry a credit card balance or don’t pay your monthly bills on time, you will lower your credit score.
Avoid carrying a balance: Pay your statement in full each month to avoid paying interest and maximize your grace period.
Key Takeaways on Credit Cards
Make sure to pay attention to the dates: Don’t spend more than you can afford, and make sure you’re making your minimum monthly payments on time so that your debt doesn’t increase over time.
A credit card can be used for budgeting only if you’re very disciplined: If you know that overspending is NOT an issue and you pay the credit card’s monthly balance in full, then using a credit card is fine.
Credit card transactions usually take several days to register in the feedback system: Something to look out for!
You can step back into debit cards or cash if needed: If credit cards are not for you, there are other options available such as debit cards or cash
3. Debit cards
Debit cards are a good option if you want to stick to a budget because the predetermined amount of funds can help you stay within your means. Additionally, debit cards are more convenient than cash and just as accepted as credit cards in most places.
A debit card works more similarly to cash than to credit cards.
They provide an easier way to track your spending and avoid having to carry a lot of cash.
Pros of Debit Cards:
No Need to Carry Cash: A debit card is better than cash because you don’t have to carry a lot of paper money and change around, and they’re also safer.
Debit cards are faster and easier to use: Debit cards work just like credit cards – withdrawing cash, making purchases, and paying bills – but they are linked directly to your bank account, so there is no need to carry around a separate cash envelope wallet or purse for them.
A debit card is a good option if you want to stick to a budget: Debit cards come with a predetermined amount of funds that you can spend from your bank account just like cash.
Tracking payments is easy with debit cards: Your debit payments will appear on your issuer’s dashboard, which you can monitor anytime from any location.
Convenience: Debit cards are more convenient to use and faster than needing to write a check or carry around cash. Plus they don’t add to your debt.
Shopping online is easy. You can use your debit card to make online purchases with your bank account, and digital banking tools make tracking your spending easy.
Points: Some debit cardholders can earn points for spending on their cards, which can be redeemable for rewards such as cash back or gift cards. This is new to compete with credit cards.
Fraud protection is typically offered for free with most debit cards—meaning if your card is stolen or used without your permission, you can get your money back.
No impact on your credit report. When you use a debit card, the funds are actually withdrawn from checking or savings accounts so there is no credit reporting occurring.
Cons of Debit Cards:
An overdraft on a debit card can happen when a purchase exceeds the amount of money in the checking account, leading to overdraft fees.
Funds on hold with fraudulent charges. If your account gets hacked, your losses will be limited since most banks protect their users against fraudulent charges and online purchases with their accounts. However, those funds will be held while they investigate and you may be liable for $50.
No chance to improve your credit score. Since you are not borrowing money, you are unable to improve your credit score.
Debit cards are a great way to keep your spending within your budget and avoid overspending which can lead to many detrimental issues.
Regardless of the overdraft fee, debit cards are still better than cash because they’re safer and easier to carry around.
4. Checks
Checks… do people still write checks? Why yes they do!
Checks offer a few benefits as a payment method, even though they are slowly being replaced by more modern options.
This can help you keep track of your spending and make sure you do not overspend. Additionally, if you ever need to dispute a charge, having a check can be helpful in proving what you paid for.
What is a check?
A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer from the check writer’s account. The date is usually written in month/day/year format. The signature of the check writer is usually on the line below “Pay to the order of.”
There are three main types of checks:
A cashier’s check is a check guaranteed by a bank, drawn on the bank’s own funds, and signed by a cashier.
A certified check is a personal check for which the bank has verified that there are sufficient funds to cover the payment.
A personal check is one that you write yourself and that is not guaranteed by the bank.
Pros of Checks
Checks are still a payment option: Checks are one of the traditional payment methods, but it is slowly dying out because of modernization.
Physical written record. It can be helpful to have physical copies of checks in addition to digital records through the bank.
You need to make both digital and physical copies of the check: Save check stubs but also transfer the information to a budgeting system.
Cons of Checks
Saving check stubs is helpful, but you still need to transfer the information to a budgeting system: Useful for tracking spending, but you’ll likely want more detailed records than just check stubs.
Not as convenient as credit or debit cards.
5. Apple Pay or Apple Cash
Apple Pay is easy to use and convenient since you only need to connect your smartphone to your cards and bank accounts via the app.
It is easy to use since you just hold your phone up to the reader and wait for the payment screen to appear.
You can even get cash back with apple pay.
Pros of Apple Pay:
Apple Pay is easy to use and convenient: You only need to connect your iPhone to your cards and bank accounts via the app.
You don’t need to carry any extra cards or cash: No need for additional cards or cash when you’re out and about
You can use Apple Pay on different devices: You can use Apple Pay on your iPhone, iPad, and Mac.
Transactions are secure: Your transactions are secured with Touch ID or a passcode.
Set up Spending Limits for each user. This way you can make sure you (or others with authorized access) are not spending more than you intended. Learn how.
Protection of Data during transactions. Your actual credit card number is changed to a different digital number, which allows limits your card number’s exposure.
Cons of Apple Pay:
Not widely accepted (yet). This method of payment is 100 percent guaranteed. While many stores offer apple pay, not all do quite yet.
The same rules apply if you load apple pay with a debit or credit card drawbacks include late fees, interest rates, and overspending: Keep that in mind when choosing Apple Pay as your payment method.
6. Mobile wallets like Google Pay, Samsung Pay, Venmo, or Zelle
Mobile wallets are digital payment systems that allow you to pay for items with your smartphone. Many people find mobile wallets are very convenient and becoming a traditional method of payment (such as credit cards).
With mobile wallets, you are making digital payments without having to carry around cash or cards using just your smartphone.
Mobile wallets are easy to use and provide instant payment convenience, making them perfect for shopping online.
Pros of Mobile Wallets:
Mobile wallets use credit cards and debit cards: Connect your smartphone to your bank accounts and use it for digital payments.
Mobile wallets are easy to use and convenient: Instant payment convenience makes them perfect for shopping online as well.
No need for cash or cards: No need for cash or cards.
Strong secuirity features provide privacy and security features that ensure your personal information is safe from data breaches and unwanted charges.
You can make purchases without having to show your identification: You can make purchases without having to show your identification.
Additional Layer of Security. Additionally, mobile wallet data is protected with verification, such as fingerprints.
Cons of Mobile Wallets:
With Zelle and Venmo, it is easy to send money to the wrong person or add an extra zero and send more money from planned. More often than not, it is difficult to recover your money.
You need to be disciplined when using a mobile wallet: Pay attention to late fees and interest rates, as well as the amount you spend in a month.
7. Prepaid Cards or Gift Cards
A prepaid card or a gift card could be right for you. The advantage of these is the mere fact that you reached the limit is enough to deter overspending.
It can make you think twice about whether you need to purchase an item or not.
Pros of Prepaid Cards and Gift Cards
Easy to use: Prepaid and gift cards are easy to use and manage your finances with.
The mere fact that you reached the limit is enough to deter overspending: It can make you think twice about whether you need to purchase an item or not.
No strings attached: No need to worry about any fees associated with the prepaid card once activated.
Privacy: The prepaid card does not track your spending or use any personally identifiable information.
Credit Score Doesn’t Matter: Your credit score does not matter when obtaining a prepaid card.
Cons of Prepaid Cards or Gift Cards
Losing a prepaid card is not a fun experience. Contact the prepaid card issuer right away to protect the funds on the prepaid card.
Fraud protection: Consider whether your prepaid card issuer offers any theft or fraud protection, as not all providers offer this feature.
Prepaid cards have limits on how much money you can load onto them, which can be frustrating if you need to make a large purchase.
8. PayPal
PayPal is a very convenient way to pay for items online or in person. It is widely accepted and used by many people.
PayPal is a digital payment service that offers convenience and ease of use. You can use them to send money to people or pay for online purchases.
However, because these services can only be used online, they should not be relied on as your sole method of budgeting and tracking expenses. Instead, consider Paypal in combination with another budgeting tool, like a spreadsheet or app, to get a fuller picture of your spending.
Pros of PayPal:
PayPal is one of the most popular online payment methods: Widely accepted and used by many people.
You can use them to send money to people or pay for online purchases: Help you review your spending prior to purchase.
Cons of Paypal:
EasyTarget for phishing scams. A phishing scam is when someone tries to trick you into giving them your personal information, like your password or credit card number. They might do this by sending you an email that looks like it’s from PayPal, but it’s not. Or they might create a fake website that looks like PayPal. If you enter your information on these sites, the scammers can then use your account to make purchases or send money to themselves.
Reputation for poor customer service. This is evident in their customer service ratings, which are some of the lowest in the industry. The majority of complaints against PayPal revolve around poor service received when asking for assistance with fund freezes and account holds.
9. Cryptocurrency (ie: Bitcoin)
Cryptocurrencies offer a new and innovative way of handling payments. They’re not yet widely accepted, so there’s potential for businesses to get in on the ground floor with this new technology.
However, because cryptocurrencies are so new, it’s uncertain if they will be regulated or not. This could pose a challenge for businesses down the road.
Pros of Crypto
Not subject to the same regulations as traditional currency, which makes them appealing to those who want to avoid government intervention.
The valuation of Crypto changes rapidly. If you are smart with crtyple this is a great way to spend your crypto coins.
Cons of Crypto
Cryptocurrencies are not accepted everywhere: Cryptocurrencies are not accepted by most organizations yet, which it makes it difficult to use them in day-to-day life.
It’s unclear if cryptocurrencies will be regulated: It’s uncertain if cryptocurrencies will be strictly regulated or not. This poses a challenge for those who want to use them as a payment method.
Bitcoin and other cryptocurrencies are still in their infancy: Bitcoin and other cryptocurrencies have only been around for a few years, so they may still face challenges in the future.
Here are the most popular budget apps today:
Other Payment Methods:
ACH payments
ACH Payments is an excellent way to pay bills and other financial obligations: You can easily set up a billing cycle for recurring payments, making it safe and convenient.
Fewer people are aware of your transactions when using ACH payments, reducing the chances of fraud or theft.
Key Facts:
Fewer people know about your transactions when using ACH payments, reducing the chances of fraud or theft.
Your checking account information is not shared or accessed by the system in any way.
You can quickly pay bills and other expenses with ACH payment: Financial institutions offer this as part of their deals.
When setting up recurring bills with ACH payment, you are aying your bills on time is important for maintaining a good credit score.
Pay attention to your check account balances: Make sure you have enough funds in your check account to avoid paying overdraft fees.
Money orders
A money order is a document that orders the payment of a specified amount of money. Money orders are convenient because they can be bought at many locations, including post offices, banks, and convenience stores.
To get a money order, you will need to fill out a form with the payee’s name, the amount of the payment, and your contact information. You will then need to purchase the money order with cash or a debit card.
To cash a money order, you will need to take it to a bank or post office. You will need to show identification and sign the back of the money order. The teller will then give you the cash for the payment.
More secure than cash: Money orders are more secure than cash because they don’t require a bank to make the transaction.
Less convenient: money orders are less convenient because you must purchase them in person.
Able to trace. They are also more secure than cash because they can be traced if lost or stolen.
Wire Transfers
Wire transfers are a more secure way to transfer money than traditional methods like checks and cash. These are sent through the banking system and are usually processed within two business days.
Typically, wire transfers are used when sending and receiving large sums of money (over $10000).
More secure than cash: Wire transfers are more secure than cash as the bank verifies there is enough money to make the wire transfer.
Fees involved with using a wire transfer. Most institutions charge for handling a wire transfer.
What method of payment is best?
Cash is the most widely accepted form of payment, but debit and credit cards are very popular.
The payment method that is best for you depends on which one helps you to stick to your budget and spend less money. The goal is to be financially stable.
What method is best for sticking to a budget?
There are several different types of budgeting methods that people use in order to manage their finances. Many people focus on using the 50/30/20 method, in which each percent corresponds to a different category of expenses.
There are plenty of budgeting tools available today to make sure you stick to your budget.
You need to find what works best for you. At the end of the month, you want to spend less than you make. That is the winning combo!
1. Budgeting App
There are many budgeting tools available online, which can be helpful as it can be easier to track your progress and budget over time.
You can use various popular budgeting apps like Quicken, Qube Money, or Simplifi.
These apps can help you track your spending, set goals, and stay on track with your budget.
2. Paper and Pen or Simple Spreadsheet
Some people find that they prefer using a simple spreadsheet or paper budget. This may be due to personal preference or because they find it easier to understand and use.
Additionally, using a paper budget may help you stay more organized as you can physically see where your money is going.
Options to get you started include our own budgeting spreadsheets or using an automated system like Tiller.
3. Envelope budgeting method
The cash envelope system is a good way to stick to a budget because it is rigid and based on envelopes and cash. You can’t get more money until your cash payday. So, this system helps you track your spending and budget better.
However, using only cash can have drawbacks as having large amounts of cash on hand can be risky.
The envelope method gives you a sense of control over your spending and makes it more tedious to write down your transactions. If you find writing down your transactions tedious, the envelope method may be too much for you.
4. Know Your Budget Categories and Track expenses
Tracking expenses is essential to move ahead financially: Knowing what you have spent in each category will help you make better financial decisions.
Be specific with your budgeting categories. Don’t make it too complicated. Always remember to include household items, clothing, and groceries when tracking expenses.
5. Prioritize your Budget Plan
A budget can provide a realistic picture of your finances, help reduce stress related to money matters, and guide you toward achieving your goals.
Creating a budget can help ensure that you are able to meet your financial obligations and still have money left over for savings and other goals. A budget can also help you track your spending so that you can make adjustments if necessary.
Make a budget plan: This will help you stay on track and make sure that you are spending your money wisely.
You decide where to spend money: A budget helps you set future goals and achieve your financial goals.
Creating a budget can help reduce stress: If you tend to get stressed about money matters, creating a budget can give you peace of mind.
A budget has other benefits beyond financial ones: If you want to achieve something in life, creating a budget can help guide you in the right direction.
See where to cut back spending. You can also look at your past spending habits to see where you can cut back. Sometimes it may be necessary to save more in order to achieve long-term goals, like buying a house or having a wedding. Always be mindful of your budget when making payments and spending money.
It’s a three-step process that involves basic math: Making a budget is simple and requires only basic math skills.
Stay on track: Making a budget plan will help you stay organized and keep track of your expenses.
A budget plan will help you stay on track and make sure that you are using the best payment type for your budget.
Making a budget is an easy way to save money. By following a few simple steps, you can keep track of your expenses and make sure that you are spending your money wisely.
Which type of payment is best for sticking to a budget?
One of the main pros of using cash as a method of payment is that it is the most efficient way to keep track of your finances. This is because it is very easy to budget when you are only dealing with cash.
However, many people prefer debit or credit cards are the best type of payment. They are more convenient than cash and can help you keep track of your spending. However, if you have a bad credit history or a low credit score, credit cards may not be the best option for you.
Cash payments are the most efficient: Most convenient and easiest to keep track with cash envelopes.
Credit cards allow you to accrue points along with your spending: These are a great benefit and one that can be a perk if handled well as part of your budgeting process. As long as pay them off in full each month to avoid credit card debt, high-interest rates, and other negative consequences.
Debit cards are also a good option for sticking to a budget. They can be used like credit cards but with less risk of debt.
Cash-based payments are a newer option and are more reliable: May not have as many negative consequences as other payment methods such as credit cards or loans.
What Not to Use when you are Trying to Stick to a Budget
You need to steer clear of these types of payments if you want to be financially stable person.
Personal loans
Personal loans are a risky way to budget. However, if you need the money for an emergency or unexpected expense, a personal loan can be a lifesaver.
There are many risks to consider and other ways to lower your spending before resorting to a personal loan.
Loans can cause budgeting problems: Loans can mess up your budget and make it difficult to stick to spending plans.
Taking out a personal loan just for the sake of having money can disrupt your budgeting: Consumers often borrow money in order to pretend they’re doing better financially than they really are.
Borrowing money is usually not a good idea: When you borrow money, you may find that you cannot handle seeing low checking account balance, which can lead to deeper debt problems.
Payday Loans
Payday loans are a bad option for someone looking for a long-term solution. They are expensive, and there is a high chance that the person will not be able to pay back the loan.
The interest that is charged is also high, and it can add up quickly.
Write bullet points about what happens with a payday loan
Payday loans can trap people in a cycle of debt, as they are often unable to pay back the loan in full on the due date.
When someone takes out a payday loan, they are borrowing money from a lender in a short amount of time, usually two or three days.
Payday loans are often expensive, with interest rates that can be above 300%.
Debt Consolidation Loans
Debt consolidation can be a good way to manage your debt because it can result in a lower monthly payment and extended payments may impact your financial plan. You can use a debt consolidation calculator to estimate how much debt you can afford before taking out a consolidation loan.
Debt consolidation loans also provide convenience because they have lower interest rates than payday loans. However, be careful when consolidating your debt because it is possible to overspend and lose your introductory APR.
You may be able to pay off your debt with one monthly payment: A consolidation loan often results in a much lower monthly payment than all of your previous monthly payments combined.
Extended payments may impact your financial plan: Take a look at how these extended payments will impact your financial planning.
You can estimate how much debt you can comfortably afford: use this tool – Tally .
It is possible to overspend with debt consolidation: If you spend more money than you planned on your day-to-day expenses, this could increase your debt. Consider if the purchase is necessary or if it can be delayed.
You may lose your introductory APR: If you fall more than 60 days behind on payments, you will likely lose your introductory APR and may even trigger a penalty interest rate.
You need to be careful when transferring a balance: Transferring a balance can also forfeit your grace period and you’ll need to pay interest on new purchases charged to the new card.
What type of payment method is best for sticking to a budget?
There are a variety of payment methods available, and each has its own benefits and drawbacks. It’s important to choose the payment method that’s best suited for your business and budget.
A payment method that allows you to stick to a budget is the best option.
FAQs
There are three main types of payment methods: cash, debit cards, credit cards, and cash-based payments.
The envelope budgeting method is a simple way to create a budget. You will need envelopes and divide your money up into the different categories that you spend money on. You will then put the corresponding amount of money into each envelope. This method can be helpful if you have a hard time sticking to a budget.
The zero-based budgeting method is a more methodical way to create a budget. With this method, you track every penny that you earn and spend. This can help you to see where your money is going and make adjustments accordingly.
A debit card is a plastic card that is linked to a checking account. Customers can spend money by drawing on funds they have already deposited. An overdraft on a debit card can lead to overdraft fees, which have high-interest rates.
A credit card is a plastic card that allows customers to borrow money up to a certain limit in order to purchase items or withdraw cash. Using a credit card can help build credit or improve your credit score.
There are a few different ways to use a credit card. You can use it to check your balance and review your spending history, which can be helpful in staying accountable.
Credit cards also offer online tools which make the analysis of your spending easier which can be helpful in tracking your budget.
Finally, you can use a credit card to rebuild your credit score by using it responsibly and paying off the balance in full each month.
Which payment type can help you stick to a budget?
When it comes to choosing a payment type that will help you stick to a budget, there is no one-size-fits-all solution.
The best payment method for you will depend on your specific needs and preferences.
When you are creating a budget, it is important to consider which payment type will help you stay on budget. Different payment types work better for different people, so it is important to experiment and find the one that works best for you.
As I stated for me, I have learned how to use credit cards to maximize cash back. But, I learned how to budget with cash when first starting.
Please pay attention to your budget and how it changes over time, as different payment types may work better at different stages of your life.
Consequently, I hope that this guide has given you a better understanding of the different payment types available and helped you narrow down your options. There are a variety of payment types that can help you stick to a budget, so it’s important to research each one carefully.
I highly recommend using an app to track your expenses and know where you spend your money. By developing a budget and choosing the right payment type, you can stick to your financial goals.
Know someone else that needs this, too? Then, please share!!
Save more, spend smarter, and make your money go further
Swiping your magnetic-stripe credit card will soon become a thing of the past.
In the wake of widespread consumer data breaches like those at Target and Home Depot – plus increasing rates of counterfeit fraud – credit card companies nationwide are issuing new smart chip-enabled cards to improve payment security and provide consumers with greater protection against fraud.
Have you received your new chip-equipped credit cards in the mail yet? If not, you will soon: October 2015 is the “liability shift” deadline between banks and merchants. If a business doesn’t offer chip-enabled transactions after October, the liability for any resulting credit card fraud will fall to the business-owner and no longer the bank.
Here’s the scoop on what you need to know about chip-enabled cards, or as they are more formally known, EMV cards:
What’s EMV?
EMV cards – named after its original developers Europay, MasterCard, and Visa – are nearly identical to the typical American credit card, but they are encrypted with a small computer chip rather than a magnetic stripe. You will notice a small gold or silver metallic square on the front of your card. While this square contains the same information as magnetic stripe cards, such as name, card number, and expiration date, each transaction generates unique, dynamic data. This is the game changing technology that makes it difficult for anyone but the rightful owner to use the card, and it protects against the creation of counterfeit cards.
EMV cards have been the standard around the world for decades, but America is finally catching up: half of the world’s credit card fraud occurs in the US!
How Do EMV Cards Work?
Instead of swiping your card, you’ll insert your card into a terminal slot. This action is called “dipping”! The data then flows between the card chip and the issuing financial institution to verify the card’s legitimacy. Because these cards are read in this new, different way, you should know that the transaction is not as quick as a basic swipe; expect a slightly longer time at the point of sale. Though most of the world operates on a “chip and pin” system, Americans will still sign credit card receipts for the time being.
Keep in mind, your card will still have an magnetic stripe, too. Not all businesses will support “dipping” by October. In fact, a recent Intuit survey found that 42% of small businesses haven’t heard about the deadline yet!
Can I Still be a Victim of Fraud?
Though this new technology should give you greater peace of mind, smart-chips do not entirely eliminate credit card fraud. You will still need to monitor your credit card accounts and credit score diligently – at least once a month. That’s the best way to detect fraud in the early stages and keep your identify safe.
– Vera Gibbons,Mint Contributor and Personal Finance expert
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