Debts Archives - Hanover Mortgages

January 13, 2022

Got Credit Card Debt? Get Rid of It with the Bright Money App

Credit card debt is the worst, am I right? And the really nasty part is, your credit card companies are counting on you falling behind on your payments. That’s how they really make their money.

Sure, it’s awfully handy to swipe that plastic whenever you want something. But before you know it, you’ve got an outstanding balance you can’t pay off that month. It sticks around month after month, like a black cloud looming over your head.

Then your credit card companies get to charge you stiff interest rates on your unpaid balance.

Had enough of this? Consider fighting back by putting technology to work for you. Check out Bright, an app that’s designed to help you pay down your credit card debt.

It uses artificial intelligence to analyze your income and spending, and then it pays down your credit cards for you in the smartest, most strategic way possible.

Best of all? The whole thing is automated, so Bright helps you pay off your credit cards without you thinking about it or worrying about it.

A Personalized Plan for You

The app, available for iOS or Android, offers a 10-day free trial. So you can see for yourself how it works.

Once you sign up, Bright uses an artificial-intelligence system called MoneyScience to help you manage your money and your debt. It studies your bank account and your credit card accounts to come up with a personalized plan for how you’ll get out of debt.

Bright takes a look at:

Your outstanding balances
What minimum payments you have due
What interest rates each card is charging you
What you can afford to pay each month

Using 34 different algorithms, the app uses this data to calculate payments that get you debt-free faster, based on what you can afford.

Every two or three days, it withdraws a small sum of money from your bank account and puts it in your Bright account. We’re talking maybe $5 or $10 at a time. The app uses those funds to make your monthly credit card payments for you.

You’re Still in Control

Although Bright will automate your credit card payments, it’s not like it’s some runaway computer program that you can’t control.

If you’re suddenly in need of more cash to cover bills, you can move funds from your Bright account back to your bank account whenever you want.

You can also put a limit on how much money Bright can withdraw from your bank account for credit card payments.

As Bright’s powerful artificial intelligence engine learns more about your income and spending habits, it’ll adjust how much it withdraws per week.

What’s It Cost?

Bright costs $6.99 per month if you sign up for an annual plan. The powerful tool can earn you that money back with what it’ll save you on credit card interest.

If you choose a six-month semi-annual plan, it costs $8.99 per month.

Or, if you prefer to go on a month-to-month basis with no commitments, the app costs $14.99 a month.

This is important: No matter which plan you choose, you still get a 10-day free trial so you can make sure that Bright is right for you.

Is This Safe?

Good question! Yes, it’s totally safe and secure.

The money in your Bright account is FDIC-insured just like a bank account.

Bright also uses bank-level encryption to keep your data and your money secure.

Do Users Like the App?

Bright Money generally gets good reviews from users, who find it convenient to automate their credit card payments. That way they don’t have to worry about it anymore, and some users have found the app’s impact to be profound.

The average user pays off $700 in credit card debt in a matter of months, the company says.

The Bright Money app is rated 4.6 out of 5 in Apple’s App Store from 3,800 users’ rankings. It’s also rated a 4.6 in the Google Play Store.

If you need customer support, you can email the company, or you can call on weekdays. You can also reach a real human 24/7 via chat.

The Bottom Line

Bright has a couple more offerings. You can use the app to save up a rainy day fund, or improve your credit score by taking out a small line of credit through Bright’s credit builder system.

However, credit card debt is still the app’s main focus.

This is an innovative money management app, and it’s a powerful tool for fighting credit card debt.

You can always change your mind after the 10-day free trial. It only takes a few minutes to sign up.

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He knows a lot about credit card debt from personal experience.

<!–

–>

Source: thepennyhoarder.com

January 13, 2022

Best Online Life Insurance Companies for 2022

@media (max-width: 1200px) body .novashare-buttons.novashare-inline .novashare-button-icon width: 100%; .novashare-inline .novashare-button .novashare-button-block background: #000000; .novashare-inline .novashare-button .novashare-border border-color: #000000; .novashare-inline .novashare-button .novashare-inverse color: #000000;

Additional Resources

In the old days, applying for life insurance was tedious, time-consuming, and stressful. The process took weeks to complete, much of that spent waiting on the results of a medical exam. And you didn’t know how much your policy would cost until everything was said and done — or even if you’d qualify for a policy at all.

Fortunately, the old days are over, at least for life insurance applicants who apply online. Also known as algorithmic underwriters or algorithmic insurance companies, online life insurance companies give you an up-or-down decision within minutes, often without a medical exam or many questions about your medical history. You can apply over lunch or dinner and then get on with life.

Best Online Life Insurance Companies

Not all online life insurance companies are created equal, of course. These are among the very best.

Each of the companies on this list does at least one thing really well, and our top pick offers the best overall value for the widest number of potential applicants. Here’s what you need to know about each.

Best Overall: Ladder

Ladder is one of the best life insurance companies. It tops our list of the best online life insurance companies thanks to a potent collection of strengths:

Up to $3 million in term life insurance coverage without a medical exam — double what most competitors allow
In-home medical exams for policies larger than $3 million — the application process remains all-online otherwise
Choose from 10- to 30-year term coverage options
Option to scale down coverage over time without reapplying
Approval within minutes for many applicants
Backed by national insurers with strong financial strength ratings

Best for Fast Approval: Bestow

Bestow earns its spot as one of the best no-exam life insurance companies thanks to a streamlined digital application and underwriting process that produces results in as little as five minutes. If Bestow doesn’t need any additional information from you, you can apply for life insurance and get an up-or-down approval decision during your coffee break.

Its features include:

Term life insurance only
Term lengths from 10 to 30 years
Policy death benefits as low as $50,000
Coverage up to $1.5 million per policy with no medical exam required
Open to applicants ages 18 to 60
A+ (Superior) financial strength rating from A.M. Best

Best Premium Membership Rider: Haven Life

Haven Life is one of the best online term life insurance companies around, but it really shines for a reason that’s not directly related to insurance. Haven Life offers the best premium membership rider — an optional add-on filled with potentially valuable features.

That rider is Haven Life Plus. It’s free to policyholders wherever it’s offered and provides at least $150 in annual value to policyholders. It includes:

A customizable and legally binding will that you can store online
A subscription to Adaptiv, a workout video and music library
A subscription to Timeshifter, an app designed to fight jet lag
A subscription to Lifesuite, a secure digital storage vault
A 15% discount on eligible MinuteClinic products and services

Haven Life has some additional features worth noting, including:

Term life coverage up to $3 million with a medical exam
No-exam coverage up to $500,000 through Haven Simple
AgeUp, an annuity product that can supplement your retirement income after you turn 90

Best for Nontraditional Underwriting: Sproutt

Sproutt is an online life insurance broker that uses an innovative model called the Quality of Life Index (QL Index) to assess life insurance applicants’ risk.

While it doesn’t completely replace traditional considerations in Sproutt’s application process — or in the underwriting processes of the insurers Sproutt works with — the QL Index goes beyond the usual medical and lifestyle information to consider factors like:

How often you exercise and what kind of exercise you do
How much and how well you sleep
Your emotional health
Your eating habits and overall nutrition
Your work-life balance

Additional features:

Access to fully medically underwritten term life, no-exam life (simple issue life insurance), and guaranteed issue life insurance
Multiple types of permanent life insurance available, including whole, universal, and variable universal
Get quotes within minutes
Apply directly with the insurer with help from Sproutt agents

Best for Guaranteed Issue Life Insurance: Ethos

Ethos is rare among online life insurance companies because it offers permanent life insurance. Most competitors stick with term life.

Ethos’ permanent life insurance offering is a low-value whole life insurance policy for people between the ages of 66 and 85. Its features include:

Death benefit between $1,000 and $30,000
Guaranteed issue life insurance, meaning you can’t be turned down for medical reasons
No expiration, meaning the policy is effective until you die or stop paying premiums
Guaranteed level premiums, meaning your premiums won’t increase over time
Accidental death is covered right away
Nonaccidental death coverage kicks in two to three years after the policy effective date in most cases

Ethos’s term life offering is no slouch either. Its benefits include:

Amount of coverage ranges from $20,000 to $1.5 million
10- to 30-year terms
Guaranteed renewable after the term ends, albeit at a higher premium

Best for Higher Coverage Limits: Fabric

Fabric offers online life insurance policies with coverage up to $5 million. That’s an unusually high limit for a streamlined, all-online application process. And Fabric offers a no-exam option for applicants with uncomplicated health histories, although not up to the $5 million coverage limit.

Additional features:

Accidental death coverage available up to $500,000
A+ (Superior) financial strength rating
Low pricing, with monthly rates starting as low as $1 for $1 million in coverage
Will-making services available
Secure online vault for financial and personal documents at no additional cost

Best for Price Transparency: Walnut

Walnut sets itself apart with what it calls “price-first” term life insurance. Basically, you know how much you’ll pay for 10-year term coverage before you apply, making it easier to fit a new monthly payment into your budget (or decide to go a different direction). You never have to take a medical exam as a condition of coverage.

Walnut also offers a broad lineup of value-adds through a premium membership program included in the cost of insurance. Starting at $10 per month, this includes subscriptions to:

Headspace Plus, an app offering guided meditation and self-directed therapy
ClassPass Digital, a library of home workout videos
Dashlane Premium, a password manager and auto-fill app

According to Walnut, this package is a $25 monthly value. If you want even more, upgrade to a Digital Protection membership for an additional monthly fee and enjoy:

24/7 access to a cyber support helpline
Up to $1 million in stolen funds reimbursement if you’re the victim of identity theft

Best Online Broker for Life Insurance Only: Quotacy

Quotacy is an online insurance broker specializing in life insurance quotes. In fact, a life insurance quote is the only type of insurance quote you can get through Quotacy.

Quotacy’s narrow focus on life insurance gives it some advantages over other online insurance brokers:

Access to term life policies as long as 40 years — elsewhere, policies generally top out at 30 years
Access to a variety of types of life insurance, including term life
Multiple permanent life insurance options, including whole life policies and universal life policies
A five-minute, all-online quote creation process
Dedicated agents who understand life insurance
A vast insurer network that ensures competitive life insurance rates

Best Online Broker for Other Policy Types and Bundles: Policygenius

Policygenius is an all-purpose online insurance quote aggregator. Unlike Quotacy, it focuses on a variety of different types of insurance, including:

If you’re shopping for more than one type of insurance right now, Policygenius is your best choice for fast answers. And if you’re paired with a life insurance provider that offers other types of insurance too, there’s a good chance Policygenius can hook you up with a money-saving bundle discount.

Methodology: How We Select the Best Online Life Insurance Companies

We use several criteria to evaluate online life insurance companies and select the very best for our readers. Some relate to the application process or policy underwriting, while others speak to the overall user experience and quality of the insurers themselves.

Financial Strength and Customer Satisfaction

Third-party financial strength ratings assess insurers’ ability to pay out death benefits in the future. When possible, we use ratings from A.M. Best, a highly respected rating agency that specializes in the insurance industry.

Customer satisfaction is another important measure of insurer quality. The top authority for customer satisfaction ratings in this industry is J.D. Power, which ranks life insurance companies and life insurance products annually.

Policy Types Available

Many online life insurance companies offer term life insurance only. Those insurers that also offer permanent life insurance coverage generally require medical underwriting for it, lengthening the application process.

That said, if you prefer to have both options available when you apply, you’ll want to focus your attention on insurers that can accommodate.

Term Options

Online term life insurance policies typically range from 10 to 30 years. Some insurers offer shorter-term policies, down to five or even two years.

Unless otherwise specified in the terms of the policy, you can renew your policy once the initial term expires. However, this may require another round of underwriting and will definitely involve a higher premium.

No-Medical-Exam Options

One of the core benefits of online life insurance is the seamless application process. This process is helped along in many cases by a lack of medical underwriting.

The insurer might ask some basic questions about your personal and family medical history and lifestyle. It’ll check your answers against your health records as well. But it won’t require you to undergo a medical exam as a condition of coverage.

No-medical-exam coverage costs more than fully medically underwritten coverage because it provides less information about your risk of premature death. However, this is a price many would-be policyholders are willing to pay, especially if they have reason to believe a medical exam would turn up health-related red flags.

The best insurers for no-exam coverage have high coverage limits — above $1 million — and terms of at least 20 years for younger and middle-aged applicants.

Coverage Amount (Death Benefit)

Online life insurance death benefits typically range from as low as $25,000 to $50,000 for final expenses insurance to upwards of $1.5 million. If you have higher life insurance needs, look to an insurer that can accommodate — Haven Life’s coverage amounts range up to $3 million, for example.

Policy Add-ons (Riders)

Many online life insurance companies offer policy add-ons, also known as riders. Some of the most common include:

Return of premium riders, which reimburse the policyholder for premiums paid during the policy term
Accelerated death benefit, which allows terminally ill policyholders to claim a portion of the death benefit before they die
Accidental death rider, which pays out an additional death benefit if the policyholder dies in an accident covered by the rider

Online Life Insurance FAQs

You have questions about getting life insurance online. We have answers.

Do You Need to Get a Medical Exam When You Apply for Life Insurance Online?

Often, no. If you’re applying for a life insurance policy worth less than $500,000, you probably won’t have to get a medical exam if you don’t want to. Many insurers offer no-medical-exam coverage as high as $1 million or $1.5 million, and a few go higher still — up to $2 million or $3 million.

That said, if your top concern is paying as little as possible for coverage and you have no known health issues, opt for the medical exam. As long as the exam doesn’t raise any red flags about your health, you’ll pay less for a policy that requires one.

How Much Does Online Life Insurance Cost?

How much you pay for an online life insurance policy depends on a number of factors:

The policy value — coverage amount or death benefit
The policy term — the longer the term, the higher the premium
The type of policy — term life is always cheaper than permanent life
Your personal medical history
Your family medical history
The results of your life insurance medical exam if you take one
Your age when you apply
Your lifestyle, including whether you use or have ever used tobacco and whether you have any risky hobbies

The best way to estimate your life insurance cost is to use an online quote aggregator like Policygenius or Quotacy.

What Do You Need to Apply for Life Insurance Online?

To apply for life insurance online, you’ll need some or all of the following:

A good idea of how much life insurance you need
Basic personal information, like your address and Social Security number
Basic financial information, such as your annual income
Your height and weight
Your recent medical history
Information about your lifestyle and personal habits

If required, you’ll need to take a medical exam in the days or weeks after you send in your initial application for coverage. Many insurers offer in-home exams, but some ask you to visit a testing facility.

You’ll also need to give your consent for the insurer to pull your Medical Information Bureau file. This file contains important information about your medical history and previous insurance applications, helping would-be insurers check the information you provide on your application against the public record.

Is Life Insurance Worth It?

Often, yes. One of the most harmful myths about life insurance is that only certain people need it, such as parents of young children or people with lots of debt. In fact, there are many reasons to buy life insurance:

Covering final expenses, such as funeral and burial costs
Preventing major debts from passing to a surviving spouse or partner
Covering higher costs borne by survivors, such as child care and health insurance
Covering future education expenses for your children
Protecting your business partners’ financial interests
Maintaining your survivors’ standard of living
Creating a store of cash value that you can borrow against during your lifetime

Chances are, at least one of these reasons applies to you. And if that’s the case, some form of life insurance is probably worth it.

How to Choose the Best Online Life Insurance Company

These are the best online life insurance companies on the market right now, but that doesn’t mean they’re interchangeable. The best choice for your life insurance needs might not be the best choice for your neighbor — or even your spouse.

To choose the best online life insurer for you, think about why you’re applying for life insurance in the first place.

Do you want an affordable term life policy that lasts until you pay off your house in 15 years? Do you want to make sure your future kids’ college education is paid for, 20 or 25 years down the road? Do you want a policy that lasts indefinitely, creating a cash value reserve that you can tap as you age and possibly establishing generational wealth for your heirs?

Likewise, think about what you want out of your relationship with your insurer, beginning with the application process. Are you willing to pay more to forgo medical underwriting? Or do you prefer a seamless, super-fast application process that produces an answer — and an active policy — within minutes?

It’s your call. Fortunately, you can’t go wrong with any of the options on this list.

.kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-table-of-content-wrappadding:30px 30px 30px 30px;background-color:#f9fafa;border-color:#cacaca;border-width:1px 1px 1px 1px;.kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-table-of-contents-titlefont-size:14px;line-height:18px;letter-spacing:0.06px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;text-transform:uppercase;.kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-table-of-content-wrap .kb-table-of-content-listcolor:#001c29;font-size:14px;line-height:21px;letter-spacing:0.01px;font-family:-apple-system,BlinkMacSystemFont,”Segoe UI”,Roboto,Oxygen-Sans,Ubuntu,Cantarell,”Helvetica Neue”,sans-serif, “Apple Color Emoji”, “Segoe UI Emoji”, “Segoe UI Symbol”;font-weight:inherit;.kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-table-of-content-wrap .kb-table-of-content-list .kb-table-of-contents__entry:hovercolor:#16928d;.kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-table-of-content-list limargin-bottom:7px;.kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-table-of-content-list li .kb-table-of-contents-list-submargin-top:7px;.kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-toggle-icon-style-basiccircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-toggle-icon-style-arrowcircle .kb-table-of-contents-icon-trigger:before, .kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:after, .kb-table-of-content-nav.kb-table-of-content-id_9bf7f1-5e .kb-toggle-icon-style-xclosecircle .kb-table-of-contents-icon-trigger:beforebackground-color:#f9fafa;

Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.

Source: moneycrashers.com

January 12, 2022

Inter-Vivos Trusts: How Do They Work?

Inter-Vivos Trusts: How Do They Work? – SmartAsset Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right

Tap on the profile icon to edit
your financial details.

An inter-vivos trust or living trust is a legal arrangement that allows a person to transfer ownership of assets to a trust while they are still alive. Inter-vivos trusts distribute property to beneficiaries when a person dies and helps an estate avoid probate. A financial advisor can guide you through the process of creating an inter-vivos trust and address other estate planning needs.

How Inter-Vivos Trusts Work

While a testamentary trust takes effect when the grantor (person who created it) dies, an inter-vivos trust allows a person or married couple to transfer assets like money, real estate or investments to a separate entity while they are still alive.

An inter-vivos trust can be either revocable or irrevocable. When a living trust is revocable, the trustor can change or cancel it, and can even act as its trustee (person who manages the trust). An irrevocable trust, on the other hand, may not be changed once it is created. Assets transferred to an irrevocable trust cannot be transmitted back to the original owner.

Whether it’s revocable or irrevocable, an inter-vivos trust must have someone assigned as the trustee. Even if the person who established the trust opts to serve as trustee, they still must name a successor trustee to manage the trust when they die. A grantor must also name beneficiaries who will receive assets from the trust at the time of their death.

Last but not least, an inter-vivos trust does not render a will unnecessary. In fact, a will is still needed to execute the trust. Wills can also serve as a backup of sorts and account for any assets not included in the trust. For instance, if you acquire real estate later in life and never added it to the trust, a will can ensure the property is transferred to the proper person at the time of your death.

Advantages of Inter-Vivos Trusts

Property transferred to an inter-vivos trust is not subject to probate, the legal procedure by which a deceased person’s will is processed. This court-supervised process ensures that an estate’s assets are inventoried and distributed properly and that its debts are paid.

By skipping these lengthy and potentially costly proceedings, the assets held by a trust can be smoothly transferred to beneficiaries without becoming public record like a will do.

There are also specific benefits associated with revocable and irrevocable living trusts. A revocable trust gives the grantor the option to add new beneficiaries, remove assets or make other changes. While flexibility is the main advantage of a revocable trust, their counterparts offer more protection for the assets they hold. When a grantor establishes an irrevocable trust, they give up ownership of the assets held by the trust, which protects them from creditors.

How to Create an Inter-Vivos Trust

There are two primary ways to create an inter-vivos trust: enlisting the help of a professional or doing it yourself. A financial advisor, especially one with the accredited estate planner (AEP) designation, or an estate planning attorney can streamline the process for you and ensure that your trust is created properly.

However, a basic living trust doesn’t have to be overly complicated and can even be set up online. If you’re looking to go it alone, you will first need to decide what kind of trust you want to establish and the assets that you’ll transfer to it. Next, you’ll have to pick a trustee and beneficiaries. Then, you’ll create a Declaration of Trust online and sign it in front of a notary. Lastly, you’ll need to transfer the titles of trust property to the trustee (even if it’s you) and then safely store the document.

While it may save you money, be aware of the potential pitfalls and dangers of DIY estate planning, which can create additional problems for beneficiaries when you’re gone.

Bottom Line

An inter-vivos trust is an estate planning tool that helps a person or couple transfer assets to beneficiaries without exposing their estate to the probate system. While some trusts go into effect when a person dies, an inter-vivos or living trust is created when the grantor is still alive. They can be revocable or irrevocable, and can be created with the help of a professional or one’s own.

Estate Planning Tips

As mentioned above, a financial advisor who specializes in estate planning can help you navigate what can be a complicated process of planning an estate. SmartAsset’s free matching tool can pair you with up to three local advisors in a matter of minutes. If you’re ready to find a professional, get started now.
Depending on the size of your estate and where you live, your assets may be subject to state or federal estate taxes. But remember that up to $11.7 million in assets are exempt from federal estate taxes in 2021. Married couples are also permitted to tap their spouse’s unused portion of this exemption limit, effectively allowing couples to transfer a combined $23.4 million to beneficiaries free of federal estate taxes.

Photo credit: ©iStock.com/Andrii Dodonov, ©iStock.com/fizkes, ©iStock.com/shapecharge

Patrick Villanova, CEPF® Patrick Villanova is a writer for SmartAsset, covering a variety of personal finance topics, including retirement and investing. Before joining SmartAsset, Patrick worked as an editor at The Jersey Journal. His work has also appeared on NJ.com and in The Star-Ledger. Patrick is a graduate of the University of New Hampshire, where he studied English and developed his love of writing. In his free time, he enjoys hiking, trying out new recipes in the kitchen and watching his beloved New York sports teams. A New Jersey native, he currently lives in Jersey City.

Here’s What to Do Before Debt Collectors Start Calling

Take your car insurance bill, for example. When’s the last time you checked car insurance prices, anyway? You should shop your options every six months or so — it could save you some serious money and help you avoid missed payments.
Make sure your bad credit doesn’t give the debt collectors more ammo to use against you. Sign up for free (it only takes about 90 seconds) and see how much you could improve your score.
Kari Faber is a staff writer at The Penny Hoarder.
***Like Cooper, 60% of Credit Sesame members see an increase in their credit score; 50% see at least a 10-point increase, and 20% see at least a 50-point increase after 180 days.

1. Get Rid of Dings on Your Credit Report and Raise Your Score

If you went to the hospital without insurance or you haven’t met your deductible yet, doctors’ bills can be pretty steep.
Get the Penny Hoarder Daily
A website called Insure.com makes it super easy to compare car insurance prices. All you have to do is enter your ZIP code and your age, and it’ll show you your options.
If your bills are lower, there’s less of a chance you’ll miss a payment due to lack of funds. And no missed payments means no debt collectors calling you every single day. But a lot of these money-sucking bills are ones you can’t cancel.
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.
Most Americans have some sort of debt — and not all of it is good debt, like a mortgage, car loan or student loans, which are considered good investments.

2. Stop Paying Your Credit Card Company Insane Interest Rates

Privacy Policy
The good news? A free website called Credit Sesame makes it easy to put your credit score on track to reach your debt-free goals. We even talked to one guy, James Cooper, of Atlanta, who used Credit Sesame to raise his credit score nearly 300 points in six months.*** He says they showed him exactly what to do — he was even able to open his first credit card.
Using Insure.com, people have saved an average of 9 a year.
What could adding 300 points to your score mean for your goals? It could easily save you thousands of dollars over the life of a car loan or mortgage.
Yup. That could be 0 back in your pocket just for taking a few minutes to look at your options.
Source: thepennyhoarder.com

3. Lower Your Bills to Avoid Missed Payments

While it doesn’t make the debt disappear (you are still liable for these payments), a payment plan makes paying off these debts more manageable and will keep the debt collectors off your back so long as you make each monthly payment.
If you have a low score with a few dings on your report, you won’t get access to decent interest rates on your loans. That means you’ll be paying more in interest and less on the actual loan amount — taking you sometimes years longer to pay it off and thousands of dollars more. If it’s a mortgage, the cost of your poor credit score could mean tens of thousands of dollars gone to waste.
The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 2.49% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month.
Thankfully, doctors and hospitals can be willing to work with you. Some medical providers will offer a discount if you’re strapped for cash, and most are open to payment plans. So instead of 0 out of pocket today, you could be paying a little over a month for the next six months.
If you have credit card debt, you know. The anxiety, the interest rates, the fear you’re never going to escape and the debt collectors will set up camp on your doorstep forever…

4. Try to Negotiate Your Payments and Get On a Payment Plan

In just 90 seconds, Credit Sesame will give you access to your credit score, any debt-carrying accounts and a handful of personalized tips to improve your score. You’ll even be able to spot any errors holding you back (one in five reports have one).
Ready to stop worrying about money?
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.
Debt happens.
Credit Sesame does not guarantee any of these results, and some may even see a decrease in their credit score. Any score improvement is the result of many factors, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning and developing better credit habits.
What does your credit score have to do with debt? Turns out — it can be a major factor in you getting out of debt quicker. <!–

–>

Credit card debt, medical debt, overdue bills and high interest loans are just a few of the types of bad debt that can wreak havoc on your life. They can destroy your credit, snowball into even more debt and, yep, have the debt collectors hounding you to pay up.

January 12, 2022

Main Causes of Inflation

You may have heard that in November 2021, inflation reached the highest rate in 30 years, but what does that mean, and how does it impact you? Let’s start with the basics.

Inflation is an economic phenomenon where the value of goods and services in an economy increases over time. Have you ever heard someone talking about how, back in the ’60s, you could get a Coke for a nickel? The reason why a soda now costs $2 is because of inflation—the relative value of money has gone down compared to the price of goods.

In general, there are two main types of inflation that economists care about. In this post, we’ll explain those two causes, explain factors that influence inflation, explore ways experts suggest we counteract inflation, and what you can do about it. But first, we’ll dive into the current causes of inflation and how they’re impacting your current buying power.

4 Main Causes of Inflation in Our Current Economy

In the last few months, you may have noticed that prices have been rising on everything from grocery items to gas, with consumer prices up 6.8% compared to this time last year. That’s the power of inflation. But what’s currently causing inflation and this undesirable strain on your wallet?

With respect to the current economy, there are a few causes of inflation:

1. Increase in the Money Supply:

An increase in the money supply is meant to help stimulate the economy by helping to put more money in the hands of consumers. While this might sound like a positive shift, it can actually have negative influences on the economy, like contributing to inflation.

The Federal Reserve has printed trillions of dollars over the last two years, which has contributed to the devaluation of U.S. currency and the high inflation rate we’re currently experiencing—and is being speculated to continue.

Not only that, but the money supply has increased faster than the rate of production, which contributes to shortages. And, with more money in circulation, consumers have more to spend—which in turn is spurring greater consumer demand.

However, with demand outpacing production, there are many shortages across the country.

2. Supply Chain Disruption:

Whether you’re in the grocery store or waiting for something to ship from overseas, you’ve likely been having a hard time getting ahold of certain goods in recent months. There are a few factors that are playing into this current issue.

First, during the height of the pandemic, many companies decreased output because consumers weren’t spending. However, they are now and companies have been trying to play catch up.

Pair that with the shortages in an all-around shortage of supplies to make certain goods, and it’s become a compounding issue.

And we haven’t even gotten to the traffic jams at the various ports throughout the country that have led to a massive amount of goods being stuck for long periods of time, sometimes months. With goods stuck at these ports and unable to be unloaded, it means that many shelves will continue to sit empty.

3. Overnment-Sponsored Unemployment:

In response to the spike in job losses we saw in 2020, there were increases and expansions to existing unemployment programs both on the state and federal level. While this may have helped get many people back on their feet, with many people unwilling to go back to work for previous wages—combined with concerns over health and safety—we’re now seeing long-term impacts that are affecting the current inflation.

The gist of the issue is that government-sponsored unemployment benefits pay workers not to work, which causes a shortage of workers. Ultimately, this leads to businesses having to raise wages above the unemployment benefits.

As such, businesses are having to pivot and restructure their approach to compensation and employment. While some businesses will be able to adapt to the demand for higher wages in order to ensure they have the staff they need to support their operations, many small businesses will not.

4. Poor Government Policies:

Bad government policies can impact inflation—most specific to our current circumstances are those regarding fossil fuels. If you have a car, you’ve likely seen gas prices rising over the last year.

While these policies need to be addressed, this isn’t a quick fix. U.S. oil production and refining have been down this year due to several causes including Hurricane Ida, which impacted oil supply. Pair that with oil-exporting countries not providing enough, and there are supply constraints on both sides of the equation.

With supply constraints and the current increase in demand for gasoline, prices don’t look to be coming back down in the near future.

Now that we have a better idea of what factors are contributing to inflation most recently, let’s take a look at inflation causes through a more generalized lens.

What Are the General Causes of Inflation?

It’s important to take the time to dive deeper into inflation as a whole so you can better understand how and why inflation occurs and how that plays into the economic impact consumers experience.

There are two broad, general causes of inflation. Each is also its own type of inflation and requires its own unique response from policymakers. The two main causes of inflation are:

Demand-pull inflation: Demand-pull inflation occurs in a strong economy. Incomes are increasing, people are being paid more, more people are at work, and they are demanding more goods and services. This decreases the total number of goods and services available—more people can afford the limited supply of existing goods and services. This, in turn, raises prices. In general, some demand-pull inflation is a sign of a functioning economy, as people are working and earning enough money to demand everything that’s produced.
Cost-push inflation: Cost-push inflation is caused by an increase in the cost of goods due to causes on the supply end. For example, if the costs of raw materials go up significantly, and businesses cannot keep up production of manufactured goods, this causes the manufactured goods sold at the market to be more expensive. Natural disasters, pandemics, and rising oil prices may all result in cost-push inflation, for example. Many different economic conditions can result in cost-push inflation, and it’s something policymakers may worry about, as cost-push inflation can be difficult to rein in.

We’ll go into more detail below about the typical causes of cost-push and demand-pull inflation. For more about inflation, check out the definition of inflation and our free inflation calculator here.

Causes of Demand-Pull Inflation

Demand-pull inflation happens whenever there’s an increase in the amount of goods and services that people want to purchase. Some of the most common causes of demand-pull inflation include:

Economic growth: As economies grow, and people have more money, they feel more confident in their ability to buy goods and services. This causes the costs of goods and services to increase, as a greater number of people can now afford a larger amount of scarce products.

The expectation of inflation: Sometimes, if enough people, especially large companies, expect inflation to come, they increase their prices in anticipation of coming inflation. This expectation itself then causes its own inflation.

Government spending: Some people believe that excessive government spending may cause inflation. For example, enhanced social benefits programs that supply people with the money they need to purchase essential goods they need to live may slightly increase consumer purchasing power. Additionally, some monetary policies, like printing more money to fund spending, may also contribute to inflation.

Increased demand for exports: When the demand for exports increases, this creates a complicated situation where the currencies involved in the exchange may both experience some inflation.

Causes of Cost-Push Inflation

Cost-push inflation occurs whenever the supply end of the production chain experiences cost increases. That includes situations like:

Raw material costs: Sometimes, the price for raw materials increases. For example, there may be a shortage of a certain type of metal that a computer manufacturer needs to produce computer chips. This will increase the cost of the consumer item, the computer, as the company will likely have to spend more money to obtain the metal they need. Increased prices for oil are another common example—when gas is more expensive, companies have to pay more to ship their products around, so they raise their prices.

Labor costs increase: If the price of labor goes up, the cost of the goods the labor is used to produce is likely to go up as well. For example, if workers are being underpaid, goods and services may have artificially low prices. Then, if workers organize for a fair or living wage, and the cost of labor goes up, goods and services may begin to cost more than the artificially suppressed price, causing inflation.
Unforeseen production obstacles: The goods and services we buy often have parts from all over the world, and require massive amounts of travel to arrive at our local stores. If there’s a drought in a country that supplies a certain crop to an American manufacturer, or a hurricane near an important port, or a pandemic that makes it dangerous for workers to labor in close proximity to each other, companies may face steep increases in the cost of production.

In addition to these two broad types of inflation, there are also many factors that can influence inflation. We’ll go over those next.

Factors That Can Influence Inflation

When policymakers and other experts are concerned about inflation, the following are some of the most common factors that they monitor:

Cost of production

If the cost of production increases, it’s likely that companies will also increase the cost of goods and services. As noted above, this is one of the causes of cost-push inflation.

Prices of goods

When the prices of goods go up (whether because of cost-push or demand-pull inflation), this is a sign that general inflation across the economy may be looming.

Demand for goods

If the demand for goods is increasing—for example, because there is low unemployment—it’s likely that the cost for goods will increase too, at least before production can catch up. That may spur some inflation.

Skilled labor availability

The availability of skilled labor is another potential cause of inflation. If labor necessary to produce certain products is scarce, then it’s likely the cost of those products will increase.

New technology

New technologies often cause disruptions to sectors of the economy. Depending on the way this goes, it may increase demand for certain products, may increase supply, or may increase costs somewhere along the supply chain. All of these factors can affect inflation.

Current money supply

The amount of money currently in circulation can also have an effect on the state of inflation. When there is more money in the economy, it may make the relative value of a unit of currency (like $1) go down. This is why some economists believe that printing more money to pay for government spending could result in inflation.

Counteracting the Effects of Inflation

A little bit of inflation is normal in most economies, but rapid inflation can be detrimental to society, as people can no longer afford many of the goods and services that they rely on. This leads many economists and policy analysts to wonder what inflation’s causes are, and how its adverse effects can be stopped.

The ways that governments can counteract the effects of inflation vary depending on the type of inflation that’s occurring, and the factors that are causing it. Economists are also not in agreement about the best ways to approach inflation. It’s an area that still needs a lot more study.

That’s not particularly helpful when you’re facing high rates of inflation in the present moment. However, that doesn’t mean you’re a sitting duck completely at the mercy of the economy.

As an individual, there are steps you can take to ensure that your money isn’t being adversely affected by inflation:

Invest when you can. Money sitting in a savings account is, because of inflation, slowly losing purchasing power. If you start investing in the stock market, bonds, or other high-yield options, you can offset the effects of inflation (while also incurring other risks). Investing in property, like a home, can also be an effective way to offset inflation, as property often appreciates in value over time.

Ask for a raise. If you haven’t received a raise in months or years, it’s possible that your real rate of pay has decreased. That’s because, as inflation goes up, your monthly paycheck may not go as far. Working for and asking for raises to meet inflation is one way you can offset its effects.
Organize your workplace. If you and your coworkers have not received raises, it may be time to think about workplace organizing. By banding together with your coworkers and committing to deny your labor until your wages are increased, you can secure a higher wage and offset the effects of inflation.

According to the Joint Economic Committee, prices are increasing at a faster pace right now than they have in decades, which is increasing concerns over inflation. While there’s no real emergency, now’s as good a time as any to take proactive measures.

Plan for the Future with Mint

If you’re curious how your income, debts, investment tracking, and more are stacking up against inflation, there’s one way to keep track: Mint. The Mint app lets you plan for your future by aggregating all your different financial info into one convenient place. Sign up now and download the app for free today and get a bird’s eye view of your finances, so you can plan for whatever the future holds, inflation or not!

Sources: NPR | U.S. Bureau of Labor Statistics | Joint Economic Committee

Learn more about security

Source: mint.intuit.com

January 9, 2022

5 Women on Things They Wish They Knew About Finances Sooner

For many women around the world, weâve experienced so much trial and error as it relates to finances. The transitions in life begin in our adolescent years which develop our ideals about money. As we mature, we quickly realize that our wants and needs naturally change over time, directly impacting our money goals. Thereâs no better way to learn about finances as a woman than from other women â take a look at these key lessons and begin these discussions with other women in your life.

Money Mindset

Shannah Compton Game, Certified Financial Planner and Host of Millennial Money Podcast

I wish I had understood the power of my money mindset and the role that plays in financial success. After spending 12 years as a Certified Financial Planner working with clients, I quickly saw that the one thing separating most people from achieving their money goals was their mindset; how they think, act and feel about their money. I wish I had understood that my money journey isnât meant to be linear. Working with hundreds of clients over the last decade has shown me that money definitely ebbs and flows for most people. Itâs easy to get hung up on your money mistakes and choices that you wish you would have made. However, the magic is found in embracing your money journey and doing the best you can to not give money more power than it deserves in your life.

Long Term Planning, Investments and Wealth Building

Erin Lowry, Author of Broke Millennial Talks Money: Scripts, Stories, and Advice to Navigate Awkward Financial Conversations

While I know I should probably give a more traditional answer like “invest in a Roth IRA when I got my first job!” (which is true, I wish I’d done that in college), my answer is actually about learning to invest in relationships. I was incredibly fixated on earning and saving money in my early twenties. But to the point of almost always saying no to invitations to dinners, happy hours, get togethers, small trips — you name it. There is, of course, nothing wrong with focusing on building financial security for yourself. In fact, you should have that as a goal. It’s also important to have some balance in there as well.

Investing in relationships doesn’t have to cost a lot of money, but it’s something you should consider balancing in with your financial journey. Saying no over and over means people will eventually stop asking you to participate. Instead, offer a more cost-effective alternative. “I want to spend time with you, but instead of doing bottomless brunch, how about we get a bagel and go for a walk in the park?” You can also open up with your friends about your financial goals to give them some context about why you can’t always indulge in the activities they want to do.

Deidra Willis, Certified Financial Planner

The first time I finally took the chance to invest, I wish I would have done it sooner.Â Long of the short, you wonât know everything about the company you choose to invest or have an affinity for, yet, if you have 80% of the information, do not get stuck on paralysis by analysis.Â When I finally did, it was âwhatâs next?â

The earlier you plan, the less it takes. Time compounds and works for you. I did an awesome job of starting this right out of college, however, I did not know the same worked for insurances and other financial investments.

Shannah Compton Game, Certified Financial Planner and Host of Millennial Money Podcast

I wish I had understood that there are so many ways to grow your wealth. Growing your wealth isnât about following a set 10-step checklist. Itâs about figuring out what is really important to you and then being intentional with your spending and savings to help fund the life you want to live. I wish I had understood how to invest in stocks from a very early age without having fear come into play. I grew up thinking that men were the only people successful at investing. Because of that, investing always felt scary to me. We need to teach everyone from a really early age how to be savvy investors without fear and greed.

Debt & Money Management

Maggie Germano, Financial Writer, Speaker, and Financial Educator

I wish I knew that I could make payments on my student loans while I was still in college. Even if I could only afford small payments, making a dent before I graduated would have felt really good. Relatedly, I wish I knew that a “refund” from my student loans meant I still had to pay back with interest later. And that I should use it to pay off the loan, rather than spending it elsewhere. I also wish I knew that I didn’t have to isolate myself in order to stick to a budget and save money. There are ways to be social while stick living within your means. I spent too much time at home, by myself, before I realized that!

Elle Martinez, Founder of Couple Money and Host of Couple Money PodcastÂ

For me, I think one of the biggest helps when it comes to finances is doing a goal-based budget. I’m someone who needs something concrete to focus and keep me motivated, especially when working on paying off our debts.

The second piece is more related to the whole marriage and money mix which is having monthly money dates.

By having these regular and lowkey check-ins it helps us adjust the numbers as needed. We’re able to catch things early. This way they’re not a big deal instead of having spending or debts snowball out of control.

Entrepreneurship

Deidra Willis, Certified Financial Planner

In business (so this is more of a tip for the independent employees/contractor/1099) every dollar you earn is not yours!Â Separate your money and the only thing to operate as an employee is your pay until your bank account can sustain you, your team, and your expenses for a month. I see the excitement of earning and spending, but not properly planning as a business.Â A lesson for me as savvy as I was and am was that business operations must have financial structure, even when the expense is not there yet!

As we can see, there are many ways to approach money management, investments and establishing your own money mindset. This conversation doesnât stop here! Rally together a group of family and friends to share your own personal lessons from money. Now you can incorporate some new approaches as you continue to prosper on your financial journey.

The post 5 Women on Things They Wish They Knew About Finances Sooner appeared first on MintLife Blog.

Source: mint.intuit.com

January 9, 2022

Graduating from a secured card to an unsecured card

Secured credit cards are great options for people who have no credit history, poor credit or need to rebuild their credit, but the benefits of a secured card are limited – offering minimal long-term value.

With a secured credit card, your credit limit is low, typically equal to a security deposit required by the card issuer. Plus, rewards are typically not available.

In the case of an unsecured card, a security deposit is not required. Instead of money being taken from a security deposit, the cardholder is extended a line of credit and charged interest and fees for balances that are paid late. Both secured and unsecured cards can be used to make purchases or build credit.

Nevertheless, with successful use of secured cards, your credit rating can be boosted by establishing positive payment history – paving the way to “graduate” to an unsecured card with the same bank. That can mean a higher credit line or limit, more perks and a chance to reap rewards. Plus, you can get the security deposit returned.

Discover it® Secured Credit Card

BankAmericard® Secured Credit Card

Capital One Platinum Secured Credit Card

Citi® Secured Mastercard®

See related: How a secured card can help your score

request a higher credit limit.

Here’s a sampling of secured cards and what’s required to upgrade to an unsecured card:

Secured card name	Graduation requirements
Discover it® Secured Credit Card	Account reviewed after at least 8 months of positive payment history
BankAmericard® Secured Credit Card	No official timeline, but reports indicate account may graduate at 12 months
Capital One Platinum Secured Credit Card	No official policy, but some users have reported success graduating after first year
Citi® Secured Mastercard®	Account is reviewed after 18 months (some report graduation at 12 months)

Other options for graduating from a secured card

While not all secured credit cards automatically review an account to graduate, you can often request that your issuer upgrade you to a different product. Typically, you will have the best luck with your assessment after six months to a year of paying on time.

By sticking with your card issuer and opting for a different card, you can elect something with better rewards, a higher credit line or a lower interest rate. Plus, in some cases, remaining with the same issuer means no application and no credit check – which means no impact on your credit score.

You are also free to find unsecured card offers from other issuers. Because your payment history from the secured card is reported to credit bureaus, you can be evaluated with this updated information. Good places to start are unsecured cards designed for those with poor credit or checking for prequalified offers to make sure you have a good chance of approval.

CreditCards.com, but you can still find a great card offer for yourself! Our CardMatch tool can help match you with prequalified offers and cards that align with your credit history – with no harm to your credit score. Get personalized offers from our partners in seconds.

Boost your chances of scoring an unsecured card

Whether you are trying to graduate or apply for a new product, there are some basic steps everyone can follow to improve their credit score and boost their chances of being approved for an unsecured card.

Pay on time.
Keep credit utilization low, if possible.
Stay within your deposit limit.
Keep track of your credit score and other accounts.
Pay your other debts, including loans and other credit cards.
Consider increasing your deposit amount to increase your available credit.
Make payments in excess of the minimum payment.

Bottom line

For people with poor credit, secured credit cards can help you build your credit and establish a positive payment history.

Once your credit score improves, it will be possible to make the transition to an unsecured card, which can offer you better benefits, including lucrative rewards like cash back, miles and points. Being responsible with your payments and your credit score is the quickest way toward unlocking a better product.

Source: creditcards.com

January 9, 2022

Best Personal Loans for 2020

Maybe it was an unexpected dental procedure, or a tax bill you didnât plan for, or a car repair that came out of nowhere.

Whatever the reason, if you need money quickly, a personal loan can deliver it.

As you shop for a personal loan to solve your short-term problem, look for loan terms that wonât hurt your long-term financial life.

7 Best Personal Loans & Lenders for 2020

Online lending has opened a new world of personal loan options.Â

Not that long ago we had just a couple of legitimate choices:

Your Local Bank or Credit Union: You can usually borrow money at a decent fixed interest rate at your neighborhood bank or credit union. The downside: Youâd need to make an appointment or at least spend an hour or two on the phone.
A Credit Card: Itâs hard to beat the convenience of a credit card, but the interest rates, late fees, and over-the-limit charges can make this option too volatile.

We still have these two options, and sometimes they can get the job done. But we also have scores of online lenders that compete to give you installment loans with more competitive interest rates. You can also finalize loans and receive money more quickly online.

Here are some of the best personal loan choices:

Credible
LendingClub
Payoff
PersonalLoans.com
Prosper
SoFi
LendingTree

Credible Personal Loans

Iâm starting here because Credible isnât a lender. Itâs a way to connect with and compare a variety of lenders, including several from lower on this list. To start the process, youâll submit Credibleâs initial application which generates up to six loan offers.

This initial process will run a soft check of your credit score which shouldnât hurt your score the way a hard check can. If you like one of the offers, you can complete the next steps to apply for the loan which will, of course, result in a hard credit check.

Pros & Cons of Credible Personal Loans

Pros:

An efficient way to compare loan offers
Fast and easy application process
Many quality participating lenders

Cons:

Not for people with credit scores below 640
Could result in unwanted phone calls from lenders

LendingClub Personal Loans

I was an early fan of LendingClub back in 2007, and I still recommend this trailblazer in the peer-to-peer (P2P) lending market.

Rather than using bank funds, P2P lenders finance your loan with money from investors. Youâll still have to go through an application process, but LendingClub has opened new doors to people who donât want to borrow from a bank.

Loan Amount: LendingClubâs maximum loan amount is $40,000. You can repay the money in terms ranging from three to five years.Â
Costs: Interest rates typically range from 7 to 36 percent depending on your qualifications. The higher your qualifications, the lower your rate.

LendingClub continues to evolve. It now has debt consolidation loans and allows for co-signers which lets more people borrow.

Pros & Cons of LendingClub Personal Loans

Pros:

Credit scores of 600 can get approval
New co-sign option lets more people borrow
Debt consolidation loans available
No prepayment fee

Cons:

Loan origination fees (1% of loan)
Check processing fee ($7)

Payoff Personal Loans

As the name indicates, Payoff Personal Loans specializes in debt consolidation, helping you pay off other debts. You can potentially save money by having fewer loans and paying a lower interest rate.

The payoff isnât a good option for people with shaky credit, though.Â

Youâd need a score of 650 to 660 — and a few years of credit history on your report — to get approval at a decent interest rate. So donât wait until youâve already fallen behind on your other debts to consolidate with Payoff.

Loan Amounts: Eligible borrowers can get up to $35,000 to pay off other lenders such as credit cards, auto loans, or other personal loans.
Interest Rates: Loans range from about 6 to 25 percent depending on your borrowing credentials.

Pros & Cons of Payoff Personal Loans

Pros:

No late or check processing fees
No prepayment penalty
See interest rate without a hard credit check

Cons:

Not for people with shaky credit
A loan origination fee of 2% to 5%

PersonalLoans.com

Applicants with rocky credit histories appreciate PersonalLoans.com because the site lends to people with credit scores as low as 580.

Loan Amount: You could borrow up to $35,000 on a six-year (72-month) payback plan through PersonalLoans.com. Spreading money across six years can lead to lower monthly payments.
Interest Rates: This sounds like a friendly situation, but remember youâll pay higher interest — up to 36 percent — if you have a lower credit score, and the interest can increase your monthly loan payment significantly.

Pros & Cons of PersonalLoans.com

Pros:

Available to credit scores 580+
Easy-to-use online application
Up to 72-month term loans
Access money within a day

Cons:

Wide range of interest rates (5.9%-35.99%)
Uses a third-party lender

Prosper Personal Loans

Many borrowers like the way Prosper Personal Loans gives them a platform to share why they need to borrow money. This opportunity comes during the application process to this P2P lender. You can use this platform to appeal directly to the investors who would be funding your loan.

Of course, the numbers will tell their story, too: Youâd need at least a 640 credit score to get funding, and Prosperâs rates range from 6.9 to 35.99 percent APR.

Loan Amount: If you qualify, you could borrow up to $40,000 with payments spread over three to five years.
Interest Rates: Prosper also offers a wide range of rates, from 6.9 to 35.99 percent.

Pros & Cons of Prosper Personal Loans

Pros:

Soft credit check to see terms
No prepayment penalties
Fast and efficient service

Cons:

Higher interest for lower credit scores
Origination fee can reach 5%
Late fee is steep ($15 or 5% of payment, whichever is higher)

SoFi Personal Loans

SoFi has become a standard in student loan consolidation, but the lender also has personal, unsecured loans for non-academic borrowing.

SoFi stands out because the lender does not focus exclusively on an applicantâs credit score. This can be misleading because youâd still need a 680 or higher to get a loan.

But SoFi will not deny a loan if you have a short credit history as many lenders do. Instead, this P2P lender will consider your career and earning potential. In this way, SoFi can be a good fit for young professionals starting new careers.

SoFi calls its borrowers âmembersâ and hosts social gatherings in major cities for members which can lead to networking opportunities.

Loan Amounts: SoFi will lend up to $100,000 which is significantly higher than most online lenders.
Interest Rates: SoFiâs rates range from 5.75 to about 17 percent.

Pros & Cons of SoFi Personal Loans

Pros:

Larger loan amounts (up to $100,000)
Good for someone with a short or thin credit history
Flexibility to change due dates
No loan origination fee

Cons:

Funding can take up to 7 business days
680 or higher credit score required

LendingTree Personal Loans

I started this list with Credible, an aggregator, and Iâll conclude it with a nod to another aggregator.Â LendingTree helped establish one-stop shopping for loans back in 1998, and the service has continued to lead the industry.

Like Credible, LendingTree turns one application into loan offers from a variety of lenders. Youâll still need to assess each offer on its own merits, but LendingTree can save you a lot of legwork.

Pros & Cons of LendingTree Personal Loans

Pros:

Efficient way to shop
Trusted leader in the field

Cons:

Can send too many loan solicitationsÂ

Other Personal Loan Options to Consider

My list of best personal loan providers above includes most well-known lenders. Youâve probably heard of most of them already.

Below Iâm including a list of lesser-known options that have gotten my attention for various reasons. Most of these are loan matching services with P2P funding sources.

AmOne

AmOne has been around 20 years and has about a million customers. I like the companyâs versatility. It can handle all sorts of borrowing needs, including personal loans.

Amounts: Loans range from $1,000 to $100,000.
Interest rates: Youâll find a wide range, but highly qualified borrowers should get competitive rates.Â

Fiona

Fiona provides another loan-matching service similar to Credible or LendingTree. The service hasnât been around long, but itâs growing quickly by partnering with a lot of the lenders on this list.

Fiona works quickly — many applicants have funds within a business day.

Monevo

Yet another loan shopping service, Monevo stands out because of its speed and its high loan amounts. You could borrow $100,000 through the site.

I like the siteâs simplicity and its large volume of partnering lenders which means a wider variety of borrowers can benefit.

Federal Trust

Federal Trust partners with Fiona, which I listed above, to match loan shoppers with potential lenders.Â

You could borrow up to $100,000, and with such a wide variety of lenders in their network, Federal Trust can find competitive rates for eligible borrowers.

I also like Federal Trustâs option of a seven-year installment loan for someone who needs to keep loan payments as low as possible.

Will A Personal Loan Work For You?

Yes, personal loans can help get you out of a tough financial spot. But theyâll also cost you money for months or years, depending on how long you need to pay back the loan.Â

It goes without saying: You should always look for the lowest, fixed interest rates when borrowing.Â

Here are some other ways to save money when you borrow:

Look for Shorter-Term Loans: Monthly payments will be higher with shorter-term loans, but youâll pay less money over the life of the loan. If you can afford the higher payments, go with a shorter-term loan.
Avoid Fees: Even if youâre getting a lower interest rate, be sure the lender isnât compensating by charging high origination fees or punitive late fees that could eclipse your savings on interest.Â
Pay it Off Early: Look for a loan with no prepayment penalty, but even if you would incur a prepayment fee, consider whether this fee would exceed the interest youâd be paying over the life of your loan.Â
Avoid Borrowing: Maybe this isnât the time or place, but as a financial advisor I have to say it: If you can save up an emergency fund, you may be able to avoid borrowing in the first place. I recommend having at least three months of income in reserve. Then you can borrow from yourself in an emergency. Maybe itâs too late to save for the current emergency, but this is something to think about when life gets back under control.

Wherever you borrow — online or at a neighborhood bank — try to look out for your future as well as your present financial situation.

The post Best Personal Loans for 2020 appeared first on Good Financial CentsÂ®.

Source: goodfinancialcents.com

January 9, 2022

11 Surprising Things That Are Taxable

If you work for a living, you know that your wages are taxable, and you’re probably aware that some investment income is taxed, too. But, unfortunately, the IRS doesn’t stop there.

If you’ve picked up some extra cash through luck, skill or even criminal activities, there’s a good chance you owe taxes on that money as well. To avoid being caught off guard when it’s time to file your return, take a look at our list of 11 surprising things that are actually taxable. If you collected any of the income or property on the list, make sure you declare it on your next tax return!

1 of 11

Scholarships

If you receive a scholarship to cover tuition, fees and books, you don’t have to pay taxes on the money. But if your scholarship also covers room and board, travel and other expenses, that portion of the award is taxable.

Students who receive financial aid in exchange for work, such as serving as a teaching or research assistant, must also pay tax on that money, even if they use the proceeds to pay tuition.

2 of 11

Gambling Winnings

What happens in Vegas doesn’t necessarily stay in Vegas. Gambling income includes (but isn’t limited to) winnings from lotteries, horse races, casinos and sports betting (including fantasy sports). The payer is required to issue you a Form W2-G (which will also be reported to the IRS) if you win $1,200 or more from bingo or slot machines, $1,500 or more from keno, more than $5,000 from a poker tournament, or $600 or more from other wagers if your take is more than 300 times the amount of your bet. But even if you don’t receive a W2-G, the IRS expects you to report your gambling proceeds on your tax return.

The good news: If you itemize, your gambling losses are deductible, but only to the extent of the winnings you report as income. For example, if you won $4,000 last year and had $5,000 in losing bets, your deduction for the losses is limited to $4,000. You can’t deduct the balance against other income or carry it forward.

Your state may want a piece of the action, too. Your home state will generally tax all your income (if it has an income tax) — including gambling winnings. But also watch out for a tax bill if you place a winning bet in another state. You won’t be taxed twice, though. The state where you live should give you a tax credit for the taxes you pay to the other state. Also, check to see if your state allows a deduction for gambling losses.

3 of 11

Unemployment Benefits

Millions of Americans have received unemployment compensation during the pandemic – many for the first time. While these benefits provide an important lifeline during tough times, they could also produce an unexpected tax bill.

Unemployment benefits are a form of income, and that income is generally taxable at the federal level. In some cases, state taxes are due on unemployment benefits, too. (State treatment varies, so check out our State-by-State Guide to Taxes on Unemployment Benefits to see what your state does.) According to the IRS, unemployment compensation, for the most part, includes any amounts received under federal or state unemployment compensation laws, including state unemployment insurance benefits and benefits paid to you by a state or the District of Columbia from the Federal Unemployment Trust Fund.

You have the option to have as much as 10% of your weekly benefits withheld for federal taxes. Taxpayers will receive a Form 1099-G from the IRS, which shows the amount received and the amount of any federal income tax removed from your benefits. Taxes may be withheld from unemployment benefits at the request of the benefits claimant by using Form W-4V, while others who choose not to have their taxes withheld may need to make estimated tax payments during the year.

4 of 11

Cancelled Debt

Don’t get too excited if a credit card company says you don’t have to pay off the rest of your balance. That’s because debt that is cancelled or otherwise discharged for less than the amount you owe is generally treated as taxable income. This applies to credit card bills, car loans, mortgages, or any other debt that you owe. So, for example, if your bank says you don’t have to pay $2,000 of the $6,000 you still owe on a car loan, you have $2,000 of cancellation of debt income that you must report on your next tax return.

There are some exceptions to the general rule, such as for student loans, debts discharged in bankruptcy, qualified farm indebtedness and a few other types of debt. Also, in the case of “nonrecourse” debt — i.e., where the lender can repossess any collateral property if you fail to pay, but you’re not personally liable for the unpaid debt — any cancelled debt is not considered taxable income (although you might realize gain or loss from the repossession).

If you do have a debt forgiven, the creditor may send you a Form 1099-C showing the amount of cancelled debt. The IRS will get a copy of the form, too — so don’t think Uncle Sam won’t know about it.

5 of 11

Stolen Property

If you robbed a bank, embezzled money or staged an art heist last year, the IRS expects you to pay taxes on the proceeds. “Income from illegal activities, such as money from dealing illegal drugs, must be included in your income,” the IRS says. Bribes are also taxable.

In reality, few criminals report their ill-gotten gains on their tax returns. But if you’re caught, the feds can add tax evasion to the list of charges against you. That’s what happened to notorious gangster Al Capone, who served 11 years for tax evasion. Capone never filed a tax return, the IRS says.

6 of 11

Buried Treasure

In September 2020, a man found a 9-carat diamond in the Crater of Diamonds State Park in Pike County, Arkansas. It was the second-largest diamond ever found in the park and could be worth more than $1 million.

But be aware that if you find a diamond in the rough, unearth a cache of gold coins in your backyard or discover sunken treasure while deep-sea diving, the IRS wants a piece of your booty. Found property is taxable at its fair market value in the first year it’s your undisputed possession, the IRS says.

The precedent for the IRS’s “treasure trove” rule dates back to 1964, when a couple discovered $4,467 in a used piano they had purchased for $15. The IRS said the couple owed income taxes on the money, and a U.S. District Court agreed.

7 of 11

Gifts from Your Employer

picture of gold club with gift bow on it

Ordinarily, gifts aren’t taxable, even if they’re worth a lot of money. But if your employer gives you a new set of golf clubs to recognize a job well done (or to persuade you to reject a job offer from a competitor), you’ll probably owe taxes on the value of your new irons.

More than 50 years ago, the Supreme Court ruled that a gift from an employer can be excluded from the employee’s income if it was made out of “detached and disinterested generosity.” Gifts that reward an employee for his or her services don’t meet that standard, the court said. Gifts that help promote the company don’t meet that standard, either.

8 of 11

Bitcoin

While you can use bitcoin to purchase a variety of goods and services, the IRS considers bitcoin — along with other cryptocurrencies — to be an asset. If the bitcoin you used to make a purchase is worth more than you paid for it, you’re expected to pay taxes on your profits at capital gains rates — just like stocks and bonds.

Also be warned that, as the use of cryptocurrency increases, the IRS is starting to pay more attention to it. For instance, since 2019, the tax agency has been sending letters to people who may not have reported transactions in virtual currencies. Plus, the 2021 Form 1040 includes a line asking taxpayers if they received, sold, sent, exchanged or otherwise acquired any financial interest in any virtual currency during the tax year.

Some cryptocurrency platforms are sending investors statements that provide a record of their transactions. But even if you didn’t get a statement, you’re responsible for paying taxes on your crypto gains.

If your employer pays you in bitcoin or some other virtual currency, it must be reported on your W-2 form, and you must include the fair market value of the currency in your income. It’s also subject to federal income tax withholding and payroll taxes.

9 of 11

Bartering

picture of people trading an apple for a cupcake

When you exchange property or services in lieu of cash, the fair market value of the goods and services are fully taxable and must be included as income on Form 1040 for both parties. But an informal exchange of similar services on a noncommercial basis, such as carpooling, is not taxable.

If you exchanged property or services through a barter exchange, you should expect to receive a Form 1099-B (or a similar statement) in the mail. It will show the value of cash, property, services, credits or scrip you received from bartering.

10 of 11

Payment for Donated Eggs

Every year, thousands of young, healthy women donate their eggs to infertile couples. Payments for this service generally range from $6,500 to $30,000, according to Egg Donation, Inc., a company that matches donors with couples. Those payments are taxable income, according to the U.S. Tax Court. Fertility clinics typically send donors and the IRS a Form 1099 documenting the payment.

11 of 11

The Nobel Prize

If you were selected for this prestigious honor — worth about $1.1 million in 2021 — you must pay taxes on it.

Other awards that recognize your accomplishments, such as the Pulitzer Prize for journalists, are also taxable. The only way to avoid a tax hit is to direct the money to a tax-exempt charity before receiving it. That’s what President Obama did when he was awarded the Nobel Peace Prize in 2009. If you accept the money and then give it to charity, you probably will have to pay taxes on some of it because the IRS ordinarily limits charitable deductions to 60% of your adjusted gross income (for the 2021 tax year, under a provision in the CARES Act, you can deduct donations of up to 100% of your AGI to charity).

Source: kiplinger.com

A Personalized Plan for You

You’re Still in Control

What’s It Cost?

Is This Safe?

Do Users Like the App?

The Bottom Line

Additional Resources

Best Online Life Insurance Companies

Best Overall: Ladder

Best for Fast Approval: Bestow

Best Premium Membership Rider: Haven Life

Best for Nontraditional Underwriting: Sproutt

Best for Guaranteed Issue Life Insurance: Ethos

Best for Higher Coverage Limits: Fabric

Best for Price Transparency: Walnut

Best Online Broker for Life Insurance Only: Quotacy

Best Online Broker for Other Policy Types and Bundles: Policygenius

Methodology: How We Select the Best Online Life Insurance Companies

Financial Strength and Customer Satisfaction

Policy Types Available

Term Options

No-Medical-Exam Options

Coverage Amount (Death Benefit)

Policy Add-ons (Riders)

Online Life Insurance FAQs

Do You Need to Get a Medical Exam When You Apply for Life Insurance Online?

How Much Does Online Life Insurance Cost?

What Do You Need to Apply for Life Insurance Online?

Is Life Insurance Worth It?

How to Choose the Best Online Life Insurance Company

Stock Advisor

Related Articles

How Inter-Vivos Trusts Work

Advantages of Inter-Vivos Trusts

How to Create an Inter-Vivos Trust

Bottom Line

Estate Planning Tips

Categories

1. Get Rid of Dings on Your Credit Report and Raise Your Score

2. Stop Paying Your Credit Card Company Insane Interest Rates

3. Lower Your Bills to Avoid Missed Payments

4. Try to Negotiate Your Payments and Get On a Payment Plan

4 Main Causes of Inflation in Our Current Economy

1. Increase in the Money Supply:

2. Supply Chain Disruption:

3. Overnment-Sponsored Unemployment:

4. Poor Government Policies:

What Are the General Causes of Inflation?

Causes of Demand-Pull Inflation

Causes of Cost-Push Inflation

Factors That Can Influence Inflation

Cost of production

Prices of goods

Demand for goods

Skilled labor availability

New technology

Current money supply

Counteracting the Effects of Inflation

Plan for the Future with Mint

Money Mindset

Long Term Planning, Investments and Wealth Building

Debt & Money Management

Other options for graduating from a secured card

Boost your chances of scoring an unsecured card

Bottom line

7 Best Personal Loans & Lenders for 2020

Credible Personal Loans

Pros & Cons of Credible Personal Loans

LendingClub Personal Loans

Pros & Cons of LendingClub Personal Loans

Payoff Personal Loans

Pros & Cons of Payoff Personal Loans

PersonalLoans.com

Pros & Cons of PersonalLoans.com

Prosper Personal Loans

Pros & Cons of Prosper Personal Loans

SoFi Personal Loans

Pros & Cons of SoFi Personal Loans

LendingTree Personal Loans

Pros & Cons of LendingTree Personal Loans