It’s a common misconception that all debt is bad. Some forms of debt—such as student loans, mortgages, and auto loans—can help you improve your professional and personal life. But while debt can be useful, overspending while already in debt can lead to an unmanageable situation.
To find tips to ensure you aren’t adding unnecessarily to your debt or falling behind on payments, we asked Bob G. Wood—a professor of finance at the University of South Alabama’s Mitchell College of Business—to share his top debt-crushing strategies. These tips and ideas can help you gain lasting financial freedom.
Keep reading to learn how to get out of debt and stay there.
1. Avoid increasing what you owe on your credit cards
One of the first steps to getting out of debt is to stop adding to it. While credit cards are a helpful payment option (especially for unplanned expenses), continually building up a card balance that you can’t pay off every month can negatively impact your debt load and your credit score.
“A debt-averse individual pays the total balance on each credit card before the payment due date to avoid interest charges and late fees,” Wood explains. “This approach helps people avoid using the cards to buy things they cannot afford.”
2. Put some investments on hold
If you’re struggling to figure out how to pay off debt, you may want to put discretionary investments on hold until you’re debt-free. (Think: that $100 in crypto your buddy suggests you buy, or the IPO you’ve been reading about.) In some cases, paying off your debt faster will save you more money than your investments can earn. According to Wood, the exception to this rule is investing as a part of your retirement savings strategy, such as in a 401(k).
“I recommend continuing to fund retirement account investments, especially for those individuals with employer-provided accounts,” Wood says. “Many of these accounts provide a match for individual investments into the account, and that provides a 100% return on the individual’s contribution. Also, delaying retirement investment contributions can drastically reduce the future value of the account.”
3. Commit to a plan
While putting extra cash toward debt payments can help you make progress, having a steady plan is necessary to tackle debt efficiently. Wood shared the following steps consumers need to take when they’re budgeting to pay off debt:
Step 1. Differentiate between your needs and wants, and review your current expenses. “Be honest—upgrading to the latest cell phone model or adding items to an already full closet are more than likely wants rather than needs,” Wood says.
Step 2. Develop a realistic budget. Not sure how to budget to pay off debt? Be thoughtful when you create a budget to help keep your spending in check. This new budget should include a fixed monthly amount for debt repayment, beyond any monthly payments for student, auto, or home loans.
4. Choose the ‘snowball’ or the ‘avalanche’ style of debt reduction
When creating a plan to tackle your debt, you may consider the popular “debt snowball method,” which targets the smallest debt first. As soon as this first debt is satisfied, you focus on the next-lowest balance.
While seeing a debt of any size reduced to zero can be incredibly motivating, this approach may come with a cost. “Unfortunately, the strategy often results in more interest paid by the borrower,” Wood explains.
“As an alternative, the ‘debt avalanche method’ targets the highest interest debt first,” Wood explains. “By paying off the debt with the highest interest first, the borrower reduces the total amount of interest paid. Although this approach is more financially sound, it requires the borrower to focus on the long-term result and remain diligent in their payment plan.”
Note that with either of these approaches, staying current on all debt payments is important, meaning that you should pay at least the minimum amount due, while dedicating any extra contributions to the targeted debt.
5. Try to renegotiate your debt
One of the ways to pay off debt is to renegotiate it. While there are no guarantees that a lender will agree to negotiate the terms of your debt, you may have more luck if you’re a long-term customer with a history of on-time payments. In this case, a lender may be willing to waive fees, shift due dates, or even lower the interest rate. And these actions should not affect the individual’s credit rating, Wood notes.
Before committing to an arrangement, you should seek guidance from a professional about your specific situation, needs, and goals.
6. (Carefully) consider a balance transfer vs. debt consolidation loan
Transferring credit card debt to a new account has advantages, as many transfer offers may have an introductory period with an interest rate of 0%. A balance transfer can also reduce multiple payments to one, with a single payment date.
But keep an eye on your calendar so you’re aware of when the introductory period ends and the new interest rate begins.
He explains that debt consolidation is similar in concept, but these balances are typically rolled over into a personal loan for debt consolidation, a home equity loan, or a credit card with a lower interest rate (and concurrent lower payment).
7. Consider a rewards checking account
Looking to make the most of the cash you aren’t spending but still need access to? This is where a rewards checking account such as the Discover® Cashback Debit account can be handy when considering how to budget to pay off debt.
Earn cash back with your debit card
Discover Bank, Member FDIC
A rewards checking account can assist consumers in managing their debt by offering perks such as cash back or interest rewards on certain transactions. Consumers can then take those earnings and put them toward debt payments as needed.
8. Make it a family affair
Borrowing money from a trusted family member can help you save a lot on interest, making it easier to get out of debt faster. Let’s say that loved ones lend you the money you need to pay off your high-interest debts in full. You can then focus on paying them back at a lower interest rate or with no interest at all—whatever you agree on.
Just ensure you and your loved ones are on the same page about what this repayment agreement will look like so you don’t strain any relationships.
9. Know when to seek professional help
There may come a point when you need to hire a professional to help with get out of debt planning. “An individual should seek debt counseling when the anxiety associated with the debt interferes with the person’s personal and professional life or when the minimum debt payments are not possible without sacrificing necessities,” Wood says.
“There are both for-profit firms and nonprofit counseling agencies available to help an individual through the process.” The Consumer Financial Protection Bureau offers advice and resources on how to select a reputable counselor.
Consider what strategies might work best for you
There are many different approaches you can implement to help you get debt-free faster. Take some time to devise a realistic plan to tackle your debt so you can pay it off for good and start making your money work for you.
When you’re paying off debt, every boost of extra cash can help. A Discover Cashback Debit Account can help you earn cash rewards on debit card purchases1 with no account fees.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
1 On up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms.
Want to learn how to make $5,000 fast? Whether you’re in a rush to meet a financial goal this week or aiming for a steady income of $5,000 per month, there are several ways to make it happen. You’ll find different options, from short-term jobs that pay a lot at once to long-term ideas that…
Want to learn how to make $5,000 fast?
Whether you’re in a rush to meet a financial goal this week or aiming for a steady income of $5,000 per month, there are several ways to make it happen.
You’ll find different options, from short-term jobs that pay a lot at once to long-term ideas that bring in money regularly. And, sometimes, combining a few methods can help you reach $5,000 faster.
If you’re looking to make $5,000 fast, you’re not alone. Many people need a big amount of money quickly – for unexpected costs, important purchases, just to save up, or simply to make a stable amount of money regularly.
Best Ways To Make $5,000 Fast
Below is how you can make $5,000 fast.
1. Flip items for resale
If you want to learn how to make $5,000 without a job, then one way may be to flip items for resale.
Flipping items for resale means you buy things at a low price and sell them for more. This could be handmade goods, vintage items (like old games, cameras, clothing, etc.), furniture, sports equipment, appliances, and more.
Look for undervalued items at flea markets, garage sales, yard sales, and thrift stores, and then sell them for a profit. This job involves having an eye to spot valuable items that you think can be resold at a higher price.
You can resell items on eBay, Craigslist, Facebook Marketplace, and more.
I have flipped many, many items for resale over the years, and I think it’s a great way to work from home and make money on your own schedule.
Recommended reading: How Melissa Made $40,000 In One Year Flipping Items
2. Freelance online work
Making $5,000 a month from home is possible by becoming a freelancer.
Freelancers are people who run their own businesses and provide services to other businesses or clients on a contract basis. As a freelancer, you might be hired for onetime projects by businesses or you could secure long-term contract work with a company.
Online freelancing jobs include:
And more.
You can find freelance gigs through networking, reaching out to possible clients through email or phone, creating a freelance listing on Fiverr, searching for gigs on Upwork, and more.
I have personally been a freelancer for years (mainly freelance writing, and, in the past, I have also done freelance social media management), and it’s a great way to earn income while still being your own boss with a flexible schedule.
Recommended reading: 16 Best Freelance Jobs & How To Get Started
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
3. Pet sit and dog walk
Rover is a website that connects pet owners with pet sitters and dog walkers. You can work this job on weekends all year round or choose to be available only during the summer months – it’s flexible and up to you.
Getting started on Rover is simple. You create a profile highlighting your experience with pets and the services you offer, such as dog walking, pet sitting, and house sitting.
After setting up your profile, customers will send you requests, and you can discuss pricing with them. Rover handles payment processing, and you’ll receive payments directly into your account.
I have two close family members who are professional dog walkers, and they both love this side hustle.
Recommended reading: 7 Best Dog Walking Apps To Make Extra Money
4. Short-term rental your home
If you have a spare room in your home that you’re not using, you may want to try renting it out either on a short-term basis through Airbnb or Vrbo or by finding a long-term roommate to make extra cash.
I’ve rented out rooms multiple times before to roommates, and it’s a great way to earn extra income from unused space.
Recommended reading: What You Need To Know About Renting A Room In Your House
5. Deliver food
If you’re looking to make $5,000, finding a food delivery driving gig is a good option.
With companies like DoorDash, Uber Eats, and Instacart, you can start earning money by bringing people their favorite food. It’s flexible too, so you decide when you work and for how long.
Delivery services like Instacart hire personal grocery shoppers, and the average shopper earns $15 to $20 per hour delivering groceries. Drivers are paid per order, and you keep 100% of your tips. You can also pick your own schedule, which means teachers can work in the evenings or weekends, or only during the summer if they prefer.
6. Sell high-value items
If you’re looking to make a quick $5,000, selling high-value items can be a smart move. Take a look around your home; you might have things you don’t need that others are willing to buy for a good price.
You could sell an old cell phone, laptop, camera, designer clothes, your car, and more.
There are many different buyers for high-value items – from people like you and me on Facebook, to pawn shops, eBay, and more.
7. Tutor
Tutors who specialize in subjects such as math, language, science, graphic design, and more help students improve in those areas.
And, some tutors can make money rather quickly, such as one who specializes in college courses or high-level exams.
Becoming an online tutor depends on the subject you want to teach. Experience in the field is usually required, but there are opportunities for beginners as well. Tutors who teach advanced subjects like calculus or college entrance exams generally earn more than those teaching simpler topics.
Tutoring rates can range from $15 to over $100 per hour, depending on the subject and where you sell your tutoring services.
8. Stock photo photography
Stock image websites are popular platforms where photographers can sell their pictures. Customers can buy royalty-free photos for personal or business use, and these images are commonly used in websites, TV shows, books, social media, and more.
One advantage of using stock photo sites is that they can generate passive income. You can take pictures, upload them, and potentially earn money from them for months or even years. You’ll earn a commission every time someone downloads your photos.
Some well-known stock photo websites include Shutterstock, iStock by Getty Images, Adobe Stock, and Dreamstime.
In the world of stock photography, quality is important, but quantity matters too. The more pictures you have in your stock photo portfolio, the more potential you have to earn money.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
9. Sell an online course
Creating and selling an online course can be a great way to make money quickly, especially if you have knowledge or skills in a high-demand area.
If you have expertise in a certain subject, you can create and sell an online course. Platforms like Teachable and Udemy allow you to develop, host, and sell your course to students. While you may not earn $1,000 immediately, having students enroll over time can generate a substantial income.
I have an online course that I personally sell, Making Sense of Affiliate Marketing. I have also taken many online courses, such as on helping my toddler get better sleep, speech therapy for parents, business courses, blogging courses, and so much more.
There are many different subjects you can teach in an online course, including:
Painting
Music lessons
Exercise
Parenting
Languages
Photography and photo editing
Plants and gardening
Baking and cooking
Arts and crafts
10. Rent out your unused storage space
Just like Airbnb transformed the way you can earn money from your spare room, peer-to-peer storage platforms are doing the same for your unused spaces.
If you have extra space at home, consider renting it out to local people for storage. This could be a garage, driveway, closet, basement, or attic.
While making $1,000 in a single day from this may be challenging, renting out your space can provide a steady, long-term income when combined with other income sources.
You can use a website like Neighbor to list your available space for rent, potentially earning up to $15,000 per year.
11. Sell your jewelry
If you need to learn how to make $5,000 dollars in a day, then one option is to sell any expensive jewelry that you may have.
If you’ve got jewelry you no longer wear, selling it can be a quick way to earn some cash. You might have pieces like engagement rings, necklaces, or bracelets tucked away.
Recommended reading: Where To Sell Jewelry: 12 Best Places For Extra Money
12. Flip real estate
Flipping real estate means buying homes that need fixing, making improvements, and selling them for a profit. This can be a way to make $5,000 (and well over that if you are smart and careful!).
To do this type of real estate investment successfully, you may start by focusing on making cost-effective improvements, especially in areas like the kitchen and bathrooms, and address any major structural or safety issues.
Recommended reading: 23 Best Real Estate Side Hustles To Make Extra Money
14. Sell printables
If you’re looking to make $5,000 online, selling printables is an option.
Printables are digital files that customers can download and print at home, such as grocery shopping checklists, monthly budget planners, wedding invitations, wall art, and more.
I buy printables all the time, and actively search them out at least a few times a month. And, I’m not alone – many people buy printables frequently as well!
I recommend signing up for the Free Workshop: How To Earn Money Selling Printables. This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
15. Help businesses with their Facebook ads
Managing Facebook ads for local businesses is an online job where you can earn at least $1,000 per month per client.
Local businesses want to expand their audience through Facebook ads, but many don’t have the expertise to do it effectively. That’s where you come in. By learning this skill, you can sell your services to small businesses and help them reach more customers online.
Plus, this can be a part-time job that you do in your spare time or even a full-time job.
16. Write an ebook
Creating your own ebook can be a way to earn money online, and you likely have knowledge to share (even if you don’t realize it!) or a good story to write about.
Platforms like Amazon KDP (Kindle Direct Publishing) allow you to reach a wide audience without a traditional publisher.
Examples of genres you can write in include romance, travel, self-help, sci-fi, and more.
17. Blog
If you want to learn how to make $5,000 from home, then one of my favorite ways is to start a blog.
Now, starting a blog doesn’t instantly make you $5,000 because it takes time to set it up. However, with time and effort, some bloggers can make $5,000 a month in the future.
A blog is a website filled with articles, similar to what you’re reading now. You can start a blog on various topics like personal finance, recipes, travel, pet care, family life, and more.
You can earn money from a blog by partnering with companies for sponsorships, displaying ads, engaging in affiliate marketing (like promoting products on Amazon), and selling items such as ebooks, candles, T-shirts, and other products directly through your blog.
Blogging is my primary source of income, and I make well over $5,000 a month online. It took about six months to earn my first $100 from my blog, so getting started requires some patience. It then took me about a year to reach a monthly income of around $5,000 from blogging.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
18. Affiliate marketing
Affiliate marketing is a way to earn money by promoting products or services online, and it’s one of my favorite ways to make $5,000 (or more) fast online.
Affiliate marketing is when someone buys a product through a referral link you share, and you earn a commission.
To start, you will want to find products you genuinely like and believe others will benefit from. Then, sign up for their affiliate program, which will provide you with a unique affiliate link. This link tracks the clicks and purchases made from your recommendation.
Recommended reading: Affiliate Marketing Tips For Bloggers – Free eBook
19. Sell on Amazon
Starting your own Amazon FBA (Fulfillment by Amazon) business can be a great way to make $5,000 fast.
You can sell items from household goods to clothes, games, electronics, and more.
Selling on Amazon FBA works by you sending the items you want to sell to an Amazon fulfillment warehouse. Amazon stores these items for you until they sell on their platform.
When an item sells, Amazon handles the shipping and sends it directly to the customer. This means you don’t have to worry about packing and shipping the sold items yourself.
Recommended reading: How To Sell Items On Amazon FBA
20. Start a YouTube channel
Creating content for your own YouTube channel can be a fun way to work toward making $5,000 fast.
You can create a YouTube channel about topics such as finance, home improvement, travel, toys, pets, and more. There’s a YouTube channel for almost every interest these days.
Like blogging, this isn’t a guarantee that you’ll make money, and it will definitely take time to reach $5,000. But, it can be a lot of fun, and you get to be your own boss.
21. Buy a business that already makes income
Buying a business that’s already bringing in money is a way to possibly skip the tough start-up phase and have a business that is making over $5,000.
Now, existing businesses are typically expensive – someone has done a lot of hard work building a business over years and years, after all. They can cost anywhere from a few thousand to millions or even billions of dollars.
You can start by looking at online marketplaces like BizBuySell or Flippa. They list all kinds of businesses for sale, and you’ll see lots of options from online sites (like retail stores and blogs) to local shops (like bike shops, clothing stores, toy stores, and laundromats).
An example – I was recently in a small local bike shop, and they told me that it was for sale. They earned around $20,000 a month (I’m not sure if that was before or after expenses or anything else), and their shop was for sale for around $500,000. You got all the bikes, parts, customers, etc. with the sale. The building wasn’t owned by them, they had monthly rent and other bills to pay. I’m not going to say if this was a good or bad deal – it’s just an example of a real business that is for sale that I recently came across.
22. Consulting
Consulting is when you provide expert advice to individuals or businesses facing challenges. Consultants use their knowledge to understand problems, give advice, and help clients make better decisions from an outside perspective.
Consultants work in fields like management, finance, technology, or marketing. They focus on areas like strategy, process improvement, or restructuring to help clients achieve their goals effectively.
Here’s an example of how a consulting gig works: A company is struggling with managing its products and deliveries. They bring in a consultant who knows a lot about solving these issues. First, the consultant looks at how things are currently done. Then, they suggest better ways to store and ship items. The consultant helps put these ideas into action and teaches the company’s team how to use the new methods. Even after the changes, the consultant keeps an eye on things to make sure everything works well. This helps the company save money and makes sure that customers get what they need on time.
23. Detail cars
Starting a mobile car detailing business can be a way to earn money quickly. After all, you don’t need a lot to get started, and people are always wanting a good detailer to clean their car.
You’ll want to start by getting quality cleaning supplies like car shampoo, wax, and microfiber towels. You can then set fair prices based on what others charge nearby and promote your services on social media and with local businesses.
24. Rideshare driving gigs
Driving for a ride-sharing service like Uber or Lyft can be a way to reach your $5,000 goal quickly.
Here’s how you can work toward earning $5,000 with Uber or Lyft:
Drive during peak hours when demand is high, such as weekend nights, rush hours, or during busy events in your city.
Maximize your earnings by strategically positioning yourself in high-demand areas where there are plenty of potential riders, like near popular restaurants, bars, or events.
Take advantage of Uber’s driver bonuses, which may include incentives for completing a certain number of rides or driving during specific times. For example, you might earn an extra $10 for completing three rides in a row during rush hour.
While you won’t make $5,000 in one day, driving for a ride-sharing service can be a flexible way to earn money and work toward reaching your financial goal over time.
Frequently Asked Questions
Below are answers to common questions about how to make $5,000 fast.
What are some ways to earn an extra $5,000 quickly?
If you need to make an extra $5,000 quickly, then selling expensive items that you already own is usually the fastest thing that I recommend doing. This is because you may have expensive things in your home already – like jewelry or electronics – that you can sell and get paid for within just a few days.
Can I make $5,000 in a single day and how?
Making $5,000 in a single day is hard but not impossible. It may require a combination of having high-value items to sell or landing a big client for your freelance business. It’s about making the right move at the right time with the resources you have.
How can I double $5,000 dollars?
There are many ways to double $5,000 dollars, but it will depend on how much time you have to double your money, as well as how much risk you want to take on. Some ways will be much more risky than others, such as by investing in stocks or real estate. Due to this, it’s important to research and consider your risk tolerance before investing your money.
How can I make $5,000 in a month?
Ways to make $5,000 in a month can include freelance writing, blogging, proofreading, bookkeeping, and more.
How to make $5,000 fast without a job?
If you want to make $5,000 fast but not get a job, then the fastest thing to do is typically to sell items around your home that you already have, such as jewelry or electronics. You can also combine a bunch of different side hustles, such as freelancing, selling stuff, running a business, flipping real estate, and even small things like taking online surveys (like Survey Junkie for free gift cards).
How to make $5,000 a day online?
Some ways to make $5,000 a day online may include selling courses or other digital products. Now, this will not be an easy thing to do, and it will require a lot of hard work (as well as some luck).
How To Make $5,000 Fast – Summary
I hope you enjoyed this article on how to make $5,000 fast.
As you read above, there are many different ways to make $5,000. Some are faster than others (such as selling expensive items that you already own), and others may be more of a full-time career (such as freelance proofreading).
As thousands of Chicago-area families go house-hunting this spring, the dream of homeownership continues to drift further and further away.
By Don DeBat
21-Apr-24 – Average long-term mortgage rates inched above 7 percent nationwide for the first time this year, reported Freddie Mac’s Primary Mortgage Market Survey on April 18.
Benchmark 30-year fixed-rate home loan rates hit 7.10 percent, up from 6.88 percent a week earlier. That’s its highest level since October 26, 2023, when 30-year fixed loans hit 7.79 percent. A year ago, 30-year fixed mortgage rates averaged a more affordable 6.39 percent.
“The 30-year fixed-rate mortgage surpassed 7 percent for the first time this year,” said Sam Khater (left), Freddie Mac’s Chief Economist. “As rates trend higher, potential home buyers are deciding whether to buy before rates rise even more or hold off in hopes of decreases later in the year.”
Interest charges on 15-year fixed loans on April 18 averaged 6.39 percent, up from 6.16 percent a week earlier. A year ago, 15-year fixed mortgages averaged 5.76 percent.
Khater noted that home purchase applications rose modestly the week before, but “it remains unclear how many home buyers can withstand increasing rates in the future.”
The Freddie Mac survey is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who place a down payment of 20 percent and have an excellent credit score of 740 or higher.
The truth is home buyers in Chicago and across the nation really are starting to get rate-shy. Sales of existing homes in the United States fell 4.3 percent in March to a seasonally adjusted 4.19 million, reported the National Association of Realtors (NAR). That’s the first monthly decline in sales since December 2023, and follows a nearly 10 percent monthly sales jump nationwide in February.
“Home sales essentially remain stuck because mortgage rates have been stable and inventory is not really rising,” said Laurence Yun (right), NAR’s Chief Economist.
Unfortunately, Yun predicted that mortgage rates are likely to rise above 7 percent in the coming weeks. Early in 2024, Yun had predicted that 30-year fixed loan rates would average 6.3 percent by the fourth quarter of this year.
The interest rate rise is a direct result of the Federal Reserve’s aggressive interest rate hikes intended to tame soaring inflation numbers not seen in 40 years.
The Fed has raised its key benchmark lending rate to a range of 5.25 to 5.50 percent, the highest level since 2007. Based on moves by the Fed, mortgage analysts say 30-year fixed home loans could reach – or surpass – the 8 percent level in the near future. Home loan rates have not hit the lofty 8 percent level since August 11, 2000, more than 23 years ago.
Searching for a better deal, some borrowers are beginning to flock to riskier adjustable-rate mortgages (ARM), lenders say.
“This week we have issued 30-year loan commitments with rates as high as 7.5 percent, depending on down payments and borrower credit scores,” said Jeremy Rose (left), Chicago-based loan consultant for Loan Depot, one of the largest lenders in the nation. “Mortgage interest rates may have gradually declined over the past two decades, but home prices have tripled.”
Today, the buyer of a $400,000 home with a credit score of 740, who places a 25 percent down payment and takes out a $300,000 mortgage for 30 years at Loan Depot, would pay a rate of 7.5 percent. If the buyer is willing to pay a 1 percent discount point, or a loan fee of $3,000, the interest rate would drop to 7.125 percent.
“The most motivated buyers will accept the current level of mortgage rates and make offers when they find a place that’s suitable,” said Holden Lewis (right), a home and mortgage expert at Nerd Wallet. “High mortgage rates aren’t holding buyers back as much as lack of inventory and high prices.”
“If you’re always waiting for the perfect market conditions to arise, you could end up missing out on a lot of great opportunities,” warned Jacob Channel, Senior Economist at Lending Tree.
Mortgage rate history
Thirty-year fixed-mortgage interest rates ended 2020 at a rock-bottom 2.65 percent – the lowest level in the Freddie Mac survey history, which began in 1971.
Home loan rates set new record lows an amazing 16 times in 2020, and tens of thousands of homeowners refinanced.
Archives of the now-defunct Federal Housing Finance Board show long-term mortgage rates in the 1960s were not much higher than the Great Depression, when lenders were charging 5 percent on five-year balloon loans.
Nearly six decades ago, between 1963 and 1965, you could get a mortgage at 5.81 to 5.94 percent. Between 1971 and 1977, the now-defunct Illinois Usury Law held rates in the 7.6-to-9 percent range.
In the early 1980s, runaway inflation caused home loan rates to skyrocket into the stratosphere. According to Freddie Mac, benchmark 30-year mortgage rates peaked at a jaw-dropping 18.45 percent in October 1981 during that Great Recession.
Rates finally fell below 10 percent in April 1986, and then bounced in the 9-to-10 percent range during the balance of the 1980s. Twenty-three years ago, in August 2000, when some of today’s Millennial borrowers were still in diapers, lenders were quoting 8.04 percent.
(Left) October 1981 issue of Inc. magazine
Between 2002 and 2011, rates bounced in the 4-to-6 percent range. They inched into the 3-to-4 percent range until 2020, when they fell into the rock-bottom 2 percent bracket.
You’ve spent weeks preparing paperwork for your mortgage application. Now that you’re pre-approved for a loan, it’s time to talk numbers.
At first glance of the document detailing the breakdown of your monthly mortgage payments, the term PMI catches your eye. It’s a little over $100 per month, and you’re not sure what it’s for.
From what you’ve read, it’s standard on loans if the borrower puts little or no money down. But before you panic, take a deep breath and read on to learn more about PMI and how it works.
What is private mortgage insurance (PMI)?
What happens when your down payment is less than 20% of the cost of your new home? You may get approved for a mortgage loan. However, you pose more risk to the mortgage lender since you’re starting with no equity in your home. And if you fall behind on monthly payments and the lender forecloses on the home, they could stand to lose on the sale.
But the down payment of 20% is a way to create instant home equity. It also provides a layer of protection for the lender if they have to sell at a discounted price to recoup losses.
So, how does the lender protect themselves if you make little to no down payment? That’s where private mortgage insurance (PMI) comes in.
PMI is a type of mortgage insurance that protects the lender from taking a loss if you default on the loan. If the lender is unable to recover the outstanding balance of the loan from the sale, PMI will kick in and pay the difference. PMI is not to be confused with homeowners insurance, which protects you against damage to your property.
Who pays for private mortgage insurance?
This protection comes at a cost to borrowers. But it allows those with a down payment of less than 20% to buy the home of their dreams. It also minimizes risk, so lenders can extend these types of mortgage loans to consumers.
Does it cover private and public lenders?
PMI is only available to private lenders. Government agencies and other public lenders have their own form of mortgage insurance.
When is private mortgage insurance required?
Mortgage lenders use the loan-to-value (LTV) ratio to determine whether a borrower has to pay PMI. Typically, you’ll only have to pay PMI premiums if your loan-to-value ratio exceeds 80%. To calculate the mortgage LTV, the lender divides the mortgage amount by the home value.
Other circumstances may cause the lender to require PMI coverage. This includes past foreclosures, a less-than-perfect credit score, or other factors the lender thinks will increase your chances of defaulting on the loan.
A few scenarios:
SCENARIO 1
SCENARIO 2
SCENARIO 3
Home Value [1]
$100,000
$200,000
$250,000
Down Payment
$10,000
$50,000
$25,000
Mortgage Amount
$90,000
$50,000
$25,000
Loan to Value Ratio
90%
75%
90%
PMI Required
Yes
No [2]
Yes
[1]: Equivalent to sales price at the time of purchase [2]: This may change if the lender determines the borrower is riskier than normal
Private Mortgage Insurance vs. Mortgage Insurance Premiums
As mentioned earlier, mortgage insurance comes in a few variations:
Private Mortgage Insurance (PMI): protects private lenders who offer conventional loans. There are two types of PMI for conventional loans: borrower-paid mortgage insurance and lender-paid mortgage insurance. In most instances, PMI only applies until your LTV reaches 80%. But there are situations where the lender will require a higher percentage for the coverage to be lifted from the loan.
Mortgage Insurance Premium (MIP): protects government-backed VA loans and FHA loans. You pay a portion of the premium at the close of a VA loan or FHA loan. Then, you continue to pay mortgage insurance premiums on a monthly basis for the life of the loan, even once LTV is below 80%.
The LTV ratio is computed in the same manner for both private and government-backed mortgage products.
How much does PMI cost?
Premiums vary by loan. On average, you can expect to pay between 0.5 and 1% of the loan amount annually. So, if your mortgage is $350,000 and the PMI rate is 0.8%, your annual premiums will be around $2,800, or $233.33 per month.
The insurer will analyze your profile, including your credit score and down payment, to determine your interest rate.
The type of mortgage could also impact your premium. For example, if you take out an Adjustable Rate Mortgage (ARM) with floating interest, your premium may be higher. Why so? If the interest rate increases, your monthly mortgage payment will rise. And there’s a possibility you’ll default on the loan.
The condition of the real estate market in your area could also impact your PMI premiums. If projections state home values will plummet in the future, your premiums may be higher. This is due to the likelihood of you walking away once you’re upside-down on the loan.
How are PMI premiums paid?
There are three ways to make PMI premium payments:
Borrower-Paid PMI: Most mortgage lenders make it easy to manage premiums by rolling the monthly obligation into the amount you already pay for your home. This is the method used by most borrowers.
Single Premium PMI: You can also make a single lump-sum payment at the start of the loan by paying cash or rolling sum of the premiums into the loan.
Lender Paid PMI: If you wish to lower the monthly mortgage payment, Lender Paid PMI is also an option. The lender will pay premiums on your behalf. But keep in mind that the costs will be recouped in interest. And premiums don’t automatically go away when the mortgage LTV reaches 80%.
How to Avoid Paying Private Mortgage Insurance
The easiest way to avoid paying PMI is by making a larger down payment. If you can’t afford to put 20% down, it reduces your LTV ratio. Plus, you’ll be able to drop coverage quicker.
1. Take out a second mortgage or piggyback loan
To use this strategy effectively, you’ll need to take out a mortgage for the home’s purchase price, minus 20%. The remaining loan balance, minus the down payment, is then rolled into a second mortgage or piggyback loan.
So, if you buy a home for $200,000 and make a down payment of $15,000, the first mortgage will amount to $160,000. The second mortgage will amount to $25,000 since you are making a down payment of $15,000.
With this method, you avoid PMI since the LTV ratio on the first mortgage is 80%. But keep in mind that a second mortgage comes with a higher interest rate. So, you’ll want to pay it off sooner than later to avoid spending a fortune in interest.
2. Monitor the loan-to-value ratio
When you took out the mortgage loan, your lender used the home’s purchase price to determine the LTV ratio. However, an increase in the market value of your home could mean you are no longer obligated to pay for PMI.
By law, under the Homeowner’s Protection Act, PMI has to come off once the outstanding principal reaches 78% of the original loan amount.
Prepare to provide a professional appraisal to the lender to substantiate your claim. You may spend a few hundred dollars to get it done, but the cost savings will be worth it.
3. Request PMI Cancellation
If you’re nearing the 80% mark, the lender may be willing to remove the PMI from your loan. However, there’s also a possibility that you’ve already met some other criteria that warrant a request to cancel PMI coverage.
4. Refinance your mortgage
Perhaps your credit score was in shambles, and you were forced to take out a government-backed loan that requires you to carry PMI for the duration of the loan. Or maybe you got stuck with a conventional loan from a private lender that requires PMI until the LTV ratio reaches 70%.
Either way, refinancing your loan with laxer PMI restrictions may be a better option. But be sure to run the numbers to confirm that the new loan will not cost you more over time. (Remember, extending or resetting the loan term allows the lender more time to collect interest from you).
5. Shop for a loan that doesn’t require PMI
Compare loan programs to find one that doesn’t require PMI. For example, VA loans don’t require PMI, which can save you a bundle. Additionally, explore loans insured by the Federal Housing Administration (FHA) or the U.S. Department of Agriculture (USDA). Both of them offer programs designed to make homeownership more accessible to low- and moderate-income buyers.
Some lenders also offer mortgage products that allow you to make a small down payment and not have to pay for PMI. Bank of America’s “Affordable Loan Solution” mortgage product is a great example.
6. Ask about exemptions
If you’re a physician or veteran, you could also be exempt from PMI, even if you don’t put down 20%. Ask your lender for more details to determine if you qualify.
7. Consult the lender
Still no luck? Reach out to the lender to inquire about other ways to stop paying PMI. They may know of tips and tricks on how to get rid of PMI that may not be obvious to the average borrower.
Finally, if you still have questions or don’t understand how mortgage insurance works, seek clarification before signing on the dotted line. That way, you won’t be in for any surprises later on down the line.
Frequently Asked Questions
When is private mortgage insurance required?
PMI is typically required when a borrower makes a down payment of less than 20% of the purchase price of the home.
How much does private mortgage insurance cost?
The cost of PMI can vary depending on the size of the loan and the down payment amount. Generally, the cost of PMI is between 0.5% and 1.5% of the loan amount.
How long do I have to pay PMI?
Generally, PMI is required until the loan-to-value ratio (LTV) reaches 78%. Once the LTV reaches 78%, the lender must automatically cancel the PMI.
How can I avoid PMI?
Borrowers can avoid PMI by making a down payment of at least 20% of the purchase price of the home. Additionally, some lenders offer programs that allow borrowers to put down less than 20% and still avoid PMI.
What if I want to cancel my PMI?
Borrowers can request to cancel their PMI once their loan-to-value ratio (LTV) reaches 80%. The lender may require proof that the LTV has reached 80% before canceling the PMI.
Can I deduct PMI on my taxes?
PMI is not tax-deductible as of 2019. However, borrowers may be able to deduct the interest portion of their mortgage payments, which may include PMI.
For those who earn an income that makes them ineligible to contribute to a Roth IRA, a mega backdoor Roth IRA may be an effective tool to help them save for retirement, and also get a potential tax break in their golden years.
Only a certain type of individual will likely choose to employ a mega backdoor Roth IRA as a part of their financial plans. And there are a number of conditions that have to be met for mega backdoor Roth to be possible.
Read on to learn what mega backdoor Roth IRAs are, how they work, and the important details that investors need to know about them.
What Is a Mega Backdoor Roth IRA?
The mega backdoor Roth IRA is a retirement savings strategy in which people who have 401(k) plans through their employer — along with the ability to make after-tax contributions to that plan — can roll over the after-tax contributions into a Roth IRA.
But first, it’s important to understand the basics of regular Roth IRAs. A Roth IRA is a retirement account for individuals (vs. an employer-sponsored account like a 401(k)). For tax year 2023, Roth account holders can contribute up to $6,500 per year (or $7,500 for those 50 and older) of their post-tax earnings. That is, income tax is being paid upfront on those earnings — the opposite of a traditional IRA. For 2024, they can contribute up to $7,000 (or $8,000 for those 50 and older).
Individuals can withdraw their contributions at any time, without paying taxes or penalties. For that reason, Roth IRAs are attractive and useful savings vehicles for many people.
But Roth IRAs have their limits — and one of them is that people can only contribute to one if their income is below a certain threshold.
In 2023 the limit is $138,000 for single people (people earning more than $138,000 but less than $153,000 can contribute a reduced amount); for married people who file taxes jointly, the limit is $218,000 (or between $218,000 to $228,000 to contribute a reduced amount).
In 2024 the limit is $146,000 for single people (people earning more than $146,000 but less than $161,000 can contribute a reduced amount); for married people who file taxes jointly, the limit is $230,000 (or between $230,000 to $240,000 to contribute a reduced amount).
💡 Quick Tip: Did you know that you must choose the investments in your IRA? Once you open a new IRA and start saving, you get to decide which mutual funds, ETFs, or other investments you want — it’s totally up to you.
How Does a Mega Backdoor Roth Work?
When discussing a mega backdoor Roth, it’s helpful to understand how a regular backdoor Roth IRA works. Generally, individuals with income levels above the thresholds mentioned who wish to contribute to a Roth IRA are out of luck. However, there is a workaround: the backdoor Roth IRA, a strategy that allows high-earners to fund a Roth IRA account by converting funds in a traditional IRA (which has no limits on a contributors’ earnings) into a Roth IRA. This could be useful if an individual expects to be in a higher income bracket at retirement than they are currently.
Mega backdoor Roth IRAs involve 401(k) plans. People who have 401(k) plans through their employer — along with the ability to make after-tax contributions to that plan — can potentially roll over up to $46,000 in 2024, and $43,500 in 2023, in after-tax contributions into a Roth IRA. That mega Roth transfer limit has the potential to boost an individual’s retirement savings.
Example Scenario: How to Pull Off a Mega Backdoor Roth IRA
The mega backdoor Roth IRA process is pretty much the same as that of a backdoor Roth IRA. The key difference is that while the regular backdoor involves converting funds from a traditional IRA into a Roth IRA, the mega backdoor involves converting after-tax funds from a 401(k) into a Roth IRA.
Whether a mega backdoor Roth IRA is even an option will depend on an individual’s specific circumstances. These are the necessary conditions that need to be in place for someone to try a mega backdoor strategy:
• You have a 401(k) plan. People hoping to enact the mega backdoor strategy will need to be enrolled in their employer-sponsored 401(k) plan.
• You can make after-tax contributions to your 401(k). Determine whether an employer will allow for additional, after-tax contributions.
• The 401(k) plan allows for in-service distributions. A final piece of the puzzle is to determine whether a 401(k) plan allows non-hardship distributions to either a Roth IRA or Roth 401(k). If not, that money will remain in the 401(k) account until the owner leaves the company, with no chance of a mega backdoor Roth IRA move.
If these conditions exist, a mega backdoor strategy should be possible. Here’s how the process would work:
Open a Roth IRA — so there’s an account to transfer those additional funds to.
From there, pulling off the mega backdoor Roth IRA strategy may sound deceptively straightforward — max out 401(k) contributions and after-tax 401(k) contributions, and then transfer those after-tax contributions to the Roth IRA.
But be warned: There may be many unforeseen hurdles or expenses that arise during the process, and for that reason, consulting with a financial professional to help navigate may be advisable.
Who Is Eligible for a Mega Backdoor Roth
Whether you might be eligible for a mega backdoor Roth depends on your workplace 401(k) retirement plan. First, the plan would need to allow for after-tax contributions. Then the 401(k) plan must also allow for in-service distributions to a Roth IRA or Roth 401(k). If your 401(k) plan meets both these criteria, you should generally be eligible for a mega backdoor Roth IRA.
💡 Quick Tip: Did you know that opening a brokerage account typically doesn’t come with any setup costs? Often, the only requirement to open a brokerage account — aside from providing personal details — is making an initial deposit.
Contribution Limits
If your employer allows for additional, after-tax contributions to your 401(k), you’ll need to figure out what your maximum after-tax contribution is. The standard 401(k) contribution limit for all types of contributions to a 401(k) (meaning employee, employer, and after-tax contributions) in 2023 is $22,500 (or $30,000 for those 50 and older). For 2024, the limit is $23,000 (or $30,500 for those 50 and older).
The IRS allows up to $66,000, or $73,500 including catch-up contributions for those 50 and up, in total contributions to a 401(k) in 2023. For 2024, the total limits are $69,000, or 76,500 including catch-up contributions for those 50 and up.
So how much can you contribute in after-tax funds? Here’s an example. Say you are under age 50 and you contributed the max of $22,500 to your 401(k) in 2023, and your employer contributed $8,000, for a total of $30,500. That means you can contribute up to $35,500 in after-tax contributions to reach the total contribution level of $66,000.
Is a Mega Backdoor Roth Right For Me?
Given that this Roth IRA workaround has so many moving parts, it’s worth thinking carefully about whether a mega backdoor Roth IRA makes sense for you. These are the advantages and disadvantages.
Benefits
The main upside of a mega backdoor Roth is that it allows those who are earning too much to contribute to a Roth IRA a way to potentially take advantage of tax-free growth.
Plus, with a mega backdoor Roth IRA an individual can effectively supercharge retirement savings because more money can be stashed away. It may also offer a way to further diversify retirement savings.
Downsides
The mega backdoor Roth IRA is a complicated process, and there are a lot of factors at play that an individual needs to understand and stay on top of.
In addition, when executing a mega backdoor Roth IRA and converting a traditional IRA to a Roth IRA, it could result in significant taxes, as the IRS will apply income tax to contributions that were previously deducted.
The Future of Mega Backdoor Roths
Mega backdoor Roths are currently permitted as long as you have a 401(k) plan that meets all the criteria to make you eligible.
However, it’s possible that the mega backdoor Roth IRA could go away at some point. In prior years, there was some legislation introduced that would have eliminated the strategy, but that legislation was not enacted.
The Takeaway
Strategies like the mega backdoor Roth IRA may be used by some investors to help achieve their retirement goals — as long as specific conditions are met, including having a 401(k) plan that accepts after-tax contributions.
While retirement may feel like far off, especially if you’re early in your career or still relatively young, it’s generally wise to start thinking about it sooner rather than later.
Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
Help grow your nest egg with a SoFi IRA.
FAQ
Are mega backdoor Roths still allowed in 2023?
Yes, mega backdoor Roths are still permissible in 2023.
Is a mega backdoor Roth worth it?
Whether a mega backdoor Roth is worth it depends on your specific situation. It may be worth it for you if you earn too much to otherwise be eligible for a Roth IRA and if you have a 401(k) plan that allows you to make after-tax contributions.
Is a mega backdoor Roth legal?
Yes, a mega backdoor Roth IRA is currently legal.
Are mega backdoor Roths popular among Fortune 500 companies?
A number of Fortune 500 companies allow the after-tax contributions to a 401(k) that are necessary for executing a mega backdoor Roth IRA.
What is a super backdoor Roth?
A super backdoor Roth IRA is the same thing as a mega backdoor Roth IRA. It is a strategy in which people who have 401(k) plans through their employer — along with the ability to make after-tax contributions to that plan — can roll over the after-tax contributions into a Roth IRA.
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A Redditor’s vintage thrift store find is catching eyes online because of its unique design and incredible value.
The post, shared in the active r/ThriftStoreHauls community, features a photo of a lamp in the shape of a giant martini glass.
“Found this David Krys martini lamp at Goodwill yesterday for $6.99,” the caption reads.
The lamp, which originally sold for $225 in the 1990s, now resells for up to $900 on online marketplaces like eBay and Poshmark.
The martini glass-shaped lamp showcases Krys’ iconic creativity, as the designer is known for whimsical and unconventional home decor pieces. The oversized scale and playful concept perfectly encapsulate the bold and quirky vibe of the 1990s.
“My white whale. What a great find,” another Redditor shared.
Good news, green hacks, and the latest cool clean tech — straight to your inbox every week!
This lucky find showcases the many benefits of thrifting, from saving money on everyday necessities to discovering rare and valuable items at unbeatable prices.
By shopping secondhand, buyers can score unique pieces while keeping perfectly usable items out of landfills, where they’ll release atmosphere-polluting and warming gases as they break down. In fact, purchasing a single used item reduces carbon pollution associated with it by 82%.
The secondhand market is booming. According to thredUp’s 2023 resale report, it grew 28% in 2022 alone. Given the slew of financial and environmental benefits, it’s easy to see why.
🗣️ If you buy refurbished products, what’s your primary motivation?
🔘 Saving money 💰
🔘 Salvaging old stuff 🗑️
🔘 Helping the planet 🌎
🔘 I don’t buy refurbished products 🚫
🗳️ Click your choice to see results and speak your mind
Commenters on the Reddit post were blown away by the incredible find, and not just because of its resell value, as some said they would have bought that same lamp for themselves.
“Wow I love this,” one user said.
Another joked: “F***. I just paid like $300 for mine.”
“Some people just have all the luck. Amazing find!!” a third commenter chimed in, summarizing the sentiment of many who dream of stumbling upon an item that would be a treasure to them.
So next time you’re on the hunt for a statement piece or everyday essentials, consider checking your local thrift store first. You never know what incredible deals and one-of-a-kind finds await.
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When it comes to picking a new credit card, there’s one detail you should not overlook: the card’s annual percentage rate, or APR. This represents the rate lenders charge to borrow, including fees and interest. But credit cards don’t have one single rate, and it may be hard to evaluate what’s a good deal and what isn’t.
In general, a good APR is one that’s below the current average interest rate, which is 21.47%, according to the latest data from the Federal Reserve at the start of 2024. However, what’s a good APR will also depend on the type of credit card, the various rates that could be assessed, and your own creditworthiness. This guide will take you through the details.
What Is an Annual Percentage Rate (APR)?
The APR on a credit card represents the total cost of the loan expressed in annual terms. A credit card’s APR includes the interest rate as well as any fees, including for late payments, foreign transactions, or returned payments.
Taking these fees into account when applying for a credit card helps to provide a fuller picture of what the loan may actually cost over its lifetime.
Keep in mind that APR is distinct from interest rate, which is simply the additional cost of borrowing money. Like APR, interest rate is typically expressed as a percentage of the principal. However, when looking at the average credit card interest rate vs. the average APR, you’re not comparing apples to apples.
For example, if a consumer takes out a $1,000 loan with a 10% simple interest rate and a one-year term, they will pay $1,100 over the lifetime of the loan — the principal $1,000 plus interest of $100.
While this example is extremely simplified, it’s helpful in demonstrating the difference between a simple interest rate and a not-so-simple APR calculation. If the consumer calculates the cost of the same $1,000 loan, considering the various fees that go into the APR, the number will likely be higher than the stated interest rate.
How Is APR Determined?
Knowing how APR is determined is an important part of understanding how credit cards work. A credit card’s APR is largely determined based on an individual’s financial specifics when they open the account.
• The lender will look at the person’s credit score and credit history, as well as factors like their payment history and debt-to-income (DTI) ratio, which represents how much of an individual’s gross income is already going toward debt payments. In general, someone with a good payment history and credit score and a lower DTI ratio will qualify for a better APR.
• However, APR isn’t only based on a borrower’s creditworthiness. Lenders will also take into account the current US prime rate, which is used to set rates on consumer loan products. Typically, a lender will take this rate and then bump it up a bit to minimize risk and increase profits.
• Lastly, APR will vary based on the type of credit card. If you know what a credit card is, you’ll know all credit cards aren’t created equal. For instance, a credit card that offers lucrative rewards (like travel points or cash back) will generally have a higher APR than a more basic card.
When It Matters to Look at APR
If a consumer is comparing two similar loan or credit card offers, they may want to also look at the offer’s APR.
Let’s say a person has two loan offers. Each is a $1,000 loan with an interest rate of 10%. With just that information to compare the two, they seem equal to each other. A little more digging, though, will uncover that Offer A has a $100 origination fee while Offer B only has a $50 origination fee — both of which could be calculated and accounted for in the offer’s APR.
With credit cards, it could be that two cards have the same interest rate, but Card A has no late payment fees, while Card B carries a 20% late payment fee, making its APR potentially higher.
When it comes to APR, the devil really is in the details. And reading the fine print can reveal that the APR could make a difference to your credit card balance and debt management.
Types of Credit Card APR
To further complicate the answer to the question of what’s a good APR for a credit card, it’s important to understand that credit cards have different types of APR. The main one you’re probably going to want to consider when considering your total cost of borrowing is the purchase APR. However, if you’re planning to take out a cash advance or do a balance transfer, you’ll want to look at those APRs as well.
Introductory APR or Promotional APR
Sometimes, cards will offer a lower (or even 0%) APR to new customers for a limited time after they open the account. This APR can apply to purchases or to balance transfers. Introductory or promotional APRs must last at least six months, but they can be longer, too. Once this period is up, the regular APR kicks in.
Purchase APR
The purchase APR is the rate that applies when you use your credit card to make a purchase and then carry a balance into the next billing cycle, perhaps only making the credit card minimum payment. This is the most commonly discussed type of APR, and the main one you’ll want to look out for when comparing credit cards.
Cash Advance APR
A cash advance APR applies if you withdraw money from an ATM or bank using a credit card. Unlike your purchase APR, this APR doesn’t have a grace period, meaning interest starts accruing immediately. Additionally, cash advance APRs tend to be on the higher side.
Penalty APR
If you fail to make your payments on time, the penalty APR will kick in, driving up your card’s previous APR to one that’s often much higher. This is why it’s always important to make your credit card payments on-time — even if you’re in the midst of disputing a credit card charge, for instance.
Balance Transfer APR
A balance transfer APR will apply when you transfer any balances from other cards onto your credit card account. Often, this APR is comparable to the purchase APR, though this can vary depending on the credit card company.
How to Evaluate and Compare APRs
To get a sense of a credit card’s APR, follow these steps:
• First take a look at a card’s purchase APR range, and compare that to other credit cards. For a fair comparison, make sure to look at the same type of credit card. (For example, only compare travel rewards cards to other travel rewards cards, or a credit-building card to another credit-building card.)
• Then, get into the nitty-gritty and look at the APR for different types of transactions. Even one credit card can have varying APRs on different transactions. For example, a card may have a different APR on late payment penalties than it does for balance transfers or cash advances.
• Evaluate each APR and compare those to any other offer you may have in front of you to ensure you pick the most competitive option. It’s a good idea to attempt to seek out the lowest rate possible for your financial situation. That way, you can feel confident using your credit card for what you need to use it for — which might include paying taxes with a credit card.
Low vs High APR Credit Cards
As you’re evaluating credit card APRs, it’s important to keep in mind that some credit cards tend to have higher APRs than others. For example, rewards credit cards generally have higher APRs, but provide value through perks, discounts, points, or other benefits.
On the other hand, many low-interest cards come with fewer perks. But again, these cards can save someone money in the long run if they need to carry a balance from, say, covering a large purchase at an establishment that accepts credit card payments.
Low-interest cards also tend to be reserved for those with higher than average credit scores, so they may be harder to qualify for with lower credit.
What Is a Good APR for a Credit Card?
According to the Federal Reserve, the U. national average credit card APR was 21.47% in December 2023. It’s reasonable to assume that an APR at or below the national average is considered “good.”
That said, qualifying for a “good” APR may hinge on a consumer’s credit score. For instance, someone with a below-average credit score may have a different definition of a good APR for a credit card compared to someone whose score is excellent.
APR and interest rates also change alongside federal interest rates changes. Because of this, it’s important for consumers to find the most recent data available on average credit card APR to ensure they aren’t relying on out-of-date information to inform their decision.
How to Avoid Paying APR
The APR a person qualifies for typically depends on their individual credit score. This means that those with credit scores on the higher end of the scale might qualify for lower APRs. If a consumer has a lower credit score, that doesn’t mean they’re totally out of luck, but they might be offered the same card at a higher APR.
However, there are a few ways a person can improve their chances of qualifying for a lower APR, and that starts by doing the work to build one’s credit score.
Tips for Qualifying for a Better APR
The APR a person qualifies for typically depends on their individual credit score. This means that those with credit scores on the higher end of the scale might qualify for lower APRs. If a consumer has a lower credit score, that doesn’t mean they’re totally out of luck, but they might be offered the same card at a higher APR.
However, there are a few ways a person can improve their chances of qualifying for a lower APR, and that starts by doing the work to improve their credit score.
• One step is to check your credit report regularly for accuracy. US federal law allows consumers to get one free credit report annually from each of the three credit reporting agencies. Look out for any incorrect or suspicious charges. Even if you’d thought you’d resolved an issue related to a credit card skimmer, for instance, you’ll want to make sure those charges aren’t affecting your credit report in any way.
• You can build your personal credit scores by making debt payments on time and trying to use only 30% of your available credit limit at any given time. Payment history accounts for 35% of the total credit score, and credit utilization — how much of a person’s total credit is being used at a given time — accounts for 30% of the total credit score.
Repairing a poor credit score can take some time, but it’s worth the work.
The Takeaway
Currently, the average credit card APR is 21.47%, and anything below that could be considered a good rate. However, when it comes to what is a good APR for a credit card, the answer is that it depends on a variety of factors. It will also depend on your credit scores and history as well as what type of credit cards and rewards you’re looking for. When you do get a credit card, it’s important to use it wisely so that you don’t wind up getting charged higher penalty rates.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.
FAQ
What is a bad APR rate?
A bad APR for a credit card is generally one that’s well above the current national average credit card rate. APR for a credit card can vary widely, with some offering APRs as high as a whopping 36%.
What APR will I get with a 700 credit score?
A credit score of 700 is considered in the good range. It’s likely you could qualify for an APR around the average, though of course this will also depend on other factors, including the type of card and the current prime rate.
Does the interest rate on my credit card change?
Your credit card company can increase your interest rate. However, they are not permitted to do so within the first year of opening the account. Additionally, they must give you notice at least 45 days in advance.
What other financial products have an APR?
Many different types of lending products have APR. Beyond credit cards, this can include mortgages, car loans, and personal loans.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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A personal loan is a flexible lending product that can be used for anything from covering the cost of a home repair to consolidating high-interest debt. While there’s no universally required credit score for a personal loan, you generally need a score of at least 610 to qualify, and an even higher score to get a lender’s best rates.
That said, some lenders offer personal loans for no credit, and even for bad credit. To make up for the increased risk, however, they will typically charge high interest rates.
Read on for a closer look at the minimum credit score for a personal loan, how your credit score can impact loan amounts and interest rates, plus other factors lenders look at when considering an applicant for a personal loan.
What Personal Loans Are and How They Work
A personal loan enables you to borrow a specific amount of money to use in virtually any way you like — unlike a mortgage or auto loan which is earmarked for one specific purpose. Personal loans are offered by banks, credit unions, and online lenders and are generally unsecured (meaning you don’t have to pledge an asset to secure the loan).
Common uses of personal loans include home renovations, vacations, weddings, car/home repairs, medical expenses, moving expenses, major purchases, and credit card consolidation.
Once you get approved for a personal loan, you receive the funds in one lump sum up front then repay the money (plus interest) in monthly installments over a set period of time, called the loan term. 💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.
Awarded Best Personal Loan by NerdWallet. Apply Online, Same Day Funding
What You Need to Qualify for Personal Loans
These are a few factors lenders take into consideration when deciding whether or not to offer you a personal loan, as well as how much to offer and at what rate. Here’s a look at what you may need to qualify.
Credit Score
A credit score is a three-digit number (typically between 300 and 850) designed to predict how likely you are to pay a loan back on time based on information from your credit reports. There is no universally set minimum credit score for personal loans but many lenders require applicants to have a minimum score of around 620. To get approved for a lender’s lowest rates, however, you may need a credit score closer to 690.
That doesn’t mean borrowers with lower scores or thin credit are out of luck. Some lenders offer personal loans to applicants without any credit history at all. There are also personal loans on the market designed for applicants with poor or bad credit. Keep in mind, though, that these loans often come with high rates and less-than-favorable terms.
Debt-to-Income Ratio
Lenders will also look closely at an applicant’s debt-to-income (DTI) ratio, which measures the percentage of a person’s monthly income that goes to debt payments. You generally want your DTI to be as low as possible because that indicates that your income is well above what you need to cover your monthly expenses.
If you’re applying for a personal loan, lenders typically want to see a DTI of 35% to 40% or less. A lender might allow a higher DTI, however, if you have a strong credit score or other compensating factors, like enough money in your savings account to cover several months of living expenses.
Income
To make sure that borrowers have the cash flow to repay a new loan, lenders typically have minimum income requirements for personal loans. Income thresholds vary widely by lender — some require applicants to earn at least $45,000 per year, while others have a minimum annual income requirement of just $20,000. Lenders don’t always disclose their income requirements, so you may not be able to discover these minimums before you apply for a personal loan.
Lenders see your income by looking at your monthly bank statements, last two years of tax returns, and pay stubs. Some lenders also require a signed letter from an employer. If you are self-employed, you can provide tax returns or bank statements to show proof of income. 💡 Quick Tip: With average interest rates lower than credit cards, a personal loan for credit card debt can substantially decrease your monthly bills.
Personal Loan Options by Credit Score
When it comes to having the right credit score for a personal loan, there is no one set score that disqualifies someone from getting their hands on one. That said, having a FICO® Score in the good range (670-739) or higher gives applicants the widest range of lending opportunities and the most favorable interest rates. Take a closer look at how different FICO credit score ranges can affect lending opportunities.
Wide variety of lending products, good loan amounts, fair interest rates
580-669
Fair
Can qualify for some lending products with slightly higher interest rates
580
Poor
Limited lending opportunities, smaller loan amounts, typically high interest rates
Exceptional
An exceptional credit score qualifies applicants for the widest variety of personal loan options, the most favorable interest rates, and larger loan amounts.
Very Good
Having a very good credit score qualifies applicants for most if not all of the same rates and lending opportunities as exceptional applicants.
Good
Having a good credit score puts a borrower near or slightly above the average of U.S. consumers, and most lenders consider this a good score to have. Applicants shouldn’t struggle to find a personal loan, but they may not be approved for the lowest interest rates.
Fair
Because a fair credit score is below the average score of U.S. consumers, many lenders will approve loans with this score, but rates and terms might not be as desirable as they are for higher scores.
Poor
A poor or “bad” credit score is well below the average score of U.S. consumers and demonstrates to lenders that the applicant may be a lending risk, which greatly limits the applicant’s borrowing options. If they do qualify for a personal loan they likely can expect to be approved at high interest rates.
Alternatives to Personal Loans
If your credit score makes it difficult to qualify for a personal loan, you may want to explore alternative lending options. Here are some to consider.
• Credit card cash advance: Consumers with credit cards may be able to request a cash advance from their credit card, which can make it easy to get access to cash quickly. These cash advances typically come with higher interest rates than a regular credit card purchase.
• Peer-to-peer loans: There are some web-based lending sites that offer some flexibility in qualification requirements. Since these sites are not lenders, and more like matchmakers, they may help you find an investor who is willing to look at other factors besides your credit score.
• Cross-collateral loans: If you already have a loan secured by collateral with a lender (such as auto loan or mortgage), you may be able to qualify for another loan with the same lender using that same collateral. However, not all lenders allow cross-collateral loans. And there are risks involved for borrowers. To have a lien released from the asset used as collateral, you typically need to pay both loans in full.
Personal Loan Rates From SoFi
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Is a different credit score required for loans of different sizes?
Generally, the higher your credit score, the larger the loan you can qualify for. Maximum amounts for personal loans range from $500 to $100,000. If you have strong credit, you may qualify for a larger loan than you need. Be sure to consider how much you can afford to repay each month before deciding what size loan to take out.
Can you get a personal loan without having a credit score at all?
There are some personal loans on the market with no credit check. Since the lender can’t rely on your credit history, they will typically focus on other indicators of your ability to pay back the loan, such as your income, employment history, rental history, and any previous history with the lender.
When applying for a personal loan with no credit check, you’ll want to carefully weigh the benefits against the costs. Lenders will often charge higher interest rates and impose more fees to lessen their risk.
Can getting a personal loan affect a credit score?
Getting a personal loan can affect credit scores both positively and negatively. Applying for a personal loan typically results in a hard credit inquiry, which may cause a small, temporary drop in your credit score. On the flip side, taking out a personal loan can have a positive impact on your credit by increasing your credit mix. Making on-time payments can also improve your credit profile. (Late payments, however, can have a negative impact on your credit.)
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Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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Mortgage rates increased this week. But the latest news from the Federal Reserve suggests that we could see them start to tick down in the coming months.
On Wednesday, the Fed announced that it will keep the federal funds rate steady as it waits for more data showing that inflation is nearing its 2% goal. The central bank also released the latest Summary of Economic Projections, which showed that Fed officials still expect to cut rates three times this year. This would likely lead to lower mortgage interest rates as well.
Average 30-year mortgage rates increased 13 basis points to 6.87% this week, according to Freddie Mac. Average 15-year rates also inched up to 6.21%.
“After decreasing for a couple of weeks, mortgage rates are once again on the upswing,” Sam Khater, Freddie Mac’s chief economist, said in a press release. “As the spring homebuying season gets underway, existing home inventory has increased slightly and new home construction has picked up. Despite elevated rates, homebuilders are displaying renewed confidence in the housing market, focusing on the fact that there is a good amount of pent-up demand, an ongoing supply shortage, and expectations that the Federal Reserve will cut rates later in the year.”
The Fed could start cutting rates as soon as its June meeting, according to the CME FedWatch Tool. This would remove some of the upward pressure off of mortgage rates and allow them to trend down a bit.
But it will likely be a while before we see affordability improve significantly. If you’re waiting for rates to drop before you start the homebuying process, you may have better luck later this year or in 2025.
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$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By clicking on “More details,” you’ll also see how much you’ll pay over the entire length of your mortgage, including how much goes toward the principal vs. interest.
30-Year Fixed Mortgage Rates
Last week’s average 30-year fixed mortgage rate is 6.87%, according to Freddie Mac. This is a 13-basis-point increase from the previous week.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-Year Fixed Mortgage Rates
Average 15-year mortgage rates inched up to 6.21% last week, according to Freddie Mac data. This is a five-point increase since the week before.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
How Do Fed Rate Hikes Affect Mortgages?
The Federal Reserve has increased the federal funds rate dramatically to try to slow economic growth and get inflation under control. So far, inflation has slowed significantly, but it’s still a bit above the Fed’s 2% target rate.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
The Fed has indicated that it’s likely done hiking rates and that it could start cutting soon. This will likely allow mortgage rates to trend down later this year.
When Will Mortgage Rates Go Down?
Mortgage rates increased dramatically over the last two years, but they’ve moderated somewhat in recent months, and are expected to drop further this year.
In February 2024, the Consumer Price Index rose 3.2% year-over-year. Inflation has slowed significantly since it peaked last year, which is good news for mortgage rates. But it has to slow further before rates will begin to fall.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
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Money luck superstition is something that has been around for over 3,000 years.
Left Hand Itching has been a superstition since the dawn of time and there are a lot of people who still believe in it. Some say that if someone has a left hand itchy they are likely to receive money. Others say that the more itchy one’s left hand is, the faster they will receive money.
You may believe the meaning of life is found in one simple saying like left hand itching.
It sounds like a fortune cookie, but this quote has been around for centuries and also holds some weight when it comes to true wisdom about finances. However, there are many other sayings people use for their good luck charms such as “Toes on Head,” “Praying Hands,” “Rubbing Stone,” and “Clenched Fist.”
Let’s explore some of the most common superstitions surrounding money and take a look at whether these beliefs are plausible or not.
Seriously, what does it mean when your left hand itches?
We will cover the origins of money luck and left hand itching.
More importantly, what it means for you today.
What does it mean when your left hand itches?
It is normal to have an itchy left hand. More than likely, it is caused by many things such as dermatitis, eczema, psoriasis, and seborrhea (dry, scaly skin).
However, there are money superstitions with your left hand that we need to investigate.
What exactly is the left hand itching meaning?
Left Hand Itching is means you are expecting to come into money soon.
Believed to be an omen of good luck for money and prosperity, but it can also mean the opposite depending on how you look at it.
The itching could be anything: winning the lottery, getting an unexpected raise at work, or even just finding a quarter on the ground.
All possibilities are endless and no one can really tell what will make your left hand itch until it happens for them!
Signs of Left Hand Itching
Left hand itches are a sign of money luck superstition and the origin is unknown.
Some believe that this is because the left hand represents one’s heart and when your body senses an issue, you scratch yourself with your dominant hand which then symbolically cleanses and clears the area. There are also those who say that scratching on the left side helps to balance out yin-yang energy in order to create good fortune for oneself or others.
Therefore, if someone has been having bad luck recently they should scratch their right hand to rebalance the yin-yang energy.
This is a good example of how people often put extra meaning into random occurrences, so if you’re feeling lucky this weekend and left hand itches start appearing on your body, don’t worry about it!
Left Hand Itching Lottery
Left hand itching is considered a positive sign for lottery winnings.
Itching the left hand means luck will come to you, and it could be an indication that your luck has changed.
Winning the lottery is however very unlikely with the odds of 1-in-292 million. More than likely, you will be struck by lightning or die from a bee sting (source).
If you ever have a chance to buy the lottery, it’s good luck if you’re itching your left hand.
It is said that some of the numbers associated with scratching your left hand will appear to you.
For Mary Shammas, her lucky numbers were the birthdays of her five family members and she ended up winning a $64 million jackpot. Check out this left hand itching lottery post.
Your lottery number for left hand itching is yet to be determined for that winning jackpot.
This is a left hand lottery where you scratch your left palm with the date and then follow it up with a rubbing of your right hand. The numbers are picked at random from 1-100, but there’s no saying what number will appear on those palms.
There is many superstitions behind this tradition, but anything is possible with itchy left palms.
Superstitions for Left Hand Itching
There are many superstitions for left hand itching. Remember, left hand itching is a superstition that has been passed down through generations.
Here are some left hand itching superstitions to look for:
The superstition believes if your left palm itches, then you’ll have a lot of money luck coming in soon.
Left hand itches when you’re about to get or win money. If your left palm is itching, then lookout for a good opportunity that will arise soon.
Left hand is the dominant hand for people that itch their palms, and left-handed people are more likely to be money handlers.
The left hand is more sensitive than other parts of your body, so if you have itchy palms, then know that good luck will come your way soon.
Left hand itching on afemale means a positive sign that will bring even more fortune and money.
Left handing itching on a male means you are going to attract money to you.
However, don’t spend all your money on lottery tickets because this isn’t going to bring you any luck!
Left Hand Itching Spiritual Meaning
Left hand itching spiritual meaning is when one’s left hand, sometimes the palm of the hand, starts to itch and tingle.
It is common for people to itch their left hands when they are troubled by something or experiencing some sort of life transition like moving, going on vacation, starting college, or getting married.
Left hand itching may be a spiritual connection and it can also have other meanings.
This type of body language is an indication that the person needs help and guidance in order to figure out what direction he wants his life to go next.
Left Hand Itch & Being Left Handed
Almost every culture associates left-handedness with bad luck or misfortune.
One of the most popular cultural beliefs states that right-handed people are lucky while left-handed people have bad luck.
In some cases, people believe that if someone holds their left hand outstretched they will receive negative energy from others around them causing illness, sadness, or even death.
In other cultures, some believe that left handed individuals are unlucky and should never undertake any activity with their hands as they might get cut off or fall sick due to this condition.
Top Money Superstitions
Money superstitions are beliefs and practices that people have about money. Some of these can be harmless, while others may cause harm to the person who follows them.
It has been said that superstitions are most popular for all, with specific beliefs such as good luck. Belief in superstitions decreases with age.
Money is one of the most commonly used symbols to represent good fortune and wealth.
The belief is that money can make you lucky or unlucky depending on how a variety of factors. Let’s discuss some of the most common money superstitions.
Spiders & Money
It is a simple, common superstition that if you have a spider crawl into your pocket or purse it means “money luck” is coming soon.
Would you consider money and spiders in the same sentence? But, there are two types of superstitions with spiders and money.
If you observe a spider spinning a web, then your income with increase due to your hard work.
When a spider crawls into your pocket, that means you will always have money.
The idea of catching spiders in order to avoid bad luck is not very scientific.
Whistling
Did you just whistle money away?
Many people have superstitions about money, but this Russian superstition is one of the more interesting ones. Russians don’t whistle in a roof because they might lose their money if it goes up into the air and returns to them.
In addition, they do not whistle inside in fear of putting themselves in poverty.
Ring in the new year with cash in your hand
The New Year is approaching, and you might be wondering what to do with that cash in your hand.
The old wive’s tale claims that you need to have cash in your hand before midnight on December 31 if you want to be prosperous for the coming year.
On New Year’s Eve, put all of your cash in one pocket and don’t set it down anywhere until after midnight.
Another superstition says putting your purse or wallet on the floor can make you lose money.
Heads Up Penny
What does it mean to pick up a penny if it is heads up?
Most people would say that if a penny is heads up, it means it has been picked up.
Since a heads up side of a penny brings good luck, the tail side brings bad luck.
We have all heard the saying, “heads up for luck and tails for bad luck.” This superstition drives that saying.
So, when you find a penny with the “good” side up, will you pick it up? What about if the “bad” side is up, will you leave it be?
Or do you prefer the penny saving challenge?
Purse on the Floor
A common superstition about money is that putting your purse on the floor will cause you to lose money. This superstition probably originated from an old wives’ tale.
Sweeping the House
A common superstition is to NEVER sweep your house before or after 6:00 p.m.
If you sweep at night, it means that you are sweeping away any good fortune and money that may have come into the home during the day.
Friday the 13th
Another superstition is some people will put a dollar bill under their pillow to make sure they have enough money for the day ahead or will not walk around on Friday 13th because it’s considered bad luck.
Bird Droppings
If a bird poops on you or your car – it will bring your financial luck.
In fact, bird droppings bring great wealth. That is what has been said before.
Good Luck Charms
Many people believe in good luck charms, so they carry one around in their pocket, wallet, or shoe.
Many times someone’s lucky charm has a significant meaning to them. One that may or not be spiritual in nature.
One thing is for sure… they carry it everywhere they go.
Money Attracts Money
Money attracts money is a saying which means that the more you have, the more likely you are to attract people who also want to be wealthy.
This is because when someone starts making more money, they usually want to be in a place where other wealthy people are, which is why many wealthy individuals live in expensive neighborhoods.
It takes money to make money.
As frustrating as that concept is, there is some truth to the statement. You cannot always have a negative bank balance and have the mindset that things you quickly change.
If you see positive growth, you are going to focus on continuing the money growth.
It all comes down to your motivation – in fact, use one of these millionaire quotes to help you reach success.
Medical Truth for Left hand itching
This is an unusual symptom that your body may be experiencing. It could signal something serious like an allergic reaction or a parasitic infection.
It is natural to scratch your hands.
When the itchiness becomes too much, you can use your other hand to help relieve the pressure. If the itchiness is in your fingers, try using a piece of cloth to cover them. If the itchiness is in your palm or wrist, then you can use some ice cubes wrapped up in a thin cloth.
Also, refer to a doctor for a specific cause of your left hand itching. The more common medical causes can be many things such as dermatitis, eczema, psoriasis, and seborrhea (dry, scaly skin).
Does your Left Hand Itch?
Despite the fact 63% of Americans believe in superstitions, most people do not realize how much money is involved with their rituals.
Left hand itching is one of the most common money superstitions.
Left hand itching is a superstition that has been around for centuries and continues to be passed down from generation to generation.
There are many superstitions for top of left hand itching, but none have been proven scientifically. It is important to remember that left-handedness has no correlation with your luck or money status in life!
Left hand itching is a highly-common superstition that has been around since ancient times.
It means luck and money are coming your way because the left hand symbolizes wealth in many different cultures, though it’s not always true.
If you are experiencing an itch on your left palm, then there may be some truth behind this old saying.
Or does are you experiencing right hand itching?
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