Consolidation Loans – 4 Walls And A View http://4wallsandaview.com/ Fri, 14 Jan 2022 22:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://4wallsandaview.com/wp-content/uploads/2021/06/icon-5.png Consolidation Loans – 4 Walls And A View http://4wallsandaview.com/ 32 32 How to Pay Off Credit Card Debt: Financial Plan https://4wallsandaview.com/how-to-pay-off-credit-card-debt-financial-plan/ Fri, 14 Jan 2022 22:00:00 +0000 https://4wallsandaview.com/how-to-pay-off-credit-card-debt-financial-plan/ CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission if you apply and are approved for a card, but our reports are always independent and objective. If you’re struggling to pay off your credit card debt, you’re definitely not alone. A recent […]]]>

CNN Underscored reviews financial products such as credit cards and bank accounts based on their overall value. We may receive a commission if you apply and are approved for a card, but our reports are always independent and objective.

If you’re struggling to pay off your credit card debt, you’re definitely not alone. A recent report from Lending Tree showed that Americans collectively owed $804 billion on their credit cards at last count, and the average outstanding balance per borrower was $6,569.

Unfortunately, the average credit card interest rate or annual percentage rate of charge (APR) was 14.54% in the third quarter of 2021. This means that the average consumer with credit card debt has a significant percentage of its payment for interest costs. It also means that, for consumers paying this rate or even higher, paying off credit card debt is more difficult (and expensive) than it should be.

Fortunately, there are plenty of strategies you can use to manage your debt and pay off your credit cards once and for all. So if you’re struggling with debt that you can’t pay off, consider one of the following proven debt repayment strategies.

The Debt Snowball Method helps consumers pay off their debts by helping them achieve psychological gains early on. With this strategy, participants list all the debts they have, from smallest to largest, and then focus on the smallest debts at the start.

To use the debt snowball, you would make the minimum payments on all of your largest debts, then funnel the extra money you have into your smallest debt each month. Over time, the smaller debt is paid off, at which point you snowball the extra money you pay for the next smaller debt.

With the debt snowball method, smaller debts melt away over time, leaving only larger ones. Eventually, users only pay off their largest debt until they are fully debt free.

Example: Let’s say you have four credit cards with balances of $7,000, $4,000, $3,300, and $2,500. With the debt snowball, you would focus your largest payment on the $2,500 balance first, followed by the $3,300 balance, then the $4,000 balance before focusing on paying off the balance. $7,000 last.

All debt reduction strategies have pros and cons — there is no perfect solution. So here are the pros and cons of the debt snowball.

Advantages:

  • Score psychological victories by paying off your small debts early on
  • Helps you reduce the number of bills you pay early in the process

The inconvenients:

  • May result in higher total interest charges over time

Unlike the debt snowball, the debt avalanche method helps consumers pay off their debts in the most mathematically advantageous way possible. With this strategy, participants list all the debts they have according to their interest rate, then focus on the debts with the highest interest rates first.

To use Debt Avalanche, you make the minimum payments on all of your lowest interest rate debt, then funnel all the extra money you have into your highest APR debt. Over time, the debts with the highest interest rates are paid off, at which point you “swim” the money you were paying for the debt with the next highest APR.

As you go, you will pay off your debts with the highest interest rates, then those with lower interest rates, then some debt, then none. This strategy helps you save the most on interest since you tackle the debts with the highest APR first.

Example: Let’s say you have four credit cards with APRs of 22.99%, 19.99%, 12.99% and 11.99%. With Debt Avalanche, you would focus your biggest payout on Debt with the 22.99% rate first, followed by 19.99% Debt, then 12.99% Debt and then Debt. with the APR of 11.99% last, regardless of the size of that debt. .

Advantages:

  • Save money on interest by tackling debts with the highest interest rates first

The inconvenients:

  • You might end up paying off bigger debts first, which can be daunting
  • May take longer to reduce the number of payments you make each month
black woman with debt consolidation plans

iStock

Consumers can also use a debt consolidation loan or personal loan to get out of debt. With this strategy, you borrow enough money to pay off all your credit cards, then start making one monthly payment for your personal loan instead.

Personal loans can be a good choice for debt consolidation since they come with fixed interest rates, fixed monthly payments and a fixed repayment schedule. This means you know exactly how much you owe at any given time and exactly when you will be debt free.

Example: Let’s say you owe $10,000 on four credit cards with relatively high APRs. If you took out a seven-year personal loan for this amount, you would use the loan funds to pay off all of your credit cards, and then use all of your monthly payments to pay off the single personal loan. If you qualify for a loan with an interest rate of 6%, you will pay $146 per month for seven years (84 months) until you are debt free. In the meantime, you would pay a total of $2,271 in interest charges.

Advantages:

  • Simplify your finances with one monthly payment
  • Consolidate your debts at a lower APR than what you are paying now
  • Know exactly when you will be debt free
  • Many personal loans have no annual fees and no hidden fees

The inconvenients:

  • You need good credit to get a personal loan with the best rates and terms

Another debt repayment strategy is to apply for a balance transfer credit card. Cards in this slot allow you to consolidate and pay off your debts at 0% APR for a limited time, typically up to 21 months. A balance transfer fee is required, but people who can pay off their debt during their card’s introductory period have the opportunity to save big on interest and progress to paying off their debt faster.

Example: Let’s say you owe $10,000 on four credit cards with relatively high APRs and you request a balance transfer card that offers 0% APR on balance transfers for 21 months in exchange for a 5% balance. After consolidating your debts, you owed $10,500 including fees, but if you could pay $500 a month over 21 months, you could pay off that debt with $0 in interest charges.

Advantages:

  • You can pay no interest on your debt for a long time
  • Most balance transfer cards don’t charge an annual fee

The inconvenients:

  • You generally need good credit to qualify
  • You only get 0% APR for a limited time, after which the standard variable APR applies
woman with calculator and laptop budgeting getting out of debt

If you want to get out of debt, you have to be willing and able to change your lifestyle, at least for a while. Here are some simple tips that can help you stay on track:

Make sure the debt repayment strategy you use matches your personality and lifestyle. For example, don’t apply for a balance transfer credit card if you know you’ll be tempted to use it for purchases.

If you continue to use credit cards, you may never pay off your debt. While you’re in debt repayment mode, it’s helpful to avoid credit cards and stick to cash or debit instead.

Take a closer look at your lifestyle for signs of wasting money. Try shopping for groceries, cooking more meals at home, and avoiding places and situations that might tempt you to overspend.

Write down your income in one column and all your regular bills and expenses in another, then compare them. A written budget can help you stay focused and on track with your goals, including your current debt repayment strategy.

Racking up debt is often a breeze, but paying it off can be downright painful. Fortunately, these debt relief methods can help you save money, pay off your debts faster, or both.

We hope one of the strategies in our guide can help you come up with a plan that works, even if it takes a while. And if you’re worried about breaching your credit or defaulting on your obligations, you can contact a credit counseling agency for help.

Get all the latest personal finance deals, news and advice from CNN Underscored Money.

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Got $100? Here’s 1 great stock to buy and hold https://4wallsandaview.com/got-100-heres-1-great-stock-to-buy-and-hold/ Thu, 13 Jan 2022 11:40:00 +0000 https://4wallsandaview.com/got-100-heres-1-great-stock-to-buy-and-hold/ Not all good investments are exciting, disruptive, world-changing ventures. Some of the best investments are well-run businesses that make life a little easier for their customers and increase sales along the way. student loan processor Nelnet (NYSE: NNI) falls into the second category. It’s one of Wall Street’s best-kept secrets, with a market capitalization of […]]]>

Not all good investments are exciting, disruptive, world-changing ventures. Some of the best investments are well-run businesses that make life a little easier for their customers and increase sales along the way. student loan processor Nelnet (NYSE: NNI) falls into the second category. It’s one of Wall Street’s best-kept secrets, with a market capitalization of just $3.6 billion, even though it’s gained 33% in the past year. Stocks are still trading just below $100, and if you have that amount available to invest after paying your bills and saving for an emergency fund, you should consider buying a stock.

More than student loans

Nelnet is known (if known at all) for its massive student loan book, though it operates several businesses that together make it a financial services juggernaut. It is not creating new loans at this point, although it carries nearly $20 billion in loans on its balance sheet and expects $2.2 billion in loan repayments over the next few years. . It therefore relies on its other businesses to offer it new avenues for growth.

Image source: Getty Images.

Nelnet is more like a conglomerate than a single company, running several different businesses, some of which feed off each other and some that are separate. It operates four main divisions: Asset Generation and Management (AGM), which is primarily its student loan portfolio but also its investment arm; Lending Service and Systems (Nelnet Diversified Services, or NDS), which offers various services related to loan origination and technology; education technology services and payment processing (Nelnet Business Services, or NBS), which offers a wide range of services such as payment solutions and management solutions for educational institutions; and Nelnet Bank (Nelnet Financial Service, or NFS). It also has an “other” segment that includes Allo, its communications service that serves Nebraska and Colorado, and a cyberfusion center, which focuses on cybersecurity. The company earns money through interest income in the AGM segment and Nelnet bank and fee-based income in the other segments.

The company is leaning into fintech (financial technology), using technology to power its interconnected systems and deliver an enhanced customer experience. The bank is a continuum of the company’s services, providing digital banking services and offering solutions such as student debt consolidation.

How is Nelnet?

The $20 billion in student loans on Nelnet’s books are federally guaranteed, so it’s just sitting there making money for the company. Nelnet recorded $83.1 million in net interest income from the AGM segment in the third quarter, compared with $80.2 million in the same quarter a year earlier.

At the end of the third quarter, Nelnet was servicing $514 billion in government-held student debt for more than 15.8 million borrowers. Loan servicing (NDS) segment revenue was $112 million, down slightly year-over-year, and the segment reported a pandemic-related net loss. NBS segment revenue increased 15% year-over-year to $85.3 million. Nelnet Bank, which launched in 2020, had a loan portfolio of $192 million. Earnings per share in the third quarter were $1.38, down year-over-year as the company grapples with coronavirus-related issues, such as debt carryover. The company obviously has a large market and varied growth paths, and it adds services, such as the relatively new Nelnet bank.

Investors loved Nelnet last year, but it’s been down a bit so far in 2022. Even at a price of $95, the stock is trading at just 7.5 times trailing 12-month earnings, which is cheap even when it comes to financial services stocks. Its three-year share price gains are roughly on par with the S&P 500:

NNI Chart

NNI given by Y charts.

The company also pays a dividend, which yields a lower-than-average rate of 0.94%, though that’s not necessarily a reason to avoid the stock. More importantly for investors, Nelnet is a solid and growing company that can add great value to a diversified portfolio.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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Who should and shouldn’t consider a personal loan to pay off vacation debt? https://4wallsandaview.com/who-should-and-shouldnt-consider-a-personal-loan-to-pay-off-vacation-debt/ Tue, 11 Jan 2022 14:53:00 +0000 https://4wallsandaview.com/who-should-and-shouldnt-consider-a-personal-loan-to-pay-off-vacation-debt/ Getty Images If you’ve found yourself with vacation debt this year, you’re not alone: ​​more than one in 3 Americans (36%) incurred vacation debt this year, for an average of $ 1,249, according to LendingTree . Plus, it’s often difficult to pay off this debt: A recent NerdWallet survey found that 29% of shoppers who […]]]>

Getty Images

If you’ve found yourself with vacation debt this year, you’re not alone: ​​more than one in 3 Americans (36%) incurred vacation debt this year, for an average of $ 1,249, according to LendingTree . Plus, it’s often difficult to pay off this debt: A recent NerdWallet survey found that 29% of shoppers who put freebies on a credit card in 2020 carried this debt throughout that year.

An option to pay off that vacation debt that could save you money? Obtain a personal loan, although it can be risky. If you have good credit, a personal loan can be a much more affordable way to finance your vacation purchases instead of a credit card. “If you can qualify for a personal loan of around 5% or 6%, that’s much better than the average credit card, which charges over 16%,” says Ted Rossman, senior industry analyst at CreditCards.com . And a personal loan can make even more sense if you consolidate other high interest debt, such as loan consolidation and credit card debt. That said, it’s not the right option for everyone, and there are risks. Here is what you need to know.

See what rate you may be entitled to

Because personal loans can help borrowers access a significant amount of money, sometimes at a relatively low interest rate, Jacob Channel, senior economic analyst at LendingTree, says they can be a good way to cope. to high interest vacation debt. But it depends on what rate you might get: while someone with great credit may get a 5% or 6% rate, others may be offered more than 20%.

Get multiple quotes

“If vacations come and go and your card balance is large, do some research and use a debt consolidation calculator to see if consolidating will save you money. If you’re looking for a personal loan, pre-qualify with a handful of lenders to get an idea of ​​what rate and loan amount you’ll qualify for, ”says Annie Millerbernd, Personal Loans Expert at NerdWallet.

Don’t forget the fees

Another thing to consider when taking out a personal loan is the fees. “The costs to watch out for are origination costs,” Millerbernd explains. “Personal lenders who charge a origination fee often take a percentage of the amount you borrow on the loan before it reaches your account. This is something to consider if you are trying to borrow a specific amount, because with a set-up fee, you could end up running out of a few hundred to a few thousand dollars, ”says Millerbernd.

Don’t use a personal loan for the wrong reasons

While personal loans, if you get low rates, can make sense for dealing with high interest rate debt, Millerbernd notes that they are a significant liability for short-term discretionary purchases. “Everyone’s looking forward to getting out and traveling these days, but even the smallest personal loans often have repayment schedules of a year or more,” says Millerbernd.

Don’t use a personal loan as a quick fix

If you’re someone who “is considering using a personal loan as a temporary dressing to free up your credit card limits for additional overspending,” Channel says you should consider other options such as credit counseling. Instead, use a personal loan to save money and build better financial habits in the future.

Consider alternative solutions

Another, perhaps cheaper, way to pay off vacation debt is to use a 0% interest balance transfer card. “This will give you a few months without interest to work on your debt, which can take the pressure off. However, you need solid credit to qualify, ”Millerbernd.

Budget to avoid needing loans like this in the future

Channel says the best way to deal with vacation debt is to stay organized and diligent in paying it off. If you’re taking out a personal loan, you’ll need a plan to pay off that personal loan – “look at debt repayment strategies like snowball and avalanche methods,” Millerbernd says – and avoid spending more than you pay off. you can afford for your credit card. This type of planning can be built into your budget.

Make a different plan on how you will handle vacations in the future

“I’m not a big fan of taking on retail or vacation debt. I prefer to see people avoid taking on vacation debt. There may be cheaper ways to celebrate, like buying fewer gifts or giving homemade gifts, ”says Rossman. So in the future, set a good budget and stick to it. “Maybe you and your family can only buy for the kids… or maybe you can create a secret Santa and buy for someone else rather than the whole group. You can also volunteer time by offering to babysit your sister’s children so that she and her husband can have a date without having to pay a babysitter, ”says Rossman.

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What Is Debt Consolidation And Is It A Good Idea? https://4wallsandaview.com/what-is-debt-consolidation-and-is-it-a-good-idea/ Fri, 07 Jan 2022 22:45:00 +0000 https://4wallsandaview.com/what-is-debt-consolidation-and-is-it-a-good-idea/ CNN Underscored examines financial products like credit cards and bank accounts based on their aggregate value. We may receive a commission if you apply and are approved for a product, but our reports are always independent and objective. According to Experian 2021 Credit Report, US consumers with credit card debt have an average balance of […]]]>

CNN Underscored examines financial products like credit cards and bank accounts based on their aggregate value. We may receive a commission if you apply and are approved for a product, but our reports are always independent and objective.

According to Experian 2021 Credit Report, US consumers with credit card debt have an average balance of $ 5,525, while the average credit card interest rate is currently well above 16%.

For those in arrears, high debt and a high Annual Percentage Rate (APR) can combine in the worst possible way, often creating a cycle of high interest debt payments that consumers cannot escape. And, even for those who can Keeping up with monthly payments, too much credit card debt can prevent them from reaching other financial goals, like saving for the future.

Either way, debt consolidation offers a way out of credit card debt that is much less serious than bankruptcy. You just have to be prepared to create a plan and stick to it until you are debt free. If you want to get out of debt for good, read on to find out how debt consolidation can help.

If you’ve been trying to plan your way out of debt or make more money but nothing seems to be working, debt consolidation might be the answer you’re looking for. With debt consolidation, you will essentially be swapping out the loans and credit card balances you have for a new loan product with better rates and terms, thus reducing your monthly payments or making it easier to allocate more. from your money to reducing principal on debt, or both.

Essentially, with a debt consolidation, you take out a new loan and use the proceeds from that new loan to pay off all of your old debts, then make monthly payments only on the new loan. Broadly speaking, there are three financial products that consumers use for debt consolidation:

  • Debt Consolidation Loans, also called personal loans, allow you to refinance your debts into a new loan with a fixed interest rate and fixed repayment term.
  • Balance Transfer Credit Cards allows you to consolidate your debt on a new credit card that offers 0% APR for a limited time.
  • Home equity loans can help you consolidate your debt into a new loan product backed by the value of your home.

Whichever product you decide to use, remember that debt consolidation only really works if you stop taking on more debt. If you consolidate debt with a personal loan or credit card with balance transfer and keep charging more for purchases on other lines of credit, debt consolidation is probably a waste of time.

Debt consolidation may or may not be a good idea. It all depends on how seriously you take the process and whether you have the discipline to carry it out.

As an example, let’s say you currently have $ 5,525 in credit card debt at an APR of 19%. In this scenario, you could pay $ 100 per month for this debt for 133 months – or more than 11 years – before it is paid off. During this period, you would have paid more than $ 7,701 in interest.

But what if you consolidate that $ 5,525 of debt into one personal loan? Although personal loans vary, most allow you to borrow money for 2 to 7 years. Personal loans also come with fixed interest rates, fixed repayment terms, and fixed monthly payments.

In this example, you may qualify for a 60-month personal loan with an interest rate of 7%. In this case, you would pay off your balance with a monthly payment of $ 109 for five years (60 months). During that time, you would pay approximately $ 1,039 in interest payments. That’s a huge savings of over $ 6,000.

You can also consolidate your debt with a credit card. However, it’s important to note that while balance transfer credit cards offer an introductory 0% APR on transferred balances, the longest possible term currently offered is 21 months. After that, your interest rate will revert to the normal APR, which will always be high.

For this reason, a credit card balance transfer is only a good idea when you have an amount of debt that you can pay off during the card introduction period. If you need more time to get your debt under control than a balance transfer allows, you should consider a personal loan instead.

Finally, you can also consolidate your debt with a home equity loan that uses your home as collateral. In many cases, this can be a good idea, as home equity loans can come with low fixed rates, as well as a fixed monthly payment and a fixed repayment term. Remember, you need good credit to get a home equity loan, and you can lose your home if you default on your payment.

But, in any of these cases, if after consolidating your debt you overspend and accumulate $ 5,000 in additional debt on the same original credit card that you used before that you can’t afford to pay that $ 100 in monthly payments on this debt, you’ll end up paying an additional $ 4,985 in interest. Add that interest to the extra $ 5,000 of debt and your situation will be worse than you started with. This is why it is so important to stay disciplined and not keep spending more than you have when pursuing debt consolidation.

There are other debt consolidation options you can consider, some of which offer help from third party companies. For example, you might consider signing up for a Debt Management Plan (DMP), which takes place when a credit repair agency helps you negotiate interest rates and pay off your debts over a period of time. determined.

Just note that DMPs are not for everyone, and there is nothing credit repair agencies that offer DMPs can do that you cannot do on your own. Additionally, a number of credit repair agencies have gotten a bad reputation, so be sure to do plenty of research before you embark on this route.

Another alternative is debt settlement, which is a process that helps you pay off your debts for less than you owe. However, it is essential to know that debt settlement companies ask you to stop paying your debts while they are working on your behalf. Not surprisingly, this can cause considerable damage to your credit score that can last for years.

Debt management becomes considerably easier when you have a reasonable interest rate and a monthly payment that matches your income. Basically, that’s what debt consolidation does – it helps you transfer high-interest debt to a new financial product on better terms.

Another benefit of debt consolidation is that it allows you to reduce the monthly payments you make. If you’re currently trying to cope with five or six credit card bills, consolidating debt with a personal loan company or peer-to-peer lender can help you make the jump to just one payment per month. .

With that in mind, several factors can determine if debt consolidation is right for you. These include:

  • Your solvency: You will need good credit or better to qualify for a personal loan at the best rates and conditions. If your credit is poor, you may not be eligible for a new loan with better rates than you currently have.
  • Your desire to repay debt: Debt management takes time and effort, and full debt repayment can take years. If you are not serious about debt consolidation, a debt consolidation loan may not leave you in the best position.
  • Your ability to avoid new debt: For your debt consolidation to be successful, you must stop accumulating more debt. While you are paying off your debt consolidation loan, you should only use cash or debit. At the very least, you should use credit sparingly.

So, should you consolidate your debts? If you pay credit cards with high APRs, debt consolidation may be just what you need. Remember, you will only pay off your debt if you make a plan, and most importantly, if you stick to it. If you take out a personal loan and continue to take on credit card debt, you could end up worse off in the long run.

Get all the latest personal finance offers, news and tips at CNN Underscored Money.


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How to keep your financial New Year’s resolutions, according to an expert https://4wallsandaview.com/how-to-keep-your-financial-new-years-resolutions-according-to-an-expert/ Fri, 07 Jan 2022 20:20:32 +0000 https://4wallsandaview.com/how-to-keep-your-financial-new-years-resolutions-according-to-an-expert/ January is a great time to reflect on your financial habits over the past year and find ways to improve your spending behavior, so you can have peace of mind about your financial plan. (iStock) The New Year is a clean slate after the indulgence of the holiday season. It’s easy to lose sight of […]]]>

January is a great time to reflect on your financial habits over the past year and find ways to improve your spending behavior, so you can have peace of mind about your financial plan. (iStock)

The New Year is a clean slate after the indulgence of the holiday season. It’s easy to lose sight of your goals in the holiday spirit, whether it’s eating that extra slice of pecan pie, drinking an extra glass of eggnog, or spending too much money on the perfect gift. .

While it’s best to leave diet and exercise advice to a fitness trainer, Bank of America spokesperson Mary Hines Droesch has some tips for consumers looking to improve their drinking habits. in 2022. new BofA survey over 2,000 Americans have found that consumers have made ambitious financial resolutions for the New Year:

Read on for expert advice on how to reach your financial goals in the New Year. Whether your financial resolution in 2022 is to buy a home, get rid of your credit card debt, or pay off your student loans, visit Credible to explore a wide range of financial products. You can compare interest rates on mortgages, student loan refinancing, and debt consolidation loans, all in one online marketplace.

HOW TO GET A BALANCE TRANSFER CREDIT CARD

Share your financial resolutions with a friend

Personal finances can sometimes seem too personal to discuss, even between loved ones. But when you’re open about your financial goals, like spending less and saving more, there’s an added level of responsibility.

“Communicating openly about finances with someone you trust can help you stay accountable for your goals,” Droesch said. “Whether you and a coworker agree to cook lunch instead of eating out, or you and a friend engage in Friday night activities below a certain amount, it’s easier to stay motivated when you have a partner who encourages you. “

If your goal is to increase your savings in 2022, consider opening a high yield savings account to see your money grow over time with interest. As an added bonus, set up automatic contributions through direct deposit directly from your paycheck. This way, you don’t have to worry about hitting your savings goals.

Visit Credible to compare high yield savings account offers for free without affecting your credit score.

CAN YOU BORROW FROM AN INDIVIDUAL RETIREMENT ACCOUNT (IRA) WITHOUT PENALTY?

Make budgeting part of your personal care routine

During the coronavirus pandemic, many people were given more time for introspection and made it a priority to take care of their own mental and physical well-being. Consumers should view their finances in the same way, as part of their overall well-being.

“Financial health is often an overlooked part of personal wellness, but budgeting is a personal care routine like any other. “

– Mary Hines Droesch, spokesperson for Bank of America

Budgeting may not seem as pleasant as meditating in a hot tub or giving yourself some well-earned downtime, but it doesn’t have to be a dreadful task. There are plenty of free budget apps available on your smartphone that can automatically track your spending, making budgeting as easy as checking social media.

“Regularly dealing with your budget, especially when your priorities change, can help fight anxiety and set you up for long-term success,” Droesch said.

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Monitor your credit score regularly

Having a good credit score can help you reach your other financial goals, so it’s important to keep an eye on your credit history as a gauge of your financial well-being. You can request your free credit report from all three credit bureaus – Equifax, Experian, and TransUnion.

You can also sign up for free credit monitoring services on Credible.

RENEWABLE CREDIT CARD BALANCES REACH PRE-PANDEMIC LEVELS

“Credit scores are important because they affect so many areas of your life, like signing a lease or buying a car,” Droesch said. “Make a commitment to healthy habits, including paying off your balance on time and in full.”

Although 60% of Americans pay their bills on time and in full, 1 in 4 are still committed to paying off their credit card debt, according to the survey. If you’ve set a goal of getting rid of revolving credit by 2022, consider using a debt consolidation loan. This debt repayment strategy allows you to pay off debt quickly, at a lower interest rate, and on a predictable payment plan.

Check out your free debt consolidation loan offers on Credible, and use a personal loan calculator to estimate your monthly payments.

RENT PRICE INCREASES ACROSS THE COUNTRY, ACCORDING TO REPORT

Have a finance-related question, but you don’t know who to ask? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.


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Debt collectors can now contact you via text, email and even social media https://4wallsandaview.com/debt-collectors-can-now-contact-you-via-text-email-and-even-social-media/ Wed, 05 Jan 2022 20:44:41 +0000 https://4wallsandaview.com/debt-collectors-can-now-contact-you-via-text-email-and-even-social-media/ Credit card companies, medical providers, and many more can hire debt collectors to collect virtually any type of debt. Now, these professionals can also collect debt payments by contacting you online. (iStock) Debt collectors can now contact borrowers online via text, email and social media, according to a new rule issued under the Fair Debt […]]]>

Credit card companies, medical providers, and many more can hire debt collectors to collect virtually any type of debt. Now, these professionals can also collect debt payments by contacting you online. (iStock)

Debt collectors can now contact borrowers online via text, email and social media, according to a new rule issued under the Fair Debt Collection Practices Act (FDCPA) which came into effect on November 30, 2021.

The FDCPA was originally created in 1977 to “eliminate abusive, deceptive and unfair debt collection practices” and to protect “deemed debt collectors from unfair competition”. But the legislation had not been updated for four decades despite the rapid technological developments that occurred during this period.

Regulation F introduced new protocols on how debt collectors can behave online – it requires them to provide clear identification, keep online conversations private, and give debtors the choice to opt out of communications. in line.

The Consumer Financial Protection Bureau (CFPB), which approved Regulation F, said the new rules “would lead to stronger consumer rights.” Former Director of CFPB, Kathleen L. Kraninger written in a blog post that “We are finally leaving 1977 behind and developing a debt collection system that works for consumers and industry in the modern world.”

However, not all advocates agree that the new rule will benefit consumers. The National Center for Consumer Law (NCLC) noted that “Regulation F offers new rights to consumers, but is also likely to lead to new abuses by consumers”.

Read on to learn more about your rights under the FDCPA, as well as your options for getting out of debt. You can visit Credible to compare free debt consolidation loan offers without affecting your credit score.

BORROWERS WHO CONSOLIDATE CREDIT CARD DEBT CAN SAVE OVER $ 2,000 ON AVERAGE, STUDY SHOWS

New debt collection rule could lead to more scams, lawyers warn

While Regulation F establishes protocols for legitimate debt collectors when communicating with debtors online, advocacy groups warn it will make it easier for “ghost debt collectors” – criminals who defraud consumers to unwittingly with money they don’t owe, according to the Federal Trade Commission (FTC).

AARP said in a blog post that the new federal rule opens “new avenues for false debt fraudsters to reach their targets.” Since real debt collectors are now allowed to conduct their business online, ghost debt collectors may appear more legitimate when contacting consumers via text, email, and social media.

Now more than ever, it is important for consumers to approach debt collectors strategically. Here are some tips for avoiding AARP debt collection scams:

  • Ask for the name and company of the debt collector, as well as his professional license number. The FDCPA requires collection agents to provide clear identification.
  • Ask for a written validation notice outlining the amount you owe and the name of the original creditor – debt collectors are required to provide this by federal law.
  • Do not divulge any personal information, discuss the debt you owe or make payments to a collection agent without verifying their identity.
  • Check your credit history regularly. You can request a free copy of your credit report from the three credit bureaus (Equifax, Experian, and TransUnion) to look for suspicious activity.

If you’re having trouble paying off your creditors, consider consolidating your debts into a lump sum personal loan. This allows you to pay off all of your debts in a single monthly payment over a specified period of time. You can review the estimated terms of your debt consolidation loan on Credible to decide if this option is right for you.

HOW TO BUILD AN EMERGENCY FUND?

How to get out of debt faster

Debt collectors are allowed to contact you by phone, email, text, or even social media message about a debt you owe. If you’re tired of being hassled by debt collection agencies, consider one of these debt repayment methods:

  • Non-profit credit counseling. A credit counselor can help you with financial planning and set you up with a Debt Management Plan (DMP) with a minimum monthly payment. They can also help you negotiate with your creditors to reduce the amount you owe with the debt settlement.
  • Debt avalanche or debt snowball. The Debt Avalanche method involves paying off your debt with the highest interest rate first to save as much money as possible. The debt snowball method is to pay off the smallest debt first to get bigger.
  • Balance Transfer Credit Card. It may be possible to combine your credit card payments by transferring the balance of one or more credit cards to a balance transfer card at a lower interest rate. You will need good credit to qualify for a balance transfer offer. Additionally, you may need to pay a balance transfer fee of 3-5% of the total amount. You can compare credit cards with balance transfer for free on Credible.
  • Debt Consolidation Loan. This type of personal loan allows you to pay off virtually any type of debt, from unpaid medical bills to credit card balances, at a fixed interest rate. You pay off debt on a predictable repayment schedule in monthly installments over a set period of time.

If you decide to borrow a debt consolidation loan, it is important to compare the offers of several lenders to ensure that you are getting the lowest possible interest rate for your financial situation. You can compare risk free offers and find out more about personal loans for debt relief on Credible.

CAN AN INCOME-BASED PAYMENT PLAN HELP GET MY STUDENT LOANS?

Have a finance-related question, but you don’t know who to ask? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.


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Biden pledges $ 1 billion in bailout funds to small independent meat processors https://4wallsandaview.com/biden-pledges-1-billion-in-bailout-funds-to-small-independent-meat-processors/ Mon, 03 Jan 2022 22:35:27 +0000 https://4wallsandaview.com/biden-pledges-1-billion-in-bailout-funds-to-small-independent-meat-processors/ President Biden virtually met with independent farmers on January 3 alongside Agriculture Secretary Vilsack and Attorney General Garland to discuss what he called a stifling consolidation in the U.S. meat industry and to announce news measures to counter it. In order to stimulate competition, Biden and Secretary Vilsack said the Biden administration would wipe out […]]]>

President Biden virtually met with independent farmers on January 3 alongside Agriculture Secretary Vilsack and Attorney General Garland to discuss what he called a stifling consolidation in the U.S. meat industry and to announce news measures to counter it. In order to stimulate competition, Biden and Secretary Vilsack said the Biden administration would wipe out $ 1 billion in spending from the Covid relief bill passed last year for grants and loans for independent small businesses. packaging of meat.

The funds, according to Agriculture Secretary Vilsack, will include $ 800 million in grants and loans for small independent meat processing companies, $ 100 million in loans to help tackle the challenges of the food chain. supply industry and $ 100 million to help reduce the cost of inspections for smaller meat-packing facilities.

Loan guarantees for supply chain expansion, said Vilsack, would go to industry-specific solutions like cold storage and potentially cost ten times his initial investment: “We think that $ 100 million dollars will mobilize nearly a billion dollars of investment, ”he said.

In his own remarks, Biden focused on the effect of the consolidation on prices, saying that 50 years ago ranchers received 60 cents for every dollar a consumer spent on meat, whereas today hui that figure fell to 59 cents, and noting that the price of a pound of beef jumped during the pandemic.

According to the Associated Press, meat prices have climbed 16% year-over-year and beef prices have risen more than 20% over the same period.

“Without real competition, farmers and ranchers can’t choose who they sell to. In other words, our farmers and ranchers have to pay what these four companies say they have to pay, overall,” said Biden, who has added that meat producers can also use their leverage to “overload grocery stores and ultimately families.”

Without naming names, the White House noted on Monday that the top four beef processors in the United States collectively control 85% of its beef production, while the top four pork and poultry processors control 70% of its beef production. % and 54% of their respective markets. .

This is consistent with USDA data from 2021, which shows Cargill US, Tyson Foods Inc., JBS SA, and National Beef Tracking Co. slaughtered 85% of grain-fed cattle in the United States for consumer products. .

In its response, the National American Meat Institute insisted that the latest announced measures were wrong and would harm rather than help meat producers and consumers. In a statement, NAMI CEO Julie Anna Potts accused the Biden administration of “refusing to engage” with meat packers and of noting that today’s roundtable did not include any industry representatives.

“Press conferences and the use of taxpayer dollars to establish government-sponsored packaging and processing plants will do nothing to address labor shortages in meat and poultry factories and to increase inflation in the economy, ”Potts said. She went on to note that producers are currently seeing an upward trend in livestock prices as members of the industry deal with a backlog caused by the COVID disruptions.

As the White House views the consolidation of meat packers as a responsibility for supply chains, Mark Dopp, a vice president of NAMI, said last year that “the ultimate black swan event” of COVID does not indicate that the system as it exists needs to be dismantled and that the consolidation of meat packaging is not new.

In a letter to the USDA submitted in June 2021, Dopp noted that the share of the four companies of slaughtered cattle had changed little in about a quarter of a century and claimed that the effectiveness of the existing model allows meat packing companies. to pass savings on to consumers, resulting in cheaper food as a percentage of personal income for US consumers. Instead of funding smaller meat-packing companies or developing additional capacity, Dopp said, the USDA should instead focus on a more uniform pandemic response plan and reducing labor shortages. ‘work.

NAMI submitted the comments last year in response to USDA’s request for comment on the measures, which was released in April 2021 after President Biden signed an executive order in February on anti-competitive practices. The Jan. 3 announcement itself builds on an executive order signed in July last year that ordered the USDA to tightly enforce price fairness laws through its Packers & Stockyards division. .


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Remember student loans? How to prepare for the end of pandemic tolerance https://4wallsandaview.com/remember-student-loans-how-to-prepare-for-the-end-of-pandemic-tolerance/ Sat, 01 Jan 2022 18:20:00 +0000 https://4wallsandaview.com/remember-student-loans-how-to-prepare-for-the-end-of-pandemic-tolerance/ Press release After nearly two years of pandemic relief, federal student loan payments are expected to resume in February. Now is the time for borrowers to reassess their budgets and familiarize themselves with their payment plans. “Federal forbearance has provided much needed relief for student loan borrowers during the pandemic, but it was always meant […]]]>

Press release

After nearly two years of pandemic relief, federal student loan payments are expected to resume in February. Now is the time for borrowers to reassess their budgets and familiarize themselves with their payment plans.

“Federal forbearance has provided much needed relief for student loan borrowers during the pandemic, but it was always meant to be temporary,” said Jessica Ferastoaru, student loan advisor at Take Charge America, a national loan counseling agency. credit and nonprofit student loans. “With payments resuming in a few weeks, borrowers should quickly create a game plan that works for them, taking into account loan status, employment and income. “

Ferastoaru shares options that borrowers should consider as the end of forbearance nears:

• Confirm your agent (s): With several agent changes during the forbearance period, the company handling your loan may have changed since you made your last payments. Visit studentaid.gov to confirm your loan officers.

• Explore Income-Based Repayment Plans (IDRs): If your income has declined in the past two years, request an IDR plan at studentaid.gov for a lower payment. IDR plans cap payments based on income and family size, adjusting as circumstances change. You must renew your certification annually. If you are already on an IDR plan, your recertification date may have been extended during the forbearance period. Contact your repairer to confirm.

• Learn about other options: If you don’t qualify for an IDR plan and can’t afford your payment, ask your agent for additional options like deferral or greater forbearance. In both options, payments are suspended, but with a deferral, interest on subsidized loans can be waived, while interest will accumulate in the event of forbearance.

• Manage delinquent loans: To avoid wage garnishment or tax refund offsets, make sure your loans are no longer in arrears. Options include consolidating or rehabilitating loans. Consolidation combines your loans into a brand new loan that you agree to repay under an IDR plan. After three consecutive payments, you can change your plan, if you wish. As part of the rehabilitation, borrowers agree to make nine consecutive payments on time over a 10-month period to get out of default. If your loans are currently being pardoned, make sure you don’t miss your first payment after the forbearance. If you miss more than one rehabilitation program, you may be removed from the program.

• Reinstate Automatic Payment: If you had set up automatic payments before Pandemic forbearance, contact your service agent to confirm if you need to re-register to ensure you do not miss your first payment. Your account status will change from “current” to “past due” after a single missed payment on a federal student loan. If your loan becomes 90 days past due, it can negatively impact your credit.

For step-by-step advice on student loan repayment options, check out Take Charge America’s student loan counseling services.


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Nearly two dozen new laws come into effect Jan. 1 – NBC 5 Dallas-Fort Worth https://4wallsandaview.com/nearly-two-dozen-new-laws-come-into-effect-jan-1-nbc-5-dallas-fort-worth/ Fri, 31 Dec 2021 14:50:30 +0000 https://4wallsandaview.com/nearly-two-dozen-new-laws-come-into-effect-jan-1-nbc-5-dallas-fort-worth/ New year, new laws. A set of bills passed by the Texas legislature earlier this year will become law as of Saturday, January 1. Lawmakers approved 23 bills in the May ordinary legislative session. These new laws will join hundreds of other new measures, articles of bills that have already entered into force this year. […]]]>

New year, new laws.

A set of bills passed by the Texas legislature earlier this year will become law as of Saturday, January 1. Lawmakers approved 23 bills in the May ordinary legislative session.

These new laws will join hundreds of other new measures, articles of bills that have already entered into force this year.

Here’s a look at the new laws coming into effect in the New Year:

  • Third Party Delivery Application Regulations: Senate Bill 911 puts more regulations on third-party delivery apps like Uber Eats or Grubhub. Several parties support restaurants in different ways, but a large portion prohibits apps from charging a restaurant a fee or requiring the restaurant to absorb a fee, unless agreed with the company in a written agreement.
  • Flood disclosure for tenants: Bill 531 requires landlords to tell potential tenants if their property is located in a 100-year-old floodplain. They are also required to notify tenants if there has been any flood damage on the property in the past five years. Previously, this state law only applied to those who bought a property, so the update is good news for tenants.
  • Voter Approval for Law Enforcement Funding: Senate Bill 23 requires voter approval before a county can cut law enforcement funding, a response to last year’s demands to “define the police.” This law only applies to counties with more than one million people, so it will apply to the counties of Dallas, Tarrant and Collin.
  • Advocacy for long-term care: Bill 3961 requires long-term care facilities to post information on their websites about a state organization that advocates for residents’ rights, the Office of the Long-Term Care Ombudsman, which is part of the Social Services Commission and Texas Health. This new law addresses the issues that arose when residents of long-term care homes were isolated from their loved ones for months at the start of the pandemic.
  • Tax exemptions for disabled veterans: Senate Bill 794 exempts homestead taxes for veterans who are considered totally disabled by the US Department of Veterans Affairs.
  • Tax exemptions for charities: Bill 115 House exempts from tax certain property belonging to charitable organizations if it is used to provide housing and related services to homeless people.
  • Property tax exemptions for religious organizations: Bill 1197 concerns “the period during which certain land belonging to a religious organization for the purpose of expanding a place of religious worship or building a new place of religious worship may be exempt from ad valorem taxation”. Religious organizations now have more time to remain exempt from taxes on specific goods, updated from six years to 10 years.
  • Historical structures: Bill 3777 concerns “the costs and expenses eligible for the purposes of the franchise tax credit for the certified rehabilitation of certified historic structures”.
  • Historic District Property Value: Bill 3971 concerns “the assessment for the purposes of the ad valorem tax of a residential building located in a designated historic district”.
  • Health care billing: Bill 1445 concerns “the applicability of sales and use tax to medical or dental billing services.”
  • Chicken coops & rabbit pens: Bill 2535 concerns “the valuation for ad valorem tax purposes of real estate that includes certain improvements used for the non-commercial production of food for personal consumption”. This applies to those who have chicken coops or rabbit pens on the property.
  • Pilot program for apprentices: Senate Bill 1524 concerns “a pilot sales and use tax rebate program for certain persons who employ apprentices”.
  • Mortgages: Senate Bill 43 relates to “residential mortgages, including the financing of residential real estate purchases by means of a wrap mortgage loan; provide licensing and registration requirements; authorizing an administrative penalty.
  • E-commerce fraud: Senate Bill 855 concerns “the electronic distribution of commercial recordings or audiovisual works”.
  • Training certificates: Bill 3131 concerns “the information to be included in the certificate of incorporation of a filing entity”.
  • Securities: Senate Bill 1280 relates to “certain provisions of the Securities Act for which a person offering or selling a security may be held liable to a person who purchases the security”.
  • Civil justice costs: Senate Bill 41 concerns “the consolidation and the distribution of the costs of civil justice of the State; the increase in certain civil justice costs; authorizing fees.
  • Housing tax exemptions: Senate Bill 1449 concerns “the exemption from ad valorem taxation of income-producing tangible movable property of a value below a certain amount”.
  • Insurance Code: Bill 1689 refers to “reinsurance credit governed by certain covered agreements and ceded to certain assuming insurers”.
  • Connections : Bill 2237 concerns “the privileges of the mechanic, the contractor or the materialist”.
  • Prominent Areas Negotiations for Businesses and Landowners: Bill 2730 concerns “the acquisition of real estate by an entity having eminent domain authority and the regulation of agents of easement or right of way”.
  • Members of the Appraisal Review Committee: Bill 3788 relates to “the training and education of members of the Appraisal Review Board”.
  • Town of Leander Municipal Management District: Bill 4638 relates to “the establishment of certain municipal management districts; give the power to issue bonds; giving the power to impose contributions, fees and taxes.


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Second charges are more likely to be used for debt consolidation in the fourth quarter https://4wallsandaview.com/second-charges-are-more-likely-to-be-used-for-debt-consolidation-in-the-fourth-quarter/ Wed, 22 Dec 2021 13:51:17 +0000 https://4wallsandaview.com/second-charges-are-more-likely-to-be-used-for-debt-consolidation-in-the-fourth-quarter/ “It is clear that there has been a comeback in favor of debt consolidation and this is likely to be fueled by data from a period when government support was withdrawn.” Looking at his total credit data for the last three months, up to the end of November 2021, the product divided by mortgage volume […]]]>

“It is clear that there has been a comeback in favor of debt consolidation and this is likely to be fueled by data from a period when government support was withdrawn.”

Looking at his total credit data for the last three months, up to the end of November 2021, the product divided by mortgage volume is 77% debt consolidation / 23% premium and in value 67% debt consolidation. debts / 33% premium.

This is compared to the previous period when the volume and value of loans to debt consolidation borrowers were lower. In the previous two quarters covered by the tracker, volume lending to blue chip borrowers had been around 10% higher than in the fourth quarter, and there was a more even split between debt consolidation and prime. .

Evolution Money says the tracker may well show the impact of ending government programs, such as leave payments, as homeowners need to find other sources of money and look to use their equity to pay off debts accumulated during. the pandemic.

For borrowers who specifically use a second mortgage for debt consolidation purposes, the average loan amount only increased slightly to £ 21,448, with an average term of 123 months, and the average LTV is also increasing. at 73.9%. Borrowers, on average, continued to consolidate five specific debts, but the average value of consolidated debts rose to £ 15,358.

Trend data continues to show consistency between the most common uses of a second mortgage for debt consolidation. Almost half were used to pay off a lender, followed by a bank payment, retail loan repayment, followed by auto financing.

For blue chip borrowers, the average loan amount also increased to £ 35,215, with an average term of 153 months, and an average LTV also dropping from 69% to 72%.

The main borrowers generally take back these second mortgages for debt consolidation (55%), home renovation and certain consolidations (23%) and home renovation (18%).

Steve Brilus, CEO of Evolution Money, commented: “Second Loads have always been used by homeowners for debt consolidation purposes, but in previous versions of the tracker we were starting to see an increasing number of Principal Borrowers using Seconds for purposes that weren’t just to pay off debts.

“This time around, however, it is clear that there has been a comeback in favor of debt consolidation and this is likely fueled by data from a period when government support was being removed, particularly regarding time off, and the fact that many people who had accumulated debts during the pandemic were looking for solutions to repay these more expensive debts.

“Perhaps this is why we have seen an increase in both the loan size and the average value of debt consolidated by Debt Consolidation and Blue Chip Borrowers, and why LTVs have increased. We shouldn’t underestimate the benefits that debt consolidation can offer and with second charge rates likely to be much lower than many other forms of debt, it makes perfect sense that some homeowners take on a second charge and pay off their most expensive debts first.

“It’s likely that as we move into 2022, debt consolidation will remain the number one reason for taking out a second mortgage, but we shouldn’t be excluding more prime borrowers requiring these products, especially if they are. they were able to secure an ultra-competitive market. first tax rate in the last 12 months, but still have to access additional equity.

“2021 has been a very strong year for the seconds market, and we certainly think 2022 will be the same. This is a growing area of ​​the market in which advisors should be active in helping these clients with these specific requirements.


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