Loan consolidation – R43DSFRS http://r43dsfrs.com/ Wed, 23 Nov 2022 14:00:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://r43dsfrs.com/wp-content/uploads/2021/07/icon-1.png Loan consolidation – R43DSFRS http://r43dsfrs.com/ 32 32 3 things you shouldn’t get a personal loan for https://r43dsfrs.com/3-things-you-shouldnt-get-a-personal-loan-for/ Wed, 23 Nov 2022 14:00:19 +0000 https://r43dsfrs.com/3-things-you-shouldnt-get-a-personal-loan-for/ Image source: Getty Images It is important to borrow for the right reasons. Key points Personal loans allow you to borrow money for any purpose. There are certain scenarios where it may not be profitable to withdraw one. It’s not a good idea to use a personal loan to finance a car, vacation, or small […]]]>

Image source: Getty Images

It is important to borrow for the right reasons.


Key points

  • Personal loans allow you to borrow money for any purpose.
  • There are certain scenarios where it may not be profitable to withdraw one.
  • It’s not a good idea to use a personal loan to finance a car, vacation, or small business without a solid plan.

There’s a reason consumers tend to love personal loans. Not only do they usually come with competitive interest rates, but they can also close quite quickly. Plus, a personal loan lets you borrow money for any reason, so you have a lot of freedom with your loan proceeds.

But it’s important to take out a personal loan for the right reason. And here are a few things you really shouldn’t get a personal loan for.

1. A car

Technically, you can take out a personal loan and use its proceeds to buy a car. But that’s usually not your best bet. You will often find lower interest rates on a car loan than on a personal loan, so the latter could be a more expensive option for financing a vehicle.

Discover: These personal loans are the best for debt consolidation

More: Prequalify for a personal loan without affecting your credit score

Personal loans are unsecured, meaning they are not tied to any specific asset. Auto loans, on the other hand, are secured by the vehicles they finance.

This means that if you fall behind on your car loan, you risk losing your vehicle. If you fall behind on your personal loan repayments, it won’t necessarily happen, but you could face other serious consequences, like significant damage to your credit score, making it difficult to borrow money. money when you need it.

Because auto loans are secured, they are not as risky as personal loans. And in exchange for that lower level of risk, you could walk away with a lower interest rate on any auto loan you take out.

2. Vacation

Taking a vacation is a great way to clear your mind and avoid burnout. As such, it is an important thing. But you don’t need to travel to enjoy some time away from routine.

If you’re short on cash, you can explore your own city or take some time to relax close to home. And if you can’t afford a vacation, it’s really not a good idea to take out a personal loan to finance one.

Every time you borrow money, you earn interest on that money. So a modest vacation could end up costing a lot more by the time you finish paying off your personal loan.

3. A business idea you haven’t really thought about

Small business loans are not always easy to obtain. If you are unable to obtain one, you can instead consider a personal loan and use its proceeds for start-up costs. But if you’re going to go this route, make sure you have a solid business plan first.

Unfortunately, many small businesses fail within a few years. If this happens, you will be responsible for your personal loan repayments, and at that time they could be a significant financial burden.

A personal loan could be a solid borrowing option in a number of different circumstances. But think twice before pulling one out. And also, make sure there isn’t a more ideal borrowing option to turn to – a more affordable option from an interest rate perspective.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Citizen survey finds young homeowners most likely to apply for HELOCs https://r43dsfrs.com/citizen-survey-finds-young-homeowners-most-likely-to-apply-for-helocs/ Mon, 21 Nov 2022 02:38:07 +0000 https://r43dsfrs.com/citizen-survey-finds-young-homeowners-most-likely-to-apply-for-helocs/ Adam Boyd According to a survey recently conducted by Citizens Bank, around 77% of millennials are likely to apply for a HELOC within the next three years. As interest rates continue to rise, home equity lines of credit (HELOCs) remain a popular tool for US homeowners looking to access a flexible borrowing option. The new […]]]>

According to a survey recently conducted by Citizens Bank, around 77% of millennials are likely to apply for a HELOC within the next three years.

As interest rates continue to rise, home equity lines of credit (HELOCs) remain a popular tool for US homeowners looking to access a flexible borrowing option. The new study, which measures homeowner sentiment around HELOCs, pullout refinances and other issues affecting homeowners, shows that 84% of homeowners have some level of familiarity with HELOCs and, of those familiar, almost half (46%) see themselves as likely to apply within the next three years, with younger generations being the most likely.

Current homeowners also ranked personal loans alongside HELOCs (69%) and personal bank loans (69%) among their preferred lending alternatives.

“Homeowners are tracking their home equity more closely as prices fluctuate, and the growing HELOC space is proof of that,” Adam Boyd, head of home equity lending at Citizens, said in a statement. “We are fully committed to the HELOC space, as evidenced by our leading offerings and this survey, which shows that Millennials and Gen Z continue to embrace the HELOC product or consider applying as rates change their goals. and ambitions of ownership.”

Millennials and Gen Z embrace HELOCs as rates rise

The survey found that younger generations are much more likely to consider applying for a HELOC, including 60% of Gen Z and 77% of Millennials, citing they were likely to apply in the next three years.

Generations had different expectations for how they would or would have used HELOCs with Millennials (45%), Gen Xers (54%) and Baby Boomers (38%) reporting using the product the most for home renovations, while Gen Z were more likely to consider the product to help build their savings fund (39%).

Despite market volatility, owners stay put

As homeowners navigate today’s fluctuating real estate market, Citizens also found that 68% of respondents do not plan to sell their home in the next five years, indicating hesitation and slow inventory that the United States continues to face. As HELOCs can also be used for a range of uses, the survey found that renovations are the most popular use among all ages (43%) and are likely to grow as many buyers stay in homes longer. their home and are looking for customizations.

“With homeowners facing record levels of inflation, it’s important that they create strategies to streamline existing debt into manageable payments and that’s possible through a HELOC,” Boyd said. “HELOCs are popular right now because they offer homeowners a low-cost solution to accessing their home’s equity for financing needs without affecting their mortgage rate.”

Consumers remain confident in their mortgage payments

Amid fears of a potential economic downturn, many homeowners surveyed were confident in their ability to pay off their mortgage over the next 12 months, with 52% feeling completely confident and 6% not feeling overly or not at all confident. all confident.

Rising interest rates push homeowners to renovate

As refinancing declines due to rising interest rates, many consumers are also considering HELOCs as an alternative to cashing out funds. Of those who previously used cash refinance, homeowners most often invested the funds in a renovation (33%), debt consolidation (31%) or savings fund (27%).

When it comes to mortgage interest rates, more than a third (35%) of respondents said their current rate was between 2 and 4%. Only 8% of owners surveyed have a rate attributed to 6% or more and 22% have a rate between 4 and 6%.

The survey was conducted for Citizens by Wakefield Research among 1,000 nationally representative U.S. homeowners, October 14-23, 2022, using an email invitation and online survey .

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Only 20% of D2Cs sell in APAC, more are coming https://r43dsfrs.com/only-20-of-d2cs-sell-in-apac-more-are-coming/ Thu, 17 Nov 2022 22:05:19 +0000 https://r43dsfrs.com/only-20-of-d2cs-sell-in-apac-more-are-coming/ Direct-to-consumer (D2C) companies may not have a huge presence in the Asia-Pacific (APAC) region, but with significant investment planned for the near future, D2C is poised to grow in a big way. spectacular in the region even over the next year. For the PYMNTS study “The Emerging APAC Opportunity Playbook: Mapping International Expansion Edition”, created […]]]>

Direct-to-consumer (D2C) companies may not have a huge presence in the Asia-Pacific (APAC) region, but with significant investment planned for the near future, D2C is poised to grow in a big way. spectacular in the region even over the next year.

For the PYMNTS study “The Emerging APAC Opportunity Playbook: Mapping International Expansion Edition”, created in collaboration with Citcon, we surveyed 500 companies located in the United States, United Kingdom and Canada to get an idea of ​​​​the importance of the APAC region for their expansion strategies.

What we found reveals that D2C retailers are lagging behind in the region, but probably not for long.

Get your copy: The Handbook of Emerging APAC Opportunities: Mapping International Expansion Edition

The study found that only one in five D2C manufacturers currently sell in the region, far behind other types of businesses, but another 17% plan to enter the region next year. At that time, the category’s presence in the region will be comparable to that of online marketplace merchants and omnichannel retailers. Indeed, a greater proportion of D2Cs plan their entry into the zone than any other type of online seller except specialist eTailers.

In fact, 73% of D2C manufacturers expect their APAC sales to increase over the next three years, and 42% expect their APAC sales to increase by more than 50% during that time. Additionally, D2C manufacturers expect significantly higher cross-border sales increases in the region than other categories such as omnichannel retailers or specialty eTailers.

As such, it appears that D2C vendors are the most optimistic of all about their APAC growth potential, poised to expand into the region in the coming months.

According to the study, “it is clear that the bulk of APAC’s international expansion over the next three years will be driven by the D2C market and eTailers.”

See now: The Handbook of Emerging APAC Opportunities: Mapping International Expansion Edition

How consumers pay online with stored credentials
Convenience drives some consumers to store their payment credentials with merchants, while security concerns give other customers pause. For “How We Pay Digitally: Stored Credentials Edition,” a collaboration with Amazon Web Services, PYMNTS surveyed 2,102 US consumers to analyze the consumer dilemma and reveal how merchants can overcome holdouts.

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How to choose the best debt consolidation lender? https://r43dsfrs.com/how-to-choose-the-best-debt-consolidation-lender/ Tue, 15 Nov 2022 04:46:34 +0000 https://r43dsfrs.com/how-to-choose-the-best-debt-consolidation-lender/ The Good Brigade/Getty Images Debt consolidation is combining multiple debts into one loan to reduce the number of bills you pay each month. Ideally, when consolidating debt, you also reduce the interest rate you pay and you can ultimately pay off the debt faster. If you are considering debt consolidation, you should start by deciding […]]]>

The Good Brigade/Getty Images

Debt consolidation is combining multiple debts into one loan to reduce the number of bills you pay each month. Ideally, when consolidating debt, you also reduce the interest rate you pay and you can ultimately pay off the debt faster.

If you are considering debt consolidation, you should start by deciding which method is best and evaluating your financial and credit health to determine if you are a good candidate for debt consolidation. Once you’ve taken these steps, you can move on to researching and evaluating lenders to find the best solution to help you pay off those crippling debt balances sooner.

Identify the type of debt consolidation that suits you best

The first step is to evaluate debt consolidation options and select the method that is best for you. Common methods include:

  • Personal loan: Many lenders offer debt consolidation loans or personal loans designed to help you pay off your debts faster and save a lot of interest. Debt consolidation loans usually come with a fixed interest rate and a loan term of 1 to 10 years. You are free to use the funds as you see fit, but the idea is to pay off your debt balance with the loan proceeds.
  • Zero APR credit card: Also known as balance transfer credit cards, these debt products can help you save a significant amount in interest and eliminate high-interest debt balances faster. They are generally reserved for consumers with a good or excellent credit rating. You should only consider this option if you can repay the balances you transfer to the card during the introductory period. Otherwise, you could end up paying a fortune in interest.
  • Home Equity Loan: You can convert up to 85% of your home equity into cash and use it to consolidate your debt with a home equity loan. It acts like a second mortgage and comes with a repayment period of between five and 30 years. The interest rate is also fixed and lower than most credit cards, but the main drawback is that your home guarantees these loan products. Therefore, you could lose your property to foreclosure if you fall behind on loan repayments.
  • Home Equity Line of Credit (HELOC): A HELOC is a home equity loan, but you will not receive the loan proceeds in a lump sum. Instead, you’ll have access to a pool of money that you can draw on as needed during the 10-year draw period. Interest-only payments are also required during the drawdown period on most HELOCs. Once completed, you will repay in monthly installments over a term of up to 20 years. The amount of the monthly payment can fluctuate since the interest rate on HELOCs is generally variable.

It’s important to select the best option for your needs, as this will help determine the type of lender you choose. Not all lenders offer the same borrowing options. Once you’ve decided on a consolidation option, you can analyze each lender’s interest rates, loan terms, and fees to determine which offers make the most financial sense for your goals.

Determine your qualifications

Lenders want to know that you are creditworthy and have the means to make timely payments on the loan or credit card you are using to consolidate your debt. This means you can expect the lender to assess your credit score and credit history to determine if you have a history of responsible bill paying.

Lenders will also look at your debt-to-equity ratio to determine if you can afford monthly repayments and if you’re not taking on more than you can handle. Lenders also want to see verifiable proof of income and will be looking for long-term financial stability.

Also, be aware that the most competitive interest rates are generally reserved for borrowers with a good or excellent credit rating. A lower credit score doesn’t always mean you’ll automatically be denied a loan or credit card. Still, you will usually get a high interest rate if approved to offset the risk of default posed to the lender or creditor.

Ultimately, you may find that it doesn’t make sense to consolidate your debt if you have bad credit if you only qualify for a higher rate than you’re currently paying.

Shop around for lenders

Look for lenders that offer the type of debt consolidation you are looking for. Most offer online prequalification with a flexible credit application. If you’re considering a debt consolidation loan, you’ll also get an overview of potential loan costs to compare your options with.

In addition to checking online lenders when shopping, it may be a good idea to check the options available from banks or credit unions. You may qualify for more favorable loan terms if you have a pre-existing relationship with a bank or lender.

Regardless of the type of lenders you include on your shortlist, prequalification takes the guesswork out of finding lenders willing to work with you. Plus, you’ll avoid going to lenders who might deny you a loan or credit card and get an unnecessary credit check.

Assess the lender

Once you have a shortlist of at least three lenders, it is a good idea to compare them side by side and compare the factors below, which will impact the overall cost of your loan, your ability manage it and the customer service you receive:

  • Annual Percentage Rates (APR): This figure represents the actual annual cost of borrowing. It includes interest and fees determined by your credit score and debt-to-equity ratio. Knowing this information for each loan option can help you assess which one will cost the least.
  • Lender fees: Some lenders charge origination fees ranging from 1-10% of the loan amount. Even if the APR is on the lower end, high origination fees might make a different loan product the more practical choice. Similar to APR rates, knowing each lender’s fees can help you determine which loan is more expensive or best suited for you.
  • Characteristics of the lender: Top lenders also have an online dashboard where you can monitor your account, schedule payments, and chat with customer service representatives. It’s also great if free educational resources can help you manage your credit and overall financial health more effectively. Understanding the features and customer service offerings of each lender gives you a better idea of ​​which loan will be easier to manage.
  • Customer reviews: You want to select a reputable lender with a proven track record of providing quality service. Checking online reviews from past clients can be a good way to gain peace of mind before signing on the dotted line with a lender. Seeking accreditation from the Better Business Bureau (BBB) ​​may also be a good idea.

At the end of the line

Before applying for a loan or credit card to consolidate your debt, weigh your options to decide which type of debt consolidation makes the most sense. Plus, get prequalified with at least three lenders to see potential loan quotes and compare your options. This will allow you to make an informed decision, reach your debt repayment goals faster, and save money.

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How to improve your credit score https://r43dsfrs.com/how-to-improve-your-credit-score/ Sat, 05 Nov 2022 00:14:22 +0000 https://r43dsfrs.com/how-to-improve-your-credit-score/ NEW YORK – November 4, 2022 – (Newswire.com) iQuanti: If you want to improve your credit score, there are a few simple strategies anyone can follow. This could mean finding financial support services that will help you make more informed credit decisions. Or it could mean using a personal loan to leverage debt to boost […]]]>

NEW YORK – November 4, 2022 – (Newswire.com)

iQuanti: If you want to improve your credit score, there are a few simple strategies anyone can follow. This could mean finding financial support services that will help you make more informed credit decisions. Or it could mean using a personal loan to leverage debt to boost your score. Learn more about improving your credit score with some helpful tips.

Using personal loans is a great way to boost your credit score if you decide to use one or more for debt consolidation. Credit card interest rates vary widely, but most lenders have loans with more manageable APRs. Additionally, receiving a loan can help lower your credit utilization rate, contributing to a better credit score.

Another way to improve your credit score is to make sure you make all your payments on time and in full, including any bills, loans, or other debts you may have. Paying off your debts on time shows lenders that you are a responsible borrower, which improves your chances of being approved for future financial products. And, as an added benefit of paying off your debts on time, it also saves you money in the long run by avoiding unnecessary and costly interest charges and late fees.

You can also increase your credit score by diversifying the types of credit assigned to your credit history. Contacting a financial service provider means using revolving lines of credit, like credit cards or HELOCs, and installment loans, like personal or car loans. Having a mix of different types of credit shows lenders that you can manage different types of debt responsibly.

Finally, you can improve your credit score simply by maintaining a good credit history. You should keep your credit accounts open and active, even if you don’t use them regularly. Lenders who see that you have a long history of responsible credit use, making timely payments to reduce your debts, are more likely to approve financial products for you.

If you’re looking to improve your credit score, here are some of the easiest ways to do it. Following these tips should prove to lenders that you are responsible with the money and that you are a borrower they can partner with to help you achieve your financial goals. Once your credit score improves, accessing financial products of all kinds should be much easier. On top of that, these products may even have better terms, like lower interest rates for personal loans.

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SOFI Stock (NASDAQ:SOFI) Third Quarter Earnings This Week – Is This A Buy? https://r43dsfrs.com/sofi-stock-nasdaqsofi-third-quarter-earnings-this-week-is-this-a-buy/ Sun, 30 Oct 2022 07:25:00 +0000 https://r43dsfrs.com/sofi-stock-nasdaqsofi-third-quarter-earnings-this-week-is-this-a-buy/ In all likelihood, SoFi (NASDAQ: SOFI) is expected to post a surprise in terms of third-quarter earnings, when it is published on November 1. The need for personal loans continues to increase, especially during tough economic times when people generally need additional funds. Credit card companies are getting more aggressive with their rates, so people […]]]>

In all likelihood, SoFi (NASDAQ: SOFI) is expected to post a surprise in terms of third-quarter earnings, when it is published on November 1. The need for personal loans continues to increase, especially during tough economic times when people generally need additional funds. Credit card companies are getting more aggressive with their rates, so people have turned to personal loans instead. SoFi has been able to take advantage of this trend, as it offers both consumer financial services and loans. The future looks bright for the company. Therefore, we are bullish on SOFI stock.

Investors are hoping strong bank earnings signal the resilience of the economy. Investor optimism has been high lately, with most reacting positively to recent financial results from major banks. This is great news for SOFI investors, who will have hoped that strong bank earnings would signal that the financial sector is on the way to a comeback.

SoFi’s stock has fallen more than 65% since the start of the year, but it should recover soon. It only has two months left this year, and if it can create an earnings surprise, we could see its price rise again. It trades at a beta of around 2.0, which suggests it is twice as volatile as the broader market. Therefore, investing in it carries a fair share of risk.

However, it presents itself as an excellent bet before winnings. It is currently trading at around 3.5 times forward sales, which is significantly lower than a few months ago.

SoFi taps into growing demand for personal loans

The financial services offered by SoFi are designed to help consumers with their daily needs. The company has won millions of customers through high-yield checking and savings accounts, credit cards, brokerage services, and more. Moreover, it offers loan products that can be approved faster and at better rates thanks to its massive database. SoFi is essentially a financial one-stop-shop.

In recent quarters, the company has exceeded expectations. With its third quarter results looming, it is plausible to assume another strong performance on the back of a robust personal lending trend that continues to grow steadily. SoFi’s expansion into new markets and its ability to provide personalized service will make it easier to reach new customers.

Additionally, the company’s strong balance sheet is a major asset to the business. He holds a whopping $707 million in cash, giving him plenty of leeway to continue growing his business at a healthy pace for the foreseeable future. What is more encouraging is that his losses have improved considerably.

It recorded a loss of $0.26 per share in the second quarter of 2021, which improved by 53.8% in the second quarter of this year to a loss of $0.12 per share. Earnings may turn positive by next year. Additionally, SoFi ended the quarter with 4.3 million members, a 69% improvement over the same period last year.

Therefore, we are extremely positive about the future growth and success of the business. Its losses are unlikely to hamper its plans going forward, and with student loans improving drastically next year, SOFI stock could rebound strongly.

What is the SoFi stock price target?

As for Wall Street, SOFI stock maintains a moderate buy consensus rating based on six buys, three holds and no sells assigned over the past three months. The average SOFI price target is $8.25, implying an upside potential of 51.38%. Analyst price targets range from a low of $7 per share to a high of $10 per share.

Conclusion: SOFI stock is likely to beat earnings

The company is expected to release its third quarter results soon, and investors will have a better understanding of where it stands. In all likelihood, however, he should display another solid pace in both his top and bottom lines.

The rise in personal loans is fueled by consumers looking for debt consolidation and easily accessible funds. SoFi capitalized on this opportunity by growing its origination rate faster than its peers.

Stocks have trended higher following recent bank earnings, but investors should also prepare for greater volatility. The Federal Reserve will raise interest rates at its upcoming meetings over the next two months as inflation remains incredibly high.

Therefore, volatility is a given in the current market scenario. However, that doesn’t take away from the quality of SoFi and a long-term bull case. Investors should look to the long term and buy the stock as it trades near its 52-week low.

Disclosure

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Payment delays suggest paycheck-to-paycheck pressures | PYMNTS.com https://r43dsfrs.com/payment-delays-suggest-paycheck-to-paycheck-pressures-pymnts-com/ Thu, 27 Oct 2022 00:17:38 +0000 https://r43dsfrs.com/payment-delays-suggest-paycheck-to-paycheck-pressures-pymnts-com/ Every earnings season tells a story. So far, the story is that consumers remain dynamic, always ready to open their wallets and use their credit cards to get what they need. Visa’s results on Tuesday evening (October 25) showed double-digit growth in card spending; American Express said business billed increased 30% in the last quarter. […]]]>

Every earnings season tells a story. So far, the story is that consumers remain dynamic, always ready to open their wallets and use their credit cards to get what they need.

Visa’s results on Tuesday evening (October 25) showed double-digit growth in card spending; American Express said business billed increased 30% in the last quarter. And while spending growth is slowing, it’s still growing.

The wild card is what happens with those bloated balances — especially in the paycheck-to-paycheck economy.

While no one is saying canaries sing in a coal mine when it comes to credit, for some of the consumers in the lower credit rungs, for younger consumers as well, there are some data points worth watching.

Synchrony Financial differs from other players as it offers the private label card which tends to be a preferred option by consumers with relatively lower credit scores. The company’s SEC filings reveal that approximately 94.5% of its claims relate to these partner or program branded cards.

The company’s earnings results offer a few data points that hint at some of the pressures on consumer pay. Core expense growth was 16% in the quarter.

And, as CEO Brian Wenzel said on the call, “when we look at consumer spending behavior patterns we don’t see much change,” consumers aren’t changing their behavior, and management called for growth in spending by Millennials and Gen Z, where these cohorts account for about 25% of sales.

The savings cushion is, for some of Synchrony’s borrowers, less padded than it once was. Consumer payment rates on card balances are slowing, just a little, and the balances themselves are increasing. Delinquencies are also on the rise.

There is still a savings cushion in place, although it has shrunk a bit. The percentage of customers who spent the full amount of stimulus payments they received amid the pandemic has increased from 38% to 40% just a few months ago. Inflation weighs heavily on these excess savings.

Management noted on the call that the balance cuts in the upper tiers of consumer savings have been (somewhat replenished), the lower tier has reduced their savings by approximately $100.

PYMNTS’ own data shows that for paycheck-to-paycheck consumers who are struggling with expenses, and where the average savings on hand is less than $3,000, compared to more than $4,000 at the peak.

Discussing credit performance, Wenzel said on the call that “we feel good about credit” as there continue to be “signs of gradual normalization.” Synchrony, its latest additional results released on Tuesday, show its delinquency rate was 3.28% compared to 2.42% last year, and its delinquency rate for over-90s was 1.43% compared to 1, 05% last year.

What remains to be seen is how consumers juggle these balances, which in Synchrony’s latest filings have increased 8% to an average of $1,268 per account. We’ll know more as companies like LendingClub weigh in on loan consolidation and the overall state of paycheck to paycheck consumer – but for now the consumer is willing to spend, has the dry powder to do so – and the pressures are manageable, unless so far.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

https://www.pymnts.com/news/delivery/2022/consumers-order-fewer-prepared-food-deliveries-as-prices-climb/partial/

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More employers are adding student loan repayments as a job perk https://r43dsfrs.com/more-employers-are-adding-student-loan-repayments-as-a-job-perk/ Thu, 20 Oct 2022 17:48:17 +0000 https://r43dsfrs.com/more-employers-are-adding-student-loan-repayments-as-a-job-perk/ With the current focus on student loan relief, a small but growing number of companies are adding or considering adding student loan relief as a benefit for their workers. Some offer student debt consolidation plans so people get a better interest rate. But once that’s done, the loan is privatized and not eligible for future […]]]>

With the current focus on student loan relief, a small but growing number of companies are adding or considering adding student loan relief as a benefit for their workers.

Some offer student debt consolidation plans so people get a better interest rate. But once that’s done, the loan is privatized and not eligible for future debt forgiveness or federal government payment breaks.

Other companies offer monthly contributions to the loan balance or match what workers pay.

“They’ve shown that it’s actually more important to retention that this particular program gives them money exactly to pay off their student loans and just that, as opposed to just increasing their salary,” Craig Copeland said. , Director of Wealth Benefits Research. at the Employee Benefits Research Institute.

He said there was a lot of interest in the benefits of student loans before the pandemic. COVID-19 has put them on hold, but the focus is once again on those benefits.

Part of what’s helping are legislative changes made by Congress during the pandemic, giving employers tax relief in some cases by offering student loan assistance benefits.

But it’s unclear how long the tax relief will last. Copeland said there are other unknowns.

“Older people,” he says, “have already paid off their student loans or don’t have children. They’re not happy with that, so it’s created some kind of problems within the workforce. Employers should therefore exercise caution.

He said some companies are tackling this problem by adding college savings account options instead.

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4 great ways to pay off $5,000 in credit card debt https://r43dsfrs.com/4-great-ways-to-pay-off-5000-in-credit-card-debt/ Tue, 18 Oct 2022 13:40:05 +0000 https://r43dsfrs.com/4-great-ways-to-pay-off-5000-in-credit-card-debt/ Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. Need help paying off $5,000 in credit […]]]>

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Need help paying off $5,000 in credit card debt? Keep reading to understand how credit card debt increases and four great ways to pay it off. (Shutterstock)

Carrying any credit card balance can be costly. Because credit card balances are open-ended, you don’t have a fixed repayment date, which can make it difficult to create a clear debt repayment plan. Plus, interest on that debt can add up, especially if you keep letting balances and new charges roll over from month to month. But that doesn’t mean you can’t find a way forward, especially if you have a manageable amount to repay, like $5,000.

If you have $5,000 in credit card debthere are four good strategies for settling your balances.

A debt consolidation loan is a way to pay off high interest credit card debt. Credible, it’s easy to view your prequalified personal loan rates from various lenders, all in one place.

Why You Should Pay Off $5,000 in Credit Card Debt Fast

Credit cards come with high interest rates, and this high cost is the main reason why you can benefit from them. pay off credit card debt as quickly as possible.

It’s important to note that while $5,000 in credit card debt may not seem like much, it can add up. For example, if you have a credit card balance of $5,000 with an interest rate of 18% and you make a monthly payment of $100, it will take you almost eight years to pay off and you will pay 4,311 $ in interest, almost as much as your original balance. It’s easy to see how this debt could follow someone for a long time and cause them financial stress if they don’t take the necessary steps to pay it off quickly.

Having debts of all kinds can lead to feelings of stress, anxiety and depression. Paying off all of your debt as quickly as possible will not only allow you save you moneybut it can be very beneficial for your mental health.

14 MILLION AMERICANS HAVE OVER $10,000 IN CREDIT CARD DEBT, SURVEY SAYS: 3 WAYS TO PAY IT DOWN QUICKLY

4 great ways to pay off $5,000 in credit card debt

There are there is no right way to pay off your credit card debtbut these four popular debt repayment methods are a good place to start.

Which one is best for you will depend on your unique financial situation and which method you find most motivating.

1. Debt Snowball Method

The debt snowball method involves making all required minimum payments on all sources of debt you have each month, but taking all the extra money you can afford to spend and putting it on the card credit with the lowest balance. This way, you can progress faster in paying off the smaller balance.

Once you’ve paid it off, you can use that card’s minimum monthly payment and any additional funds to pay off the card with the lowest balance, and so on. This strategy won’t save you the most on interest, but it can be motivating to see balances disappear faster.

Good for: Those who want to see quick wins to help them stay motivated to pay off their debt

2. Debt avalanche method

With the debt avalanche method, you prioritize paying off the credit card with the highest interest rate while making minimum payments on your other balances. Once you’ve paid off that card, you’ll put the money you paid on the card with the next highest interest rate, and so on, until you’ve paid off all of your balances.

Since you’re tackling your most valuable balances first, this method may help you save more on long-term interest charges, but it may not be as motivating as the bullshit strategy. debt snow.

Good for: People who want to save more on interest charges

3. Consolidate with a debt consolidation loan

If you feel overwhelmed by several sources of debt, you can consolidate them into a single source of debt by taking out a personal debt consolidation loan. When applying for that new loan, if you can get a better interest rate than you average on all your sources of debt, you can save money on interest. The downside here is that you generally need a good credit score to qualify for a better interest rate.

Good for: People with good credit who want a clear end date for paying off their debt

Visit Credible for compare personal loan rates from various lenders, without affecting your credit score.

4. Open a balance transfer card

Similar to a debt consolidation loan, you can use a balance transfer card to consolidate multiple sources of credit card debt. The key to getting the most out of a balance transfer card is to look for a card that will offer you an introductory APR of 0%. During this period, you will not have to pay interest, which will allow you to pay off your debt more easily and quickly.

But you’ll usually need good credit to qualify for a balance transfer card with a 0% APR offer. And if you still have a balance at the end of the promotional period, you’ll start earning interest at the card’s regular rate, which can be high.

Good for: People who can afford to repay the full balance before the end of the introductory APR period

IS IT BETTER TO PAY OFF DEBT OR TO SAVE?

4 Wrong Ways to Manage Credit Card Debt

Some debt repayment methods are much less helpful — and in some cases, harmful — for getting out of credit card debt. You should avoid these four options if possible:

  • Exploiting home equity — It’s generally not a good idea to use a home equity loan to pay off your credit card debt, even though the loan may have a lower interest rate. A home equity loan is secured by your home. If you don’t repay this debt, you risk losing your home.
  • Take out a 401(k) loan — Borrowing money from your 401(k) to pay off your credit card debt doesn’t just hurt the progress of your retirement savings. This decision also results in the payment of interest for borrowing your own money and automatic payroll deductions until you repay the loan.
  • Pursue debt settlement — Debt settlement companies claim that they can help you settle or renegotiate your debt to make it easier to pay off. This is not something they can guarantee, and they often charge high fees.
  • Filing for bankruptcy — Filing for bankruptcy may seem like a way to wipe the slate clean, but this process can seriously damage your credit. Bankruptcy stays on your credit report for seven to 10 years and can make it difficult to obtain loan products, get good interest rates, and even rent an apartment.

How to Avoid Credit Card Debt in the Future

Once you’ve paid off $5,000 in credit card debt, it’s important to wipe the slate clean. Here are some ways to avoid credit card debt in the future:

  • Understand how the debt arose in the first place. To prevent debt from piling up again, think back to where the debt originated. Have you spent too much on unnecessary purchases? Is your rent too high? Have you lent too much money to friends? Try to get to the root of the problem in order to avoid these problems in the future.
  • Make or rebalance your budget. Look at where you can make improvements to your budget to prevent spending from falling back on you. Many free budget management tools are available online to help you track your spending.
  • Build an emergency fund. One way to avoid incurring high-interest credit card debt in the future is to have an emergency fund ready and ready to help you when unexpected expenses come your way, such as repairs. car or medical expenses. Try to save three to six months of living expenses in your emergency fund.

If you’re ready to apply for a personal loan as the first step toward meeting your debt repayment goals, Credible makes it quick and easy compare personal loan rates to find the right one for your unique situation.

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Cost of living crisis: do you lack the help of your employer? | Social advantages https://r43dsfrs.com/cost-of-living-crisis-do-you-lack-the-help-of-your-employer-social-advantages/ Sat, 15 Oct 2022 09:00:00 +0000 https://r43dsfrs.com/cost-of-living-crisis-do-you-lack-the-help-of-your-employer-social-advantages/ Many employers are stepping in to help workers cope with the rising cost of living, with some companies offering a one-time bonus or other assistance ranging from enhanced employee discounts to free food. Some big companies are giving lower-paid workers extra money to help combat the impact of soaring inflation and higher bills. In the […]]]>

Many employers are stepping in to help workers cope with the rising cost of living, with some companies offering a one-time bonus or other assistance ranging from enhanced employee discounts to free food.

Some big companies are giving lower-paid workers extra money to help combat the impact of soaring inflation and higher bills.

In the meantime, there may be benefits you haven’t used that could help you balance your budget even if your boss doesn’t give you a raise.

For example, many companies offer perks such as discounts at local businesses, bike-to-work programs, membership loans, free eye tests, and the ability to resell unused vacation time.

Jonathan Watts-Lay, director of Wealth at Work, a financial wellness and retirement specialist, says if you’re struggling with your finances, talk to your employer to find out what help they have. “Even if they’re not offering anything at the moment, sharing the challenges you’re facing can inspire them to build support.”

Likewise, your union – if you’re a member of one – will often offer offers and other help, so take the time to see what’s on offer.

Cost of living payments

Wealth at Work says if you’re having difficulty with your finances, talk to your employer. Photograph: Dominic Lipinski/PA

Major employers, including HSBC, John Lewis and Virgin Media O2, are paying some workers extra payments to help them cope with the rising cost of living.

Virgin Media O2 announced earlier this month that it would make payments totaling £1,400 to employees earning £35,000 and under.

The first payment of £400 will be issued next month, followed by another £400 in January 2023 and then six payments of £100 per month until July 2023.

Meanwhile, John Lewis recently revealed that full-time staff will receive a one-off £500 cost of living payment – with part-time staff eligible for a lower amount.

Banks including HSBC and Nationwide are offering the lowest paid staff bonuses of £1,500 and £1,200 respectively.

Wage increases

Other companies say they are giving staff a pay rise to combat the rising cost of living rather than making lump sum payments. However, there will often be different reasons why companies raise wages – for example, in sectors such as hospitality and retail, these are likely to be staff shortages and companies competing to recruit and retain workers who are the main factors behind some of the recent wage increases.

That said, some companies target salary increases towards the lowest paid staff members.

English breakfast: fried egg, bacon, beans and toast on a plate close-up.  horizontal top view
Some companies offer free food to workers during shifts.
Photography: Sergii Koval/Alamy

Free food and help with bills

Some employers are handing out free meals and snacks to help workers cope with the cost of living crisis, while others have hardship funds to support staff struggling to pay their bills.

For example, John Lewis and Waitrose will offer free food during the winter and will also double their financial aid fund to help workers pay their bills.

Sainsbury’s says it will give workers access to ‘basic groceries’ during their shifts from this month.

Hybrid work and expenses

Allowing staff to work flexibly between home and the office allows people to weigh the cost benefits, for example, saving money on your commute versus using more gas and electricity while working from home.

You must also ensure that you claim reimbursement for all expenses to which you are entitled. For example, your employer may agree to pay a certain amount for fuel costs or to cover food and beverages if you need to be out of the office.

Discounts

Check to see if your company offers discounts as part of your benefits package.

For example, they may have agreements with local stores or other businesses such as salons and gyms, to give money to employees.

Some supermarkets are increasing their employee discounts as part of their package to help workers cope with the cost of living crisis.

As well as a pay rise for staff, Tesco has increased its Clubcard discount allowance for employees from £1,000 to £1,500, meaning workers can get 10% off – rising to 15% off discount every pay weekend.

Asda has scrapped the 12-week qualification period for workers to access the 10% staff discount. The grocer says there is no cap on how much employees can spend with their card and it saves them around £400 a year.

Meanwhile, Iceland has increased its staff discount offer from 10% to 15% off.

Resell annual leave

Some companies give workers the option of buying or selling vacation days at a certain time of the year.

If you think you don’t need all of your vacation allowance, you may be able to sell some of it back to the company and get paid instead.

Debt help

You may be able to get debt help through your workplace. Many companies offer financial education seminars on debt management to help employees understand how to manage and repay debt, and what help is available, says Wealth at Work. Some also offer loan consolidation through payroll, to support those who need help paying off their debts.

Check with the human resources department to see what your company offers. If there is no specific debt support service available, they should direct you to the appropriate support. For example, a charity such as StepChange or the government service MoneyHelper.

Salary sacrifice, etc.

Someone rides along a cycle lane alongside heavy traffic in Birmingham.
Does your company offer a work-cycle program? Photograph: Jacob King/PA

Many companies offer “wage sacrifice” options like work-to-bike programs or things like loaner season tickets.

With wage sacrifice, payments for the bike, car, or whatever are deducted from your gross income.

These programs will often allow you to spread the cost of big-ticket items over several months and can help you manage your money.

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