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How to Stop Spending Money You Don’t Have
The post How to Stop Spending Money You Don’t Have appeared first on Penny Pinchin' Mom.
So, you want to stop spending money. That might be easier said than done. When it comes to managing your money, there are things you need to do. You know you need to budget, try to get out of debt and control your spending.
The issue is not necessarily that you are spending money on things you don’t have; you just aren’t spending it in the right way. The issue is not that you don’t make enough money, it is just not having a plan on how to use it once you get it.
That’s what happened to me. Unfortunately, I didn’t have a plan for my money. That lead me down a path I did not like.
After years of working without a plan, I found myself on the steps of a courthouse declaring bankruptcy. And, because I did not learn how to make the right changes in managing my money, my husband and I found ourselves in debt a few years later.
The difference with the second time I had debt was that I took responsibility for it. I owned what happened, and he and I worked together to make changes to not only pay off our debt but never go down that same road again.
If you find yourself in the same situation, you need to make big changes. To start, you have to stop spending money you don’t have. Plain and simple.
HOW DO YOU KNOW IF YOU ARE OVERSPENDING?
You’ve maxed out your credit cards
When there is no room to charge anything on your cards, you might have a problem. In most cases, maxed credit cards signals you are living beyond your means. If you have to continue to charge because you don’t have money, then you are spending too much.
You can’t find a home for your latest purchase
Your temptation might be electronics or handbags. No matter what you love to buy, you might notice you are running out of room to store things. When the stuff takes over your home and is causing clutter, it is time to take a long hard look at how you spend money.
Your budget never works
There may be months when you don’t have enough money in your budget to cover your mortgage or food. When you continually spend money on the wrong things, your budget will not work.
That means if you have just $50 for entertainment, do not spend $75. That other $25 has to come from another budget line.
You spend more than you earn
Take a look at your credit card balances. You might be paying only the minimum balance because you can’t pay it in full. When you spend more than you make and continue to add more debt, take a look at what you are buying. It might be time to pull back and stay out of the stores.
HOW TO STOP SPENDING SO MUCH MONEY
Use a budgetÂ
When many people hear the word budget, what they hear is “you don’t get to spend any money.” That is the opposite of what a budget does. Your budget is a roadmap. It shows you where your money should go – including the fun money you want to spend!
Your budget helps you know what you need to do with your money when you get paid. Look at every penny as an employee of yours. You get to tell it where it needs to go. Some of them will go to rent, others to your car payment and still others will go to the into your savings account.
The best part of a budget is that you can allow for fun. Learn how to budget to have fun and even how to budget if your paychecks are never the same amount.
Related: How to Figure Out How Much to Budget for Groceries
Write down your financial goals
Successful people start planning by having the end in mind. It may mean taking a backward approach to your finances.
Think about what you want. Do you want to get that credit card paid off or maybe take that dream vacation? No matter your goal, figure out what it will take to get there, and that will help you set your goal.
It may mean fewer dinners out or putting in some overtime at work. Whatever your goal, make sure it is clearly defined and you keep it front and center. Put it on your refrigerator. Keep a photo of it in your wallet. Make sure you see that budget staring you back in the face every time you even think about spending money. That will usually stop you right in your tracks.
Related:Â The Secret Trick I Use to Stick to My Budget
Cash is a Must so that you never overspend
If you are someone who is always saying “I can’t stop spending money,” then you need to use cash. I’m sure you’ve heard it time and time again. Using cash is one of the simplest tricks to help you stop spending money you don’t have.
It works because it gives you defined money. If you have $100 to spend at the grocery store, there is no way you can even spend $101. You don’t have it. You are forced to spend wisely and think more about every purchase you make.
I know some of you are reading this saying “but if I have cash I just spend it so fast.” That is because you are not tracking it and taking responsibility for your spending.
You need to use the cash envelope method.
If you have an envelope for groceries with $50 left in it, sure, you can dip into that and grab $20 to spend on lunch. But, what happens when you need food for your family? That means you’ve just $30 to buy food – which may not get you much.
Cash forces you to think about every purchase you make.
Related:Â How You Can Become Accountable With Your Money
Stop paying for convenience
There is a quick fix for nearly everything. Â You can find dinners in boxes, small pre-packaged snacks, etc. Â Rather than purchase convenience items, buy the larger size snacks and then re-package yourself into smaller baggies. Â You will not only get more out of a box, but you can even control how much you put into each baggie.
There are other ways we pay for convenience. Â We pay for someone to iron our shirts, wash our cars and even mow our lawns. Â By doing these things ourselves, we can keep much more money and easily stop overspending.
Read more:Â How You are Killing Your Grocery Budget
Put away the credit cards to halt spending money
One of the simplest ways to stop spending money is to get out the scissors and cut up those credit cards!! Or, if you aren’t ready to cut them up, put them on ice. Literally. Freeze your credit card in a block of ice.
If you keep spending, you have to cut off the source at its knees. While I don’t think credit cards are a good fit for everyone, I know they work for some.
If you must use credit cards, never charge more than you have in the bank to pay it off. That means you can’t charge the amount you believe you will get on your paycheck. There is never a guarantee that your check will arrive. Spend only the amount you have, not what you will receive.
Related:Â How to Pay off Your Credit Card Debt
Pay your bills on time
We all have bills.  We know when they are due. When you miss the payment due date, you get assessed a late charge.  Pay them on time, so you don’t pay more than you need to.
In addition to late fees, not paying your bills on time can have an adverse effect on your credit score. Learn how to organize your bills, so you never pay them late again.
Do not live above your means
Few of us would not love new clothes or a new car. We all would like to make more money or get the hottest new device. The thing is, can you afford it?  Is it a want or is it a need?
If you are using credit or loans to get items that you can not afford, then you are living beyond your means and spending money you don’t have. Â Scale back and make sure that you can honestly afford the house or the car and that it doesn’t ruin your budget and cost you too much.
Read more: Defining Your Wants vs. Your Needs
Don’t fall for impulse buys
Stores are sneaky about making us spend money. Â They use signs, layout and even scents to lure you into wanting to buy more. Â The thing is, if you purchase something you did not intend to, then you are already blowing your budget and probably overspending.
Another way that you are spending too much is when you plan dinner but then decide at the last minute to go out to dinner instead.  Why do that when you have food waiting for you at home (which you’ve already paid for)?
The final reason you may impulse buy is that of emotion. If you feel a rush because of that new item, you may purchase out of impulse and emotion instead of need.
Read more: Â Stopping Impulse Shopping
Plan your meals
One of the most significant changes we made was to menu plan. It took me some time to put it all together, but now, I can plan our meals in no time at all. I use the simple menu planning system that I’ve taken time to build over the years.
While this works for me, I remember when I was learning how to menu plan. It was quite a process, and I relied upon the help of some experts in the field.  One of them I have used is Erin Chases’s $5 Meal Plan. I loved how simple it was to create our meals each week.
Even the best menu plan won’t work if you aren’t eating what you buy. Make sure you are not making mistakes with your grocery budget and eat what you buy. After all, throwing food away is just money in the trash.
Related:Â Money Saving Secrets Stores Won’t Tell You
Challenge yourself to spend lessÂ
There is something fun about trying to beat yourself at your own game. By this I mean, if you have $150 to spend on groceries for the week, try to spend only $130. That gives you $20 more to spend on something else — or put towards your goal.
Related:Â Â The Yearly Savings Challenge for Kids and Adults
Stay out of the stores so you don’t shop
If you can’t control your spending and continue spending money you don’t have, you have to remove the temptation. Even something that seems harmless can result in spending money.
Related:Â Fun and Frugal Date Night Ideas
Track the money you are spending
Keep track of your spending by adding up the amounts on your phone.  That way, you’ll have no surprises when you get to the checkout lane. You can try Shopping Calculator for Android or Total-Plus Shopping Calculator on iTunes.
When you start to see that total creep up, you realize how much you are spending. That may help you think twice about that extra box of treats you are tempted to toss into the shopping cart.
Use the three-day rule before you spend a dime
The three-day rule is pretty simple. If you see something you want, wait for three days before you buy it. Once the third day is up, ask yourself if you still feel it is something you need.
If it is, look at your budget to ensure it works with this month’s spending. Then, double check the cash to make sure you have enough to pay for it. If both of these work, you can consider buying it.
The funny thing is that most purchases are impulse buys and the three day waiting period helps you realize you don’t need it. And had you purchased it, you may even have buyer’s remorse at the three-day mark.
Related:Â The Trick To Make Sure You Never Overspend
Don’t use coupons and skip the sales
Sales are very tempting. They lure you in and often result in making purchases you would not do otherwise. That is why you nee your list. Stick to it and don’t fall for the sales.
You also need to put away the coupons. Well, you can use them, but responsibly. If you would not purchase an item at full price, you should never buy it only because there is a coupon. A coupon is not a golden ticket to shop.
In addition to this, avoid the clearance aisles and end caps. Â These are money spending traps! Â You walk by, and your eye is drawn the end cap with the big SALE sign in front of it. Â If you don’t need that item, don’t grab it. Â Also, don’t walk by the clearance section. Â It is very easy to pick up items you don’t really need. Â That makes you again spend money you had not planned on.
Instead, shop the sections you need. Â If you need detergent, go to that section and grab your item and then go to the next on your list. Â Don’t wander through the store as you will be more likely to do “cart tossing.” Â This is when you put items in your cart without noticing what you are spending.
I’m not saying not to buy anything on sale. Just get the things you need that are on sale this week, or that you will need in the next weeks. You probably need spaghetti noodles, but you don’t need a new pair of shoes.
Related:Â The Money Traps You Will Fall For
Never shop without a list
Never shop without a grocery list. Ever. Then, force yourself to stick to it.
Some simple ideas include using a timer to limit how long you can be in the store. If you have only 20 minutes to shop, you will be less likely to grab the items you don’t need and stick with those that are on your list.
Another is to challenge yourself to see how fast you can finish your shopping. If you have the list and stick to it, you’ll find you spend less time shopping and more time enjoying the things you love.
The best reason to use a list is that you don’t have to worry about forgetting that “one item” you know you need. When you force yourself to make a shopping list and stick to it, you’ll always have everything you need on hand for dinner.
Keep emotion out of shopping
One tip is never to shop hungry. Â When you do, your stomach controls what you buy. Â The added benefit is buying the healthy foods you need.
If I am feeling bad about myself, buying something I have been wanting may end up making its way home with me. Spending money to make myself feel better never works.
There are many emotions attached to spending.  You have to identify which one(s) apply to you and find a way to fulfill that need through another method – other than spending money.
Define Needs vs. Wants
There are items we need.  You need food, but do you need the extra box of cookies?  Yes, the sweater is really cute but is it something you need or just something you want.  Ask yourself  “is this a need or a want” with each item you buy.  You’ll soon be on your way to less overspending.
Clean and declutter
When you declutter, you find all of those items you’ve spent money on and no longer need. Â It makes you realize where you are spending. Â You will also recall how clean your closet now is. Do you really want to fill it back up with more stuff?
The added benefit of decluttering is that it keeps your house clean and organized! Â You can find what you need more easily and don’t have so much “stuff” cluttering the house.
Save first, spend later
It is important always to pay yourself first. Â Remember that the amount you have to spend is what is left over after you pay your bills and pay yourself.
You should always tell your money where to go instead of it deciding for you. Â So many do that the opposite and save after they spend. Â If you still save a little, you will quickly build a nice emergency fund and can have less guilt about your spending.
Learn from your mistakes
The most important thing you must do is figure out where you’ve gone wrong in the past. Your mistakes will be different from everyone else’s. You may shop out of emotion while someone else does out of boredom.
You also need to keep in mind that you will make mistakes. There will be months when you fall off the wagon. Don’t beat yourself up over it. Use it is a chance to learn from them and do what you can to not repeat them again.
Related:Â Â The Mistakes You Will Make When Getting Out of Debt
Gaining control of your spending is possible. You just need to have the desire – and the tools – to make it happen.
The post How to Stop Spending Money You Don’t Have appeared first on Penny Pinchin' Mom.
Source: pennypinchinmom.com
How Much Credit Card Debt is too Much?
Most Americans have credit card debt and will die with credit card debt. It’s one of the most accessible types of credit there is, becoming available as soon as you’re financially independent. It’s also one of the most damaging, as too much credit card debt could hurt your credit report, reduce your credit score, and cost you thousands of dollars in interest payments.
But how much debt is too much? What is the average total debt for American consumers and households and when do you know if you have crossed a line?
How Much Credit Card Debt is too Much?
The average credit card debt in the United States is around $5,000 to $6,000 per consumer. However, this doesn’t paint a complete picture as these figures don’t differentiate rolling balances. In other words, even if you repay your balance in full every month, that balance will still be recorded as debt until it is repaid.
For many consumers, $6,000 is not “too much”. It’s a manageable sum that they can afford to clear. However, if you’re out of work, relying on government handouts and have no money to your name, that $6,000 can seem like an unscalable mountain. And that’s an important point to note, because everything is relative.
To the average American, unsecured debt of $50,000 is catastrophic. It’s the sort of debt that will cause you to lose sleep, stress every minute of the day, and panic every time your lender sends you a letter. To a multi-millionaire homeowner who runs several successful businesses, it’s nothing, an insignificant debt they could repay in full without a second thought.
One man’s pocket change is another man’s fortune, so we can’t place an actual figure on what constitutes “too much debt”. However, this is something that credit reporting agencies, creditors, and lenders already take into consideration and to get around this issue, they use something known as a debt-to-income ratio.
Your Debt-to-Income Ratio (DTI)
Your DTI can tell you whether you have too much debt, and this is true for credit card debt and all other forms of debt (student loans, car loans, personal loans, and even mortgages).Â
DTI is not used to calculate your credit score and won’t appear on your credit report, but it is used by mortgage lenders and other big lenders to determine your creditworthiness and if you don’t past the test then you won’t get the money.
To calculate your DTI, simply calculate the amount of debt payments that you have and compare this to your gross monthly income. For instance, let’s imagine that you make $400 in credit card payments and $600 in auto loan payments, creating a total debt payment of $1,000. Your gross monthly income is $4,000 and you don’t have any investments.
In this scenario, your DTI would be 25%. as your monthly debt payments ($1,000) are 25% of your monthly income. If you have a $1,000 mortgage payment to make every month, your obligations increase and your DTI hits 50%, which is when you should start being concerned.
Many lenders will not accept you if you have a DTI greater than 50%, because they are not convinced you will make your payments. $2,000 may seem like a lot of money to have leftover at the end of the month, but not when you factor tax, insurance, food, bills, and everyday expenses into the equation.
If your DTI is below 50%, you may be safe, but it all depends on those additional expenses.
How to Tell If You’ve Borrowed Too Much
Your debt-to-income ratio is a good starting point to determine if you have borrowed too much, and if it’s higher than 50%, there’s a good chance you have borrowed more than you should or, at the very least, you are teetering on the edge. However, even if your DTI is above 30%, which many consider the ideal limit, you may have too much credit card debt.
In such cases, you need to look for the following warning signs:
You Can’t Pay More Than the Minimum
Minimum payments cover a substantial amount of interest and only a small amount of the actual principal. If you’re only paying the minimum, you’re barely scratching the surface and it could take years to repay the debt. If you genuinely don’t have the extra funds to pay more money, then you definitely have a debt problem.
Your Credit Card Balance Keeps Growing
The only thing worse than not being able to pay more than the balance is being forced to keep using that card, in which case the balance will keep growing and the interest charges will keep accumulating. This is a dire situation to be in and means you have far too much credit card debt.
Your Debt is Increasing as Your Take-Home Pay is Reducing
If your credit card bill seems to be going in the opposite direction as your paycheck, you could have a serious problem on your hands. You may be forced to take payday loans; in which case you’ll be stuck repaying these on top of your mounting credit card interest, reaching a point when your debt eventually exceeds your disposable income.
You Don’t Have Savings or an Emergency Fund
A savings account or emergency fund is your safety net. If you reach a point where you feel like you can no longer meet the monthly payments, you can tap into these accounts and use the funds to bail you out. If you don’t have that option, things are looking decidedly bleaker for you.
Dangers of Having Too Much Credit Card Debt
The biggest issue with excessive credit card debt is that it has a habit of sticking around for years. Many debtors only make the minimum monthly payment, either because they can’t look at the bigger picture or simply can’t afford to pay more.Â
When this happens, a $1,000 debt could cost them over $2,000 to repay, which means they’ll have less money to their name. What’s more, that credit card debt could impact their credit score, thus reducing their chances of getting low-interest credit and of acquiring mortgages and auto loans.
It’s a cycle. You use a credit card to make big purchases and are hit with a high-interest rate. That interest takes your disposable income away, thus making it more likely you will need to use the card again for other big purchases.Â
All the while, your credit utilization ratio (calculated by comparing available credit to total debt and used to calculate 30% of your credit score) is plummeting and your hopes of getting a lower interest rate diminish.
What to do if you Have too Much Credit Card Debt?
If you find yourself ticking off the boxes above and you have a sinking feeling as you realize that everything we’re describing perfectly represents your situation, then fear not, as there are a multitude of ways you can dig yourself out of this hole:
Seek Counseling
Credit counselors can help to find flaws in your budget and your planning and provide some much-needed insight into your situation. They are personal finance experts and have dealt with countless consumer debt issues over the years, so donât assume they can only tell you what you already know and always look to credit counseling as a first step.
Avoid Fees
Credit card companies charge a higher annual percentage rate to consumers with poor credit scores as they are more likely to default, which means they need those extra funds to balance their accounts. Another way they do this is to charge penalty fees, penalty rates, and cash advance fees, the latter of which can be very damaging to an individual struggling with credit card debt.
Cash advance fees are charged every time you withdraw money from an ATM, and the rate is often fixed at 3% with a minimum charge of $10. This means that if you withdraw as little as $20, it’ll cost you $10 in charges, as well as additional interest fees.
If the cash flow isn’t there, this can seem like a good option, but it will only make your situation worse and should be avoided at all costs.
Use Debt Relief
Debt management, debt settlement, and debt consolidation can all help you to escape debt, creating a repayment plan and clearing everything from credit card debt to student loan debt in one fell swoop. You don’t even need an excellent credit score to do this, as many debt management and debt consolidation companies are aimed towards bad credit borrowers.
Balance Transfers
A balance transfer credit card moves all of your current credit card balances onto a new card, one with a large credit limit and a 0% introductory APR that allows you to swerve interest charges for the first 6, 12, 15 or 18 months. It’s one of the best options available, assuming you have a credit score high enough to get the limit you need.
Monitor Your Situation
Whatever method you choose, it’s important to keep a close eye on your finances to ensure this never happens again. You should never be hit with an unexpected car payment or mortgage payment, because you know those payments arrive every single month; you should never be surprised that you have interest to pay or that your credit score has taken a hit because of a new account or application.Â
If you paid attention to your financial situation, you wouldn’t be surprised, you would understand where every penny goes, and as a result, you will be better equipped to deal with issues in the future.
How Much Credit Card Debt is too Much? is a post from Pocket Your Dollars.
Source: pocketyourdollars.com
States Where Residents Most Rely on Credit â 2020 Edition
Perhaps counterintuitively, consumer credit card debt has fallen since the beginning of the COVID-19 crisis. Federal reserve data shows that the total amount of revolving consumer credit, which primarily consists of credit cards charges, fell below one trillion in April 2020 for the first time in close to two years. Data from Experian tells a similar story. Between the end of Q2 2019 and Q2 2020, the average credit card balance of borrowers fell by about 11% from $6,629 to $5,897.
Though average credit card debt is decreasing nationally, it remains high in some states and may increase during the holiday season. In this study, SmartAsset looked at states where residents tend to rely on credit the most. Using data from Experian and the Census Bureau, we ranked all 50 states and the District of Columbia based on five metrics relating to credit card debt. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.
This is the 2020 edition of our study on where residents most rely on credit. Read the 2019 version here.
Key Findings
- Credit card debt is high in Southern states. Seven of the 10 states where residents rely most on credit are in the South: Oklahoma, Louisiana, Texas, South Carolina, Alabama, Georgia and Florida. In all seven states, average credit card debt exceeds $5,600 and makes up more than 10% of the median household income.
- 13 states saw one-year increases in average credit card debt. Though Experian data shows that national average credit card debt fell by 11.04% over the past year, certain states still saw increases. Average credit card debt increased by more than 3% in two states â Idaho and North Dakota â and rose by 1% or more in six additional states â Oklahoma, Hawaii, Mississippi, West Virginia, South Dakota and Iowa.
1. Oklahoma
Oklahoma ranks as the state where residents most rely on credit. Experian data shows that though average credit card debt fell in many places between the end of the second quarter in 2019 and 2020, it rose by 2.00% in Oklahoma, from about $5,800 to almost $6,000. With that rise, we estimate average credit card debt for Oklahoma residents makes up 10.96% of the median household income â the fourth-highest percentage for this metric in our study.
2. Louisiana
Though average credit card debt in Louisiana ranks toward the middle of the study at 24th, it makes up the second-highest percentage of median household income, at 11.25%. Additionally, credit card debt may build up in Louisiana, as the state has relatively high poverty and unemployment rates. Data from the Census and Bureau of Labor Statistics shows that Louisiana also has the second-highest poverty rate (14.3%) and 15th-highest September 2020 unemployment rate overall (8.1%).
3. Alaska (tie)
Average credit card debt in Alaska fell by close to 5% over the past year, but it is still the highest in our study, at close to $7,700. Additionally, Alaska ranks in the worst half of the study for two other metrics, average credit card debt as a percentage of income and September 2020 unemployment rate. Average credit card debt makes up 10.15% of the median household income (the 10th-worst rate for this metric overall). In September of this year, unemployment stood at 7.2% (the 23rd-worst in the study).
3. Nevada (tie)
Nevada ranks in the bottom half of the study for all five metrics we considered. It has the 11th-highest average credit card debt, the 22nd-worst one-year change in average credit card debt and the 17th-highest average credit card debt as a percentage of median household income. Census Bureau data from 2019 shows that Nevada has the 20th-worst poverty rate of all 50 states and the District of Columbia, at 8.7%. Moreover, in September 2020, the unemployment rate (12.6%) was the second-highest in the country, behind only that of Hawaii.
3. Texas (tie)
Texas ties with Alaska and Nevada as the No. 3 state in the country where residents rely most on credit. Though average credit card debt in Texas fell by almost 5% over the past year, it remains elevated compared to other states. Experian data shows that at the end of the second quarter in 2020, average credit card debt was $6,423 â the seventh-highest of any state. Additionally, Texasâ poverty rate is the ninth-highest in the study, at 10.5%.
6. New Mexico
Credit card debt in New Mexico is high relative to average incomes. We found that average credit card debt as a percentage of the median household income was third-highest in our study, at 10.98%. New Mexico residents may also struggle with credit card debt more, as unemployment and poverty rates are high. In 2019, the unemployment rate was 9.4% (eighth-highest in the study) and in September 2020, the poverty rate was 13.7% (the third-worst in the country).
7. South Carolina
South Carolina actually has the lowest September 2020 unemployment rate (5.1%) of any of the 10 states where residents most rely on credit. However, the state ranks relatively poorly on the other four metrics we considered. It has the 18th-highest average credit card debt, 14th-worst one-year change in average credit card debt, eighth-highest average credit card debt as a percentage of income and 11th-highest poverty rate.
8. Alabama
Using Experian and Census Bureau data, we found that average credit card debt for Alabama residents makes up almost 11% of the stateâs median household income. Additionally, Alabama has the sixth-highest 2019 poverty rate (11.2%) of all 50 states and the District of Columbia.
9. Georgia
At the end of the second quarter of 2020, average credit card debt in Georgia stood at roughly $6,200. This debt may affect residents more in Georgia, as debt makes up more than 10% of the median household income in the state. In addition, almost 10% of individuals fall below the federal poverty line.
10. Florida
Florida has the 12th-highest average credit card debt (about $6,100) and ninth-highest average credit card debt as a percentage of median household income (10.31%). In September 2020, the unemployment rate in Florida was the 20th highest in the country, at 7.6%.
Data and Methodology
To determine the states where residents rely most on credit, we compared all 50 states and the District of Columbia across five metrics:
- Average credit card debt. Data comes from Experian and is for Q2 2020.
- One-year change in average credit card debt. Data comes from Experian and is from Q2 2019 to Q2 2020.
- Average credit card debt as a percentage of median household income. This is the average credit card debt (per borrower with credit card debt) divided by median household income. Data for average credit card debt comes from Experian and data on median household income comes from the Census Bureauâs 2019 1-year American Community Survey.
- September 2020 unemployment rate. Data comes from the Bureau of Labor Statistics.
- Poverty rate. This is the percentage of the population below the federal poverty level. Data comes from the Census Bureauâs 2019 1-year American Community Survey.
First, we ranked each state in every metric, giving a double weight to both of the average credit card debt metrics, a single weight to the change in average credit card debt metric and a half weight to September 2020 unemployment rate and poverty rate. We then found each stateâs average ranking and used the average to determine a final score. The state with the best average ranking received a score of 100. The state with the lowest average ranking received a score of 0.
Tips for Managing Credit Card Debt During the COVID-19 Downturn
- Contact your credit card company. Many credit card companies are offering financial relief to their customers during the COVID-19 pandemic. The Consumer Financial Protection Bureau recommends that the best first steps in receiving relief are contacting your credit card company, telling them youâve been affected and asking questions about the relief packages they offer.
- Create a plan to pay it off. Credit card debt can be incredibly stressful, especially during a recession when jobs are less secure and employment opportunities are more limited. Our credit card calculator is here to help. By adding your credit card details, you can calculate the total interest and time it will take you to pay off your debt.
- Consider a financial advisor. A financial advisor can help you make smarter financial decisions to be in better control of your money and get previous debt under control. Finding the right financial advisor doesnât have to be hard. SmartAssetâs free tool matches you with financial advisors in your area in five minutes. If youâre ready to be matched with local advisors that will help you achieve your financial goals, get started now.
Questions about our study? Contact us at press@smartasset.com.
Photo credit: ©iStock.com/bernie_photo
The post States Where Residents Most Rely on Credit â 2020 Edition appeared first on SmartAsset Blog.
Source: smartasset.com
Tom Brady and Gisele Bundchen Finally Sell Their Massachusetts Mansion
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NFL great Tom Brady has finally offloaded his Massachusetts mansion. The quarterback and his wife, supermodel Gisele Bündchen, have sold their luxe Brookline estate, according to the Boston Globe.
The transaction appears to have been an off-market deal, with no price information disclosed for the transaction. Sources told the Globe that the property was offered for $32.5 million.
The custom-built,12,000-square-foot estate outside of Boston initially debuted at $39.5 million in 2019, then quickly dropped to $33.9 million.
The mansion built in 2015 came off the market in May, when luxury home sales were stalled by the coronavirus pandemic. But a buyer surfaced at the end of 2020.
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Brookline abode
In 2013, the couple picked up a prime 5-acre plot from the local cash-strapped Pine Manor College for $4.5 million.
They tapped architect Richard Landry, of Landry Design Group, to create their East Coast estate. Landry has also worked on the couple’s Los Angeles mansion, which was featured in Architectural Digest.
Landry’s design sits adjacent to the ninth hole of the Country Club in Brookline, with serene views and plenty of privacy.
The five-bedroom main house features a dining room, living room, home office, chef’s eat-in kitchen, and family room. A grand stairwell leads to the bedrooms on the second floor.
The lower level includes a rec room, playroom, wine room, gym, and spa.
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Watch: QB Drew Brees Looks to Unload His Amazing Kauai Condo
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The sprawling grounds include gardens, a pool, and a âbarn-inspiredâ guesthouse with a yoga studio, full bathroom, and sleeping loft. The property comes with a three-car garage, carport, and circular drive with ample parking.
Brady’s mansion sits just down the road from Reebok founder Paul Fireman‘s lavish property, which was finally sold in 2020 after four years on the market. That 27,000-square-foot mansion had been priced at as much as $90 million, before finally selling for $23 million. George and Manny Sarkis of Douglas Elliman represented Fireman.
The agents also sold Fireman’s adjacent 7 acres for $18 million to developer C. Stumpo Development, which plans to build luxury homes on the land.
âAfter closing on both 150 Woodland Road [the Fireman home] and the five adjacent lots, we are very excited about the current and future Brookline market,” says Manny. “Buyers continue to trend to the suburbs, seeking more land and bigger homes.”
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Manhattan move
The jet-setting duo received another Christmas gift of good news in 2020, with a reported sale of their Tribeca loft. The two had made the penthouse available for just under $40 million last November. If they got their asking price, they’ll stroll away with a large profit.
The couple had picked up the place in 2018 for $25.46 million. The five-bedroom, 5.5-bath unit features a 1,900-square-foot terrace and Hudson River views. Building amenities include an 82-foot lap pool and a private drive-in entrance.
The couple still own a lower-floor unit in the same 14-floor building.
New year, new homes
Brady left Brookline after he signed with the Buccaneers. The QB has since put roots down in South Florida. In October, Brady and Bundchen were reportedly circling a waterfront property in Clearwater.
And then Brady made a move on Florida’s other coast in December, with a reported $17 million purchase of a home on Miamiâs Indian Creek Island, known as the Billionaires Bunker.
The couple plan to raze the current house on the land in Miami and build anew. They’re reportedly looking to emulate the L.A. home they sold to Dr. Dre for $40 million in 2014. Sounds like the services of their favorite architect may once again be required.
The post Tom Brady and Gisele Bundchen Finally Sell Their Massachusetts Mansion appeared first on Real Estate News & Insights | realtor.com®.
Source: realtor.com
How to Use the 5 Apology Languages
We continue to live in unprecedented times—there's no playbook. We’re living and working differently than ever before, and we’re breaking some eggs as we go.
Whether it’s making a Zoom faux pas, accidentally bringing a political view into the workplace, or missing a deadline because you were distracted by homeschooling your kids during your workday, there's a whole lot of “I’m sorry” happening around us.
But the thing about apologies is that if they’re not done right, they can backfire. An “I’m sorry” that feels disingenuous or patronizing may leave the other person feeling resentful, mistrustful, or uninterested in working with you again.
So next time the moment arises—because it will—how can you deliver an apology that feels genuine?
What are the five apology languages?
For their book, When Sorry Isn't Enough, Gary Chapman and Jennifer Thomas researched the many ways in which we apologize. They discovered the five apology languages that are effective when it's time to step up and own a mistake.
So let’s talk about each and how you can make them work for you.
Apology Language #1: Express regret
When you realize you’ve done a thing that you just feel bad about, and "I feel bad about this" is the gist of what you want to say, this is the apology language you need.
Something as simple as “I’m sorry X happened” can achieve your goal.
When might you need this one? Imagine you’re hosting a Zoom call. One of your colleagues asks a question, and you dismiss it flippantly and move on.
Not unforgivable. But upon reflection, you feel bad that their question got passed over. Give them a call and put Language Number One to work. Offer a simple apology:
I realize you asked an important question during our call, and I’m sorry it didn’t receive the attention it deserved.
Be specific about what you’re sorry for, and then end your sentence. No "I'm sorry, but …". When you qualify your apology with a "but," you effectively cancel out the apology.
Apology Language #2: Accept responsibility
This second language may be seen as an extension of the first.
Let’s hang with the same situation. A Zoom meeting, a question posed, you moved on.
And now, upon further reflection, you realize that you not only regret what happened, but that you had a particular responsibility in it. You were running that meeting, and you had the power to pause and address your colleague’s question. You chose to plow ahead.
So, maybe take some responsibility. What might that one sound like?
I realize you asked an important question during our call, and it didn’t receive the attention it deserved. I should have paused the conversation to acknowledge your question. I'm sorry I didn't do that.
When the offense feels small—and that’s a subjective judgment—often, taking responsibility will be enough as long as that ownership is genuine.
Avoid shifting the weight of the offense back onto the other person by saying some version of, "I'm sorry you felt that way." That's deflection. And it's just not cool.
Apology Language #3: Make restitution
The third apology language is the one that pushes you from feeling regretful and responsible to knowing you need to make things right.
Let’s imagine a different scenario. A friend reaches out to let you know she’s applied for a job in your company. She has an interview scheduled and she’s asked if you’d be willing to put in a good word for her with the hiring leader. You know her work, and you say, “I’d be delighted to do that!”
She calls you again next week to say she’s just had her interview and it went … OK. When she asks if you managed to put in that good word, you realize you totally dropped the ball.
You know you owe her an apology. But that may not feel like enough. The stakes are high and you want to make things right.
This is your moment to show off your Apology Language #3 skills. You might say:
I am so sorry. I promised I would do that and I dropped the ball. I know how important this opportunity is for you. I’m going to speak to the hiring leader this afternoon—you have my word.
Putting in your recommendation for your friend after the interview has already happened may not be exactly the thing you promised. But if it leaves both you and your friend satisfied that all is right with the world, then you’ve made your apology work.
Apology Language #4: Genuine repentance
This brand of apology is about not only being sorry but taking accountability for preventing the same mistake from happening in the future. It’s about taking ownership and committing to behavior change.
In this case, let’s imagine you lead a customer service team for your company. A customer had a not-so-hot experience with one of your representatives and sent a complaint email to a customer service inbox. An inbox you’re supposed to check daily, but boy have you been busy!
A couple of days later, that same customer, having heard nothing from you, tweets something ugly about their experience with your company. And your boss is fuming.
You dropped the ball. You need to own it. But more importantly, you need to leave your boss feeling confident that this will never happen again.
Your apology might sound something like this.
I am so sorry this happened. I got overwhelmed and didn’t make time to check that inbox. But that’s no excuse—I could have asked for help. I take responsibility for this customer’s experience. And starting today I’ve put a twice-daily reminder on my calendar to check that inbox. And if I’m too busy to do it, I’ll ask someone on my team to check. This way, every customer concern or complaint will be seen in hours, not days.
I don’t know about you, but I’d feel pretty good hearing that apology. You’ve owned it and you’ve convinced me that you broke just one egg and it won’t become a dozen.
Apology Language #5: Request forgiveness
You’ve said what you came to say. The wounded party has given you the gift of their attention.
But now there’s something more you need from them—forgiveness. This part requires a level of vulnerability that can be hard to access because your request for forgiveness doesn’t require the other person's gift of it.
They may say no. They may need to think about it. They may say “We’ll see how things go over time.”
For some people, an apology won’t feel genuine until you’ve asked their forgiveness. So you may need to go out on a limb and ask, even knowing you may not receive it.
Don't apologize when there's nothing to apologize for
Before I close the conversation on the five apology languages, I’d like to add my own note of caution. Apologies are important when they’re warranted—when you’ve done something wrong or let someone down.
But for many people—and more commonly for women than men—apologizing is something we do too often in moments that don’t warrant an “I’m sorry.”
Here are a few examples:
- I'm sorry, but I have a question.
- I'm sorry; I have a full plate and I can't take on that extra project.
- I'm so sorry, but I have to pick up my kid so that 6 p.m. meeting is too late for me.
Please don't apologize for situations like these. Instead, say:
- I have a question.
- I have a full plate and can't take on that extra project.
- That 6 p.m. meeting is too late for me.
You have the right to ask questions and set boundaries. I will never stop reminding you of that. Sorry, not sorry.
Source: quickanddirtytips.com
6 Tips for Successfully Managing a Checking Account in College
Heading off to college is exciting. Really exciting. You finally have freedom! You’re out on your own for the very first time, managing your studies, managing your social life and… managing your finances.
Despite being a big part of your newfound independence, personal finance is a subject you probably won’t find on your course schedule. If you didn’t take a personal finance class in high school and never had money lessons from your parents, you may not know how to manage a checking account as a college student.
“College students have very different needs for their checking account than their parents or other adults,” says Tommy Martin, CEO of Clear Path Financial Planning and a finance blogger at TommyMartin.com. If you live in a different city during the school year than you do during winter and summer breaks, for example, you may be after a bank for which location doesn’t matter.
Ok, so how do I manage my checking account in college, you ask? First, don’t get overwhelmed. Learning how to manage money while in college and getting a handle on checking account basics is simpler than you might think (oh, and the skills will serve you for years to come). Second, you can kick off your checking account education with these tips for managing a checking account in college:
1. Compare checking accounts before signing up
While your college life may center around your school campus, you should consider venturing off-campus to pick the right checking account for your lifestyle.
“Students typically sign up with a bank that’s on campus or close to campus,” says Sahil Vakil, a financial planner and president of MYRA Wealth in New Jersey. However, the nearest bank might not be the one that best fits your needs, he adds.
Instead of picking a bank based solely on proximity, consider all of your options, including banks with off-campus locations and online-only banks.
Martin agrees, saying that learning how to manage money while in college means considering all of your banking options rather than “automatically enrolling or choosing the official school bank just because it has the school logo on it.” There are other ways to show your school pride, after all.
2. Learn about checking account fees and rewards
Vakil and Martin both say a tip for managing a checking account in college is to consider an account’s fees before signing up. Costly fees can eat into your savings and spending money, which can be a blow for students who are not working full-time. When you are choosing a checking account in college, consider fees for:
- Monthly maintenance (essentially keeping your account open)
- Minimum balance (not maintaining one)
- ATM usage
- New checks
- Wire transfers
- Online bill pay
- Replacement debit cards
Martin says a checking account with no minimum balance requirement or minimum number of transactions could be a good fit for students. “It allows them to focus on their education” instead of worrying about incurring penalties, he says. “Even a $5 fee on a checking account with $60 in it can be devastating.”
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Costly fees can eat into your savings and spending money, which can be a blow for students who are not working full-time.
Martin also suggests finding an account that has a large network of no-fee ATMs located across the country to better manage your checking account as a college student. “Especially if you’re going to a school in a different state, the local bank from home might wind up costing you a lot in terms of ATM fees,” he says. If your parents plan to wire you money, find an account that doesn’t charge incoming wire fees, Martin adds.
While fees should be a focus when you are learning how to manage money while in college, don’t forget about incentives. You may be able to find a checking account that actually helps you grow your balance by paying interest or offering a cash back rewards program.
“If you have to pay for books or supplies, at least you can get some cash back and use it for a free dinner,” Martin says. Discover Cashback Debit, for example, offers 1% cash back on up to $3,000 in debit card purchases each month.1
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3. Track your checking account balance
Luckily, you don’t need to take Banking 101 to figure out your funds, and tech makes tracking your balance and account activity easier than ever. Most banks let you log in to your account online (don’t get distracted in class!), and with a bank’s mobile app you can transfer money to friends, pay bills, deposit checks and check your balanceâall while you’re on the go.
Knowing your balance at all times is a tip for managing a checking account in college because it can help you avoid overdrafts and insufficient funds fees. It can also help you forecast your income and expenses to ensure you’ll have enough money to cover future costs. Surpriseâthat’s budgeting!
There’s no one-size-fits-all budgeting program or system, though. You can go old-school and track your budget on a printed-out budget sheet, or you can go tech-savvy with a budgeting and spending app. “What’s best for you is the one you’re actually going to use,” Martin says.
If you learn how to manage money while in college and make a practice of maintaining your budget, the habit will follow you after graduation.
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âCollege students have very different needs for their checking account than their parents or other adults.â
4. Secure your account
One of Vakil’s tips for managing a checking account in college is to make sure your account stays secure. Create a unique account name and password that you use only for your checking account, and never share your credentials.
Vakil says you can also enable two-factor authentication if your bank offers it and you’re looking for another way to improve the management of your checking account as a college student. “This additional layer of protection safeguards your sensitive financial data and strengthens the security of your account by requiring two methods of verifying your identity.”
For example, if you log in to your account from a new device, you may be sent a text message with a code that you’ll need to enter to access your account.
5. Keep an eye out for debit card holds
No matter where you bank, a merchant may place a hold on funds in your checking account when you use your debit card. Generally, a hold is placed for travel-related purchasesâsuch as at rental car companies, hotels and gas stationsâand used by merchants to protect against fraud and errors.
“Holds on a debit card can make it tricky for you to manage your finances,” Vakil says. For example, “when you rent a car, the car rental company might put a $500 hold on your account. If the balance in your account was $550, now you can only use another $50.”
Being aware of holds can be particularly important if you are managing a checking account as a college student and tend to have a low account balance.
If a merchant will be placing a hold, it will generally post a sign to notify customers. The hold will typically be removed after the funds are transferred to the merchant from your financial institution, typically within three to four days.
Knowing when a hold will be placed, the amount of the hold and how much money you have in your checking account can help you manage your checking account as a college student by avoiding overdrafts and missed bill payments due to insufficient funds.
6. Don’t let one mistake throw you off track
If you can learn how to manage a checking account as a college student, and more generally, how to manage money while in college, you can lay the groundwork for a solid financial future. Checking account mistakes may occasionally happen (oops, I didn’t budget enough for that spring break trip), but don’t let them discourage you to the point of apathy. Instead, try to continually expand your knowledge and practice healthy financial habits.
1 ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal
, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.
The post 6 Tips for Successfully Managing a Checking Account in College appeared first on Discover Bank – Banking Topics Blog.
Source: discover.com
5 Myths About Transitioning From Renter to Homeowner
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Making the leap from being a renter to becoming a homeowner is a process that includes taking stock of your financial situation and determining whether you’re ready for such a massive responsibility. For most people, the primary question is affordability. Do you have enough cash in the bank to fund a down payment, or do you have a credit score high enough to qualify you for a home loan? But there are other considerations, tooâand plenty of misconceptions and myths that could keep you from making that first step.
Below, our experts weigh in on why some situations that may seem like roadblocks are actually not as daunting as they appear.
1. Buying a home means heavy debt
Some may argue that continuing to rent can spare you from taking on heavy debt. But owning a house offers advantages.
âBuying a home and using a typical loan would be spread out over 20 to 30 years. But if you can make one extra payment a year or make bimonthly payments instead, you can shed up to seven years from that long-term loan,â says Jesse McManus, a real estate agent for Big Block Realty in San Diego, CA.
Plus, as you pay your mortgage, you gain equity in the home and create an asset that can be used when needed, such as paying off debt or even buying a second home.
âCurrently, mortgage interests rates are at their lowest point in history, so … it’s a great time to borrow money,â McManus says.
2. At least a 20% down payment is needed to buy a home
âContrary to popular belief, a 20% down payment is not required to purchase a home,” says Natalie Klinefelter, broker/owner of the Legacy Real Estate Co. in San Diego, CA. “There are several low down payment options available to all types of buyers.â
These are as low as 0% down for Veterans Affairs loans to 5% for conventional loans.
One of the main reasons buyers assume they must put down 20% is that without a 20% down payment, buyers typically face private mortgage insurance payments that add to the monthly loan payment.
âThe good news is once 20% equity is reached in a home, the buyer can eliminate PMI. This is usually accomplished by refinancing their loan, ultimately lowering their original payment that included PMI,â says Klinefelter. âSelecting the right loan type for a buyerâs needs and the property condition is essential before purchasing a home.â
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Watch: 5 Things First-Time Home Buyers Must Know
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3. Your credit score needs to be perfect
Having a credit score at or above 660 looks great to mortgage lenders, but if yours is lagging, thereâs still hope.
âCredit score and history play a significant role in a buyerâs ability to obtain a home loan, but it doesn’t mean a buyer needs squeaky-clean credit. There are many loan solutions for buyers who have a lower than the ideal credit score,â says Klinefelter.
She says government-backed loans insured by the Federal Housing Administration have lower credit and income requirements than most conventional loans.
âA lower down payment is also a benefit of FHA loans. Lenders often work with home buyers upfront to discuss how to improve their credit to obtain a loan most suitable for their needs and financial situation,â says Klinefelter.
McManus says buyers building credit can also use a home loan to bolster their scores and create a foundation for future borrowing and creditworthiness.
4. Now is a bad time to buy
Buying a home at the right timeâduring a buyer’s market or when interest rates are lowâis considered a smart money move. But don’t let the fear of buying at the “wrong time” stop you from moving forward. If you feel like you’ve found a good deal, experts say there is truly no bad time to buy a home.
âThe famous saying in real estate is ‘I donât have a crystal ball,’ meaning no one can predict exactly where the market will be at a given time. If a buyer stays within their means and has a financial contingency plan in place if the market adjusts over time, it is the right time to buy,â says Klinefelter.
5. Youâll be stuck and canât relocate
Some people may be hesitant to buy because it means staying put in the same location.
âI always advise my clients that they should plan to stay in a newly purchased home for a minimum of three years,” says McManus. “You can ride out most market swings if they happen, and it also gives you a sense of connection to your new space.”
In a healthy market, McManus says homeowners will likely be able to sell the home within a year or two if they need to move, or they can consider renting out the property.
âThere is always a way out of a real estate asset; knowing how and when to exit is the key,â says Klinefelter.
The post 5 Myths About Transitioning From Renter to Homeowner appeared first on Real Estate News & Insights | realtor.com®.
Source: realtor.com
How to File for Pandemic Unemployment Assistance in Every State
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Source: thepennyhoarder.com
Average credit card interest rates: Week of January 13, 2021
The average credit card interest rate is 16.05%.
The average minimum credit card APR held firm Wednesday after lenders declined to revise rates on new offers for another week. As a result, borrowers in the market for a new card continued to enjoy starting APRs that are more than a full point lower on average than they were a year ago.
Cardholders with excellent credit are enjoying some of the sharpest rate savings this year. For example, lenders have clipped APRs on some of the most popular rewards cards by at least a point and a half in the past year. For example, the Discover it® Cash Back card currently starts APRs at 11.99%, which is well below the minimum APR most low rates advertise. A year ago, by contrast, it advertised a minimum APR of 13.49%.
Some of the most striking rate decreases have occurred on travel cards, which had surged to record high rates in 2019. For example:
- In January 2020, the Chase Sapphire Reserve charged an 18.49% minimum APR. Today, it starts APRs at 16.99%.
- Similarly, APRs on the Citi Premier® Card currently start at 15.99%. A year ago, the lowest APR cardholders could get was 17.49%.
- The lowest rate Hilton enthusiasts could get on the Hilton Honors American Express Card last winter was 17.24%. Today, the cardâs APR starts at 15.74%
As a result, the average rewards card APR has tumbled from 17.11% in the second week of 2020 to 15.76% today, while the average airline card APR has fallen from 16.9% to 15.53%.
As the end to the coronavirus pandemic edges closer, lower rate travel cards could become more attractive to cardholders who are dreaming of a post-pandemic vacation.
Even low interest and balance transfer cards are much less expensive nowadays, giving cardholders who need to carry a balance a temporary reprieve.
Last January, for example, the U.S. Bank Visa Platinum Card and Citi Simplicity® Card both charged a 15.49% APR. Now, borrowers could secure an APR as low as 13.99% on the U.S. Bank Visa Platinum and as low as 14.74% on the City Simplicity. Meanwhile, Bank of America has reintroduced the BankAmericard® credit card after a temporary pause with a minimum APR of 12.99%. A year ago, the best APR cardholders could get was 14.49%.
Most cards received their biggest rate cuts in March and April when the Federal Reserve cut its benchmark interest rate, the federal funds rate, by 1.25 percentage points. When federal interest rates change, most lenders also match the changes on new card offers that are tied to the U.S. Prime Rate.
However, a few lenders have cut rates on select cards by an even larger amount. For example, Wells Fargo cut the APR on the Wells Fargo Rewards® card by five and a half percentage points last year, making it one of the lowest rate cards Wells Fargo offers. Cardholders who qualify could get a rewards card APR as low as 12.49%.
Todayâs lower rates wonât last forever, though, since most are due to federal interest rate changes, rather than independent rate strategies.
As soon as the Federal Reserve begins increasing rates, the APRs on all variable rate cards tied to the prime rate will also go up.
It will be a long time, though, before cardholders in good standing will have to worry about higher rates on cards theyâve already opened. The Fed has said it is unlikely to hike rates for at least another year.
See related:Â How do credit card APRs work?
All information about the U.S. Bank Visa Platinum Card and Citi Simplicity Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. These cards are no longer available through CreditCards.com.
CreditCards.com’s Weekly Rate Report
| Avg. APR | Last week | 6 months ago | |
| National average | 16.05% | 16.05% | 16.03% |
| Low interest | 12.77% | 12.77% | 12.83% |
| Cash back | 15.85% | 15.85% | 16.09% |
| Balance transfer | 13.85% | 13.85% | 13.93% |
| Business | 13.91% | 13.91% | 13.91% |
| Student | 16.12% | 16.12% | 16.12% |
| Airline | 15.53% | 15.53% | 15.48% |
| Rewards | 15.76% | 15.76% | 15.82% |
| Instant approval | 18.38% | 18.38% | 18.65% |
| Bad credit | 25.30% | 25.30% | 24.43% |
| Methodology: The national average credit card APR is comprised of 100 of the most popular credit cards in the country, including cards from dozens of leading U.S. issuers and representing every card category listed above. (Introductory, or teaser, rates are not included in the calculation.) | |||
| Source: CreditCards.com | |||
| Updated: January 13, 2021 | |||
Historic interest rates by card type
Some credit cards charge even higher rates, on average. The type of rate you get will depend in part on the category of credit card you own. For example, even the best travel credit cards often charge higher rates than basic, low interest credit cards.
CreditCards.com has been calculating average rates for a wide variety of credit card categories, including student cards, balance transfer cards, cash back cards and more, since 2007.
How to get a low credit card interest rate
Your odds of getting approved for a cardâs lowest rate will increase the more you improve your credit score. Some factors that influence your credit card APR will be out of your control, such as the length of time youâve been handling credit.
However, even if youâre new to credit or are rebuilding your score, there are steps you can take to ensure a lower APR. For example:
- Pay your bills on time. The single most important factor influencing your credit score â and your ability to win a lower rate â is your track record of making on-time payments. Lenders are more likely to trust you with a competitive APR â and other positive terms, such as a big credit limit â if you have a lengthy history of paying your bills on time.
- Keep your balances low. Lenders also want to see that you are responsible with your credit and donât overcharge. As a result, credit scores take into account the amount of credit youâre using, compared to how much credit youâve been given. This is known as your credit utilization ratio. Typically, the lower your ratio, the better. For example, personal finance experts often recommend that you keep your balances well below 30% of your total credit limit.
- Build a lengthy and diverse credit history. Lenders also like to see that youâve been successfully using credit for a long time and have experience with different types of credit, including revolving credit and installment loans. As a result, credit scores, such as the FICO score and VantageScore, factor in the average length of your credit history and the types of loans youâve handled (which is known as your credit mix). To keep your credit history as long as possible, continue to use your oldest credit card so your lender doesnât close it.
- Call your lender. If youâve successfully owned a credit card for a long time, you may be able to convince your lender to lower your interest rate â especially if you have excellent credit. Reach out to your lender and ask if theyâd be willing to negotiate a lower APR.
- Monitor your credit report. Check your credit reports regularly to make sure youâre being accurately scored. The last thing you want is for a mistake or unauthorized account to drag down your credit score. You have the right to check your credit reports from each major credit bureau (Equifax, Experian and TransUnion) once per year for free through AnnualCreditReport.com.
Source: creditcards.com
Chipotle to Hold Nationwide Hiring Event to Fill 15K New Jobs
Chipotle is kicking off the new year with a nationwide hiring blitz.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Source: thepennyhoarder.com
To make headway on those recruitment efforts, all Chipotle locations are holding a âCoast to Coastâ career event Jan. 14. On-site interviews are taking place from 8 a.m. to 10 a.m. and 2 p.m. to 5 p.m. local time.
According to job listings on the companyâs career board, the main crew-member requirement is that you must be at least 16 years old to apply. All training is provided.
To participate in the hiring event, you must fill out a brief application and select an available interview time slot at your local Chipotle. Do not show up without requesting an interview.
To entice new workers, the burrito chain has been experimenting with new perks and benefits available to all employees, part- and full-time:
Job Openings at Chipotle
If Chipotle meets its hiring goals, the companyâs workforce is set to exceed 100,000.
Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his âlatest articles here, or say hi on Twitter @hardyjournalism.
Compared to the overall restaurant industry, Chipotle has fared well throughout the pandemic. The company hired 10,000 new workers in July as it added new locations and built drive-thru windows at many existing locations. In November, Chipotle unveiled its first ever âdigitalâ restaurant in New York to experiment with only providing drive-thru and pick-up orders.
With hundreds of new restaurants in the works, the fast-casual Mexican food chain plans to fill 15,000 new openings, according to the hiring announcement.
- Medical, dental and vision insurance.
- 401(k) retirement plan after one year of employment.
- One free meal per shift.
- 100% tuition coverage for select degrees and universities through a partnership with Guild Education.
- Tuition reimbursement of up to $5,250 for schools and degrees outside that partnership.
- Paid time off including parental leave.
- English as a second language training.
âPlease bring a mask and follow all safety protocols while youâre in the restaurant,â the company said.
Chipotle doesnât have a company-wide minimum wage. On average, crew members earn about to an hour (or local minimum wage if higher) according to thousands of self-reported wages on Glassdoor.
As a safety precaution, outdoor and curbside interview accommodations are available.
Chipotleâs recruitment spree is focused on hiring new restaurant team members, which primarily consist of line cooks, food preppers, and cashiers. These positions are entry level.