Debt

Use These 5 Tips to Avoid Credit Card Fraud

May 12, 2020 By Trey LaRocca Leave a Comment

When it comes to having a credit card, we harp a lot on spending discipline. While that is arguably the most important lesson for cardholders, fraud is an unfortunate reality we need to come to terms with. While there is no way to guarantee your money is safe, there are many ways to bolster your security. Saving is great, but it doesn’t do much good if a stranger runs up your debt. So, to better equip you for times like these, here are some must-have tips to avoid credit card fraud.

Check Your Statements Weekly

As much as the monthly look-see is helpful, it is hard to remember every transaction in that timeframe. Checking weekly will ensure that you catch things in a timely manner, allowing you to cancel your card sooner. You never want to end up losing thousands of dollars because you didn’t open your banking app soon enough, so don’t get caught slipping on this. Keep your eye on your statements at least every week, though every time you use it is an even better standard to uphold.

Call the Issuer

Get used to calling your credit card issuer. If you want to avoid credit card fraud, you need to be comfortable asking questions about your statement. If it is something that does end up being you, you didn’t waste your time calling. The peace of mind you get knowing for certain that you are secure is much more important than the 5-10 minutes it will take you to ensure it. When it comes to fraud, time is imperative. Knowing doesn’t help if you don’t act, and act fast.

Be Stingy With Your Card Information

When it comes to retailers that you haven’t dealt with before, maybe hold back on the card info. Do everything you can to vet places that you are trusting with this information, especially with online retailers. If you can’t find a legitimate reputation that you can trust, you probably shouldn’t be trusting them with your credit card number. So, if it’s not a popular or storied retailer, do your research and be responsible to avoid credit card fraud.

Keep the Credit Card out of Your Wallet/Purse

Credit cards are typically for very specific uses, and you don’t need to always have them on you. When you leave the house, decide whether you are going to need your credit card or not. If you don’t, leave it at home. This will ensure that if your wallet is lost or stolen, you manage the damage that can be done. It also decreases the number of cards you need to cancel when you eventually find out.

Refer to the FTC

What we have given you here are the basics, but there are resources that go in-depth on credit card fraud. The FTC’s website has tons of tips on how to avoid credit card fraud, and what to do when it happens. So, if you still need some extra information, refer to the proper authorities for updated information on keeping your money safe.

What Does The Average Millennial Debt Look Like?

April 17, 2020 By Tamila McDonald 2 Comments

Financially, most Millennials – those born between 1981 and 1996 – are behind. On average, they earn just over $35,500 a year, and their net worth is a mere $8,000. Debt plays a big role in the low net worth numbers. And, since incomes aren’t increasing at rates similar to what Baby Boomers and Gen Xers saw, many are struggling to keep up. If you are wondering what the debt picture looks like, here’s what you need to know about the average Millennial Debt.

Millennial Debt Total

According to data from the Federal Reserve, Millennials owe more than $1 trillion in debt, in total. That’s across all debt-related categories, including credit cards, mortgage, and other kinds of loans.

Student loan debt for Millennials – the total of what’s owed by approximately 43 million Millennial borrowers – far outpaces previous generations in that category. It’s over 300 percent greater than what Gen X deals with, for example.

However, Millennials tend to have less in credit card and mortgage debt than Gen X. The lack of mortgage debt is partially a sign of the difficulty the generation has when it comes to entering the housing market. As for credit card debt, it’s a byproduct of Millennials’ general aversion to debt.

Credit Card Debt

Often, credit card debt usually comes with higher interest rates than many other types of debt. While Millennials are more debt-averse than different generations when it comes to credit cards, their balances have been rising. Over the course of one year, the average balance grew by 7 percent. As for the average balance, that hit $4,712.

Older Millennials tend to have higher credit card balances than their younger cohorts. For those who turn 39 in 2020 (the oldest Millennials), their average balance was $6,675. The youngest Millennials – anyone turning 24 in 2020 – come in at $2,288 on average.

Mortgage Debt

While many Millennials haven’t been able to buy homes, a decent number of their brethren scooped up properties. On average, Millennials with mortgages owed about $222,211 in Q1 2019. That’s a 5 percent increase over the previous year’s average.

Millennials are outpaced by Gen X when it comes to the average. Gen Xers came in at $237,753 on average. However, Millennials averages are growing faster than nearly every other generation. The only exception is Gen Z, which has a 15 percent growth rate. However, Gen Z had a lower average balance, sitting at $138,193.

Auto Loan Debt

For auto loans, Millennials have the fastest growth of any generation. On average, they owe $18,201 (as of Q2 2019), representing a 28 percent increase in just a seven-year period.

Gen Z does come in with a lower auto debt average, sitting at $14,272. However, both Gen X and Baby Boomers have higher averages, coming in at $21,570 and $18,759, respectfully.

New vehicle prices have mainly been growing. On average, a light vehicle (car, SUV, non-commercial trucks and vans, and other commuter-style four-wheeled vehicles) cost $38,948. As prices rise, loan sizes tend to follow.

Student Loan Debt

Student loan debt has been a shackle for many Millennials. The cost of college is over twice what it was in 1980, and Millennials have largely been told that getting a degree is either the key to success or an outright necessity.

The total amount of student loan debt has already crested $1.6 trillion. During Q2 2019, borrowers between 25 and 34 years of age (a large portion of Millennial graduates) owed an average of about $33,000 in student loan debt.

Ultimately, Millennials often have substantial debt loads and are often financially hindered by their student loans. However, they certainly aren’t the only generation battling against debt.

Do you think debt Millenial debt is holding you back? Do you have any tips that can help Millennials conquer their debt? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

What You Need to Know About the Proposed Student Debt Relief Act

March 30, 2020 By Amanda Blankenship Leave a Comment

Democrats have proposed a Student Debt Relief Act that would forgive $30,000 in student loan debt for borrowers during the coronavirus outbreak. This comes just two weeks after President Donald Trump announced student loan interest would be waived during the pandemic.

For the most part, liberals have been pushing for student loan forgiveness. In fact, it is one of Senator Bernie Sanders’ main talking points in his campaign. However, politicians are now saying the coronavirus outbreak and resulting economic downfall may require student debt cancellation to improve the economy.

What is the Student Debt Relief Act?

Of course, no Student Debt Relief Act has been pass… yet. There are about a dozen members of Congress backing the idea though.

“During this public health emergency, no person should have to choose between paying their student loan payment, putting food on the table or keeping themselves and their families safe and healthy,” lawmakers wrote.

More congressmen and women are looking to support this movement, but many of them cannot agree as to how much should be forgiven. Senators Chuck Schumer, Elizabeth Warren, and former vice president Joe Biden have proposed to automatically forgive $10,000 in debt for everyone.

This would mean for someone like me who owes $24,000, my debt would get knocked down to $14,000. That’s a pretty great deal! Others have proposed to forgive even more.

One thing is for sure. There are likely going to be changes to the federal student debt and forgiveness is likely going to extend to more people in the near future.

Other Help Coming

As mentioned, there have already been moves made to lessen the burden on student loan borrowers during the COVID-19 pandemic. First, interest on all federal student loans has been waived for the next 60 days. This is good news for individuals who have to apply for forbearance during this time. You won’t accrue interest while you’re not making payments (like you normally would).

Additionally, Congress has approved a stimulus for the coronavirus outbreak. Because many people are out of work, they are able to apply for these stimulus checks with their 2018 or 2019 tax returns. Each person will receive $1,200 and couples will receive up to $2,400.

Lastly, if you need help paying any of your other bills, you have options. Call your lenders, utility companies, and other businesses you deal with and explain your situation. Most places will work with you on payments right now.

What You Need to Know About the Trump Student Loan Interest Waiver

March 16, 2020 By Amanda Blankenship 1 Comment

President Trump announced the United States government would waive federal student loan interest amidst the coronavirus outbreak. Because many people are being forced to stay at home, not work, or work less, many people will need this break financially. However, the Trump student loan interest waiver doesn’t mean what you think it does.

So, What Does It Mean?

Friday afternoon Trump announced he would like to waive interest on student loans during the coronavirus outbreak. For those out of work, it sounds like great news, but it doesn’t mean you don’t have to make your payment.

When Trump announced this change, the Department of Education immediately went to the drawing board to figure out how this will work. They came up with this…

Your same payment will be due but the full amount will go to the principal and none of it will be going towards the interest. At this time, no interest will be applied to your account. This will give short-term relief to borrowers during the outbreak.

Other Options

Individuals who aren’t working at this time may need to pause their payments while they are out of work or until they get back on their feet. For these borrowers, you have a few options.

Income-Driven Payments: If your income is changing or you need to make a smaller payment, call your loan provider and discuss your options. Many of them will decrease the amount you have to pay based on your monthly salary.
Deferment: Deferment will give you a break from making payments on your student loans and you won’t be responsible for any interest accrued on subsidized loans during this time. There is a short list of reasons you might be granted deferment, including unemployment, cancer treatment, economic hardship, education, military duty, or rehab.
Forbearance: Similar to deferment, forbearance will give you a break from paying your student loans. However, you will be responsible for any and all interest during this time. You don’t have to have specific reasons why you are applying for forbearance.

People looking for deferment or forbearance will not have to make payments for a determined period of time. Typically, your loans would continue accruing interest during this time. With President Trump’s proposal, people needing a break from payments won’t have any interest added to their accounts.

However, it is a good idea if you can keep up your student loan payments at this time to do so. Don’t take the interest-free period to take a break from paying off your loan. In fact, paying on it now can actually benefit you.

Questions About The Waiver

So far, there are still a lot of unanswered questions surrounding the Trump student loan interest waiver, including some the Department of Education can’t answer. For instance, will the interest being waived now be added on later? DOE officials don’t yet have an answer to this.

Also, it isn’t yet clear as to whether or not federal PLUS loans will be covered under the waiver. This includes parent PLUS loans and graduate education loans.

All in all, the changes that need to happen for this waiver to take effect will be difficult for loan providers to implement in such a short period of time. Not to mention, some of these service providers will need to send their call center employees home to decrease the risk of contracting coronavirus. So, if you are looking to contact your provider about this, be patient.

The Trump Student Loan Interest Waiver Can Benefit You

Although you will still have to make payments on your loans, the Trump student loan interest waiver can help you if you aren’t in need of forbearance or deferment. Actually, you can take a good chunk off the amount you borrowed and shorten the amount of time you’ll be paying it back.

This waiver will be available to more than 35 million borrowers who have received a federal student loan. Private lenders, like Sallie Mae, will not be covered under the waiver.

Lastly, if you are wondering about what you need to do to benefit from the interest waiver, it’s nothing! You don’t have to contact your loan provider. The interest will automatically be waived during this time and will be retroactive to Friday when Trump announced the change.

Growing My Income Without Making More Money

February 27, 2020 By Trey LaRocca 1 Comment

This will be my first entry of the diary-style variety, and it is for a good reason. As a 21-year-old with no degree, a full time-job, and all of his very own bills, I think it is important to shine a light on one thing: I’m doing okay! As much as the media wants to tell you that young people are dying without free college or major social safety nets, it just isn’t true. You don’t have to game the system, milk any welfare, or strike it big to live happily in the US as a 20-something. With that said, there are some efforts I am making to ensure that I stay comfortable without finding a whole new job, or adding a side hustle to my already busy schedule. So this is about the two main ways I am growing my income in ways that any of you can replicate today!

I’m Selling My Car

I know, a scary first step. No, I’m not saying you all need to go carless to save money. In fact, that isn’t even what I’m doing. When I was 18, I had focused hard on working instead of going to school, and I had a full-time $13/hr job while still living with my parents. Up to this point, my family could never afford to get me a car– I didn’t even have my license. So once I could do it myself I got a used BMW 3 series for $10k that stuck me with a $190 car payment. This isn’t too bad a payment, but the insurance for someone my age makes my current car expenses ring in at around $380. So, to increase my usable income, I’m selling the car and buying a $2000 1990 Lincoln Town Car. No payment, and $70 liability insurance gives me around $310 more to play with each month.

Better Grocery Shopping

Today I had a little bit of time at the end of my work day, and I used it to check out my bank account. Specifically, I was looking at every time I bought food outside of my grocery shopping. Between a night out with my friend, a date with my girlfriend, the vending machine at work, and some “forgot my lunch at home” days at fast food spots, I managed to rack up about $300 in extra food expense. Noticing that the most common and preventable scenario was forgetting my lunch, my next grocery trip will be focused on good sandwich makings, meat, rice, and other packables that I can bring to work without much extra effort. Date night is important, and so is blowing off some steam with friends, but there is room to cut down. My goal for next month is to cut it down to $150, giving me the same amount in extra income to save or invest.

I hope you enjoyed this inside look into how I am bettering my situation. To all the young folks out there like me: You don’t need to have a degree or a high paying job to make it. I live in southern California, splitting rent with my girlfriend in a beautiful beach city I grew up in. No degree, no six-figure income (not even close), and no crazy internet fame. Just a reliable job and some good habits! As long as you stay smart, you can improve your situation and grow your income today!

Syracuse Mortgage Loan-Tips For Paying It Off Faster

February 7, 2020 By Alexa Mason Leave a Comment

A lot of people own their house outright. While some purchase their homes by paying cash, there are others who have no choice but to get a mortgage loan to buy the home of their dreams.

If you are one of those who need to take out a mortgage loan to finance the home you want to buy, you might worry about paying it off. Well, you don’t have to get tied up with your mortgage loan for a long time. There are a few ways on how to pay it off quickly that you should know about. You can start here by considering the following tips:

Make an Extra Payment for the Principal

One of the best Syracuse mortgage loan tips you can consider to pay it off faster is to make an extra payment for the principal. The majority of mortgage lenders will let you make extra payments and consider it as principal only. It means that your payment will go to paying down the principal instead of your loan’s interest and principal.

If you pay a bit of extra principal in your mortgage loan, it will save you lots of interest charges. In addition to that, it will get you out of the loan a few years ahead of the original schedule. Thus, considering extra principal payment can make a huge difference in paying your mortgage loan faster.

Prioritize Your Home Loan

Another tip to pay off your mortgage loan fast is to tighten your belt on other less important expenses. It is never too late to budget-start your month. It will help you increase your savings over time. You should also ensure that your household services like the internet or electricity are worth paying for. The reason behind it is that there is no point spending money on some things you do not really need. It is also a waste of money if you overpay for the things you do. So, always determine where you can make cuts and use your extra money to make payments on your mortgage loan.

If you prioritize your mortgage loan, you will just wake up one day that you are debt-free and enjoying your home without thinking about mortgage payments.

Consider Downsizing

Downsizing your home might be a drastic step for some homeowners. However, if you really want to get rid of your mortgage loan as soon as possible, it is beneficial to sell your bigger house and use the profits to purchase a less expensive and smaller home.

Use the profits you get from selling your big house and you might be able to pay for your new home cash. But, even though you need to get a small mortgage, it still means that you have reduced your debt. Your next goal should be getting rid of your remaining debt quickly. Well, if you have a small balance, it is never impossible.

Round-Up Your Balance

Make it a habit to round up your balance when paying your mortgage. For instance, if you need to pay $1,578.92, why not round it up and pay $1,600 instead? The extra money you paid from rounding up your balance can be used to reduce your payment next month or you may just use it to pay for the principal. As mentioned above, paying extra for your loan’s principal will help you pay off your mortgage quickly.

Consider Mortgage Refinancing

One of the ways to pay down your mortgage more quickly is to get a new loan for mortgage refinancing. It may help you reduce your debt in various ways. In fact, mortgage refinancing may lessen the interest rate, which can help you enjoy savings.

Homeowners may also refinance for a short term to get rid of mortgage quickly. Although monthly payments are higher with a short-term loan, you will be able to enjoy reduced interest costs. Those with FHA or Federal Housing Administration loans may eliminate PMI or private mortgage insurance if they are used to refinancing conventional loans. The insurance on a conventional mortgage may be dropped if someone has twenty percent equity in their property. Money used for the premiums may be diverted to the loan’s principal to speed up repayment.

Conclusion

It is not impossible to pay off your mortgage loan faster. The only thing you should do is to follow those tips mentioned above. Once you have done it successfully, there are some benefits you can enjoy from paying your mortgage loan faster. Aside from reducing your debts, it can also give you peace of mind, which is priceless. So, if you are ready to lessen your financial woes, don’t hesitate to implement those tips and see the difference. If you are confused and need more information about paying your mortgage loan, make sure to seek professional help.