Debt – Rauchen Aufgeben http://rauchen-aufgeben.org/ Wed, 16 Nov 2022 18:51:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://rauchen-aufgeben.org/wp-content/uploads/2021/05/cropped-icon-32x32.png Debt – Rauchen Aufgeben http://rauchen-aufgeben.org/ 32 32 Average direct health care costs | The bank rate https://rauchen-aufgeben.org/average-direct-health-care-costs-the-bank-rate/ Wed, 16 Nov 2022 18:51:33 +0000 https://rauchen-aufgeben.org/average-direct-health-care-costs-the-bank-rate/ Health insurance can eliminate some health care costs, but it can be much more difficult to pay these costs if you don’t have insurance. Even with insurance, many necessary medical events can involve significant expense. If health care costs become too high for you to comfortably afford, you can look for ways to cover out-of-pocket […]]]>

Health insurance can eliminate some health care costs, but it can be much more difficult to pay these costs if you don’t have insurance. Even with insurance, many necessary medical events can involve significant expense.

If health care costs become too high for you to comfortably afford, you can look for ways to cover out-of-pocket expenses. Some possible options include using a personal loan to cover additional expenses or even a debt consolidation loan accumulate several debts.

  • In 2021, 29.6 million Americans under 65 were uninsured.
  • 66.6% of US adults in 2021 aged 18-64 had private health insurance, while 21.7% had public health insurance.
  • 41% of American adults have some form of medical or dental debt.
  • Personal expenses are expected to reach approximately $800 billion by 2026.
  • In 2021, the average American employee paid $1,669 disbursed before reaching their deductible.
  • On average, spending by U.S. employees 11.6% of their median income on health plan costs.
  • About one in six Americans use personal loans to pay their medical bills.
  • On average, people save $X from deductions

Many Americans, even those with employer-sponsored medical coverage, are susceptible to high medical debt. In addition to paying a premium each month, the individual must pay a fixed amount before the coverage – also known as the deductible – kicks in. Although coverage results in lower costs for network providers and prescriptions, an unexpected medical bill can take years to pay.

According to a recent Kaiser Institute poll, 24% of adults surveyed said they currently have medical or dental debt that they are unable to repay. The situation is even worse for uninsured Americans, who often use personal loans or credit cards to finance their expenses.

However, how people finance their medical debt is nuanced and based on factors such as gender, socioeconomic status, and race. The KFF survey found that those with higher incomes are more likely to take out a personal loan, while those with lower incomes are more likely to borrow funds from family members or friends. .

The Financial Effects of Health Care

When it comes to Americans with health insurance — both public and private — those ages 65 and older are the population most covered by insurance. On the other hand, people aged 26 to 34 are the least covered.

Here are the percentages of Americans with health insurance in 2019, from those in the 0-18 age bracket, to those 65 and older.

0-18 94.3%
19-25 85.3%
26-34 84.0%
35-44 86.1%
45-54 88.6%
55-64 91.5%
65+ 99.2%

When the American Cares Act (ACA) was implemented in 2010, it helped reduce disparities in health insurance coverage; however, this did not completely eliminate him. A 2019 KFF report found that non-elderly people of color are more likely to be uninsured compared to their white counterparts.

Here’s how health coverage disparities play out across the country by race, which the KFF study says likely reflects “more limited rates of private coverage among these groups.”

White 93%
Black or African American 89%
Hispanic or Latino 80%
Native American or Alaska Native 78%
Asian 93%
Hawaiian or Pacific Islander 88%

People can be uninsured for many reasons, but some of the most common include:

  • They think they can’t afford health insurance, even with subsidies.
  • Their employer does not offer health insurance and they do not know how to find it from another source.
  • Buying insurance can be difficult or confusing.
  • They think they don’t need insurance.
  • They can’t find an insurance plan that meets their needs.

Health costs borne by patients

Deciphering all the reimbursable terms and what they mean for your wallet can be confusing, so we’ve broken down the most common terms you can expect on your next medical bill.

  • coinsurance: The percentage of medical expenses you pay after reaching your deductible.
  • Co-payment: Fixed fee you pay when you get in-network health care or prescription drugs.
  • Deductible: The amount you must pay for covered health services before your insurance starts paying.
  • Prime: The amount deducted monthly from your salary to pay for your insurance. The amount you pay will depend on your employer and the health insurance plan you choose.

The share of health expenditure in the country is highly dependent on age and health status. A KFF analysis found that only 2% of people in the United States reported poor health; however, the numbers change dramatically as people age, with 20% of people over 65 reporting their health as ‘fair’ or ‘poor’.

Peterson-KFF Health System Tracking found that in 2019, people aged 55 and over had the largest share of healthcare spending. Although representing only 30% of the population, this age group accounted for 56% of total health expenditure.

0-18 9%
19-34 12%
35-44 9%
45-54 13%
55-64 21%
65+ 35%

Expenses and direct costs dropped dramatically during the COVID-19 pandemic in 2020. A briefing note written by the Employee Benefits Research Institute (EBRI) found that costs were down 12% from 2019 costs. Recent studies have shown that average spending increases as people start to seek regular health care again.

High percentile median cost $3,295
Median cost $205
Prescription drugs $151
Hospital services $127
Ambulatory services $631

Although healthcare expenses may be high, you may be able to fund these costs through one or more means.

A personal loan

People often use personal loans to fund large or unexpected medical bills after discussing all of their payment options with the hospital. Lenders can disburse funds within days of approval, and depending on your credit, the interest rate is often lower than other financing options. However, you will be on the hook for years of monthly payments.

Credit card

If you receive a small bill for which you need immediate funds, turn to a credit card could be a good way to pay your medical bills. Keep in mind, however, that financing large amounts on a credit card can lead to high-interest debt if you’re unable to make the monthly payments.

A payment plan

Personalized payment plans are common among doctors, hospitals, and other medical providers. These plans divide a larger sum into smaller amounts that are repaid over time. While these plans are ideal for those with small bills, consumers with higher medical bills could end up with years of large monthly payments.

A HELOC

A home equity line of credit (HELOC) allows homeowners to borrow against the amount of equity they have built up in their home. Depending on the amount of wealth you have accumulated, purchasing a HELOC can help fund large amounts of medical debt. However, you must keep up with the monthly payments to avoid losing your home.

Frequently Asked Questions

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Expert advice for navigating higher interest rates https://rauchen-aufgeben.org/expert-advice-for-navigating-higher-interest-rates/ Sat, 12 Nov 2022 00:24:00 +0000 https://rauchen-aufgeben.org/expert-advice-for-navigating-higher-interest-rates/ ROCKY HILL, CT (WFSB) – Throughout the month, we’re helping you navigate a bloated economy and save money. If you’re trying to pay off credit card debt, it can be difficult, especially with the higher interest rates. We wanted to know how much this bloated economy weighs on people’s budgets. Consumer Ellen Felgate spoke about […]]]>

ROCKY HILL, CT (WFSB) – Throughout the month, we’re helping you navigate a bloated economy and save money. If you’re trying to pay off credit card debt, it can be difficult, especially with the higher interest rates.

We wanted to know how much this bloated economy weighs on people’s budgets. Consumer Ellen Felgate spoke about the impact of higher interest rates.

“We try to limit ourselves to one credit card. Thank God I did. But it was very high. It makes a big difference when you add it to gas and food,” Felgate said.

Interest rates make credit card debt harder to pay off. We spoke with two experts to find out what you should do right now to save money.

“There are strategies. Debt consolidation can often be helpful. Debt snowballs to pay off debt,” Felgate said.

Stephen Patterson, an expert and financial planner for KeyCity Capital in Dallas, said trying the debt snowball method first. Pay as much as you can on the smallest credit card debt. Once the credit card is paid off, take the money invested in that payment and roll it like a snowball onto the next smaller debt owed. Ultimately, this snowball payment only gets bigger.

“I always advise going after the smaller balance first because that gives you a win,” Patterson said. “Trying to keep spending on one card can often help.”

As a second strategy, call your credit card company and ask what can be done. Osman Kilic, a finance professor at Quinnipiac University, said he was asking for a lower interest rate.

“They don’t want to lose you. They will work with you. You are their customer. Please call them,” Kilic said.

A third tip, consider balance transfers. Use one card to pay off the other with a lower percentage rate, but only if you can pay it off in full within the time limit.

“The challenge is that at the end of this period, this rate will increase significantly, so you have to make the most of it,” Patterson said.

Experts said a fourth piece of advice was to consider debt consolidation companies. However, you need to do your homework. Be sure to research the company and ask tough questions. For example, if it will hurt your credit score. More importantly, make sure they are legit.

“Some of them are very helpful. They work on your behalf with credit card companies,” Kilic said.

Patter said, “Make sure the interest rate on the debt consolidation loan is significantly lower than the interest rates you pay on credit cards.”

Both experts said you can use one or maybe all of these tips that could help combat those higher interest rates to lift even a little of that heavy weight.

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Stroke of genius or sheer madness? https://rauchen-aufgeben.org/stroke-of-genius-or-sheer-madness/ Thu, 03 Nov 2022 20:45:19 +0000 https://rauchen-aufgeben.org/stroke-of-genius-or-sheer-madness/ Just over a year ago, El Salvador made a bold bet on Bitcoin. The Central American nation of 6.5 million people has become the first country in the world to accept Bitcoin as legal tender. Led by its young president, Nayib Bukele, El Salvador sought to change its economic fortunes overnight with the move. Needless […]]]>

Just over a year ago, El Salvador made a bold bet on Bitcoin. The Central American nation of 6.5 million people has become the first country in the world to accept Bitcoin as legal tender. Led by its young president, Nayib Bukele, El Salvador sought to change its economic fortunes overnight with the move.

Needless to say, the whole world raised eyebrows when Bukele announced the country’s switch to Bitcoin. Until then, El Salvador was famous for many reasons, but none of them were good. In addition to being one of the poorest countries in the Western Hemisphere, El Salvador is plagued with a pernicious violent crime problem due to the entrenched presence of MS-13, one of the street gangs the most famous in the world.

With this as a backdrop, Bukele felt the need to make a drastic decision to turn the country’s fortunes around. By announcing the adoption of Bitcoin as legal tender by the country, he did exactly that. As part of implementing the change, the central bank of El Salvador purchased nearly $425 million worth of Bitcoin. Bukele also proclaimed that he would build a Bitcoin City, which would serve as an international hub for Bitcoin investors.

This crypto haven was supposed to include all new infrastructure designed to facilitate cryptocurrency trading. In a groundbreaking ceremony in November 2021, Bukele promised that Bitcoin City would inaugurate its own airport, new commercial and residential developments, and its own Bitcoin mining facilities. More importantly, it would become a tax haven, where Bitcoin investors from all over the world could live and trade Bitcoin.

Bitcoin conversion did not go as expected

When El Salvador announced the switch to Bitcoin in September last year, economists around the world saw the move the same way. There would be no middle ground. Either it was going to be a stroke of genius that revolutionized the country and made it an investor’s paradise, or it was going to be an absolute disaster.

A little over a year later, it’s starting to look like a disaster. When El Salvador made its $425 million bet on Bitcoin, it was trading at a (then) all-time high of $47,000. Today, it is hovering around the $20,000 mark. This essentially means that much of the “currency” in El Salvador has lost more than half of its value. As for the Bitcoin City that was supposed to spark El Salvador’s emergence as a cryptocurrency economic superpower, it’s not even a ghost town – you have to have a city before it becomes a city. phantom.

By all accounts, none of the promised infrastructure projects have been inaugurated. There is no airport, no commercial development, and certainly no Bitcoin mining. Between this lack of infrastructure and the bitcoin crash, needless to say, there hasn’t been a large influx of bitcoin investors arriving in private jets to help revolutionize El Salvador’s economy.

Unfortunately for El Salvador and Bukele, that’s not where the bad news ends. The country has about $1.6 billion in bond issues maturing in 2023 and 2025. And that’s only part of the country’s debt. In total, El Salvador has bond debt of $7.7 billion. But the total value of the country’s economy is estimated at just $29 billion.

Worse still, El Salvador currently has a debt-to-gross domestic product (GDP) ratio of almost 87%. This is largely the reason why FitchRatings downgraded El Salvador bonds from B- at a CCC rating. In plain English, this means that at the same time that El Salvador’s economy is in the tank, it will become even more difficult for the country to borrow funds and raise capital.

It’s basically the equivalent of someone with a FICO score of 500 trying to get a debt consolidation loan. Even if approved, the terms of the loan will be so severe that there will be little or no benefit in obtaining the money. At this point, any loan to El Salvador will carry annual interest rates between 25% and 29%.

This dire estimate was provided by Frank Muci, a policy researcher at the London School of Economics who has served as a financial adviser to many Latin American governments. The International Monetary Fund (IMF) has also taken note. He is basically telling Bukele that if he is to hope for continued financial aid, the country will have to end its bitcoin experiment in a hurry.

The IMF is still largely skeptical of cryptocurrency, and talks with Bukele over a $1.3 billion loan to cover the country’s bond issues have largely stalled. The move has as much to do with El Salvador’s grim economic situation as it does with Bukele’s unwavering faith in Bitcoin.

Another problem is that El Salvador cannot simply print money for debt relief like some other countries. In 2001, El Salvador abandoned its colon currency in favor of the US dollar. The move made sense at the time, especially in light of the millions of dollars a year flowing into the country via remittances from Salvadorans living in America. However, since only the Federal Reserve can print dollars, El Salvador cannot pull this lever.

Then there is the question of Bukele himself. The man who describes himself as “the coolest dictator in the world” on his Twitter account has worked to consolidate his power in a number of decidedly undemocratic ways. Last year he sacked the country’s attorney general and many of its top judges – especially judges who were politically a thorn in his side.

It is also upping the ante on Bitcoin and reportedly commanded the acquisition of nearly 2,400 more coins despite its precarious decline in value. Apart from the international issues that Bukele faces with Bitcoin, the Salvadoran population has also been slow to embrace his experience. When the plan was announced, each Salvadoran received the equivalent of $30 worth of Bitcoin through the country’s Chivo app.

The original plan was that Salvadorans would embrace the app because it would allow them to access funds without going to banks that charge hefty fees. The first signs were promising when almost 80% of Salvadoran households downloaded the app. Unfortunately for Bukele, less than 20% of Salvadorans who downloaded Chivo continued to use it after spending their initial $30 credit.

Apparently, there is still a very strong preference for cash among the general population and the business community in El Salvador. And although all Salvadoran businesses are supposed to accept Bitcoin, it is estimated that only 20% of them do. All of this contributed to making the first year of El Salvador’s Bitcoin Experiment a disaster.

Possible silver linings

Many economists are worried about whether El Salvador is headed for default or whether it will have to resort to austerity measures to avoid it. However, there are also very real silver linings in the clouds forming over this Central American nation. Salvadoran Tourism Minister Morena Valdez reports that tourism in the country has increased by 30% since it started accepting bitcoin as legal tender.

It remains to be seen how sustainable this trend is in the long term. However, Bukele’s support in El Salvador remains high. Along with its Bitcoin agenda, it also took a tough stance on MS-13 and locked up thousands of its members. This is bound to make you popular in a country known to be one of the most violent places on the planet. As things stand, Bukele’s approval rating is over 80% by some estimates.

So, is President Bukele a madman or a genius?

In reality, it is too early to know if Bukele’s Bitcoin bet will pay off. With hindsight being 20/20, it is unlikely that he would have adopted Bitcoin as legal tender had he known the crypto crash was coming. And while there’s no doubt that early returns have been lackluster and his Bitcoin City has yet to be built, it’s still impossible to predict what the future holds.

Right now, that looks like one of the most colossal mistakes imaginable. However, the same was true of the Las Vegas Flamingo Hotel in 1947. The official opening of the hotel was such a flop that the original owners (the New York mob) obliterated Benjamin “Bugsy” Siegel as punishment for losing all their money. However, 80 years later, Siegel’s belief in Las Vegas has been vindicated.

It could still happen that Bukele’s Bitcoin bet is the prescient vision of a man several decades ahead of his time. The question of timing determines the fate of almost all investments, Bitcoin included. It is entirely possible that Bukele’s dream of El Salvador as a crypto-state with Bitcoin City acting as an international crypto hub will come true. Only time will tell, even if things don’t look so good right now.

Could it work elsewhere if it fails in El Salvador?

Like all bold moves, El Salvador’s bet on Bitcoin is the product of both inspiration and desperation – probably in equal measure. For this reason, it may not be wise to completely remove Bitcoin as a currency if it does not work for El Salvador. Even if Bukele’s move worked perfectly, it wasn’t going to solve all of El Salvador’s problems.

The truth is that there are many structural problems such as crime, entrenched poverty, the legacies of a decades-long civil war, and corruption that make the Salvadoran economy a difficult puzzle for any policy maker to solve. monetary. Another country with a more developed infrastructure and a population with higher disposable income might be able to get Bitcoin accepted as legal tender.

Unfortunately for Bitcoin holders, as long as the currency shows such volatility, it is unlikely that a country not in such dire straits as El Salvador will soon adopt Bitcoin as legal tender. This may not always be the case. If Bitcoin – and cryptocurrency in general – can solve its volatility and regulatory problem, it still has the potential to be a game changer. El Salvador may be decades ahead of its time.

Related: Tokenized multi-family real estate investment with a target IRR of 16.8%

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© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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How to Get a $50,000 Personal Loan – Forbes Advisor https://rauchen-aufgeben.org/how-to-get-a-50000-personal-loan-forbes-advisor/ Tue, 01 Nov 2022 00:06:16 +0000 https://rauchen-aufgeben.org/how-to-get-a-50000-personal-loan-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. A personal loan is a financing option that you can use to cover a variety of different expenses. Whether you need a loan for debt consolidation, home improvement projects, or something else […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

A personal loan is a financing option that you can use to cover a variety of different expenses. Whether you need a loan for debt consolidation, home improvement projects, or something else entirely, a personal loan can make your goals more manageable.

Larger personal loans of $50,000 can be offered to qualified individuals through various financial institutions and online lenders. Follow these five steps to get a $50,000 loan.

1. Consider qualification requirements

The first step is to review the qualification requirements of different lenders. Here are some commonalities personal loan terms you might encounter.

  • Minimum credit score: You should check your credit score to get an idea of ​​how your credit measures up to lenders’ standards. We recommend a minimum score of 670.
  • Revenue: Some lenders may want confirmation that you earn a minimum wage before giving you a personal loan, but not all lenders will disclose the minimum income they require.
  • Debt-to-income ratio (DTI). If you have too much debt relative to your income, you may struggle to qualify for financing, especially a $50,000 personal loan. A DTI of less than 36% is ideal, although some lenders will approve a highly qualified applicant with a ratio of up to 50%.

As you review lender requirements, make a list of personal loans you think you might be eligible for. You should also keep a separate list of lenders who are unlikely to approve your application so you know which ones to avoid.

2. Prequalify with multiple lenders

Once you have a list of lenders you think could work with you, check to see if any of them offer prequalification. Many lenders allow interested borrowers to prequalify for a loan, allowing you to see what terms you may qualify for when you apply, although they are unsecured. Prequalification usually only requires a flexible credit applicationwhich has no impact on your credit score.

3. Compare your offers

Then it’s time to compare your pre-qualified loan offers and choose the best personal loan for you. Of course, you will want to pay close attention to the interest rates offered by different lenders. A lower interest rate has the potential to save you a lot of money on your loan.

However, there are other details that could influence your decision, including:

  • Fees (opening fees, application fees, prepayment penalty, etc.)
  • Loan amount (can you borrow up to $50,000?)
  • Repayment period
  • Monthly payment
  • Uses of the loan
  • Funding speed

4. Complete and submit your application

After making your final choice, complete and submit your official loan application. You should expect to provide more information on your full application than on your initial prequalification form.

Here are some of the details and documents your potential lender may request when you apply for a personal loan:

  • Personal information (name, address, social security number, date of birth, etc.)
  • Employer and job title
  • Income and proof of income (e.g. pay stubs, tax returns, etc.)
  • Chequing and savings account balances
  • Copies of bank statements
  • Monthly rent or mortgage payment

5. Manage and repay your loan

If approved, you should receive final loan documents that confirm the details of your loan agreement, such as your interest rate, repayment term, monthly payment, and loan amount.

Lenders ask you to sign your loan agreement to confirm that you accept the terms and conditions of the financing. After your signature, the lender can begin the process of sending you the loan proceeds. You can expect a direct deposit to your bank account the same day or within a few days.

Once you have received your loan proceeds, your loan repayment period begins. The lender will expect you to start repaying your loan according to the terms set out in your loan agreement. Some lenders may offer you a rate reduction if you sign up for autopay.

How to get a $50,000 loan with bad credit

Qualifying for a $50,000 personal loan with bad credit can be a challenge. Many lenders are unwilling to approve a borrower for a personal loan unless they have at least one fair credit score or better.

However, you may be able to find lenders willing to work with you if you have bad credit. Of course, your income, DTI ratio, and other factors will also need to meet the lender’s borrowing criteria. Your credit alone does not guarantee loan approval.

If you are able to qualify for a personal loan with bad credit, you must be prepared to pay higher interest rates and fees in exchange for the credit risk you pose as a borrower with bad credit. credit. Additionally, bad credit can limit the amount of loan you are eligible for.

Where to get a $50,000 loan

Long term costs of a $50,000 loan

It is always wise to calculate the cost of a loan before making your final decision on whether or not to accept an offer. You can use tools like Forbes Advisor personal loan calculator to estimate the monthly payments and overall interest you would pay over the life of a loan.

If you take out a low-interest loan for consolidate debt, a new personal loan could help you save money in the long run. But even in this scenario, you must commit to not accumulating additional debt after consolidation. Otherwise, you could end up with bigger debt problems down the road.

Conclusion

Exit $50,000 Personal loan could be useful in many different financial scenarios. However, it is important to make an honest assessment of your situation before committing to such debt.

If you think a $50,000 loan is right for you, be sure to shop around for the best deal available. It’s important to get the lowest interest rate and fees possible, especially when borrowing larger sums of money.

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How to fix your finances before the holidays https://rauchen-aufgeben.org/how-to-fix-your-finances-before-the-holidays/ Fri, 28 Oct 2022 18:22:00 +0000 https://rauchen-aufgeben.org/how-to-fix-your-finances-before-the-holidays/ There are a series of reliable ways to improve your finances before the holidays. RICH LEGG/Getty Images With Thanksgiving fast approaching and Christmas just around the corner, many Americans are already making the first preparations – from buying gifts to travel plans. In reality, a recent study claimed that 50% of shoppers started holiday spending […]]]>
Friends celebrating Thanksgiving dinner together
There are a series of reliable ways to improve your finances before the holidays.

RICH LEGG/Getty Images


With Thanksgiving fast approaching and Christmas just around the corner, many Americans are already making the first preparations – from buying gifts to travel plans. In reality, a recent study claimed that 50% of shoppers started holiday spending before Halloween.

If you find yourself in this group of buyers or plan to join in the coming days or weeks, you may already be analyzing your bank account to determine what you can and cannot afford.

Fortunately, there are a series of reliable ways to improve your finances before the holidays. All you have to do is choose the method that best suits your personal financial situation.

An online financial advisor can help you review your options today. Or read on to discover alternatives that might work for you.

3 Ways to Improve Your Finances Before the Holidays

Earn extra money

Even if you have a full time job, you can still earn extra money.

One of the most popular and easiest ways to do this is to respond to paid surveys. Getting started is easy. Simply create an account on a secure market research site like Brand surveys Where Swag Bucksanswer a few questions, then choose which surveys you want to take (some will also include the approximate time it takes to complete them).

You will not be get rich doing paid surveys (how much you earn really depends on your time investment). Still, if you have some spare time at night or on weekends, it can’t hurt, especially if you soon have small gifts to buy.

Also consider a passive income streamif you want to make larger sums.

Consolidate your debt

If you have an unpaid debt at a prohibitive interest rate, it may be time to consolidate what you owe and start saving money. Debt consolidation loans allow borrowers to combine their debts into one simple loan with a lower interest rate.

By consolidating your debts into one loan with a lower interest rate, you can start saving money right away. But you will also save significant sums in the long run, as the loan will be adjusted into a more manageable sum.

This is especially useful for those with high interest credit cards. The average interest rate on a 24-month personal loan was 8.73%, according to recent data from the Federal Reserve. Compare that to the average credit card interest rate of 16.65% – almost double!

So, check the rates you currently have. Then compare the rates to a debt consolidation loan. It’s easy to start today.

Refinance existing debt

Granted, mortgage refinance rates aren’t what they used to be, but there are certain scenarios where it might still make sense. Homeowners with high interest rates, for example, could still save money with a refinance. those with Private Mortgage Insurance (PMI) may also be able to save.

This also applies to student loans. Remember: President Biden’s Pardon Program applies only to those with federal student loans. Private student loan borrowers are not eligible.

So calculate the numbers and see how you can save by refinance your mortgageyour student loan or both.

The bottom line

With the holidays fast approaching, take advantage of the multiple ways you have to earn more money and save (hopefully at the same time). Speak to a financial advisor now who can help you find the best way forward.

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Student Loan Debt Relief – Alliance Times-Herald https://rauchen-aufgeben.org/student-loan-debt-relief-alliance-times-herald/ Wed, 26 Oct 2022 07:01:59 +0000 https://rauchen-aufgeben.org/student-loan-debt-relief-alliance-times-herald/ The United States Department of Education currently offers federal student debt relief. The program offers eligible borrowers full or partial loan release of up to $20,000 for Federal Pell Grant recipients and up to $10,000 for non-Pell Grant recipients. Pell grants are available to low-income students based on their FAFSA. Applications can be completed at […]]]>

The United States Department of Education currently offers federal student debt relief. The program offers eligible borrowers full or partial loan release of up to $20,000 for Federal Pell Grant recipients and up to $10,000 for non-Pell Grant recipients. Pell grants are available to low-income students based on their FAFSA.

Applications can be completed at studentaid.gov/debt-relief. The application takes about five minutes to complete. This is one-time debt relief. Applications opened earlier in October and will close on December 31, 2023. You do not need to provide any documents when applying, but the Department of Education may contact you for more information.

Not everyone is eligible for student loan forgiveness. First, there is an income limit. A person must have earned less than $125,000 in 2021 or 2022, from your IRS Form 1040. For families, the maximum income limit is $250,000 in 2021 or 2020.

Private loans (from financial institutions, not the federal government) are not eligible for debt relief.

Debt relief only applies to loan balances you had before June 30, 2022. This includes Direct Loans (William D. Ford), FFEL Loans (Federal Family Education Loans), Perkins loans and PLUS loans for parents or graduates. Loans may or may not be subsidized by the government.

Any new loans disbursed (when loan funds have been received) on or after July 1, 2022 are not eligible for debt relief.

Federal loans in default (overdue) are also eligible.

Consolidation loans are a bit more complicated. This means that several loans have been combined so that a person only has to make one monthly payment. Federal student loan consolidation combines multiple federal loans into one federal loan through the Department of Education. These loans are eligible for the debt relief program.

Private lenders offer private student loan consolidation, also known as student loan refinancing. It’s a good idea to bundle private loans into one of these programs to lower interest rates and move to one monthly payment. These loans are NOT eligible for the debt relief program.

Private loans cannot be transferred to the federal government, but federal and private loans can be consolidated with a private lender. If you did this, you lost the opportunity to get debt relief on the federal loan. The Department of Education is still negotiating with private lenders to see if this can be changed, so people who have this type of consolidated loan should be careful that this is resolved.

Another complication is that there was a pause in payments during the COVID pandemic. From March 13, 2020 to December 31, 2022, borrowers did not have to make student loan repayments. If you made payments on your federal student loans during this time, the government will refund what you paid and forgive your loan up to the maximum amount of debt relief.

StudentAid.gov can help you complete the online form or answer questions related to a borrower’s specific situation. Contact the agency at 1-833-932-3439.

The Department of Education has issued several warnings about scams from companies offering to help you manage your loans or application for a fee. You NEVER have to pay for aid with your federal student aid. As with all scams, you would be asked for personal information and passwords. DON’T! If the government attempts to contact a borrower, it will email noreply@studentaid.gov, noreply@debtrelief.studentaid.gov, or ed.gov@public.govdelivery.com.

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5 crucial points to remember after the court suspended student loan forgiveness https://rauchen-aufgeben.org/5-crucial-points-to-remember-after-the-court-suspended-student-loan-forgiveness/ Sat, 22 Oct 2022 13:31:52 +0000 https://rauchen-aufgeben.org/5-crucial-points-to-remember-after-the-court-suspended-student-loan-forgiveness/ Miguel Cardona, US Secretary of Education, at a press conference with US President Joe Biden, … [+] left, in the Roosevelt Room of the White House in Washington, DC. Biden announced a sweeping student debt relief package that forgives up to $20,000 in loans to some recipients, a move he said would help a generation […]]]>

A federal appeals court on Friday temporarily stopped Biden’s signature student loan forgiveness program, which forgive up to $20,000 in student loan debt for tens of millions of borrowers.

The court action has already begun to sow confusion and concern. Here’s what student borrowers need to know.

Legal action to block Biden’s student loan forgiveness plan brief and temporary – for now

The 8th Circuit Court of Appeals has blocked implementation of Biden’s student loan forgiveness plan at the emergency request of a coalition of Republican-led states. Those states had sued the Biden administration in Missouri federal district court, arguing that Biden’s plan would result in lost revenue and other financial harm to the states and their state-affiliated FFELP lenders and providers, such as than MOHELA. The federal district court judge dismissed the lawsuit, but the states then appealed to the 8th Circuit.

The 8th Circuit has granted the states’ request for an emergency temporary “stay” while the parties prepare their legal arguments regarding a potentially more serious stay, called an injunction. An injunction can block a contested rule, law, or program for the duration of a legal battle, which can last months or even years. An injunction poses a potential danger to Biden’s student loan forgiveness program, but the court won’t rule on that for at least several days.

In the meantime, this current program freeze is a temporary administrative break.

“The [8th Circuit’s] The order does not reverse the dismissal of the case by the trial court, nor does it suggest that the case has merit,” the White House said in a statement late Friday. “It just prevents [student] debt to be discharged until the court renders a decision” on the preliminary injunction.

Stay only affects Biden’s one-time student loan forgiveness initiative, not PSLF or other programs

Importantly, the 8th Circuit ruling only impacts Biden’s one-time student loan forgiveness plan, which can provide $10,000 or up to $20,000 in student loan forgiveness to eligible borrowers.

Temporary stay has no impact on other federal student loan forgiveness programs, including the Public Service Loan Forgiveness (PSLF) or the Limited PSLF Waiver initiative, due to end October 31.

Borrowers can still submit applications for student loan forgiveness

The application for Biden’s student loan forgiveness program, which posted last week, is still active and available, and the Education Department can still review applications. It simply cannot process applications or implement student loan forgiveness while the emergency stay remains in effect.

“Following a court order, we are temporarily prevented from processing debt discharges,” read a post on the student loan forgiveness application website. “We encourage you to apply if you are eligible. We will continue to review applications. We will promptly process dumps when we are able to do so.

Senior Education Department and White House officials are urging borrowers to keep applying.

The “temporary decision does not stop the Biden administration’s efforts to provide borrowers with the opportunity to apply for debt relief,” Education Secretary Miguel Cardona said in a statement. Tweeter late Friday. “Amid Republican efforts to block our debt relief program, we are moving full speed ahead to be ready to provide relief to borrowers who need help.”

Borrowers who have already submitted student loan forgiveness requests do not need to take any further action

The Biden administration reported yesterday that 22 million borrowers have already applied for student loan forgiveness. This represents more than half of the estimated eligible borrowers.

Secretary Cardona confirmed on Friday that those borrowers who have already applied need not worry. The action of the court “does not [not] prevent us from reviewing the millions of applications we have received,” he said.

“You won’t need to reapply” if you’ve already applied for student loan forgiveness, according to the Department of Education’s online application portal.

The exclusion of FFELP loans held by companies could be at the heart of the Court’s next decision on the student loan forgiveness plan

Three weeks ago, the Biden administration updated eligibility guidelines for the Student Loan Forgiveness Plan for exclude corporate-held FFELP loans from relief.

Originally, the Ministry of Education informed borrowers that these FFELP loans could be consolidated into a direct consolidation loan to receive loan forgiveness. But on September 29, the administration reverse course, indicating that FFELP loans held by companies and direct consolidation loans containing FFELP loans held by companies on the basis of an application submitted on or after September 29, 2022 would no longer be eligible. Other FFELP loans, including FFELP loans held by National Education, can still qualify.

This legal challenge was a key factor in the Department of Education’s decision to reverse the FFELP loans. A central argument of Republican-led states is that the Biden student loan cancellation plan starves those states, and their state-affiliated FFELP lenders, of revenue. But if FFELP loans held by individuals are not eligible for student loan forgiveness, it can undermine those legal arguments.

Ultimately, these are questions the 8th Circuit will consider in the coming days as it considers an injunction. And this decision will have wider implications for millions of student borrowers.

Further Reading on Student Loan Forgiveness

Court Temporarily Blocks Biden’s Student Loan Forgiveness Plan — Here’s What It Means For Borrowers

In Reversal, Biden Administration Announces New Student Loan Forgiveness Eligibility Limits

Apply for student loan forgiveness? Don’t Make These 3 Mistakes

Biden launches student loan forgiveness app, says 8 million have already applied

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“I used my credit card to the maximum to pay for unexpected expenses” https://rauchen-aufgeben.org/i-used-my-credit-card-to-the-maximum-to-pay-for-unexpected-expenses/ Wed, 19 Oct 2022 05:02:12 +0000 https://rauchen-aufgeben.org/i-used-my-credit-card-to-the-maximum-to-pay-for-unexpected-expenses/ I had unexpected expenses this year – expensive car and home repairs on my home property – and used my credit card to pay for them. They took me by surprise and I had no savings to cover these costs as my salary was cut during the Covid-19 pandemic and has not yet been restored […]]]>

I had unexpected expenses this year – expensive car and home repairs on my home property – and used my credit card to pay for them.

They took me by surprise and I had no savings to cover these costs as my salary was cut during the Covid-19 pandemic and has not yet been restored to the original amount.

Since then, I can no longer save money for emergencies.

Because I maxed out my credit card to cover these expenses, I find it hard to keep up with the payments – every month I seem to owe more than the original amount I used to pay for repairs to my car and my property.

I only paid the minimum amount because I also have to take into account daily expenses, as well as rent, utilities, food, my children’s school fees and other incidentals.

I’m afraid I’ll have to pay off this credit card for years because the interest rate is so high and I can’t afford to pay more than the minimum monthly payment.

Is there another way to quickly pay off the credit card and start saving for the future? Please advise. HS, Dubai

Debt Speaker 1: R Sivaram, Executive Vice President and Head of Retail Banking Products at Emirates NBD

A credit card is a financial tool that can help you easily manage your day-to-day payments and transactions, access short-term credit, benefit from attractive shopping offers and discount programs, and to earn rewards based on your spending.

However, if your credit card spending reaches almost the full limit, as you mentioned, monthly payments and accrued interest can increase and lead to potential financial problems if you are unable to repay in full. the unpaid amount.

Paying only the minimum amount required each month is a common practice adopted by many cardholders.

However, keep in mind that it can also lead to continued debt growth due to compound interest, higher regular payments, and the threat of falling into a debt spiral.

One thing you can do right away is talk to your bank and share all the details of your financial situation.

Based on your proactive approach, your bank will most likely be willing to review the situation and possibly consolidate your debt into a low interest installment plan on your credit card or convert it into a personal loan with a lower interest rate and longer payment. term.

Ideally, you should be looking for a low monthly repayment over a longer period, which will give you flexibility while hopefully avoiding having to borrow again.

When approaching your bank for a loan consolidation, you need to have a clear plan detailing your income and expenses – this will help you be clear about how you propose to pay it back and get out of debt.

The bank may also ask you to surrender your credit cards to prevent you from incurring further debt while you pay off the loan. If you have credit cards with another bank, you must also stop using them during this period.

It’s also important to work out a budget plan and set a monthly limit on your discretionary spending outside of essentials like groceries, utilities, tuition, and the like. Try to get into the habit of setting aside a percentage of your income as savings to help out on “rainy days”.

It is commendable that you ask for help with your situation in order to put changes in place before it is too late.

Debt 2 Panelist: Jaya Ratnani, Managing Partner at Freed Financial Services

We all have aspirations and desires for the lifestyle we want to achieve.

While not everything can be quantified in terms of money, many lifestyle decisions we make have financial implications.

This is usually constructive as it motivates us to work harder and have more ambition. However, under certain conditions, it can mislead financially by financing with excessive indebtedness that exceeds our ability to repay.

A credit card can help you manage your daily payments. However, if your spending exceeds the limits, monthly payments can lead to potential financial problems.

Regarding your situation, you should contact your bank immediately and discuss your financial situation.

The bank will assess your current situation and may develop a debt consolidation plan based on your repayment capacity.

You can avoid high interest rates on your credit card by requesting a monthly installment plan that allows you to pay off your debt in a structured way.

Your bank may consider consolidating your credit card debt into a personal loan with a lower interest rate and longer payment term. This will give you flexibility and save you from having to borrow again.

Debt 3 Panelist: Alison Soltani, Founder of Leap savvy savers

The first thing to do is to assess your income and expenses to establish your cash flow.

Write down your household income and anything you’ve spent money on over the past two or three months.

You need to figure out exactly how much disposable income you have left to spend on debt.

Then go through your list of expenses and ask yourself if there is anything you can eliminate or reduce, even temporarily.

Doing a no-spend challenge or a savings challenge can be effective in helping you figure out what expenses you can forego while maintaining your lifestyle.

The other factor to consider is your income.

You mentioned that you had a pay cut during the pandemic. Could you look for another job, retrain or consider a secondary activity?

With inflation and the rising cost of living, having a lower income will prevent you from paying off your debt. Think about how you can make yourself more valuable in your industry and aim to learn high-paying, in-demand skills.

You should also plan for debt repayment and build an emergency fund.

There are online debt repayment calculators – make sure you know the interest rate and any charges applied to the debt, then experiment with a debt repayment calculator, calculating your monthly repayment over different periods.

Doing a no-spend challenge or a savings challenge can be effective in helping you figure out what expenses you can forego while maintaining your lifestyle.

Alison Soltani, Founder of Leap Savvy Savers

You also need to consider building an emergency fund, otherwise you could find yourself in the same or worse position on your debt repayment journey.

For example, you can choose to pay off your debt over 24 months rather than 18 months and simultaneously build an emergency fund.

For starters, a month’s worth of spending is imperative. An ideal emergency fund is three to six months of expenses, depending on your dependents and your lifestyle.

In addition to a strong emergency fund to cover unexpected expenses, setting up a sinking fund to pay for large anticipated expenses such as tuition, visa fees, or car insurance can help you maintain a sustainable budget.

Determine the major expenses you plan to pay over the next six to 12 months and start putting money aside each month. This helps avoid going into debt or using a credit card in the future to pay these fees.

Finally, you might consider transferring your balance to a credit card or personal loan with a lower interest rate to reduce the overall amount you’ll pay.

The extent to which this is a viable option for you will depend on how the debt affects your credit score, which is readily available to Al Etihad Credit Agency. However, if you can negotiate a lower interest rate, it could significantly reduce your debt load.

Updated: October 19, 2022, 5:00 a.m.

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Should you take out a personal loan when you have savings you can count on? https://rauchen-aufgeben.org/should-you-take-out-a-personal-loan-when-you-have-savings-you-can-count-on/ Sun, 16 Oct 2022 14:00:41 +0000 https://rauchen-aufgeben.org/should-you-take-out-a-personal-loan-when-you-have-savings-you-can-count-on/ Image source: Getty Images The quick answer? It depends. Key points Personal loans are a good option to consider when you need money. Although you can turn to your savings in some situations, in other cases you are better off leaving your cash reserves alone. If you have less money in savings and a higher […]]]>

Image source: Getty Images

The quick answer? It depends.


Key points

  • Personal loans are a good option to consider when you need money.
  • Although you can turn to your savings in some situations, in other cases you are better off leaving your cash reserves alone.
  • If you have less money in savings and a higher credit score, you may want to take out a personal loan.

The advantage of personal loans is that they tend to be more flexible and affordable than other borrowing options. Granted, these days personal loan rates are on the rise due to interest rate hikes by the Federal Reserve. But when you compare the cost of borrowing through a personal loan to that of a credit card, it’s easy to see why the former might win out.

Now, a personal loan can be a good option to fall back on when an unexpected bill comes up and you need cash unexpectedly. But what if you have money in your savings account – enough to cover the expenses you face? Should you dip into your emergency fund? Or should you leave your cash reserves alone so the money will be there for another time and take out a personal loan instead?

It all depends on why you are borrowing and how much money you have

Some people take out personal loans for non-emergency situations, such as home renovations. If this is the scenario you find yourself in, you don’t want to dip into your emergency savings to pay for something like new kitchen appliances or an updated master bathroom. But if you’re considering getting a personal loan because an unexpected bill has come up, you might want to consider tapping into your emergency fund if it’s well stocked.

Discover: These personal loans are the best for debt consolidation

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

Although personal loans tend to have more competitive borrowing rates than other loan products, in the end you will still pay interest on the amount you borrow. And also, as mentioned, personal loan rates are up right now because everything consumer borrowing rates are higher. As such, you might end up finding that a personal loan isn’t as affordable as you think.

So let’s say you’ve had a problem with your car that you need to fix immediately, and you have a bill for $5,000. You might be inclined to borrow that money and leave your savings intact. But even if your credit score is great, you could easily, at today’s rates, pay 6% or 7% (or more) if you take out a personal loan to cover that cost. And so if you have, say, $20,000 in savings, you might want to dip into that instead, because you’ll still have a good amount of money left over after you make that withdrawal.

On the other hand, if you only have $5,000 in savings, you may not want to empty your bank account to cover your car repairs, leaving you vulnerable in the event of another unexpected expense. So, in this scenario, taking out a personal loan would be a reasonable thing to do.

Weigh Your Options Carefully

Sometimes it pays to get a personal loan even if you have money in the bank. If you do decide to get a personal loan, try shopping around with a few different lenders so you can compare their rates and closing costs. Doing a little research could make your personal loan more affordable at a time when rates are rising across the board.

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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Average HELOC and Home Equity Loan Rates for the week of October 13, 2022 https://rauchen-aufgeben.org/average-heloc-and-home-equity-loan-rates-for-the-week-of-october-13-2022/ Thu, 13 Oct 2022 14:51:00 +0000 https://rauchen-aufgeben.org/average-heloc-and-home-equity-loan-rates-for-the-week-of-october-13-2022/ Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. Key points to remember Home Equity Loan and Line of Credit (HELOC) […]]]>

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

Key points to remember

  • Home Equity Loan and Line of Credit (HELOC) rates rose slightly this week.
  • A recent survey found that 29% of homeowners are considering tapping into their home’s equity, noting that cash-in refinancing is no longer an option due to high mortgage rates.
  • Experts strongly recommend having a repayment plan in place before borrowing with a home equity loan or line of credit.

Sometimes no news is good news. While inflation remains consistently elevated, home equity loan and line of credit (HELOC) rates haven’t budged much this week, rising only a few points.

The average rate for a $30,000 HELOC is 7.34%, rising 7 basis points week over week. Home equity loan rates have also increased.

In a year in which mortgage rates have more than doubled, demand for home equity products is high.

According to a recent survey According to Point, a home equity investment platform, 29% of homeowners plan to tap into the equity in their property despite historically high interest rates. “Homeowners cite lack of other financing options,” as mortgage rates continue to hover around 7%.

Home equity loan and HELOC rates aren’t a perfect escape from mortgage rate increases — experts expect them to keep rising.

“I don’t expect [rates] increase at the same rate as over the past nine to twelve months. But I think they will go up. I hope they slow down, but we’ve seen a lot of ups and downs, so it looks like they still have room to increase,” says Kevin WilliamsCFP and founder of Full Life Financial Planning.

Here are the average home equity loan and HELOC rates as of October 12, 2022:

Type of loan Price for this week Last week’s price Difference
$30,000 HELOC 7.34% 7.27% +0.07
10-year $30,000 home equity loan 7.34% 7.27% +0.07
Home equity loan of $30,000 over 15 years 7.26% 7.18% +0.08

How these rates are calculated

These rates come from a survey conducted by Bankrate, which, like NextAdvisor, is owned by Red Ventures. Averages are determined from a survey of the top 10 banks in the 10 major US markets.

What are home equity loans and HELOCs?

With inflation at 8.2% Year-over-year in September, borrowers in need of cash are looking to leverage the equity in their home. Home equity loans and HELOCs are secured loans, which means you use the difference between the value of your home and what you owe on the mortgages as collateral.

Here is the difference between the two products:

With a HELOC, you have access to a revolving line of credit, much like a credit card. They can be a little riskier because they tend to have variable interest rates tied to Federal Reserve rate increases. “So in a rising interest rate environment, your HELOC rate will go up,” says Lv Persaud, CFP and CEO of Transition Planning & Guidance. Therefore, there are limits to how much you can withdraw at one time, but you will only pay interest on what has been borrowed.

When you borrow with a home equity loan, on the other hand, it is a one-time infusion of money that you repay over time. Home equity loans almost always have a fixed interest rate, which means your monthly payment won’t change when rates go up.

What should consumers know about home equity loans and HELOCs?

With mortgage rates what they are, many people are taking stock of their home’s equity, Persaud says. But remember, borrowing with home loan products comes with serious risks.

“People should always be aware of long-term borrowing and not see it as an easy way to access money without having planned to pay it,” Williams says. “Where the buy side is very easy, it’s the payments that tend to get people in trouble.”

How to get home equity financing

The home equity loan and HELOC application process is less complicated than that of a mortgage, making it an attractive option. However, it is important to shop around with different lenders to get the best rate.

Working with a lender you trust will help protect the asset you’re drawing on: your home. Not making your payments or understanding the cost of home equity loans and HELOCs is the last thing you want to happen. When accessing the equity in your home, experts insist that you read the fine print.

How to Use Home Equity

There’s no shortage of ways to use home equity, but the most common uses for home equity are home renovations and debt consolidation.

“It won’t be a one-size-fits-all solution,” says Persaud. “It really depends on your situation, but if you’re looking to consolidate debt, make sure you pay attention to how you got into debt in the first place,” rather than using your home equity as a balm .

A home equity loan or HELOC is not the key to reducing debt. Understanding your spending habits is. You run the risk of losing your home if you don’t change your spending habits and continue to take on more debt.

Pro tip

Using a home equity loan or HELOC for debt consolidation is risky if you don’t address the behaviors that got you into debt in the first place.

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