Credit Cards, Pay Down My Debt, Strategies to Save

RANKED: The 10 Best Options When You Need Cash Fast

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What happens when your emergency fund isn’t enough?

Long-term unemployment or a medical emergency can easily dry up a once-healthy rainy day fund, leaving consumers wondering where to turn next. According to a recent consumer expectations survey by the New York Federal Reserve, only one in three Americans say they wouldn’t be able come up with $2,000 within a month to cover an unexpected expense.

It’s during times of vulnerability like this that it’s easy to jump at seemingly quick and easy sources of cash, like payday lenders, credit cards, or even your 401(k).

Unfortunately, practically every potential source of cash that doesn’t come from your own piggy bank is going to cost you in some way.

But at this point, it’s all about choosing the lesser of all evils — when all you have are crummy options, how do you decide which one is the best of the worst?

We’ve ranked common sources of emergency short-term cash from best to worst, which can help you sort through your borrowing options when your savings dry up.

#1 Personal loan from family and friends

It’s an uncomfortable conversation to have with a loved one, but asking a friend or relative for a small loan can be a far better idea than turning to high-interest credit debt, or worse, payday lenders. Unless they’re offering, it doesn’t have to be an interest-free loan. Agree on an interest rate that seems fair and is lower than what you’d find through a bank or other lender.

Because you have a relationship already, you may have an easier time convincing them to lend you money versus a bank that would make the decision after doing a credit check and evaluating other financial information.

#2 (tie) Lender-backed personal loan

A personal loan can be a solid borrowing option if you need money in a pinch or you’re looking to consolidate other debt. The process to apply for a personal loan is similar to applying for a credit card or auto loan, in that the lender will run your credit and offer you a certain rate based on your creditworthiness.

If your credit is poor, that doesn’t necessarily mean you’re out of the running for a personal loan, but it will cost you in the form of much higher interest charges. For example, Lending Club offers loans with APRs from 5.99% to 35.85%, but it’s willing to lend to people with a credit score as low as 600.

Why choose a personal loan over a credit card? It really comes down to math. If you can find a personal loan that will cost less in the long term than using a credit card, then go for it. Use this personal loan calculator to estimate how much a loan will cost you over time. Then, run the same figures through this credit card payoff calculator.

#2 (tie) Credit cards

If your need for cash is truly short-term and you have enough income to pay it off quickly, then credit card debt can be a decent option. This option gets even better if you can qualify for a card with a 0% interest offer. The card will let you buy some time by allowing you to cover your essentials while you work on paying off the balance.

Because the debt is unsecured, unlike an auto title loan, you aren’t putting your assets at risk if you can’t pay.

#3 Home equity line of credit (HELOC)

You may be able to leverage the equity in your home to cover short-term emergency needs. A HELOC, or home equity line of credit, is a revolving credit line extended to a homeowner using your home as collateral. How much you can take out will depend on your home’s value, your remaining mortgage balance, your household income, and your credit score. A home equity line of credit may allow you to borrow the maximum amount, or only as much as you need. You will also be responsible for the costs of establishing and maintaining the home equity line of credit. You can learn more about these here.

You’ll choose the repayment schedule and can set that for less than 10 years or more than 20 years, but the entire balance must be paid in full by the end of the loan term. You’ll pay interest on what you borrow, but you may be able to deduct it from your income taxes. Keep in mind that if you are unemployed, it will be unlikely that you’ll be approved for a HELOC.

HELOC vs. Personal loans

Because home equity lines of credit are secured against the borrower’s home, if you default on your home equity line of credit, your lender can foreclose on your home. Personal loans, on the other hand, are usually unsecured, so, while failure to make your payments on time will adversely impact your credit, none of your personal property is at risk.

#4 A 401(k) loan

A 401(k) loan may be a good borrowing option if you’re in a financial pinch and are still employed. And it is a far better bet than turning to a payday lender or pawn shop for a loan. Because you’re in effect borrowing from yourself, any interest you pay back to the account is money put back in your retirement fund. You are allowed to borrow up to $50,000 or half of the total amount of money in your account, whichever is less. Typically, 401(k) loans have to be repaid within five years, and you’ll need to make payments at least quarterly.

But there are some cons to consider. If you get laid off or change jobs, a 401(k) loan immediately becomes due, and you’ll have 60 days to repay the full loan amount or put the loan funds into an IRA or other eligible retirement plan. If you don’t make the deadline, the loan becomes taxable income and the IRS will charge you another 10% early withdrawal penalty.

#5 Roth IRA or Roth 401(k) withdrawal

Generally, withdrawing funds from your retirement savings is a big no-no, because you’re going to miss out on any gains you might have enjoyed had you kept your money in the market. On top of that, there are fees and tax penalties, which we’ll cover in the next section.

But there is an exception: the Roth IRA or Roth 401(k).

Because funds contributed to Roth accounts are taxed right away, you won’t face any additional tax or penalties for making a withdrawal early. The caveat is that you can only withdraw from the principal amount you’ve contributed — you’re not allowed to withdraw any of the investment gains your contributions have earned without facing taxes and penalties.

However, it is still true that any money you take out is money that will not have a chance to grow over time, so you will still miss out on those earnings.

#6 Traditional 401(k) or IRA withdrawal

Experts typically recommend against borrowing from your 401(K) or IRA, but when you’re in desperate need of cash, it may be your best option.

Just understand the risks.

If you withdraw funds from a traditional retirement account before age 59 1/2 , the money will be taxed as income, and you’ll be charged a 10% early distribution penalty tax by the IRS. You may want to speak with a tax professional to estimate how much you’ll have to pay in taxes and take out more than you need to compensate for that loss. There’s no exception to the income tax, but there are a number of exceptions to the 10% penalty, such as qualified education expenses or separation from service — when you leave a company, whether by retirement, quitting, or getting fired or laid off — at 55 years or older.

When you take that money out, not only will you lose out on potential tax-deferred investment growth, but you’ll also lose a huge chunk of your retirement savings to taxes and penalties.

#7 Reverse mortgage

Homeowners 62 years old and older have another option for cash in a pinch: a reverse mortgage. With a reverse mortgage, your property’s equity is converted into (usually) tax-free payments for you. You can take the money up front as a line of credit, receive monthly payments for a fixed term or for as long as you live in the home, or choose a mix of the options. You keep the title, but the lender pays you each month to buy your home over time.

In most cases, you won’t be required to repay the loan as long as you’re still living in your home. You’ll also need to stay current on obligations like homeowners insurance, real estate taxes, and basic maintenance. If you don’t take care of those things, the lender may require you to pay back the loan.

The loan becomes due when you pass away or move out, and the home must be sold to repay the loan. If you pass away, and your spouse is still living in the home but didn’t sign the loan agreement, they’ll be allowed to continue living on the property, but won’t receive any more monthly payments. When they pass away or move out, the home will be sold to repay the loan.

The reverse mortgage may take a month or longer to set up, but once you get the paperwork set you can choose to take a line of credit, which could serve as an emergency fund, advises Columbus, Ohio-based certified financial planner Tom Davison.

He says the reverse mortgage’s advantages lie in the fact that it doesn’t need to be paid back until the homeowner permanently leaves the house, and it can be paid down whenever the homeowner is able. You can also borrow more money later if you need it, as the line of credit will grow at the loan’s borrowing rate.

Take care to look at the fine print before you sign. Under current federal law, you’ll only have three days, called a right of rescission, to cancel the loan. Reverse mortgage lenders also usually charge fees for origination, closing, and servicing over the life of the mortgage. Some even charge mortgage insurance premiums. Also, if you pass away before the loan is paid back, your heirs will have to handle it.

#8 Payday loan alternatives

While regulators work to reign in the payday lending industry, a new crop of payday loan alternatives is beginning to crop up.

Services like Activehours or DailyPay allow hourly wage earners to get paid early based on the hours they’ve already worked. Activehours allows you to withdraw up to $100 each day and $500 per pay period, while DailyPay, which caters to delivery workers, has no cap. DailyPay tracks the hours logged by workers and sends a single payment with the day’s earnings, minus a fee ranging from 99 cents to $1.49.

Another alternative could be the Build Card by FS Card. The product targets customers with subprime credit scores and offers an initial low, unsecured $500 credit limit to borrowers, which increases as they prove creditworthiness. The card will cost you a $72 annual membership fee, a one-time account setup fee of $53, plus $6 per month just to keep it in your wallet. It also comes with a steep interest rate — 29.9%. After all of the initial fees, your initial available limit should be about $375.

#9 Pawn shop loans

Pawn shop loan interest charges can get up to 36% in some states and there are other fees you’ll have to pay on top of the original loan.

Pawn shops get a shady rap, but they are a safer bet than payday lenders and auto title loans. Here’s why: Because you are putting up an item as collateral for a payday loan, the worst that can happen is that they take possession of the item if you skip out on payments. That can be devastating, especially if you’ve pawned something of sentimental value. But that’s the end of the ordeal — no debt collectors chasing you (payday loans) and no getting locked out of your car and losing your only mode of transportation (title loans).

#10 Payday loans and auto title loans

We have, of course, saved the worst of the worst options for last.

When you borrow with a payday loan but can’t afford to pay it back within the standard two-week time frame, it can quickly become a debt trap thanks to triple-digit interest rates. According to a recent study by the Pew Charitable Trusts, only 14% of payday loan borrowers can afford enough out of their monthly budgets to repay an average payday loan. Some payday lenders offer installment loans, which require a link to your bank account and gives them access to your funds if you don’t pay.

Some payday lenders today require access to a checking account, meaning they can dip in and take money from your bank account if you miss a payment. Also, your payday loan will be reflected on your credit report. So if things end badly, your credit will suffer as well. They have no collateral, so payday lenders will continue to hound you if you miss payments.

And, of course, auto title lenders require you to put up your wheels as collateral for a loan. And if you rely heavily on your car to get to and from work, having it repossessed by a title lender could hurt you financially in more ways than one.

The loans are usually short-term — less than 30 days — so this might not be a good option for you if you don’t foresee a quick turnaround time for repayment. If your household depends on your car for transportation, you may not want to try this option as there is a chance you could lose your car. If you don’t repay the loan, the lender can take your vehicle and sell it to cover the loan amount.

One more thing to watch out for is the advertised interest rate. Auto title lenders will often advertise the monthly rate, not the annualized one. So a 20% interest rate for the month is actually a 240% APR.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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Health

What Does Medicare Really Cover?

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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Approaching retirement and curious to know how you’ll handle health care expenses? Medicare will likely play a role in helping you mitigate those costs in your golden years.

The federal government offers Medicare as an insurance program for permanently disabled Americans and those 65 or older. The Social Security Administration is responsible for funding the program, and most of its funding comes from a Medicare payroll tax you might have noticed on your pay stubs (it ranges from 1.45% to 3.8%, depending on your employment status and income level).

But what does Medicare actually cover? Read on for a quick overview.

Who’s Eligible for Medicare Coverage?

The majority of working Americans become eligible for Medicare coverage when they turn 65. You may also qualify if you’re younger and have been disabled for at least two years and receive Social Security benefits, if you receive kidney dialysis treatment, or if you are in end-stage renal failure.

In most cases, you’re automatically enrolled into Medicare once you start receiving Social Security payments. You need to opt out if you don’t want the coverage.

John K. Ross IV, an elder law attorney and partner at Ross & Shoalmire with multiple offices in Texas says eligibility is straightforward because it’s simply based on age. But the program does become much more complicated when you start digging into the details of what specific benefits make the most sense for you.

“Retirees need to make decisions around whether they’ll choose the traditional Medicare program versus Medicare Advantage,” he says. He adds that disputing Medicare’s coverage refusals is something most participants in the program will deal with at some point.

How Do You Enroll in Medicare Coverage?

You’ll be automatically enrolled into Medicare if you:

  • Already receive Social Security benefits
  • Are under 65 and are disabled, or have ALS
  • Receive benefits from the Railroad Retirement Board

But you need to sign up for Medicare if:

  • You don’t get Social Security benefits (which could be the case if you’re 65 or older but still working)
  • You have end-stage renal disease

If you need to manually apply, you can do so online here. You also have the option of going to your local Social Security office or calling to apply at 1-800-772-1213.

The Basics of What Medicare Really Covers (and What It Doesn’t)

The main part of Medicare is broken down into two parts: A and B.

What Medicare Part A Covers

It covers several broad categories of hospital care and services you receive while hospitalized.

That includes:

  • Hospital care limited to 90 days each benefit period and a lifetime reserve of 60 additional days for those who exhausted the initial 90 days coverage
  • Skilled nursing care
  • Home health services
  • Care in hospice for those with a life expectancy of less than six months

You can receive this coverage for free as long as you paid at least 10 years into Social Security.

“If you’re not eligible for free Part A coverage, the cost in 2017 is $413 per month if you paid into Medicare for less than 30 quarters while working,” says Desmond Henry, CFP® and founder of Afflora Financial Life Planning. “It costs $227 per month if you paid in between 30 and 39 quarters.”

What Medicare Part B Covers

Medicare Part B covers doctor’s visits and outpatient care. This can include medical equipment and physical therapy. It may cover some preventive care services, too, like screening for certain diseases including cancer and glaucoma.

Here’s a full list of what Part B provides for:

  • All outpatient services
  • Doctor’s visits and home health visits that don’t require a hospital stay
  • Medical equipment
  • Clinical research
  • Ambulance services
  • Durable medical equipment
  • Mental health and preventative services
  • Second option prior to surgery
  • Limited outpatient prescription drugs and drugs that cannot be self administered
  • Diagnostic tests

The costs for Part B are more complicated than Part A. “The standard Part B premium for 2017 is $134 per month, but this may be higher based upon your income level,” says Henry.

And as important as it is to understand what Medicare really covers, it’s also essential to know what the program does not offer to those on the plan.

“Medicaid does not pay for long-term care such as in-home sitters services, and assisted living and nursing-home costs,” says Ross.

Henry goes into even greater detail. “Medicare won’t pick up the tab for hearing aids, eye exams and glasses, and dental care,” he says.

Henry explains other services like cosmetic surgery and alternative medicine get excluded from coverage, too. “People don’t typically realize that Medicare generally does not cover medical expenses when you are outside the United States or territories, either,” he adds.

What Medicare Part C Covers

Medicare coverage gets more complicated when you look at additional parts of the program. There’s also Medicare Part C, which is also known as Medicare Advantage Plans.

Whereas Medicare is a program offered by the federal government, private insurance companies offer coverage with Medicare Advantage Plans (which the government still regulates).

Medicare Advantage must provide services that are comparable or “equivalent” to what’s covered by Medicare Parts A and B. Some Part C plans offer more services not included in traditional Medicare, including prescription drug coverage.

That might help you get the coverage you need if Medicare Parts A and B aren’t sufficient for you — but that also means there’s a huge variation between all the Medicare Part C plans available, both in terms of services provided as well as the costs of the plans.

Prices also depend on the state you live in, the provider you choose, and whether you choose an HMO or PPO plan. eHealthInsurance has a tool that can help you compare a variety of Medicare Advantage plans to see which one may work best for you.

Don’t Forget About Medicare Part D

Parts A and B of Medicare provide for both hospital care as well as outpatient services and doctor’s visits — but it doesn’t cover prescription drugs. That’s where Medicare Part D comes in.

Part D plans are also offered by private insurers and are separate policies from Medicare Parts A and B. Just like Part C coverage, Part D plans vary widely in what they cover and their costs.

What’s the Future for Medicare Under the Trump Administration?

The White House and Republicans in Congress have promised to repeal the Affordable Care Act and are in the process of proposing radical changes to the current health care system.

But most of the proposed changes affect Medicaid, not Medicare. There are proposals that would change the “funding mechanism” for the Medicare program, but beneficiaries are unlikely to feel those changes directly.

And there’s disagreement between the Trump administration and House Republicans over how Medicare should be handled moving forward. Trump has merely said he wouldn’t cut the program.

But Speaker Paul Ryan has talked about making the following changes:

  • Introducing exchanges to Medicare, allowing private insurers to compete with the traditional, government-run program.
  • Providing subsidies to help people pay their premiums, based on income.
  • Requiring insurers to offer coverage to all to ensure everyone in Medicare retained access to benefits.

Again, this is all just talk for now. The House’s initial bill to change the Affordable Care Act failed to pass, and any suggested changes are a long way from implementation.

Kali Hawlk
Kali Hawlk |

Kali Hawlk is a writer at MagnifyMoney. You can email Kali at Kali@magnifymoney.com

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Strategies to Save

9 Ways Save Money on Your Summer Reading List

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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Summer is the perfect season to tear through a stack of books. You might already be able to picture yourself sunbathing on a beach with a drink in one hand and a book in the other. Books are great but, like summer vacation, they aren’t free.

Books are already a relatively inexpensive form of entertainment, but compared to a $15 movie ticket or $11.99 a month streaming subscription, spending around $20 on a book can be a hard sell. Luckily for you, and booklovers everywhere — there are plenty of ways you can save money on books.

Use these tips to save money as you cobble together your summer reading list.

Host a book swap

 

Get all of your favorite bookworms together with some cheese and crackers for a book swap at your place. Ask everyone to bring a few books that they wouldn’t mind parting with, and set them all out on a table. As you mix and mingle over food and drinks, you and your guests can browse the collection for new additions to your libraries. The best part about this party is you’ll have a great pool of candidates to ask for recommendations. When all’s said and done, you’ll have a number of new-to-you books to read, for next to nothing.

Read the classics

It takes 70 years after the author’s death for a book to enter the public domain, so many classic texts can be shared and copied for free. Check sites like The Public Domain Review and Project Gutenberg to get free copies of classic titles. Gutenberg even has user-recorded audio versions of books.

Use a subscription service

Subscription services can be a great way to save money on books after the free trial ends. Depending on your price level and how much you read, paying for a monthly subscription could end up significantly cheaper than buying a book each time you’d like to read one.

For example, as an Audible subscriber, you’ll pay $14.95 for access to the library, plus get one book credit per month, which you can use to buy any book. If you’re subscribed to Amazon’s Kindle Unlimited service for $9.99 a month, you can read an unlimited number of books in a month, but only keep 10 books on your device at a time. As another example, an $8.99 Scribd subscription gives credits for three books and one audiobook each month and unlimited access to magazines and documents.

If you’re a fan of subscription boxes, you can try a subscription box service like OwlCrate and or a number of book subscription boxes available on Quarterly. The prices and packages will range widely depending on your taste, and some boxes even add in goodies for booklovers. OwlCrate’s subscription boxes, for example, start at $29.99 and come with one new hardcover Young Adult novel and three to five items inside each monthly box. In contrast, Quarterly’s Literary Box sends once every three months and costs $50 per box, but it comes with at least three books hand-picked by the box’s featured author, and a handwritten note from that author.

Get a free advanced review copy

If you’re a particularly voracious reader, and don’t mind sharing your opinion, you may be interested in getting advance copies of books in exchange for reviews online. A number of book-related sites like Goodreads and LibraryThing host early review programs. Publishers do too, but you’ll need some insider knowledge. Sign up to receive newsletters from publishers like HarperCollins and Penguin Random House for information on how to get advanced copies.

If you’re a book blogger, you may want to consider signing up for a blog tour — when authors go from blog to blog to promote their books or organize a mass posting by several book bloggers about the upcoming title — with a company like Blogging for Books or TLC Book Tours. Finally, if you’re interested in making a little money for your reviews, you can sign up with a publishing house or use websites like Online Book Club or Nothing Binding. You probably won’t make enough to quit your day job, but at least you’ll be paid to do something you enjoy. For example, Online Book Club’s site says you won’t be paid for your first review, but after that, you’ll be paid $5 to $60 per review.

The main downside to doing this is that you may not enjoy all of the books sent to you to read.

Share a Kindle library

If you use Amazon Kindle, you can share Kindle books, apps, games, and audiobooks with friends or family members pretty easily, and you don’t have to be an Amazon Prime member to use this feature. If you want to share with friends, you can lend a book from your Kindle library to theirs for up to 14 days. Just go to your Kindle Store and select the title you want to loan out. Then enter the borrower’s email address and hit send. Beware: They have to delete the book from their Kindle Library for you to get it back. Also keep in mind a Kindle book can only be loaned once, so if anyone else asks you to borrow the title, they’re out of luck.

If you want to get your entire family reading, try a Family Library. It requires at least two adults with Amazon accounts to join an Amazon Household, you both can then add child accounts. You and the other adult will see all of the books in the Library, while the children will only be able to see “shared” books. You can also share Kindle books borrowed from a public library and those loaned to you via personal lending.

Use the 72-hour rule

Journalist and money expert Carl Richards came up with the “72-hour rule” to hack his bad habit of buying every book he wanted on Amazon, ending up with a pile of unread titles.

Now, Richards says he lets a book sit in his shopping cart for at least 72 hours before hitting “buy.” The trick helps him save money on books because he only buys books he’ll actually read. You can apply a similar rule to your purchasing process to save on books yourself. The 72-hour time frame isn’t set in stone. You can set the wait for as long as you need, as long as it gives you enough buffer time to think about your purchase before you buy.

If you can empathize with Richards’ problem in other areas of your budget, you may want to check out what we wrote about how you can apply the 72-hour rule to your spending habits here.

Buy used books

Used books are a great way to save on popular titles. Try visiting used bookstores or online book retailers like Amazon, eBay, thriftbooks.com, or AbeBooks.com for used reads. They’re typically cheaper than brand new ones, but hold the same great content. The downside to this savings strategy is you’ll probably have to wait to get the physical book shipped to you before you can read it. In that case, always look for free shipping to save.

Unfortunately, this strategy may not work for you if you’re strictly a digital reader.

Get a book for free online

You could get several books for free this summer just by knowing your way around the web.

As of this writing, signing up for a subscription service like Audible or Scribd will usually earn you a free book or at least a couple of weeks on a free trial. These are great options if your budget is too tight to afford a subscription and you can knock out a book in the two weeks before the free trial ends. If you’re an Amazon Prime member, you can get one free book a month from the Kindle Owner’s Lending Library.

Visit a public library

You’re probably well aware of this resource since it’s funded with your tax dollars, but here’s a quick reminder to support your local library. You can visit your local library to borrow as many books as you want for free. All you need to borrow books is a library card, which is also free. If you don’t know where your local library is located, you can consult Google or check out the database on PublicLibraries.com.

You might not even need to leave your house to borrow a book from your local library. If your library offers e-book lending, you could log in to your account on their site and borrow a book for free from the comfort of your couch. Search OverDrive.com or the Libby app (by OverDrive) on any device to find and borrow e-books available for lending near you. You’ll need a student ID or library card number to borrow, then you can download the e-books to read offline on all of your devices, including the Kindle or Kindle app, Nook, or another e-reader for the lending period.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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Life Events, Strategies to Save

Here’s How to Withdraw Your Savings When You Finally Retire

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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There isn’t a shortage of material on how to build up your retirement nest egg. But once you get it, and you’re ready to retire, how do you actually spend it? Withdrawing from your retirement account (also referred to as “taking a distribution”) isn’t as simple as withdrawing from an ATM. In fact, there is an entire strategy as to which account you should take from first, when you should file for Social Security, and how much to withdraw each year.

The main objective of retirement is to have your money outlive you; and making your money last throughout retirement is harder now than it used to be. This can be attributed to three big factors: people are living longer, the number of pension plans are declining, and the costs of living and health care are rising. If your retirement savings isn’t large enough, you could be forced to go back to work, assuming you’re physically capable to do so, or rely on family.

Also, taking from the wrong account could result in losing some of your money to taxes; withdrawing too much can shorten your money’s overall lifespan. Here are some key points you’ll want to know.

Key Rules to Follow

Age matters

Generally speaking, you cannot start withdrawing from pre-tax retirement accounts like a 401(k), 403(b), or traditional IRA until age 59½ without a penalty. This does not apply to Roth accounts, however. You are allowed to withdraw any principal funds from your Roth accounts without penalty because you paid taxes up front on those funds — you just can’t withdraw any of the gains you’ve earned over the years. To keep everything simple, we’ll assume that you’re already over 59½ and all of your retirement savings are in tax advantaged accounts like a 401(k).

Don’t cash out everything at once

Let’s go back to our original assumption that you’re over 59½ and ready to retire. One of the biggest mistakes would be to liquidate all of your account into a lump sum. This causes two problems.

First of all, taxes. Taking large lump-sum distributions could leave you with a very large tax bill because whatever you withdraw will be treated as additional income. The second problem is that once you liquidate your investments, that means they are no longer growing. It may be a mistake to become too conservative with your investments in retirement, because many of us will live well into our 80s. With potentially 20 years ahead of you, you’ll want your money to keep growing, keep beating inflation, and give you the best shot at not outliving your funds.

The solution: periodic distributions

It’s recommended that retirees take periodic distributions, usually on a monthly basis. This allows you to take a portion of your money out to spend while letting the remainder stay in the market to grow. Figuring out how much you’ll need can be tricky. Many retirees stick to the 4% rule, which seeks to provide steady income while preserving the principal. If you had $1 million saved, you could withdraw $40,000 each year. A person with a $1.25 million retirement savings withdrawing 4% could receive $50,000 per year.

It is considered a best practice to withdraw your investments proportionately, also known as pro rata. To understand what that means, say you have a retirement account with four investments: Stock A, Stock B, Stock C, and Stock D, and each of them makes up 25% of your portfolio, or $250,000 each, for a total of $1 million.

If you follow the 4% rule, you need to withdraw $40,000. It could be a mistake to take the full $40,000 from one single stock as this would throw off the allocation. Pro rata means that you would take $10,000 from each stock, which keeps your portfolio balanced.

Depending on how many investments you hold, calculating a pro rata distribution can become difficult. Your best bet is to consult a financial planner in your area or call your investment firm’s customer service line.

Don’t forget to factor in taxes

Remember, if you’re withdrawing from a pre-tax account, the amount you take out and the amount you actually receive will be different. These funds will be taxed as regular income in your top tax bracket. For example: If you need $2,000 per month to meet your needs, you may need to take out an amount closer to $2,500 to leave room to pay taxes.

Tap into non-retirement savings first

It’s common to have more than one retirement account. To avoid taking a tax hit, many financial experts recommend tapping into non-retirement savings first. “Very generally, and depending on your tax bracket, you should typically take money out of your non-retirement accounts first to keep your taxable income lower,” says Neal Frankle, CFP and blogger at Wealth Pilgrim.

This way, you can give your retirement funds an even longer time to grow before you’re ready (or forced by the required minimum distribution) to start making withdrawals.

Of course, this is an oversimplified strategy and won’t fit every case. Again, it’s wise to seek professional help, at least in the last few years before you retire, to map out a game plan. “This takes a little time and may cost a bit, but it is by far the best investment a pre-retiree can make in my experience,” says Frankle.

Delay Social Security withdrawals as long as possible

We’ve saved the best (worst?) for last. If trying to decide whether to dip into your savings account or 401(k) first was complicated, it doesn’t get much trickier than figuring out the right time to start tapping your Social Security.

In an ideal world, you would ignore your Social Security until at least age 70. That’s when you can capture your maximum benefit. The longer you wait to take Social Security, the more you will receive. Sure, you can start withdrawing funds at age 62, but you’ll only get 75% of your potential earnings.

To get 100% of your potential benefit (for those born between 1943 and 1954), you’ll have to wait till age 66.

But the deal gets even sweeter if you can hold off till 70, when you’ll get your full benefit plus another 32%.

Of course, that’s an ideal world.

In reality, most people start tapping their Social Security funds at age 62.

To visualize the benefit of delaying Social Security for as long as possible, check out this chart from Merrill Edge:

Planning Your Social Security Strategy

There are a lot of complexities attached to Social Security and when to start taking benefits; some of which include your tax bracket, life expectancy, marital status, and how much you’ve saved. The easiest way to help sort this out is to decide the amount of money you could live on each year. For some, this amount is 75%-80% of their pre-retirement income. Someone living on $60,000 might be comfortable with having about $48,000 per year in retirement. It is up to you and your financial planner to decide what combination of options can get you to that number.

But here are some things to consider:

If you’re married

The bulk of the complexities around Social Security are with married couples. When you tally up the options, married couples have dozens of strategies to choose from compared to a handful for singles.

The two main concepts you’ll want to be familiar with are the spousal benefit and the survivorship benefit.

The spousal benefit can allow a spouse to collect up to 50% of their spouse’s benefit based on the spouse’s full retirement age. This could allow for the higher earning spouse to wait to file later to receive the maximum benefit. You can look up your full retirement age here.

For example, Jack and Jill are married, and both are 66 years old. Jill earns significantly more than Jack, and her full retirement age for Social Security is 66. Jack could file Social Security on his own age and earnings history or for the spousal benefit. Since 50% of Jill’s benefit is higher than what he would have gotten on his own, he can file for the spousal benefit now, and Jill can file at age 70. This could help them maximize their total benefit as a couple.

The survivorship benefit is much more straightforward; it allows the surviving spouse to collect a portion of a deceased spouse’s benefits. You can learn more here.

If you’re single

Figuring out Social Security if you’re single can be a lot simpler. You could begin taking Social Security at 62 for a reduced benefit or wait until age 70 to get the highest possible payout. Those who are single due to death or divorce may have a few more options.

In the case of divorce, if you were married for at least 10 years and you have not remarried, you may be eligible to claim a spousal benefit. This is also the case for an ex-spouse who is deceased.

How much do you have saved?

This is perhaps the biggest component: the longer you wait to file for Social Security, the more you could earn. If your nest egg can cover the majority of your retirement lifestyle and your health is good, you may be better off waiting until later to start Social Security.

What’s a Required Minimum Distribution?

There’s also the pesky required minimum distribution (RMD) to consider. When it comes to any retirement funds that were set aside, tax deferred during your working years, the RMD rule makes sure that workers eventually withdraw those funds. Why? Because the IRS isn’t going to leave billions of tax dollars on the table forever.

In a nutshell, the RMD is the amount of money you have to begin withdrawing from your tax-deferred retirement accounts by age 70½. There’s a whole complex way to figure out what your RMD is exactly, but the truth is that you probably won’t have to worry about it.

In fact, most retirees who are living off of their retirement funds meet the RMD by default. Someone with $100,000 in a traditional IRA on December 31 of last year would have to withdraw about $3,780 if they turn 71 this year. If you’re close to 70½ and want to estimate your RMD, you can use this link.

Not taking your RMD, or less than what is required, from a traditional IRA or 401(k) will cost you. The IRS will levy a 50% penalty on the difference between the amount you withdrew and the amount you should have withdrawn.

What if you’ve got more than one retirement account?

If you have multiple traditional IRAs, your RMD will be calculated using the combined value of each account. This allows you to choose which IRA to withdraw from, or to divide the RMD between the accounts.

What if you’re still working in your 70s?

If you are still working beyond 70½, you do not have to take an RMD from your 401(k) until the year you retire. You would still have to take it from your traditional IRA whether you’re working or not. If you are not working and you still have old 401(k)s at different employers, you would be forced to calculate and withdraw the RMD amount from each account separately.

What about Roth retirement accounts?

The RMD rule does not apply to Roth accounts. “Your money grows tax-free in the account and will pass to heirs without any tax obligations,” says Joseph Hogue, a Chartered Financial Analyst. Roth accounts can be a great tool when you’re withdrawing because you have much more control of what you pay in income taxes while in retirement.

Kevin Matthews II
Kevin Matthews II |

Kevin Matthews II is a writer at MagnifyMoney. You can email Kevin here

TAGS:

Consumer Watchdog, Featured, News

How the “Financial Choice Act” Could Impact Your Wallet

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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A plan to repeal major aspects of Dodd-Frank — legislation enacted to regulate the types of lender behavior that contributed to the 2008 economic crisis — crossed its first major hurdle last week when the U.S. House passed the Financial Choice Act.

The bill still has to pass the U.S. Senate and be signed by the president before becoming a law. However, if it does, significant changes would be made to some regulations that might require consumers to pay more attention to their financial decisions.

“[The Financial Choice Act] stands for economic growth for all, but bank bailouts for none. We will end bank bailouts once and for all. We will replace bailouts with bankruptcy,” Rep. Jeb Hensarling (R-Texas), House Financial Services Committee chairman, said in a press release. “We will replace economic stagnation with a growing, healthy economy.”

What’s at stake with the Financial Choice Act, and how does it impact your finances? We’ll explore these questions in this post.

What did the Dodd-Frank Act do, anyway?

Bailouts: After it was implemented in 2010 by President Barack Obama, one of the law’s main pillars was enacting the “Orderly Liquidation Authority” to use taxpayer dollars to bail out financial institutions that were failing but considered “too big to fail” — meaning their collapse would significantly hurt the economy. In addition, Dodd-Frank created a fund for the FDIC to use instead of taxpayer dollars for any future bailouts.

Consumer watchdog: Dodd-Frank also created the Consumer Financial Protection Bureau, an independent government agency that focuses on protecting “consumers from unfair, deceptive, or abusive practices and take action against companies that break the law.”

In one of its most high profile cases to date, the CFPB in 2016 fined Wells Fargo $100 million for allegedly opening accounts customers did not ask for.

The CFPB’s actions against predatory practices in a number of industries, including payday lending, prepaid debit cards, and mortgage lenders, among others, have won the agency many fans among consumer advocates.

“In fewer than six years, [the CFPB has] returned $12 million to over 29 million Americans, not just harmed by predatory lenders or fly-by-night debt collectors, but some of the biggest banks in the country,” says Ed Mierzwinski, director of the consumer program for the U.S. Public Interest Research Group, a Washington, D.C.-based nonprofit that advocates for consumers.

And how would the Financial Choice Act change Dodd-Frank?

No more bailouts: The Financial Choice Act would replace Dodd-Frank’s Orderly Liquidation Authority with a new bankruptcy code. So financial institutions would have a path to declare bankruptcy in lieu of shutting down completely.

Fewer regulations for banks: The act will provide community banks with “almost two dozen” regulatory relief bills that will lessen the number of rules small banks need to comply with, making it easier for them to operate.

A weaker CFPB: It would convert the CFPB into the Consumer Law Enforcement Agency (CLEA) and make it part of the executive branch. The Financial Choice Act also gives the president the ability to fire the head of the newly created CLEA at any time, for any reason, and gives Congress control over it and its budget. These changes will take away much of the power the CFPB holds to monitor the marketplace and pursue any unfair practices.

“It not only took the bullets out of [the CFPB’s] guns, it took their guns away,” Mierzwinski says.

Specifically, he says the CFPB would no longer be able to go after high-cost, small-dollar credit institutions, such as payday lenders and auto title lenders.

However, some experts see benefits from taking the teeth out of the CFPB.

“I personally think that’s a good thing because I think the way that the CFPB is structured is fundamentally flawed,” says Robert Berger, a retired lawyer who now runs doughroller.net, a personal finance blog. “You basically have one person with very little meaningful oversight that can have a huge impact on the regulations of the financial industry.”

The bill also would roll back the U.S. Department of Labor’s new fiduciary rule, which isn’t part of Dodd-Frank, but requires retirement financial advisers to act in their clients’ best interests. It went into partial effect on June 9.

What does this mean to consumers?

If the Financial Choice Act becomes law, opponents say it could mean that consumers will have to be even more careful with their financial choices and who they trust as a financial adviser because there will be less government oversight.

“If you’re a consumer, you’re going to have to watch your wallet even if you have a zippered pocket with a chain on your wallet,” Mierzwinski says.

If the bill passes the Senate, it could still face some hurdles. Any changes to Dodd-Frank regulations would need to be approved by the heads of the Federal Reserve System and Federal Deposit Insurance Corp. and the Comptroller of the Currency.

Jana Lynn French
Jana Lynn French |

Jana Lynn French is a writer at MagnifyMoney. You can email Jana Lynn here

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Life Events

Guide to Liability Insurance: What It is and Why You Need It

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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When it comes to protecting yourself financially, things like an emergency fund, health insurance, and life insurance are typically some of the first topics that come up. And rightfully so, given that each is an important part of a secure financial foundation.

Liability insurance is a protection that often gets overlooked. If you have an auto, homeowners, or renters insurance policy, then you likely already have some level of liability insurance in place. But it may not be enough to fully protect you, and in this guide you’ll learn how to make sure you have the right coverage for your needs.

What Is Liability Insurance and Why Is It Important?

Liability insurance protects you financially in case you accidentally injure someone or damage their property. Common situations include:

  • You’re at fault in a car accident, and the other party experiences neck pain as a result.
  • Someone slips and falls in your driveway and breaks their tailbone.
  • You accidentally back your car into someone else’s mailbox.
  • Your dog bites someone while you’re out for a walk.

Each of those situations are accidents in which someone else experiences either an injury or property damage that will cost them money to fix. And in each case, they could legally hold you responsible for paying those bills.

That’s where liability insurance kicks in. Instead of having to spend your own money, your insurance company would cover the bill as long as it fell within the limits of your coverage. Any costs beyond those limits would be yours to bear.

And truth is that some of these situations could be very expensive. Imagine, for example, a car accident in which multiple other passengers are seriously injured.

That kind of situation isn’t fun to think about. But it could happen, and at the very least you can protect yourself from the financial impact. Otherwise, you could be on the hook for:

  1. Medical bills.
  2. Fixing or replacing the other person’s property.
  3. Lost income if the other person is forced to miss work.
  4. Legal bills for both you and the other person if there is any disagreement about who is at fault.

That’s why liability insurance is so valuable. It ensures that even if the financial impact of an accident is high — such as someone being forced to miss work for an extended period of time — you won’t be on the hook for the cost.

Who Needs Liability Insurance?

Just about everyone should have some level of liability insurance, but the truth is that the more money you have, the more likely you are to need it.

The simple reason is that if you have either a sizable income or a significant amount of savings and investments, there’s more for the other party to go after. They know that you can afford it, so they’re more likely to push for getting it.

On the the other hand, if you don’t have much savings and you don’t earn much money, there’s less potential for the other party to get a financial benefit, and they may therefore be less likely to pursue it.

Still, you can be held financially liable for your actions no matter how much money you have, and in certain situations you can even be required to pay a part of your income to the injured party. Plus, with liability insurance in place, you get the benefit of an insurance company handling all the procedural aspects of dealing with a claim, which can make the entire process a lot easier.

So again, just about everyone should have some base level of liability insurance. But if you’re a high-earner, and especially if you have significant assets, you’ll probably want to make sure you have at least enough coverage to protect your entire net worth.

Four Major Types of Liability Insurance

There are four major types of liability insurance policies, two of which are simply part of insurance policies you may already have in place.

1. Auto Insurance

You typically face the greatest risk of financial liability when driving. The simple reality is that driving is risky, accidents are common, and even careful drivers make mistakes that could leave them financially liable for fixing someone’s car and paying their medical bills.

Most states require you to have a minimum amount of liability coverage as part of your auto insurance policy, typically covering the following things:

  1. Property damage
  2. Per person bodily injury
  3. Per accident bodily injury (for when more than one person is injured)

Some states also require you to have uninsured motorist bodily injury coverage, which actually covers you and other passengers in your car if you’re in an accident and the other driver is at fault, but either doesn’t have liability coverage or doesn’t have enough to satisfy your claim.

For example, the minimum coverage requirements in New York currently look like this:

  • $10,000 for property damage
  • $25,000 bodily injury and $50,000 for death per person
  • $50,000 bodily injury and $100,000 for death per accident
  • $25,000 uninsured motorist coverage per person
  • $50,000 uninsured motorist coverage per accident

The minimum required coverage is often enough to cover the most common scenarios, but typically doesn’t provide sufficient protection in the case of major accidents. When you consider the medical bills and potential lost income in an accident involving multiple people, the total cost could be much higher than even the amounts listed above.

And given that the main value of your coverage is the protection against financially ruinous outcomes, it often makes sense to increase your coverage above the minimum. Most auto insurers allow you to get up to $250,000 of coverage per person and $500,000 per accident.

Unfortunately, it can be fairly expensive to secure liability coverage through your auto insurance policy, ranging anywhere from a couple of hundred dollars per year to $1,000 or more at the upper limits. The cost depends on the amount of coverage you want and on your driving history, so a clean record could lead to lower premiums.

2. Homeowners or Renters Insurance

Like auto insurance, liability coverage is a standard part of both homeowners and renters insurance policies, although it’s not always required. And the good news is that it usually provides broad coverage at a relatively low cost.

First, it covers any accidents that happen while someone is on your property, from falling down the stairs to tripping over your toddler’s walker. If someone is injured while at your house, your liability insurance has you covered.

Second, it covers non-auto-related accidents that happen away from your home as well. If your dog bites someone while you’re out for a walk, you accidentally bump into your neighbor’s ladder while they’re cleaning the gutters, or your child damages someone’s property, your liability insurance has you covered.

And all of that coverage comes at a relatively low cost too, with even several hundred thousand dollars of coverage typically only costing a couple of hundred dollars per year.

Most homeowners and renters insurance policies start with $100,000 of liability coverage, though you can typically increase it to $300,000.

3. Umbrella Liability Insurance

An umbrella insurance policy provides additional liability coverage above the limits in your auto and homeowners or renters insurance policies. And you typically have to do two things before you can get a policy:

  1. Secure your auto insurance and homeowners or renters insurance with the same company you’re getting your umbrella policy with. Not all insurers require this, but most do.
  2. Increase the liability coverage in both your auto insurance and homeowners or renters policies to a minimum level set by your umbrella policy insurer, which is often $300,000 for homeowners or renters insurance and $250,000/$500,000 for auto insurance. This is to make sure that your umbrella coverage only covers situations in which there are extraordinarily significant damages.

Because of that second point, umbrella liability insurance is typically more than most people need. Unless your income is high enough or you have more than $500,000 in net worth, it’s probably not worth considering this additional coverage. Your auto and homeowners or renters policies are likely enough.

But if you have significant income or assets to protect, an umbrella policy can provide substantial coverage at a small cost. Coverage typically starts at $1 million, and according to the Insurance Information Institute typically costs $150-$300 per year for the first $1 million in coverage and increases by $50-$75 per year for every additional $1 million in coverage.

4. Business Liability Insurance

If you run a business, even if it’s a small side hustle, the insurance policies listed above will not cover those business activities. You will need to get a separate policy.

The tricky part here is that liability coverage varies from profession to profession, so it’s not as easy as going out and getting a generic liability insurance policy like it is on the personal side of things.

Business liability insurance is beyond the scope of this guide, but if you’re in a business where you could be held financially liable for your mistakes, getting the right liability coverage in place could be well worth your time and money.

Business liability insurance can vary so much profession to profession. For example, doctors have a completely different type of liability insurance than lawyers. And even within those professions, it will vary by specialty. So it’s pretty difficult to give a price range or even offer general resources.

Three Ways to Get Liability Insurance

When it comes to actually getting liability insurance in place, you have three main options

1. Your Current Auto and Homeowners or Renters Insurance Policies

If you already have auto insurance in place, then you already have some amount of liability insurance. You just need to check your policy to see how much you have, and ask your insurer about the cost of increasing your coverage if you’d like more.

The same is true if you have homeowners or renters insurance. Check what you have in place now, and, if necessary, ask your insurer what the cost would be to either add liability coverage or increase it.

If you’re renting and you don’t already have renters insurance, you can check with your auto insurance company about adding it. You can also refer to this guide to help you find a policy that meets your needs: Guide to Renters Insurance: When You Need it and When You Don’t.

2. Shop Around

While sticking with your current insurance company is the easiest way to secure liability insurance, it may not be the most cost-effective. You could save a lot of money by shopping around, especially if you’d like to add an umbrella policy, which would likely require you to have all three insurance policies with the same company.

Here’s a process you can follow, borrowed from the renters insurance guide mentioned above:

  1. Google “auto insurance” plus your city/state. Almost every company that offers auto insurance also offers homeowners, renters, and umbrella insurance, so this will give you a solid list to start with.
  2. Get a phone number for each of the major insurers providing coverage in your state.
  3. Call each insurance company directly and ask for quotes for both auto insurance and either homeowners or renters insurance, making sure to include the amount of liability coverage you’d like to have for each.
  4. If you are looking for umbrella liability coverage, make sure to ask for a quote on that policy as well.
  5. If you have any possessions that are particularly valuable, such as jewelry or artwork, ask how much it would cost to get additional coverage for those possessions in your homeowners or renters policy.
  6. Make sure to ask if they offer a multi-policy discount and, if so, to get the premiums quoted with that discount applied.
  7. If there are any particular threats in your region, such as flooding or earthquakes, ask about their coverage of those specific threats.
  8. Compare the coverage and cost from each insurance company, including your current insurer. If you can get a better deal elsewhere, it should be relatively easy to switch.

3. Independent Insurance Agent

A good independent insurance agent will be able to help you evaluate your need for coverage and find that coverage at the best possible price given your needs and situation.

To find one in your area, you can Google “independent property and casualty insurance agents” + your city/state.

It won’t cost you any extra to work with an agent, but you should be aware that some agents may try to direct you to higher levels of coverage than you need, simply because it provides them a better commission. You should interview a few to make sure you find someone you trust.

The Forgotten Insurance

Unless you’re running a high-risk business, liability insurance probably doesn’t need to be at the top of your list of financial priorities.

But it provides valuable protection, and it’s something that shouldn’t be forgotten. It’s typically easy to add or increase the coverage you have through your existing policies, and doing so ensures that no accident will put you in a situation where you can’t reach your other financial goals.

Matt Becker
Matt Becker |

Matt Becker is a writer at MagnifyMoney. You can email Matt at matt@magnifymoney.com

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Reviews, Student Loan ReFi

Laurel Road (formerly DRB) Student Loan Refinance Review

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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Students throwing graduation hats

Updated June 15, 2017

Laurel Road (formerly know as DRB – rebranded on June 15) is a division of Darien Rowayton Bank that offers a highly competitive student loan refinance product. In addition to a competitive interest rate, Laurel Road offers some decent loan perks that sets it apart from others.

According to Laurel Road, someone who refinances $100,000 has the potential to save up to $15,000 over the life of a 10 year loan. And in special circumstances like disability or financial hardship, the bank might completely forgive loans or allow for partial payments. Read on for the ins and outs of a Laurel Road loan to see if it’s the right refinance for you.

Loan Details

Laurel Road will refinance up to 100% of Federal, private and Parent PLUS loans. The minimum amount you can refinance is $5,000 and loan terms are available for 5, 7, 10, 15 and 20 years.

Fixed interest rates are available from 4.20% to 7.20% APR. Starting variable interest rates are available from 3.63% to 6.29% APR. If you choose a variable interest loan, the rate will fluctuate throughout the loan term depending on market conditions. Only consider variable interest if you can pay off your student loan refinance quickly. Otherwise, you might be taking too much interest rate risk since your interest has the potential to increase over time.

The interest rates above include a 0.25% discount for using auto-pay. You just need to set up automatic payment from any checking account in order to get the auto-pay discount.

[Look into refinance options on our table here.]

Loan Qualifications

You must be a working U.S citizen or permanent resident with a degree from an accredited U.S. school program to be eligible. In terms of creditworthiness, Laurel Road does not disclose its underwriting requirements. The requirements can change over time. However, Laurel Road is targeting people with good credit.

To have the best chance of approval, your existing student loans should be in good standing. You should be able to demonstrate affordability and have limited negative marks on your credit report.

A cosigner is not required to be eligible for refinancing although you’ll probably need one if you only meet the minimum credit score or income requirements above. Laurel Road does not have an official co-signer release program. However, a representative of Laurel Road confirmed to MagnifyMoney that Laurel Road will consider a co-signer release upon request of the borrower on a case by case basis.

Laurel Road will ask for documents to backup the details of your application like photo ID, pay stubs, proof of graduation and student loan pay off statements.

Fees & Gotchas

Laurel Road is very transparent with fees. There are no fees for origination or loan prepayment. There’s a late fee of 5% or $28 (whichever one is less) for payments that are over 15 days late. Laurel Road also charges $20 for returned checks or electronic payments whether it’s due to insufficient funds or a closed account.

Pros and Cons

Low interest is the major pro of refinancing with Laurel Road. Loan benefits like forbearance, deferment and loan forgiveness are other advantages. Laurel Road may forgive loans if you die or if you can prove a significant reduction in income due to disability. Hopefully these situations don’t occur, but it’s good to know you and your family is covered if it does.

On a less morbid note, Laurel Road offers full or partial forbearance of payments if you can prove that you’re going through financial hardship. You may also qualify to pay just $100 per month while you complete a full-time post-graduate training program like an internship, fellowship or residency. If you graduate less than 6 months before refinancing, Laurel Road may allow you to defer payments for up to 6 months.

There aren’t many disadvantages of going with Laurel Road other than it not having an official co-signer release program with explicit qualification terms. This may be a turnoff for cosigners since your loan will likely appear on his or her credit report until it’s repaid.

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Student Loan Refinance Alternatives

How does Laurel Road stack up to other available student loan refinances?

SoFi has a higher rate cap for fixed interest and a higher starting rate cap for variable interest than Laurel Road. SoFi currently offers variable rates from 2.615% APR and fixed rates from 3.35% APR (if you sign up for autopay). However, the SoFi refinance does come with a benefit comparable to Laurel Road called unemployment insurance. If you’re laid off, SoFi will pause your payments and help you find a new job.

SoFi logo

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CommonBond has similar rates to Laurel Road. Fixed interest rates are available from 3.37% APR and variable interest rates are available starting at 2.62% APR (if you use autopay). Although to qualify for the CommonBond refinance you must have obtained a degree from one of the graduate programs on its eligibility list. On the other hand, Laurel Road will refinance any loan (graduate or undergraduate) from an accredited program in the U.S.

Commond Bond bank

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Who Will Benefit Most From This Refinance?

The Laurel Road refinance may work out really well for people who need to complete a post-graduate training program before finding a job in their profession. Since Laurel Road allows for reduced payments in this circumstance, you’re given some leeway until you can earn your full professional salary. Still, you should compare the benefits of any Federal loans you have to the benefits of a refinance before making a decision.Customize Student Loan Offers with MagnifyMoney tool

 *We receive a referral fee if you click on offers with this symbol. This does not impact our rankings or recommendations. You can learn more about how our site is financed here.  

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor at taylor@magnifymoney.com

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News

How a Spending Freeze Can Save Your Finances

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Laura Vondra, 49, from Black Hawk, Colo. saved $3,000 doing a 30-day spending freeze.

Laura Vondra, 49, from Black Hawk, Colo. saved $3,000 doing a 30-day spending freeze. Photo courtesy of Laura Vondra.Just after the 2016 holiday season passed, recent empty-nester Laura Vondra, 49, from Black Hawk, Colo., realized she was at a new financial crossroads — after struggling to make ends meet for 30 years as a single mother of three, she was finally going to learn what it felt like to have wiggle room in her budget.

To jumpstart her new financial lease on life, she decided to try a spending freeze. Spending freezes are fairly straightforward but difficult to execute: for a set period of time, you stop spending money on anything that is not essential.

For Laura, a spending freeze would allow her to take full stock of her financial picture. At the time, she had over $110,000 in debt — a combination of student loans and credit card debt.

Her goal was to start a 30-day freeze beginning January 1, 2017. When the big day arrived, the registered nurse set the ground rules: she’d spend money only on gas and food (for herself and her trio of beloved cats, Baby Girl, Matilda, and Poppy). When she wasn’t shopping for essentials, she left her debit and credit cards at home.

At the end of the month, the results were undeniable: Laura had saved roughly $3,000 — one-half of her monthly earnings. She used the funds to completely pay off one of her credit cards. “Before, I always felt like I was broke, I was poor. This month showed me ‘no, you’re not.’ I could easily live off of what I make,” she told MagnifyMoney. “[I realized] I could actually live off of half of that.”

How to Do a Spending Freeze — the Right Way

The goal of a spending freeze is to reign in all unnecessary spending and help to jumpstart your savings goals.

While a spending freeze requires you to not do something, not spending money isn’t always the easy choice in our consumer-driven culture. Here are a few tips to steel your resolve when faced with the inevitable ad for something you really, really, really need want.

Set a time limit and stick to it.

Committing to a certain time frame will help you remember that your frugal period is only temporary, and prevent you from binge-spending when you get weary of sticking to your budget.

Everyone has a different frugality threshold. The spending freeze can help you test your limit. Start off with a shorter freeze, for maybe about a week, then extend it if it feels tolerable, and learn new financial habits along the way. Eventually you’ll be able to handle a no-spend month or even a year or two like some extreme budgeters have done.

Clemson, N.C., couple Jen and Jordan Harmon have gone on a 30-day spending freeze every January since 2014. For the parents of three, it began as a way to recover from holiday season spending.

“Christmas was awful [that year], and we had spent so much money. We were just miserable,” says Jen. Her father had passed away in early December 2013, and on top of those costs, the family had spent money on holiday gifts and fast food during the chaotic month.

Make a list of things that really matter.

Laura says her spending freeze was a way to take stock of what she really needed to spend money on — and what she didn’t. She began “spending [her] money on things that matter and on things that last, not just a dinner out or to get [her] nails done.”

She’s since focused on taking care of some things she didn’t think she would have been able to afford without going on the freeze, like eliminating her debt.

Set yourself up for success.

The more you plan ahead for your spending freeze, the easier it will be for you.

Laura, for example, planned ahead by brewing her own tea at home and bringing tea bags to the office to replace her daily $25 Starbucks habit.

The Harmons prepared lunches in advance so that Jordan wouldn’t feel pressured to spend money for food on his lunch break.

“It’s the convenience that really gets you,” says Jordan. “Once you break that habit, you realize going out to lunch may only be $5 a day, but it adds up.”

Tell EVERYONE and get them to join you

Telling your friends and family about your spending freeze is a great way to garner support for your no-spend trial as well as help you stay accountable.

When the Harmons announced their freeze on Facebook by making a spending-freeze group their friends could join, Jen said she was a little nervous, thinking, “What are people going to think?”

“I was surprised at the general positivity from friends. I thought one or two would sign up. It was like 20 people in the final group, which was more than I thought it would be,” says Jen.

You can also join groups like The Epic Spending Freeze Challenge and Bells Budget Spending Freeze on Facebook for support. Or, invite a friend or family member to join you. If your debt situation is complicated or you think you may need stronger debt support, groups like Financial Peace University and Debtors Anonymous can be good resources.

Laura joined a couple of spending-freeze groups on Facebook to keep herself motivated throughout the freeze.

“I remember talking a picture of my breakfast one morning, thinking ‘this is my last egg, I won’t have another egg until the end of January,’” she says. She says the image received several comments in the group from others who shared their final mid-month rations too.

Don’t be too rigid.

While social events can often come with a host of unexpected costs, you don’t have to avoid them altogether to have a successful freeze. Sometimes it just takes getting a little creative. You can look for free events in your area or plan nights in with your family or significant others.

Also, remember it’s your freeze, so you can bend the rules slightly for your sanity. When Laura received invites to hang out with friends at a local bar, she compromised — she ate a meal at home and purchased only drinks at the bar.

“I didn’t want to stay all month at home and be antisocial,” she says.

She made one more break for social life. In the final week of her freeze, Laura let her boyfriend — who was otherwise forbidden to spend money on her during the freeze — take her out to dinner using a buy-one-get-one-free coupon, so her meal was free.

Set a purpose for the money you’ll save.

You should be able to get a good idea of the amount of money you’ll save over the period when you first go over your spending-freeze budget. Give it a purpose. At the end of the freeze reward yourself with that thing you always wanted but could never find room in your budget for.

Jen Harmon, 32, and Jordan Harmon, 33, from Clemson, N.C. have completed a January spending freeze every year since 2014. Photo courtesy of Jen Harmon.

The Harmons said they are able to save a couple of hundred dollars each freeze, helping to boost their savings, and they’ve gotten into the habit of adding in the occasional no-spend week when necessary. So much so, that they were able to start saving to pay cash for a new family car. In 2016, the freeze helped boost their savings to buy a Prius that February. They say they would have financed the vehicle had it not been for what they learned practicing the spending freeze.

Hide the money (from yourself).

If you think you’ll have serious trouble keeping your hands off of your money, you could try hiding it from yourself to get that “out of sight, out of mind” effect. Transfer all of the money you won’t need to cover the essentials (or an emergency) to an online savings account or one-month CD with another bank.

When you check your main checking account and don’t see much money there to spend on impulse buys, you might be prevented from spending. On top of that, if you need the money, you’ll have to wait or work to get access to it since it will likely take a day or so for the funds to transfer. The wait may give you the time you need to think about the purchase before you buy.

A final word

Generally speaking, just about anyone can benefit from a spending freeze or no-spend period. The challenging spending break can help you develop a better mindset about how you use money and have lasting results on your day-to-day spending habits.

For example, Laura hasn’t tried another no-spend month, but now she’s found the money in her budget to pay $500 toward her credit card debt each month. She says once she eliminates $9,000 in credit debt, she’ll start making headway on about $100,000 in student loan debt.

She says the freeze helped her learn to spend her money on things that matter, not just on lifestyle perks like going out to dinner or getting her nails done. Building that mindset is the whole point of going on a spending freeze.

Brittney Laryea
Brittney Laryea |

Brittney Laryea is a writer at MagnifyMoney. You can email Brittney at brittney@magnifymoney.com

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Balance Transfer, Reviews

Review: Alliant Credit Union Visa Platinum Card Balance Transfer

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Advertiser Disclosure

If you have credit card debt, you are probably paying a high (double-digit) interest rate. One of the best ways to get out of debt faster is to use a 0% balance transfer offer. At MagnifyMoney, our favorite balance transfers have no balance transfer fee. Alliant Credit Union — a credit union that anyone can join — is offering a no-fee 0% balance transfer for 12 months. Although there are longer 0% balance transfers on the market, this is a solid no-fee option that can help you save money and become debt-free faster.

One added perk: Once you become a member of the credit union to take advantage of the balance transfer offer, you will also be able to take advantage of Alliant’s other competitive products. They offer a savings account that pays 1.05% APY. They offer 2.5% cash back on a new credit card. And their mortgage and auto loan rates are some of the lowest in the country. Alliant, one of our favorite credit unions in the country, provides the value you expect from a credit union with the user interface and digital tools that you would expect from a bank.

Visa® Platinum Card from Alliant CU

APPLY NOW Secured

On Alliant CU’s Website

Visa® Platinum Card from Alliant CU

Intro Rate
0%
promotional rate
Fee
$0
APR
9.99%-21.99%
Transfer Period
12 months
Credit required
Average

Average

  • As low as 0% introductory rate for 12 months (After the introductory period, a low standard variable rate applies, ranging from 9.99%-21.99%)
  • No annual fee
  • No balance transfer fee (unless associated with a promotional offer)
  • Generous credit lines
  • $0 fraud liability guarantee

How the Card Works

The Alliant Visa Platinum Card is a very simple, straightforward credit card. There is no annual fee, and there are no rewards. You will probably be given a 0% intro APR on purchases and balance transfers for the first 12 months that you have the card (more on that later). Even better — there is no fee for the balance transfer. After 12 months, the APR will range from 9.99% to 21.99%, depending upon your credit score.

Unfortunately, there is one part of this card that is a little complicated — and could lead to disappointment. You are not guaranteed the 0% interest rate for the 12 months. Depending upon your credit score, the interest rate during the 12-month promotional period could be as high as 5.99%. While a 5.99% rate (especially for someone with a less than perfect credit score) could be a good deal — it is certainly not the 0% intro APR being advertised.

In order to get the credit card, you will need to become a member of the credit union. There are a number of ways that you can become a member. Some of the ways are free (for example, you live in a community in Illinois that is covered). But for most people, the easiest way to join is to make a $10 donation to Foster Care to Success. This is an organization that serves foster teens across the U.S. that are “ageing out” of the system. Once you make that contribution, you will be eligible to join the credit union and get the credit card (along with other credit union products). The application process is easy — you just need to select “not a member” at the beginning of the process, and it will walk you through the membership process as part of your credit card application.

The credit card does offer some standard credit card perks, like $0 fraud liability and rental car insurance. However, the real value is the low interest rate that can help you become debt-free fast.

If you want to earn rewards, Alliant does offer another card — the Visa Platinum Rewards Card. This card has the same balance transfer offer (0% for 12 months with no balance transfer fee). But with this card, you also earn rewards. You can earn 2 points for every $1 spent on the card. However, the APRs (after the balance transfer period) will be higher. In general, we advise people to separate their spending from their borrowing. Cards that offer no rewards tend to have lower interest rates, and cards with rewards have higher interest rates — as we see in this case. If you are looking to become debt-free, it is probably better to ignore rewards and get the lowest interest rate possible.

How to Qualify for the Card

Alliant targets people with good or excellent credit. In general, that means you have a decent chance of being approved if your score is in the mid-600s, but you have a much better chance of being approved if your score is above 700.

In addition, Alliant (like all lenders) will need to be comfortable that you will be able to afford your payments. That means you will need to have a steady source of income. In addition, the lender will likely look at your total debt in relation to your income. If you have too much debt, you will find it more difficult to get approved.

What We Like About the Card

No fee for the balance transfer.

There is nothing better than free. And with no balance transfer fee and no interest for 12 months, that is exactly what you get. Pay down as much of the debt as possible during the promotional period — because every dollar of every payment will go toward principal.

It is from a credit union.

At MagnifyMoney, we like credit unions — in theory. As member-owned organizations, credit unions do not need to worry about shareholders and should be able to offer better value and lower interest rates. Unfortunately, far too many credit unions have websites that look like they were designed in the 1990s. With Alliant, we finally have a credit union that has made the application process easy, and has a great website. Alliant is delivering on the true potential of a credit union.

What We Don’t Like About the Card

It is not the longest balance transfer.

There are a number of longer no-fee balance transfer options on the market. You can get a no-fee balance transfer for as long as 15 months from some of the leading banks in the country.

You are not guaranteed a 0% intro offer — the rate could be higher.

In the fine print, Alliant makes it clear that you might not get a 0% intro rate. The intro rate could be as high as 5.99%, depending upon your credit score. The only silver lining: Alliant is willing to give intro rates to people with less than perfect credit. But we still find it a bit annoying that you could apply for a 0% intro rate and end up with a 5.99% rate instead.

Joining the credit union costs money.

If you can’t find a free way to join the credit union, you will have to make a $10 donation. We certainly like the cause that you would be supporting. However, it is still additional money that you would need to spend in order to get access to the product.

How to Complete a Balance Transfer

Completing the balance transfer is easy. During the application process, you can provide the credit card number of your existing credit cards (where the debt is located now). Alliant will then make a payment to your existing credit card companies.

Alternatively, you can call Alliant once you have the card to complete the balance transfer on the phone.

Just remember these tips:

  • If you start the balance transfer close to the payment date, you might want to make the minimum payment to ensure you don’t get hit with any late charges. Although balance transfers usually process quickly — they can take a couple of weeks. And you would not want to get stuck with a late fee.
  • Get the transfer done as quickly as possible. The 0% is for 12 months from when you open the account — not from when you transfer the debt. The faster your transfer the debt, the more money you can save.

Alternatives to the Card

If You Want a Longer Intro Period and No Balance Transfer Fee

Chase is the largest credit card issuer in America. It offers a great balance transfer on its Chase Slate credit card. Save with a $0 introductory balance transfer fee and get 0% introductory APR for 15 months on purchases and balance transfers, and $0 annual fee. Just remember that you cannot transfer debt from other Chase products — including co-brand credit cards for airlines (like United and Southwest) or hotels (like Marriott or Hyatt).

Barclaycard is the American credit card division of Barclays Bank. Barclays is a large British bank. With Barclaycard Ring, you can get 0% intro APR for 15 months on a balance transfer and no intro balance transfer fee — so long as you complete the transfer within 45 days of opening the card. Just remember: Barclaycard only accepts people with excellent credit.

Who Benefits Most from the Card

If you have credit card debt that you think you can pay off in a year, this is a great option. With no balance transfer fee and 0% interest for one year — you can pay down your debt quickly. If you think it will take longer to pay off your debt, you might want to consider a longer balance transfer from a more traditional bank.

FAQs

Yes, anyone can join. During the application process, you will be asked if you are already a member of the credit union. Just select “not a member” and you can join during the application process.

Once the introductory period is over, interest will start to accrue at the standard purchase interest rate on a go-forward basis. Interest during the introductory period is waived — so you do not need to worry about a retroactive interest charge.

In the short term, your credit score will probably take a small hit (5-10 points) because you applied for new credit. However, over time, a balance transfer can increase your credit score with proper practices. This is because while new credit makes up 10% of your credit score, the amount you owe accounts for 30%. By using a balance transfer, you will reduce your interest rate. That should help you get out of debt a lot faster.

Liz Stapleton
Liz Stapleton |

Liz Stapleton is a writer at MagnifyMoney. You can email Liz here

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Balance Transfer, Reviews

Citi Simplicity Review: Now 0% Balance Transfer for 21 Months

Editorial Disclaimer: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Advertiser Disclosure

Citi Simplicity has one of the longest 0% balance transfer offers on the market. If you transfer credit card debt to Simplicity, you will get a 0% intro APR for an incredible 21 months. There is a 3% balance transfer fee. You should do the math (and we will help you later in this post) — but for most people the fee is worth paying. As the name implies, Citi has tried to make this card “simple.” That means no late fees, no annual fee, and no penalty APR. It also means no rewards. If you have credit card debt at a high interest rate, Simplicity can help you save a lot of money and become debt-free faster if you use it wisely.

Citi Simplicity® Card

APPLY NOW Secured

On Citibank’s Website

Citi Simplicity® Card

Intro Rate
0%
promotional rate
Fee
3%
APR
14.49%-24.49%
Transfer Period
21 months
Credit required
Good

Good

  • The ONLY card with No Late Fees, No Penalty Rate, and No Annual Fee… EVER.
  • 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the variable APR will be 14.49% - 24.49% based on your creditworthiness.
  • There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
  • The same great rate for all balances, after the introductory period.
  • Save time when you call with fast, personal help, 24 hours a day – just say “representative”
  • Enjoy the convenience of setting up your own bill payment schedule on any available due date throughout the month.

How the Card Works

The card gets its name, Citi Simplicity, from its effort to keep things simple. There is never an annual fee, late fee, or penalty rate. There is an introductory offer of 0% for 21 months which includes balance transfers made within the first four months of opening the card and all purchases made during the 21-month period. After 21 months your rate will depend on your creditworthiness. Additionally, after the introductory rate ends, you will see the same interest rate for purchases, balance transfers, and cash advances.

The Introductory Offer

This is the longest 0% purchase offer that we have found on the market. If you need to finance a purchase, it will be hard to find a better deal. What we particularly like about this 0% APR is that the interest is waived, not deferred. Most store credit cards only defer the interest (and for far fewer than 21 months), and you would be hit with a big penalty if you don’t pay the balance in full before the promotional period is over. That is not the case with Citi Simplicity.

In addition to the 0% purchase offer, there is also a very strong 0% balance transfer offer. You will pay no interest for 21 months, but will need to pay a 3% balance transfer. If you think you can pay your debt in full within 6 months, a balance transfer is usually not worthwhile. However, if you think it will take longer than 6 months, the fee is usually worth it and you can use this calculator to see how much you can save.

Here is an example to help understand the math. If you are making a monthly payment of $300 on $10,000 of credit card debt at a current interest rate of 17% and you transfer it to the Citi Simplicity card, you will be charged a $300 upfront fee. However, during the 21-month promotional period you would save over $2,000 — making the $300 fee worthwhile.

What Happens After 21 Months

Even if you still have a balance at the end of the 21 months, interest will start to accrue on your remaining balance on a go-forward basis. There is no penalty, and no retroactive interest will be applied.

No Late Fee

Most credit cards charge a late fee of around $30 when you miss paying at least the minimum payment by the deadline. However, the Citi Simplicity does away with this fee and will let you choose your payment due date when you sign up.

However, just because Citi doesn’t charge a late fee doesn’t mean there aren’t consequences for making a late payment. If your payment is more than 30 days late, Citi would report that information to the credit bureau. This can have a negative impact on your credit score that can result in higher interest rates when you later apply for new lines of credit.

No Penalty Rate

Most credit cards in addition to charging a late fee will penalize you with an increased interest rate when you are late with a payment. This rate could be somewhere in the 30% range for purchases moving forward. The Citi Simplicity Card promises no penalty rate, meaning even if you are late with a payment, after all mistakes happen, you won’t be gouged with your credit card interest rate. However, if you bounce a check for payment, then you can be charged $35.

Same Interest Rate No Matter What You Use Your Card For

The Citi Simplicity card, keeping things simple, makes the interest rate for purchases, balance transfers, and cash advances all the same. Many other credit cards will have different interest rates for each.

Price Protection

It’s already been mentioned that the Citi Simplicity card does not offer any rewards programs. However, they do offer some price protection. It’s called Citi Price Rewind. After you make a purchase with your card, you can register that purchase with Citi. Then Citi will search for lower prices across hundreds of online retailers. If Citi finds it at a lower price within 60 days, you will receive the difference between what you paid and the lower price found, up to $500 per purchase and $2,500 per year.

The only downside is this benefit only applies to certain purchases. For example, it doesn’t apply to purchasing a car, but can apply for tires purchased. You can view the full list of what qualifies here. If you find a lower price yourself, then you can submit a Price Rewind Benefit Request.

How to Qualify for the Card

You need to have good or excellent credit in order to be approved for the credit card.

In addition to a strong credit score, you will also need to demonstrate your ability to repay the debt. Citi will look at your total debt relative to your income to ensure that you are not too deep into debt. This product is not a way for people in trouble to get a lower rate — it is a way for Citi to get borrowers with a good profile who want a lower interest rate.

What We Like About the Card

A very long 0% period.

At a 3% balance transfer fee, this is the longest balance transfer on the market. Time is money — and every additional month at 0% can represent considerable savings.

Fewer “gotcha” fees.

Although we hope you never need to take advantage of these benefits, the card has no late fees and no penalty APR. In order to avoid even the risk of a late fee, we strongly recommend that you automate your monthly payments. However, mistakes can happen — and we do applaud Citi for removing some of the most annoying fees.

Price Rewind — it is actually a nice feature.

Price Rewind is a feature that is not used enough. Citi will look for a better deal — and give you the difference if you overpaid. This isn’t just a promise — we have spoken with people who have benefited from this feature.

What We Don’t Like About the Card

There is a balance transfer fee.

In most cases, and for most people, the fee will more than pay for itself. However, there are other balance transfer deals on the market that don’t have a fee. Just make sure you do the math to ensure that the fee is worth paying in your situation.

The rate after the 0% intro offer is not low.

After the intro period is over, the go-to purchase APR is not low. It ranges from the teens to the 20s, depending upon your credit risk. Hopefully, the 21-month period is long enough to eliminate your debt completely.

How to Complete a Balance Transfer

After receiving your card, you should call the number on the back of your card to initiate the balance transfer. You will need to give the credit card number of the credit card that has the debt. You cannot transfer debt from another Citi credit card (including its co-brand cards).

Although it can take less time, Citi warns that a balance transfer takes at least 14 days to complete. And you will remain responsible for making all payments on your card until the transfer is complete. We recommend paying close attention so that you do not end up with any late fees on your existing cards.

Alternatives to the Card

If You Want to Avoid a Balance Transfer Fee

There are two options if you want to avoid a balance transfer fee: Chase and Barclaycard. Both are good options.

Chase is the largest credit card issuer in America. It offers a great balance transfer on its Chase Slate credit card. You can get 0% interest (on transfers made within 60 days of opening the card) for 15 months. There is no intro balance transfer fee and no annual fee. Just remember that you cannot transfer debt from other Chase products — including co-brand credit cards for airlines (like United and Southwest) or hotels (like Marriott or Hyatt).

Barclaycard is the American credit card division of Barclays Bank. Barclays is a large British bank. With Barclaycard Ring, you can get 0% for 15 months on balance transfer and no balance transfer fee — so long as you complete the transfer within 45 days of opening the card. Just remember: Barclaycard only accepts people with excellent credit.

Who Benefits Most from the Card

If you have a lot of credit card debt that will take a long time (more than 15 months) to pay off, this card is a great option. Over 21 months, the savings can be incredible. Just make sure you take advantage of the 0% period to attack your debt as quickly as possible.

FAQs

No — you do not need excellent credit. Citi will approve anyone with good or excellent credit.

Once the introductory period is over, interest will start to accrue at the standard purchase interest rate on a go-forward basis. Interest during the introductory period is waived — so you do not need to worry about a retroactive interest charge.

In the short term, your credit score will probably take a small hit (5-10 points) because you applied for new credit. However, over time, a balance transfer can increase your credit score with proper practices. This is because while new credit makes up 10% of your credit score, the amount you owe accounts for 30%. By using a balance transfer, you will reduce your interest rate. That should help you get out of debt a lot faster.

Liz Stapleton
Liz Stapleton |

Liz Stapleton is a writer at MagnifyMoney. You can email Liz here

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