Tag: Buy

Should You Refinance Your Student Loans?

Due to financial consequences of COVID-19 — and the broader impact on our economy — now is an excellent time to consider refinancing most loans you have. This can include mortgage debt you have that may be converted to a new loan with a lower interest rate, as well as auto loans, personal loans, and more.

Refinancing student loans can also make sense if you’re willing to transition student loans you currently have into a new loan with a private lender. Make sure to take time to compare rates to see how you could save money on interest, potentially pay down student loans faster, or even both if you took the steps to refinance.

Get Started and Compare Rates Now

Still, it’s important to keep a close eye on policies and changes from the federal government that have already taken place, as well as changes that might come to fruition in the next weeks or months. Currently, all federal student loans are locked in at a 0% APR and payments are suspended during that time. This change started on March 13, 2020 and lasts for 60 days, so borrowers with federal loans can skip payments and avoid interest charges until the middle of May 2020.

It’s hard to say what will happen after that, but it’s smart to start figuring out your next steps and determining if student loan refinancing makes sense for your situation. Note that, in addition to lower interest rates than you can get with federal student loans, many private student lenders offer signup bonuses as well. With the help of a lower rate and an initial bonus, you could end up far “ahead” by refinancing in a financial sense.

Still, there are definitely some negatives to consider when it comes to refinancing your student loans, and we’ll go over those disadvantages below.

Should You Refinance Now?

Do you have student loan debt at a higher APR than you want to pay?

  • If no: You shouldn’t refinance.
  • If yes: Go to next question.

Do you have good credit or a cosigner? 

  • If no: You shouldn’t refinance.
  • If yes:  Go to next question.

Do you have federal student loans?

  • If no: You can consider refinancing
  • If yes: Go to next question

Are you willing to give up federal protections like deferment, forbearance, and income-driven repayment plans?

  • If no: You shouldn’t refinance
  • If yes: Consider refinancing your loans.

Reasons to Refinance

There are many reasons student borrowers ultimately refinance their student loans, although they can vary from person to person. Here are the main situations where it can make sense to refinance along with the benefits you can expect to receive:

  • Secure a lower monthly payment on your student loans.
    You may want to consider refinancing your student loans if your ultimate goal is reducing your monthly payment so it fits in better with your budget and your goals. A lower interest rate could help you lower your payment each month, but so could extending your repayment timeline.
  • Save money on interest over the long haul.
    If you plan to refinance your loans into a similar repayment timeline with a lower APR, you will definitely save money on interest over the life of your loan.
  • Change up your repayment timeline.
    Most private lenders let you refinance your student loans into a new loan product that lasts 5 to 20 years. If you want to expedite your loan repayment or extend your repayment timeline, private lenders offer that option.
  • Pay down debt faster.
    Also, keep in mind that reducing your interest rate or repayment timeline can help you get out of student loan debt considerably faster. If you’re someone who wants to get out of debt as soon as you can, this is one of the best reasons to refinance with a private lender.

Why You Might Not Want to Refinance Right Now

While the reasons to refinance above are good ones, there are plenty of reasons you may want to pause on your refinancing plans. Here are the most common:

  • You want to wait and see if the federal government will offer 0% APR or forbearance beyond May 2020 due to COVID-19.
    The federal government has only extended forbearance through the middle of May right now, but they might lengthen the timeline of this benefit if you wait it out. Since this perk only applies to federal student loans, you would likely want to keep those loans at 0% APR for as long as the federal government allows.
  • You may want to take advantage of income-driven repayment plans.
    Income-driven repayment plans like Pay As You Earn (PAYE) and Income-Based Repayment let you pay a percentage of your discretionary income each month then have your loans forgiven after 20 to 25 years. These plans only apply to federal student loans, so you shouldn’t refinance with a private lender if you are hoping to sign up.
  • You’re worried you won’t be able to keep up with your student loan payments due to your job or economic conditions.
    Federal student loans come with deferment and forbearance that can buy you time if you’re struggling to make the payments on your student loans. With that in mind, you may not want to give up these protections if you’re unsure about your future and how your finances might be.
  • Your credit score is low and you don’t have a cosigner.
    Finally, you should probably stick with federal student loans if your credit score is poor and you don’t have a cosigner. Federal student loans come with fairly low rates and most don’t require a credit check, so they’re a great deal if your credit is imperfect.

Important Things to Note

Before you move forward with student loan refinancing, there are some details you should know and understand. Here are our top tips and some important factors to keep in mind.

Compare Rates and Loan Terms

Because student loan refinancing is such a competitive industry, shopping around for loans based on their rates and terms can help you find out which lenders are offering the most lucrative refinancing options for someone with your credit profile and income.

We suggest using Credible to shop for student loan refinancing since this loan platform lets you compare offers from multiple lenders in one place. You can even get prequalified for student loan refinancing and “check your rate” without a hard inquiry on your credit score.

Check for Signup Bonuses

Some student loan refinancing companies let you score a bonus of $100 to $750 just for clicking through a specific link to start the process. This money is free money if you’re able to take advantage, and you can still qualify for low rates and fair loan terms that can help you get ahead.

We definitely suggest checking with lenders that offer bonuses provided you can also score the most competitive rates and terms.

Consider Your Personal Eligibility

Also keep your personal eligibility in mind, including factors beyond your credit score. Most applicants who are turned down for student loan refinancing are turned away based on their debt-to-income ratio and not their credit score. Generally speaking, this means they owe too much money on all their debts when you compare their liabilities to their income.

Credible also notes that adding a creditworthy cosigner can improve your chances of prequalifying for a loan. They also state that “many lenders offer cosigner release once borrowers have made a minimum number of on-time payments and can demonstrate they are ready to assume full responsibility for repayment of the loan on their own.”

It’s Not “All or Nothing”

Also, remember that you don’t have to refinance all of your student loans. You can just refinance the loans at the highest interest rates, or any particular loans you believe could benefit from a different repayment term.

4 Steps to Refinance Your Student Loans

Once you’re ready to pull the trigger, there are four simple steps involved in refinancing your student loans.

Step 1: Gather all your loan information.

Before you start the refinancing process, it helps to have all your loan information, including your student loan pay stubs, in one place. This can help you determine the total amount you want to refinance as well as the interest rates and payments you currently have on your loans.

Step 2: Compare lenders and the rates they offer.

From there, take the time to compare lenders in terms of the rates they can offer. You can use this tool to get the process started.

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Step 3: Choose the best loan offer you can qualify for.

Once you’ve filled out basic information, you can choose among multiple loan offers. Make sure to check for signup bonus offers as well as interest rates, loan repayment terms, and interest rates you can qualify for.

Step 4: Complete your loan application.

Once you decide on a lender that offers the best rates and terms, you can move forward with your full student loan refinancing application. Your student loan company will ask for more personal information and details on your existing student loans, which they will combine into your new loan with a new repayment term and monthly payment.

The Bottom Line

Whether it makes sense to refinance your student loans is a huge question that only you can answer after careful thought and consideration. Make sure you weigh all the pros and cons, including what you may be giving up if you’re refinancing federal loans with a private lender.

Refinancing your student loans can make sense if you have a plan to pay them off, but this strategy works best if you create a debt repayment plan you can stick with for the long-term.

The post Should You Refinance Your Student Loans? appeared first on Good Financial Cents®.

Source: goodfinancialcents.com

5 Frugal Ways to Celebrate Your Debt Successes

5 Frugal Ways to Celebrate Your Debt Successes

One of the lessons I’ve learned as I continue to work my way out of debt is that you need to treat yourself and celebrate your little successes along the way so you can avoid debt fatigue down the road. Celebrating small milestones, like getting another $1,000 knocked off your debt total, starting to put money aside for retirement or paying off a credit card balance, is important for both your sanity and your family’s sanity.

Find out now: How much money do I need to save for retirement?

I don’t have kids, but several of my personal finance blogger friends do, and they have talked about how kids don’t always understand how they can contribute to the family financial goals since they don’t earn any money. Plus, sometimes kids don’t understand why there is a sudden need to cut back on expenses they have come to know as normal- things like going out to eat or having a night out at the movies with friends. Allowing yourself and your family to celebrate your financial wins as you work your way out of debt will help them understand that while your family is now living on a different budget, it’s still okay to enjoy the present.

With that in mind, here are five frugal ways you can celebrate your financial successes, so you don’t erase all your progress!

1. Go out for Dessert

As a kid, whenever we’d go out for dessert after a home-cooked meal, it felt like a real fancy treat. Now I know that this was mom and dad’s way of having a celebration without spending a lot of money on paying for a whole meal.

2. Rent a Movie

5 Frugal Ways to Celebrate Your Debt Successes

This may not seem like a treat if you rent movies all the time, but if you are living on a very strict budget and don’t often rent movies, this could be a treat for you and your family. Make it the full experience – popcorn, candy, etc. Renting a movie and making popcorn at home is a fun way to celebrate, and it’s still a lot cheaper than going to the theater.

12 Affordable Ways to Have Fun on a Tight Budget

3. Hit a Matinee

Wait, didn’t I just say to avoid the theater to save money? Yes, but sometimes movie theaters offer cheaper matinee movies earlier in the day. Often showings before noon can be as little as half price. This is a more budget-friendly way to enjoy a new movie.

4. Buy a Book or Magazine

One of the first things that got cut from my budget when I started focusing on financial goals was my magazine subscription. Most of the time I don’t miss it as I have plenty of things to keep me busy, but sometimes it’s nice to somewhat mindlessly flip through a magazine in the evenings. Buying yourself a new book – maybe one of these investing books – or magazine is a fairly cheap way to entertain yourself and if it’s a rare occasion, it can serve as a reward too.

Frugal Summer Fun for Adults

5. Go on a Day Trip

5 Frugal Ways to Celebrate Your Debt Successes

If you aren’t traveling too far, the most expensive part of the trip is usually the overnight accommodations. By taking a day trip instead to the beach or somewhere else, you can get out of town and away from the norm without having to shell out for an expensive hotel room.

What other frugal ways can you think of to celebrate your debt successes?

Photo credit: Â©iStock.com/andresr, Â©iStock.com/sdominick, Â©iStock.com/AleksandarNakic

The post 5 Frugal Ways to Celebrate Your Debt Successes appeared first on SmartAsset Blog.

Source: smartasset.com

8 Free Sleep Apps for a Blissful Night’s Rest

Whether it’s fear of getting sick, worry for a loved one’s health, job anxiety, the stress of juggling parenting and career in a pandemic, or all of the above, sky-high stress seems to be the new normal.

While free sleep apps won’t solve your big-picture problems, they could help you fall asleep faster, so you can tackle life’s stressors feeling refreshed. Here are the best ones we’ve found.

1. White Noise

White noise free sleep apps are must-haves for travel, when you need a consistent noise to block out the sounds of other hotel guests, city noises, etc. The ‘lite’ version does the trick with free sleep sounds and nature sounds. For $4.99, you get 50 sounds plus the ability to create your own track that includes binaural beats, aka different frequencies that cue your brain to relax.

Find White Noise in the Apple App Store, Google Play or Amazon.

2. Relax and Sleep Well Hypnosis

Hypnosis usually costs several hundred dollars, but you’ll pay $0 for this hypnotherapy sleep app with four recordings of meditation and hypnosis. Additional hypnosis tracks are available as app purchases for $2.99 apiece. This one made Healthline’s 2019 list of the best sleep apps, so if you’re skeptical of hypnosis, their stamp of approval may persuade you to download hypnotherapy sleep apps.

Find Relax and Sleep Well Hypnosis in the Apple App Store or Google Play.

3. Headspace

Headspace’s guided meditation app is the perfect way to wind down for bed: Andy’s soothing British accent will lull you into a state of total relaxation where it seems like nothing could ever go wrong. While it’s $60 a year, Headspace often makes the best sleep apps lists. Students can pay $9.99 for annual access, and Netflix subscribers can watch the Headspace series for no extra cost. Each episode focuses on one style of meditation, so by the time you finish the season you’ll have a whole arsenal of relaxation techniques to try before bed.

Sign up for a free trial of Headspace or watch on Netflix.

Are you turning more to apps for wellness? Try these cheap or free meditation apps.

4. Deep Sleep With AJ

Deep Sleep With AJ is a cheaper alternative to Headspace, with a one-time cost of $2.99 and similarly dreamy Scottish accent. Developed by a mindfulness expert and therapist, the sleep app includes mindfulness and inspirational talks, bedtime relaxation techniques to help you wake up feeling refreshed, meditations for anxiety and panic attacks and more. You can cue up meditations to repeat a set number of times, so it ideally plays through until you’ve caught those Zs.

Find Deep Sleep With AJ on the Apple App Store or Google Play.

5. Relax Melodies

Combining relaxing sounds, free sleep stories and guided meditation for sleep, lucid dreaming, or relief from medical conditions like tinnitus (ringing in the ears that often gets worse before bed), free sleep app Relax Melodies has thousands of fans. It comes with 52 sounds including white noise, nature sounds, ASMR (autonomous sensory meridian response, or that warm tingle associated with sounds like whispers) and binaural beats. Premium sounds are available as app purchases for $4.99.

Find Relax Melodies on the Apple App Store or Google Play.

6. Nothing Much Happens

Think of free podcast Nothing Much Happens as adult sleep stories designed to help you relax into a peaceful slumber. As the title suggests, the stories are fairly low-stakes. Podcast host Kathryn is a meditation and yoga teacher, so think of this as an extended savasana where it’s actually awesome if you end up snoring after five minutes.

Find Nothing Much Happens on Apple Podcasts or Google Podcasts.

7. Endel

Perfect for the multitasker, Endel offers “personalized soundscapes” for relaxation, better sleep and better focus. The app pulls data from your environment (like weather, location or time of day), then moderates sounds to match your mood: focus music for daytime work and chill sounds to help you sleep. The app comes with a 7-day free trial, after which point you’ll need to buy a subscription ($5.99 per month or $49.99 per year, at present) or use the free, browser-based version.

Find Endel in the Apple App Store, Google Play, or on Twitch.

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8. Rise: Sleep & Energy Tracker

For those wanting a scientific approach to a good night’s sleep, the Rise sleep tracker app is worth checking out. It’s free to download with membership upgrades as app purchases beginning at $6.99 per month. Unlike sleep-tracking apps which just gauge your sleep cycle, Rise looks at “sleep debt”– aka how much sleep you should get but don’t. The sleep app works backward from your sleep debt numbers, drawing from sleep data and health information to help you improve sleep quality and quantity. Rise fans include pro sports teams and Fortune 500 leaders who find the price worth it to sleep better and wake up feeling refreshed.

Find Rise in the Apple App Store or Google Play.

Most people experience sleep problems for a range of underlying causes, thus it can be helpful to have multiple free sleep apps on your phone. Armed with nature sounds, bedtime stories, guided meditation, science-backed sleep habits and hypnosis for life’s most pressing worries, you can stop counting sheep and cue up what’s mostly likely to help you get a good night’s sleep.

Lindsey Danis is a contributor to The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

Expert Homebuying Tips for Buying in a Seller’s Market

Buying a house is a big decision, but it can feel especially overwhelming to place an offer on a home less than 24 hours after seeing it for the first time. Plus you’re under pressure to outbid several other buyers — or risk losing the house.

While these circumstances might sound extraordinary, they’re not. With housing inventory nationwide at an all time-low — down 22% from last year according to the National Association of Realtors — it’s no wonder buyers are competing for the same few houses.

I was in this exact position last fall. Here are seven key takeaways from my experience buying in a seller’s market.

Get a Pre-Approval Letter

In order to be competitive in a hot seller’s market, you will need to line up your financing in advance.

Besides all the usual suspects, like saving up for a down payment and improving your credit score, you’ll also want to get a pre-approval letter from your bank. It states that a bank would approve you for a mortgage of a certain amount, and acts as a guarantee to the seller that you can actually afford to buy their house.

This is where it helps to know your budget up front.

“It’s important to understand that the strength of financing is a key consideration a seller takes into account when selecting an offer,” said real estate developer Bill Samuel.

No seller wants to risk accepting an offer that might fall through. Aand since pre-approval letters can take some time to get, have one ready before you find your dream house.

Be Friendly With Neighbors

This might sound crazy, but making a good impression on your new neighbors can actually make a difference when it comes time for a seller to review offers.

Since you’ll likely be visiting the home at least once before making an offer, be prepared to talk to any neighbors you might run into. In close-knit neighborhoods, or ones where people share resources (like an HOA), sellers might care a bit more about the type of person they sell the house to.

If you happen to meet a neighbor when visiting the home, introduce yourself and make a good impression. You never know how much their opinion of you might factor into any final decisions.

Submit an Offer Quickly

After you’ve seen a house, and decided you love it, be prepared to submit an offer quickly— as in, ASAP.

Work with your real estate agent to determine how many other offers the seller already has (or expects to get) and then be prepared to draft something up that day. In our case, we toured our home for the very first time at 11 a.m. on a Monday — it came on the market the evening before — and made an offer by 4 p.m. that same day.

If that sounds fast, it is. But by the time we submitted our offer, the seller already had three others. This is where it helps to have a great real estate agent on your side.

“Having a realtor who can get your offer submitted quickly is crucial,” said Erik Wright, owner of New Horizon Home Buyers. “You want to get your offer in front of the seller first, and make it strong. Purchase price is the obvious factor and in a competitive market, houses often go for over asking price. However, a strong offer has several factors and it depends on what’s most important to the seller.”

Work with your real estate agent to find out what matters most to the seller — is it money, closing quickly, something else entirely? Then make sure your offer addresses their needs.

Minimize Your Contingencies (Within Reason)

Another way to win over your seller (and prevail in any bidding wars) is by keeping your contingencies to a minimum.

Contingencies are the contractual stipulations buyers and sellers must meet before the deal can close. Unsurprisingly, sellers don’t like to have too many of them to deal with. Contingencies can include such things as requesting a seller to make certain repairs, getting a home inspection, or even the fact that you’ll need to sell your old house before being able to buy the new one.

“In a really aggressive seller’s market, a home buyer who has to sell a current property should do so before placing an offer on another home,” said Jason Gelios of Community Choice Realty. “Don’t always assume that the seller will take the highest price. Other conveniences can play a factor in gaining the seller’s attention, especially things like faster closing times and less restrictions.”

While my partner and I didn’t make the highest offer on our house, we did have the fewest contingencies — mainly, we didn’t ask too much of our seller in the way of repairs, or have another house to sell in order to afford the new one.

All that said, there are certain contingencies you should never forgo, and a home inspection is one of them. Getting your home inspected is hugely important, since inspectors will often find things even the sellers weren’t aware of. No matter how much you love a house, don’t be afraid of exercising your right to an inspection.

According to buyer protection laws in most states, sellers are required to report any findings in home inspections to subsequent buyers. In other words, if an inspector finds something wrong with the house, the seller will have to deal with it one way or another— either with you, or the next buyer should you choose to drop out of the deal.

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Make a Generous Earnest Money Deposit

When trying to woo your seller in a competitive market, it helps to make a generous earnest money deposit. An earnest money deposit is a good-faith deposit requested by the seller when you enter into a contract to buy the house and typically run anywhere from 1% to 3% of the sale price of the home.

When deciding how much of an earnest money deposit to include in your offer, keep in mind that whatever amount you give comes off the price of the home (and is returned to you if the deal falls through). In other words, there’s no reason to be cheap. If you can, go slightly above the seller’s requested deposit amount. Even if it’s just a little more than what they’re asking, that gesture of good faith might just be what gets you the house.

A row of houses on a cul de sac in a suburban neighborhood.

Offer Above Asking Price

Wait. Why would anyone make an offer that’s above asking price? Because the competition did it first, and in a hot seller’s market, offering above asking price is often what it takes to even be considered.

Upping your offer may not break the bank as much as you’re fearing. “With interest rates so low these days, offering more than what the seller is asking may not make a drastic difference in your overall monthly payments,” real estate agent Pavel Khaykin of Pavel Buys Houses said.

Let’s say the listing price on your dream home is $320,000 and you’re able to put down a 6% down payment. That leaves you with a mortgage of roughly $301,000. For a 30-year fixed mortgage at an interest rate of 3%, that translates into $1,269 monthly payments. Now let’s say you decide to bid a little higher on the home and offer $10,000 over asking price. This would only bump up your monthly payment (assuming you qualify for that low interest rate) by $42.

Lace Up Your Running Shoes

In a hot seller’s market, you’ve got to be ready to move fast. Often this is more of a change in mindset than anything else. When my partner and I first started looking at homes, we considered ourselves casual buyers — that is, until our dream home came on the market late one Sunday night. From there, things moved quickly. We saw the home, made an offer, were under contract by morning, and spent the next month and a half going through the process of closing on the house.

If you’re serious about finding your dream home in the next few months, the best thing you can do is know what you want from the outset, and get your ducks in a row to make a compelling offer when you find it. Maybe this means making a list of your must-haves in a house, and working to improve your credit score. It might also mean reaching out to a real estate agent before you need one, and getting that pre-approval letter in place.

Although inventory is low, new houses come on the market all the time.

Larissa Runkle is a contributor to The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Source: thepennyhoarder.com

What You Need to Know About the New Apple Credit Card

Man in light green shirt shopping on a tablet with his apple credit card

UPDATE: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace. DISCLOSURE: Cards from our partners are mentioned here.

The Apple credit card launches this summer, and it pairs the high-tech, app-based culture of the brand with some favorite credit card user perks. Before you join the flock likely to flood Apple with credit card applications, do your homework to make sure this card will meet your needs. Check out the details about the Apple credit card below, as well as some alternative credit cards you might apply for.

What’s the Apple Credit Card?

The Apple credit card is a payment card offered by Apple and issued by Goldman Sachs. Despite the Apple name on the card, whether or not a consumer is approved and the day-to-day financial management of accounts is handled by Goldman Sachs.

The design of the card and all its cash-back credit card perks, however, are courtesy of Apple and include:

  • Integration with Apple Pay and Apple Wallet
  • Integration with your iPhone or another iOS mobile device to support phone-based payments and access to accounts
  • Apple’s customary security and privacy levels
  • Cash back offers that are especially useful to Apple fans

Basic facts to know about the new Apple credit card include:

  • It comes with a 49% to 23.49% variable APR (as of 12/19/2019) depending on your creditworthiness.
  • You earn 1 to 3% cash back on purchases.
  • The Apple credit card doesn’t come with any fees—that includes no annual fee, late payment fees, foreign transaction fee and over-limit fees.
  • Though you do receive a physical card whose number you can use in Google Wallet, the Apple credit card also comes as a virtual card number designed to live in your Apple Wallet.

The wide range APRs suggest so some that the card may be available to people with a fair credit score.1 No one will know until the card actually launches though.

Benefits and Perks of the Apple Credit Card

While interest rates and credit limits are important, most consumers also choose a card based on the perks its rewards program affords them. Intelligent use of perk-related cards, such as travel rewards cards, can help you save money or earn extra pennies on cash you already plan to spend. Here’s a look at how Apple credit card perks stack up for users.

Expense and Spending Organization in One Place

Apple is making a big deal out of the user experience element of this credit card, which involves heavy integration with iPhones. The card itself is housed in the Apple Wallet app on your iOS device. Since you can only use the digital version of the card where Apple Pay is accepted, you also get a unique physical card that’s as sleek and high-tech as any Apple device.

The card’s digital component offers specific benefits:

  • You can apply for the card and, if approved, it’s immediately in your Wallet app. You can start using it the same day without waiting for a card to arrive in the mail.
  • Without using a physical card, you don’t have a card number or other elements that can be stolen, which increases the security of your account.

Apple also provides an app that lets you manage your spending and account in a single location. You can view charges based on a map to figure out where money was spent, get a color-coded breakdown of your expenses to help you budget and view visual and numeric information about how various payment amounts impact the total owed. Log in to the app when you’re ready to make a payment on your account, and you’re also provided with estimates on how much interest you’ll be charged and can see how much interest you’ll pay if you pay your card off sooner than later and vice versa.

Cash Back and Daily Cash Back with Some Purchases

The card gives account holders the chance to earn cash-back rewards too. And you get even more cash back rewards when you spend with Apple.

  • You get 3% cash back on all purchases from Apple. That includes purchases at apple.com, Apple stores, iTunes and the Apple app store. You earn cash back on the game, app and in-app purchases, including music, storage plans and books.
  • You get 2% cash back on anything else you purchase and pay with using Apple Pay.
  • If you have to break out the physical Apple Card to make a payment, you still earn 1% cash back.

Cash back is always a great perk for a credit card, but it’s especially nice when the card doesn’t have an annual fee. The Apple credit card makes cash back even more of a perk by awarding it to you the day after you spend rather than waiting for the statement cycle to close.

To make use of cash back the next day, you do have to have an Apple Cash card, which is how Apple transmits rewards to you. If you don’t have an Apple Cash card, then the cash back rewards are applied as a statement credit on your Apple credit card account.

Who Benefits Most from This Credit Card?

Because of its heavy integration with iOS technology and the Apple Wallet, the Apple credit card is more likely to be useful to Apple customers. Individuals who carry Android or other devices won’t be able to access many of the features available with this card. And if you’re not shopping with Apple or using Apple Pay, you miss the top tier cash-back rewards.

You might benefit from this card if:

  • You have an iPhone, especially if you’re prone to or like the idea of handling your finances via a single app on your device.
  • You’re an avid user of Apple technology and have already adopted Apple Pay and Apple Wallet.
  • You make a lot of purchases at Apple’s stores or using Apple subscriptions or the Apple app stores.

Alternatives to the Apple Credit Card

The Apple credit card is obviously not right for everyone. If you don’t have an iPhone, prefer Android or aren’t interested in using any or much technology for your financial management, you may want to opt for a different kind of credit card account.

For those who don’t fit the target audience for the Apple credit card, plenty of other rewards cards are available. Here are a few you might consider.

  • The Chase Freedom® Unlimited card comes with 3% cash back on your first $20,000 in purchases your first year as a cardholder. After that, you can earn 1.5% cash back on every purchase.The extra cash back your first year makes this card ideal in order to maximize your rewards. And the 1.5% after that is nothing is nothing to sneeze at.
  • The American Express® Gold card, which does require decent credit but offers some spectacular perks for those who love a fine dining experience or are always chasing the next fun foodie adventure. This card is also known as a great travel rewards card.
  • The Capital One® Quicksilver® card, which offers unlimited 1.5% cash back without limits. That makes this card an ideal daily swiper. And an APR of 0% intro on purchases for 15 months lets you double your rewards by making a large purchase and paying it off without interest in the first year or so.
  • The Credit One Bank® Platinum Visa® with Cash Back Rewards is a rewards card option for people with bad, poor or fair credit. It lets cardholders earn 1% cash back rewards on eligible purchase (some terms apply).

Apple isn’t the only—or first—company to enter the market of branded credit cards. If you like the idea of rewards that are brand-based, but you don’t use an iPhone or spend a lot at the Apple store, consider some of the options below.

  • The Montgomery Ward credit card that lets you buy now and pay later for hundreds of brands at Montgomery Ward.
  • The Kroger REWARDS Prepaid Visa® card that lets you earn rewards to use for free groceries and to save on gas.
  • The Official NASCAR® Credit card from Credit One Bank® that pays you double cash back on items purchased from the NASCAR.com Superstore (terms apply) and 1% cashback on all other purchases too.

Ultimately, there’s a credit card option for almost any spending or financial goal. Browse the selection of offers on Credit.com to find a card that works for your needs and preferences, including:

  • Cards for building or repairing credit, which usually start with lower limits that grow as you handle the account responsibly.
  • Balance transfer cards, which let you move balances from higher-interest accounts and pay them down faster to save money.
  • Rewards cards, which let you earn money on expenses you would be paying anyway, including travel, utilities, food and clothing.
  • Cards with no annual fee that let you avoid paying the card issuer to use your credit card.

Whether or not you’re approved for the Apple credit card or any of these other card offers depends on your creditworthiness. Review the information about each credit card carefully, ensuring you understand the offers, fees and rewards structures. Then, check your credit score—for free—and apply for a credit card on Credit.com.

1 https://www.cnbc.com/2019/03/26/apple-credit-card-read-the-fine-print.html

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

The post What You Need to Know About the New Apple Credit Card appeared first on Credit.com.

Source: credit.com

Why You Should Not Buy a Credit Privacy Number (CPN)

What Is a CPN, or Credit Privacy Number?

If you’re looking to repair your credit, you may have come across websites that advertise a credit privacy number, credit protection number or CPN. These numbers are nine digits like a Social Security number (SSN), and sellers claim that you can use them instead of your SSN. However, these CPNs are often actual SSNs lifted from real people, reportedly children, prison inmates and the deceased – and you can never legally buy a new SSN. In other words, a CPN is no solution to your credit rating problem. Under no circumstances should you try to buy a CPN.

Why a CPN is No Credit Fix

Websites have sprung up all over the internet, offering CPNs to people with bad credit or low credit scores. They advertise that this number can serve as a “get out of jail free” card for your bad credit. In theory, you can use a CPN instead of your SSN on credit applications to hide the poor credit associated with your personal SSN. If you have bad credit but still need a credit card or loan, this can seem like the solution, assuming you can pay anywhere from hundreds to thousands of dollars.

That price might seem worth it for a chance to wipe the slate clean. However, these offers are essentially a big scam. The CPNs you can buy online are not legally assigned credit protection numbers. Instead, they are usually stolen Social Security numbers, taken from children, the deceased or inmates.

Also, using a purchased CPN puts you in some hot water, too. Credit agencies can easily spot discrepancies if you try to use a CPN on an application instead of your SSN. Not only will this fail to help your credit, but it’s also committing fraud which is punishable by jail time.

How to Avoid CPN Scams 

What Is a CPN, or Credit Privacy Number?

If you’re dealing with some bad credit, don’t turn to a CPN. Only scammers sell CPNs, and they in turn may cheat you out of your personal information as well as hundreds or thousands of dollars. Using a purchased CPN can also put you in jail, even if you didn’t know the number was fraudulent. This is why it’s important to be aware of this popular scam.

If you really need a CPN or new SSN, it will be free. The process will go through the Social Security Administration Office, since a new number would be tied to your old SSN. That said, it is very hard to qualify to receive a new number. Having bad credit is never a qualifying reason.

How to Get a Legal CPN

With so many fraudulent websites and companies trying to sell you a way to reset your credit, it’s hard to know how to get a legal CPN. Unfortunately, there’s a lot of misinformation out there. Some experts say that you can speak with an attorney to obtain a legal CPN. The attorney can then contact the Social Security Administration Office on your behalf. However, others maintain that all CPNs are illegal.

Generally, it seems that you cannot get a legal CPN unless you actually need one. These situations include celebrities, government officials and people under witness protection. You can also apply in other specific instances, like if you’re a victim of abuse, stalking or identity theft. A real CPN would be attached to your SSN, so it’s still not an escape from the credit tied to your SSN.

You may also stumble upon offers to obtain an EIN, or Employer Identification Number. The IRS does issue EINs, but only businesses can use them for business costs. This means that you cannot legally obtain an EIN as an individual looking to improve your credit. You also cannot make up a home business, apply for an EIN and use that new number for a credit reset. It is a federal crime to obtain an EIN under false pretenses. In any case, the credit profile for your EIN is still tied to your SSN.

Bottom Line

What Is a CPN, or Credit Privacy Number?

You shouldn’t ever, under any circumstances, try to purchase a CPN. These offers are fraudulent and don’t provide any credit repair or relief. At the very least, buying a CPN wastes money you should put towards repaying your loans in the first place. At worst, you could go to jail for fraud. There are better, more constructive ways to repair your credit. If you’re truly in a situation that calls for a CPN, contact your lawyer for assistance.

Tips on Rebuilding Your Credit 

  • Of course, the best way to legally clean up your credit is to pay back your debts and improve your credit practices. A good place to start is to pay off your credit card debt with the highest interest.
  • Sometimes you’ll just have to wait for your bad history to fall off your record. Generally, negative info stays on your credit report for seven years. If you can’t get a debt collection removed from your credit report, for example, it’ll stay there for seven years. However, as time goes on, the toll it takes on your report lessens.
  • Don’t go it alone. If you have a good income, but you’re just bad at managing your money, a financial advisor can help. With guidance, you can make smarter choices – and even start growing your wealth. To find an advisor, use our free, no-obligation matching tool. It will connect you with up to three advisors in your area.

Photo credit: Â©iStock.com/becon, Â©iStock.com/Xesai, Â©iStock.com/Kerkez

The post Why You Should Not Buy a Credit Privacy Number (CPN) appeared first on SmartAsset Blog.

Source: smartasset.com

Best cards for food delivery and meal kit subscriptions

Credit cards for foodies are the latest trend, with more and more rewards programs and additional card benefits catering to both dining in and eating out. Restaurant and grocery bonus categories are becoming commonplace – letting cardholders rack up a few extra points or cash back on those purchases.

But what about those who prefer to order delivery? If you like to take advantage of popular food delivery services like DoorDash or Uber Eats or simplify cooking with a meal kit subscription, there are plenty of credit card rewards and benefits you can leverage to save a little money.

Finding the best card for your favorite services

Finding the best card for your favorite food delivery or meal kit service depends on a variety of factors, including the card’s yearly credits, special perks or rewards rate. For example, many dining cards offer bonuses that are tailored to a specific delivery service, as a monthly Uber credit.

See related: Food delivery perks on luxury travel cards

For meal kit services, matching rewards is a little more complicated. You could opt for a rewarding grocery card, as many meal kit brands are now partnered with major supermarkets – so you can buy them in the store.

Alternatively, a card that earns rewards on dining or online shopping can help you get rewards on both food delivery and meal kits. Earning dining rewards can be complicated, as not all delivery services have a merchant category code that qualifies for a point or cash back bonus. You can test it by making a small charge to your card and seeing what rewards you earn.

Online shopping rewards, on the other hand, are much more flexible. They apply to both web and app purchases, so whether your order from your phone or computer, you can rack up bonus points or cash back.

Best cards by delivery service or meal kit subscription

With all this in mind, here are some of our favorite cards for some of the most popular food delivery and meal kit subscription services.

Delivery service Card Rewards rate Why we like it
DoorDash Chase Sapphire Reserve
  • 10 points per dollar on Lyft purchases (through March 2022)
  • 3 points per dollar on travel and restaurants (excluding purchases covered by $300 travel credit)
  • 1 point per dollar on general purchases
  • Generous rate on dining purchases
  • Receive a yearly statement credit for DoorDash purchases ($60 in 2020 and $60 in 2021)
  • Get at least one free year of DashPass when you enroll with your card (activate by Dec. 31, 2021)
Uber Eats The Platinum Card® from American Express
  • 10 points per dollar on eligible purchases at U.S. gas stations and U.S. supermarkets, on up to $15,000 in combined purchases, during the first 6 months of card membership
  • 5 points per dollar on flights booked directly with airlines or with American Express Travel (starting Jan. 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
  • 5 points per dollar on eligible hotels booked with amextravel.com (starting Jan. 1, 2021, earn 5X points on up to $500,000 on these purchases per calendar year)
  • 1 point per dollar on general purchases
  • Terms apply
  • Get up to $200 in Uber credits per year ($15 per month, plus an extra $20 in December), which can be applied to Uber Eats
  • Up to 12 months of complimentary Uber Eats Pass when you enroll before Dec. 31, 2021
  • Automatic Uber VIP membership (where available) without ride requirements
Instacart Capital One Savor Cash Rewards Credit Card
  • 8% cash back on Vivid Seats tickets (through January 2022)
  • 4% cash back on dining and entertainment
  • 2% cash back at grocery stores
  • 1% cash back on all other purchases
  • Top-tier cash back on restaurant delivery, including most delivery services
  • Grocery bonus category includes eligible grocery delivery services, including Instacart
  • As a Mastercard, offers complimentary a 2-month Instacart Express membership if enrolled before March 31, 2021
Grubhub/Seamless/Boxed/Instacart/Uber Eats American Express® Gold Card
  • 4 points per dollar at restaurants worldwide, including Uber Eats orders
  • 4 points per dollar at U.S. supermarkets (on up to $25,000 in purchases per year, then 1 point)
  • 3 points per dollar on flights booked directly with airlines or amextravel.com
  • 1 point per dollar on other purchases
  • Terms apply
  • Enroll to receive up to $10 in statement credits per month (up to $120 per year) to use at participating restaurants, including Grubhub, Seamless and Boxed
  • Up to $120 in Uber Cash per year ($10 per month), which can be applied to U.S. Uber Eats orders (Gold card must be added to the Uber app)
  • Up to 12 months of complimentary Uber Eats Pass when you enroll before Dec. 31, 2021 (Uber Eats Pass will auto-bill starting 12 months from initial enrollment in this offer, at then-current monthly rate)
  • Excellent rewards on grocery delivery services, such as Instacart
HelloFresh Blue Cash Preferred® Card from American Express
  • 6% cash back at U.S. supermarkets (up to $6,000 in purchases per year, then 1%)
  • 6% cash back on select U.S. streaming subscriptions
  • 3% cash back at U.S. gas stations and on transit purchases
  • 1% cash back on general purchases
  • Terms apply
  • Generous rate on U.S. supermarket purchases (HelloFresh meal kits are sold in supermarkets such as H-E-B and Giant Food) and eligible grocery delivery services, such as Instacart
  • Unlimited 3% cash back on delivery purchases from ride-share services, like Uber and Lyft
Home Chef Blue Cash Everyday® Card from American Express
  • 3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)
  • 2% cash back at U.S. gas stations and select U.S. department stores
  • 1% cash back general purchases
  • Terms apply
  • Generous rate on U.S. supermarket purchases (Home Chef meal kits are sold in select Kroger locations)
Other delivery services Bank of America® Cash Rewards credit card
  • 3% cash back on a category of choice (gas, online shopping, dining, travel, drugstores or home improvements and furnishings)
  • 2% cash back at grocery stores and wholesale clubs
  • $2,500 combined limit on 2% and 3% categories each quarter
  • 1% cash back on other purchases
  • Generous rate on online shopping purchases (if you select it as your 3% category) and good rate at grocery stores
  • Can swap choice 3% category monthly to account for different delivery services. For instance, the dining category rewards Grubhub purchases and the travel category rewards ride share purchases from services like Uber

If you don’t have a delivery service you prefer – or if you like to switch back and forth based on restaurant availability – a card with rewards on online shopping is your best bet.

Bottom line

Ordering food can be expensive, but using the right rewards card can help you alleviate some of that cost by racking up points or cash back. With some cards, you might even get a few extras that cover your next couple of meals.

Source: creditcards.com

‘I Lost My Job—and My Dream House’: How This First-Time Home Buyer Bounced Back

houseKaterina Rieckel

Imagine finding your dream home, then, a week before closing the deal, losing your job—and the house. House hunting during the coronavirus pandemic is no picnic.

COVID-19 has caused seismic changes not only to real estate markets, but also to the lives of home buyers hit with layoffs, furloughs, and other financial challenges. Just ask Katerina Rieckel, a digital strategist, knitwear designer, and first-time home buyer who, with her husband, was set to close on a glorious farmhouse in upstate New York in March.

But about a week before sealing the deal, Rieckel was laid off, which meant that she and her husband, a claims adjuster, could no longer afford the place.

As a part of our new series, “First-Time Home Buyer Confessions,” we asked Rieckel to share her story, and the hard-won lessons she wants to share with other first-timers.

Let her experiences show that even unemployment doesn’t need to spell the end of a house hunt—although it may require you to dust yourself off after a loss and try, try again.

home
Katerina Rieckel’s farmhouse in upstate New York

Katerina Rieckel

Location: Troy, NY
House specs: 1,544 square feet, 3 bedrooms, 2 bathrooms
List price: $249,900
Price paid: $245,500

2020 has been a wild one. How did you end up buying a home in the middle of a pandemic?

We started looking for a house a year ago, about halfway through the summer. At the time, both my husband and I had recently got new jobs, so the first issue we ran into was getting pre-qualified for the mortgage without a long track record at those companies. We also both felt pressure, as our jobs were very new.

What were you looking for in a house, and what was your budget?

We were looking for a house in the country that was move-in ready, private with at least 5 acres. We started off with a small budget, max $200,000, which made our choices more narrow.

Our search continued well into the winter, and around January 2020, we finally saw a house that was all we ever dreamed of and more. It was over our budget, at $229,000, but it had been listed for over a year, so we felt there was a good chance we could get it for less than the asking price.

What did you love about this house?

It was a beautiful, slate-blue farmhouse sitting on top of a hill, surrounded by woods. The house was warm and inviting, with chickens running around, as well as a big diving pool, and a workshop in the basement connected with a two-car garage. We got along with the owners really well, and we were going to keep the chickens. Everything went very smoothly, until just over a week before closing.

house
Rieckel and her husband almost bought this house, but it wasn’t in the cards.

Global MLS

So what went wrong?

It was March, and COVID-19 hit hard. The digital marketing agency I worked for had clients pause their work for unknown time. I was laid off, which meant we couldn’t afford the house anymore, and had to back out of the deal.

I was crushed. We didn’t know what was going to happen, and the country was under a lockdown. We had plans for my parents to come visit us in our new house, but instead, I ended up with no job, no house, and I couldn’t see my family, since they live in Europe.

In the summer, I was very fortunate to get my job back. So we resumed our house hunt and began to search for a new contender.

When you started the search again, how had COVID-19 changed the market?

The housing market in upstate New York got totally crazy. I heard there were houses being sold within hours. The market was just incredibly competitive, and not many houses were being listed, as a lot of people didn’t want to let strangers in their house during the pandemic.

We saw about seven to 10 houses in person, but they usually ended up disappointing us, with some strange arrangements. For example, one house had around 25 acres, but half of that acreage was on the other side of the road, behind other people’s houses, which made it almost impossible to use.

home
The couple’s pet cat has settled into their new digs, too.

Katerina Rieckel

With such a competitive market, how did you end up finding the right house?

Finally, around halfway through the summer, I saw a house listed that I hadn’t noticed before. I called on it right away and set up a showing that evening.

The real estate agent told me we were really fast, as he had just relisted this house. Someone had been buying it, but backed out of the process because of personal reasons.

porch
Their house has tons of privacy and a great view.

Katarina Rieckel

How did you know this house was the one?

The house had over 10 acres, it was in the country, and about 35 minutes to Troy. It was move-in ready, but definitely needed upgrades, as it looked like it got stuck in the ’80s.

Even though we didn’t like the style that much, we felt instantly comfortable and decided to put in an offer that same evening. It was partly due to the pressure of the market, but in the end, we are really happy we made this decision.

house
This house was totally 1980s, but Rieckel has been slowly updating it.

Katerina Rieckel

What surprised you most about the home-buying process?

Nothing prepares you for the amount of aggravation you have to go through. Buying a house is like getting a second job for about three months.

living room
After a little work, Rieckel’s home looks lovely.

Katerina Rieckel

What’s your advice for aspiring first-time home buyers?

Don’t trust the photos! The photos got me a few times. For example, a lot of times, the photos of the house are taken so that you can’t see the neighboring houses.

You think, “Wow, that looks so private!” Then you drive there, and you realize there’s a house sitting right next to it. Since privacy was very important to us, we got disappointed a few times by this. We started doing drive-bys first, before going in with a real estate agent, whenever possible.

Christmas decorations
Rieckel moved in in time to enjoy her new home for the holidays.

Katerina Rieckel

Anything else home buyers should look out for?

Call the real estate agent and ask a lot of questions before you even go see the house, like what the property and school taxes are—very important around here.

You also want to know what kind of heating the house has, as electric bills can really add up over the winter.

The driveway can also be a huge issue, which is why I think the first house we were buying was for sale for such a long time. It had a pretty steep driveway, which was definitely an all-wheel drive kind of thing in the winter.

We also changed who we were financing with while we were going through closing. We needed someone well-informed about the economy, who knew what they were doing and was ready to act fast.

Our first mortgage broker didn’t tell us as soon as interest rates started to go up—and basically sat on the information for a while. This is when we stopped trusting this person and went to work with a bank instead.

Maybe the best advice is not to fall in love with a house too quickly, since there can be so many setbacks that you will not see coming.

Katerina Rieckel
It took a little longer than expected, but this family is finally happy in their new home.

Katerina Rieckel

The post ‘I Lost My Job—and My Dream House’: How This First-Time Home Buyer Bounced Back appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

How to Set a Realistic Budget for Christmas Shopping

The post How to Set a Realistic Budget for Christmas Shopping appeared first on Penny Pinchin' Mom.

INSIDE: Christmas shopping can easily get out of hand. Learn how to set a Christmas budget so you can make it a great one without doing into debt.

You need a budget, especially at Christmas. Here’s how to set a Christmas budget for your family that works!

To set a Christmas budget, decide what you can afford to spend this Christmas

Knowing how to set a Christmas budget comes down to what you can comfortably afford. How much money do you make per month? Now subtract all your expenses? How much is left over? How much of the leftovers do you feel comfortable putting towards gifts? 

There’s no magic number for exactly how much you should spend on Christmas. Each family has a different budget and different circumstances. But, be reasonable. Don’t go into debt in order to buy gifts.  

Once you’ve come up with a number that is right for you, write it down and stick to it. If you want to buy a family member something special but it’s over budget, then either wait for it to go on sale or come up with a new plan. And don’t be so hard on yourself.

Avoid falling for the “perfect Christmas myth.” Your kids will be okay if they don’t get every single thing on their list. Don’t go over budget because you’re trying to make the holidays perfect. And it’s never a bad idea to teach your kids about a holiday budget.

  • Pro tip: You can still have a magical Christmas on a budget — get our tips on How to Do Christmas on a Budget.

If your budget is lower than you want it to be, consider ways you can make more money for Christmas.

Our best tips for staying on budget this Christmas

In order to set a Christmas budget and stick with it, try these tips…

Keep gift-giving simple 

When it comes to my extended family we’ve been doing Secret Santa style gift swaps for years. Not only does this reduce the amount of money that you need to spend, but it also reduces the stress of trying to come up with a thoughtful gift for every uncle and cousin that you only see twice a year. 

Make a list and stick to it

Once you’ve decided on a gift-giving strategy then you’ll know exactly who to need to buy gifts for. Create a list of names and determine how much you can budget for each person. Based on your list you can start brainstorming gifts that align with your budget. 

Give experiences, not things 

If you’re having trouble deciding what to give people for Christmas remember, give experiences, not things. Experiences are more meaningful then things and the memories you create from a good experience can truly last a lifetime. Passes to a museum, amusement park, or a gift card to a fantastic restaurant are great gift ideas. 

How to save money on Christmas gifts to stay on budget 

Between gift-giving and holiday entertaining, Christmas can get expensive. That’s why you set a Christmas budget to begin with. But, in addition, here are some gift-giving tips to help you stay on budget:

Follow the four gift rule

When it comes to the act of gift-giving, keep it simple. There are a ton of super fun gift-giving strategies that allow you to celebrate the tradition of giving without spending a fortune. My kids are still young but we’ve started practicing the four gift rule which is: 

  • Something you want
  • Something you need
  • Something you’ll wear
  • Something you’ll read

This is a great strategy to help keep you on budget while shopping for Christmas gifts. 

Give a gift card

Yes, you can argue that a gift card doesn’t qualify as a super thoughtful or meaningful gift. All I know is that I would prefer a gift card over an ugly sweater or smelly candle. Also, gift cards are a great way to stay on budget. All you have to do is pick an amount, or assign an amount that fits your budget. No waiting for a sale and no overspending necessary. 

Give a homemade gift for Christmas

Are you super artistic, an excellent baker, or a woodworking genius? Then consider giving a homemade gift to help you save money and stick to your Christmas budget.

There’s a reason why online marketplaces like Etsy are so popular. It’s because there’s a demand for beautiful homemade products. However, if the extent of your creativity involves a glue stick, macaroni, and glitter then perhaps this is not the budget-saving tip for you!

Advantages of shopping for Christmas all year 

If you’re a planner, this strategy could work for you. Although it’s strange to start to think about Christmas shopping in March or April, there are a lot of advantages when it comes to Christmas shopping all year, as opposed to saving it all for November or December. So, start celebrating Christmas in July and reap some of the financial and emotional benefits.

If you can wrap your head around the idea of shopping for Christmas gifts all year long then there are quite a few major advantages to doing it this way: 

It’s easier to stick to your Christmas budget

Can you even imagine the Christmas holidays without last-minute panic shopping? Even if you set a Christmas budget, it can easily get blown away when that happens.

When you break up your Christmas shopping over several months or even an entire year, you can make a plan. You can shop for items when you know they’re on sale, and you can take some time to save for things before making a purchase. This can help you avoid going into a ton of debt at Christmas time. 

According to a report by Statista titled, “U.S. Christmas Season,” the average American expects to spend $846 on Christmas gifts. If this seems accurate for you, then divide this by twelve months and you can set a ballpark budget of $70.50 per month. 

Early shopping means you can avoid the crowds 

While 64% of U.S. consumers purchase gifts online, many of us also find ourselves in a mall during the holidays. And, in my personal opinion, there is nothing worse than a crowded mall at Christmas. Everyone seems to be grumpy, in a rush, and deplete of holiday cheer. No thank you. 

It can result in more thoughtful Christmas gifts 

When you have a list of people you need to buy gifts for and months to do it you can take the time to come up with more thoughtful gifts. This is opposed to the regular last-minute shopping sprees where you are trying to think of something, anything that would make a decent present for your nephew or second cousin. 

It can make the holidays less stressful 

Wouldn’t it be nice to have some time to relax around the holidays? How would it feel to sit down with a warm coffee or a nice glass of wine on December 23rd instead of searching for last-minute Christmas gifts in a crowded store?

When you shop for Christmas all year round, you don’t need to be at the mall searching for a parking spot with everyone else. You can take some time to relax and really get into the holiday spirit. 

You can go into the new year on a financial high note

It’s all fun and games in December but January can be a real bummer if you overspend during the holidays. When you shop for Christmas gifts all year, you can start January on a high note and focus on achieving all of your New Year’s resolutions rather than waiting for your scary holiday credit card bill.  

Don’t forget to budget for each family member’s Christmas gift 

If you like the idea of shopping for Christmas gifts throughout the year, then it’s a good idea to still set a Christmas budget. Just as you can overspend during the last-minute Christmas rush, you can also overspend on Christmas when you’re shopping throughout the year if you don’t have a plan.  

Remember what Christmas is really about

This Christmas give yourself the gift of more time, less stress, and less debt by shopping for holiday gifts all year long! This strategy will give you the ability to focus on the things that really make the holidays special — the people, the traditions, and the memories! 

And that brings us to Christmas dinner! Discover how to create a budget for Christmas dinner too!

–By Jessica Martel 

The post How to Set a Realistic Budget for Christmas Shopping appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com