Category: Financial

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Debt Financial

Ally Bank Does Away With Overdraft Fees

Ally Bank Does Away With Overdraft Fees

One of the most annoying features of banking in America has been eliminated by one financial institution. And it’s already receiving rave reviews from customers and promising a change for the entire industry. Overdraft fees are no longer charged by Ally Bank to any of its clients. Starting in April 2020, the bank will temporarily eliminate certain overdraft costs due to COVID-19 problems. This is a more permanent change for many big banks, and it is the first of its sort.

Ally CEO Jeffrey Brown stated in a message to customers: “Overdraft fees are a source of frustration for many consumers, but they are especially burdensome for others. It’s past time to put a stop to them.”

This is fantastic news for clients, and it might herald a sea shift for giant banks. Those who have long profited handsomely by charging tiny fees to large customer bases. Overdraft fees have long been seen as one of the most inconvenient and inevitable aspects of banking in the United States, but that perception may be changing.

What is an overdraft charge, exactly? Consider the following scenario: you write a check or are charged for a regular online payment, but your account balance is insufficient to cover it. Banks will often charge you an “overdraft fee” if you force them to pay the amount for you.

Why No More Fees?

Overdraft fees alone brought in $4 billion for America’s top four banks: Chase, Wells Fargo, Citi, and Bank of America. They make a lot of money only from overdraft fees, as you can see.

A bank may handle a rejected check for less than $1  and sometimes even less than that. Banks have progressed beyond passing on those costs to charging a huge, profit-driven multiple of their own costs.

Lower-income families are more likely to be harmed by these fees since they are more likely to be short on cash. According to a poll released recently, those who lost money during COVID-19 paid more than four times as many fees to institutions.

According to the Consumer Financial Protection Bureau, 5% of checking account customers overdraw their accounts more than 20 times each year.

Ally has consistently been called one of the finest online banks in the country. They receive high marks from customers across the board. Clark likes online banks over conventional banks, along with credit unions, since the excellent ones have low costs.

This isn’t the first time Ally Bank has taken such a step. Fees were removed by Discover Financial in 2019. Some banks that claim to have eliminated overdraft costs, simply do not accept overdrafts. Others provide “overdraft protection.”

Consumers will be pleased with Ally’s decision, and it may be a splash that will reverberate across the banking industry.

Overdraft fees have long been seen as part of the price of doing business with banks. However, this change with Ally shows that might not be the case much longer. After the wonderful reaction Ally got, it is likely that other banks might follow in its foot steps and eliminate their own overdraft fees soon.

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Financial Savings

Budgeting: 7 Things That Will Hinder Your Finances

7 Things That Will Hinder Your Finances

Coffee is widely spent on, especially if it’s a Starbucks. One cannot go by the day without coffee. While, it has become a support system in our lives, it is also one of the causes of wreaking chaos in our financial management. That being said, you cannot just manage your finances by cutting back on coffee. Here are 7 things that are possible hindrances to your finances:

1.   Neglecting budgeting

This should be a no-brainer. You can watch your money being spent but you don’t know where half of it went. When you start budgeting, you will know where your money went instead of just wondering about it. This will also help you in avoid buying unnecessary things.

2.   Working on a consistent salary

You need to start thinking of yourself as worthy enough to ask for a raise. If you have been working in a company for almost 3 years and you are still on the same salary package, it affects your finances. With inflation everywhere, your stable income won’t be of any use to you unless you buck up and ask for a raise. 

3.   Buying things you cannot afford and budgeting

Do you really need that car? Or a new place to move into? All of these decisions impact your finances. Buying things that give you no value can be cut back. The money can instead be put in a savings account. If you are taking loans just to fulfill your materialistic desires, it will affect your life. You will eventually be caught up under the pile of loans.

4.   Remove your Starbucks addiction from your finances

You don’t need to give up on coffee altogether. However, you can simply cut back on the number of coffees you have every day. If you have 4 cups of Starbucks, cut it down to three, two, and then one. You will notice how much money you save just by cutting back.

5.   Ignoring credit

You need to build up your credits. If you don’t focus on that, you can’t qualify for easy loans and low interest rates. A good credit history and score can help your finances in a number of ways. Building credit is not a day’s work but takes years to do so. So, start building your credit for your financial benefit.

6.   Not setting your financial goals

Not setting your financial goals also impacts your finances. You can get into spending loads without even thinking about the future. Set a savings goal every month. This will help you in spending money within your set limit. This will also help you to achieve future financial goals.

7.   Taking the same route

This might sound funny, but changing your daily route also helps. Take a route that doesn’t have Starbucks right around the corner. It will automatically help you control your urge to buy coffee every time you pass around it. Believe it or not, this will save you money and create a positive impact on your finances.

Saving up and helping your coffee addiction are parallel concepts that are linked together. So, don’t give in to your addiction and save your finances!

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Financial Savings

10 Ways To Save Money During The Holidays

10 Ways To Save Money During The Holidays

In the trail of creating a holiday budget, most people end up overspending and buying products that they don’t usually need other than for a few days. If you think that you might be on the overspending wagon this holiday season, you can practice the 10 tips below to become a money-saver.

Saving money is undoubtedly one of the best personality traits of the most successful people. Besides, there’s no better way to enjoy your holidays than knowing that you spent less without missing out on the festivities.

1.    Track Spending through Cash

On a card spending spree, it’s hard to know that you have overspent until you receive the bill. Running to the ATM and then back to the mall will ensure that you’re mindful of how much you’re spending.

2.    Double-Check Shopping Checklist

Done with the shopping checklist? Double-check it attentively and think about the things you’ve listed down. Do you really need them all?

3.    Plan for the Holiday in Advance

Don’t forget the power of budgeting because that’s how you can set a monitoring framework to know how much you should spend to save a certain amount.

4.    Try Home-Food and Less Treats

Holiday seasons bring a joyous mood. So much so that you forget to track how often you’re treating yourself. Avoid going for “lunch-outs” so you can save more money.

5.    Go for Homemade Presents and Gifts

Showing up on a party with the most expensive gifts is amazing. However, bringing a homemade cake that you put effort and time into shows the same if not more gratitude.

6.    Use Real-Time Spending Trackers

Don’t worry if you’re not well-versed in monitoring financial spending because there’s a sea of applications that can let you know when you’re about to go overboard with your spending.

7.    Shop in Advance for Discounts

During off-peak seasons such as months before holidays and festivals, companies sell products and gift-like items at lower prices. Plan to shop accordingly and benefit from discounts.

8.    Go for Bulk-Shopping

If you really have a long list of household and holiday essentials, the best course of action is to visit cheaper stores. While you may get more than you need, you will also save money in the long run, especially when it’s toiletries and cooking ingredients.

9.    Avoid Sending Physical Post-Cards

You can send e-cards and e-postcards to friends and family, especially if you’re out of the country or city. Electronic messages show the same gratitude but are cheaper financially.

10.  Plan on Gifting Cookies

Christmas and New Year’s Eve have always encompassed cookie gifts, so cut back on the expensive gifts if you’re on a tight budget because cookies can make the neighbors smile just as much.

Conclusion

Don’t underestimate the power of saving loose change regularly because a dewdrop is what creates an ocean, as most successful people have believed. In addition, if you think that you’ll miss out on a special occasion or festivities due to a low budget, try going for alternatives to keep the excitement and fun constant. In other words, aim for the long-term!

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Financial Government Grants Loans

Federal Grants, Loans, And Programs for Veterans

Federal Grants, Loans, And Programs for Veterans

Americans have long been appreciative, proud, and protective of their military heroes. They sacrifice so much for the honor and safety of our country and deserve nothing but the best. Thankfully, the federal government provides a wide range of awards and programs tailored specifically for veterans. Veterans in all military branches may rest confident that once their duty to our nation is through, our country will look out for them thanks to a number of federal programs that address a variety of needs, including housing, employment, education, and even medical care.

Federal Programs For Veterans

Hundreds of organizations are available to help our country’s military members even after their tour of service is over. The federal government has made significant progress in ensuring that military men and women have enough chances to attain the American Dream during and after their duty, from educational possibilities to joining the job, home requirements to medical care. Veterans are encouraged to go into the many viable alternatives and take advantage of the loans, grants, and programs offered by the federal government and the American people as a way of saying “Thank you for serving our country.”

The Post-9/11 GI Bill, Montgomery GI Bill-Active Duty (MGIB-AD), Montgomery GI Bill-Selected Reserve (MGIB-SR), Reserve Educational Assistance Program (REAP), Post-Vietnam Era Educational Assistance Program (VEAP), and the VOW to Hire Heroes Veterams Retraining Assistance Program are the six main federal grants that help veterans afford career training or a college education.

Small Business Loans

There are options when it comes to small businesses for veterans as well. The Small Business Administration (SBA) offers small business loans and grants to all Americans, including veterans. You can read more about this at FederalGrants.com: Small Business Grants. It is important to keep in mind that The Veterans Administration does not provide small business grants to veterans.

Housing Grants

The US government offers two grants to assist handicapped veterans in purchasing or modifying a house to fit their health needs. The Specially Adapted Housing Grant helps veterans with certain impairments build. It also helps them to renovate a home so that they may live freely. The Special Housing Adaptation (SHA) Grant is for veterans who want to buy a house that has already been modified to accommodate their handicap, or who want to modify an existing home that they or a family member owns.

Additionally, the government offers vets home mortgage loans with better conditions than those offered by commercial banks. The four programs that deal with this are VA Home Purchase Loans, VA Cash-Out Refinance Loans, Interest Rate Reduction Refinance Loans, and the Native American Direct Loan Program, all of which are offered by the Veterans Benefits Administration.

Health Benefits For Veterans

The US government provides health benefits to all veterans (with the exception of those who have received a dishonorable discharge). The Department of Veterans Affairs provides these healthcare benefits. Hospitalization, outpatient treatment, medical specialist services, dentistry, vision, and preventative care are among the services provided. Healthcare services are offered for free if a medical condition is connected to their service and income limitations are satisfied.

Conclusion

Through these many federal grants, and so many more, veterans will feel respected and taken care of. And they should. These grants are the least an appreciative government and society can give back.

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Business Career & Education Financial Government Grants Loans

How to Apply for Federal Grants

How to Apply for Federal Grants

There is no doubt that a federal grant is a great way for a business or individual to secure a monetary amount that help shape their financial future. It’s the difference between surviving and thriving for many and it can be a literal game-changer. But finding, applying for, and receiving a loan is much easier said than done. In fact, it’s often times incredibly hard to determine the best course to finding a federal grant that is right for you and your business.

Federal Grant Application

One of the most difficult aspects of the federal grant application process is determining which awards a person, small company, or organization is interested in and qualifies for. After all, with hundreds of grants to apply for, limiting the field may take up a substantial amount of time for a potential candidate.

A prospective grantee’s initial action will almost certainly be to register with the organization. In order to apply for a grant, an individual or organization must first register with the federal government. Depending on how well the individual phases of registration are done, registration can take anywhere from three to two weeks.

The Grant Application

The Grant Application package is the next step for potential grantees to take. Applicants will next require their CFDA Number, which is issued to the program for which the grantee is applying, as well as the Funding Opportunity Number and the Funding Opportunity Competition ID. Each of these identification numbers should be mentioned in connection to the grant for which the applicant is requesting.

Once the application has been retained, the applicant is responsible for reading through the pages of queries and saving modifications as they go. The initial pages of the grant application will clearly state the instructions and requirements for applying, which may contain extra items such as grant proposals. To save both the applicant and the federal government agency examining the grant hours of time, grants will not be allowed to be filed online until they are entirely completed.

After completing the grant application, an online applicant only has to click “save and submit” on the cover page to send it to grants.gov, where it will be routed to the appropriate department and people. When a submission is complete, a confirmation page will display, and a tracking number will be supplied in case of support or online submission problems.

Conclusion

Each grant has its own thorough application that explains everything a potential candidate needs to know before and throughout the application process. Potential grant beneficiaries will find that collecting and completing an application is one of the most straightforward elements of applying for and getting a federal grant, thanks to the availability of online registration and federal grant applications, as well as comprehensive instructions. Thanks to modern technology and advances, applying for a federal grant is far easier than it ever has been before.

The thing to remember when applying for a federal grant is that the process does take a lot of time. But most of the time isn’t spent on actually applying. Instead, the schedule is usually filled with deciding which grant is right for you and your business.

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Credit Debt Financial

You’ve Maxed Out Your Credit Cards, What’s Next?

Steps to Take When You’ve Maxed Out Your Credit Cards

Consumer debt related to credit cards is a significant issue in the United States. According to Debt.Org, more than 191 million people have a credit card in America. As a result of this, many people struggle with maxed-out cards and knowing what to do when that happens.

Whether you’ve done a little too much online shopping, or you needed to get caught up on bills and other responsibilities, maxing out your credit cards is common. In this article, we’ll highlight those steps and go into detail on how to perform each one.

Stop Using Your Cards

Many credit cards will automatically decline purchases that exceed your available balance. However, if you’ve opted-in to a policy that allows overcharging, it’s best to stop using the cards completely once you’ve reached the limit. After all, this cuts off any possibility of escalating the issue if you don’t add to the amount of debt you owe.

If you used any of your credit cards to pay for subscription services, it’s important to cancel them or transfer the subscription to a debit card. While we’d recommend canceling the service, moving to a debit card is okay if it’s necessary.

Plan Out a Budget

Before you start paying off your credit card debt, it’d be beneficial to plan out a budget and means of payment. Doing this will prepare you for what’s coming in terms of your financial situation. Having a solid plan can also help keep you on track to pay your debt off as soon as possible.

While it may be tempting to make only the minimum payments on your cards each month, it’s more beneficial to pay as much as you can. Paying more than the minimum requirement will offset any interest payments that are tacked on and speed up the process.

Pay Off Your Debt

Once you’ve stopped using your cards and you’ve mapped out a budget, it’s time for the hardest part: paying the debt off. There are several ways you can do this and whichever plan you choose will largely depend on your current financial situation. Here are the main ways you can pay off your credit card debt:

  • Pay it in full: This is certainly the quickest option, however, it isn’t feasible for everyone. Unless you have a significant amount of money in your account, paying in full isn’t an option. This is likely the case for a majority of credit card holders.
  • Negotiate with your credit card company: If you’d like to stop using your cards altogether, some companies may allow you to negotiate a lower payback price. If you choose to do this, it may be worth asking for expert help.
  • Make extra payments when you can: The amount you’re able to pay will depend on your income. If you find you have some extra leeway money in your account, consider putting that toward a credit card bill.
  • Use credit card rewards if possible: Some credit cards come with a rewards program. To help alleviate your balance, you may choose to use any accumulated rewards to put toward a statement credit.
  • Utilize debt consolidation: Debt consolidation is a popular option for paying off debt. If you have a good credit score, you may consider taking out another card with a 0% APR on balance transfers and low interest rates. You may also choose to do this with a personal loan from your bank.

Parting Thoughts

Dealing with any type of debt is certainly stressful. Luckily, credit card debt is easily fixable so long as you have a solid budget and repayment plan. To pay off debt, the most important thing you can do is be smart about your spending while paying off your debt and after you’ve successfully paid them off.

By following the steps we’ve highlighted in this post, you’re setting yourself up to pay off your credit card debt as quickly and efficiently as possible.

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Financial Loans Real Estate

Low-Income Home Loans: What Are Your Options?

Low-Income Home Loans: What Are Your Options?

Working a job that provides a low-income can make homeownership seem like an impossible goal. Luckily, there are a variety of options available to assist those with a low income in buying a suitable home.

In this article, we’ll cover some of the most well-known home loans that cater to low-income individuals and families in some way.

Homeownership Vouchers

The Housing Choice Voucher (HCV) allows families assisted in the program to use a voucher to purchase a home. Families will also receive monthly assistance to help with household expenses. The voucher is only available to those families who are enlisted in the program. It’s also not available in every single housing authority.

Other qualifications for this home loan program are to meet specific income requirements as well as having gainful employment. Participants also need to be first-time homeowners, attend and complete a housing counseling program, and meet any other local eligibility requirements.

Indian Home Loan Guarantee Program

Indigenous people and native Alaskans make up some of the poorest populations in the United States. Because of this, the Indian Home Loan Guarantee Program was created. This program is exclusive to native people and guarantees them a reasonable home loan through private financial institutions.

In order to qualify for this program, you and your family must be enrolled members of your native tribe. You must also be in the process of searching for a home. The maximum loan length through this program is 30 years and there are no prepayment penalties either.

HomeReady and Home Possible Loans

Home Possible and HomeReady are two different loans but they have very similar benefits. HomeReady is a loan program backed by Fannie Mae. It is meant to help low-to-moderate income homeowners either buy or refinance their homes. They do this by reducing the standard down payment and mortgage insurance requirements.

Home Possible is backed by Freddie Mac. It is essentially the same as HomeReady, except that it requires a slightly higher minimum credit score to apply. This is perhaps the most helpful for the general population of low-income individuals as a lower required down payment means you don’t need to save nearly as much in order to purchase your home.

Good Neighbor Next Door

The Good Neighbor Next Door Program is an exclusive program to firefighters, K-12 teachers, law enforcement officers, and emergency medical technicians. The loan allows those in these professions to purchase a home at up to 50 percent less than the list price so long as they promise to live in the residence for at least three years.

Down Payment Assistance

Although it’s not technically a loan on its own, down payment assistance can be paired with your loan to decrease the amount you need to pay down on your house. There are approximately 2,000 down payment assistance programs across the country and they’re typically run through the city government.

There are four main types of down payment assistance: grants, loans that are paid alongside your mortgage, loans with deferred payments, and loans that are forgiven after a number of years. This assistance is typically used by first-time home buyers and past homeowners can use most programs after three years of not owning a home.

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Career & Education Education Financial Government Grants Loans

Furthering-Your-Education Grants

Furthering-Your-Education Grants

Introduction

Millions of hardworking Americans are having to adapt to fewer jobs or limited options by furthering their education in order to increase their value in a competitive job market, and the federal government offers a variety of options for prospective or current students who want to further their education.

Aimed towards a variety of fields of study and demographics, new college students and diligent adults wanting to continue their schooling are urged to check into the dozens, if not hundreds, of government grants that are available to help them thrive in their profession. These grants are the key to going through school, studying hard, and finding a career that is right for them. It’s a major difference maker for millions of people who want to study hard and worker harder but require some assistance to meet their goals.

Education Grants

Many of the most positive grants available to students through the federal government are basically scholarships, which are offered by government agencies such as the US Department of Education’s Office of Student Financial Assistance Programs, or specialized foundations named after the scholarship.

Some federal furthering-your-education grants adhere to a wide range of interests, and simply target a particular demographic, such as minorities, or American Veterans. Students who do not fit into a specific subject or demographic will also have choices. The US Department of Education manages the Federal Pell Award Program, which is more of a “blanket” grant that may cover a wide range of career ambitions, age groups, and general sorts of students over the age of 18. Essentially, a demonstrated and demonstrable need for financial help is the most important criteria for awards like the Federal Pell Grant.

Learn More About These Grants

Furthermore, candidates should be aware that Education Grants can come in a variety of formats. While scholarships and direct disbursements of cash for educational reasons are perhaps the most popular awards, long-term, low-interest loans are also available to assist pay the costs of school, housing, household expenditures, and other necessities for both full-time and part-time students.

Colleges, universities, and private schools all have their own set of awards to assist improve the quality of their educational equipment, personnel, and materials, which benefits present and future students indirectly.

Conclusion

With help from the federal government, potential students of all abilities and ages, and at all phases of life, will be able to further their careers and, ideally, their income. The educational scholarships offered by the Federal Government are designed for prospective students who need it the most and cannot afford a higher education without aid. They help guarantee that everyone has a chance at achieving their professional goals while also creating a wiser, more educated nation.

For generations now, countless Americans have turned to the federal government for help when it comes to going to school. And truly billions upon billions of dollars have been spent to create a base of Americans that is hard-working and devoted to learning more There is money available for most students looking for higher education, they just need to know where to find them.

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Financial Real Estate

End of Mortgage Relief May Boost Housing Inventory

End of Mortgage Relief May Boost Housing Inventory

As mortgage relief comes to an end, there’s going to be an onslaught of homeowners looking to sell their home, in order to pay for the mortgage and avoid foreclosure. Statistics show that there are more than 1.5 million homeowners who are 90 days late or more on their mortgage and aren’t in foreclosure.

So what does that mean for the housing market? What will the next few months look like? Read on for more details on what is going to happen and how the housing inventory is going to boost.

What is Going to Happen?

It’s predicted once those on mortgage forbearance programs leave in the next few months will increase the number of homes for sale by 15 percent. This increase is said to start showing in September and October when the federal forbearance programs end.

It’s also possible that the CARES act, which included the COVID mortgage forbearance, could be extended again. But, if that isn’t the case, there are a few things that homeowners who participated will have the option to do:

  1. Reinstatement: Here, you’ll pay a lump sum that covers the total amount your payments were reduced during forbearance along with interest and fees that accumulated during that time. Once reinstated, you’ll resume paying just as you did before forbearance.
  2. Repayment Plan: This method divides up the total amount you accrued during forbearance into a series of smaller payments. This is negotiable and payments are typically broken up into increments up to 12 months.
  3. Mortgage Modification: If you modify your mortgage, you completely change your whole loan to make monthly payments lower. Whatever you didn’t have to pay duing forbearance will just be added into your remaining balance.

How Will the Housing Inventory Boost?

In May 2020, there were approximately 4.7 million people in active forbearance during the shutdown. July of 2021 saw that number fall to around 1.9 million people. A Zillow report assumes that roughly 25% of those borrowers listed their homes in order to escape foreclosure. If that trend continues, the housing supply will increase by 31% with 26% of those houses being sold within the next three months.

This is going to be quite the change from the current supply as it’s currently at its lowest level in a long time. In fact, this is the lowest level the housing supply has been at since it was first tracked in the 1980s.

Parting Thoughts

Although the end of mortgage relief may mean some are forced to downsize, it will bring newfound relief to those who have been on the hunt for a while. If a new mortgage relief program isn’t proposed or passed before the end of the CARES act, the market boom is expected to have the most buzz between October and January.

If you’re participating in the mortgage forbearance program, you may want to start preparing yourself now. For those of you who have been on the hunt for a new home for a while now, it’s time to start getting excited again.

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Financial Government Grants Loans

Federal Grants: Who Is Eligible For Them?

Who Is Eligible For Federal Grants?

Federal grants are a helpful financial sum that can be awarded to many different types of parties for many different types of needs. Many businesses, organizations, individuals, and non-profits are given federal grants annually and the difference they make is able to help them survive and even thrive.

But Who Is Eligible For A Federal Grant?

Are they given to just anyone or are there specific rules and regulations that decide which applicants are given and denied these grants?

It’s critical to figure out who is eligible to apply for and get a government grant. If a group or person is not legally qualified for a certain financing opportunity, they will spend a lot of time and money filling out the application just to find out that you are not eligible for the award. If you are a part of one of these organizations, it is smart to study the rules beforehand so you know your chances at landing a federal grant.

There are many types of organizations generally eligible to apply for funding opportunities on the official website located at Grants.gov. Each type of organization is listed on that site. Here are just some of the ones you will find there.

Government Organizations

  • State governments
  • County governments
  • City or township governments
  • Special district governments
  • Native American tribal governments (federally recognized)
  • Native American tribal governments (other than federally recognized)

Education Organizations

  • Independent school districts
  • Public and state controlled institutions of higher education
  • Private institutions of higher education

Public Housing Authorities

  • Public housing authorities
  • Indian housing authorities

Nonprofit

  • Nonprofits having a 501(c)(3) status with the Internal Revenue Service (IRS), other than institutions of higher education
  • Nonprofits that do not have a 501(c)(3) status with the IRS, other than institutions of higher education

Additionally, individuals may submit applications and may be awarded them too. There are multiple reasons why an individual would apply for a federal grant but most of the applicants that attempt to get a grant from the government are doing so on behalf of an organization, company, government, or institution. However, if you are registered with only an individual applicant profile, you are only allowed to apply to funding for individuals. Only official groups are able to apply for group grants.

Another major and important type is the Federal Pell Grant. You have likely heard of this type of grant before. A Federal Pell Grant is ideal for students and is used by millions of college applicants every year. Pell Grants are a type of federal financial aid that might help you pay for education. The money you obtain from Federal Pell Grants does not have to be repaid, unlike loans. Undergraduate students are often eligible for Pell Grants.

Although many groups and organizations apply, the largest source of federally funded grants is the Federal Pell Grant. For the 2020-2021 academic year, the maximum amount given in a Federal Pell Grant is $6,345.