Category: Financial

Learn from our financial experts who provide clear advice and tips on everything from taxes to loans and all that is in between.

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Credit Financial

Credit Card Points: Rule of Thumb for Redeeming

Rule of Thumb to Redeem Credit Card Points

Are you unsure of how to redeem credit card points? If yes, let us discuss the rule you probably didn’t know about.

The saying goes that the best way to redeem your credit card reward points is by ensuring you secure as much value as is possible. If we were to give you a comparison, we’d say credit card points are an unofficial and unique form of currency. Hence, the rule of thumb here is to select redemption options equaling at least a cent each.

Often the most confusing aspect here is for people to decide which redemption option is the absolute best and will give the most value. History also proves that comparatively merchandise and gift card options are not the best ways to redeem your points. It would be better to choose cash back or travel options instead, if deriving maximum value is your goal.

If you want to measure your point’s value, you can divide your reward’s dollar value with the number of points you need to get it. Once you have a figure, if you manage to earn more than a cent for each of your point, trust us, you’re on the right track.

However, if you’re earning less than a cent, there is no doubt that you’re making wrong choices and getting bad end out of the deal.

Rule of Thumb

Here are a few tips to help you get the most out of your credit card points:

  1. Your primary aim must be to ensure that your rewards are aligning with your interests. If your goal is to use your income better, you’d be wise to choose a card that has a cash-back option on basics, such as purchasing from your regular stores, topping your fuel/gas etc. if you like traveling, you may want to choose a credit card that offer airline miles beyond your local hub.
  2. The trick is not choosing a rewards program that does not cater to your interests or needs. Be watchful for rewards that are actually a trap in disguise to make you spend more than you can afford, such as a sign-up bonus etc.
  3. Never underestimate the power of cash back rewards. They provide you with the most basic currency there is to spend just as how you desire. You can go back in recent history and check the stats that prove cash back is the favorite credit card reward of consumers.
  4. Do not get a credit card on an impulsive decision. Always take the time and effort to compare an offer with other credit cards. At the same time, you must always remember to check the rewards terms as well of the cards you’re already using.
  5. Do not make the mistake of carrying too many reward cards at a time. You may end up diluting your rewards value because of the way your spending goes haywire with owning several cards at a time.

Conclusion

When redeeming your credit card points, your primary goal must be to select an option that maximizes the value of your rewards, to a cent each or even more but nothing less than that.

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Children Credit Family Financial

Should Teens Have Credit Cards?

Should Teens Have Credit Cards?

Credit cards give you convenience, with an aim to build a positive credit history so that your teen can qualify for a car loan or mortgages when the time comes. It may also help to rent an apartment or pay some educational expenses. So, consider getting low-interest rates on all forms of loans if you meet the requirements. That is one of the best things about credit cards.

Is it worthwhile to know more about whether teens should have credit cards? Let us find out.

1. Teach Them About Its Lows

Many young people end up in debt and have a poor credit score for using credit cards without fully understanding the consequences. It may take years for them to pay off and rectify the credit card history.

In order to avoid such disasters, better you may explain to them how it works and what are better ways to use it. Fully elaborate them its low and high points. Make them realize how the misuse of credit cards can affect their credit scores.

2. How to Build Positive Credit History

It may take time to build a decent and positive credit history. It becomes more complex for teenagers living with a thin credit line. Instead, parents allow teenagers to use their credit line.

That means:

  • Every timely payment will reflect in payment history
  • Minimal use of a credit card will teach your teenagers how to spend wisely
  • Your credit age will increase with your teenager’s credit file and accounts for a long history which is a good credit score

This may be a good way for teaching your teen to use the credit line, the way it should be.

3. Observe Credit Card Usage During an Emergency

You may hope your teenager doesn’t use a credit card during an emergency.

There are situations where it becomes inevitable to use a credit card. Like your young adults or teenagers vehicle breaks down or they find themselves in an immediate need for cash. A credit card will make their life easier at that point. If they use it appropriately, this will give you peace of mind that your teenager is ready to face an emergency and come of it as well.

4. Monitor Credit Card History

Mostly you will able to see your teen’s credit card purchasing history. You should look carefully to observe the nature of his spending. You can explain it’s a bad idea to spend every penny they earn. Save something by the end of each month.

You should do this with a diplomatic approach without letting your teen feel you are micro-managing.

5. Convenient and Secure

Credit cards are good for payment methods. Many credit cards offer protection on every purchase you make. In the meantime, if you lose your credit card you inform the bank and get it cancelled and wait for its replacement. This is a safer option than your teenager carrying cash around.

Make your teenager realize this significant point.

Conclusion

It may be a tough and daunting task for parents to hand over additional responsibilities to their children, particularly teenagers. It covers all aspects of giving them your car, access to the internet or letting them use your credit card.

For you, it may be a big step but it’s a smart way to prepare your teenagers for taking on adulthood responsibilities.

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Financial Health & Home Recreation & Leisure Savings

How to Save for a Vacation?

How to Save for a Vacation?

Vacations are always a treat, and everyone strives for to visit the location without spending much. There are certain ways to make vacations full of memories you can remember for a long time. You start with an early vacation plan, cut on spending and if required, look for an additional job to double up the savings.

Let us guide you to know more about how to save for a vacation?

1. Plan the Vacation Early

Before everything else, decide about the place you want to spend your vacation at. Look into its neighbourhood if there are more places you can visit once you reach there. So plan about:

  • Destination, where you are going and factor in the cost for its nearby areas
  • How long you will stay. Arrange the money accordingly

2. Budget for Your Vacation Early

Now, look into, how much you need and what will be your expenses? Here’s a list of expenses and their mode of spending you should concentrate to budget accordingly.

  • Transport cost from your home to the destination and back home
  • Daily accommodation
  • Local transportation at your destination
  • Daily food, drinks, and entertainment

Add up these expenses and you have a certain range of amount you will need to spend on your vacation. So you can start saving on a monthly basis from your salary. You can allocate a certain amount per month to meet your vacation budget.

3. Resist Impulse Buys

The next part is about savings to complete the vacation with no financial issues.

The foremost saving manner is to resist or stop impulse buying. Impulse buying is making many a people short on money. You should avoid the malls or browse online for shopping. Online shopping will keep giving you endless options to shop from. Clear the browser history and focus on saving money.

4. Ask for Discounts

You were buying phones, apparel, shoes, and grocery, etc. albeit without discounts.

Now you may ask them for discounts or start looking for stores that are offering “sale” items. You buy from them to make your saving more reasonable for vacation.

Similarly, you can ask your insurance company or bank for lower interest rates. You will get better rates from both.

5. Take on Extra Work

Taking an extra job after your routine job is another way for more revenue for your vacation expenses. The best idea is to talk to the employer and request additional hours. You can also opt for freelancing or start selling handicrafts, etc.

All these efforts will get you extra earning, spend that money on vacation, and enjoy it.

Conclusion

So, planning at the right time, then cutting down on expenses, and working a few hours extra will get you the money needed for your trip.

To make things better, you can always check with travel agents or tour operators. Check their cost for a round trip and compare that with your calculations. If you see an enormous difference, opt for one with fewer expenses.

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Business Career & Education Financial Loans

5 Steps to Getting a Business Loan

5 Steps to Getting a Business Loan

You want to start your own business. That is great news, a huge step, something that should be encouraged and applauded. But it isn’t just as easy as coming up with an idea and making it a reality. There are many hoops to jump through to make your business come to life, including getting a business loan so your company can have the capital to be a huge success, find customers, and make it long into the future.

How is that done? How does someone secure a business loan, especially if it is their first time starting a business? While not all of the steps are easy or short, the process is simple enough to follow. Make sure you follow this necessary procedure and you will stand the best chance to get yourself a business loan and create the company you have always dreamed of.

1.   Are you Eligible?

Before you get too excited about your business, you need to first determine if you are even eligible for a business loan. There is a lot riding on this fact. Actually, everything is riding on it.

How do you decide if you can get a loan? You need to weigh a lot of different factors. For example, what is your credit score? Have you opened any other business? Do you make enough money? All of these things must be figured out before you can land your business loan and open your company.

2.   What Type of Loan Do You Need?

Did you know there are many different types of loans available to you if you decide to start your own business? It’s true, there are more than you think. You need to figure out which type of loan you need. Do you need a personal loan or a business credit card? Maybe you need a government-backed loan or a more traditional loan from a bank? These are the sort of questions you need to ask and answer before moving forward with getting your business loan.

3.   Online Lender? Bank? Who Should You Look To?

In the modern world, there are many different places you can go to to get your small business loan. Do you want to rely on a bank or microlender or online lender when you are looking to get your loan? Weigh your options, see what each has to offer, then move forward by requesting the loan from the supplier of your choice.

4.   Gather your Information

Obviously when you are applying for a loan, you will need a lot of documentation and information to give the possible supplier of your loan. You will need tax returns, bank statements, legal documents, and a legal plan. You need to round all of these up and have them prepared for a sit-down meeting for your loan. Make sure all the ducks are in a row before you take the final step.

5.   Apply for your Loan

Now that you have followed all the other steps you are ready to finally apply for your loan. Make sure you are dressed your best, bring all your documents, and have a solid business plan when you are stating your case for the lender of your choice.

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Bankruptcy Credit Financial Legal

How to Rebuild Credit After Bankruptcy

How to Rebuild Credit After Bankruptcy

Deciding to declare bankruptcy is never an easy choice. It is painful, nerve-wracking, and embarrassing. However, it is ultimately the right choice for millions of people. Why should you declare bankruptcy? There are multiple reasons why it might be the right approach for someone suffering from financial woes. But the biggest reason why someone should declare bankruptcy is because it ends the impossible task of paying off debts you cannot overcome.

In many ways, bankruptcy is giving you a clean slate with your finances and the ability to finally start rebuilding and stop beating back against an endless tide of financial stress. But it can cause a huge hit to your credit. Make no mistake, declaring bankruptcy is one of the worst things you can do for your credit score. However, rebuilding that score isn’t impossible after bankruptcy. There are ways to come back from bankruptcy and have a good credit score again.

Invest in a Credit Product

Have you ever heard of a secured loan or secured credit card? These are just two tools that can greatly help your credit after you declare bankruptcy. These cards and services will slowly build your credit back up. With the secured credit card, you put a deposit into the card and then use it like you would a credit card. It’s your money but you are helping your credit score by spending it. While these cards can be super helpful, they also carry a high interest rate too so be forewarned and be prepared to use the secured credit card for the near future but only the near future.

Practice Good Credit Habits

Once you do land a credit card, secured or not, you need to be extra careful when spending and paying it back. Now is your chance to have good credit habits. The best piece of advice to follow with your new credit card? Pay on time! Don’t spend too much credit, do not overspend and use money you don’t have. Look at these cards as a tools to rebuild credit, not as a way to live lavishly.

Have a Co-Signer Get You a Card or Loan

A co-signer is a great way to get yourself a credit card or loan after you have declared bankruptcy. They will sign off on you and help you get the card of loan and put themselves on the line. That is a big risk they are taking but if you are really serious about staying on top of your finances, it is a choice that will help you and not hurt them in the slightest. Make sure your co-signer is someone you can trust and someone who can trust you. Perhaps a family member or life long friend. A co-signer is a great way to get a new card or loan and that is a major step to starting to rebuild your credit. Once you have secured your card or loan because of the co-signer, make them proud by paying it back on time and show them that you were an investment worth making.

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Business Career & Education Credit Financial

What are the Best Cards for Small Businesses

What Are The Best Cards For Small Businesses

Starting a small business is exciting, fun, and nerve-wracking. It can also be truly terrifying if you are not sure where you are getting your funds from. Some business owners find their financing through a bank, others from loans by brokers or family and friends. Then others get their companies up and running by using one of the many business credit cards on the market.

If you are looking to fire up your own small business and want to rely on a credit card to get things moving, you have a lot of choices to pick from. Which one is right for you? Which card has the best features, the best rates and the greatest rewards? Be sure that you make the right choice because, frankly, the future of your business depends on it.

American Express Blue Business Cash Card

A 0% annual fee? 2% cash back on all purchases up to $50,000? 0.0% intro APR purchases for the first 12 months? The American Express Card is a great way to finance your new business. It is a wonderful way to buy furniture, make down payments or secure rent. The 2% cash back is a great feature and it lasts for an entire year. After that, it will drop down to 1% which is still quite nice. It is made for people with really good credit, so you need to keep that in mind when applying. But it is a powerful, handy and reliable card from one of the biggest card companies in the world.

Capital One Spark Cash for Business

The Capital One Spark Cash for Business card is a great tool to create and sustain your business in its opening year. People know that the first few years of a company are the most challenging time for it, and the Spark Cash for Business card helps out tremendously. How? By providing $0 annual fee for the first year and an unlimited 2% cash back on every single purchase you make. Plus, the card gives a one-time $500 cash bonus once you spend $4,500 within 3 months of opening your account. If you need to make a foreign purchase, this card is also great for you because it has absolutely no foreign transaction fees. For all these reasons and more, you can’t go wrong with the Spark Cash for Business card.

The Blue Business Plus Credit Card from American Express

Everyone is wild about reward points with their credit cards. They are all the rage. The Blue Business Plus Credit Card from American Express is full of rewards. In fact, you earn 2X Membership Rewards points on business purchases for the first $50,000 purchases per year and then 1 point per dollar spent after that. That alone is enough to sell many business owners and have them sign up for the card. But the 0% intro APR on purchases for 12 months is another great reason to take a look at this card when you are getting your new business up and running.

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Financial Tax Services

Why You Should Get a CPA to Prepare Your Taxes

Why You Should Get a CPA to Prepare Your Taxes

There is nothing as annoying or necessary as filing your taxes. It is never any fun but is something that every American adult has to do every single year without exception.

You can always file your own taxes and it is rarely that complicated. It takes a lot of time and it can be boring but it doesn’t suck up too much time. However, sometimes you need extra help to get your taxes done. That help will come in the form of a CPA, a professional who is specially trained at filing taxes for people. When do you need the help of a CPA? What instances call for a CPA instead of doing the taxes yourself?

The IRS Contacts You

Uh oh, this is never fun. The IRS may contact you for any number of reasons, they aren’t always bad. But they are usually complicated and need to be handled in the most professional manner possible. Professionalism is exactly what you get with a CPA. They know exactly how to handle and deal with the IRS and they will make any interactions with them way, way easier and way less of a headache.

You Have a Side Gig

In this modern age, many people make their money with various jobs, or gigs. Do you drive for Uber? Maybe you deliver food for DoorDash. If you do, that could complicate the tax filing process and that means you need to bring in a CPA to get it done. You deserve to have an easy filing procedure and that is what you get with a CPA doing your taxes because you have multiple gig jobs.

You Own a Rental Property

Are you a landlord? Do you rent out a home or real estate investment? If so, a CPA should be employed when you are filing your taxes. A CPA will make renting a lot easier and will also be able to find all the deductions you could enjoy. Remember, these CPAs are trained professionals and they know how to file taxes accordingly and smartly. They will save you extra money and use all the tricks of the trade to make being a landlord easier than ever.

You Are Investing your IRA or 401K

Many people self-direct their Roth IRS or 401k money into investments in bonds, stocks, and mutual funds. Others invest in real estate with the money they earn from their IRAs or retirement funds. It can be a very smart and financially beneficial call, but it can also make filing taxes way more complicated. If you are doing this and making money this way, use a CPA to do your annual taxes to get rid of all the complications that these self-directing moves can make.

There are many reasons to use a CPA, from the ones listed above to the simple fact that they make filing your taxes a complete breeze. The fact of the matter is that you don’t need any reason to hire a CPA other than the fact that it will take your taxes out of your hair and make tax season a simple, laid back time. You can kick back and relax while others are stressing out about the IRS.

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Financial Savings

The Advantages of Investing in Your 20s

The Advantages of Investing in Your 20s

Some people may think an investment is a lifetime achievement while others take it as a way to secure money. However, both types of people wonder what the right age for investment is.

For budding young adults, the investment seems appropriate when they are stable, financially. And usually, this is rarely the case. There are others who start investing early for getting the advantages as early as possible.

The 20ish age bracket looks like the right time for you to start making investments, and you will notice its advantages during your retired life. How? Well, we will explain the reasons, to boost your confidence for an early investment.

Time and Investment

Early investment means, to start at an early age. Remember that earning opportunities and money may not be enough for young adults at an early age. However, they have one thing in plenty: time.

The timely investment can have benefits for investing $10k at age 22 that will grow to $80k by the time you reach 60 years. The same investment at age 30 will get you only $43K by the time you are 60. See, how time can affect your investments in a big way.

So, the longer time you invest money, the more benefits you can get from it. The mantra is, earlier the better.

Once you invest and the money kicks in, then you work to grow an investment by re-investing the earnings.

Take Risk

Young people, for example, who have a longer time span, have the potential to take on risk. Simple, most likely they won’t need the money for several years. Having more time means they can re-shuffle or re-invest their savings if any of their investment plans go wrong.

As the people grow, they limit their options by going for low-risk or risk-free investments, like bonds and certificate deposits, etc.

Longer Terms Plans

The long-term plans you may well start in the early 20s to get the best results at a later age. For example, Dow Jones fell over 50% in the 2008 recession. It started making gains by reaching a pre-recession position in 2013. The young investors waited for its recovery as they had time in hand.

Young investors can absorb such events because of the time they have in hand and their sights on longer investment plans. If you’re 25 now and planning to retire at 65, then you have a time cushion of 40 years for the investment part. So, young ones by investing at an early age can gain at a later age, the way it should be.

Experiencing

Young investors have everything on their side to get a first-hand taste of success and failure.

Investment plans and their management is not simple, it needs patience for understanding. Youth can overcome their investment mistakes because they have time to recover. 

Young age investments and their benefits will give you a better, retired life.

Technology and Right investment

The young generation has all the know-how, information, and knowledge to study, research and go for investment. Online trading hubs are providing all information and business data for such investments.

However, you can check that what investment will make you pay $190 per month now, and get its reward to a sum of $1 million in 40 years. The earlier you invest, the better you stay.

Conclusion

It does not mean investments are for retirement age alone. There are other investment plans like dividend stocks that provide support of the income stream throughout the investment span. 

20-something investments have definite benefits, and you should plan to make an early one, even if it is a small amount.

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Bankruptcy Debt Financial Legal

Can I File For Bankruptcy Online in 2021?

Can I File For Bankruptcy Online in 2021?

The internet is the height of convenience. Despite all the complaints we might have about technology, one thing we can admit is that being able to handle all of your expenses from the comfort of your desk is no small luxury. But can you make a big financial like bankruptcy online? Is it possible to file for bankruptcy over the internet?

In this article, we’ll discuss what your options are when considering whether or not you can file for bankruptcy online. By the time we’re done, you’ll hopefully have all the info you need to make the right call.

Can You File For Bankruptcy Online?

For the most part you can file for bankruptcy online. There are a few caveats, as there are with really any big decision, but you likely won’t have trouble finding ways to make such a difficult decision with at least a little bit of comfort and confidence.

With your computer, you can do a number of things related to bankruptcy. For one, you can, in fact, receive bankruptcy filing forms and any local documentation relating to your application for bankruptcy. This takes a lot of the stress of gathering documents and filing papers out of the task.

You will also be notified about the progress of your bankruptcy case over the internet. Your bankruptcy court will send you email updates stating the important facts of your bankruptcy case. This will help you track your financial situation and get a hold on where you are.

After your bankruptcy is filed, you may also be able to check on how your repayment plan through the internet. While this feels more like a chore than a privilege, it will help in the necessary budgeting process that will come during your recovery phase.

You Cannot Do the Actual Filing

Unfortunately, most of us will have to do the actual, physical filing part of filing for bankruptcy in an actual, physical setting.

There may, however, be places where the filing process can be done completely online. This will depend on the district your filing in and the rules and regulations it has decided upon in the past.

If you’re unsure of the rules in your district, it might be good to consult a financial professional. The may be able to help you jump through all the hoops when filing bankruptcy and advise you on recovery afterwards.

Trustees also might not be so hospitable to the idea of going paperless. While many districts have discussed moving in a more electronic direction, the trust that floats around the idea of the hard copy filing process is just too big to overcome for most trustees. This is why hard copies may still be required here.

Any fees related to court filing are also usually not offered on an online basis.

Thus, there’s a lot of the process you can do online, and a lot that you can’t. You will be able to do a lot of the filing documents electronically, but submitting them and onward will be a physical process.

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Career & Education Education Financial Loans

Understanding Student Loan Forgiveness

Understanding Student Loan Forgiveness

When tough times fall, some people are left with no way to stand up to the challenge of their financial obligations. Whatever the reason for these hardships, it’s good to know that there are some ways out of the mire. Student loan forgiveness may be one of these ways.

These days, the necessity of high education is as high as it has ever been. Unfortunately, the cost of higher education is just as high, which leaves some people having to take out expensive student loans- loans which they may eventually have trouble paying.

What is student loan forgiveness? Might you qualify? In this article, we’ll talk all about getting forgiven for your student loans- what it means, who qualifies, and what it will entail for your financial life.

What Is Student Loan Forgiveness?

When people can’t repay a loan, they have a number of options. So, in the case of student loans, you may be able to get your loans forgiven.

Student loan forgiveness essentially means that you are no longer required to pay some or even the entirety of your student loans.

This means that the debt you owe may not end up completely disappearing, and whatever you still owe on the end of everything else will persist. You will still end up having to pay the leftover debt, but the chunk forgiveness takes off may help enormously.

What Kinds of Forgiveness Are There?

Student loan forgiveness comes in many forms and is not homogenous across the board in any sense. This means that there are different types of loan forgiveness may occur under different circumstances. Here are a few of those circumstances:

Teacher Loan Forgiveness

To encourage people to teach primary school children, despite the low-paying salaries, oftentimes teacher loan forgiveness will be offered.

Under the terms of teacher loan forgiveness, those who teach five consecutive and complete academic years are eligible for student loan forgiveness of up to $17,500. This means that if your federal student loans tallied up to $30,000, you would have over half of your loans forgiven.

Public Service Loan Forgiveness

Working for a government or non-profit organization may also qualify you for loan forgiveness. After ten years of payments, or 120 qualifying payments, you may benefit from Public Service Loan Forgiveness.

Military Service

Military service may also qualify you for special benefits and repayment plans. These may include interest rate caps and other forms of special loan assistance.

AmeriCorps Benefits

Completing a term of service in AmeriCorps may also qualify you for Segal AmeriCorps Education Award. So, this may help you to repay some of your student loan debt.

Income-Driven Repayment Plans

Under these plans, those under a repayment plan that is based on their income may qualify for forgiveness on any remaining balance on their loans. After you make a certain number of repayments over a certain period of time, they may offer this.

Other Forms of Forgiveness

Other forms of student loan forgiveness may be found on the FSA’s Student Loan Forgiveness page.