This week: Will rising interest rates benefit savers? Millennials are stuck with a chunk of consumer debt in student loans, Most people are not assertive enough with their finances, The skinny on credit card debt consolidation loans, Difficult choices for the house rich/savings poor, A decade after the financial crisis – how are we doing?
While most people take ownership of their education, professional careers, and personal lives, they are less assertive when it comes to finances. This one mistake keeps them somewhat powerless over their life. Financial expert Suze Orman believes that the biggest mistake most people make, whether they are wealthy or not, is not taking an active role in handling their own finances.
Confidence and mindset are at the crux of the issue. People get excited about spending money but look at saving money as drudgery. People need to get just as excited about saving money and learn to enjoy the journey. We need to get more involved with our finances. So, while other projects may seem more important or urgent, we don’t want to forget about the most important one – financial health.
You will never be powerful in life until you are powerful over your own money. How you think about it, how you feel about it, and how you invest it.
If you have an adjustable rate mortgage or a credit card, you probably know that you will be affected by the Fed’s ongoing rising interest rates. But what about the interest rates on your savings accounts? Will rising interest rates benefit savers, too? The short answer is “yes, but…”
Unfortunately, interest rates for savers will not increase in step with interest rates for borrowers. What’s a saver to do? These days the best savings rates are offered by online banks rather than traditional brick and mortar banks.
If you are looking for greater returns on your savings without the risk of the stock market, you need to look at online banks.
If you use a credit card consolidation loan to your advantage, you will be able to accomplish the following things:
- Simplify your payments: Single payment date and loan term
- Save money: Save money on interest
- Accelerate your payoff date: A lower interest rate means more of your payment goes toward your balance resulting in paying off your debts sooner
- Improve your credit score: The ratio of your available credit to your balances is a large part of your credit score
But be careful:
- Make sure you comparison shop for the best deal.
- Don’t use your credit cards after they are paid off.
- Make sure you always have enough in your account for your monthly loan payment.
If you’re ready to make changes to your spending habits and commit to a repayment strategy, getting a debt consolidation loan can be a smart move.
Homeownership is the largest source of wealth for Americans over 45. As Gen Xers and Baby Boomers are closing in on retirement, those who have most of their assets in their house are looking at some big questions. And the answers may not be what they want to hear.
Depending upon your situation, you may find that your plan to try to stay in your home as long as possible may not be the best. For many Americans who are house rich and savings poor, downsizing and investing their house equity for retirement may turn out to be the best option. But it’s easier said than done. Financial reality and sentiment are not always compatible.
With more than 3 million members of the baby boom generation turning 66 this year alone, many are wondering whether – and how – to use their housing wealth to pay for retirement.
It’s been 10 years since the 2008 financial crisis. According to Lending Tree’s Consumer Debt Report, while our overall debt has increased 1 trillion, our types of debt have shifted considerably. Even though mortgages weigh the most in debt analysis, while in 2008 they represented 98% of disposable income, today that figure has dropped to 68%.
Consumer debt, inclusive of student loans, auto loans and credit card debt, has increased 45% in the last decade. In fact, student loan debt now represents 42% of all consumer debt while credit card debt comprises only 27%. 10 years ago, those figures were reversed. This means that millennials, who hold most of the student loan debt today, are shouldering a large percentage of the overall consumer debt for the country.
By the end of the second quarter 2018, we’ll have $1 trillion more in household debt than we did in 2008 — and none of it is attributable to housing.