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Legally Renege On Your Mortgage

MoneyTipsCongratulations! You just signed the closing papers on your mortgage loan. Terrifying, isn't it? Are you having second thoughts about your decision? If you have just signed the closing papers for a home purchase, it's too late. You have made your commitment. However, in some cases with refinancing or a home equity line of credit (HELOC), you have a short rescission period in which you may back out of the deal without penalty. The Truth in Lending Act (TILA) created the right of rescission in certain circumstances, allowing borrowers three full days to reconsider their decision and rescind the deal with no questions asked. Three things must take place before the three-day period begins: you must have signed the promissory note, received the Closing Disclosure form that summarizes the terms and conditions of your mortgage loan, and received two copies of the notice that explains your rights of rescission. Rescission applies to refinances on owner-occupied homes only (no rentals, vacation homes, or investment properties), and only when the refinancing is through a different mortgage lender than the one that provided the original mortgage loan. An exception is a cash-out refinance with the original lender, where a rescission period is available on the cash-out portion alone. Rescission is always available on a HELOC with one exception: it is not applicable when the entire credit line amount is used for a purchase transaction (such as a second mortgage). You must submit your rescission form in writing to the lender, using either the form provided with the explanation of rescission rights or a similar letter. Keep a copy of your letter and note when the letter was mailed in order to prove that your notification was within the three-day window. The first day is considered to be the first business day after the last of the three events above are completed, including Saturdays but not Sundays. Legal public holidays are also excluded. You have until midnight on the third day to rescind (but keep in mind you will need to provide proof that the written notice was at least mailed on time, a difficult task if you decide at 11pm on the third day). When the right of rescission is exercised, the lender has twenty days to refund most of the fees associated with the loan and give up claim to the property in question. The only fees that are not subject to refund are those paid by the borrower to a third party that is not considered to be part of the credit transaction (for example, building permits). Application and processing fees, appraisal and title fees, brokerage fees, and other fees directly related to the loan must be refunded. If your disclosure form or rights of rescission notice was not received at closing or contained incorrect information, it's possible that you can rescind your loan well past the three-day period (up to three years according to the Consumer Financial Protection Bureau). Find legal representation to explore your options in this case. Before signing a closing document, you should make sure that you have received the proper Closing Disclosure form and rescission rights document and have had enough time to read and understand them. Changing your mind that late in the home buying process poses many difficulties, and it puts the lender in a difficult position – but it is your right. Think about it carefully, but exercise your right of rescission if necessary. Just make sure that you do it in writing and within the proper timeframe. MoneyTips is happy to help you get free refinance quotes from top lenders. Photo © Originally Posted at: your Home LoanThe Loan Estimate and the Closing DisclosureBuyers Beware – Mortgage Paperwork Has Increased

6 Tips For When An IRS Letter Arrives In The Mail

MoneyTipsFew things are more frightening than opening your mailbox and finding a letter from the Internal Revenue Service. You may wrack your brain wondering what you've done to receive an IRS notice. But there’s no need to pretend it didn’t arrive, or go on the lam. Relax. The IRS sends out millions of letters each year for a variety of reasons. An IRS letter does not necessarily carry bad news – and if it does, ignoring it is not going to make the situation any better. Take a deep breath, resist the urge to panic, and follow these tips to help you get past your initial shock. 1. Read The Letter Promptly – Putting off opening the letter won't help you, and delaying can even cause you harm. In many cases, the IRS is simply seeking more information or clarification of some aspect of your tax return, which makes it time-sensitive by definition. 2. Check for Incorrect Information – Review the notice for any errors such as a misspelled name or an incorrect Social Security number and compare any noted corrections or changes in your return with your original submission. These could be simple mistakes, modifications to correct errors on your original return, or signs that someone has tried to send in a fraudulent tax return in your name. If you would like to prevent tax identity theft, check out our credit monitoring service. 3. Reply Promptly When Necessary – Not all IRS notifications require a reply, but when they do, it's important to reply quickly. Typically, you will have thirty days to respond. Your response should be in writing, and you should retain copies of your correspondence, as well as any information that you send along with the correspondence – for example, proof of a particular deduction that you have claimed. 4. Address Any Required Payments – If you have underpaid your taxes and received a balance due notice, you must address the issue immediately in order to avoid penalties. If you can't pay the amount due immediately, you may qualify for additional time to pay or for alternative payment options such as installment agreements. Review your options in IRS Tax Topic 202 and contact the IRS to set up the payment options that work best for you. If you believe the payment request is in error, you can attempt to resolve your dispute within the IRS Office of Appeals, or ultimately, in Tax Court. In any case, you need to resolve the issue as quickly as possible. 5. Seek Professional Help if Needed – If you are being audited or have a serious issue with the IRS request, don't try to handle it by yourself. Depending on the situation, you may need assistance from your tax preparer, a Certified Public Accountant, or even a lawyer. 6. Keep all IRS Correspondence – Keep the IRS letter, along with any replies that you make, with your important tax records. You may need this information in case of future questions or disputes. Keep in mind that real communications with the IRS will be made by traditional mail. The IRS will not use e-mail or social media to contact you, or call you threatening to lock you up. Tax scammers often send notices by these methods, pretending to represent the IRS and demanding personal information, financial information, or payments by specific methods. Don't let scammers fool you into releasing personal information – but conversely, don't ignore mail correspondence from the IRS on the assumption that it may be a scam. The worst thing you can do with an IRS notice is to ignore it… or blow town. If you would like to monitor your credit to prevent identity theft and see your credit reports and scores, check out our credit monitoring service. Photo © Originally Posted at: To Do If You Are AuditedIRS Audits Fall to 11-Year LowHow Long Should Tax Returns Be Saved?

Don't Go Into Debt For Vacation

MoneyTipsYour summer vacation is supposed to be a time to relax and recharge. However, if you want to stay relaxed when you return home, make sure that you do more recharging and less charging – with your credit cards. A new survey from finds that most Americans will be paying off their summer vacations for an extended period. On average, Americans spend 10% of their annual income on their vacations, and it takes an average of six months to recover from vacation expenses. Among the 74% of respondents who reported going into debt to take their vacation, the vacation debt averaged $1,108. Almost two-thirds of survey respondents said their spending on a week's vacation surpassed their monthly rent or mortgage payment. If you want to reduce your interest payments and lower your debt, try the free Debt Optimizer by MoneyTips. You don't have to be so miserly that your vacation is not enjoyable, but you can minimize the chances of an extended financial hangover from your vacation by taking some pre-emptive actions. Set a Budget – Impulse buys are great for racking up vacation debt. Limit impulse buys by setting up a realistic budget for your vacation, allocating a reasonable amount for souvenirs and for spur-of the-moment expenses. Leave a little discretionary money in the budget; otherwise, you may have a hard time sticking to your budget and decide to give up on the concept entirely. Fund Your Vacation Upfront – Start months in advance and allocate a bit each week or month toward your vacation fund. Try placing the funds in a separate account so you are less tempted to spend them on day-to-day expenses. If it looks like you may not hit your goals, reassess your plans and your budget. Consider scaling back your plans a bit – or delaying your vacation, if that's feasible. Look for Deals – If you can afford to travel in the off-season, you are likely to find significant discounts. Even in the busy season, you can find special deals by scouring travel-related websites in advance of your trip. If you are flying to your destination, buy your airline tickets far enough in advance and monitor the fares regularly for the best deal. Look for attractive cross-promotion deals between hotels, theme parks, and other attractions at your destination. Keep It Simple – Do you really need to spend large sums of money at a theme park to have fun? Look for less expensive vacation destinations that the whole family can enjoy, such as trips to state parks. Picnic lunches and snacks from the grocery store can reduce your dining expenses significantly. Check the tourism bureau at your preferred destination for free or reduced price entertainment options or promotional deals that may not be widely advertised. Consider Credit Card Rewards – If you are going into debt on vacation, at least get something back in the process. If your existing credit card has a specific rewards program with certain hotels or airlines, try to use those vendors whenever possible – but don't overspend on the front end just to get rewards on the back end. Check competing credit card offers for useful introductory offers that may make switching cards worthwhile. If you want more credit, check out MoneyTips' list of credit card offers. In essence, planning is the key to a successful vacation with minimal expense and limited stress. Find the balance of planning that allows you to keep expenses under control but still gives you the freedom you expect out of a vacation. You can certainly spend money on your vacation however you choose – but eventually, you will need to fund your permanent vacation, otherwise known as retirement. Keep that in mind as you decide whether to upgrade your vacation accommodations, dine at an expensive restaurant, or load up on overpriced souvenirs. You do want to retire eventually, don't you? Photo © Originally Posted at: Best Time to Book a FlightThe Rich To Get Their Own Airport TerminalFunding That Romantic Dream Vacation

Income Bridges 101

MoneyTipsFor those who have invested unwisely or not saved much money for retirement, the bridge to Social Security income is clear — keep working. If you still have debts you want to pay off before retirement, the free Debt Optimizer by MoneyTips can help you reduce your interest payments and lower your debt. However, if you have saved and invested wisely, you may have the option of retiring before you are eligible for Social Security. Enjoy your early retirement, but remember that you need to manage your money just as wisely through this "bridge" period between early retirement and Social Security as you have during your working years. Since your income stream will now be dependent on your investments, planning becomes more important than ever. Take these steps to make sure that you will have sufficient income to meet your needs and are truly ready for an early retirement. Determine Your Needs – Your first impulse on retirement will be to splurge, now that you have the free time to travel and do things you couldn't do while working. Resist that impulse until you evaluate your long-term needs. If you are retiring early, you may be looking at 5-10 years before Social Security kicks in and 35-40 years of total retirement. How much can you live on per year, assuming you are enjoying your retirement with travel or other expenses you did not incur before? Do you need $30,000 or $100,000? Compare this amount to your existing assets and calculate the percentage of your retirement money you will need to draw out to live on per year. A typical safe range of withdrawals is 3%-4% annually, and you will be tempted to go higher in the early years as you explore your new lifestyle. If that percentage is not enough, consider delaying your early retirement and build up your funds or be prepared to reduce your spending in the early transition years. Build a Cash Buffer – Typically, early retirement income options will be dividends, fixed-income investments such as bonds and annuities, interest on various accounts, and long-term capital gains. Aside from that, you will be dipping into some existing asset account, and dipping into retirement accounts prior to age 59-1/2 usually comes with a significant tax penalty. It is wise to have a cash buffer on hand in case of a market downturn that drains some of your growth investments — especially if your spending is at the higher part of the safety percentage range. Keep your liquidity and get at least some return by mixing cash with investments like laddered CD's and short-term bonds. A safe cash buffer holds three to five years of living expenses; adjust that amount according to your risk tolerance. Reassess Your Investments – You are now entering the transition period where safety is taking on similar importance to growth. It is time to rebalance your portfolio to reflect that strategy. Consider your investments as two separate baskets — one to meet the intermediate-term needs of safety with some income and growth, as well as another to represent longer-term growth. Harvest any poor performers for the capital gains (or losses to go against tax obligations) as part of your cash strategy and then set the general ratio of stocks to bonds according to your risk tolerance. A typical strategy is 50/50 for the intermediate term and 70% stocks for the longer-term accounts, but take into account current conditions. For example, with the extremely low interest rates available today, bond yields are poor enough that the balance may need to shift more toward equities. Set Up a Withdrawal Strategy – In general, avoid drawing out of tax-deferred accounts as long as possible to allow as much tax-deferred growth as possible and avoid any early withdrawal penalties. Plan to draw off taxable investments and Roth IRAs first. However, you must be flexible depending on your needs and the accounts you have to work with. If you are successful with this approach, you can consider extending this bridge policy beyond your Social Security qualification date and delay Social Security benefits up until age 70, allowing these benefits to increase by 8% for every year that you delay taking them. Don't give up on planning now. With some extra effort, you can successfully make your way across your "income bridge" and transition into early retirement as smoothly as possible. Let the free Retirement Planner by MoneyTips help you calculate when you can retire without jeopardizing your lifestyle. Photo © Originally Posted at: Top Retirement Roadblocks7 Retirement MilestonesSocial Security Statements 101

How To Read Your Credit Report

MoneyTipsHave you read anything lately that was so important that it changed your life? If not, we would like to suggest something to read — your credit report. Granted, simply reading your credit report may not have any effect on your life, but failure to do so can harm your life if identity thieves are opening accounts in your name and racking up bills without your knowledge. A review of your credit reports can reveal several issues to correct, including false accounts and errors in reporting your bill payments. Erroneous data can cost you money by lowering your credit score and also potentially cause you to be denied credit cards, mortgage loans or other forms of credit. Your credit report represents a relatively comprehensive record of all of your credit activity. It contains information from any creditor that reports activity to the three major credit bureaus (Experian, Equifax, and TransUnion). Information is not automatically reported to all three agencies, so it is best to check all three reports to get the full picture. You can see all three credit reports right away by using Credit Manager by MoneyTips. Each agency's credit report differs slightly in format, but they will all contain the same basic types of information. Personal Information – Your name, addresses associated with any of your accounts, birthdate, and any other personal information such as telephone numbers or employment information. There may be multiple names including misspellings, nicknames, and maiden names. Check for any names that may be signs of errors or fraud. Any fraud alerts or personal statements that you have included should show up in this area of the report. Public Records – This section contains financial account information from legal actions that are public record. Civil judgments against you, tax liens, and bankruptcies are the types of information recorded here. Account information – This is typically split into two main categories: Accounts in Good Standing and Adverse Accounts. Up to two years of your credit activity may be available for each account. Both installment accounts (such as auto and student loans) and revolving credit accounts (such as credit cards) will be included and may have their own subheadings. Mortgage accounts may be listed separately. Each account listing contains items such as creditor information, account numbers, loan status, date opened, current balances, high balances, credit limits, estimated date of removal for installment accounts, monthly payments, and the date of last activity. Payment histories are often shown with color-coding as green for paid and yellow/red for missed or delinquent payments. Credit Inquiries – These are requests to view your credit report, including your own requests as well as those from potential creditors. One section covers soft inquiries such as your own requests or promotional inquiries that can only be seen by you; the other section covers hard inquiries based on credit applications that can be seen by both you and the requesting lender. The date of the request is noted, along with information on the requestor such as business type and date of removal (requests may remain on the report for up to 2 years). Not every creditor reports to the credit bureaus; do not be worried if you do not see all of your accounts. Focus on any information that is erroneously reported, accounts that you did not open, or unsolicited hard pulls on your credit. Errors in your personal information could be inadvertent, or a sign of someone attempting to open a false account. In either case, it's important to contact the credit bureau to get the discrepancy resolved. Similarly, review your account history for any incorrectly reported payments and anything in the adverse account section that gives an inaccurate reflection of your account. Follow up with creditors on any unsolicited hard pull that you do not recognize. You may be able to stop a fraudulent account before it can be activated. In the case of accounts that have already been opened, you must take immediate action with the creditors to close these accounts and limit the damage. If you find evidence of identity theft, apply a credit freeze on your account to prevent any more fraudulent accounts to be opened without your consent. You will need to lift the freeze temporarily to open any legitimate new accounts. By keeping up with your credit reports, you can have the peace of mind that comes with secure credit accounts — or the peace of mind that comes with stopping a thief from stealing your identity and draining your accounts. Either way, peace is yours. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips. Originally Posted at: How to Resolve Negative Items on Your Credit ReportVideo: Top 2 Factors For High Credit ScoresHow Millennials Can Improve Their Credit Scores

Today's Headlines: Should the US Ban Credit Card Surcharges?

MoneyTips Who's For Paying More? Let's take a quick vote. How many consumers are in favor of surcharges just for the convenience of using a credit card? Anybody? That's what we thought. The European Union and the United Kingdom agree with that assessment. New rules from the British government will soon prohibit retailers from charging customers extra for paying for their purchase with a credit card. The UK rule stems from an EU directive set to take effect on January 13, 2018, and, according to the UK Treasury Ministry, British consumers could save a sizable portion of the millions of pounds spent annually on card surcharges. Calling credit card surcharges "rip-off charges", Economic Secretary to the Treasury Stephen Barclay said that such charges "have no place in a modern Britain." Do they have a place in a modern America? Some states already say no, but the situation is not straightforward – and, despite Barclay's comment, lack of surcharges does not guarantee lower prices to consumers. Variations on the Theme Currently, Puerto Rico and ten states do not allow credit card surcharges (California, New York, Kansas, Florida, Maine, Connecticut, Texas, Oklahoma, Massachusetts, and Colorado). Merchants in the other states are generally allowed to pass on a surcharge that is equal to their costs associated with accepting the card (up to 4%). Surcharges on debit cards are already banned throughout the US via an amendment to the Dodd-Frank legislation. However, each card network has a specific set of surcharging requirements that retailers must follow in order to apply surcharges using that card brand. Combine different card requirements with differing state rules and you can see why relations between retailers, banks, credit card companies, and the credit card processors are complex and tense. For example, the American Express guideline does not allow retailers to charge a higher fee for one card network (swipe fee) compared to another. This is troublesome because fees are not the same among all card networks, and merchants are then limited to passing on only the lowest rate — or refusing to take cards with higher rates altogether. Retailers can get around this by applying product level surcharges (types of cards) instead of brand-level surcharges, but the situation remains complex. They must still abide by any state laws and limits/restrictions imposed by each card network, post an appropriate notice of the surcharge within their store, and include the surcharge amount as a separate line item on the receipt. There's Always a Way What about states where surcharges are not allowed? In many of these states, merchants are permitted to offer discounts for using cash or debit cards – thus the standard price is raised to cover the cost of credit card processing. The Supreme Court recently addressed a New York case challenging the execution of this approach, ruling that state law may be challenged with respect to the way prices are advertised on free speech grounds. New York state law allows that a merchant can advertise an item for a specific cash price (for example, $5) and a specific credit card price (for example, $5.10), or advertise the item for $5.10 with a 10 cent cash discount – but the merchant can't advertise a $5 item and a 2% surcharge for credit. Of course, retailers are welcome to raise prices straightaway without explanation and charge the same price to every one regardless of payment type. They risk losing business in doing so, but each merchant must do the risk/reward calculation. In short, if the US bans credit card surcharges nationwide, retailers can — and almost certainly will — continue to find ways to recoup their costs. What can change, however, is making these costs fully transparent, so consumers can decide which cards best meet their needs. The free market should take care of the rest. The Takeaway Nobody wants to pay extra fees on their credit card transactions, and it's laudable that the EU and UK are trying to protect their consumers from such fees. But it is naïve for them to assume that by removing card fees, merchants will mostly absorb the costs of processing credit cards, and not pass those costs on to consumers in other ways. We remain skeptical. Your job as a savvy consumer is to consider all fees and taxes before making a purchase, regardless of what you are buying and where you are buying it. This is not always easy – especially if you are buying an airline ticket or booking a hotel online – but you can't truly comparison-shop until you understand the total costs associated with your purchase. New regulations may make your job of assessing costs a bit easier, but they have an equal chance of making it harder. In either case, it's still your responsibility to shop wisely for credit products, comparing features, benefits — and costs — on an apple-to-apple basis. If you want more credit, check out MoneyTips' list of credit card offers. Photo © Originally Posted at: Card Fees Consumers May Not Know AboutMany Credit Cards Drop International FeesThe True Cost of Your Credit Cards

Rent-To-Own Homes 101

MoneyTipsYou have spotted the house of your dreams, and it is on the market – but you cannot afford to buy it at the moment. Perhaps you do not have enough down payment funds, or your credit score is not good enough to get a mortgage loan. Don't give up yet. You have one other possibility to consider – a rent-to-own contract. In a rent-to-own arrangement, the potential buyer agrees to rent the home for a given period (typically 1-3 years). At the end of the rental period, the renter will either have the option to buy the house or be obligated to do so, depending on the terms of the agreement. To retain the option to buy the house, a renter puts up a payment (option money) which can range anywhere from 2.5%-7% of the sale price of the home. This gives the renter the right to buy, but not the obligation to do so. Meanwhile, the current homeowner/landlord agrees not to sell to any other potential buyers during this time. Option money may be refundable (usually not) or partially applied toward the eventual purchase price (usually so). Why would you want to rent-to-own? Here are a few potential reasons. Finding the Perfect Home – If you find the perfect home but cannot afford to buy it, the rent-to-own relationship gives you time to gather the needed down money or repaired credit score to qualify for a mortgage. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips. Quick Relocation – If you need to relocate for a job transfer or other involuntary reason with limited time, a rent-to-own can let you take advantage of the best fit you can find in a short timeframe without locking into a 30-year mortgage. Another example would be a move into a more desirable neighborhood or school district for your children. You have to weigh the advantages of rent-to-own over a straight rental. Inability to Get a Traditional Mortgage – Poor credit, previous foreclosures, or other historical problems that still count against you on mortgage applications may make rent-to-own a superior option. This does assume that the problems have been rectified, and that your current income allows you to make your rental payments. Unfortunately, there are also some downsides to consider. Expense – Renting-to-own is more expensive than a straight rental. Your rent will be higher as a premium to the current homeowner to accept the rent-to-own arrangement. You will generally receive a portion of your rental payments back as credit on the purchase price, but in the short term, the expense is greater. In essence, there is no point in renting-to-own a house if you do not reasonably expect to buy it. Risk – If you choose not to buy, you will lose any non-refundable option money as well as any credit you had built up toward the purchase of the home. Overextension – Beware of overestimating your ability to pay rent and still save up enough funds to buy the house at the end of the term. Make sure you have sufficient fiscal discipline to make this work for you. Before executing a rent-to-own agreement, have a real estate lawyer look over the terms before you buy. Clarify any ambiguities on expected maintenance and upkeep, payment terms and conditions, and expectations and obligations at the end of the term. Rent-to-own housing arrangements work well for some people, but they are not for everybody. Consider whether a straight rental is better while you save money for a future home purchase, and before you decide that a rent-to-own is best for you, make sure that you fully understand all of your obligations and options. MoneyTips is happy to help you get free refinance quotes from top lenders. Photo © Originally Posted at: the Choice Between Buying and Renting5 Reasons Not to Buy a HomeHome Buying vs. Renting

Have You Done Your Homework On Your Bank?

MoneyTipsHow do you know that your bank is the best one for you? You can consult all the advertising flyers and conventional information available at bank branches — or you can do some homework on the fundamentals of your bank with help from the online Bank Data Guide from the Federal Deposit Insurance Corporation (FDIC). What better source of information could you find than the organization that insures your deposits up to $250,000? The FDIC Bank Guide has links to lots of information, far more than you are likely to care about as a depositor. However, it does have several functions that are geared to depositors, starting with the BankFind menu. BankFind does just what the name implies — it allows you to find information about a particular bank. A drop-down menu will attempt to guide you through options as you type in the bank name. The main menu will give you the FDIC certificate number, when the bank was established and insured, the Bank Charter Class, location of the headquarters, and the webpage contact for the bank. FDIC contacts for consumer assistance regarding the bank are also included. The location drop-down menu allows you to find a specific location or all locations where your bank does business. The history tab lists all major changes within the bank including acquisitions, mergers, name changes, organization type, and changes of regulatory agency. The identification tab lists all relevant identifiers from the FDIC and the Federal Reserve. The financial snapshot tab gives the basic financial information about your bank's relative strength. Available information includes total assets and deposits, bank equity capital, and year-to-date and quarterly reports on net income, post and pre-tax return on assets, and return on equity. Click on the link for comprehensive financial reports and you will find a menu that goes further in depth, even allowing you to create comparison reports and to check FDIC ratings via the Community Reinvestment Act. The Details and Financials - ID tab will take you to that same menu, and the Reports and Analysis tab allows you to go to a user-friendly comparison page where you can compare dollars/percent of assets or rankings for up to four banks. Once you have located the branches of interest, you can use the Branch Office Deposits tab to find out the deposits at any particular location. Totals are available for each branch, including the countywide total for all branches in that category, and the statewide total. Bank robbers, don't get any ideas. The Bank Guide contains far more information that is useful primarily for analysts and regulators, such as downloadable reports on various banking institutions and cumulative data about the banking industry. As an individual depositor, you are probably not going to care about such in-depth information, but it is available if you find it interesting. The FDIC Bank Guide's real benefit to most people is the ability to find basic bank information quickly, to help you make decisions about your banking options. Do the locations and services at those locations match your convenience needs, is the bank stable with sufficient deposits, assets and returns, is it prone to acquisitions or changes, and how does it rate among its peer institutions? You may find that you have a better banking choice available to you, or you may find peace of mind in confirming that you already use the best bank for your needs. If you are starting from scratch with no credit history, check out MoneyTips' list of credit cards for limited or no credit, which can help you to build a credit history. Photo © Originally Posted at: Much Do We Trust Big Banks? (Infographic)Do We Trust Big Banks?Federal Reserve 101

More Americans Want To Forgive Trillion-Dollar Student Loan Debt Than Want It Repaid

MoneyTips More Americans believe that we should forgive all federal student debt than feel that the recipients should pay their loans back. In a shocking survey recently conducted by, nearly 42% agreed with the statement, I believe President Trump's Department of Education should forgive all federal student debt to help the economy. Less than 37% disagreed, while the remaining 21% neither agreed nor disagreed. "It is surprising that the majority of the US population supports this measure," says Brandon Yahn, Founder of "Perhaps this student debt burden has spread more across all generations, and popular sentiment is turning the corner as it relates to student debt." The exclusive survey of 466 Americans, conducted in June, found that more than 25% strongly agreed with the statement, while 18% strongly disagreed. If this became the law of the land, it would mean American taxpayers forgiving around $1.3 trillion in debt, which Trump and his Education Secretary Betsy DeVos do not seem inclined to do. As a candidate, Trump proposed student loan forgiveness after 15 years of repayment, but Trump and DeVos' initial education budget reportedly seeks to eliminate current forgiveness programs. While income wasn't a factor, gender seemed to affect people's feelings on this subject, with more women favoring forgiveness over men. 47% of the women agreed or strongly agreed with the statement, while less than 36% of the men felt the same way. Conversely, more than 40% of the men disagreed at some level, compared to less than 34% of the women. Less than 15% of the women surveyed felt strongly that the borrowers should live up to their obligations to pay back their loans. Since a recent study showed that women hold nearly two-thirds of aggregate student debt, perhaps sisters are doin' it for themselves. Reasoned millennial money expert Stefanie O'Connell, "Women are now more likely than men to get a college degree, which may explain why they would favor student loan forgiveness at higher rates. They're also likely to experience career interruptions due to childbearing and caretaking, which can impede their lifetime earning potential and, consequently, their ability to pay back their loans. Finally, many of the lucrative jobs that don't require a college degree tend to be in male-dominated fields - carpentry, electrical, etc. - which might explain why more women favor loan forgiveness." Younger people also tended to forgive the student loans, with those aged 18-49 clearly for it, while those 50 and up wanted the loans repaid. 30% of the younger group strongly agreed with the statement, while less than 19% of the older group strongly agreed. Of course, older people are not immune from the sting of student loan repayment. Adds Stefanie O'Connell, author of The Broke and Beautiful Life, "The average student loan debt has increased around $19,000 in just the past 14 years, so I can see why younger borrowers would be more eager to see student loans forgiven." Brandon Yahn, who himself paid back more than $40,000 in student loans, says, "Most young people (especially millennials) have seen how much of a burden student debt has had on them and their peers, so it's not a surprise that they would be interested in having all student debt taken away. This was clearly seen last year in the support that Bernie Sanders was able to garner in pushing for tuition-free college." Presidential preference certainly influenced the results, but not always as expected. Donald Trump supporters surveyed were against the concept of student debt forgiveness. Among the 164 winning voters who participated, the group who strongly disagreed was only one larger than the group who strongly agreed with the statement. Nevertheless, 25% simply disagreed with the statement, while less than 15% just agreed. Overall, nearly 48% of the Trump voters were against the idea, while less than 37% supported it. People who reported that they voted for Clinton were more likely to support the idea of forgiving federal student debt. 31% of the 156 Clinton voters who took part agreed strongly, while 16% more merely agreed. Contrast that to 14% who disagreed strongly and the 17% who disagreed. Since there were more Trump supporters than Clinton supporters in the survey, why did the overall numbers skew Clinton's way? The people who didn't vote in the 2016 Presidential election also want to wipe the student debt slate clean. More than 43% of them agreed or agreed strongly with the statement, while only 25% of them disagreed to some degree. While non-voters' views were similar to those of Clinton supporters, Americans who voted for third-party or write-in candidates surprisingly answered similarly to the Trump voters. 31% of them disagreed strongly with the statement, while less than 23% agreed strongly. Senator Bernie Sanders suggested free college tuition and lower interest rates for student borrowers during his ill-fated presidential campaign. Bucking stereotypes, the few "Bernie Bros" surveyed were even more opposed to student loan debt forgiveness than Trump supporters. Our favorite write-in candidate gleaned from the survey: Ivana Do Over! Says Student Loan Hero expert Miranda Marquit, "Many millennials, who thought they were doing the right thing, took on student loan debt only to graduate to an economy where jobs have been scarce and wages have been mostly stagnant for decades. Gone are the days when you could work for the summer and pay for the following school year. As a society, we sold a dream and failed to deliver. You can make payments on your loans for decades and barely make headway." Adds Marquit, "As a result, these millennials are unable to help the economy in other ways. Research indicates they are putting off financial milestones that come with economy-building benefits. All the consumption that comes with things like buying homes and starting families is being lost because the largest generation yet doesn't have money to spare. Student loan forgiveness would go a long way toward helping millennials feel stable enough to take the next steps in their financial lives, as well as even starting businesses." Find out quickly at what rate you can refinance your student loan. Photo © Posted at: Loan Debt Hurting Retail SalesNew Jersey's HESAA Student Loan Program Under FireObama Administration Announces New Loan Forgiveness Rules

Pre-Qualify Before Car Shopping

MoneyTipsYou may like shopping for a new or used car, but you will not like paying for it — especially when it comes to arranging the auto loan. The finance and insurance (F&I) office at the dealership is nobody's idea of a good time. How can you keep your time in the F&I office to a minimum? The easiest way is through pre-qualification for a car loan. Pre-qualification provides a solid estimate of the loan amount that you qualify for and the interest rates you will be charged through that institution. By pre-qualifying with a bank or credit union, you have an independent reference to compare to the financing offer from the dealership. The dealer will always prefer that you use their financing, because that's the more lucrative part of the auto business. Some car buyers simply agree to dealer financing out of convenience, others because they do not realize that they have alternatives, and still others because they incorrectly assume they can get the best interest rates from the dealership. In fact, rates are frequently higher with dealerships, and the alternatives are fairly simple with a bit of research. Keep in mind that advertised rates at dealers are only available to those with superior credit. If you have poor credit, it is even more important for you to pre-qualify to check your options. You can pre-qualify through your regular bank or credit union, which may offer you a discount for financing if you are already an account holder. Another option is through online sites such as Up2Drive, BlueHarbor, and Auto Credit Express. With poorer credit, pre-qualification through online sites may be your best option; some cater specifically to borrowers with lower credit scores. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips. Armed with pre-qualification, you can ignore the financing element at the dealership and focus on the price, knowing what you can afford to pay. Look for vehicles slightly lower than the loan amount to allow for all taxes and fees. Dealers may attempt to beat your pre-qualification deal, or add other incentives to sweeten the deal. Be very skeptical of any other offers from the dealership that retain a higher interest rate than your pre-qualification terms. There are other advantages of pre-qualification aside from negotiation with the dealership. You also have a solid budget to keep you from being tempted to buy a more expensive car than you can realistically afford. You can go one step beyond pre-qualification with pre-approval. Pre-approval means that you are approved for a loan amount instead of an estimate. This process includes a more extensive credit check and proof of income. If you can pass the criteria, you have an even greater influence with the dealership. You can stand completely firm with the original pre-approval offer, the equivalent of a check in your back pocket. Pre-approval through a bank or credit union gives you the ultimate in flexibility, since that is good with any dealership. Pre-approval with any dealership limits you to buying at that dealership. If you are going through the pre-approval stage, you should be ready to buy; when you are just exploring options and unsure about a purchase, stick with pre-qualification. If you have a preferred lender and dealer in mind, check with the lender to see if they have a list of approved dealers, and that your dealer is on that list. For new cars, you simply negotiate the price with the dealer and let them make arrangements with your lender. Lenders may have other stipulations on used car loans, such as a secondary loan limit that applies only to used cars or limits on the age and/or odometer reading. Check on these restrictions if you are thinking about buying a used car. Pre-qualification/pre-approval is a powerful tool for you to use at an auto dealership. You do not have to settle for the dealer's financing, which is often a worse deal for you. It is a great feeling to go into a car dealership with the upper hand. Consider getting pre-qualified or pre-approved for your auto loan at a bank or credit union, and experience that wonderful feeling for yourself. If you are interested in a personal loan, visit our curated list of top lenders. Photo © Originally Posted at: Keys to Buying a Used CarIs Your Car Dealer Financing Final?Online Car Loans 101
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