Credit Card Debt By Age And Income

MoneyTips

According to Federal Reserve data, America’s outstanding revolving debt – mostly credit card debt – stood at $1.055 trillion at the end of 2018. Who holds most of that debt?

ValuePenguin’s report on average credit card debt in America shows that households with the lowest net worth (zero or negative) have the highest average debt ($10,307). However, with respect to age and income levels, ValuePenguin data suggests that you’re more likely to hold the most debt if you are from 45 to 54 years old and have an income greater than $160,000.

Isn’t that contradictory? It seems that way at first glance, but there’s a difference between net worth and income. Households with higher incomes carry higher balances because they’re more likely to be able to pay them off whenever they choose. Households with no net worth are more likely to carry high balances because they have to.

Variou…

Debt Lasso Method Of Paying Off Debt

MoneyTips

If you’ve ever carried credit card debt (and most of us have), you know how difficult it can be to get out from under it. The Federal Reserve’s data shows that as of the fourth quarter of 2018, the average APR for all credit card accounts is 14.73%. With interest rates like that, it’s no wonder so many Americans struggle to pay off credit card debt.

When you’re ready to tackle your debt, it pays to be strategic. There are several approaches you can take. Popular examples include the Snowball method and the Avalanche method. The Debt Lasso method is a little more complicated but can save you money on interest and get you out of debt sooner.

The Debt Lasso Method: How it Works

The Debt Lasso metho…

4 Of 9 Credit Card Applications Submitted On Mobile Device

MoneyTips

You probably receive plenty of credit card offers, through both direct mail and digital methods like card issuer e-mails and social media ads. Which path is more effective? If you aren’t receptive to a new credit card offer, neither path works – but for consumers who are interested in a new card, digital methods are preferred.

The new Credit Card Response Rate Report from Mintel Comperemedia collected input from 3,000 consumers and found a significant trend toward digital credit card submissions. Credit card marketing offers are almost equally split between digital and non-digital methods, but nearly three-quarters (73%) of completed applications are received digitally. The remaining 27% are divided among in-person applications (11%), non-mobile phone applications (8%), and replies by mail (8%).

The convenience of mobile devices may also be aiding this trend. According to the Mintel report, 4 in 9 (44%) of all credit applications are completed using smartphones o…

Sexual Chemistry More Important For Singles With Lower Credit Scores

MoneyTips

What are your top five must-have factors in a romantic partner? If you selected trust, communication, honesty compatibility, and sexual chemistry, you’re in sync with most respondents in a new survey from Elevate’s Center for the New Middle Class.

The Elevate survey was designed to study how finances play a role in dating for both prime and non-prime Americans. Elevate defines prime consumers as those with credit scores above 700, while non-prime consumers – the New Middle Class – have credit scores below 700. You can check your credit score and read your credit report for free within minutes by joining MoneyTips.

Both prime and non-prime Americans cite the same five critical factors listed above, and non-prime Americans were slightly more likely than prime Americans to consider each element i…

8 In 10 Americans Want More Credit Card Protection

MoneyTips

Prior to the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, restrictions on credit card issuers were loose at best. In the wake of the Great Recession, the CARD Act imposed proof-of-income limits on card applicants under 21 years of age without an adult co-signer, set limits on interest rate increases on existing card balances, and directed payments above the minimum toward higher interest balances.

In addition, the CARD Act increased card issuer disclosure requirements. Cardholders must be told how long it will take to pay off an existing balance at the minimum monthly rate, and issuers now follow a standard template on fee and penalty disclosures.

As the CARD Act passes the ten-year milestone, CompareCards.com decided to survey over 1,000 consumers to evaluate the CARD Act and gather opinions on credit card regulation. An overwhelming number of respondents agreed that more should be done to protect consumers.

Only 6% of…

More Than 1 In 4 Whose Wallets Vanish Lose Cash, Credit And Debit Cards, And Driver’s License

MoneyTips

When your wallet or pocketbook disappears, it’s not just cash that you’re losing. MoneyTips wanted to see how often people lose credit cards, IDs, and even prescription medications when they are a victim of theft or their own forgetfulness. The loss of these items could lead to identity theft.

Warns Greg Scott, an IT professional and identity theft victim, “Let’s all just be smart on what we keep in our wallets and what we leave at home. The more physical identification somebody can steal from us, the easier to steal our overall identities.”

We polled 509 Americans in November to learn that nearly 2 in 3 Americans had either lost or had stolen their wallets, purses, pocketbooks or money clips (we’ll use ‘wallet’ from now on to represent these four accessories). We then asked those whose wallets vanished:

Top 5 Reasons For Personal Loans

MoneyTips

Do you whip out your credit card to take care of every large purchase? Maybe you shouldn’t. A personal loan may be a better alternative – but when would it be best for you?

A recent finder.com survey explored the reasons why just over one-third (34%) of Americans took out a personal loan in the last year. Says Jon Brodsky, finder’s Money Expert, “With roughly 34% of Americans claiming to have taken out a personal loan in the past year, it’s important to have a clear understanding of when a personal loan is the right fit for you financially.”

Vehicle expenses led the field, taken out by 31% of personal loan recipients. Since most Americans need a car and few can pay with cash, it’s not surprising that auto-related loans top the list. However, it is surprising that over one-quarter of Americans (26%) took out personal loans to pay bills – the second highest personal loan category. If you have to take out a loan to deal with regular monthly expenses, you need…

Americans Are On The Move

MoneyTips

Expand Your Horizons

You’ve been searching for a long time for your new home, without success. Maybe you’re looking in the wrong place.

According to the Census Bureau’s 2017 American Housing Survey (AHS), 35% of people who had recently moved did so because they wanted a larger or higher-quality home – and that dream home may require moving to a different area. The AHS found that another 18% relocated to reduce their housing costs. Apparently, an affordable home that met their needs (or wants) wasn’t available in their immediate area.

Relocation can mean anything from moving across town to moving across the country. How far are you willing to move away from your current home to find a different one? You may not be able to make a long-distance move. Jobs, family responsibilities, or schools may keep you nearby – or maybe you really like your current area and don’t want to move far away.

A recent NerdWallet study shows varied home migration…

Should You Pay Your Taxes With A Credit Card?

MoneyTips

It is hard to beat the convenience of a credit card for purchases, but does that same convenience make it worth paying your taxes by credit card? It might, but that depends on several factors involving money and time. “Your credit card is usually a high-interest option, but it is an option,” explains Betterment Head of Tax Eric Bronnenkant.

Before deciding whether to put your tax bill on plastic, consider the following:

  • Fees – By law, the IRS cannot pay credit card transaction fees. As a result, credit card payments to the IRS are handled through secure third parties approved by the agency. See the IRS website for a list of the approved payment processors and their fees.

    Credit card fees are percentage-based with a minimum “convenience fee” for smaller bills ranging from $2.50 to $2.69. Percentages range from 1.87% to 1.99…