More Americans Defaulting On Credit Cards

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According to the Federal Reserve’s G.19 Consumer Credit report, America’s outstanding revolving debt – mostly credit card debt – was closing in on $1.04 trillion as of June 2018. How will we pay all that money back? An increasing number of Americans may not be able to do so.

ValuePenguin analyst Joe Resendiz calls credit card defaults “a cause for concern.” Resendiz highlighted increased second-quarter credit card default numbers for both JPMorgan and Bank of America as disturbing points amid generally good reports.

The second quarter 2018 Household Debt and Credit Report from the New York Federal Reserve backs up some of these concerns. At 6% of all consumer debt, credit card debt remains firmly in third place for all non-mortgage consumer debt behind student loans (11%) and auto loans (9%). However, the sheer number of credit card accounts – approximately 480 million, over four times the number of auto loan accounts and over five times the number of mortgage lo…

#1 Older Millennial Debt Is Not Student Loans

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According to Federal Reserve data, student loan debt has surpassed $1.5 trillion and comprises 11% of America’s collective household debt balance – second only to mortgage debt. More than 44 million Americans have student loan debt, with an average balance of around $33,000.

Given those statistics, you might expect student loans to be the biggest debt burden for millennials. However, at least part of the millennial generation has other debt concerns. According to the 2018 Planning and Progress Study from Northwestern Mutual, credit card debt outpaces student loan debt for older millennials (ages 25-34).

Among older millennials, credit card balances make up one-quarter of the average debt burden, compared to the 16% burden from student debt.They also carry more personal debt ($42,000) than the average personal debt of $38,000.

In some ways, this finding makes sense. Younger millennials are just starting their careers and beginning to pay down their stude…

Would You Share Your Driving Data To Save Money?

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By Stephanie Braun, Director of Auto Product Management at Esurance

Companies have collected data on their customers for decades. It allows them to offer more tailored services and products, and provide more relevant messaging. The reason data collection has gotten so much press lately is because it’s reached unprecedented levels. Already, we create 2.5 quintillion bytes of data each day. In fact, 90 percent of the world’s entire data reservoir was only created in the last two years. Automated technology like the self-driving car is expected to accelerate the quantity and quality of data that’s collected — perhaps exponentially.

Autonomous vehicles rely on real-time data collection to avoid accidents on the road and ensure engine performance. The suite of sensors and s…

Odd Online Loans

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Can you believe someone was able to borrow money online to buy basketball trading cards? Not just any card, but a Michael Jordan rookie card that could be worth six figures! While millions of people have borrowed money online to buy a house or condo, we found a social worker from New Mexico who used financing to finish paying off her yurt!

These wacky loan requests were both fielded by the online lender LightStream, which has lent money to good-credit borrowers for all kinds of reasons without any collateral. Among the oddest requests they have fulfilled:

  • A Kentucky man took $10,000 to buy a laser engraving cutter to pursue his hobby;
  • A social worker from New Mexico borrowed $15,000 to finish paying off her yurt;
  • An Arkansas resident borrowed $6,000 “for hearing aids and a car repair”;
  • A California man took out a $35,000 loan to purchase an “exquisite” Michael Jordan rookie card;
  • A Georgia resident got a $5,000…

Get Your Credit Card Payments Under Control With Tally

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By Emily Guy Birken

If you are carrying balances on multiple credit cards, it can be confusing to figure out the best way to make your monthly payments to minimize the interest you pay. Should you follow the “debt snowball” method to pay off your credit cards from lowest balance to highest? Or should you try to pay off your highest-interest cards first? And which card charges the highest interest, anyway?

This difficult equation becomes even tougher if you also struggle with organization, since you not only have to keep track of how much money to apply to each credit card, but you also have to stay on top of all of your due dates to avoid late fees.

That’s where Tally comes in. This fully-automated and fee-free app does the math for you to determine t…

Video: Are Credit Bureaus Actually On Your Side?

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In the wake of the Equifax hacking, many people reported on how the credit bureaus care more about businesses than consumers. In our exclusive video above, Nav Education Director Gerri Detweiler explains why she thinks that the credit bureaus do want you to understand your credit score and check your credit report.

If you would like to monitor your credit to prevent identity theft and see your credit reports and scores, join MoneyTips.

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New 3% Down Payment Mortgages Available

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Are you looking for a mortgage that features a low down payment but can’t find a suitable conventional loan because of various restrictions?The Federal Housing Administration (FHA) offers loan products with down payments of just 3.5% for borrowers with FICO credit scores as low as 580 – an attractive combination for potential homebuyers with lesser credit that are struggling to come up with a sufficient down payment.

However, the FHA faces increasing competition for the low-down-payment mortgage market. The government-sponsored enterprises Fannie Mae and Freddie Mac are increasing their push into this market with new loan programs that allow certain borrowers to purchase homes with only a 3% down payment.

Freddie Mac already offered 3% down mortgages under the Home Possible program designed to help low-income borrowers. The program features optional down payment sources such as family contributions and employee-assistance programs, along with income flexibility f…

Why Dropping Cash On RFID-Blocking Tech Is A Waste Of Money

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by Sandra Parsons

Radio Frequency Identification (RFID)-blocking technology is a multi-million-dollar industry. Consumers concerned about someone stealing their credit card info using RFID readers can buy wallets, purses, and even luggage with built-in RFID-blocking protection.

The problem is, they’re probably wasting their money.

What is RFID?

To put it simply, RFID is a method for transmitting data across radio waves. A scanner then picks up and reads the data. RFID has had many uses over the years, including enabling contactless payment in some credit cards.

RFID-Blocking Technology

When RFID-enabled credit cards first came on the scene in the U.S., they transmitted credit card numbers and expi…

Stressed By Home Buying? Don’t Be

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A Stressful Experience

What’s the most stressful event you’ve had in your life? Applying for college? Going on a job interview? Hosting Thanksgiving dinner for your entire family?

According to a recent survey by Homes.com, buying a home tops all of those events as “the most stressful event in modern life.” One-third of respondents said they were driven to shedding tears at some point during the process. One in ten homebuyers claimed to have buyer’s remorse after their home purchase.

Home buying can be a prolonged and confusing process – but you can reduce the stress with research and realistic expectations at every step.

Know What You Want

It’s easy to fall in love with a home at first sight, but you must look at your purchase with a practical eye.

According to the survey, the average family viewed six homes before making their choice. However, the high rate of buyer’s remorse suggests that many…