Need A Car? Let Dick Scott Nissan Take Care Of All Your Needs!
This is where it all started guys. On a quiet summer afternoon I hit publish on my first post titled 10 Free Activities for Couples Paying off Debt and the rest is history. I thought it fitting to do…
The post 10 Free Holiday Activities for Couples Paying off Debt appeared first on Modern Frugality.
Source: modernfrugality.com
Debt can feel like a terrible thing, but paying off your debts is how you demonstrate that you can successfully manage your finances. Whether you make your debt payments on time makes up 35% of your credit score. Making on-time payments is one of the smartest ways to use your debt to your advantage.
If you need a little help, debt management apps can help you organize and manage all of your debts in one place. Just input all debt data into your phone and manage them there. Here are a few options to consider.
Get Help Now
Privacy Policy
| App | Best Used For | Price | Platform |
| Tally | Credit card management | Free to download | iOS and Android |
| Debt Book | Borrow/lender communication | Free | Android |
| Debt Manager | Snowball Method, debt summary and tracking, progress bar | $0.99 | iOS |
| Pay Off Debt | Motivation to make your debt payments | $4.99 | iOS and Android |
| Mint | Budgeting for debt payments | Web, iOS, and Android | |
| ChangEd | Student loan repayments | $1/month | iOS and Android |
| Unbury.me | Quick payoff calculator | Free | Web only |
| Digit | Savings to apply to debt | $5/month | iOS and Android |
| Credit Report Card | All-around financial wellness and credit score tracking | free | Web, iOS and Android |
Tally is a debt management app that makes it easy to save money by automating your credit card payments to help you reduce your debt faster. The app is free to download, but the real value of Tally comes if you are approved for a Tally Line of Credit that consolidates your credit card debt with a lower APR. Youâll owe interest on that loan, but Tally will automate your credit card payments and determine the best way to save you money based on your credit card rates. Â
>> See our full review
Debt Book is an app for borrowers as well as lenders. It allows you to track and update your debt in a âMaster Book,â which shows your borrowed/lent amount, how much has been paid/collected, and how much remains. The app also gives you options to view this data in a statistical chart for a visual representation of your current debt situation. And if the borrower and lender are both on the app, they can communicate and send payments through the app. This makes it easier to stay in contact with one another and to stay on top of existing debt.
Debt Manager uses your debt information to create progress bar graphs to help you see how far along you are in paying off each debt, how much debt is remaining, and your interest rate. The application specifically focuses on the Snowball Method to track and pay off all debts quickly and efficiently. The interactive app gives hints and tips based on your debt situation. You can also track monthly payments within the app manually or automatically and test out different âWhat If?â scenarios.
Pay Off Debt helps you choose the payoff method and order that works best for you. You can use the debt snowball method, debt avalanche method, or something else. Track your payoff progress and the interest youâve saved. Pay Off Debt also prioritizes keeping you motivated during your debt payment journey: the app provides a burst of motivation with a PAID icon each time you pay off a debt, and you can add pictures to symbolize your âWhy.â
Youâll need to budget in order to efficiently pay off your bills. Mint helps you do just that. Itâs one of the best-known budgeting apps for good reason. Itâs easy to use and is packed with extra features. Mint gathers everything in one placeâyour cash, credit cards, loans, investments, credit score, and more. Track your bill payments, budget for future payments, and get alerts when you overspend or a bill is due.
A round up app like Acorns, ChangEd is an easy way to automate regular extra payments to pay off your student loans early. Connect your loans and bank accounts and create an FDIC-insured ChangEd savings account. As you spend, ChangEd will roundup your purchases and transfer those roundups to your ChangEd savings account. Once you reach $100, theyâll send that money to the student loan you want to pay off first.
If you want a quick and easy way to visualize your debts and how long it will take you to pay them off, Unbury.me is a great tool. You donât need an account to use itâjust start entering your informationâbut you can sign up for a free account to save your information. Enter the principal remaining, interest rate, and monthly payment and see how long it will take to pay off those loans based on the payment methods you choose.
In order to pay off your debts, you need money. Thatâs where an app like Digit comes in. Itâs not a traditional debt management app, but itâs definitely a debt management tool. For $5 per month, it helps you save automatically without even thinking about it. You wonât miss the money it puts in savings for you, but you will benefit from it when itâs time to pay your bills.
If you want to see how your debt management is improving your credit, sign up for Credit.comâs free Credit Report Card. Our Credit report Card is an easy-to-understand breakdown of your credit report information that uses letter grades so you can track âplus you get a free credit score updated every 14 days.Â
Regardless of what approach you prefer to manage your debt, these apps have options for everyone. We suggest taking a look at which app works best for you and personalizing it to fit your needs.
Ready to take your finances to the next level? Sign up for ExtraCredit. This five-in-one financial tool will help you build, track, protect, and restore your credit profileâand reward you while youâre at it! Learn more about all the amazing benefits of an ExtraCredit account at Credit.com/Extracredit.
The post 9 Apps That Will Help You Manage Your Debt appeared first on Credit.com.
Source: credit.com
When it comes to making a 401k early withdrawal, there are a number of reasons why it might be tempting. With millions still unemployed due to the pandemic, unexpected expenses are taking a particularly hard toll. One reason why early withdrawal isnât uncommon in the U.S. might be because itâs easy to assume youâll have time to rebuild your 401k nest egg.
However, is the benefit of withdrawing your retirement savings early truly worth the cost? For many people, their 401k is their primary method of investing in their financial future. Before making a decision about early withdrawal, itâs important to consider the penalties and fees that could impact you. Read on to learn exactly what happens when you decide to dip into your 401k so you wonât be surprised by the repercussions.
On the surface, withdrawing funds from your 401k might not seem like a bad option under extenuating circumstances, but you could face penalties. Young adults are especially prone to early withdrawals because they figure they have plenty of time to replace lost funds.
If youâre not experiencing a significant hardship, 401k early withdrawal probably isnât the right choice for you. Ultimately, you could lose a substantial portion of your retirement savings if you choose to withdraw your 401k early to use the money to make other risky financial moves. Below, letâs delve further into the penalties that usually apply when you withdraw early.
When you prematurely withdraw from your retirement account, your first consideration should be that youâll have to pay normal income taxes on that money first. This means youâre losing at least roughly 30 percent of your savings to federal and state taxes before additional penalties.
Even if you only have $10,000 you want to withdraw, consider that youâre automatically giving $3,000 of your cash to the government. In the best case scenario, you might receive some money back in the form of a tax refund if your withholding exceeds your actual tax liability.
If you withdraw money from your 401k before youâre 59 ½ , the IRS penalizes you with an extra 10 percent on those funds when you file your tax return. If we use the example above, an additional $1,000 would be taken by the government from your $10,000 â leaving you with just $6,000. If youâre 55 or older, you could try to get this penalty lifted by the IRS through the Rule of 55, which is designed for people retiring early.
Also, there are exceptions under the CARES Act, which is designed to help people affected by the pandemic. There are provisions under the act that state individuals under the age of 59 ½ can take up to $100,000 in Coronavirus-related early distributions from their retirement plans without facing the 10 percent early withdrawal penalty under certain conditions.
Even if youâre not deterred by tax penalties, think twice before you sabotage your long-term retirement savings goals. When you withdraw money early, youâll miss out on potential future savings growth because you wonât gain the perks of compound interest. Compounding is the snowball effect resulting from your savings generating more earnings â not only on your principal investment but also on your accrued interest.
Also, if you make a 401k early withdrawal while the market is down, youâre doing yourself a disservice because youâll be leaving thousands on the table. Itâs unlikely youâll fully recover the lost years of compound interest you would have benefited from. You might need to get creative with a passive income stream to help support you later in life.
In certain cases, it actually might be strategic to move forward with 401k early withdrawal. For example, it could be smart to cash out some of your 401k to pay off a loan with a high-interest rate, like 18â20 percent. You might be better off using alternative methods to pay off debt such as acquiring a 401k loan rather than actually withdrawing the money.
Always weigh the cost of interest against tax penalties before making your decision. Some 401k plans do allow for penalty-free early withdrawals due to a layoff, major medical expenses, home-related costs, college tuition, and more. Regardless of your strategy to withdraw with the least penalties, your retirement savings are still taking a significant hit.
Knowing the differences between a 401k early withdrawal, a hardship withdrawal, and a 401k loan is crucial. Due to the many obstacles to make a 401k early withdrawal, you may find you want to keep it untouched. If youâre convinced you still need to use your 401k for financial assistance, consult with a trusted financial advisor to figure out the best option.
|
When Does This Apply? |
Taxes and |
|
|
Early Withdrawal |
Your funds are withdrawn to pay off large debts or finance large projects. | Your 401k fund is typically subject to taxes and penalties. |
|
Hardship Withdrawal |
Youâre only eligible for this type of withdrawal under circumstances such as a pandemic or natural disasters. | Withdrawals canât exceed the amount of the need and the funds are still subject to taxes and penalties. |
|
401k Loan |
The loan must be paid back to the borrowerâs retirement account under the plan. | The money isnât taxed if the loan meets the rules and the repayment schedule is followed. |
If youâve left a job and donât know what to do with your Roth IRA, a 401k transfer is a good option. Most likely, you will save money and have a wider range of investment options when you transfer your funds. 401k fees can be high, and rolling over your funds to a Roth IRA account could be wise in the long run. Also, be aware that the process is more complicated for indirect rollovers.Â
In short, 401k early withdrawals are usually counterproductive. Prevent compromising your hard-earned savings by using a free budgeting tool that will set you up for success. After all, being prepared and informed are two of the most important parts of maintaining financial health.
Source: SEC
The post 401k Early Withdrawal: What to Know Before You Cash Out appeared first on MintLife Blog.
Source: mint.intuit.com
Life in the military offers some distinct experiences compared to civilian life, and that includes your budget and finances. The pre-deployment process can feel overwhelming, especially when youâre organizing your money and bills.Â
Itâs important you provide your family with everything they need to keep you and any dependents comfortable and stable. This means gathering paperwork, making phone calls to service providers, creating new budgets, and organizing your estate. The more you prepare ahead of time, the less you have to worry about the state of your investments and finances when you return home.Â
To help make the process easier, weâve gathered everything you need to know for deployment finances. Read on or jump to a specific category below:
Pre-Deployment Needs
Deployment Needs
Post-Deployment Needs
Thereâs a lot of paperwork and emotions involved in preparing for deployment. Make sure you take plenty of time for yourself and your loved ones, then schedule time to organize your finances for some peace of mind.Â
investments, and dependents. Itâs an important conversation to have with your partner and establishes:
Anyone with property, wealth, or dependents should have some estate planning basics secured. These documents will protect your wishes and your family in the event you suffer serious injury. There are several military resources to help you prepare your estate:
Your pay may change during and after deployment, which means itâs time to update your budget. Use a deployment calculator to estimate how your pay will change to get a foundation for your budget.Â
Typically, we recommend you put 50 percent of your pay towards needs, like rent and groceries. If you donât have anyone relying on your income, then you should consider splitting this chunk of change between your savings accounts and debt.Â
Make sure you continue to deposit at least 20 percent of your pay into savings, too. Send some of this towards an emergency fund, while the rest can go towards your larger savings goals, like buying a house and retirement.Â
Use these resources to help calculate your goals and budgets, as well as planning for your taxes:
Itâs best to organize and arrange all of your documents, information, and needs into a deployment binder for your family. This will hold copies of your estate planning documents, budget information, and additional contacts and documents.Â
Make copies of your personal documents, like birth certificates, contracts, bank information, and more. You also want to list important contacts like family doctors, your petâs veterinarian, household contacts, and your power of attorney.Â
Once you have your book ready, give it to your most trusted friend or family member. Again, this point of contact will have a lot of information about you that needs to stay secure. Finish it off with any instructions or to-dos for while youâre gone, and your finances should be secure for your leave.Â
Though most of your needs are taken care of before you deploy, there are a few things to settle while youâre away from home.Â
Romance and identity scams are especially popular and can cost you thousands.Â
Since you wonât be responsible for as many bills, and you may have reduced debt interest rates, deployment is the perfect time to build your savings.
While youâre deployed, you may be eligible for the Department of Defenseâs Savings Deposit Program (SDP), which offers up to 10 percent interest. This is available to service members deployed to designated combat zones and those receiving hostile fire pay.
Military and federal government employees are also eligible for the Thrift Savings Plan. This is a supplementary retirement savings to your Civil Service Retirement System plan.
Deployment can be a financially and emotionally difficult time for families of service members. Make sure you and your family have easy access to financial aid in case they find themselves in need.Â
Each individual branch of the military offers its own family and financial resources. You can find additional care through local support systems and national organizations, like Military OneSource and the American Legion.Â
Coming home after deployment may be a rush of emotions. Relief, exhaustion, excitement, and lots of celebration are sure to come with it. Thereâs a lot to consider with reintegration after deployment, and that includes taking another look at your finances.Â
Just like before deployment, you should update your budget to account for your new spending needs and pay. Itâs time to reinstate your car insurance, find housing, and plan your monthly grocery budget.Â
After a boost in savings while deployed, you may want to treat yourself to something nice â which is totally okay! The key is to decide what you want for yourself or your family, figure if itâs reasonable while maintaining other savings goals, like your rainy day fund, and limit other frivolous purchases. Now is not the time to go on a spending spree â itâs best to invest this money into education savings, retirement, and other long-term plans.
In addition to your savings goals, make sure youâre prepared to take care of yours and your familyâs health. Prioritize your mental health after deployment and speak with a counselor, join support groups, and prepare for reintegration. Your family and children may also have a hard time adjusting, so consider their needs and seek out resources as well.Â
FTC | NFCCÂ
The post Guide to Managing Finances for Deploying Service Members appeared first on MintLife Blog.
Source: mint.intuit.com
Today we have a guest post from Lindsey Ralston of Big House in the Woods. Sheâs sharing her personal story of how she paid off her mortgage early and had fun while doing it. Hope you enjoy it! We paid…
The post 5 Ways Thrifty-Frugal Fun Made Paying Off Our Mortgage a BLAST! appeared first on Modern Frugality.
Source: modernfrugality.com