City of PSL: Business Tax Receipt Announcement - Starting April 1, 2020

MMG Tips & News

Florida orders two-week delay in property tax payment deadline.

The state on Thursday ordered a two-week delay in Florida property tax payments that were due March 31.

The due date is now April 15, said state Rep. Chip LaMarca, R-Lighthouse Point, who had urged Gov. Ron DeSantis to grant an extension.

 

Source: https://www.sun-sentinel.com/coronavirus/fl-ne-florida-property-tax-payment-coronavirus-extension-20200326-2ip4tgoqfffr3eszf3tq7tqmeu-story.html

Rents are increasing at double the rate of inflation

 

Single-family home rents increased by 2.9% in the year to January 2020, increasing pressure on stretched household budgets.

Many would-be renters are finding it harder to rent; and there’s a knock-on effect for those who are renting while saving for a mortgage down payment.

CoreLogic says that its Single-Family Rent Index decreased slightly from the 3.2% year-over-year increase seen in January 2019. They are also well below the 4.2% peak of 2016.

“The single-family rental market benefited from low unemployment rates over the past year, resulting in an increase in rental demand,” said Molly Boesel, principal economist at CoreLogic. “However, rents are increasing at about double the rate of inflation, which has negatively impacted affordability.”

Beyond the headline stats, the index shows that it is lower-end rentals that continue to see larger increases than the high-end segment.

Properties with rent prices less than 75% of the regional median, increased 3.5% year over year in January 2020 (in January 2019, the annual increase was 3.9%).

Meanwhile, properties with rent prices greater than 125% of a region’s median rent, increased 2.6% in January 2020, down from a gain of 2.9% in January 2019.

Fastest rising rents

Phoenix, AZ, remains the metro where single-family rents are rising the fastest (6.4%). This has been the case for 14 consecutive months.

Source: Rents are increasing at double the rate of inflation

Median home price is more affordable than in the 90s says Arch MI

 

Mortgage insurer says this is the case in most states but there are exceptions.

Strong increases in home prices may be challenging for first-time buyers but affordability of median prices homes is booming in many states.

Although there are exceptions, Arch Mortgage Insurance Company (Arch MI) says that its analysis shows that in some states affordability is at its highest for at least 30 years.

This is despite a 50% increase in home prices nationally since 2012.

“This may be surprising because we tend to focus on home prices rather than affordability,” said Dr. Ralph G. DeFranco, Global Chief Economist for Arch Capital Services Inc. “Affordability accounts for the offsetting factors of low interest rates and a 28% increase in median household income since 2012. Historic norms are a more logical basis of comparison than the easier-to-recall market bottom in 2012, when prices had over-corrected below long-term fundamental values because of the foreclosure crisis.”

The analysis finds that, nationally, it takes about 29% of a median household’s income to make the monthly mortgage payment (assuming 10% down) now, compared to the 34% average in 1987–2004, which is regarded as a historically “normal” housing market.

Higher priced markets, especially California and Hawaii, are notable exceptions.

However, while larger cities have seen a slower pace of price growth, some smaller markets such as Chico, California, and Jacksonville, North Carolina, are seeing stronger price acceleration.

Risk of lower prices

The Arch MI Risk Index assesses the risk of home prices declining based on a statistical model based on nine housing market health indicators.

Currently, the risk of a decline in prices nationally in the next two years is low at just 10%; the average of the past 30 years is 20%.

The states with the highest risk of having lower home prices in two years are Colorado and Oregon, both at 24%, followed by California at 22%, Washington at 21% and Alaska at 19%.

Among the 100 largest metros, the Miami, Florida, area has the highest Risk Index value (36%), followed by Lakeland, Florida (35%); Denver, Colorado (34%); Riverside-San Bernardino-Ontario, California (30%); and Portland, Oregon (27%).

Source: Median home price is more affordable than in the 90s says Arch MI

How to Remove Your Name From a Joint Credit Card

 

To remove your name, you’ll need to pay off and close the joint account. Find out the steps to close a joint credit card and how it affects your credit.

A joint credit card may be a good option in a number of scenarios. Maybe you want to simplify finances with your spouse, or perhaps you’d like to help your child improve their credit. If you have a joint credit card but no longer want it because circumstances have changed, you may want to remove your name from the account. Sounds easy, right?

Not necessarily. Unlike with an authorized-user credit card, where you can easily remove yourself from the primary user’s account, you’ll need to pay off and close a joint account if you no longer want the card. And because it’s a joint account, both cardholders will need to agree to closing it.

How to Close a Joint Credit Card

Fortunately, it’s fairly easy to close a joint credit card, as long as both parties agree to terminating the account. Here are the steps you’ll need to follow.

Pay off the balance. If you have a balance on your joint credit card, your card issuer will likely require you to pay it off before you close the account. If your issuer doesn’t require this, you’ll be on the hook for your minimum payments each month until the card is paid off. Continuing to pay off the balance could be challenging if you are closing the account due to a breakup or divorce, so try to come to an agreement with the other account holder to zero-out the balance before shutting the account.

Consider a balance transfer card. If you’re unable to pay the balance in full before closing the account, you could transfer the remaining amount to a balance transfer credit card in your name. These cards offer a low or 0% introductory interest rate for a set period of time, during which you can pay off the transferred amount. You’ll be responsible for paying off the transferred balance, but if you’re concerned the other party won’t hold up their end of the deal, this move could help protect your credit. Ideally, try to come to an agreement with the other account holder to split the balance.

Redeem rewards. If your joint credit card earns rewards, take a close look at your accumulated rewards. If you’ve earned cash back or points, redeem them before you close the account. You can split them in half with the other borrower or divide them in a different way.

Call your credit card issuer. Once you pay off the balance and redeem rewards, call your credit card issuer to let them know you’re closing your joint card account and make sure you’re meeting all prerequisite terms.

Confirm closure and monitor the request. The credit card issuer may send you an email or letter that asks you to confirm your request to close the account. Follow the instructions carefully so the account can be closed as quickly as possible. Check your credit report to make sure it no longer appears there.

Can Closing a Joint Credit Card Hurt Your Credit?

If you’ve got other credit card debt, closing a joint credit card can cause your credit scores to drop. Losing the available credit on the joint account will affect your credit utilization ratio, or the amount of credit you’re using divided by the total amount available. A low utilization ratio helps credit scores, while ratios higher than 30% can hurt them. Credit utilization is the second most important factor in your FICO® Score* , behind only payment history.

Your credit score may eventually take a small hit if you’ve had the joint credit card for many years. The age of your accounts plays a role in your credit scores, with a longer credit history contributing to a better score. However, if you close the joint account in good standing, it will remain on your account for up to 10 years, so the effect will not be immediate and should be minimal if you maintain good credit habits otherwise.

The good news is that while both of your credit scores may drop initially after you close the card, they can return to what they were before, as long as you keep making timely payments and open your own credit accounts that bring up your limit.

Wrapping Things Up

In a perfect world, you’d be able to remove your name from a joint credit card and move on with your life. Since this isn’t always possible, you’ll likely have to close the account for good. Fortunately, you can do so in a relatively short time period, especially if you and the other borrower can agree on how to pay off the remaining balance.

Source: How to Remove Your Name From a Joint Credit Card

A little insider info!

 

BY: MATTHEW GRAHAM

What The Fed’s Emergency Rate Cut Means For Mortgage Rates

Decrease Font SizeTextIncrease Font SizeMar 15 2020, 5:45PM

There are a lot of words here. If you have a mortgage you might ever refinance (and especially if you think Sunday’s emergency Fed news means you can now get a lower rate), read every last one of them.

 

It’s extremely important for the sound functioning of the mortgage market that consumers read and understand the following: THE FED DID NOT JUST CUT YOUR MORTGAGE RATES!

I’m not a loan officer. I don’t play one on TV. I don’t benefit from the decision you make on locking a mortgage rate. I’m just a guy who watches and understands the day-to-day movement in average mortgage rates better than just about anyone. It’s one of the few things in this life I will claim to be the best at. You can take what I’m saying to the bank, literally and figuratively.

I can’t count the number of articles I’ve written or the variety of ways I’ve reported mortgage rates moving in the OPPOSITE direction as a Fed rate cut/hike, or simply staying put despite a Fed cut/hike. Here’s a recent example from March 3rd.

The extent to which consumers and especially financial news media (who should REALLY know better by now) mistakenly believe the fallacy of the Fed dictating mortgage rates is truly unfortunate. Even now, you’re reading this article and some of you will still be contacting your originators asking if you can get a lower rate. But it doesn’t work like that. I urge you to avoid buying into misinformation. Make an effort to elevate your level of understanding. Start here:

Part 1: The Fed Funds Rate Itself

The Fed funds rate doesn’t directly affect any mortgage rates apart from home equity credit lines. While it often moves in the same direction as the traditional 30yr fixed mortgage rate in the long run, there are months and even years of time when they seemingly have nothing to do with each other.

This makes sense for a few key reasons. The Fed Funds Rate is a different animal than the mortgage rate. It applies to loans with a term of up to 1 day. That’s a far cry from the average mortgage, and investors approach those loans with completely different sets of priorities. That’s why we sometimes see longer and shorter term rates move in OPPOSITE directions (which accounts for the “inverted yield curve” phenomenon that made news in 2019 when 10yr Treasury yields were lower than all of the short-term rates under 2 years, including Fed Funds).

But even if long and short term rates always moved in the same direction, there’s a more important reason that mortgage rates might not follow the Fed. The bonds that dictate mortgage rates trade thousands of times a day. Mortgage lenders themselves update their rates at least once a day. In contrast, the Fed only meets to consider changing its rate 8 times a year, barring emergencies (like today). This means mortgage rates can and do move well in advance of Fed rate changes. Indeed, the behavior of longer-term rates like mortgages can often predict the market conditions that prompt the Fed to make a move.

Bottom line: the bond market (which includes mortgages rates) has been able to react to coronavirus implications for weeks, and the fed is just getting caught up to market realities. They’re a battleship in a river, and that river has been swift. If you need more convincing on this particular point, here is a more detailed conversation.

Part 2: What About the New QE?

QE = Quantitative Easing (the term for the Fed’s large-scale bond buying programs designed to lower interest rates and encourage free flow of lending/capital).

If you’ve been reading part 1 and thinking to yourself “ok smart guy, but what about the new mortgage bond buying the Fed just announced today?” Congratulations! You understand more than 99% of the population about what matters. The Fed did indeed announce new mortgage bond buying as a part of its QE package today. This will help restore the correlation between 10yr Treasury yields and mortgage rates, but it WON’T immediately restore the normal space between the them.

While mortgage rates definitely take cues from the broader bond market (especially when markets are relatively calmer), they move for several other reasons. That caused a lot of head scratching this week as mortgage rates jumped at the fastest pace EVER while many savvy consumers were still waiting for them to drop as much as Treasury yields had dropped.

One of the biggest reasons for the mortgage vs Treasury disconnect was a massive supply glut of new mortgage debt caused by rampant refinance demand recently. After all, even if people felt like rates SHOULD BE lower, they nonetheless hit new all-time lows last Monday and successively broke 3-year lows in few weeks prior. This flood of mortgages needed to be sold to investors in order for mortgage lenders to keep lending. But investors were no match for the unprecedented spike in supply. Like any marketplaces with way too many sellers and not enough buyers, prices rapidly fell, and falling prices on mortgages equate to higher rates for consumers.

Supply must also be considered from the lender’s standpoint. Even in cases where lenders still had money to lend, the record surge in refinance demand forced them to raise rates simply to slow the flow of new business.

Supply may have been the biggest issue for the mortgage market this week, but it wasn’t the only issue. Mortgage investors were also spooked by the speed of the decline in rates heading into March. When consumers pay off their old mortgages faster than expected (because they’re refinancing), mortgage investors earn less interest. That gives them another compelling reason to pay less for mortgage debt. And again, mortgage investors paying less for mortgages = higher rates.

To add insult to injury, 10yr Treasury yields moved significantly HIGHER throughout the week. So even if mortgage rates could have overcome all of their own specific issues, their typical guidance giver was still telling them to move higher.

Bottom line: mortgage rates have had no reason to move lower this past week and every reason to move higher. The Fed’s QE (just announced) sounds like a lot at $200 bln, but in this market, it won’t even cover 2 months’ worth of new mortgage supply. It’s a token handout meant simply to ensure the mortgage market continues to function smoothly, and not nearly enough to drop us instantly back to all-time lows. It’s a tourniquet, not a panacea.

Where rates go from here will depend on where the bond market goes. To be sure, there’s a very good chance that yields will stay extremely low and move lower due to what many see as a fairly large and inevitable recession. If that increasingly looks to be the case, mortgage rates will gradually return lower, BUT–and this is the important “but”–MORTGAGE RATES AREN’T DROPPING 0.50% TODAY AND THEY’RE NOT ANYWHERE CLOSE TO 0%. They were a lot closer to 4% on Friday afternoon (many scenarios were pricing-out higher than that).

By getting back into buying mortgage debt, the Fed is giving rates a fighting chance to head back toward all-time lows. It definitely won’t happen overnight and it isn’t a guarantee.

So what should you do?

I get asked for advice on rates more and more as the years go by, but clairvoyance remains elusive. I’ve never felt it wise or responsible to offer blanket advice to people with different scenarios and different levels of risk tolerance–especially when I can’t predict the future. Tonight is as close to an exception as we’ll get. Reason being: rates rose so much last week that it took the pressure off consumers who wanted to lock a lower rate. All you could do was to wait for things to come back in a friendlier direction.

As such, I would give anyone the same guidance right now:

If you haven’t done so already, make sure your originator has what they need in order to lock your loan when the time is right. Make a game plan. Talk about where rates are now and what rate you’re looking to lock. They HAVE to have what they need from you in order to lock, and they may not have a very big window in which to pull the trigger (that window was less than a few hours wide at the all-time low rates last Monday morning).

Above all else, please don’t call them and ask if you can get a lower rate now. Don’t ask them if the Fed just cut mortgage rates to 0% or if your rate is now going to be 0.50% lower (that could happen, but it didn’t happen today). I can give you the answer right here:

You can’t get a lower rate right now just because the Fed cut rates again

If you didn’t check on Friday afternoon, rates got a lot higher than you may have realized.

You CAN, however, probably get a lower rate at some point in the coming weeks thanks to the Fed’s reinvigorated mortgage bond buying efforts

Lower rates aren’t immediate or guaranteed, so make sure your originator has what they need from you in order to lock it when and if your desired rate becomes available

Source: What The Fed’s Emergency Rate Cut Means For Mortgage Rates

When Does a Late Payment Appear on My Credit Report?

 

A one-day late payment likely won’t show on your credit report. Find out when late payments are reported and what to do if you miss a payment.

A late payment will be noted on your credit report after you have skipped an entire billing cycle, usually about 30 days. Therefore, if your creditor’s due date was March 5 and it’s now March 6, the matter is just between you and them—they will not report this late payment to the credit bureaus.

That doesn’t mean you won’t be penalized in other ways. You’ll almost surely be hit with a stiff fee. You can be charged a fee up to $29 for the first late payment, then $40 each time you pay late within six consecutive billing cycles, according to the Consumer Financial Protection Bureau.

Another sharp penalty could be an interest rate hike. A credit card issuer has the right to raise your rate if you pay after the date your payment is due. This will be especially painful if you took advantage of a zero-interest balance transfer offer to avoid interest on another credit card. Zero-interest credit card offers usually come with promotional annual percentage rates (APRs) for a certain number of months, but that special rate will only remain if you follow the rules and pay on time.

So while a one-day-late payment will be absent from your credit reports, it has the power to hurt your bottom line.

When Are Late Payments Reported?

Now imagine you pay a bill after an entire billing cycle has lapsed, waiting until April 6 to make a payment that was due March 5. That means you’re behind enough for the issuer to furnish that information to the credit reporting agencies. It’s considered a 30-day late payment, and it will be noted on your credit report for up to seven years. Anyone who checks your report will see it and is free to form an opinion about it.

More important, a 30-day late payment will affect your credit scores. The two largest credit scoring companies—FICO® and VantageScore—rank payment history as the most important score factor, and thus a late payment will shave points from your score. The extent of the damage depends on the state of your entire credit history. If you have a long and strong pattern of using credit products responsibly—paying on time and keeping revolving debts low—a single late payment isn’t likely to drop your scores drastically. On the other hand, if you have very little on your credit report, your scores will likely decline markedly.

If you continue to let billing cycles elapse, your credit scores will be harmed more severely. The later a payment is, the more alarming it is to creditors and the more dramatically your credit scores will sink. Severely late payments could be an indication that you’re in financial trouble, and a signal to lenders that you pose a credit risk.

What to Do if You’ve Missed a Payment

Thankfully there are immediate steps you can take to reduce the problems associated with a missed due date.

Pay your bill now. Call your creditor or go online to pay your bill right away. Sending a payment by check will only cause an additional delay, and if it’s not quickly received and processed, you could reach the dreaded 30-day-late mark.

Ask the creditor for a break. Once the payment has been posted, call the creditor and ask to speak to someone who can help you with your account. If you have a compelling reason for paying late, explain what happened. Even if you don’t have a good excuse, politely request that the late fee be waived. Many credit issuers will grant your wish on the spot, especially if you have been managing the account well. If the issuer has increased your interest rate, ask how you can get it back down. For example, they may lower it if you pay on time for the next six months.

Sign up for automatic bill pay. A common reason people pay their bills late is because life gets in the way and they simply forget. You can avoid this issue by enrolling in your bank’s autopay system, which will submit a payment for you on the day of the month you request. If your payment is due on the 15th, you can have the amount owed deducted from your checking account on the 11th, guaranteeing on-time payments as long as you have the money in your checking account to cover it. Of course you should still monitor your accounts, but it’s a great way to streamline your financial affairs.

Take Control

Put yourself in a position of power and don’t let late payments become a habit. If you do, it can result in costly fees and a debt that takes longer and is more expensive to repay than you anticipate. Worse, it can lead to serious damage to your credit. Check your free FICO® Score* on Experian to see where those numbers are today, then take action to ensure they go nowhere but up.

Source: When Does a Late Payment Appear on My Credit Report?

What Is a Cash Back Credit Card?

 

A cash back credit card is a type of rewards card that gives you a percent of your spending back. Learn about the different types and how they work.

We all know money doesn’t grow on trees, but the closest thing might be getting a cash back credit card.

A cash back credit card is a type of rewards card that gives cardholders a percent of their spending back as an incentive. If you use your card frequently, you could accumulate a decent amount of cash back, but it’s important to make sure you aren’t overspending just to net these rewards.

What Are the Different Types of Cash Back Cards?

There are several varieties of cash back credit cards, and which one is best for you depends on your spending behavior, credit scores and other factors. Here are the main types of cash back cards:

Flat rate card: Some cash back cards offer a flat rewards rate, which means no matter how much you spend or what you buy, you will earn the same percent back—often 1%. Flat-rate cards don’t give you a ton of earning potential, but are a no-brainer if you prefer to always know what you’ll get.

Tiered card: If you’re hoping for a higher earning potential from your cash back program, consider a tiered card. With this type of rewards credit card, purchases earn a different rate of cash back depending on what you buy or where you buy it. For example, you might earn 3% cash back for every purchase on travel and restaurants, 2% on groceries and 1% on everything else. If you’re a frequent traveler, or a frequent diner, it could be smart to get a card like this that gives you a higher rate of cash back for a category you’re already spending a lot of money in.

Bonus category card: Still other cash back rewards cards offer rotating bonus categories. With these cards, there’s typically a low flat rate (such as 1%) for most purchases, but higher rates (usually 3% to 5%) for spending in bonus categories that may change every month or quarter. For example, you might get that higher cash back rate for every gas purchase one quarter, then the next quarter you’ll get an additional bonus for spending at restaurants. These cards take a little more work since you have to stay on top of the changing offers, and some issuers require you to register for the bonus categories in order to get them.

How Does Cash Back Work on Credit Cards?

Some credit cards have rewards programs that earn you points or miles that can be redeemed for travel or merchandise. But if you prefer a simpler program, and more direct access to cash rewards, you’re better off with a cash back card.

Cash back credit cards work by essentially giving you a rebate on your purchases. Typically, your issuer will give you the choice of how you receive the cash back: You can usually choose either to have it applied to your balance as a statement credit or as direct deposit to a checking or savings account. Some card issuers also still allow you to receive it as a check.

Depending on your card, you may also have the option to redeem your cash back rewards for other things, such as gift cards, travel reservations or merchandise. Before you apply for a cash back card, read the terms carefully so you understand your reward redemption options.

How Do I Choose the Right Cash Back Card?

With so many appealing cash back cards available these days, it can be hard to narrow down the best option for your wallet. Be aware that a good to excellent credit score is typically required to qualify for the best cash back credit cards, so if your credit isn’t stellar, you might need to work on improving it first.

As you compare cash back cards, first look at some of the basic terms that you would review anytime you’re shopping around for a new credit card. The card’s annual percentage rate (APR) is an important factor, especially if you plan to carry a balance. A high interest rate can take a bite out of your cash back rewards, so consider a low interest credit card if you don’t think you’ll be able to pay off your balance every month.

Next, check to see if there’s an annual fee. Annual fees are another expense that can take away from your cash back earning potential, but paying a fee could be worth it on high rewards rate cards. Some card issuers waive annual fees for the first year you have the card, so be sure to reassess the card’s value once the fee kicks in.

Once you’ve narrowed down your list a bit, it’s important to closely compare the cards’ benefits and rewards programs. Take a close look at the terms of each cash back program since they can vary significantly from card to card, with different limits or exceptions that may change the appeal of the card.

As you’re going over card terms, keep an eye out for rewards restrictions or limits: Some cash back cards put a cap on how much you can earn in certain categories. For example, you might earn a quarterly cash back bonus rate on up to $1,500 in gas station spending, with any spending beyond that earning the regular rate. Read the card terms carefully before you apply to avoid any surprises.

You may also want to consider if there’s a sign-up or intro bonus, which some cash back cards offer as incentives. These bonuses typically provide a sizable cash reward if you spend a certain amount within a few months of opening the card.

How to Use Your Credit Card Responsibly

Earning cash back is a great perk of some credit cards, but you can’t let that benefit lure you into irresponsible spending behavior. Make sure you’re familiar with how credit cards work and how to use them wisely and to your benefit rather than your detriment.

Spending in excess just to earn rewards isn’t a smart strategy, since that spending will almost certainly cost more than the benefit of the cash back. Plus, if you spend beyond your means and end up carrying debt, you’ll have to pay interest on it, which will further negate the potential cash back rewards.

The smartest way to use a cash back card is on everyday purchases you would have made anyway (like the ones that would normally go on your debit card). Then, pay off these purchases every month in full and on time every month. This way you’ll get the most out of your rewards card without paying interest or accruing debt.

There’s another reason why carrying a balance in the name of rewards is a bad idea: Having a high credit utilization ratio can hurt your credit. Your credit utilization ratio measures how much credit debt you have compared with your total available credit limit, and it plays a big role in your credit score. A ratio above 30% can make you look riskier to lenders and creditors and harm your credit score.

Find Out if You’ll Qualify

The perks of a cash back credit card can be substantial if they’re used on everyday purchases and paid off quickly. However, these cards are difficult to qualify for if you don’t have excellent credit. Not sure where your credit score currently stands? Check your credit report for free on Experian.

When the time comes to find the right cash back rewards credit card for you, Experian CreditMatch™ can pair you with a card that suits your goals and credit score.

Source: What Is a Cash Back Credit Card?

Best time to list your home for sale, state by state chart.

Rising homebuying demand amid lagging supply was already setting up a strong spring buying market. And then the Fed cut interest rates.

The decision to cut 50 basis points from the base rate will add further fuel to what is looking like a competitive few months ahead as the market tightened in February according to a new analysis.

In its Housing Trends Report, realtor.com says that national housing inventory declined 15.3% year-over-year last month, while the median US listing price grew by 3.9% to $310,000.

The decline in inventory, 184,000 listings, included declines of more than 20% in 25 of the nation’s 50 largest metros.

Source: Fed’s coronavirus cut is likely to fuel competitive spring market

Which Debts Should I Pay Off First?

 

Deciding what to pay off first will depend on your situation. It’s usually recommended to start with high-interest debt first. Find out what works for you.

If you’re dealing with a lot of debt, it can be hard to know how to start tackling it. While it’s generally recommended to first pay down your high interest debt, the right strategy for you can depend on your situation.

Regardless of which approach you take with your debt, the most important thing you can do to become debt-free is to create a plan and follow through with it.

Should You Pay Off Installment Loans or Revolving Credit First?

Debt is usually broken down into two groups: installment loans and revolving credit. Here’s how each works:

Installment loans: Installment credit comes in the form of loans that have equal monthly payments—often called installments—over a set repayment period. For example, when you get a 30-year mortgage loan, you get a lump sum to cover the cost of the sale, then the loan is paid off over that time. So you know exactly what you’re going to pay every month and when the loan will be paid in full.

Revolving credit: The alternative to a lump-sum loan amount, revolving credit accounts give you a line of credit that you can draw on, pay off and use again. Credit cards and lines of credit are considered revolving credit. Lines of credit typically have a draw period, followed by a repayment period, similar to an installment loan. With credit cards, however, there’s no set repayment period and your monthly payment is based on a percentage of your balance.

The decision of which type of debt to pay off first depends on a few things, so it’s important to understand the full extent of your situation.

Interest Rates

Again, the general recommendation is to focus on the debts with the highest interest rates. In many cases, that’s going to be credit cards. But for the most part, credit card interest rates max out at roughly 30%, and some traditional personal loans go as high as 36%.

If you have a personal loan for bad credit, payday loan, auto title loan or something similar, your annual percentage rate (APR) can be in the triple digits. So, take stock of all of your debts and how much they’re costing you to decide which one to tackle first.

Loan Terms

The urgency of your debt situation is another important factor to consider. For example, if you have five years left on your auto loan, you won’t run into any problems if you just continue making the regular monthly payment for now while you focus on other debts.

But if you have a payday loan, auto title loan or short-term personal loan, a delayed payoff could have drastic consequences, including damage to your credit score and more debt. In fact, the Consumer Financial Protection Bureau found that 80% of payday loans are rolled over into a new loan (re-borrowed) within a month, and nearly a quarter are rolled over at least nine times.

With auto title loans, not paying back the debt on time can result in the lender repossessing your vehicle. So if you have these types of loans, focus all of your efforts on paying them off as soon as possible so you’re not out of a way to get to work.

Your Spending Habits

If you’ve racked up a lot of credit card debt through overspending, the longer you keep those accounts open, the higher the chances are that you’ll continue racking up balances. In this scenario, it may be better to pay down your credit cards quickly and then close the accounts, even if you have a personal loan with a slightly higher interest rate.

Which Credit Cards Should You Pay Off First?

If you’ve decided to focus on your credit card debt first, and have multiple accounts, prioritize the card with the highest interest rate to save more money on interest.

To maximize your savings, use the debt avalanche method: Make just the minimum monthly payment on all of your cards except the one with the highest interest rate. With that account, put all of the extra money you can afford to pay it down faster.

Once you’ve paid off the balance on the card with the highest interest, take all of the money you were putting toward it every month, and apply it to the card with the next-highest rate in addition to the minimum payment you’re already making. Again, you’ll continue to pay just the minimum on your other cards.

You’ll repeat this process with each card until all of your credit card debt is paid off. The strategy is called the debt avalanche method because your payments will increase with each successive card, accelerating your progress more and more.

Another way to approach your credit card debt is with the debt snowball method. This approach works mostly the same as the debt avalanche method with one key difference: Instead of focusing on your balance with the highest interest rate first, you’ll pay down your smallest balances first.

This approach won’t save you as much money as the debt avalanche method would. But if you’ve struggled to get and stay motivated with debt payoff, getting quick wins in the form of paid-off accounts can help you keep that momentum going.

Consider Refinancing Options to Save More Money

As you’re paying down your debt, consider whether there’s a way to refinance some of your debt at a lower interest rate. This may be possible if your credit has improved since you first took out the debt. And if you have good credit, you may be able to qualify for a balance transfer credit card with an introductory 0% APR promotion.

Check your credit score and look into opportunities to consolidate or refinance your high interest accounts with a lower interest option. This process alone won’t solve your debt problem, but it can make it easier to manage, save you money and help you become debt-free sooner.

Source: Which Debts Should I Pay Off First?

Time Change 2020: 03-08-2020

When do the clocks spring forward or fall back in United States? Daylight Saving Time for 2020 and other years.

Mar 8, 2020 – Daylight Saving Time Starts

When local standard time is about to reach

Sunday, March 8, 2020, 2:00:00 am clocks are turned forward 1 hour to

Sunday, March 8, 2020, 3:00:00 am local daylight time instead.

Sunrise and sunset will be about 1 hour later on Mar 8, 2020 than the day before. There will be more light in the evening.

Taste of Little Italy, Pelican Island Wildlife Festival, St. Lucie County Fair top this weekend

 

Here are the best events and things to do this weekend in Fort Pierce, Port St. Lucie, Vero Beach, Sebastian, Jensen Beach, Stuart and Hobe Sound.

Source: Taste of Little Italy, Pelican Island Wildlife Festival, St. Lucie County Fair top this weekend

What are the Different Credit Score Ranges?

 

A credit score can range from 300 to 850 depending on the scoring model, such as a mortgage score. Bankcard and auto scores can range from 250 to 900.

To interpret your credit score, and what it tells you about your borrowing power, you need to understand where the score falls along the score range between the lowest and highest numbers generated by its scoring system.

All credit scores have the same basic goal: helping lenders (and other potential creditors, such as landlords and utility companies) understand how risky it may be to do business with you. High credit scores indicate a relatively low likelihood of default and relatively low risk for creditors. Lower scores, in turn, indicate greater risk.

An extremely low credit score, which suggests a history of poor debt management, may cause creditors to decide against lending you money, leasing you an apartment or issuing you phone or cable equipment. More often, lenders use credit scores, along with other information such as employment history and proof of income, to decide how much they are willing to lend you and at what interest rate. Landlords and utility companies also may use credit scores to help decide whether to charge you a security deposit—and how large it should be.

All other factors being equal, a higher credit score generally means you’ll pay lower interest rates, fees and deposits. Over the lifetime of a loan, even a small reduction in rate can save you thousands of dollars in interest, so it pays to have a high credit score.

Source: What are the Different Credit Score Ranges?

City of PSL: March 2020 Events.

The Events Calendar shows all City-sponsored special events.

https://www.cityofpsl.com/government/events-calendar