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☆ Medical Debt Shows Up Less Often on Credit Reports
▼ + stars: | 2024-05-03 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Rohit Chopra, the bureau’s director, said in a statement that “further reforms” were needed to scour medical debt from credit histories. The bureau is considering a rule to ban medical debt from consumer credit files. The bureau estimated in a 2022 report that well over half the debt that appeared on credit reports as being in collection was medical debt. People can incur medical bills unexpectedly, and many think that their health insurance will cover the costs. And the consumer bureau previously found that medical collection debt reported to the credit bureaus was “plagued by inaccuracies.”

Persons: —, TransUnion —, Rohit Chopra Organizations: Consumer Financial

☆ Louisiana Will No Longer Require Students to Fill Out FAFSA to Graduate
▼ + stars: | 2024-04-26 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

High school seniors are more likely to attend college if they complete the federal financial aid form known as the FAFSA, or Free Application for Federal Student Aid. But the state that was the first to require students to fill out the form to graduate, Louisiana, has reversed course and dropped the mandate, after state officials decided it was too intrusive. (The network prefers to call such practices “universal FAFSA” policies, rather than “mandatory,” because all states with the requirement allow students and their parents to opt out if they don’t want to fill out the form.) “We know FAFSA completion and enrollment are associated with each other,” Mr. DeBaun said. Filing the form allows students to get their share of federal grants.

Persons: ”, Bill DeBaun, Mr, DeBaun Organizations: Federal Student Aid, National College, Network Locations: Louisiana

☆ Thousands Are Eligible for Tax Refunds From 2020
▼ + stars: | 2024-04-19 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Who wouldn’t grab an income tax refund if they had one coming? About 940,000 people, it turns out — because they haven’t filed returns for the 2020 tax year, even though they may be due money back for that year. But there’s still close to a month left to file and collect the refunds. The Internal Revenue Service estimates that the typical refund for the people in this group is more than $900. “There’s money remaining on the table for hundreds of thousands of people who haven’t filed 2020 tax returns,” the I.R.S.

Persons: there’s, “, haven’t, Daniel Werfel, Werfel, Eric Smith Organizations: Internal Revenue Service Locations: Idaho, New York, Pennsylvania

☆ That Giant College ‘Sticker’ Price Isn’t What Most Students Pay
▼ + stars: | 2024-04-12 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Families with college-bound students may well have shuddered when they heard that the official, full cost of a year at some four-year private schools will soon hit six figures. But outrage over mushrooming college “sticker” prices clouds a reality that some families may not fully understand: Few students pay the full price. On average, private nonprofit colleges cut tuition by more than half for first-time undergraduates, according to a recent report from the National Association of College and University Business Officers. That means college sticker prices — the full “cost of attendance” that the federal government requires colleges to publish — are an increasingly unreliable indicator of what a family will pay, according to a report titled, in part, “Ignore the Sticker Price,” and published Friday by the Brookings Institution, a Washington think tank. That goes for both low- and middle-income families, as well as for higher-income families that don’t qualify for need-based aid.

Persons: ” Organizations: National Association of College and University Business, Brookings Institution Locations: Washington

☆ Closing Costs for Buying a Home Have Risen Along With Rates
▼ + stars: | 2024-03-15 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

A pricey housing market and higher interest rates have made it harder to afford a house, but related expenses known as closing costs also add to the home-buying challenge. Borrowers typically paid about $6,000 for such costs in 2022, up from about $4,900 in 2021. That was on top of a down payment and other costs. The average monthly payment for a 30-year fixed-rate mortgage rose 46 percent, to $2,045 at the end of 2022 from $1,400 a year earlier, the bureau found. The median price of a single-family home in January was $383,500, up 5 percent from a year earlier, the National Association of Realtors reported.

Organizations: Consumer Financial, National Association of Realtors

☆ Car Deals Are Easier to Find but Lenders Are Tightening Their Terms
▼ + stars: | 2024-03-08 | by ( Ann Carrns | ) www.nytimes.com time to read: 1 min

New cars are more available this spring, and manufacturers have even begun offering deals to entice buyers. But at the same time, lenders have been tightening the terms of car loans as they deal with a rising number of delinquencies. That has made it harder for some people to get affordable loans. The impact was seen at banks, credit unions and dealerships. “We are seeing credit access tighten in all channels,” said Sean Tucker, a senior editor at Kelley Blue Book, Cox’s car research and sales website.

Persons: ”, Sean Tucker, Kelley Organizations: Cox Automotive

☆ Report Helps Answer the Question: Is a College Degree Worth the Cost?
▼ + stars: | 2024-03-01 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Most people go to college to improve their financial prospects, though there are other benefits to attending a postsecondary institution. But as the average cost of a four-year degree has risen to six figures, even at public universities, it can be hard to know if the money is well spent. A new analysis by HEA Group, a research and consulting firm focused on college access and success, may help answer the question for students and their families. The study compares the median earnings of former college students, 10 years after they enrolled, with basic income benchmarks. Still, more than 1,000 schools fell short of that threshold, though many of them were for-profit colleges concentrating in short-term credentials rather than traditional four-year degrees.

Organizations: HEA Group

☆ Looking for a Lower Credit Card Interest Rate? Good Luck.
▼ + stars: | 2024-02-23 | by ( Ann Carrns | ) www.nytimes.com time to read: 1 min

Credit card debt is rising, and shopping for a card with a lower interest rate can help you save money. But the challenge is finding one. Smaller banks and credit unions typically charge significantly lower interest rates on credit cards than the largest banks do — even among customers with top-notch credit, the Consumer Financial Protection Bureau reported last week. But online card comparison tools tend to emphasize cards from larger banks that pay fees to the sites when shoppers apply for cards, said Julie Margetta Morgan, the bureau’s associate director for research, monitoring and regulations. “It’s pretty hard to shop for a good deal on a credit card right now.”For cardholders with “good” credit — a credit score of 620 to 719 — the typical interest rate charged by big banks was about 28 percent, compared with about 18 percent at small banks, the report found.

Persons: Julie Margetta Morgan Organizations: Consumer Financial

☆ Employers Can Now Enroll Workers in Some Emergency Savings Accounts
▼ + stars: | 2024-02-09 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Starting this year, a federal law allows employers to enroll workers in emergency savings accounts that are linked to their retirement accounts. “I do think there is tremendous interest in emergency savings programs,” said Matt Bahl, vice president and head of workplace financial health at the Financial Health Network, a nonprofit that promotes financial well-being. Of those, about a third said they offered an emergency savings account feature and another third planned to do so in the next year or two. For instance, only workers making under a certain income limit ($155,000 for 2024) may participate, and their emergency savings are limited to $2,500, though employers can set lower ceilings. And though employers can help with contributions, they must deposit any match into the worker’s retirement account — not the emergency savings account.

Persons: ”, Matt Bahl, Mr, Bahl, — Organizations: Financial Health Network, Research Institute

☆ F.T.C. Warns Dozens of Funeral Homes to Provide Accurate Costs to Callers
▼ + stars: | 2024-02-02 | by ( Ann Carrns | ) www.nytimes.com time to read: 1 min

The Federal Trade Commission said its first “undercover phone sweep” of funeral homes across the country had found that dozens didn’t accurately disclose costs for services to callers. Of the more than 250 funeral businesses F.T.C. employees called, 38 either didn’t answer questions about prices or supplied inconsistent prices for identical services, the commission said. The 39 funeral homes received warning letters in January that they had failed to comply with a law known as the Funeral Rule. enforces the rule, which outlines protections for consumers shopping for funeral services.

Organizations: Federal Trade Commission

☆ More Tenants Can Now Add Rent Payments to Their Credit Score
▼ + stars: | 2024-01-26 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

As it stands, few landlords routinely report rent payments to credit bureaus. (Negative rent information can end up in credit files if a landlord reports delinquent accounts or sends them to a collection agency.) But in recent years, policymakers have been exploring whether consumers can benefit from having on-time rent payments included in credit scores, just as payments for mortgages, car loans and credit cards are. Reporting on-time rent payments is viewed as a way to reduce disparities in homeownership. TransUnion has been able to include rent payments in its credit reports since 2016 and has seen increasing interest from property managers, said Maitri Johnson, vice president of tenant and employment screening at the credit bureau.

Persons: isn’t, Fannie Mae, TransUnion, Maitri Johnson, Johnson Organizations: Self Financial, Urban Institute Locations: homeownership

☆ Lugging Credit Card Debt Into 2024? Now’s the Time to Make a Plan.
▼ + stars: | 2024-01-12 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Mindy Neira, a financial planner in Westwood, N.J., recommended that if you were having trouble managing card debt, take stock of your spending. He advised paying off the card with the highest interest rate first by making more than the minimum payment. (This is sometimes called the “avalanche” method: While paying off that card, you make minimum payments on the others. Another suggestion: Use two separate checking accounts, said Alvin Carlos, a financial planner in Washington, D.C. Use one for fixed essentials like your rent, mortgage or loan payments. (Ask your bank to make sure there are no extra fees for a second spending account.)

Persons: Mindy Neira, “, ”, Neira, Rob Williams, Charles Schwab, Luis Rosa, Alvin Carlos, Carlos Locations: Westwood, N.J, Las Vegas, Washington ,

☆ More States Now Require Financial Literacy Classes in High Schools
▼ + stars: | 2023-12-01 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Requiring all students to take a financial literacy course can help reduce such inequality, Mr. Pelletier said. Carly Urban, a professor of economics at Montana State University who studies financial literacy, said that discussions about what topics should be taught in classrooms are often bitterly divisive, but state legislators appear to be finding common ground supporting high school financial instruction. Most American adults said they wanted their states to require a semester- or yearlong financial course to graduate from high school, according to a 2022 poll from the National Endowment for Financial Education. Over the years, questions have arisen about whether high school financial literacy classes are effective. High school financial instruction, she said, “overwhelmingly” improves credit scores, lowers loan delinquency rates and reduces the use of risky services like payday lending.

Persons: —, Pelletier, Carly Urban, Urban, “ Organizations: FINRA Investor Education Foundation, Financial Industry Regulatory Authority, Montana State University, National Endowment, Financial Education, Champlain College

☆ Tip a Self-Service Kiosk? How to Deal With the Many Requests for Tips.
▼ + stars: | 2023-11-17 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Mr. Rossman recalled encountering a tip screen this year at a self-checkout station at Newark Liberty International Airport. Replacing the old-fashioned tip jar, new digital payment systems have made it easy for businesses to ask customers for tips electronically. So for some, it can feel awkward to tap “other amount” or “no tip” on a payment screen if they feel that the employee or others in line are watching. More generous tipping practices took hold earlier in the coronavirus pandemic, with people inspired to help frontline workers. But as the pandemic eased, higher inflation took hold, and tipping as a percentage of a pricier meal tab became more noticeable.

Persons: Rossman, “ It’s, Michael Lynn Organizations: Newark Liberty International Airport, Cornell University

☆ Higher Contribution Limits Are Coming for 401(k) Retirement Plans
▼ + stars: | 2023-11-10 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Even if you can contribute the maximum amount, that doesn’t necessarily mean you should, Mr. McBrien said. You may have other goals to save for besides retirement, said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute. Under the Secure 2.0 Act, a law passed late last year, savers earning $145,000 or more who make 401(k) catch-up contributions would have had to make them as pretax Roth contributions starting in 2024. Can I change the amount of my 401(k) contributions after open enrollment? But while health insurance choices are typically fixed for the full year unless you have a big change in your life, many employers let you tweak your retirement contributions at any time.

Persons: don’t, Kyle McBrien, McBrien, ”, Craig Copeland, “, Roth, pretax Roth Organizations: Research

☆ Open Enrollment Begins for Affordable Care Act Health Plans
▼ + stars: | 2023-11-03 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Unsubsidized monthly premiums — the “sticker” price — for a benchmark silver plan are rising 4.5 percent on average as a result of inflation and greater use of health care services since the pandemic, according to a KFF analysis. (Plans are grouped by metal levels, ranging from bronze plans, which have low premiums but higher out-of-pocket costs, to gold and platinum plans, which have higher premiums and lower out-of-pocket costs.) The average monthly premium for a benchmark silver plan is expected to be about $477 for an individual, and the average lowest-cost bronze plan $364, KFF found. Most marketplace customers, however, don’t pay those sticker prices, because tax credits lower their monthly cost — to zero, in some cases. Premium tax credits are based on a family’s size and income and the cost of plans in the area.

Persons: Cox, ”, KFF Organizations: Affordable Care, D.C Locations: Washington

☆ TransUnion Failed to Quickly Place or Remove Freezes on Credit Reports
▼ + stars: | 2023-10-27 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Freezing your credit report has long been regarded as one of the best steps to take to make sure identity thieves cannot obtain loans or credit cards in your name. And consumer advocates continue to recommend freezes despite recent revelations that TransUnion, one of the three major credit bureaus, botched “tens of thousands” of freeze requests over a period of years. “It’s still a good idea to freeze your credit,” said Mike Litt, director of the consumer campaign at PIRG, a network of public interest advocacy groups. The Consumer Financial Protection Bureau earlier this month ordered TransUnion to pay $8 million for misleading consumers who believed they were protected by freezes but were not because the company’s computer systems were overwhelmed by requests and failed to activate them, according to an administrative settlement between the bureau and TransUnion and two subsidiaries. The total includes a $5 million penalty and $3 million to compensate customers.

Persons: “ It’s, ”, Mike Litt, TransUnion Organizations: Consumer Financial Locations: PIRG

☆ Beware Companies Selling Credit ‘Repair’ Services
▼ + stars: | 2023-09-15 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

But beware the companies that sell credit “repair” services over the phone and charge fees upfront. Credit repair companies typically bombard credit bureaus with dispute letters in the hope of getting negative marks deleted, said Andrew Pizor, a senior attorney at the National Consumer Law Center. Occasionally, the repair companies’ efforts may work, Mr. Pizor said, but any benefit is often temporary. If the negative information is accurate, there’s generally no way to have it erased, Mr. Pizor said. Paying for credit repair, he said, is “really a waste of money for the vast majority of people.”

Persons: Andrew Pizor, don’t, Pizor, you’ve, ” Organizations: Consumer Financial, PGX Holdings, Progrexion, Lexington Law, National Consumer Law Center

☆ Why Some Ex-Workers at Bed Bath & Beyond Face 401(k) Losses
▼ + stars: | 2023-09-09 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Federal law generally protects savings in workers’ retirement plans when a company files for bankruptcy protection or goes out of business. Yet there may still be situations when employees lose money, as some former workers at Bed Bath & Beyond have discovered. Bed Bath & Beyond, a home furnishings retailer, filed for bankruptcy protection in April and has been closing up shop and selling off assets. Some former workers, who had invested in a “guaranteed interest account” that they believed was low risk, saw losses of about 10 percent related to the plan’s termination. One saver shared a financial statement showing he had lost about $10,000 in his guaranteed interest account, while another said he had lost more than $2,000.

Persons: ”, Cheryl Costa Organizations: Bed Locations: Framingham, Mass

☆ At 30%, Solar Panel Tax Credits Are at a High Point for Now
▼ + stars: | 2023-08-25 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Some states offer their own tax incentives, and utilities may offer rebates for installing solar. In some cases, rebates may affect the size of the federal credit, so consult a tax professional for help calculating your potential benefit, Ms. Walker said. Some solar contractors also do roofs or work closely with roofing companies, so you may be able to economize by having them done at the same time, she said. Some solar contractors offer the option to lease the system rather than buy it, but in that case you won’t own it — so you don’t qualify for the tax credit, Ms. Walker said. Like any home-improvement project, solar installations may attract disreputable contractors, said Melanie McGovern, a spokeswoman for the International Association of Better Business Bureaus.

Persons: Walker, . Jones, Albertus, Aggarwal, Melanie McGovern, McGovern, “ Organizations: Solar Energy Industries Association, North American Board of Certified Energy, International Association of Better Business

☆ Credit Card Balances Hit New Peak
▼ + stars: | 2023-08-18 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

The average interest rate charged on cards that carry balances was about 22 percent in May, the New York Fed reported, while second-quarter data from the credit bureau TransUnion found the average card debt per borrower was almost $6,000. He recommended tallying up how many cards you have and noting both their balances and the interest rate you are paying. There are two popular strategies for paying down credit card debt. After you pay off a credit card, it can help your credit score to leave the account open while minimally using it. The more unused credit you have, the better the effect on your credit score.

Persons: TransUnion, Ted Rossman, Alvarado Organizations: New York Fed, Bankrate

☆ A New FAFSA Form Is Coming, Along With Changes in College Aid
▼ + stars: | 2023-08-11 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

College students must file the form each year to get financial aid from the federal government. Many states and colleges also base their own aid on the federal form. Some changes, like shielding more of a family’s income from the aid calculation, tend to increase eligibility for financial help. About a third of college students have a sibling who is also enrolled, Dr. Levine said. One rationale for the change is that financing a college education now involves long-term saving and borrowing, and isn’t something that most people can pay for with their current income.

Persons: Pell, MorraLee Keller, Levine, ” Dr Organizations: Education Department, National College

☆ Why It’s Smart to Revisit New Year’s Savings Goals Now
▼ + stars: | 2023-07-21 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Remember when you resolved back in January to spend less and save more in 2023? Summer can be a good time to revisit those goals, financial advisers say. Think of it as “New Year’s in July.”A quick financial review now makes sense because there’s still time to make adjustments if you’re falling behind on your goal — whether it’s building an emergency fund, slashing credit card debt or resuming student loan payments, now that the pandemic pause is finally (really!) Many events that lead to spending, like back-to-school time (supplies and clothing), Halloween (costumes and candy), Thanksgiving (food) and the winter holidays (gifts), are coming up. “So it’s a really good time to prepare for spending later in the year,” said Yanely Espinal, author of the book “Mind Your Money.”Nate Hoskin, a certified financial planner in Denver who focuses on young adults, recommends a personal “audit.” If that sounds too much like something the Internal Revenue Service would do, think of it instead as a financial health “checkup.”

Persons: ”, Yanely Espinal, ” Nate Hoskin Organizations: Year’s, Internal Locations: Denver

☆ Water Bills Are Rising. Here’s What to Do About It.
▼ + stars: | 2023-07-14 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Many water districts serve growing populations, leading to higher costs for treatment and distribution. And some water districts are having to replace systems that date to the post-World War II era, said Veronica Blette, chief of the Environmental Protection Agency’s WaterSense program, which helps consumers and businesses find ways to use less water. That helps, but households can use at least 20 percent less water by installing water-efficient fixtures and appliances, the E.P.A. Bathrooms are a good place to start because they may account for more than half the water that families use indoors. The latest toilets use just over a gallon of water per flush, or even less, compared with several gallons for older models.

Persons: Veronica Blette, ” Ms, Blette, “

☆ Tips for Canceling Online Subscriptions
▼ + stars: | 2023-07-07 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Many people and groups have filed online comments about the proposed rules. A man in Eugene, Ore., wrote that to cancel TextNow, an app offering messaging and calling services, he ultimately had to persuade his credit union to cut off monthly withdrawals from his account. At issue is the use of “negative option” plans, which presume that consumers accept an offer unless they affirmatively decline it — like a free trial that continues as a paying subscription. advises consumers to put a calendar reminder in their phones when they sign up for a free trial so they will be alerted when it is time to cancel. to require companies to notify customers before each recurring charge, and to remind them that they can cancel if they choose.

Persons: “, MyHeritage, John Breyault, Howard, ”, Breyault Organizations: Companies, National Consumers League Locations: Eugene ,

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