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☆ How Fed rate hikes are impacting consumer loans
▼ + stars: | 2023-02-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow Fed rate hikes are impacting consumer loansGreg McBride, chief financial analyst at Bankrate.com, joins ‘The Exchange’ to discuss the impact of the Fed's rate hikes on mortgages, credit cards, personal loans and more.

☆ Amid persistent inflation, 54% of Americans are using savings to pay for everyday expenses
▼ + stars: | 2023-02-16 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Inflation is still taking a hefty toll on households, recent reports show. Prices continued their upward momentum in January, rising 0.5% for the month and 6.4% over the past 12 months, according to the latest consumer price index data released by the U.S. Bureau of Labor Statistics. To make ends meet, 27% of Americans said they've had to take money out of savings and more than half, or 54%, said they used that money to pay for everyday expenses, such as groceries and rent, the recent Country Financial Security Index found. More from Personal Finance:What is a 'rolling recession' and how does it impact you? "Inflation has shredded household budgets over the past two years, and not just when it comes to one-off discretionary expenses or special occasions, but for keeping up with day-to-day bills," said Greg McBride, chief financial analyst at Bankrate.com.

☆ President Biden calls on Congress to crack down on 'junk fees'
▼ + stars: | 2023-02-08 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

watch nowIn his State of the Union address, President Joe Biden said his administration is cracking down on "junk fees" — including those from banks as well as hotels, airlines and other service providers. What are junk fees? watch now"The Consumer Financial Protection Bureau took a big step by banning surprise overdraft fees," she said. The average overdraft fee costs $29.80, Bankrate's research found, while the average nonsufficient funds fee is $26.58. Some banking interest groups countered that offerings such as overdraft protection provide a much-needed safety net.

☆ Savers poised for 'biggest win' in 2023 as inflation falls. Where to put your cash now
▼ + stars: | 2023-02-06 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Xavier Lorenzo | Moment | Getty ImagesAs interest rates go up, 2023 is shaping up to be a good time for savers who stand to earn more money on their cash. As the unemployment rate hit a 53-year low in the latest jobs report, the interest rate increases are expected to keep coming. Online savings accounts tend to pay the highest rates, with rates like 4% or 4.5% becoming more common. Series I bonds have 'become a better deal'Series I bonds are accrual type savings bonds tied to inflation that are issued by the government. If you cash in the I bond in the first five years, you will lose three months' interest, McBride said.

☆ As the Fed increases tightening, credit card rates jump to record highs
▼ + stars: | 2023-02-01 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAs the Fed increases tightening, credit card rates jump to record highsGreg McBride, chief financial analyst at Bankrate.com, joins 'The Exchange' to discuss the influence Fed rate hikes have on consumer spending, increases in household debt, and credit card rates moving higher.

☆ Here's what the Federal Reserve's 25 basis point interest rate hike means for your money
▼ + stars: | 2023-02-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +7 min

The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. "Credit card interest rates are already as high as they've been in decades," said Matt Schulz, chief credit analyst at LendingTree. As the federal funds rate rises, the prime rate does, as well, and your credit card rate follows suit within one or two billing cycles. "A 0% balance transfer credit card remains one of the best weapons Americans have in the battle against credit card debt," Schulz advised. The average interest rate for a 30-year fixed-rate mortgage is now around 6.4% — up almost 3 full percentage points from 3.55% a year ago.

☆ The Federal Reserve is likely to hike interest rates again. What that means for you
▼ + stars: | 2023-01-30 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

What the Fed's rate hike means for youThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. As the federal funds rate rises, the prime rate does, too, and credit card rates follow suit. After rising at the steepest annual pace ever, the average credit card rate is now 19.9%, on average — an all-time high. Student loans Federal student loan rates are also fixed, so most borrowers won't be impacted immediately by a rate hike. Savings accounts On the upside, the interest rates on some savings accounts are higher after a run of rate hikes.

☆ People buying homes today are paying $200/month less for the same home than those with bad timing who purchased at peak rates
▼ + stars: | 2023-01-29 | by ( Alcynna Lloyd | Robert Davis | ) www.businessinsider.com time to read: +3 min

The current average interest rate for a 30-year mortgage is 6.13%, according to Freddie Mac data. Rapid home price growth and soaring mortgage rates led to a dramatic downturn in housing demand throughout the fall and winter months of 2022. Home shopper Jason Wilson, 32, is looking to take advantage of lower interest rates to finally close on that dream home. "We want to be in this home for the next five, seven, or maybe even 10 years, and obviously interest rates will change over that time. "We're ready for a bigger home and interest rates are starting to fall.

☆ Visa revenue growth slows more as tough economy sobers spending
▼ + stars: | 2023-01-27 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

REUTERS/Philippe Wojazer/Illustration//File PhotoJan 26 (Reuters) - Visa Inc's (V.N) revenue growth continued to wind back to pre-pandemic levels in the first quarter as the post-lockdown travel craze ebbed and consumer spending slowed in a tough economy. The growth was, however, far lower than a 40% surge in cross-border volumes in the first quarter of 2021 and a 20% jump in payments volumes. The firm's exit from Russia will impact reported payments volume growth rates in the second quarter, Prabhu said on a post-earnings call. Earlier in the day, rival Mastercard Inc (MA.N) forecast current-quarter revenue growth below expectations as pent-up demand for travel was seen slowing going forward. Visa reported a profit of $2.18 a share, comfortably above the $2.01 estimated by analysts, according to Refinitiv.

☆ Visa profit beats estimates on resilient consumer spending
▼ + stars: | 2023-01-26 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

[1/2] A Visa credit card is seen on a computer keyboard in this picture illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration//File PhotoJan 26 (Reuters) - Visa Inc's (V.N) first-quarter profit beat Wall Street targets on Thursday as its payments volume held steady with Americans still spending on international travel despite an economic slowdown. That was, however, far lower than last year's 40% surge in cross-border volumes and a 20% jump in payments volumes. Reuters GraphicsVisa's revenue rose at the slowest rate in seven quarters, gaining 12% to $7.9 billion. read moreThe company on Thursday reported a profit of $2.18 a share, comfortably above the $2.01 estimated by analysts, according to Refinitiv.

☆ Interest rates are high. Here’s a relatively safe way to squeeze more from your cash
▼ + stars: | 2023-01-25 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Be aware that money market accounts offered by a bank are subject to protection from the Federal Deposit Insurance Corp. This isn't the case with money market funds, which can't guarantee that you won't lose money. When shopping for a money market fund, look for offerings that hold high quality underlying investments, and be sure to keep an eye out for fees. Money market funds that Lawrence likes include the Federated Hermes Prime Cash Obligations Fund (PCOXX) and the Fidelity Tax-Exempt Money Market Fund Premium Class (FZEXX). Unless they're tax exempt, money market fund income is subject to federal, state and local taxes.

☆ Suze Orman: Americans are short on emergency savings amid 'dangerous scenario' for economy
▼ + stars: | 2023-01-25 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

"You have to have an emergency savings account, whether you're in recession or not in a recession," Orman said. Americans living paycheck to paycheckThere's never been a better time to have emergency cash set aside. A new survey from Bankrate.com finds that most adults — 57% — are unable to afford an emergency $1,000 expense. At the end of a year, people are often surprised by the sums they save, whether it be $600 or $1,000, Orman said. "Once you start seeing how easy it is to save, the more you like to save," Orman said.

☆ Savings rate plunge as inflation eats into bank accounts, says Bankrate.com's Greg McBride
▼ + stars: | 2023-01-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSavings rate plunge as inflation eats into bank accounts, says Bankrate.com's Greg McBrideGreg McBride, chief financial analyst at Bankrate.com, joins 'The Exchange' to discuss credit rate increases, a growing volume of credit card debt, and the relationship between credit card rates and Fed policy

☆ More than 1 in 4 checking account holders are paying fees. Here's how to avoid them
▼ + stars: | 2023-01-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

sturtiEven with broad availability of free checking services, more than a quarter of checking account holders — 27% — are paying fees every month. The personal finance site conducted its online survey Dec. 7-12 and included 3,657 adults, of whom 3,069 have a checking account. Gen Z, who range in age from 18 to 26, comes in at the top of the list, with 46% of that generation's checking account holders paying monthly fees. Millennials, who are ages 27 to 42, come in next, with 42% of account holders paying monthly checking fees, Bankrate.com found. Older cohorts — Gen Xers, who are between 43 and 58, and baby boomers, ages 59 to 77 — are less likely to pay checking account fees.

☆ Americans lean more on credit cards as expenses stay high: 46% of cardholders now carry debt from month to month
▼ + stars: | 2023-01-10 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

With day-to-day expenses staying high due to inflation, more Americans are relying on credit cards to make ends meet. "The real test, of course, will be to follow whether these borrowers will be able to continue to make the payments on their credit cards." Now studies show fewer Americans are paying off their credit cards off in full. Not only can carrying a balance lower your credit score, but sky-high annual percentage rates also make credit cards one of the most expensive ways to borrow money. The average credit card rate is now 19.6%, on average — at an all-time high — after rising at the steepest annual pace ever, in step with the Federal Reserve's interest rate hikes to combat inflation.

☆ Wells Fargo is retreating from the mortgage market it once led
▼ + stars: | 2023-01-10 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —Wells Fargo, long one of the biggest players in the mortgage business, is taking a big step back. Wells Fargo said it will also exit its correspondent business, which buys loans made by other lenders, and reduce the size of its mortgage servicing portfolio. The retreat will likely cause Wells Fargo to lay off at least some employees, though the bank did not announce any specifics. The move comes as Wells Fargo continues to be in trouble with regulators. In late 2017, Quicken Loans toppled Wells Fargo as America’s largest mortgage lender.

☆ Cutting credit card debt as annual percentage rates hit record highs
▼ + stars: | 2023-01-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Credit card interest rates reached record highs last year and there is still more to come in 2023, according to Greg McBride, chief financial analyst at Bankrate.com. Credit card rates are now more than 19%, on average — an all-time high — after rising at the steepest annual pace ever, in step with the Federal Reserve interest rate hikes to combat inflation. Along with the Fed's commitment to keep raising its benchmark until more progress is made, credit card annual percentage rates will keep climbing, as well. As the federal funds rate rises, the prime rate does, too, and credit card rates follow suit. "The important takeaway for current cardholders is that another 1 percentage point in rate hikes by the Fed means your rate will move up by 1 percentage point," McBride said.

☆ Here are some strategies that can help you dig out of holiday debt
▼ + stars: | 2023-01-04 | by ( Sharon Epperson | In Sharoneppersoncnbc | ) www.cnbc.com time to read: +5 min

A new LendingTree study found 35% of Americans amassed holiday debt in 2022. And 37% of those taking on holiday debt said it would take them at least five months to pay it off. If you want to pay off your holiday debt well before this summer, here are seven steps you need to take now. Using less than 30% of your available credit can help you maintain your score, credit experts say, while using less than 10% can actually help raise that number. "A 0% balance transfer card, if you have good enough credit to get one, is the best weapon against credit card debt," said Matt Schulz, chief credit analyst at LendingTree.

☆ Building emergency savings is a top financial resolution for 2023, survey finds. Here’s how to get started
▼ + stars: | 2022-12-30 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Jenkin, who co-wrote a book called "The 21-Day Budget Cleanse," recommends people take a detox-type approach to their household budgets. "Most people really haven't taken the time to see where they're overspending and size up what the difference is," Jenkin said. That's "troubling" now, as interest rates on those debts are poised to continue to climb, according to Matt Schulz, chief credit analyst at LendingTree. Look for higher rates on your cashAs interest rates climb, that's good news for the money you stand to earn on your cash. Online savings accounts and certificates of deposit, or CDs, are providing the highest interest rates in more than a decade.

☆ If your raise this year was less than 7.1%, it didn't keep up with inflation — and you effectively got a pay cut
▼ + stars: | 2022-12-29 | by ( Juliana Kaplan | Jason Lalljee | ) www.businessinsider.com time to read: +4 min

Wages have been going up this year, but so have prices — and prices are growing faster. Skyrocketing inflation has meant that a pay raise of 7.1% or below is essentially a pay cut. It's the time of year when annual raises come in, but if you didn't see a pay hike of at least 7.1%, you're effectively making less. But many workers haven't seen their real wages outpace inflation since 2021, even as they have more bargaining power than they've seen in decades. "If there are 100 chairs and 50 workers, workers are cool, man!"

☆ The Federal Reserve is about to hike interest rates one last time this year. Here's how it may affect you
▼ + stars: | 2022-12-12 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

watch nowThe Federal Reserve is expected on Wednesday to raise interest rates for the seventh time this year to combat stubborn inflation. Why a smaller rate hike may be 'pretty good news'What the Fed's rate hike means for youAnother increase in the prime rate will send financing costs even higher for many other forms of consumer debt. On the flip side, higher interest rates also mean savers will earn more money on their deposits. Here's a breakdown of how increases in the benchmark interest rate have impacted everything from mortgages and credit cards to car loans, student debt and savings:1. As the federal funds rate rises, the prime rate does, as well, and these rates follow suit.

☆ Making these 5 money moves now can set you up for financial success in the new year
▼ + stars: | 2022-12-12 | by ( Sharon Epperson | In Sharoneppersoncnbc | ) www.cnbc.com time to read: +4 min

Increase your 401(k) plan contributionsA 401(k) retirement savings plan is one of the most highly sought-after workplace benefits. You can contribute up to $20,500 to a 401(k) plan in 2022 — or up to $27,000 if you're 50 or older. Boosting contributions to a traditional 401(k) plan can lower your adjusted gross income while padding your retirement savings. By paying cash, you could in some cases, wind up paying 3% less than the purchase price. You can no longer automatically tax an above-the-line deduction for cash donations; you must itemize deductions on your 2022 tax return.

☆ Strong returns could be hard to find in 2023. How to prep your portfolio and generate income
▼ + stars: | 2022-12-11 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Wall Street is warning of a stormy start to 2023 , but investors should prepare to find pockets of opportunity and ensure their portfolio is running efficiently. Bond prices have tumbled alongside stocks, such that even the iShares Core Growth Allocation ETF – which is based on a 60/40 split between equities and fixed income – has dropped nearly 15%. Higher yields on fixed income The silver lining of the Federal Reserve's interest rate hiking campaign is the rising yield investors can find on even the most boring fixed income offerings. Meanwhile, Series I savings bonds that are issued from Nov. 1 to April 30, 2023 have a current interest rate of 6.89%. Short-term Treasurys are another attractive option for your fixed income sleeve.

☆ Tipping Point: New tip guidelines for holiday giving
▼ + stars: | 2022-12-07 | by ( Chris Taylor | ) www.reuters.com time to read: +4 min

“I talk on etiquette issues all year long, and tipping is the one that always gets thousands of comments. The findings are a mixed bag for service providers, with some good news and some bad news about what is coming their way. But when it comes to holiday tipping, people just do not know what to do. That is called tipflation or tip creep, Farley says, and you should feel under no moral obligation to do so. But it's better to focus on the ongoing service providers in your life, who should be recognized with a healthy year-end tip.

☆ People with perfect credit scores have 3 key traits in common, Experian reports
▼ + stars: | 2022-12-02 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +4 min

The few people who do manage to achieve perfect credit scores tend to share three key traits, according to Experian's latest analysis. People with perfect scores are typically older"You're not likely to see many 25-year-olds with a perfect credit score," Matt Schulz, chief credit analyst for LendingTree, tells CNBC Make It. People with 850 credit scores tend to carry about $2,588 in credit card debt, compared to the national average of $5,221. A near-perfect credit score is good enoughAlthough having a perfect 850 credit score may earn you bragging rights, it doesn't come with many additional benefits. "The reality is that you're not going to get anything with an 850 credit score than you wouldn't be able to get with an 830 credit score, or really even a 780 or 790 credit score," says Schulz.

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