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☆ My younger sister asked me for money advice. Here are 5 answers I gave to improve her financial life
▼ + stars: | 2023-04-02 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

This cash should be in a high-yield savings account, offer higher-than-average returns, experts say. You can find an online savings account offering an interest rate of 3% or more, for example, while the typical savings account rate is around 0.4%. Make sure the savings account you choose is insured by the Federal Deposit Insurance Corp., which means up to $250,000 of your deposit is protected from loss. Where should I invest money? To get a better understanding of your spending, experts recommend looking back at your purchases over the past couple of months.

☆ It's becoming increasingly clear that fintech has a fraud problem
▼ + stars: | 2023-03-29 | by ( Bianca Chan | Paige Hagy | ) www.businessinsider.com time to read: +8 min

"With fast growth comes fast fraud," Frank McKenna, a longtime fraud expert who works with banks, lenders, and fintechs, told Insider. Cash App only requires a zip code, debit-card number, and either an email or phone number to create an account. Cash App's alleged fraud problem could also be the result of its large, active customer base, which numbers some 44 million, according to the company's 2022 annual report. The fact that Cash App offers peer-to-peer payments exacerbates the fraud issue, according to McKenna, the chief fraud strategist at Point Predictive, an anti-fraud software company. Digital-only bank Chime has had its own issues with fraud, Jason Mikula, a fintech analyst and consultant, told Insider.

☆ This credit card debt payoff strategy may sound 'too good to be true,' but it could save you thousands
▼ + stars: | 2023-03-21 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +3 min

If you don't know what a credit card balance transfer is, you're not alone. Say you have $5,805 in credit card debt, the average amount Americans hold, according to TransUnion. If you want to qualify for one, you need a good to excellent credit score. Pitfalls of credit card balance transfers to avoidThere are a few downsides to balance transfers. Commit to paying off credit card debt

☆ More than 5 million households still behind on rent — what to do if yours is among them
▼ + stars: | 2023-03-16 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Viorel Kurnosov | Istock | Getty ImagesConsider your options for rent aidMost rental assistance programs that opened during the pandemic are now closed, but some are still accepting applications. On the National Low Income Housing Coalition's website, you can find a state-by-state guide of relief options and their status. On March 14, The Texas Rent Relief Program began accepting applications for aid, but it's already scheduled to stop doing so on Thursday. Assess your financial resourcesIt's not a strategy experts recommend, but some tenants are using their credit cards to cover their rent. "The biggest potential issue is carrying a balance and paying interest on your rent," Rossman said.

Having multiple credit cards and playing the rewards game can save you hundreds of dollars each year — if you're smart about how you use the cards. "The one big downfall of credit cards is the high interest rates," he added. "But if you're paying in full and avoiding those, then yeah, credit cards are great." Chasing rewards can land you some substantial sign-up bonuses like the Capital One Venture Rewards credit card's 75,000 miles or Chase Ink Business Unlimited's $900 cash back. But getting the most out of your credit cards depends on your spending habits — and finding the perks that would save you the most money.

☆ Consumers keep spending. That might not be good news for them or the Fed
▼ + stars: | 2023-03-06 | by ( Alicia Wallace | ) edition.cnn.com time to read: +9 min

And by November and December, those predictions appeared to be materializing, when data showed consumers had pulled back during the holiday shopping season. During a month chock full of suprisingly strong economic data, the Commerce Department’s retail sales and consumer spending reports far surpassed expectations. “It’s not sustainable to keep spending above their means.”Eyes on the FedHearty consumer spending at a time like this is a double-edged sword, said Ted Rossman, senior industry analyst for Bankrate and CreditCards.com. “The resilience of consumer spending is probably the biggest thing that’s pushed this recession timetable out,” Rossman said. The Home Depot (HD) warned of flat sales for 2023 as consumers continue shift spending from goods to services.

☆ The mortgage rate you get depends partly on your credit score. Here's what to expect
▼ + stars: | 2023-02-25 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

Yet the interest rate that any particular buyer is able to qualify for depends at least partly on their credit score — meaning you have some control over whether you're able to get the best available rate, experts say. "The score impacts practically everything: loan approval, interest rate, monthly mortgage insurance premiums … and ultimately their payment," said Al Bingham, a credit expert and mortgage loan officer with Momentum Loans. The higher your score, the lower the interest rate you'll be charged. For illustration only: On a $300,000, fixed-rate 30-year mortgage, the average rate is 6.41% (as of Thursday) if your credit score is in the 760-to-850 range, according to FICO. "Improving your credit score really comes down to the fundamentals," said Ted Rossman, senior industry analyst for Bankrate.

☆ Billions of dollars are locked up in a present that's easily given and forgotten -- gift cards
▼ + stars: | 2023-02-23 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +3 min

Such is the sad fate of gift cards – millions of which go unused each year and have a collective value estimated to be in the billions of dollars. Almost two-thirds of American consumers have at least one unspent gift card tucked away in a drawer, pocket, wallet or purse. A separate study on gift card usage found the average amount on unused gift cards last year was $175 per person, up from $116 in 2021. “I thought with high inflation, people would go to town with their gift cards. Some Visa, Mastercard and American Express gift cards add penalties if they’re not used in a specific period of time, said Stumpf.

☆ This is the best strategy to pay down credit card debt — but 37% of borrowers don’t know about it
▼ + stars: | 2023-02-13 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Thankfully, 0% balance transfer credit card offers — which are "one of the best weapons Americans have in the battle against credit card debt" — are even more plentiful than they were a year ago, said Matt Schulz, chief credit analyst at LendingTree. Yet 37% of those with credit card debt don't know that balance transfer offers exist, according to a recent Bankrate report. Credit cards are one of the priciest ways to borrowAt the end of 2022, total credit card debt hit a record $930.6 billion, a 18.5% spike from a year earlier, according to the latest report by TransUnion. From month to month, credit cards are one of the most expensive ways to borrow money. Card credit card annual percentage rates now stand near near 20%, on average, also an all-time high.

☆ Love & money: Four ways to avoid financial infidelity
▼ + stars: | 2023-02-09 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

NEW YORK, Feb 9 (Reuters) - Sorry to break it to you, but your romantic partner may be sharing a secret relationship. One interesting note is that younger generations are hoarding the biggest financial secrets. ESTABLISH A ‘MONEY DATE’Since talking about money is such a taboo, it is challenging to know how or when to bring it up. DO IT NOWIf you imagine that keeping a few little money secrets will not harm anybody, you are wrong. According to a 2021 study by the National Endowment for Financial Education, 85% said financial infidelity affected their relationship in some way.

U.S. credit card borrowing rates have never been higher and bank lending standards are at recession levels. Many of his colleagues have doubled down on their view that interest rates may need to stay higher for longer. The average U.S. credit card rate is now higher than it has been in at least half a century. This is easily the highest since the comparable data series was started in 2007.chart"It's triple trouble: credit card rates are at record highs, balances are up 15% over the past year, and more people are carrying credit card debt," said Ted Rossman, senior industry analyst at CreditCards.com. "Credit card debt is one of those things that's easy to get into and hard to get out of," he said.

☆ Americans are becoming ‘reluctant’ to make larger purchases, new Fed report shows
▼ + stars: | 2023-02-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

US consumers’ outstanding credit grew by $11.56 billion to end the year, according to Federal Reserve data released Tuesday. However, as the year drew to a close — and the Federal Reserve jacked up interest rates to combat inflation — that bullish spending activity was curtailed. “Consumer spending certainly isn’t falling off a cliff, but we are seeing ample evidence that Americans are becoming more reluctant to make certain purchases, especially larger expenses and acquiring physical goods,” he said. Still, those balances growing in a month when spending was down likely shows the toll taken by higher interest rates, Rossman said. “Even if spending may be tailing off a bit, high inflation and higher interest rates are making balances harder to pay off,” he said.

☆ 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.

☆ How to cure a holiday debt hangover
▼ + stars: | 2023-01-24 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

Some call it the “holiday debt hangover,” and this year seems much worse than most. Some other worrisome findings: A quarter of people say they already regret their holiday purchases. “When people go into holiday credit-card debt, it’s not like the expenses stop there,” said Tori Dunlap, author of the new book “Financial Feminist” and founder of the site HerFirst100K.com. Think about shifting that debt over to a card where you will pay 0% for an introductory period. To figure out why you are going into holiday debt, you may have to do that hard emotional work, Dunlap said.

☆ Are digital wallets safe? Here’s what to know as the battle between big banks and Apple Pay heats up
▼ + stars: | 2023-01-24 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

"And it will be managed by the banks, which will in theory have better fraud protection than retailers." Now, 64% of Americans use peer-to-peer payment apps, although for young adults that jumps to 81%, according to a March 2022 survey by Consumer Reports. Users are vulnerable to fraud or scams or can lose money if they accidentally send a payment to the wrong person, a Consumer Reports analysis found. And peer-to-peer payments still have varying degrees of consumer protections, which could cause an issue when it comes to getting a refund. The Consumer Reports analysis included a call on policymakers to strengthen consumer protections.

☆ Generation X carries the most credit card debt, study shows. Here's how to get those balances down
▼ + stars: | 2023-01-23 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +3 min

Maskot | Digitalvision | Getty ImagesWhen it comes to credit card debt, Generation X may be struggling the most. "I think Gen Xers can be especially squeezed by credit card debt because they're living expensive years right now," said Ted Rossman, senior industry analyst for CreditCards.com. The cost of carrying credit card debt has become higherCredit card balances across all age groups hit $930 billion in the third quarter of 2022, according to the Federal Reserve Bank of New York's latest quarterly report on household debt. The average credit card now charges a record-high 20.16%, Rossman said. Those calculations, made using Credit Karma's credit card calculator, also assume no additional credit card debt was incurred while paying off that amount.

☆ 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.

☆ Premarket stocks: Bruised tech investors are hedging their bets
▼ + stars: | 2023-01-10 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

New York CNN —There are two certainties in today’s market: The tech sector has been beaten down and interest rates are higher. What’s happening: Investors are purchasing put options, a bearish bet that a stock will fall during a set period of time, on certain tech stocks at historic rates. The losses also created a booming market for investors who hold put option contracts that allow investors to sell shares of these stocks at a price higher than their current levels. Rising interest rates also dried up the easy money tech companies relied on to fuel big bets on future innovations, and cut into their sky-high valuations. Beyond that, the growing number of layoffs may also give certain tech companies some cover to take more severe steps to trim costs now than they may have otherwise done.

☆ 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.

☆ US consumers increased their borrowing by $28 billion in November
▼ + stars: | 2023-01-09 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —US consumers’ credit-hungry approach to spending continued in November, with borrowing rising by nearly $28 billion, according to Federal Reserve data released Monday. Revolving credit, which includes mostly credit cards, grew by 16.9%. It’s the largest jump in revolving credit seen in three months and the fifth-largest monthly increase in Fed record-keeping that goes back nearly 55 years. “It’s really revolving credit, mostly credit card debt, that’s carrying the day right now,” Rossman said. That has filtered down to historically high, if not record, interest rates for car loans, credit cards and personal loans.

☆ Here are some key things to consider before tapping your retirement savings to pay off credit card debt
▼ + stars: | 2022-12-30 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

As a result, they may be wondering if it's a good idea to tap their retirement savings to pay off the debt. Stopping your 401(k) contributions for a while — or at least cutting back — and redirecting those funds to debt payoff might make sense. For most others, though, there are more appealing options than a withdrawal, Rossman said. "Using a 401(k) loan to pay off high-interest debt, like credit cards, could reduce the amount you pay in interest to lenders," said Jessica Macdonald, head of editorial content at Fidelity Institutional. Other benefits to a 401(k) loan, Macdonald said, are that they don't require a credit check and they don't show up as debt on your credit report.

☆ Consumers kept the economy hot in 2022. Now they’re losing steam
▼ + stars: | 2022-12-28 | by ( Alicia Wallace | ) edition.cnn.com time to read: +8 min

Consumers armed with plenty of pandemic-induced pent-up demand and bountiful financial buffers kept the economy churning throughout much of 2022. “But I think there are reasonable worries that may not last.”Consumer spending remained resilient throughout much of 2022. But the household savings rate now sits at 2.4%, the lowest level since 2005 and the second-lowest rate going back more than 60 years. As of September 30, credit card delinquencies remained near historic lows with a 2.07% rate, according to Federal Reserve data. Persistently high inflation has consumers leaning more on credit cards and other forms of financing.

☆ Don't let these 3 credit myths cost you money next year as interest rates rise
▼ + stars: | 2022-12-24 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Generally speaking, the higher your credit score, the better off you are when it comes to getting a loan. As interest rates rise at the steepest annual pace ever, there is even more at stake in the year ahead. Here are some of the most common myths about credit cards and credit scores and how to avoid them going forward. Most utility companies do not report payment histories to credit bureaus and, even if they did, not all credit scoring companies consider that type of bill payment information. Myth #3: Carrying a small balance helps your scoreLumina Images | Getty Images

☆ 'Young adults are particularly vulnerable to delinquencies' — 1 in 5 have debt in collections, new report finds
▼ + stars: | 2022-12-21 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Americans across the board are struggling with credit card debt. "Young adults are particularly vulnerable," the authors of the report wrote. Overall, credit card balances are surging, up 15% in the most recent quarter, the largest annual jump in more than 20 years. At the same time, credit card rates are now over 19%, on average — an all-time high — and still rising. "Because young adults have this unique vulnerability, it's easier for a financial shock to happen and throw you off your path," Martinchek added.

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