“Look at this,” Kris said yesterday when she returned from grocery shopping. She held up two yogurt containers for me to see.
“So what?” I said. “Black cherry yogurt.”
“Look closer,” she said.
“That one’s smaller,” I said. “Did they change the container size?”
“Yes,” she said. “But they didn’t change the price.”
The Incredible Shrinking Yogurt
I’ve received several e-mails lately from readers noting the same thing. They go to buy a product they’ve been using for years, only to discover that the container has shrunk. The price hasn’t changed — only the packaging. Reader David Cox, for example, wrote with the following anecdote that mirrors our own:
We went to the grocery last night and one of the items I wanted to get was yogurt. The store always seems to have their brand of yogurt on sale @ 10/$5.00. I was about to scoop up a bunch, when I noticed that they had redesigned the packaging with pretty new colors, but the package seemed a bit smaller. On closer examination, it was.
The new size was 6 oz. of yogurt, while the old style had been 8 oz. The price per package hadn’t changed, but the package now contained 25% less product. I thought it was very tricky of them to leave the big sales sticker on the shelf (10/$5.00!!!) just like we were used to seeing, without any thing to warn you of the repackaging. I guess they would claim it was obvious, but it still seems a bit tricky to me.
Is it tricky? I don’t know. I understand that manufacturers need to make a profit, but when they reduce the container size instead of raising the price, it does seem a little sneaky. It’s as if they’re unwilling to raise prices directly, so they take a circuitous route.
Standard Operating Procedure
I recently had a conversation with a friend who knows a great deal about this subject.
“You see marketing stories like this over and over,” Freeman told me. “Fabric softeners cut the sheets from 40 to 36 — same size box and same price. Ketchup switches from a glass bottle to a smaller plastic bottle and the price stays the same. Some companies mess with cap and lid sizes as a way to increase consumption. Want a bottle of laundry detergent to run out faster? Then increase the cap size slightly. (Many people use a capful per load.)”
Freeman then pointed out other ways companies subtly manipulate spending. “Think of the famous lather, rinse, repeat instructions on shampoo. Like you really need to do that. Same things happen with chips, cereal, and on and on. Just consider: maybe a box of cereal hasn’t gone up in price much in the past decade, but I guarantee you that the average box size has certainly decreased.”
Another friend, Jeffrey, chimed in: “I always wondered why, if the cost of packaging is so expensive, do cereal companies reduce the amount inside the box but the leave the size of the box alone?”
“They also do this with cereal bars,” Jeffrey said. “A while back, General Mills came out with Fiber One bars. The box is the same size as all the other boxes but there’s only five bars in the box, not the standard six bars that are in every other box. Nature Valley does the same thing with their family size box of granola bars. You open the box and only half of the box has product. It’s the same thing as lying but it’s disguised as ‘marketing’ so it’s okay.“
Savvy Shoppers
Again, I’m not sure it’s lying, but it’s obvious that shoppers don’t like to be duped this way. But both David’s e-mail and Jeffrey’s comments reveal they don’t appreciate being tricked. They’d rather have the same package size but see the price increase. I would, too.
Food inflation is a hot topic in the United States right now. I think we’re all beginning to realize that the things we love cost more. But some of us would rather pay the increased price than have manufacturers try to hide the inflation with packaging.
For more on this subject, take a look at Nickel’s thoughts on product packaging. He observes that suggested portion sizes are increasing even as package sizes are decreasing. You may also be interested to read about unit pricing in the GRS archives.
The government shutdown continues to dominate headlines in the U.S. but the actual market reaction has been fairly muted so far today.
There will be a vote at noon on whether or not to reopen the government with funding for three more weeks. There is definitely the possibility of a mortgage rate adjustment after the results of that vote are in.
Read on for more details.
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Market Outlook 1.22.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Government shutdown still center stage
Unless you’ve been under a rock for the past 72 hours you’re no doubt aware that the U.S. government went into a shutdown after Republican and Democratic lawmakers failed to agree on funding by midnight last Friday.
Click here to get today’s latest mortgage rates (Jul. 28, 2023).
The hectic scene down in Washington, D.C. continues this morning as a vote at noon is now the key focus. If the vote passes, the government will reopen and have funding for three more weeks.
The outcome is still clouded with uncertainty as a few crucial issues remain unresolved between the two parties. At any rate, the markets aren’t really showing much concern at the moment with all the major U.S. indexes trading higher.
If we take a look at the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going), we can see that it’s just about two basis points lower from where it started the day.
Mortgage rates typically move in the same direction as the 10-year yield, so rates are flat to slightly lower right now.
Rate/Float Recommendation
Lock now while rates are low
Mortgage rates moved higher last week. There’s a lot up in the air right now with the government shutdown so it’s hard to say where mortgage rates will go this week; however, we do still expect that current mortgage rates will rise in the long-term.
Given this expectation, we believe the smart decision for anyone looking to buy a home or refinance is to lock in a rate sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Chicago Fed National Activity Index
The Chicago Fed National Activity Index came in at a 0.27 for December, which is just a touch higher than the 0.27 that analysts had expected. The 3 month moving average is now at 0.42. It’s a mixed report that isn’t doing anything for investors today.
Get the GreenLight and close in 21 days*
Notable events this week:
Monday:
Chicago Fed National Activity Index
Tuesday:
Richmond Fed Manufacturing Index
Fedspeak
Wednesday:
FHFA House Price Index
PMI Composite Flash
Existing Home Sales
EIA Petroleum Status Report
Thursday:
International Trade in Goods
Jobless Claims
New Home Sales
Kansas City Fed Manufacturing Index
Friday:
Durable Goods Orders
GDP
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Second mortgages can be a great way to use the equity in your home to free up cash for important needs. Just like any other loan, there are some essential components you should know about second mortgages before you begin the application process.
What Is a Second Mortgage?
Generally, a second mortgage allows you to borrow against the equity in your home, and your home is used as collateral for the loan. This loan is called a “second mortgage” because it comes in second lien position behind the existing loan on your property. Second mortgages can be easier to qualify for than other types of loans and are often used to secure additional funds.
“Second mortgages can give you access to the equity in your home without having to touch your first mortgage,” says Scott Bridges, Senior Managing Director of Consumer Direct Lending at Pennymac. “Depending on your financial needs, second mortgages can be provided in lump sums or similar to a credit line where you can spend and repay over time.”
What Can I Use a Second Mortgage for?
There are numerous ways to use your second mortgage. “We see many of our customers pursue a second mortgage to consolidate high interest rate credit card debt or do home improvements,” Bridges says. Some of the most popular ways to use a second mortgage include:
Paying for home improvements. A second mortgage provides an opportunity to reinvest in your home. Making significant home improvements is generally considered the soundest reason to acquire such a loan because the home’s value should increase and reflect your financial investment.
Funding an education. The equity in your home can provide a substantial loan to fund educational opportunities for yourself or your children.
Covering healthcare costs. Unexpected healthcare costs can cause significant financial strain. A second mortgage may offer a lower-interest loan option than other loans available.
Debt consolidation. A second mortgage may be a good option for paying off debt from multiple high-interest credit cards. You’ll streamline your payment by eliminating credit card payments, and as long as your second mortgage interest rate is lower than the credit cards—which it usually is—you’ll save money.
How Does a Second Mortgage Work?
A second mortgage requires an additional mortgage to be taken out on a property that is already mortgaged.
Types of Second Mortgages
A home equity loan and a home equity line of credit are the two types of loans that fall under the broad, informal category of “second mortgage.” Both of these use your home as collateral, but there are some nuances between them. Let’s take a look at each.
Home Equity Loan. A home equity loan is a traditional loan, meaning that a fixed amount is lent to you for a fixed term, with payments amortized or spread over the life of the loan. You receive all your money in a lump sum when the loan closes. Home equity loans usually come with fixed interest rates.
Home Equity Line of Credit. A Home Equity Line of Credit (HELOC) allows you to draw money as you need it, up to the maximum amount of your credit line, for a certain amount of time called the draw period. During the draw period, payments are typically interest only. Once the draw period ends, your payments are principal and interest, which are then amortized over the remainder of the loan term. Home equity lines of credit usually come with a variable interest rate.
How Do I Get the Money?
You can receive your funds in two different ways, depending on whether you have a home equity loan or a HELOC.
Lump Sum. A home equity loan is a standard second mortgage, a one-time loan that provides a lump sum of money you can use for whatever you wish. With this type of loan, you repay the loan over time, typically with fixed monthly payments. Incorporated into each payment is a portion of the interest, as well as a portion of your loan balance.
Credit Line. With a HELOC, you can get a lump sum of money at once and have a pool of funds you can draw from over time. You may be required to take out an initial draw (a lump sum paid out when the line is opened), but you also have the option to access additional funds if you want to at a later time. Your lender sets a maximum borrowing limit, and you can continue borrowing multiple times until you reach your credit limit. Just like with a credit card, as long as you haven’t maxed out your line, you can borrow over and over on a HELOC.
Is a Second Mortgage Different Than Refinancing?
Yes, a second mortgage is different from refinancing. A second mortgage is an additional loan on your home in which you borrow against your home’s equity. With a second mortgage, you’ll have two home loan payments—your original mortgage and the second mortgage.
Refinancing replaces your current primary mortgage with a completely new one. Homeowners often refinance their homes to take advantage of a lower interest rate, change a loan term or switch from an adjustable to a fixed-rate mortgage. Some people choose to do a cash-out refinance, which is refinancing a home loan for an amount higher than the existing loan balance. You can use the extra funds for renovations, debt consolidation, education or other expenses.
How Do I Get a Second Mortgage?
To get a second mortgage, you’ll need to apply for the loan and meet the lender requirements, which may be more stringent than your original loan. Lenders will want to be confident that you’ll be able to manage another monthly loan payment.
Approval criteria will vary by lender, but at a minimum, you’ll need enough available home equity, a high credit score and a low debt-to-income ratio (DTI).
Second Mortgage Rates: Getting the Most Competitive Rates
Second mortgage rates and terms differ by lenders. Compare your options to find the one that best fits your budget and goals.
Keep in mind that as with your original mortgage, certain factors like credit history and debt will come into play when determining your rates. You’ll also need some equity. Bridges says, “The way to get the best rate on a second mortgage is simply to have a strong credit score, a low debt-to-income ratio and equity in the home after the second mortgage is acquired.”
Is a Second Mortgage Right for You?
While there are many benefits to having a second mortgage, it is still incurring debt. You’ll have to weigh the pros and cons to decide if it’s your best decision. In many cases, it could be.
“From a financial planning standpoint, a second mortgage is a good idea when the homeowner has a significantly lower rate on their first mortgage than the current market,” Scott Bridges says. “Imagine you have a 3% first mortgage and need $100,000 to consolidate debt or do home improvements. Right now it’s typically smarter for homeowners to utilize the second mortgage to tap into their equity instead of refinancing their entire loan balance to today’s 6 to 7% rate range.”
Exploring Your Options for a Second Mortgage
The bottom line is that while second mortgages are common and convenient, it’s important to determine if they’re a good fit for you. If you’re ready to apply, get started by contacting a Pennymac Loan Expert to learn more about the second mortgage options available to you.
Residential brokers on Long Island’s East End are searching for signs of life in the formerly frenzied market.
Scant inventory and high mortgage rates continued to cripple sales in the Hamptons and the North Fork last quarter, according to a report by appraisal firm Miller Samuel for Douglas Elliman.
“This is the same thing that’s happening in the entire United States, where you have this distortion created by people being wedded to their rates,” report author Jonathan Miller said, adding that fears of recession are contributing. “Inventory continues to remain a chronic challenge in the market.”
Sales dropped overall in the Hamptons from the same period a year ago, but the luxury segment — defined in the report as the highest 10 percent of all sales — was especially depressed. Luxury listings in the Hamptons remain at historic lows, prompting a record share of bidding wars.
Because of a pandemic-era sales surge, “the high end of the Hamptons market was essentially sold off,” Miller said, referring to transactions over $50 million. ”A lot of that product has been cleared from the market.”
The decline in luxury inventory is also skewing the median and average sales price lower in the Hamptons. Though the median sale price in the Hamptons fell annually for the third quarter in a row, it remains nearly double the pre-pandemic figure.
“Inventory continues to distort results, but it’s keeping pricing relatively stable if you consider the shift in the mix,” Miller said.
In the Hamptons, the number of closed sales in the second quarter dropped to 259, down 41 percent from 441 in the same quarter of 2022.
The median sale price last quarter was $1.5 million, down 9 percent from $1.6 million a year earlier.
Listing inventory in the Hamptons increased by 6 percent year-over-year, but the 955 listings left on the market at the end of last quarter are less than half of the pre-pandemic number.
“Prior to the pandemic, we had inventory as high as 2,600 units, and now we’re below 1,000,” Miller said.
On the North Fork, the median sale price rose by 8 percent year-over-year to $980,000, the third highest on record. Last quarter, one of every four sales closed above the listing price.
“The North Fork is the same scenario [as the Hamptons], but it has more positive price growth,” Miller said. “Part of that is because the North Fork doesn’t have as extreme high-end numbers.”
Listing inventory on the North Fork remained anemic on the North Fork, rising by 1 percent to just 156 listings at the end of June.
Sales on the North Fork have declined annually for the past two years. Last quarter, the number of closed sales dropped to 101, a 36 percent decrease from the 157 recorded in the same period in 2022.
About two years after Better.com announced its plans to go public via special purpose acquisition company (SPAC) Aurora Acquisitions Corp., the fate of Better.com’s journey to IPO will be decided next month.
“Aurora shareholders will be asked to consider and vote upon a proposal (…) to approve and adopt the agreement and plan of merger dated as of May 10, 2021,” Aurora said in a filing with the Securities and Exchange Commission (SEC) on Monday.
The vote will take place on August 11 ahead of the extended deadline to complete the merger deal on September 30.
Amid the unfavorable market conditions – sharp interest rate increases and declining origination production– massive layoffs and bad press against Better.com, the deadline to complete the merger deal was extended three separate times.
Shareholders will also be asked to vote upon a proposal to approve domesticating the corporation incorporated under the laws of the State of Delaware from the Cayman Islands.
“In connection with the consummation of the business combination and domestication, Aurora will change its name to Better Home & Finance Holding Company,” according to the filing.
If Aurora is unable to complete the merger with Better.com by the extended deadline of September 30 and is not able to complete another business combination by the specified date, Aurora will cease all operations within 10 business days except for the purpose of winding up.
Better.com declined to comment for the story.
As with most of the mortgage lenders in the country, the digital mortgage lender continued to spill red ink.
Aurora’s filings from earlier this month showed that Better.com posted a net loss of $89.9 million in Q1 2023 and cut about 91% of its workforce over an approximately 18-month period.
In June, the digital mortgage lender decided to shift its real estate strategy, pivoting to a partner agent model where Better.com will partner with outside agents as referral partners.
As part of the shift from its operating model of in-house licensed professionals, Better.com laid off the agents in its real estate brokerage subsidiary Better Real Estate LLC.
The digital lender had about 950 team members as of June 8 — a 91% drop from its peak of about 10,400 employees in Q4 2021.
The lender funded 2,347 loans in the first quarter, a decline of 87% compared to 18,559 loans funded in Q1 2022. A total of 29,818 loans were funded in 2022, a decrease of 81% from 153,843 in 2021.
Better.com ranked as the 59th largest mortgage lender in the country in the first quarter, per Inside Mortgage Finance.
US mortgage rates dipped this week, backing off 7% as inflation slows ahead of the Federal Reserve’s rate decision meeting next week.
The 30-year fixed-rate mortgage averaged 6.78% in the week ending July 20, down from 6.96% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.54%.
The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.
“As inflation slows, mortgage rates decreased this week,” said Sam Khater, Freddie Mac’s chief economist. “Still, the ongoing shortage of previously owned homes for sale has been a detriment to homebuyers looking to take advantage of declining rates. On the other hand, homebuilders have an edge in today’s market, and incoming data shows that homebuilder sentiment continues to rise.”
Mortgage rates have been over 5% for all but one week during the past year and even went as high as 7.08%, last reached in November. Rates had been cooling off and sat under 6.5% for most of the spring. But in May, rates began to move higher as uncertainty around the debt ceiling standoff grew and interest rates remained elevated as economic data showed inflation was stickier than anticipated.
And while June’s inflation data was generally positive, investors attention is now focused on the upcoming two-day Fed meeting, which concludes on Wednesday.
“Though inflation has slowed, the level remains well above the 2% target and investors expect the Fed to hike interest rates in pursuit of this target,” said Hannah Jones, an economic data analyst at Realtor.com.
While the Fed does not set the interest rates that borrowers pay on mortgages directly, its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasuries, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.
“As markets prepare for next week’s FOMC meeting and the probable resulting interest rate hike, strong employment data and cooling inflation suggest that the economy’s progress towards stability is on the right track,” said Jones.
But as a result, Jones said, mortgage rates are likely to remain elevated for the time being.
Buyers getting little relief
Mortgage rates have hovered in the 6% to 7% range for the past 10 months and buyers are looking for rates to cool off, as economists have forecast, in the second part of this year.
“Though home prices have softened slightly nationally, the still-high cost of borrowing means hopeful home buyers have felt little relief,” said Jones.
Sales of existing homes has been dropping due to a shortage of available homes, with homeowners hunkering down with ultra-low interest rates they bought or refinanced into over the past few years.
“Many home owners feel ‘locked-in’ by their current mortgage rate and are therefore choosing to hold off on listing their home for sale,” said Jones. “As a result, after more than a year of new listings lagging behind the previous year’s pace, the number of homes for sale has tracked lower than last year’s levels for the past four weeks.”
Buyers are facing a tough summer housing market of still-high home prices, elevated mortgage rates and little inventory to choose from.
“The current market dynamics are likely to persist until affordability and inventory gains are made,” said Jones.
During the twenty years I carried consumer debt, I made several attempts to change my habits. Every time I decided to lick the debt monster, I would follow the advice in the financial books: I’d arrange my debts in order, listing the one with the highest interest rate first. I’d pay extra on this bill for a couple of months, but then give up in frustration because I didn’t seem to be making any progress — $100 extra on a $12,000 balance doesn’t make a dent.
Eventually, I read Dave Ramsey’s The Total Money Makeover. His debt snowball method changed my life. Ramsey writes:
Personal finance is 80 percent behavior and 20 percent head knowledge. The Debt Snowball is designed the way it is because we are more concerned about modifying behavior than correct mathematics…Being a certified nerd, I always used to start with making the math work. I have learned the math does need to work, but sometimes motivation is more important than math. This is one of those times.
Humans are complex psychological creatures. We’re not adding machines. If we were adding machines, we wouldn’t accumulate consumer debt in the first place! My debt wasn’t acquired logically — it was a product of emotional and psychological responses. What I needed to get rid of it wasn’t a mathematically ideal model, but a psychological “hack” — I needed the debt snowball.
With the debt snowball, you don’t start with your highest interest rate obligations, but those with the smallest balances. You attack the debts you can eliminate most quickly. This may be counter-intuitive — in fact, it really bothers some people — but it works. (Here’s more about the debt snowball method.)
I recently discovered a clever extension of Ramsey’s snowball metaphor. Jaimie at I’ve Paid for This Twice Already practices what she calls “snowflaking”, an idea that seems to have originated at the iVillage debt support group. (This group looks like a great resource for those struggling with debt, by the way.) Jaimie writes:
What are snowballs made of? Snowflakes! Every month without fail, I pay a fixed amount to debt that is above my minimum payment due (about $800). I also try to collect little bits of money wherever I can, and to apply those to my top priority debt (my credit card).
I take surveys online, I sell possessions on craigslist and eBay, and I have yard sales. Any money I get from these endeavors goes directly to my debt. I also keep a strict accounting of all the money that comes in, and everything left over at the end of the month not earmarked for future expenses also goes directly to debt. These are my snowflakes. I have averaged over $200 extra going to my credit card debt every month due to these snowflaking efforts.
Many small snowflakes make a snowball, and no amount is too small to snowflake.
In December, Jaimie shared her five golden rules for snowflaking:
Snowflake early and often. Start now and make it a habit. If you get accustomed to this, it can become a game. Snowflaking can almost make debt reduction fun.
No amount is too small to snowflake. “I have snowflaked as little as $1.04 and as much as $1313.74 and everything inbetween,” Jaimie writes. “Any amount can be a snowflake, and any amount can make a difference”
Anything can be a snowflake. Did a friend repay $5 she borrowed last week? Did you take cans and bottles in to redeem the deposits? Did Aunt Marge send you $20 for your birthday? Was your tax refund bigger than expected? All of these can be snowflakes.
Snowflake as immediately as possible. This is key. Apply your snowflakes to debt as soon as possible, before you have a chance to spend the money. I know from experience how easily those extra dollars become books or videogames or new clothes. Snowflake when you get the money.
Keep track of your snowflakes to use as motivation. “A lot of small amounts may not seem like a whole lot if you don’t keep track of them,” Jaimie advises. “Keep a running total once a month to see how those small amounts add up.”
Though I didn’t have a name for it at the time, snowflaking is the technique I used in the final stages of my own quest for debt elimination. I enjoyed taking any extra cash I had and throwing it at my home equity loan. It made me feel good. (It even felt better than buying comic books, believe it or not.) This was how I knew my relationship with money had improved and was almost healthy.
Just as the notion of the debt snowball seems absurd to some of those who have never fought with debt, snowflaking may appear a little obsessive. But I believe both are valuable tools. As someone who struggled with debt most of his life, I’m grateful to have heeded Dave Ramsey’s advice. I’m also glad to have discovered “snowflaking”!
(Note: The debt snowball and debt snowflake concepts can also be applied to other financial goals, such as building an emergency fund, saving for retirement, or paying down your mortgage. I’m currently using these techniques to save a cash cushion so that I can completely quit my day job to blog full time.)
Inside: Looking to put money on your Cash App card? This guide will show you how to do everything from adding funds to verifying your identity. Whether you’re using a debit card, bank account, or mobile payment service, this guide has you covered.
The Cash App Card, often called the Cash Card, is a top-rated, mobile electronic money transfer service.
This reloadable tool functions like a Visa debit card, allowing it to easily serve as a primary banking solution for users. Not limited to traditional banking hours and locations, the Cash App Card provides high flexibility for financial management.
The good news is this free and customizable debit card is linked to your Cash App balance, providing you the convenience and flexibility to handle your finances effectively and efficiently.
So, the question remains… how do you put money on the Cash App Card?
In this guide, we will teach you where can I load my Cash App Card.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is a Cash App Card?
A Cash App Card, often mentioned as the Cash Card, is a free, reloadable debit card designed to let you tap into your Cash App balance.
Picture it as your ticket to your digital wallet, allowing you to:
Shop anywhere Visa is accepted, both online and in physical stores.
Make use of the Cash Boost feature for instant discounts at participating retailers and eateries.
Personalize it with your unique design from the app.
Reload it at places like 7-Eleven, CVS, Walmart, and more.
Send or receive funds among friends and family.
Manage your spending and stay on budget.
The catch? Your spending power ties strictly to your Cash App balance, so be sure to top it up!
How to Get a Cash App Card
Cash App is one of the hottest new payment apps on the market.
And, like most things these days, there’s a Cash App card you can use to make purchases or withdraw money from your account.
This is great to use for the cashless envelope system.
So, how do you get started with a Cash App Card?
Step #1: Download the Cash App
To get started with Cash App, you first need to download the app.
The easiest way is to scan this QR code to get started.
After locating it, simply tap “Install” or “Get.” Once the app has finished downloading, hit “Open” to launch it.
Pro tip: Be sure you’re downloading the genuine Cash App, look for the icon that’s green with a white dollar sign (pictured above). That’s it, you’re one step closer to your Cash App Card! Now, let’s get you set up.
Step #2: Create an Account
It is ideal for digital banking, allowing you to make cash deposits, and pay in-store or online with the convenience of a Cash App Cash Card, simulating many of the features of a typical checking account.
To create a Cash App account, follow these steps:
Once installed, open the application and follow the on-screen instructions to set up your account.
You will have to enter your phone number or email address.
For security certification, the Cash App will send you a secret code to verify you. Enter it.
Select a $cashtag, which is a unique username to send and receive money (similar to Venmo)
Step #3: Link a bank account or card
Remember, in “My Cash” you’ll spot the “Add Money” option for funding.
This is the easiest way to load your Cash App Card, so you should set it up properly.
Open Cash App; it’s the icon with a white dollar sign on a green background.
Tap the top-right profile icon.
Navigate to “My Cash” – it’s a tab on the home screen.
Click “Link a Bank,” nestled within the options.
Follow the prompts to add your bank account or debit card info.
Once your card is linked, you’re all set.
Insider’s guide: Double-check your digits to prevent delays!
Step #4: Order a Cash App Card
To order a Cash App card after successfully establishing your account, follow these steps:
First, open the Cash App on your mobile device.
On the bottom of the screen, locate the card icon that is second from the left and tap on it.
Click on the green ‘Get a Free Cash Card‘ button.
You may choose your desired card style (color). Please keep in mind that certain color options may entail a small fee.
If you’d like, click on ‘Personalize Card’ to add a unique touch such as a drawing or stamp.
When you’re ready, simply click ‘Order Card.’
Through this process, Cash App provides a credit card number straight away for immediate online use. Meanwhile, your physical card should arrive in your mail within 5 to 10 business days.
How to Put Money on Cash App Card
Adding money to your Cash App card is an easy and straightforward process that can be done within a few minutes directly from the Cash App.
This process essentially involves transferring funds from your linked bank account or card to your Cash App card balance.
Below, you will learn other ways you can also deposit money, easing the process of managing your digital finances.
Step 1: Open the Cash App on your phone
To add money to your Cash App card, begin by launching the Cash App on your phone.
This app flaunts a simple green icon that should be pretty easy to spot amongst your other apps.
Bonus Tip: remember to link your bank account or debit card for smoother transactions.
Step 2: Tap on the “My Cash” tab
Now that the Cash App is opened on your device.
Tap on the ‘My Cash’ tab at the bottom-left corner of the screen.
Expert Tip: Use biometric features (facial recognition or fingerprint) for faster and more secure access.
Step 3: Select “Add Money”
After you’ve successfully navigated to the “My Cash” tab within the Cash App, the next step is selecting the “Add Money” option.
Type in the exact amount you’d like to transfer to your Cash App Card.
Be sure to double-check this figure – you don’t want to add more or less than you intended.
Learn about how to unlock borrow on Cash App.
A handy tip: If you enter an amount that surpasses your current bank balance, the App will kindly let you know.
Step 4: Confirm with your PIN or Touch ID
After entering the desired amount to load onto your Cash App card, you’re going to see a little “Add” button – go ahead and tap that.
The app now needs to confirm it’s really you, so you’ll be asked to put in your PIN or use Touch ID.
Remember, this is just to make sure your money stays secure, so it’s an important step.
Pro-tip: Make sure your PIN is both easy for you to remember and tough for others to guess.
Step 5: Wait for the money to be added
Alright, you’re almost done!
After you’ve confirmed your transaction, just sit tight while the money gets added to your Cash App Card. This usually occurs within a few moments—it’s pretty speedy. But just in case, give it a good few seconds before you check your balance.
Remember, patience is a virtue, even in the digital world! You’ve now successfully added funds to your cash card. Easy, right?
The simplicity and speed of the process is genuinely impressive, isn’t it?
Step 6: Tap “Sign Out” button at the bottom of the screen
You are going to want to do is tap that “Sign Out” button you’ll find chilling at the bottom of the screen.
Go ahead and tap it.
Do you know why this step is crucial? Because it’s like leaving your house and locking the front door. It keeps your account secure from any sneaky hands looking to fiddle with your money.
So always, always remember to sign out, alright? It’s a small step but it does a big job in keeping your account safe.
Where Can I Load My Cash App Card?
If you’re wondering how to put money on a Cash App card, you’ve come to the right place.
In this section, we’ll show you where and how to load your Cash App card so you can start using it right away.
1. Bank Account
The easiest place to load money is your bank account. Plus you can keep yourself within a spending limit for your budget.
Let’s get that Cash App Card loaded up with money from your bank.
First, make sure your bank account is linked with your Cash App. If not, just click on the ‘Banking’ tab and follow the prompts. Easy peasy!
Now, tap the ‘Money’ tab on your Cash App.
Hit ‘Add Cash’.
Choose the amount you want to transfer.
Tap ‘Add’ again, then confirm using your PIN or fingerprint.
Don’t go overboard, friend; remember, there’s a limit of $1000 per week!
2. Debit Card
Now, let’s load it up using your debit card.
Head to your profile on the Cash App.
Found the “Linked Banks” button? Great! Click it to add your debit card.
You’ll need the card number, expiry date, and security code.
Cash App might run a quick test to confirm the connection.
Now you’ve got to spend money on your Cash App Card.
3. Retail Stores
Did you know you can load your Cash App Card at various retail locations?
Forget running to a bank, just pop into one of these convenient spots. Here’s a quick list to guide you:
Walmart
Rite Aid
Family Dollar
Duane Reade
Walgreens
GoMart
Sheetz
Kum & Go
GoMart
KwikTrip
Speedway
H-E-B
Thorntons
TravelCenters of America
Dollar General
Pilot Travel Center
7-Eleven
Remember, availability may vary by location. So, ensure to check your nearest store whether they support Cash App deposits.
4. Visa Gift Cards
Similar to how to use a Visa Gift Card on Amazon, you can conveniently load your Cash App Card.
As such Visa Gift Cards are popular gifts with their widespread acceptance makes them a favorite choice.
To load your Cash App Card using a Visa card, follow these simple steps:
Open your Cash App: Tap on the “Banking” tab visible on the screen’s bottom left.
Choose “Add Cash”: Input the amount you want to load onto your Cash App Card.
Tap “Add”: Make sure you select the Visa gift card you want to transfer money from.
Authenticate your Identity: Depending on your setting, you may have to use Touch ID, Face ID, or a PIN.
Voila! That’s it, remember to keep an eye on your card balance to ensure the correct amount was loaded.
5. PayPal
While PayPal is a popular option to transfer money, you cannot transfer money directly to your Cash App Card.
You will need to transfer the money from PayPal to a linked bank account first and then move the money to Cash App.
Learn which payment type is best if you are trying to stick to a budget.
What are Paper Money Deposits?
Just like the slang for how much is a rack, paper money deposits are what Cash App calls the transfer of your money.
Remember, you can deposit up to $1,000 every 7 days and $4,000 every 30 days. Deposits must be a minimum of $5 per transaction and not exceeding $500.
There is no fee to use the card. As Cash App makes their money by the transaction may be subject to a small fee charged by certain retailers.
What are Boosts?
Heard of ‘Boosts’ in the Cash App world? Let’s break it down.
Boosts can help you get more bang for your buck, offering discounts on eateries or stores you frequent. It’s like enjoying 15% off your latte at your go-to coffee shop, neat, right?
Here’s how to utilize ‘Boosts’:
Open your Cash App and find the Boosts.
Scrutinize your options and activate one Boost.
Swiftly switch on and off your Boosts to fit your needs.
So, add a little boost to your Cash App Card and enjoy some savings!
Tips for Using Cash App Card Safely
To make the most of your Cash App card, it’s crucial to have a grasp on the safety and security measures.
The Cash App card offers users the flexibility of managing money without the restrictions of traditional banking. Plus it serves as a tool for receiving and sending money, and also helps in money management and budgeting.
1. Check Your Card Balance and Transactions
Knowing your balance and checking transactions is crucial when using your Cash App Card.
Being aware of your balance ensures you can make transactions without exceeding your available funds, helping avoid any embarrassing situations or penalties.
Monitoring transactions regularly allows you to spot any fraudulent activities promptly and acts as a deterrent for any additional, unwarranted fees that could be associated with specific transactions.
Additionally, when you add funds to your card at a physical store, you should always confirm that the funds have been accurately transferred to your Cash App account before leaving, to sidestep any discrepancies or issues.
To check your balance, log into your Cash App account and click on the dollar symbol on the home screen. This will promptly display your current balance.
Now, for transactions, tap the “Cash” tab to view your recent transactions.
2. Avoid Scams
Navigating Cash App Card could be a breeze, but it’s crucial to be aware of potential scams that might catch you off guard.
**Be Aware of Who You’re Trading With** Transactions on Cash App are instant and can’t usually be reversed. Be cautious in your dealings.
**Secure Your Account:** Maintain strict privacy over your Cash App PIN and use your phone’s security lock feature to avoid unauthorized access.
Remember, your alertness is your best bet to keep scams at bay! Keep yourself informed and stay safe.
3. Use the Security Features
The Cash App strives to prioritize security and protect its users’ money, making it a pocket-friendly financial tool.
The Card is issued by Sutton Bank and has FDIC insurance, ensuring your hard-earned money is safeguarded.
But, besides this innate security feature, there are multiple ways to assure maximum security while using your Cash App Card:
Securing Your Cash App Account: Before using the Cash App Card, it is pivotal to add strong security measures to your Cash App account. This can include setting up a unique and complex password, enabling two-factor authentication, or using touch ID/facial recognition if your device supports it.
Transaction and Deposit Limits: Cash App sets transaction and deposit limits to protect your account. Familiarize yourself with these limits and stick to them. Going beyond these restrictions might expose your account to risks.
Linking your Cash App Card with Trusted Accounts: While you can link your Cash App Card to multiple banks or external bank accounts, it’s crucial to ensure these accounts are trustworthy and secure. Avoid linking to accounts on public computers or networks to prevent unauthorized access or data theft.
Watching out for phishing scams and suspicious activities: Always be vigilant when receiving unsolicited communications asking for your Cash App Card Information. Remember, Cash App will never ask for your PIN or sign-in code outside of the app.
Real-time Alerts: You can also activate instant transaction alerts. This way, if your card is utilized, you will get immediate notification on your mobile device, helping you stay on top of your spending and identify any potential fraudulent activity.
Safe deposit and withdrawal: Making sure to use secure networks when depositing to or withdrawing from your Cash App Card can offer an additional layer of protection.
Navigating through these security features is not overly complex, but it reinforces your financial safety.
4. Know Your Limits
Knowing your Cash App Card limits plays a vital part in managing your finances effectively.
You want to be wary of overspending and blowing your budget.
So, if you transferred $500 for the week, stick to the $499 spending limit.
5. Use the App’s Help Function
Knowing how to use the Cash App’s help function is crucial, as it assists you in troubleshooting any issues quickly. It also shows you how to maximize the platform’s robust offerings.
To access the help function, simply tap on the “Profile” icon in the bottom-right corner of the Cash App screen, then scroll down and select the “Support” option.
If you need to get in touch with customer service, tap “Contact Support” and explain your situation in the message field.
6. Use Cash App Card for the Things It’s Meant For
The Cash App Card puts a world of financial opportunity in your hands. Convenient as a debit card, you can use it for online shopping, paying bills, or sending cash to mates. It’s your money manager without the hassles of bank operating hours.
Primarily, here’s what you should do:
Add funds to the card: You can reload your card at numerous locations, with options such as CVS, Walmart, or Dollar Tree.
Manage wisely: Budget and spend your earnings across your essentials and save some for a rainy day! This will help you to spend money wisely.
Use cash boosts: Add thrills to your regular shopping by using the exclusive ‘Cash Boosts’ for instant discounts.
The goal of the Cash App Card is to not go into debt but to live within your means.
Now, Add Cash to Cash App
In conclusion, obtaining and using a Cash App Card can greatly enhance your financial savviness by providing a convenient way to use your Cash App balance both in-store and online.
The process for getting this card is straightforward and cost-free, and gives you instant access to your card number for immediate online purchases, while the physical card arrives within 5-10 business days.
Whether it’s sharing money with friends and family, managing your personal budget, or teaching young adults about financial responsibility, this card offers a sophisticated and straightforward approach. Although it doesn’t replace traditional checking accounts, it’s an excellent alternative for unbanked consumers, those looking to rebuild credit, or teenagers with money to spend.
Just remember to keep track of the transaction and deposit limits set by Cash App to avoid any surprises.
Take hold of your finances today with your Cash App Card and experience the convenience it offers.
Start leveraging the benefits of your Cash App Card now!
Know someone else that needs this, too? Then, please share!!
The Federal Reserve opted to resume rate hikes at Wednesday’s meeting by a quarter of a percentage point, as expected. Last month, the central bank took a brief hiatus from increasing the federal funds rate after 10 consecutive rate hikes beginning in March 2022. The federal funds rate range is now 5.25% to 5.50% — a more than 22-year high.
Fed Chair Jerome Powell said during a news conference Wednesday that last meeting’s pause and this meeting’s hike do not signal the start of a pattern to increase rates at every other meeting. Between now and the Sept. 19-20 meeting, he said, the Fed will look closely at five upcoming reports, all from the Bureau of Labor Statistics: the employment cost index report due Friday, two jobs reports and two consumer price index (CPI) reports.
Fed continues its pursuit of 2% inflation
The CPI is used as a proxy for inflation. The June CPI report released July 12 showed inflation rose 0.2% in June, up 3% from the same month a year ago — it was the lowest level since March 2021. The report came in better than expected, but it’s only one report, Powell said.
It’s true that disinflation has begun without any real costs to the labor market, but Powell said he wouldn’t use the term “optimistic” to describe this situation. Instead, he said current conditions indicate “there’s a pathway” to a soft landing. However, the Fed is no longer anticipating a recession, Powell added.
Powell noted that the unemployment rate of 3.6% is the same as in March 2022, when the Fed first began increasing the interest rate. “It’s not that we’re aiming to raise unemployment,” Powell said. But he said history suggests that, “when central banks go in and slow the economy to bring down inflation, the result tends to be some softening in labor market conditions. And so that is still the likely outcome here.”
The worst outcome, Powell said, would be to not deal with inflation now. “Whatever the short-term cost of getting inflation under control, the longer-term social costs of failing to do so are greater,” he said. “The historical record is very, very clear on that.”
Powell added that if inflation is not brought down, it becomes volatile, which interferes with people’s lives and economic activity.
The Fed chair was ambivalent about future hikes, saying the central bank might raise funds at the September meeting if the data warrants, but it’s also possible it could hold steady.
Powell said the Fed is approaching a point where it must balance the risk of doing too much with the risk of doing too little. “As our stance has become more restrictive and inflation moderates, we do, increasingly, face that risk,” he said.
What happens next?
Much like the Fed, economists are also now curbing recession expectations for the coming year. In a July 15 survey by The Wall Street Journal, the 69 economists polled estimated that there was a 54% chance of an economic downturn in the next year. The last two estimates from previous WSJ surveys were 61%.
Meanwhile, in a July 19 survey by Goldman Sachs, its economists estimated there was a 20% probability of a recession over the next 12 months, down from 25%. Goldman Sachs economists also collectively projected that the rate hikes during the Fed’s July meeting would be the last for this cycle.
Photo by Alex Wong/Getty Images News via Getty Images
Medicare is the United States’ federally administered health care program.
The program was established in 1965 for the purpose of paying certain health care expenses for people age 65 and over, as well as for other select individuals, such as those who have end stage renal disease.
When originally established, there were only two parts. These were Part A for hospitalization coverage, and Part B for doctors’ services. Over time, the Medicare program has been expanded to offer additional coverage and choices for its enrollees.
We understand that any type of insurance coverage, from the best car insurance companies, best life insurance coverage, or best burial insurance for seniors, can be quite confusing. Remember, we are here to help!
How Coverage Works
The Medicare program today is divided into four parts, and each of these covers a different area. These parts include:
Part A – Hospital Coverage. Part A coverage will help an enrollee pay for inpatient care in a hospital or in a skilled nursing home facility. It also covers some types of home health care, as well as some hospice care. In most cases, there is no cost for participating in Part A.
Part B – Medical Coverage / Doctors’ Care. Part B helps to pay for doctors’ services, as well as for a variety of other medical services and supplies not covered in Part A. Those who are enrolled in Part B will be required to pay a monthly premium. In 2015, most people pay a premium of $104.90 per month. This can vary, however, based upon the individual’s income and on whether they file their tax return jointly with a spouse or as a single individual. This article goes in depth about the income limits and fees that high earners -“Medicare IRMAA brackets“- may have to pay regarding Part B and Part D coverage.
Part C – Medicare Advantage / Managed Care. Part C is also referred to as Medicare Advantage. It provides a managed care approach to delivering Medicare-covered services, such as Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). Those who are eligible for Parts A and B may alternatively choose to receive all of their services through a Medicare Advantage provider organization under Part C. The premium one pays for Part C will depend upon the plan that is chosen, as well as on the enrollee’s geographic location. You can learn more about this coverage HERE.
Part D – Prescription Drug Coverage. Part D helps to pay for prescription drugs doctors prescribe for the treatment of a patient. The premium charged for a Part D policy will depend upon the prescriptions you are taking, and thus, the actual plan that is chosen.
Recipients of Medicare, also referred to as beneficiaries, are able to choose coverage via the Original plan – which is actually Parts A and B – or they may choose Part C – which is Medicare Advantage.
Who Qualifies?
In order to be eligible, an individual must have lived in the United States for at least 5 continuous years, and also be a permanent resident of the U.S.
In addition, qualified recipients of benefits must be at least 65 years of age or over, or have a specific type of qualifying disability.
For a person to be considered permanently disabled, they must be entitled to receive benefits from Social Security, and they must have been receiving those benefits for a minimum of two years.
An individual who is diagnosed with end stage renal disease and who also requires kidney dialysis or a kidney transplant may also be considered eligible for benefits from the program.
With the high costs of health care it makes sense for those eligible for Medicare to take advantage of this government administered health care program.
Adults Over 65
Most adults in the United States are eligible for Medicare when they turn 65. Individuals must be U.S. citizens or permanent residents and enroll in the Medicare program to qualify.
Individuals who are already receiving Social Security benefits will be automatically enrolled in the Medicare program. Approximately three months before their 65th birthday, an enrollment package will be sent and must be completed to activate coverage.
Medicare Part A, which covers hospitalizations, requires no payment. However, adding Part B – which is for doctors visits, outpatient procedures, or additional coverages, such as prescription drug coverage, does cost money. The premium is determined based on income level. So, individuals must decide what plan is best for them when enrolling and what they can afford to have.
Individuals with Disabilities
Medicare coverage is also available to individuals with disabilities regardless of their age. Once an individual has been collecting social security disability payments for twenty-four months, they become eligible for Medicare during the 25th month.
An enrollment package will be sent a few months before a person becomes eligible for Medicare coverage. If a person with Social Security disability does not receive the enrollment package, they should contact their local social security office to request a packet.
Like an individual who is over age 65, disabled persons who have been getting Social Security disability payments are automatically eligible for Medicare. There is no reason to decline coverage, as Medicare Part A costs nothing and covers hospital care and nursing facility care.
However, if a disabled individual would like, they can decline Medicare Part B coverage, which would require premium payments. There is a card that comes with the enrollment package that the individual can mail back declining Part B coverage.
Who Does NOT Qualify for Medicare
People who are not already receiving Social Security benefits will need to contact their local Social Security office to apply for Medicare coverage. This should be done three months before the individual’s 65th birthday.
The enrollment period begins in the three months before the month of the 65th birthday and ends three months after. If one enrolls during this time frame, there is no cost for enrollment and coverage should begin at the start of the 65th birthday month or shortly thereafter (if one applies after their birth date).
If, however, one does not apply during that enrollment period, then fees apply. So, it is important to apply on time, and as close to the three month prior date as possible. This will ensure everything is done correctly and coverage starts at the beginning of the individual’s birth month.
How to Enroll
To begin receiving benefits, an eligible individual must enroll through the office of Social Security. There is only one exception to this rule, in that those who are already receiving benefits through Social Security or the Railroad Retirement Board are automatically enrolled when they turn age 65.
All other potential recipients must submit an application for coverage during the open enrollment period. This period of time begins three months prior to the applicant’s 65th birthday and it ends seven months after.
Those who do not enroll in Part A and/or Part B when they are originally eligible are allowed to alternatively enroll between January 1 and March 31 each year. For those who do, their coverage will begin on the following July 1.
Medicare is Not Medicaid
Because their names sound so similar, people can oftentimes confuse Medicare with Medicaid. These two programs, however, are not the same. Medicaid is a joint state and federal program that provides medical assistance to those who meet very specific low income requirements.
In addition to medical necessity, a person must be considered at his or her state’s poverty level in terms of income and assets for Medicaid qualification purposes.
Through the Social Security Act, those who have income and resources not considered to be sufficient enough to meet the cost of their needed medical care, as well as certain long-term care needs, can qualify for Medicaid’s benefits. Therefore, Medicaid is considered a “means” tested program.
When determining which assets “count” toward qualifying for Medicaid, funds and property are divided into three different classes.
These include the following:
Countable Assets – Countable assets include any personal assets that the individual either owns or controls. These funds are required by Medicaid to be spent on the applicant’s care before he or she will be able to qualify for Medicaid’s benefits. Some examples of countable assets may include cash, stocks and bonds, and deferred annuities (provided that the annuities have already been annuitized).
Non-Countable Assets – Even though non-countable assets are still acknowledged by Medicaid, the particular types of assets are not necessarily utilized when making a determination regarding an applicant’s eligibility for Medicaid benefits. Non-countable assets can include household belongings, such as furniture, appliances, term life insurance policies, a burial plot owned by the Medicaid applicant, and the applicant’s primary residence – as long as the value of the home does not exceed a certain amount.
Inaccessible Assets – Assets that are inaccessible are those considered to be resources that would have had to be spent on a person’s care; however, the assets have instead been transferred to another individual or into a trust. This transfer has therefore made the asset inaccessible. With inaccessible assets, Medicaid has the right to review the applicant’s financial records at the time that the application for benefits is made. In most cases, if assets were transferred within a certain amount of time prior to a person’s application, Medicaid may deem the individual as being disqualified from receiving benefits – at least for a certain period of time.
What is Supplemental Insurance and What Does It Cover?
Medicare supplement insurance plans are a type of insurance coverage supplemental to what Medicare covers. This type of coverage can pay for some – or in some cases, all of the copayments and/or deductibles so that the enrollee does not need to pay such expenses out-of-pocket.
Medigap insurance is specifically designed to supplement Medicare’s benefits, and it is regulated by both federal and state law. A Medigap policy must be clearly identified as being Medicare Supplement insurance, and it must provide benefits that help to fill in the gaps in Medicare’s coverage.
Although the benefits are identical for all supplement plans of the same letter (i.e., all Plan A policies offer the same coverage options), the premiums may vary from one insurance carrier to another, as well as from one geographic area to another. There are even three states that do not use the letter system, but have different ways of designating their plans.
What is Medicare Advantage and How Does It Work?
A Medicare Advantage (MA) plan, similar to an HMO or PPO, is type of Medicare plan available to those who are eligible for “Original Medicare”, or Parts A and B. This option is also referred to as Part C. These plans are actually offered by private insurance companies approved by Medicare.
When an individual joins a MA Plan, Medicare pays a fixed amount of their premium every month to the companies that offer these plans. These companies are required to follow strict rules on coverage.
Each of the Advantage Plans are allowed to charge different out-of-pocket costs, and they may also have different rules as to how enrollees can receive their services. For example, some plans may require participants get a referral before going to a specialist. And, these rules may change every year.
MA Plans also have an annual cap on how much participants will pay for their Part A and Part B services throughout the year. This annual, maximum out-of-pocket amount can differ from plan to plan. You can get a full understanding of how MA plans can be a benefit to you HERE.
How to Find the Best Coverage
When seeking Supplemental or Advantage coverage, it is best to work with a company that has access to more than just one insurer.
That way, you can obtain information on numerous different benefits and quotes to see what your options are and what benefits are available to you.
When you’re ready to begin the process, you can use the form on this page and a top independent agent will work with you to get the best policy at the best rates.