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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

A billing cycle is the amount of time between the closing dates of consecutive billing statements. Typically, billing cycles are one month long, although they can range from 20 to 45 days.

If you have a credit card, understanding your billing cycle and how it works is necessary to maintain good credit. Not knowing your billing cycle can lead to missed payments, late fees and hefty interest charges.  In fact, Americans paid $164 billion in credit card fees and interest in a single year. 

Read on to learn more about billing cycles, including the typical length and how it affects your credit score.  

What is a billing cycle? 

A billing cycle is the time frame between the end of one statement billing date and the start of the next one. Most billing cycles operate on a monthly basis, although this can vary by lender. During one billing cycle, all transactions, interest charges and fees you incur are reflected in your monthly statement. 

How does a credit card billing cycle work

A credit card billing cycle works by tracking all purchases and payments, fees and interest charges over a certain amount of time. At the end of each billing cycle, you will receive a monthly statement from your credit card company that totals the amount you owe. 

Typically, your credit card payment is due around three weeks after the end of the billing cycle. This time between the end of the billing cycle and the due date is referred to as the grace period. By the due date, you need to pay your credit card bill, making at least the minimum amount to avoid additional interest charges and late fees. 

Billing cycle example 

For example, let’s say that your credit card billing cycle starts on May 1st and ends on May 31st. All of your transactions within those dates are included in your May statement, which is generated on May 31st. The payment due date for this billing cycle is June 25th, so you must pay at least the minimum amount due to avoid late fees. 

How long is a billing cycle?

Typically, a billing cycle is one month long, although it can range from 20 to 45 days. To determine how long your credit card’s billing cycle is, refer to your credit card agreement or check your credit card statement. It’s usually located on the first page near where you’ll find your balance. 

Keep in mind that billing cycles can differ in length by up to four days to accommodate holidays and months that have more or less number of days than others. However, your due date will be the same each billing cycle, such as the 15th of each month. 

Can I change my credit card billing cycle?

You may be able to change your account’s billing cycle, although this depends on your credit card issuer’s policies. Often, credit card issuers will allow credit holders to choose from a variety of dates. 

To request a different billing cycle end date, contact your credit card’s customer service representative. Keep in mind that most credit card issuers have parameters surrounding how often you can change your billing cycle, and changes may take a couple of billing cycles to take effect. 

How your billing cycle impacts your credit score 

Your billing cycle impacts your credit score because how you use your credit card during that period is reported to the three credit bureaus at the end of each billing cycle. If you make late payments or miss them altogether, your payment history, which typically makes up 35 percent of your credit score, will be greatly affected. 

To set yourself up for success, make payments on time each month. You might also consider paying your credit card bill in full each month to help you avoid interest charges. 

Another thing to keep in mind is your credit utilization. Your credit utilization ratio, or the amount of credit you’re using compared to your credit limit, is reported to the credit bureaus at the end of each billing cycle. To maintain good credit, it’s recommended that you keep your credit utilization under 30 percent. One way to do this is to pay off the full balance instead of just making the minimum payment. 

Lastly, you can also use your understanding of billing cycles to plan for large purchases and ensure you can make timely payments. For example, let’s say you’re planning to go on a vacation. If you book your trip at the start of the billing cycle, you’ll have more time to pay it off than if you were to make that purchase toward the end of your billing cycle. 

Monitor your credit with Lexington Law FirmUnderstanding your billing cycle is important to ensure you pay your bills on time. In addition to tracking your billing cycle, regularly monitoring your credit score can help you further understand how your financial choices impact your credit in addition to alerting you of any potential errors or discrepancies. Lexington Law Firm can help – get started today with your free credit assessment. 

Source: lexingtonlaw.com

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The downward movement in mortgage rates over the past few months accelerated last week as a cooler-than-expected jobs report and indications of a Federal Reserve rate cut led to a steep drop in loan pricing.

At HousingWire‘s Mortgage Rates Center on Tuesday, the 30-year conventional loan rate averaged 6.8% — a new low point for 2024 that was just below the 6.83% figure to start the year. Rates have been above 7% for much of the past six months, contributing to a tepid spring and summer of home sales, but they have steadily decreased since peaking above 7.5% in early May.

Depending on the loan scenario, originators across the country are offering even lower prices to borrowers. HousingWire interviewed several mortgage professionals on Monday who said that rates for government loans were in the high 5% to low 6% range, while those for conventional mortgages were in the low-to-mid-6s. Several reported that mortgage rates rose again on Tuesday due to weaker mortgage-backed securities prices. Quotes vary based on borrower credit scores, lender points and other factors.

On Monday, turmoil for international stock markets were received as good news for the U.S. housing and mortgage markets, even as stock prices for some major real estate and mortgage companies took a hit. Bank of America projected more than 100 basis points (bps) of rate cuts before the end of the year as the risk of a recession appears to be rising.

The recent decline in rates — and expectations for more — are fueling optimism for a potential renaissance in home purchase and refinance lending. At United Wholesale Mortgage, for example, CEO Mat Ishbia said Tuesday that the company is selling some of its mortgage servicing rights with higher coupon rates as it looks to deleverage its balance sheet and invest in origination opportunities.

The CME Group‘s FedWatch tool currently shows a 100% chance of a rate cut following next month’s Fed meeting. Sixty-three percent of analysts believe there will be a cut of 50 bps, with 37% expecting a cut of 25 bps. The federal funds rate has not moved from its current range of 5.25% to 5.5% since July 2023.

Other market observers cautioned that even though a Fed rate cut in September seems all but certain, mortgage rates don’t always move in tandem with changes in the federal funds rate.

“Mortgage rates aren’t going to change based on a Fed cut,“ Melissa Cohn, a regional vice president at William Raveis Mortgage, said in a statement. “Your home equity rate will drop. Your student loans, car loans, all those rates will drop every time the Fed cuts rates, but mortgage rates are tied to the bond market, and the bond market is more affiliated with the rate of inflation and bad economic data than it is to the Fed funds rate.”

In commentary published Monday, Moody’s analyst Nick Villa wrote that a September rate cut will not be enough to “relieve the housing affordability crisis.“

“Presumably, even with the first interest rate cut of this hiking cycle in September, the federal funds rate would still be in restrictive territory with additional cuts needed to help restore the housing market to a more balanced equilibrium,“ Villa said. 

Source: housingwire.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice.See Lexington Law’s editorial disclosure for more information.

Taking out a personal loan can help you get a lower interest rate and consolidate your credit debt. But a personal loan may also come with new fees and payment terms, so make sure to consider your collective monthly payment before moving forward.

Credit card debt can be difficult to keep track of. From juggling due dates to dealing with high interest rates, managing credit card debt can be time consuming. 

To simplify your finances, you might consider taking out a personal loan to pay off credit card debt. After using the money from the loan to pay off your credit cards, you can then make payments toward the loan. 

Unsure if this is the right option for you? In this article, we’ll weigh the benefits and drawbacks of using a personal loan to pay off credit card debt. We’ll also discuss alternative debt consolidation options to consider. 

Benefits of taking out a personal loan to pay off credit card debt

In the U.S., credit card debt is on the rise, with the average balance at $5,910 per person (at the time of writing this article). If you’re struggling to make a dent in your balances, you might consider debt consolidation as a step forward. Below are the benefits of taking out a personal loan to pay off credit card debt: 

1. Less interest 

Generally, personal loans have lower interest rates than credit cards. According to the Federal Reserve, the average credit card interest rate is 22.16 percent, while the average 24-month personal loan interest rate is 11.48 percent (based on data from May 2023). Therefore, opting for a personal loan could potentially cut your interest rate in half. With less interest, you can put more money toward the principal balance and pay your debt off faster. 

2. Fewer payments 

If you use a variety of credit cards, then you have to pay multiple balances each month. A personal loan, on the other hand, involves only one monthly payment. Consolidating your payments into one can make paying debt easier to manage and reduce the possibility of missing a payment. 

3. Better credit score 

Although applying for a personal loan will trigger a hard inquiry that may temporarily cause your credit score to drop a few points, it can help improve your credit score in many ways. 

First, taking out a personal loan can improve your credit mix, or your variety of credit types. If you’ve historically only opened credit card accounts, then a personal loan can add a different type of credit account to your credit mix and, therefore, improve your credit score. 

Next, using a personal loan to pay off credit cards lowers your credit utilization ratio—the amount of credit you’re using divided by your total credit limit. 

To lower your credit utilization even more, remember to leave your credit accounts open even after paying them off. Leaving old accounts open also keeps your length of credit history long, which is another factor that affects your credit score. 

Drawbacks of taking out a personal loan to pay off credit card debt

While using a personal loan to pay off credit card debt has many benefits, there are also some drawbacks to consider. 

1. Fees

Many lenders charge an origination fee to process your loan, generally between 0.5 and one percent of the loan amount. Other fees include application fees, late payment fees, returned check fees and prepayment penalties. Depending on how much lower your loan interest rate than your credit cards, these fees can cut out a portion of your savings. 

2. Lowest interest rate isn’t guaranteed

While personal loans typically have lower interest rates than credit cards, you may not qualify for a favorable APR if you have a bad credit score. Those with very poor credit may not qualify for a personal loan at all. 

3. Potential to get deeper into debt 

Taking out a personal loan can perpetuate the debt cycle. Therefore, you shouldn’t rack up new credit card debt while you’re paying off your personal loan. If you continue to use credit cards, you could find yourself in even more debt than you started with. 

How to get a loan to pay off credit card debt 

If, after weighing the pros and cons, you’ve decided that getting a loan to pay off your debt is the right option for you, follow these steps: 

Step 1: Review your credit report: Get a copy of your credit report and check for errors. Dispute any inaccuracies you find with the credit bureau. 

Step 2: Research lenders and compare loans: Look into banks, credit unions and online lenders. Apply for prequalification and record the loan terms you’re likely to get approved for. 

Step 3: Choose a lender and complete your application. Once you’ve found the best offer, apply for the loan. You may need to submit additional documentation to complete the application process, such as copies of your ID, bank statements and pay stubs. 

Step 4: Receive the funds and pay off your credit card debt: Once you’re approved, the lender will send you the funds that you can use to pay off your credit card debt. Some debt consolidation lenders may even pay your creditors directly, removing the hassle from your end. 

Step 5: Make payments toward your loan. Pay down your personal loan each month. Create reminders or set up auto pay to avoid missing payments. 

Alternative ways to consolidate credit card debt

If you’ve decided that taking out a personal loan isn’t the right option for your financial situation, consider other ways to pay off your credit card debt: 

  • Balance transfer credit card: Transfer your credit card balances to a new credit card that offers a 0 percent APR introductory period. Aim to pay off your balances before your interest rate increases. 
  • Home equity loan: If you’re a homeowner, you can use the equity in your house as collateral to borrow funds. Keep in mind that defaulting on a home equity loan could lead to foreclosure. 
  • 401(k) loan: Borrow money from your retirement plan. Generally, you can borrow up to 50 percent of your savings up to $50,000. 
  • Debt management plan: Enlist the help of a credit counseling agency to create a plan for paying off your credit card debt. 

Paying off credit card debt FAQ

Below, we’ve answered some frequently asked questions regarding credit card debt payoff. 

Is it smart to take out a loan to pay off credit card debt?

Yes, it’s smart to take out a loan to pay off credit card debt if you qualify for a lower interest rate. 

What are other ways to pay off credit card debt fast?

Other ways to pay off credit card debt fast include creating a budget and paying more than the minimum amount due. Consider using the debt snowball or avalanche method to prioritize which debts to pay off first. 

How do you avoid credit card debt in the future? 

To avoid racking up credit card debt in the future, pay your balance off in full monthly. Make sure you’re only using your credit card to make payments that you can afford to pay back. Create an emergency fund so you don’t have to resort to credit in the case of an unexpected expense.

While personal loans are a great way to consolidate credit card debt, you’ll need a good credit score to qualify for lower interest rates. Get your free credit assessment today to view your credit score and credit report summary, as well as receive a credit repair recommendation. 

Source: lexingtonlaw.com

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Well, here we are. It took longer than expected, but mortgage rates have finally strung together a decent rally after nearly three years of increases.

They fell below year-ago levels a week or two ago, per Freddie Mac, and took another big leg down after a softer-than-expected jobs report on Friday.

As for why, fewer new hires, increased unemployment, and slowing wage growth all point to a slowing economy. And interest rates tend to drop when the economy cools.

In addition, the Fed is expected to pivot and begin cutting rates, which could act as another tailwind for lower mortgage rates.

This has many thinking we’ll see another surge of home buyer demand, and potentially a big jump in home prices. But is it true?

Do Lower Interest Rates Actually Increase Home Prices?

It’s entirely logical on the surface. If something people want becomes cheaper overnight, demand for it should hypothetically increase.

And if demand increases, the price might rise as supply decreases, especially if there are already too few homes for sale.

But if that were true for single-family homes, why didn’t asking prices crash over the past year and change?

After all, rates on the 30-year fixed mortgage nearly tripled from its record lows in the mid-2s in early 2021 before peaking at just above 8% last fall.

Using the same logic above, home prices would surely nosedive as buyers fled the market, leading to a massive supply glut.

Instead, home price appreciation simply cooled off and home prices continued to increase in most parts of the country.

In fact, if you look at many home price indices, we have new all-time high home prices pretty much every month.

Home Prices Continued to Rise as Mortgage Rates Nearly Tripled

Just take this chart from the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac.

Their latest report released on July 30th revealed that home prices increased a solid 5.7% from May 2023 to May 2024.

However, home prices were flat month-to-month from April after rising 0.3% a month earlier.

Still, if you look at the chart, you’ll see that home prices didn’t slow much as mortgage rates began their ascent at the start of 2022.

There was a brief pause as the housing market digested the near-tripling in rates, but then prices continued their ascent unabated.

So if we want to argue that there’s an inverse relationship between rates and prices, this last few years wouldn’t be a good example of that.

All we’ve really seen is a positive correlation between rates and prices, in which BOTH have risen together.

And now that mortgage rates appear poised for a bit of a rally, should we ignore that and say they have a negative relationship?

Can we say prices should have fallen when rates went up, but now that rates are falling they should go up even more?

Maybe There’s Just Not Much of a Correlation at All

Instead of trying to invent a relationship between mortgage rates and home prices, maybe we should just come to terms with the fact there isn’t a strong one.

And there’s nothing wrong with that. If you look at history, changes in mortgage rates and home prices are weakly related, this according to the Urban Institute.

I’ve posted this chart before, but here it is again if you don’t believe it. You’ll see all types of combinations of annual mortgage rate and home price changes.

These little dots won’t make it easy to make the argument that when mortgage rates fall, home prices rise. Or vice versa.

Instead, you’ll see instances when they rose together, fell together, or sometimes, to fit the popular narrative that isn’t necessarily true, went in opposite directions.

Of course, nominal home prices (not adjusted for inflation) rarely go down to begin with, so we don’t even have that many examples to look at.

Why Would Home Prices Fall If Mortgage Rates Got Cheaper?

Well, just look at the economy…sure, mortgage rates are important because they can make a big impact on affordability.

The lower the rate, the more a home buyer can afford, all else equal. In fact, a 1% drop in mortgage rates is worth an 11% decrease in price.

But this simplistic view ignores cash buyers. And it ignores the financial health of prospective home buyers who need to get approved for a mortgage.

Just consider the last few days. The stock market has gotten hammered, with the Dow Jones falling more than 1,000 points today and the Nasdaq off nearly 600 points.

This sell-off was sparked by concerns about the health of the economy, with weaker data expected to usher in Fed rate cuts.

There’s a good chance that softer data will be accompanied by lower mortgage rates too.

Simply put, signs of a slowing economy improved the odds for a Fed rate cut, and also gave bonds a boost, which are a safe haven for investors when times get tough.

But if households are in worse shape because of said data, you’re going to have fewer home buyers out there. You could also have more sellers, perhaps even distressed ones.

Taken together, we might have a situation where the supply of homes for sale rises and prices fall, despite a big improvement in mortgage rates.

So yes, home prices could in fact go down, even if mortgage rates are lower!

But that’s not a foregone conclusion either, and will likely be highly variable based on economic strength and individual market dynamics throughout the country.

The main message here is there’s no strong correlation any which way. Thinking otherwise might simply lead to disappointment.

Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Latest posts by Colin Robertson (see all)

Source: thetruthaboutmortgage.com

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Fears of a recession in the U.S. sent shockwaves through financial markets around the world on Monday. The Dow-Jones dropped 1,000 points by 10:30 a.m. Eastern time, the NASDAQ lost up to 6% of its value and Japanese stocks suffered their biggest crash since 1987, with the Nikkei 225 stock index dropping 12.4%.

The turbulence should benefit the U.S. mortgage market, which has already seen big interest rate declines in the past week following a Fed meeting that teased forthcoming cuts to benchmark interest rates, along with a much weaker-than-expected jobs report.

“Bond yields have made a huge move lower and have made a big move up; it’s market madness on Monday, the 10-year yield is only down a few basis points as of this second,” HousingWire Lead Analyst Logan Mohtashami said at 10:32 a.m. EST. “Mortgage pricing should be lower today, but the close of today with the 10-year yield is key because short term bonds are very overbought.”

Several loan officers and mortgage executives told Housingwire that they’ve been quoting even lower prices on Monday though they’re also having to fight for loans that were locked in their pipeline at higher prices.

As of 11:08 a.m. EST, the 10-year Treasury yield hit 3.76%, the lowest reading since June 2023, while the two-year Treasury yield moved to 3.88%, which is generally a sign of recession.

Analysts at Keefe Bruyette and Woods (KBW) on Monday said that weak employment data drove market concerns about credit and fueled an interest rate rally. Mortgage spreads tightened at the same time, taking the Fannie Mae current coupon to 5.05%. 

“If long-rates remains stable, this suggests that the 30-yr Freddie Mac fixed rate mortgage should fall from 6.73% last Thursday to ~6.3% next week. The market also sharply increased expectations for Fed rates, pricing in ~4.6 25 bp cuts by year-end, including a strong likelihood of a 50 bp cut in September,” the analysts said.

“Fed funds futures now imply the Fed Funds rate could be 200 bp lower by July 2025. This backdrop should favor the mortgage universe broadly as (likely) improvement in purchase activity should benefit originators/title insurers. … We also reiterate our OP on the mortgage insurers (ESNT is highlighted here) as we expect credit to stay strong unless home prices fall sharply, which we do not anticipate.”

Analysts at Bank of America said the markets view U.S. recession risk as rising and are projecting more than 100 bps of rate cuts before year’s end.

“Incoming data have raised concerns that the US economy has hit an air pocket,” they said. “Financial markets are now pricing in more than 100bp in rate cuts by year-end and significant probability of a 50bp cut in September. Markets even began discussing whether the Fed needs to deliver intermeeting cuts. A rate cut in September is now a virtual lock, but we do not think the economy needs aggressive, recession-sized cuts.”

Loan originators and mortgage executives told HousingWire on Friday that they were locking borrowers in the high 5% range on government loans and in the mid-6% range on conventional mortgages.

Last week‘s sharp mortgage rate decline, which saw most LOs improve pricing between 20 and 60 basis points, resulted in a surge in rate locks, originators said.

“For example, I locked one loan today that would have cost the borrower 1.213 points on Monday versus 0.375 today. This loan amount happens to be $610,000, and the cost of the rate went from costing $7,400 to costing $3,200 today,” said California-based Shannon Hoff of American Pacific Mortgage. “The average mortgage loan amount in the U.S. is $405,000, and saving an extra 80 basis points could equate to $150 to $250 a month, depending on the overall scenario. This is huge for borrowers.”

According to Hoff, borrowers best positioned to take advantage of these rates are those who have purchased or taken a cash-out refinance over the past 12 to 18 months. In addition, some borrowers are looking to buy now or have been prequalified this past year.

“They can take advantage of a lower payment or even qualifying for a higher purchase price if the DTI was a key factor in the preapproval,” she said.

Flàvia Furlan Nunes contributed to this report.

Source: housingwire.com

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Every college major requires work, but some fields of study are more rigorous than others. For instance, you won’t find too many people who think that pre-med is a snap. While earning your undergrad degree isn’t going to be effortless, there are definitely some easier college majors out there that won’t be as taxing.

Choosing a less complex major doesn’t mean you’re doomed to a low-paying job for life. In fact, it can be quite the opposite. Read on to learn about 12 relatively easy college majors that can lead to jobs that pay well.

What Makes a Major “Easy”?

The workload for an easier major, like creative writing, probably won’t be as intensive as that of, say, biomedical engineering, neuroscience, or applied mathematics. You likely won’t have long lab sessions, tons of problem sets, and other arduous assignments.

This could make achieving higher grades a simpler proposition. Your noteworthy grades could, in turn, help you get a leg up after graduation. You might be able to step into a higher-paying job more easily, which could help you pay off any private school loans for college you might have.

A college major can also feel easier if it’s a field you’re interested in and passionate about. Your excitement about a major will likely make going to class something you’ll look forward to and the work required seem like less of a drag.

Recommended: A Guide to Choosing the Right College Major

12 Easy College Majors That Ultimately Pay Well

While getting an entry-level job paying a six-figure salary isn’t the norm for these easy college majors, you could still earn big bucks down the road.

Here, you’ll learn about 12 easy majors along with some average entry-level salaries and mid-career pay for positions within each field, according to Salary.com.

1. Marketing

A marketing degree opens up many career possibilities. People who major in marketing can find positions in all types of companies, industries, institutions, and nonprofits. Jobs in marketing include positions focusing on a business’s or brand’s strategy, sales techniques, advertising and communications, or public relations.

Marketing careers can pay off over time.

•   Average entry-level salary: $35,516 for a marketing assistant.

•   Average mid-career salary: $91,870 for a marketing manager.

As you see from that mid-career pay grade, a six-figure salary could be just around the corner.

2. Human Resources

With a college degree in human resources (HR), you can work in many different roles, including talent recruitment, benefits administration, DEI initiatives, or workplace development training.

In terms of landing a well-paying job, here are some salaries to note:

•   Average starting salary: $43,386 for an HR assistant.

•   Average mid-career salary: $94,576 for an HR manager.

3. Hospitality

Do you love looking at fab resorts and restaurants in your social media feeds? This major might be a perfect fit for you. With a degree in this field (which likely doesn’t involve any science labs), you might work in an array of positions. Some examples: hotel, resort, or restaurant management; event planning; or travel booking and tourism, among others.

Some salaries to note for this college major:

•   Average starting salary: $50,949 for an event planner.

•   Average mid-career salary: $76,898 for a hotel manager.

These figures are notably higher than $43,262, which Indeed cites as the current average starting salary in the U.S.

Recommended: Is $50K a Good Salary for a Single Person in 2024?

4. Communications

As one of the most popular college majors, a communications degree can prepare you for many different career paths. Marketing (mentioned previously) can fall under the umbrella of communications. Other areas for employment with this degree include public relations, advertising, journalism, writing, broadcasting, publishing, and social and digital media development.

A sample of the salaries you might expect at different points in your career:

•   Average starting salary: $51,928 for a corporate communications assistant or $45,955 for a social media assistant.

•   Average mid-career salary: $125,700 for a corporate communications manager and $116,090 for a social media manager.

5. Public Relations

Public relations (PR) has a broad reach. If you’re looking to capitalize on a degree in public relations, you might find a job in a small or large PR agency, a corporate PR department, or as an independent consultant to various clients. Since working in PR often involves frequent communication with clients and the public, this field can offer some of the better jobs for extroverts.

•   Average starting salary: $49,383 for a public relations specialist.

•   Average mid-career salary: $93,556 for a public relations manager.

6. Liberal Studies

A liberal arts or liberal studies major allows for a lot of flexibility and variety when it comes to job prospects. Students majoring in liberal arts or studies participate in a multi-disciplinary program, often including courses in humanities, history, art, literature, science, and philosophy. Earning a liberal studies degree can offer students a chance to develop many important “soft skills,” including problem solving, communication, and analytical and critical thinking.

Someone with a liberal arts degree may be drawn toward work in libraries, arts administration, government, or education and academia.

•   Average starting salary: $66,575 for a public policy analyst.

•   Average mid-career salary: $147,140 for a public policy manager.

7. Anthropology

Anthropology focuses on the study of humans in different cultures and societies, spanning various time periods and locations. It may not involve the kind of coursework that, say, studying law does, but it can be a fascinating field.

An anthropologist can work for ethnic or cultural organizations, museums, historical sites, research firms, or as a social or community services manager.

•   Average starting salary: $47,660 for a museum collectors curator.

•   Average mid-career salary: $64,962 for a museum director.

8. History

Knowledge of the past can be a powerful career springboard. Besides becoming a historian, history majors may find work in journalism, teaching, and politics. People with history degrees can also possibly find work at historical societies, museums, and libraries.

•   Average entry-level salary: $57,015 for a library archivist.

•   Average mid-career salary: $85,724 for a senior librarian.

9. Advertising

Advertising often taps a student’s interest in sales and contemporary consumer culture. Careers for advertising majors range from creative pursuits (copywriting or art direction, for instance) to more business-driven ones, such as being an account coordinator or a sales rep.

•   Average starting salary: $47,346 for junior copywriter, $45,686 for a junior graphic designer, or $43,300 for a junior sales rep.

•   Average mid-career salary: $122,524 for a copywriting manager, $122,236 for a graphic design director, or $107,183 for a senior advertising account manager, all of which can be a good salary for a single person.

10. English/Creative Writing

An English or creative writing major may be what many people consider easy. Depending on the path you take, it could lead to a high-paying job. People who choose this field may pursue a job as a proofreader, copy editor, technical writer, book editor, author, or an editor at a publishing company or magazine. These may all be lower stress jobs that are good for introverts.

•   Average starting salary: $44,750 for an entry-level proofreader.

•   Average mid-career salary: $98,101 for a senior editor.

11. Sports Management

Anyone who loves sports (whether participating, watching, or both) may be attracted to a major in sports management. Sports management encompasses a wide array of jobs, including becoming a sports agent, an athletic director, or a sports facility manager.

•   Average starting salary: $51,539 for a sports coordinator position.

•   Average mid-career salary: $69,061 for a sports manager job.

12. Criminal Justice

If you’re always watching procedural dramas on TV, you might be interested in majoring in criminal justice. While this field of study may be considered easy as compared with, say, a mathematics major, that doesn’t mean a career in criminal justice isn’t going to be challenging and rewarding.

Jobs for criminal justice majors can include working in the areas of law enforcement, forensics, investigations, and crime prevention.

•   Average starting salary: $50,733 for a fraud investigation officer or $56,376 for a police officer (plus, you might eventually qualify for federal student loan forgiveness programs) .

•   Average mid-career salary: $123,694 for a fraud manager or $90,671 for a chief detective position at a business.

Factors Besides Difficulty

Now you know 12 relatively easy majors that can lead to a job with high pay. But it’s worthwhile to consider some other factors that should be considered when choosing a college major.

Job Outlook

Some fields are growing faster than others. As you think about your major, it can be a good idea to make sure the one you choose will lead to a field that is growing and will have plentiful job opportunities after college. For instance, if you have a criminal justice degree and want to work in fraud investigations, you might find that there’s considerable growth in digital fraud and focus your education to prepare you for that kind of work.

Passion/Interest

Sometimes what makes coursework in college seem easy is that you love it. Ask any astrophysics major. They may think what they are studying is hard, but because they love it, the pursuit feels engaging and worthwhile.

In other words, if you are passionate about a subject, that can be a good reason to major in it, even if it has a reputation for being hard.

School Prestige

When it comes to getting a high-paying job after graduation, it can help if you pursue a program that your school is known for. For instance, some universities are renowned for having great journalism programs, and that reputation could give graduates an advantage in the job market.

The Takeaway

Getting an undergraduate degree, no matter what the major, requires hard work and dedication. However, there are some majors that fall into the “easier” category such as communications, anthropology, and history. These majors may not require as intensive a curriculum as others (say, chemical engineering), but grads can still go on to earn high salaries.

Regardless of whether your major is considered hard or easy, you may need some help paying for your education.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

Is an “easy” major looked down on?

There may be some people who think certain majors are easy, but virtually all college majors require hard work. After graduation, hiring managers are likely looking for someone who performed well in school, is enthusiastic about their studies, and wants to apply their skills to their chosen career.

Do easy majors require less study time?

How much time and effort a college major requires can depend on the school, the curriculum, and a student’s approach to their studies and their aptitude. It’s not possible to say that all easy majors require less study time.

What are the highest paying majors overall?

According to a 2024 report from the National Association of Colleges and Employers, the highest paying majors are those in the STEM (science, technology, engineering, and math) category. The three highest paying majors are engineering, computer sciences, and math and sciences.

Photo credit: iStock/Drazen Zigic

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility-criteria for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Source: sofi.com

Apache is functioning normally

Managing your personal finances can feel overwhelming, but with the right steps, you can take control and gain peace of mind. Whether you’re looking to pay off debt, save for a big purchase, or just want to feel more in control, these steps will guide you to financial stability.

In this post, you’ll discover 12 fail-proof steps to organize your personal finances. These practical tips will help you create a budget, track your expenses, and plan for the future, ensuring you can make smart financial decisions and stay on top of your money. Let’s get started on the path to better financial organization!

Why Organize your Finances?

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Organizing your finances makes life easier and less stressful. You can see where your money goes and save more. Thus, knowing your bills are paid in full.

1. Inventory all of Your Accounts

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List every bank, credit, and investment account you have. Knowing what you have helps manage your money better.

Learn More: Grab a copy of our POPULAR budget binder!

2. Figure Out Your Net Worth

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Calculate your net worth by subtracting debts from assets. This gives a clear picture of your financial health. Even if your net worth is negative, there is only one way up.

To learn more: How to Calculate Your Liquid Net Worth and Know What You’re Worth

3. Create a Budget Binder

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Use a budget binder to track spending and savings. It helps keep your financial life organized and on track.

To learn more: How to Make a Budget Binder to Motivate Your Financial Goals

4. Separate Email for Finances

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Create a separate email for all financial matters. It keeps everything organized and easy to find when needed.

5. Use a Bill Payment Organizer

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Track all your bills with a bill payment organizer. This ensures you never miss a payment and stay on budget.

To learn more: 5 Effective Bill Calendar Strategies That Boost Your Finances

6. Set Money Goals

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Define your financial goals, like saving for a car or paying off debt. Clear goals help you stay focused. This is something that should not be overlooked.

To learn more: Powerful Truth Behind Money Goals that you Need to Know

7. Know Your Income and Expenses

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Track your income and expenses to see where your money goes. This helps in making informed financial decisions.

To learn more: What is Annual Income? Meaning, Gross, Net, and How to Calculate

8. Find Out Your Credit Score Number

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Check your credit score regularly. Knowing your score helps you improve it and get better interest rates.

9. Update Your Estate Documents

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Keep your estate documents up to date. This protects your assets and ensures your wishes are followed. This is something that must be reviewed every couple of years.

10. Review Your Insurance

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Regularly review insurance policies to ensure you have adequate coverage at the best price. This is for auto, homeowners, or umbrella policies.

11. Use a Password Manager

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Store all your financial passwords securely in a password manager. This keeps your accounts safe and accessible. Bitwarden is a preferred choice by many security analysts.

12. Tell Someone

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Share your financial plans with a trusted person. Having someone to talk to helps stay accountable and focused.

What is your next step to organize your personal finances?

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Now that you know the steps, start today. A little organization can make a big difference in your financial life. Plus you can relieve stress.

To learn more: How to Organize Personal Finances in 8 Simple Steps

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

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A home equity loan can allow you to access large sums of money without selling your home. Using your home as collateral, you can get a loan to finance anything you want — the choice is up to you.

There is a bit you should know before jumping all in. Any time a loan requires collateral, it’s always best to read the fine print. Keep reading to learn more about the details and see if a home equity loan is right for you.

Key Takeaways

  • A home equity loan allows homeowners to borrow against the equity in their home, using it as collateral.
  • Borrowers typically can access up to 80% of the home’s value, minus the existing mortgage balance.
  • Home equity loans have fixed interest rates and terms, while home equity lines of credit (HELOCs) offer flexible borrowing with variable rates.

What is a home equity loan?

Let’s start by explaining what home equity is. Home equity is the amount of your home’s value that you own beyond your mortgage.

In other words, it’s what you could sell your house for right now minus what you still owe on your mortgage. For example, if your current mortgage is $150,000, but the house appraises for $280,000, then you would have $130,000 in home equity.

How does a home equity loan work?

A home equity loan is a loan where you, the homeowner, use the equity in your home as collateral to borrow money.

But here’s the catch.

Just because you have $130,000 in home equity doesn’t mean that’s what is available to you from the bank. Lenders typically only approve home equity loans for up to 80% of the home’s value. So in this example, the lendable value of the home is $224,000. When you subtract your $150,000 mortgage balance, that leaves you with $74,000 available to you via a home equity loan.

Of course, there are other variables the lender considers as well.

Check Out Our Top Picks for 2024:

Best Home Equity Lenders

Requirements to Get a Home Equity Loan

Home equity loans used to be a sure thing. You could just walk into a bank and take out a home equity loan if you had equity in your home.

Then the 2008 housing crisis happened, and everything changed.

Now lenders are pickier and comb through every detail of each application. They have also started limiting the loan amount to only 80% of your home’s value, whereas 90% to 100% used to be commonplace.

Before approval, you’ll also obviously need to demonstrate and prove that you can repay the loan. If you argue that you have immediate plans to sell after renovation, prepare to be disappointed. Plans alone won’t suffice. A secure and constant revenue stream is definitely needed.

Most lenders require a debt-to-income ratio of 43% or less. So, the monthly payment for your home equity loan, along with your other monthly debt payments, can’t exceed 43% of your monthly pre-tax pay. Depending on your finances, this could limit just how much equity you’re able to tap into.

Home Equity Loans vs. Home Improvement Loans

Is a home equity loan the same thing as a home improvement loan?

No, they are very different. For example, you could use a home equity loan to finance needed repairs or home improvements. However, you could not use the funds from a home improvement loan as you would a personal loan.

A home improvement loan also doesn’t consider the equity you have in your home, nor does it require any collateral. Instead, you use it for anything that revolves around the “improvement” of your home — be it to install a swimming pool, remodel a kitchen, or repair a roof.

Lenders usually require you to provide a detailed plan of what you would use the money for. Additionally, the repayment periods are a lot shorter than home equity loans.

Home Equity Loans vs. Second Mortgages

Is a home equity loan the same as taking out a second mortgage?

Generally speaking, yes. People tend to confuse home equity loans with home equity lines of credit. A home equity line of credit (HELOC) is an adjustable-rate loan and can be a second mortgage, but it doesn’t have to be.

You can get a HELOC after you’ve paid off your mortgage, in which case the HELOC would be your first mortgage. However, rather than receiving a single payment as you would with a home equity loan, a HELOC lets you draw from an account as you need funds.

Home Equity Loan Benefits

There are quite a few pros and cons associated with home equity loans for borrowers and lenders.

From the buyer’s side:

For starters, home equity loans tend to be easier to get than other types of loans if you have bad credit. So if you’re getting turned down by multiple lenders, it’s a great alternative to traditional personal loans.

Secondly, most home equity loans have lower interest rates than unsecured loans, which will help you pay less over time. And you can use the funds to pay off credit card debt with higher interest.

Your credit score will directly affect the interest rate you get. The higher your credit score, the lower your interest rate will be.

Plus, there are some tax advantages. Not everybody qualifies, but all the interest you pay is tax-deductible if you do. That means you’ll pay less in taxes come April. Lastly, if you have a fair amount of equity in your home, you can borrow money against the equity.

For lenders:

Home equity loans are safe loans to make for a bank because they’re secured by the homeowner’s house. If the homeowner fails to make mortgage payments, the lender can seize the home to recoup the funds they’ve lost (which is how some of those blue foreclosure dots end up on Zillow).

Borrowers are always more likely to make a monthly payment on a loan if it’s secured by something valuable. Most of the time, they’ll choose to miss a credit card payment over a loan payment if they have to make a choice.

Home Equity Loan Drawbacks

The main con is the most obvious one: you could lose your home if you’re unable to make loan payments. Many times we’re put between a rock and a hard place.

It may not be the best loan for you if you have a real chance of not being able to pay both your mortgage and equity loan in the future. Unsecured installment loans may be a better option. However, the interest rate will be higher.

Another thing you should know is that the home equity loan market is rife with scammers. Some lenders will take advantage of any opportunity to rid you of your home at the first chance they get. So, if the company that’s caught your eye seems too good to be true, it most likely is.

How does a home equity loan work?

First, let’s talk about how you receive your money. There are a couple of different ways. You can either receive money as a lump sum or as a line of credit.

Lump Sum

Get all your cash at once and begin paying back the loan with monthly payments. Home equity loans usually come with a fixed interest rate. Each monthly mortgage payment you make will go towards interest and the principal.

Line of Credit

Once you are approved for a line of credit, you can choose only to borrow what you need when you need it. It has a credit limit, much like a credit card.

Referred to as a HELOC (home equity line of credit), if you go this route, you can borrow multiple times and only have to make smaller payments as you do. You can do this for several years until you’re expected to start making larger payments to pay off the loan.

Home equity lines of credit are considered by many to be the best option because of their flexibility. You’re only expected to pay interest on the loan amount you’ve used in the beginning. However, with a variable interest rate, some monthly payments may be higher or lower than others.

Another downside to a HELOC is that if banks need to, they can cancel the HELOC before you’ve even gotten a chance to use it. If it happens to you, pay off whatever you need to pay off and go somewhere else. There are lenders everywhere.

It’s always wise to shop around before settling with a lender. Interest rates can often vary significantly, and some lenders are more reputable than others. Moreover, many lenders require you to pay closing costs when taking out a home equity loan, but many won’t.

Do your homework and calculate which one will save you the most money over time. For example, a company may charge you closing costs, but if their mortgage rates are a lot lower than everyone else’s, they may be the best choice.

How long do you have to repay a home equity loan?

Home equity loans typically have terms ranging from five to 20 years, but some can last up to 30 years. With a fixed interest rate home equity loan, you’ll have fixed monthly payments until the loan is paid off.

If you take out a home equity line of credit, you’ll only have to pay the interest each month on what you’ve drawn. The draw period can last only a few years or up to ten years (depending on the lender). Once the draw period is over, your payments become regular payments, so each month’s payments will go towards both the interest and principal.

It is possible to pay off either type of loan early, but, once again, depending on the lender, there may be fees involved.

Can you sell your home if you get a home equity loan?

Yes, you can. It’s considered a lien on your house, so it’s settled at closing. Your loan is added to whatever you still owe on your mortgage. The sum of both is subtracted from whatever you sold your house for, with the remaining profits going to you (and, of course, Realtor fees).

Problems arise if the housing market collapses after you’ve taken out a home equity loan and the value of your home tanks. If you sell your house in this situation, what you make on your house will unlikely pay for what you still owe.

Banks don’t like giving out loans to buyers for houses with liens because they represent a greater risk for them. So if you intend to sell your home soon, make sure you can pay off the loan either through the sales proceeds or other means like cash savings.

How does a home equity loan affect my credit?

As with any loan, it can help or hurt your credit scores in various ways. You shouldn’t expect much improvement in your credit scores unless you take out a large loan and make on-time payments for years and years.

Pros

  • Make your monthly payments on time, and your Payment History category will get a boost.
  • If you get a HELOC, you’ll get a bump in the Debts Owed category because you’ll have more credit available to you.
  • No matter whether you choose a lump sum or line of credit, you should see a bump in Types of Credit.
  • Depending on how long it takes you to pay back the loan, if it’s for more than a few years, you’ll see a bump in Length of Credit History.

Cons

  • Your credit score will be lowered if you don’t make your payments on time.
  • If you take out a large amount, your Balances Owed category could cause your credit score to go down a few points.
  • Because it’s simply a new credit line, your credit score will also lower due to the New Credit category.

Bottom Line

A home equity loan can be a valuable financial tool if you need access to significant funds and have substantial equity in your home. It offers advantages like lower interest rates compared to unsecured loans and potential tax benefits.

Be aware of the risks, such as the possibility of losing your home if you’re unable to make payments. Ensure you meet the lender’s requirements, shop around for the best rates, and understand the terms before proceeding. By doing so, you can make an informed decision and potentially benefit from the financial flexibility a home equity loan provides.

Source: crediful.com

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Frequent travelers to Latin America may want to look into the Avianca credit cards, which debuted to U.S. consumers in May 2024. The Colombia-based airline has multiple hubs, including in Lima and Bogota, and flies to over 75 destinations in the Americas and Europe. Plus, Avianca belongs to the Star Alliance, so miles earned with the Avianca cards can be used to book flights with more than 20 airlines within that group.

The Avianca cards earn elevated rewards on Avianca flights and give cardholders automatic Silver elite status, which comes with its own set of perks. However, though both cards charge an annual fee, they lack benefits that come standard with other airline credit cards — benefits that can make such annual fees more acceptable.

First Electronic Bank issues the Avianca cards, while the financial technology Cardless supports the cards’ rewards program in conjunction with Avianca’s LifeMiles loyalty program.

Here are five things to know about the Avianca credit cards.

🤓Nerdy Tip

You may already have a card in your wallet that can earn LifeMiles. Several major banks — including American Express, Capital One, Citi and Wells Fargo — issue credit cards that let you transfer rewards to Avianca and multiple other travel loyalty programs, usually at a 1:1 ratio.

1. There are two Avianca credit cards

The Avianca lifemiles American Express Card and Avianca lifemiles American Express Elite Card have annual fees of $99 and $249, respectively. As you might expect, the more expensive Elite card has more perks, such as 6,000 free miles a year and a bigger sign-up bonus — but you’ll have to spend a significant amount of money to get that full bonus.

However, holding either card automatically grants you Silver elite status, the second-highest tier of four within Avianca’s loyalty program. Benefits of Silver status include passes to Avianca lounges, priority boarding and more.

Avianca lifemiles American Express Elite Card

Avianca lifemiles American Express Card

Annual fee

Sign-up bonus

Earn up to 100,000 LifeMiles: 60,000 miles after spending $4,500 in the first 90 days, plus an additional 40,000 miles after spending $25,000 in the first year. Terms apply.

Earn up to 40,000 LifeMiles upon being approved for this credit card after spending $3,000 in the first 90 days. Terms apply.

Earnings rates

  • 3 LifeMiles per $1 spent on Avianca or LifeMiles purchases.

  • 2 LifeMiles per $1 spent at restaurants and on other travel purchases.

  • 1 LifeMile per $1 on other purchases.

  • Terms apply.

  • 2 LifeMiles per $1 spent on Avianca or LifeMiles purchases, as well as at restaurants and on groceries.

  • 1 LifeMile per $1 on other purchases.

  • Terms apply.

Other perks

  • Double the number of LifeMiles earned during each statement cycle, on up to 1,000 LifeMiles.

  • A complimentary LifeMiles+ subscription, which includes an extra 500 miles earned per month, redemption discounts on Star Alliance and Avianca flights, mileage bonuses for hotel bookings through LifeMiles.com and discounts on redemptions for rental car bookings through LifeMiles.com.

  • Terms apply.

  • 10% of your mile earnings qualify toward elite status.

2. Credit card rewards stack with the airline’s loyalty program

Joining the LifeMiles loyalty program is free and allows members to earn 5 miles per $1 for a classic fare and 7 miles per $1 for flex and business class tickets. But you can accelerate the rewards earning process with either credit card. A Cardless representative confirmed that credit card rewards stack on top of the loyalty program’s earnings.

3. Miles may be redeemed for flights, hotels and more

Miles earned with the Avianca cards may be redeemed for the following:

  • Avianca flights. (NerdWallet values Avianca lifemiles at 1.2 cents each.)

  • Business class upgrades. (Only applies to travel to Europe and certain flights within the Americas.)

  • Hotel stays booked in the LifeMiles Hotel platform.

  • Products and services from one of LifeMiles’ commercial partners. 

There’s no cap on the number of LifeMiles earned with the Avianca credit cards, and miles never expire.

4. Fees are pretty light

Yes, the Avianca cards have annual fees, but they do away with certain other fees, and/or at least keep them pretty low. Neither card charges foreign transaction fees, and there’s also no penalty APR, a higher interest rate imposed by some credit cards for non-payment.

5. Perks are light, too

The travel-related benefits on both Avianca cards are surprisingly light given that they charge annual fees. Neither card offers free checked bags, trip protections, or credits for TSA PreCheck or Global Entry.

Source: nerdwallet.com