Money Management

A personal loan may help you reduce the interest rate on your debt. But you’ll want to take these four steps before applying for a loan. [[{“value”:”

Taking a personal loan to pay off other debts might be a smart financial choice. The average interest rate on personal loans is 12.35%, which is significantly lower than the average credit card interest rate of 21.47%. If you have a bunch of other debts, paying all of them (or most of them) off with one personal loan can simplify the repayment process.

But, before you move forward with getting a personal loan to pay other creditors, there are four key steps you need to take first.

1. Figure out how much you owe

The first step is to figure out how much you owe to different creditors, so you know how much you need to borrow.

Some personal loan lenders offer loans up to $100,000, but the amount you’re going to qualify for is based on your credit score and income. Ideally, you’ll want a large enough personal loan to pay off all your other debts — otherwise, you’d have your new personal loan payment and your old debt payment to deal with.

2. Determine the interest rate on your debt versus your personal loans

Next, compare the interest rates on your current debt versus what rate you’d pay on personal loan debt. This is important because you don’t want to refinance with a personal loan at a higher rate than you’re already paying. If you had a debt at 5% and you refinanced it using a personal loan at 10%, you’d double the interest you pay each year on that debt.

Most personal loan lenders will allow you to check your rates with only a soft credit check (one that doesn’t impact your credit score). You can compare the rate you’re offered with your existing debts to ensure refinancing will save you money before moving forward.

3. Make a detailed budget plan to pay off your new personal loan

When you shop around for your personal loan, you can see what your future monthly payment would be if you took out the loan you’re thinking about. You’ll want to be absolutely sure that this payment fits into your budget.

For example, if you’d have to pay $300 a month out of your bank account toward your personal loan, be sure you can afford those payments before taking out the loan. If you can’t, you may have to borrow less, shop around for a loan with a lower rate, or get a loan with a longer repayment timeline (which would come with a lower monthly payment, but higher total interest costs over the life of the loan).

4. Make sure you have your spending under control

Finally, the last key thing to do is to make sure you have your spending under control. You do not want to use a personal loan to pay off credit cards, only to charge those cards up again and end up with both your personal loans and credit cards to pay.

If you can live on a budget and have some money saved for emergencies so you don’t have to turn to your cards when unexpected expenses happen, then moving forward with an affordable low-interest personal loan to refinance your debt could be a smart choice.

Our picks for the best personal loans

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Costco’s two-day delivery offering gets items to your door quickly. But you might pay more than you bargained for. Read on to learn more. [[{“value”:”

Many people who belong to Costco enjoy going to the store, browsing the aisles, and sampling the free food that tends to be on offer. But if you find the process of shopping at Costco in person to be aggravating or inconvenient (maybe the store always seems to be crowded when you go, or it’s just not that close to where you live), then you may be inclined to take advantage of Costco’s two-day delivery service.

Costco offers a host of non-perishable grocery items, as well as household essentials, for two-day delivery. Place your order by noon, and it should arrive at your door two business days later. So if you order a haul at 10:00 a.m. on Monday, at some point on Wednesday, you should have those items in hand.

Costco’s two-day delivery service is certainly convenient. But whether it makes sense financially is a different story.

You’ll pay more — even if you get free shipping

Costco’s two-day delivery service allows you to place an order of any size. But you can avoid a separate shipping charge by hitting a $75 order minimum.

Remember, this is Costco, where items are available in bulk. So for some people, reaching that threshold may not be such a hard thing to do.

But even if you don’t have to pay a separate shipping fee for two-day delivery, it’s going to cost you more than shopping in person. Costco says expressly on its website that “item pricing is higher than your local warehouse in order to cover the pick and pack fulfillment cost.” So that’s something to consider when assessing your choices.

To be clear, whether you order items for two-day delivery or not, you’re going to pay more on Costco.com than in a store because Costco builds the cost of shipping and fulfillment into its online prices. And it can be a little tricky to determine just how much more you’ll be paying online because each of Costco’s warehouse club stores has its own pricing model — it’s not like you’ll pay the same price at any Costco location in the country.

But as a general rule, you should assume you’re paying a good 10% more for online Costco purchases. If you don’t live anywhere near a Costco, what you pay in that regard, you might save on gas. So ordering online — whether for two-day delivery or in general — may not be a poor financial decision so much as a practical one.

Plus, the benefit of two-day delivery is that you get your items quickly. However, not every Costco.com item is available for this program. Items will be flagged as two-day delivery-eligible so you can make an informed decision.

Not a bad deal, depending on the circumstances

All told, you may find that Costco’s two-day delivery service makes sense for you. Even if it costs you a bit more than what you’d pay at the store, if it saves you money on gas and also saves you precious time, it may be worth it.

However, one final thing to know about two-day delivery is that it’s a service that’s only available to Costco members. Non-members are allowed to place regular orders on the site (though there’s a surcharge involved). But if you want your items roughly 48 hours after you order them, then you’ll need to spring for a membership.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Getting ready to file New York state taxes? Follow these important tax laws to reduce your New York tax bill — and avoid penalties. [[{“value”:”

Filing New York state income taxes involves a few state tax laws that are different from the IRS rules at the federal level. New York taxpayers should be prepared so you can save money and avoid stress at tax time.

Let’s look at four big New York state tax laws and requirements that could affect your taxes in 2024.

1. New York tax-filing deadlines (and how to get an extension)

Don’t be late to file your New York taxes. In New York, the penalties for being late to file your state income tax return can be worse than the penalties for late tax payment.

For most people, the New York tax-filing deadline (for 2023 taxes) is April 15, 2024. If you are unable to meet that deadline, you can request a six-month extension, and have until October 15, 2024 to finish and file your New York tax return.

If you need a six-month extension, you must apply in advance, before your New York tax-filing deadline.

2. New York standard deduction

The New York standard deduction for state income taxes is significantly lower than the federal standard deduction. Here’s how the 2023 New York standard deduction compares to the feds, for a few common filing statuses:

For example, if you’re single, your federal standard deduction is $5,850 higher than it is for your New York tax return. Unless you have a lot of other deductions and can itemize on your New York taxes, your New York state taxable income could end up being thousands of dollars higher than your taxable income for federal income taxes.

3. New York itemized deductions

One of the biggest differences in filing state tax returns is that not every state uses the same rules as the IRS. New York offers some state income tax deductions that the IRS no longer allows for federal taxes. And some New York state income tax deductions still use some of the same rules from the federal tax code from the 2017 tax year, before the passage of the Tax Cuts and Jobs Act (TCJA).

For example, here are a few New York itemized tax deductions that are different from the current (2023) federal tax rules:

Home mortgage interest and home equity interest: You can deduct these types of interest on your New York taxes based on the federal rules from tax year 2017.Job expenses and miscellaneous deductions: New York allows you to deduct certain expenses like travel, gifts, and car-related costs that you paid for as part of your job. (The feds no longer allow this deduction.)Medical and dental expenses: The IRS lets you deduct qualifying medical and dental expenses for amounts greater than 7.5% of your federal adjusted gross income (AGI). New York lets you deduct a smaller amount of these healthcare costs — you can only deduct the portion that is larger than 10% of your federal AGI.Casualty and theft losses: The IRS only lets federal taxpayers take a deduction for losses suffered in federally-declared disasters. New York state lets people take itemized deductions for a wider range of casualty and theft losses, even if your unfortunate experience wasn’t part of a major disaster that received a federal declaration.

One of the only major New York itemized tax deductions that follows the same rules as federal taxes for 2023 is gifts to charity. You can deduct charitable contributions on your New York tax return in the same way that you would for your federal return.

Get familiar with which set of rules are required for your itemized deductions before you file your New York tax return.

4. New York tax credits

New York is known for being a relatively “high-tax” state with state income tax as well as local real estate taxes. But the Empire State also offers some helpful New York tax credits that can help you reduce your New York tax bill. Here are a few:

Child and dependent care credit

If you pay for daycare in New York, you might qualify for this state tax credit. The rules are based on whether you qualify for the (similar) federal child and dependent care credit.

Empire State child tax credit

To qualify, your federal adjusted gross income (AGI) must be $110,000 or less (married couples filing jointly), or $75,000 or less for single filers. The amount of the Empire State child tax credit is 33% of the qualifying parent’s federal Child Tax Credit, or $100 per qualifying child — whichever amount is greater.

Green tax credits

New York state offers several tax credits for eco-friendly investments in your home or heating system, such as a Solar Energy System Equipment Credit that’s worth up to $5,000.

School Tax Relief (STAR) credit

The STAR credit helps New York homeowners get property tax relief, as long as their income is under $500,000 and they live in their home as a primary residence. People age 65 and older with incomes of $98,700 or less can get an enhanced STAR credit.

Learn more at the New York Department of Taxation and Finance website.

Bottom line

Before you file your New York taxes, make sure you have a clear understanding of which state-level deductions and tax credits you might be able to get. Even in a “high-tax state,” the best tax software can help you reduce your tax bill.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Looking for affordable auto insurance makes sense, but finding the cheapest policy could backfire if it means there’s not enough coverage. Learn more here. [[{“value”:”

In 2023, the national average annual cost of car insurance was $3,017, according to The Motley Fool Ascent’s research into car insurance costs. Paying around $251 a month out of a bank account is a lot of money, so it’s not surprising that many people want to look into cheap auto insurance.

The problem is, while it’s good to shop around to find affordable coverage, it’s not necessarily a good idea to get cheap coverage. Buying affordable coverage means getting the lowest price possible for the best quality coverage, while just looking for cheap car insurance could mean compromising quality in search of savings.

There are huge downsides to just focusing on price at the expense of quality. Here are the two disadvantages drivers need to know about.

1. The coverage might not be comprehensive enough

One of the biggest mistakes drivers could make when it comes to car insurance is skimping on the coverage they buy to bring premium prices down.

For example, the average cost of a liability-only car insurance policy is $787, while the average cost of a comprehensive policy is $3,296 per year. It would be cheaper to buy liability-only coverage. But this would mean purchasing only bodily injury liability and personal property liability coverage — which would only pay for damage caused to others in the event of an accident.

A driver who doesn’t get a comprehensive policy would be left without insurance coverage for their own vehicle. They’d get no payments from their insurance company if their car was stolen or damaged in an accident not caused by others. So, while they would save on premiums, they could be out tens of thousands of dollars if they had to pay to replace their entire car out of pocket after an accident happened.

2. The insurer may not handle claims as effectively

There’s another potential downside. Some affordable insurers offer good quality customer service, but others do not.

Insurers who keep prices low by hiring a limited number of agents or a limited number of adjusters might not have someone available to provide quick assistance with policy questions.

Other insurers may charge low premiums, but when claims happen, they might deny legitimate claims or lowball their policyholders and offer them far less money than their car is worth or than their repairs actually cost.

Dealing with these problems when coping with the aftermath of a car accident or a car theft could be really annoying — and could leave drivers out a lot more money than if they’d just paid a little extra to get covered by a more reliable insurer.

Drivers should check the complaints database maintained by the National Association of Insurance Commissioners to see how insurers they’re considering stack up. Reading online reviews to find the best auto insurance companies can also be helpful.

While price should be one factor in deciding which company to choose, don’t just opt for cheap auto insurance at the expense of quality or coverage — otherwise this decision could be a major source of regret in the future.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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There are unexpected perks that come with expensive pet food, so long as you read the labels carefully and choose the best values. Keep reading to learn more. [[{“value”:”

I have four dogs that I’ve managed to raise to ripe old ages, ranging from about 15 (she’s a rescue, so we don’t know for sure) to 8 1/2. For my entire life, I’ve been around dogs — all kinds of dogs. So many dogs. And there’s one thing that I learned a very long time ago that continues to play out: there’s a lot of value in expensive pet foods.

You’ll never catch me feeding my animals Kibbles ‘n Bits or Ol’ Roy, because I value high quality nutrition for myself and those around me. I will always buy the “good stuff,” and I’m pretty sure that’s a big part of what’s kept my dogs around so long, despite all odds.

According to a Synchrony Bank Pet LIfetime of Care Study, we spend roughly $434 to $684 per year on food for each of our dogs, or $351 to $584 per year on food for each of our cats. It’s important that you’re getting the best bang for your buck with that kind of outlay.

What my vet taught me about pet food

With four senior dogs, I spend a lot of time at the vet. But in doing so, I also get to talk to staff, which is great for me and great for my dogs. I learn a lot. One day, the topic of pet nutrition came up, as my vet was encouraging me to transition my dogs to senior-specific food.

I asked him which was best. And he gave me a few brands, but the most important lesson was that I needed to be very mindful of the labels on the bag. Over-the-counter dog food (that is, non-prescription foods that are made for specific needs) should have completed and passed feeding trials that meet AAFCO standards.

Many, many dog foods can use a label that says they are “comparable in nutritional adequacy to a product that has been substantiated using AAFCO feeding tests,” but it’s not the same thing. An AAFCO feeding trial evaluates both what goes into the dog (what the food is made of), what hangs around (what nutrients are being used in the body), and what comes back out (what nutrients aren’t being processed).

The differences in pet food pricing

Foods that complete and pass AAFCO feeding trials tend to be more expensive because it’s more expensive to do the hard work of testing. For example, a 16-pound bag of Kibbles ‘n Bits will run you about $0.94 per pound at Chewy.com and a 18-pound bag of Pedigree $0.95 — neither of these foods are put through AAFCO feeding trials. However, Hill’s Science Diet, which comes in at $3.88 per pound for a 15.5-pound bag, and Purina Pro Plan, at $2.92 per pound for a 17-pound bag, are.

As you can see, it’s not cheap to feed brands that go as far as to put their foods through feeding trials, but it’s still important. There’s a lot known about these foods, which can help guide your medical decisions for your dog for a lifetime, as opposed to cheap foods, where it’s all just a lot of guesswork.

Prescription dog foods are another story entirely, but are often covered by pet insurance, so at least you’ve got some help reducing those costs.

The main unexpected benefit of expensive pet food: Consistency

It might sound silly when I say that knowing what goes in — and comes out — of a dog during a feeding trial leads to a great deal more consistency in the understanding of how a food works. It’s food, after all, we all know how it’s supposed to work!

But feeding a dog a kibble isn’t the same as you going to the market and getting a tomato. Foods that are formulated don’t always work as planned, since sometimes nutrients need to be present together to be useful, like vitamin D and calcium. Without enough vitamin D, you can have all the calcium in the world and you’ll only end up with urinary stones and brittle bones.

When you know what your dog is able to absorb from their food, it also helps answer questions. For example, my oldest dog recently developed anemia, but because she eats food that’s gone through AAFCO feeding trials for her age and condition, we know that she’s getting enough iron in her diet.

We can skip right to eliminating other potentials, saving time, and increasing her quality of life by making a rapid diagnosis. It also saves you (and your pet insurance) money by potentially eliminating testing that you know isn’t needed.

Expensive pet food is worth more than it costs

So, is expensive pet food worth it? I think it is. I feel like it’s an excellent value for what I get. It might be more on the surface, but it lasts a long time. Plus, it keeps my active senior dogs well fed, and it even grew a malnourished kitten into a massive, lean cat.

Even if you have insurance on your pets, high quality pet food can ensure they live their best lives.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Synchrony Financial is an advertising partner of The Ascent, a Motley Fool company. Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Many people believe interest rates will decline this year. If you’re one of them, find out whether you should put your money into a CD instead of savings. [[{“value”:”

If you have some money in savings, you may be pretty happy with the interest rate you’re being paid right now. After all, it is entirely possible to find high-yield savings accounts offering more than 5.00% APY.

This is a stark contrast to a few short years ago, when even high-yield accounts offered rates below 1% at the height of COVID-19. It’s even a big change from the pre-pandemic period, when a good account rate typically hovered in the 2.00% range.

But just because you may be impressed with your yields right now doesn’t mean this will continue to be the case forever. In fact, many people think interest rates set by the Federal Reserve will fall this year, and that could bring savings account rates tumbling down, too.

If you are one of the many who believe rates will decline in 2024 and beyond, there may be a better place for your funds than a high-yield savings account. Here’s why CDs are worth considering right now.

Could a CD guarantee you a better rate of return?

The biggest problem with savings accounts is that they typically come with variable rates. While you may be getting 5.00% APY or more from your bank right now, there’s no guarantee the account will keep paying you at this generous rate if market conditions change. In fact, the opposite is true — if rates start to fall, you’ll almost certainly be notified by your bank that savings account yields are falling, too.

If you think rates are going to decline, you may want to consider putting at least some of your savings into a certificate of deposit instead.

CDs share one key feature with savings accounts — they’re safe, because they are typically insured by the FDIC. You don’t put your money at risk by buying a CD. Just like with savings, the money isn’t going to be lost for any reason outside your control.

CDs are different in two important ways, though:

They tend to offer you slightly higher rates than even high-yield savings accounts. That’s a good thing if you’re hoping to earn the most competitive rate.The rate is guaranteed for your CD term, so if you open a 5-year CD, your rate won’t change over the five years and you can lock in your yields at today’s competitive rates. You’ll keep your rate even if market conditions change and interest rates on the whole decline substantially.

These benefits of CDs seem very attractive — especially if you suspect interest rates will go down soon. But these advantages don’t necessarily mean everyone should put money into a CD. It has to be right for you.

Is a CD a good place for your money?

One of the most important things you need to know is that CDs don’t offer the liquidity or easy access to cash that high-yield savings accounts do. Your CD will be for a set term, like three months, two years, or five years.

Your rate is guaranteed for that whole time, which is a big upside for anyone pessimistic about future rates. In fact, as mentioned above, being able to lock in today’s rates can be one of the best reasons to choose a CD.

But in exchange for locking in your competitive rate, you must guarantee the bank you’ll leave your money with them until the term is up. So, if you open a 3-year CD, you can’t take your money out before the end of three years unless you pay an early withdrawal fee. The same is true with any CD term, unless you open a no-penalty CD.

So, is a CD a good place for your savings if you think rates will fall?

Ultimately, the answer depends on what the money is for. If it’s your emergency fund and you might need it at any moment, then the answer is no — a CD isn’t something you should be buying.

But if you need it for something a few months or years down the line and there’s no chance you’ll require the cash sooner, you should think seriously about investing in a CD right now. This could be a better choice than sticking it in a savings account, where you could soon find yourself earning a far lower return if rates go down across the board.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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