Money Management

Auto insurance rates have risen dramatically in the past four years. Here’s what you can do to land a more affordable rate. [[{“value”:”

Auto insurance rates increased by 36% between January 2020 and January 2024, according to ABC News. There are several reasons for this, including pandemic-related shortages, skyrocketing vehicle prices, and the increased cost of making car repairs. Ultimately, the reason doesn’t matter much, especially if you’re having trouble paying for coverage. If that’s the case, now is the time to find more affordable coverage. Here’s how.

Play the field

You don’t owe your fidelity to any insurance company. Gone are the days when you buy a policy from a particular insurer and then stick with that company until you die. Shopping around is the only way to find out if you’re overpaying for coverage.

One of the easiest ways to shop around is to compare auto insurance companies online. Many insurers offer rate quotes in a matter of seconds, making it easy to quickly move on to another company if you don’t like what you find.

Consider bundling insurance policies

One thing to keep in mind is the power of bundling policies. If you find a better rate on your auto policy but it’s not enough to blow your hair back, give the company a call to learn how much more you can save by bundling auto insurance with another type of coverage. You may be able to bundle your vehicle coverage with:

Homeowners insuranceRenters insuranceCondo insuranceMotorcycle insuranceBoat insuranceLife insuranceATV insuranceRV insuranceMobile home insuranceSnowmobile insurance

Make sure your coverage is appropriate

Let’s say you have an older, paid-off car that’s not worth much money. If you’re still carrying comprehensive and collision coverage on the vehicle, it may be overkill. Check the car’s book value and weigh that value against the annual cost of carrying full coverage.

Once you know how much your vehicle is worth, speak with an insurance agent about whether liability coverage makes more sense in your case. Liability insurance will pay to repair the other driver’s car if you cause an accident, but it will not pay to repair your vehicle. Switching to a liability policy also means you won’t be covered if your vehicle is stolen, damaged due to a natural disaster, or hit by an animal.

Still, if you’re paying for coverage you don’t need, it may be worth it to learn more about your options.

Revisit your deductible

Your deductible is the amount of money you must pay out of pocket when you make a claim. Let’s say you have a $1,000 deductible. That means if you’re in an accident or your vehicle is damaged in some other way, you’ll have to pay $1,000 toward repair costs. For example, if the cost of making repairs is $5,000, you’ll pay the first $1,000 and the insurance company will pick up the remaining $4,000.

You have a say in how much your deductible will be. Typically, the lower the deductible, the higher your policy premium. The higher the deductible, the lower your premium. Ask your insurance company about how much you can save by ratcheting your deductible up a bit. And if you do raise your deductible, remember to keep that money in an easy-to-access emergency savings account so it will be available if you need it.

Take advantage of all discounts

Almost all insurance companies offer a menu of potential discounts. Here’s a sample of some of the most common discounts available:

Good driver discount (free of accidents and speeding tickets for a set number of years)Defensive driving course discountDriver’s education course discountMilitary discountBundling discountAutopay discountEarly-pay discount (paying your entire premium upfront)Multi-vehicle discountFull-time student with good grades discount

Look into usage-based coverage

Usage-based insurance (UBI) is a type of coverage that tracks your driving behavior to determine your premium price. Using a self-installed plug-in or smartphone app, insurance companies collect data on factors like speed, braking, cornering, phone use, and mileage driven.

According to Insurance Business, safe drivers can save between 10% and 30% on their annual premiums.

Over the past four years, drivers across the board have been hit with higher rates. Fortunately, though, we each have some control over how much we pay for coverage.

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.

“}]] Read More 

Americans have over $1 trillion of credit card debt. But credit cards are still worth using. See how to get the most out of your cards and still pay off debt. [[{“value”:”

America’s total amount of credit card debt recently passed $1 trillion. That’s equal to one thousand billions, and there are approximately 335 million Americans. So that means America now has about $2,985 of credit card debt for every person (adult and child) in the country.

The U.S. economy, in many ways, is stronger than it’s ever been. Unemployment is low, and wages are rising. But many Americans have suffered during the past few years of rising interest rates and high inflation. They’ve depleted their savings accounts and are getting hit hard by the rising prices of necessities.

When interest rates go up, credit card APRs go up, too. In a time of rising interest rates, if you’re struggling to pay credit card bills on time, making only the minimum payments, or carrying a balance, your high-interest debt will get harder to pay off.

But even though credit card debt has hit $1 trillion, there are still some worthwhile advantages to using your credit card — and signs of hope for people who need help getting out of credit card debt.

1. Credit cards give you easy payments and fraud protection

Some people who are struggling with credit card debt might want to cut up all their cards and use the cash stuffing or envelope method to pay bills and buy groceries. If the easiest way for you to avoid overspending is to only spend cash, then feel free to try that method. But many people find that they prefer to use credit cards to make everyday payments at the grocery store, or even to pay monthly bills.

Here are a few reasons why credit cards are a good choice for making payments.

You don’t have to carry cash

If you use the cash stuffing/envelope method, do you really want to carry hundreds of dollars with you every day, and potentially keep thousands of dollars in your home? Cash can be risky. What if someone steals your cash, or you lose it? Do you want to make multiple runs to the ATM each month to get more cash?

Credit cards keep you supplied with convenient purchasing power and protect you from fraud. If someone steals your credit card, you most likely won’t have to pay for any charges they make.

You can pay online

You can’t use cash to pay for grocery delivery apps, ridesharing services, or online purchases. If you buy groceries or other month-to-month necessities online or via subscription, cash won’t work. Credit cards open up a world of convenience to help you get what you need for your everyday life.

You can pay anytime, instantly

Paying only with cash is cumbersome and time-consuming. If you want to use cash to pay a bill (like your cellphone service or home internet plan), you have to go to an office or store location and stand in line. What if you can’t get there during business hours? What if you end up getting your phone cut off, as well as having credit card debt?

Credit cards let you make a payment 24 hours a day, 7 days a week, from anywhere on Earth. No standing in line required! Switching to cash-only is one strategy to pay off credit card debt, but the convenience and security that you lose might not be worth it.

2. Debt payoff apps and budgeting apps can help

There are so many great personal finance apps that make it easier to control your spending and pay off debt. The best budgeting apps can show you exactly where your money is going each month. The best debt payoff apps can help you set aside money and make debt payments automatically — just by analyzing your spending patterns.

Some of the best online banks even have multiple savings “envelopes” built right into your bank account. Check out Ally Bank‘s savings and spending “buckets” and SoFi Bank’s “Vaults;” these features can help you visualize and prioritize every dollar of your monthly paychecks. And you can keep using your credit cards along the way.

3. Can’t pay your bill? Credit card companies will work with you

If you can’t make your credit card payments, it’s time to ask for help. Start by calling the customer service number on the back of your card and tell the company you’re having trouble making payments and you need relief. Some credit card companies will work out a payment plan or lower your interest rate — or both.

4. Consumer credit counseling: Get help with credit card debt

Another way to get help with credit card debt is to contact a credit counseling agency. These are nonprofit organizations that work with credit card companies to restructure your credit card debt with a lower monthly payment that fits your budget. Find a counselor near you with the National Foundation for Credit Counseling.

5. You can get rid of credit card debt by declaring bankruptcy

No one is eager to take this step, and it should be a last resort, but declaring bankruptcy can help you get rid of credit card debt. There are some significant downsides to your credit score and credit history, but over time you can rebuild your credit after bankruptcy.

Bottom line

If you’re feeling overburdened by credit card debt, don’t despair — there is help available for you. Try contacting your credit card company first, and consider getting credit counseling if you need another level of help.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.Ally is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

“}]] Read More 

New to Costco? Here are some items worth checking out. [[{“value”:”

Many people join Costco so they can save money on groceries and household essentials. But sometimes, in the course of saving money, you can also enjoy really tasty, high-quality products. With that in mind, here are a few Costco finds that are worth the price.

1. Rotisserie chicken

Rotisserie chicken is by no means unique to Costco. Many supermarkets offer their own version of it. Rather, it’s the price that’s out of this world.

For just $4.99, you can bring home a warm, juicy chicken that, combined with some pasta or salad, could easily serve as dinner for a family of four or five. It’s a much more financially friendly option than ordering takeout when you’re too tired or busy to cook.

2. Rao’s Marinara Sauce

There’s a world of a difference between jarred pasta sauce and sauce that’s homemade. But let’s face it — you may not have time to stew tomatoes and create your own sauce blend every other week. Heck, you may be someone who barely has time to boil a pot of pasta. So you may have no choice but to fall back on store-bought sauce.

Rao’s, however, takes pasta sauce to a whole other level. And you can generally find two-packs of it on Costco’s shelves.

The cost will vary based on your location. The cost to have two jars delivered same-day in the NYC metro area is just under $14. But same-day delivery at Costco is way more expensive than the price you’ll pay in person.

3. Kirkland muffins

Muffins are a wonderful creation because even though they might seem like they’d fall within the realm of dessert, they’ve somehow become an acceptable breakfast food. Costco sells its giant Kirkland bakery muffins in two packs of six — meaning, you have to buy 12 at a time, total. However, you can mix and match varieties so that you might bring home six corn muffins and six blueberry, or six blueberry and six chocolate.

In the NYC metro area, you’ll pay $11.69 for 12 muffins if you order same-day delivery, but the in-store price is lower. Not only do these muffins offer great value for the price, but they’re delicious. Costco bakes them up daily, so you’re getting a product that’s fluffy and fresh.

4. Kirkland Signature Cutlery

There’s nothing particularly special about plastic cutlery — it’s the sort of thing you might need when you’re hosting a crowd, but you may not use it regularly. Thanks to Costco’s 360-piece cutlery set, though, you never have to worry about running out of plastic spoons, forks, or knives. The assortment features 180 forks, 120 spoons, and 60 knives, specifically.

The online price has you paying $18.49 for the set, or $0.05 per piece. At a regular supermarket, you’re likely to pay more than that per piece (one NYC-area store has plastic forks, for example, for $0.08 per piece). But once again, Costco’s in-store prices are pretty much always cheaper than its online prices, so if you buy this item at the store, you can expect to spend less.

These are just a few items that really stand out at Costco. One thing it pays to do as a member is compare prices at Costco to your local supermarkets. In the case of cutlery, for example, you probably don’t care exactly what plastic fork or spoon you’re putting out for a party or barbecue, so you might as well get the one that’s the least expensive.

At the same time, do know that many of Costco’s food offerings are exceptionally tasty. It pays to look out for free samples for items you aren’t familiar with, since Costco tends to rotate those regularly. That way, you can taste new products before committing to a purchase.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.

“}]] Read More 

There’s one tax credit that can serve as a lifeline for lower-income filers. But there’s work to be done on it. Read on to learn more. [[{“value”:”

People who file taxes are generally advised to try to claim as many credits as they’re eligible for. The nice thing about tax credits is that they serve as a dollar-for-dollar reduction of your tax liability. If you owe the IRS $1,000 but qualify for a $1,000 credit, that liability is wiped out completely.

Some tax credits are non-refundable, so they won’t pay you money if you don’t owe the IRS anything. But certain credits are refundable and will put cash in your bank account even if your tax liability is $0.

The Earned Income Tax Credit is one of them. Called the EITC for short, it’s a credit that’s designed to put money in the pocket of low-income households.

For the 2023 tax year, the EITC has a maximum value of $7,430. But JPMorgan CEO Jamie Dimon thinks the credit can be improved upon. Doing so could help a lot of lower-income households get to a better place financially.

How the tax credit currently works

Eligibility for the EITC hinges on your income combined with the number of qualifying children in your household. You don’t need to have children living with you to claim the EITC, but the more you have, the more likely you are to qualify, and the more value the credit might have.

You can consult this table for EITC eligibility and to see how much the credit might pay you (keeping in mind that these numbers all apply to 2023):

There’s room for improvement

Although the EITC currently offers its fair share of value, JPMorgan CEO Jamie Dimon thinks there’s more work to be done. CNBC quoted Dimon as saying, “This is like a no brainer…and I would pay for it by taxing the wealthy a little bit more.”

Of course, high-income taxpayers might cringe at the notion of paying more. But the reality is that boosting the EITC for a higher maximum value could do a lot of good for people who are currently struggling to do things like put food on the table and keep the lights on.

But while increasing the EITC’s maximum value would no doubt be helpful, another important thing for lawmakers to consider is a way to increase eligibility for the credit. One option is to raise the income limit for tax filers with no children (or to raise the credit’s income limits in general). Another is to simply try to raise more awareness about the credit, as an estimated 1 in 5 eligible EITC recipients don’t end up claiming it.

What’s more, EITC claimants who submit their tax returns early in the season often have to wait to receive their refunds due to strict verification rules associated with the credit. Those rules were put in place due to higher levels of fraud associated with the EITC. But if the IRS were to improve the technology used to administer the credit, it could prevent that delay in refunds for people who clearly need that money.

All told, the EITC could use some sort of overhaul. But until that happens, for now, check your eligibility to see if you qualify. And remember, even if your income is low enough that you’re not required to file a tax return, you should consider submitting one anyway for the express purpose of claiming the EITC and getting a payday out of it.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.

“}]] Read More 

You can get your tax refund quicker with direct deposit — if you don’t botch your banking details. Read on to learn more. [[{“value”:”

As of early March, the average tax refund issued by the IRS was $3,182. That number could easily change as more people file their taxes ahead of the April 15 deadline. But no matter what refund you’re entitled to, you probably want that money to show up as quickly as possible.

Signing up for direct deposit is the best way to expedite your refund. Without direct deposit, the IRS will have to issue you a paper check, which means your funds could take longer to arrive.

But if you’re going to choose to receive your refund via direct deposit, make sure to enter your bank account details carefully on your taxes. If you enter the wrong information, you could end up with a delayed refund and a pretty big headache on your hands.

READ MORE: The Ascent’s Complete Guide to Taxes

A simple mistake that could have serious consequences

We’re all human, so it’s not unheard of to make a mistake when requesting direct deposit. But depending on the nature of your mistake, you could end up delaying your refund by quite a bit.

Let’s go through a few different scenarios.

Perhaps when entering your banking details, you accidentally omit a digit in your bank account or routing number. Usually, when that happens, your submission won’t pass the IRS’s validation check. In that case, the IRS will mail you a check for your refund, which means your money may be a bit delayed, but hopefully not too delayed.

Meanwhile, let’s say you don’t omit a digit, but rather enter an incorrect account or routing number on your direct deposit request. If that information passes the IRS’s validation check, it will send the money to the bank and account in question. If that bank then rejects the deposit and returns it to the IRS, the IRS will mail you a check for your refund once it gets the money back. Once again, we’re not talking about too serious a delay here.

It’s this next scenario that could really cause you a problem. Let’s say you enter the wrong account or routing number, the IRS issues your refund based on the banking details you provided, and the receiving financial institution accepts the deposit. At that point, it will be on you to call the bank in question and try to recoup your funds.

The IRS says that after two weeks, if there’s no resolution, you’ll need to file Form 3911 so the agency can get involved. From there, the IRS will contact the bank on your behalf to try to recover your refund. Banks get up to 90 days, though, to respond to these IRS requests, and the agency says it could take up to 120 days for resolution — if a resolution is even possible.

Check your banking details carefully

No matter the scenario, entering the wrong banking details for direct deposit could cause your refund to get delayed. And if you need that money to catch up on bills — which is the case for 30% of Americans, according to a recent Assurance survey — then having to wait longer could be a problem for you.

So do yourself a favor. Before you submit your direct deposit request, check your bank account and routing number. Then, check them again. And then do that a third time — ideally once you’ve walked away from your screen for a bit to give your eyes a refresh. Spending a few extra seconds checking those details could spare you a world of hassle.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.

“}]] Read More 

Not every repair was worth my time. Read on to find out how to save on car ownership without lifting a wrench. [[{“value”:”

The cost of car repairs has soared over the past few years and rose an astonishing 17% in much of 2023. Inflation is partly to blame, but so is a parts and labor shortage that began during the pandemic and has stubbornly persisted.

It’s been a while since I’ve worked on my car, but I’ve done a handful of repairs myself over the years, saving me thousands of dollars. Here’s how much each of these repairs costs right now, and one way you can save money on your car ownership without breaking out the wrenches.

1. Alternator

When it’s working right, the alternator recharges the car’s battery and helps power some car accessories like power windows. When it’s not working correctly, you get a dead battery. I drove my old car for more than 10 years, and I replaced the alternator at least twice.

I saved hundreds of dollars buying rebuilt alternators and installing them years ago, but the savings are even more drastic now. Kelley Blue Book says the price range for replacing an alternator at a mechanic shop was between $746 and $842 last year.

2. Brake pads

Brake pads are a relatively simple car repair but an essential one. It doesn’t take too much work to get the wheel off the car, your brake caliper off the brake rotor, and your brake pads switched out. There are many great YouTube videos, likely for your car’s make, model, and year, explaining exactly how to do it.

A mechanic has all the right tools and skills to do it even faster, but it’ll cost you. A complete brake pad and rotor replacement costs between $532 to $612.

3. Valve cover gasket

The valve cover gasket helps seal oil in the engine, and in my old car, it had completely worn out, letting oil spew out near the top of the engine. The gasket itself is cheap, usually $40 or less, but it was a moderately difficult car repair for a novice like me and took up much of my weekend.

Getting this one done by the mechanic would have saved me a lot of time, but getting that work done today would set me back $240 to $289.

4. Radiator

I knew my old car’s radiator needed replacing, thanks to the huge puddle of engine coolant left on the pavement. That’s always a fun revelation. I have to admit that while I felt proud to change this out myself, I didn’t enjoy doing the work.

The payoff of replacing this yourself is significant, though. The average cost of radiator replacement is between $1,041 and $1,290.

5. Serpentine belt

One day, I came home from work to find my father-in-law’s car in my driveway, which was unusual. He and his friend had come to my house to replace the serpentine belt on his car, but after cutting it off and realizing they couldn’t get the new one on, they were waiting for me to get home and replace it. Lucky me.

The serpentine belt is a rubber belt that helps power most cars’ alternator, steering pump, air conditioning, and water pump. It’s usually not a difficult job, but it can be if there isn’t enough space between the engine and the car’s frame. Which there wasn’t.

After many hours and some colorful word choices, I got the belt on, and my father-in-law was on his way. This fix isn’t expensive and only costs between $113 to $139 — a price I should have paid (and pitched in for the tow truck) to have a mechanic do it.

How to save money on car ownership without getting your hands dirty

Expensive car repairs are bad enough, but their increase has come at the same time that car insurance prices have spiked more than 20% over the past year.

That makes getting a good deal on your insurance more important than ever. Here’s how to do it:

Improve your credit score

Many car insurance companies consider your credit score when setting your insurance rates. Consider paying down the balance on your credit card to help improve your score. If you can’t do that right now, ask your credit card company to increase your credit limit, which lowers your credit utilization and can improve your score.

Shop around for a different insurance company

Some surveys have shown that 92% of people who switch car insurance providers receive a lower rate. Car insurance companies have their own factors in setting their rates, so getting quotes from different providers is an excellent way to find cheaper car insurance.

Ask about discounts

Insurance companies are pretty good about applying discounts, but sometimes you should follow up to find out if there are discounts you’re missing out on, like bundling your home and auto insurance. You may also want to ask about lesser-known discount options, like usage-based insurance, which tracks your driving and adjusts your rate.

Insurance prices probably won’t decline this year, so now could be an excellent time to shop around for the best car insurance company for you. And while it’s tempting to look for every possible angle to maximize your car ownership savings, take it from me and pay the mechanic to replace the serpentine belt. You’ll save your Saturday and your sanity.

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.

“}]] Read More