Money Management

Personal loan rates are up. Will things change in 2024? Read on to find out. 

More than 5 million borrowers put a personal loan in place during the third quarter of 2023, reports TransUnion. And you may be interested in signing one of these loans, whether to renovate your home, fix up your car, or start a new small business.

But as eager as you may be to put a personal loan in place, you may be better off holding out until the new year. Here’s why.

Borrowing is expensive right now

The Federal Reserve has been working hard since early 2022 to cool inflation and bring living costs down across the board. To that end, the central bank implemented a series of interest rate hikes. And that’s made many forms of borrowing more expensive.

Now, the Fed doesn’t set personal loan rates, or any consumer borrowing rates, for that matter. Rather, it oversees the federal funds rate, which is what banks charge each other for short-term loans. But when the federal funds rate rises, it tends to drive up the cost of consumer borrowing.

Right now, personal loans are very expensive. So are auto loans, mortgages, and just about anything with an interest rate attached to it.

But as inflation continues to cool, the Fed is likely to not only stop raising interest rates, but start cutting rates. Once that happens, borrowing costs could come down broadly.

There’s a good chance the Fed will seek to cut rates at some point in 2024. So if you can hold off on signing a personal loan for the time being, you might benefit by waiting in the form of a lower interest rate on your debt.

Another good reason to wait

Personal loans are unsecured, which means they’re not tied to a specific asset a lender can claim or repossess should you fall behind on your payments, like a car. It takes a good credit score to snag a competitive interest rate on a personal loan.

To be clear, there are lenders that write personal loans for borrowers with fair or poor credit. But in that situation, you’re generally looking at a much higher interest rate on the sum you borrow.

If your credit score is poor — or if it’s okay but not awesome — then waiting on a personal loan gives you an opportunity to work on boosting it. That could set you up for a more affordable interest rate on your loan.

There are a few different steps you can take to boost your credit score. These include:

Paying all incoming bills in a timely mannerKeeping credit card balances as low as possible, and chipping away at existing balancesReviewing your credit report for errors and correcting mistakes that reflect poorly on you as a borrower

We can’t say with certainty what personal loan rates will look like in 2024. But there’s a good chance they’ll be more favorable than what rates look like today. For that reason, holding off on a personal loan could be a smart move — one that ends up saving you quite a bit of money.

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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Many shoppers bought second-hand clothes in 2022. Find out whether eBay, Poshmark, or Mercari is the better place to shop used. 

It’s the time of year when shopping lists grow longer than budgets. There are shoes to buy, clothes to try, and electronics to wrangle. The question is, where to buy them?

Online resale platforms offer discounts on the dollar. You get used goods at a fraction of the price. It’s a whole thing — one in three pieces of clothing bought in 2022 were secondhand, according to ThredUp’s 2023 report.

I’m a frequent user of three of the biggest resale platforms. Below, we’ll compare buying on eBay, Poshmark, and Mercari, including discussing shipping fees and what to buy on each platform.

eBay

eBay is the grandaddy of resale platforms. It’s got everything from shoes to lamps that look like shoes. I buy most of my secondhand items through eBay. However, the user experience can be overwhelming. The eBay app frequently logs me out — I’d recommend using the website.

eBay is better than Poshmark and Mercari for browsing. It has a huge selection of stuff to buy, and you can purchase across hundreds of categories. Shipping fees are reasonable, too.

Shipping works like this: The seller determines the shipping cost based on the size and weight of your purchase. The heavier the item you buy, the more you pay. Sometimes, sellers offer free shipping. However, many sellers roll the shipping fee into the sticker price, so it’s not really free.

Poshmark

Poshmark is one of the largest fashion resellers out there. The Poshmark app is cleaner than eBay’s, though less streamlined than Mercari’s. Like eBay, Poshmark gives you many filters to narrow your search to exactly what you’re looking for.

Poshmark is an excellent place to shop for everything fashion. You can shop for trendy and cheap clothes or set your sights on luxury brands. Poshmark is about level with eBay regarding selection, and it beats Mercari on apparel by a mile.

Shipping works like this: The buyer pays $7.97 for expedited shipping. Poshmark is the only platform where the buyer must pay shipping fees. This may increase the overall price. On the other hand, the buyer is guaranteed faster delivery speeds, typically one to three days.

Mercari

Mercari is one of the best places to buy gently used electronics and household goods. You can find plenty of listings for gaming consoles (though you’ll need to be quick to snag those deals). Other hot-ticket buys include candles, small decor items, and popular shoe brands like Nike.

Mercari is the new kid on the block compared to eBay and Poshmark, which have had longer to build up a sizable collection of things to buy. However, it’s already the cleanest app of the three. The resale platform is built around the Mercari app, which is easy to use.

Shipping works like this: The seller determines how much to charge you and whether to charge you shipping fees. This is identical to how eBay handles shipping fees.

The better place to buy

My favorite platform of the three is eBay. It’s got everything, and shipping is reasonable. Poshmark and Mercari have a cleaner shopping experience, but eBay’s wide selection of items is the most important thing. I can buy whatever and pay less shipping (meaning more money left in my bank account).

However, I’d recommend adding all three to your shopping list this holiday season. You can compare prices across platforms by googling specific items. Sometimes, identical items will be cheaper on competitor platforms. Be sure to factor in shipping fees!

Shopping resale is how I buy holiday gifts without breaking the bank. I purchase items one to two weeks before the holidays. That way, I stay within my budget, even when shopping at the last minute, and my items have plenty of time to arrive.

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Credit reports have more errors than you might think. Take a look at what to do if you find one. 

Credit report errors occur more than you might think. In a 2021 Consumer Reports investigation, 34% of consumers found at least one mistake in their credit report.

To be fair, the most common type of errors involve personal information, such as incorrect addresses, which have no impact on the consumer’s credit score. But 11% of consumers found account information errors, and the most common type was accounts they didn’t recognize. With that in mind, here’s how to determine if there are errors on your credit report, and what to do if you find one.

Read your credit reports (all of them)

The first step in fixing errors on your credit report is to determine if you have any. And the only way to do that is to read through your credit reports and check for inaccurate information.

Notice that the word “reports” is pluralized in that last sentence. You actually have three credit reports, as there are three major credit reporting agencies that each maintain their own credit reporting files — Equifax, Experian, and TransUnion. And while the information should theoretically be about the same on all three, the reality is that it’s not uncommon for incorrect information to appear on one but not the others.

There are plenty of places to get your credit report, and while getting access to your FICO® Scores can come at a price, under no circumstances should you pay to see your credit reports. Under federal law, you are entitled to a free copy of all of your credit reports, and the official place to get them is at AnnualCreditReport.com, which was set up as a collaboration by the credit bureaus themselves. And despite what the web address implies, you can get free copies of your credit reports as frequently as once a week if you wanted (it used to be annual, but the credit bureaus recently decided to permanently extend a COVID-19-era provision that made it more frequent).

The key point is that it’s important to download and read all three reports, and you shouldn’t pay for the privilege.

What to do when you find an error

If you find an error on one or more of your credit reports, you have the right to dispute the mistake. You do this directly with the credit bureaus, and to be perfectly clear, you have to dispute an error with each credit bureau whose report it appears on.

All three credit bureaus have slightly different dispute processes (you can see all of the important links and addresses on the FTC’s website), but here’s the general process:

You’ll write a dispute letter that includes your name and address, a detailed description of the inaccurate information and why it shouldn’t be there.Include copies of documents that back up your story. For example, if an account is being reported as an unpaid collection on a credit card account and you have a receipt showing you paid it, include a copy.Include a copy of your credit report, with the inaccurate information clearly labeled or circled.Send the letter by certified mail and get a return receipt.

Each of the credit bureaus has an online dispute process as well (links are on the FTC site mentioned earlier). And it’s essentially an online equivalent of these same steps.

After you submit your dispute, the credit bureau has 30 days to investigate it and decide whether your claim has merit. During this time, the credit bureau will send your dispute and documentation to the creditor that reported it, and if it confirms that the information shouldn’t be on your credit report, it is required to notify all three credit bureaus to have it removed. And if the creditor doesn’t respond within the 30-day timeframe, it will result in the disputed information being removed.

Only dispute inaccurate information

As a final thought, it’s worth emphasizing that this process should only be used to dispute incorrect information — not to try to get accurate negative information removed.

In fact, many of the companies that promise to “fix your credit now” or some variation of that claim use this exact technique. And they are often successful in the short term, as the creditors often take longer to respond than the limit mentioned earlier. However, the negative information is usually verified eventually (after all, creditors want to get paid), and you’ll be left in the same situation. When it comes to credit repair services, buyer beware.

Our picks for the best credit cards

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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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Love Trader Joe’s? Here are some special items that can enhance any holiday celebration. 

Although we still have Thanksgiving to get through, at this point, a lot of people are eagerly gearing up for Christmas. And that makes sense. While Thanksgiving is lovely in its own right, there’s something about a day of gift-giving, pajama-wearing, and family bonding that really warms the soul.

This year, Trader Joe’s is offering up a host of fun products that could make your Christmas celebration (or the weeks leading up to it) even more spectacular. And thanks to the store’s low prices, you won’t have to run up a huge credit card tab to bring these items home.

1. Nuts About Rosemary Mix

There’s something about the flavor of rosemary that elevates a canister of nuts into a holiday delight. This Trader Joe’s mix features almonds, cashews, pecans, and hazelnuts coated with a rosemary and sea salt blend that has just a hint of sugar. Add these to a fruit and cheese board for a Christmas appetizer, or snack on them in between wrapping gifts. You’ll pay $7.99 for a 12-ounce container.

2. Non-Alcoholic Rosé Sparkling Tea

When you’re celebrating a big holiday, it’s nice to have special beverages that are suitable for everyone at the table. So rather than stick to wine and leave your kids out in the process, pick up a bottle of this non-alcoholic sparkling tea, chill it in the fridge, and give everyone a small pour so you can toast to family time. A 750-milliliter bottle costs just $8.99.

3. Cinnamon Swizzle Sticks

There’s something about cinnamon that screams “holidays.” Trader Joe’s is selling a 6.3-ounce box of Cinnamon Swizzle Sticks for $3.99. Stick them in your tea, coffee, hot chocolate, or warmed eggnog to elevate your beverage of choice. Not only do they add just the right hint of cinnamon and sweetness to any drink, but they look pretty, too.

4. Salted Caramel Hot Cocoa Stirring Spoon with Mini Marshmallows

For many people, hot cocoa is a Christmastime staple. You can raise yours to the next level with these nifty stirring spoons. You get an actual spoon with chocolate and mini marshmallow at the tip so that as you dunk and stir, those sweets melt into your hot chocolate for a truly delightful sip. These spoons can easily double as a stocking stuffer, and at just $0.99 apiece, you can splurge and buy each of your kids a few.

5. Gingerbread Ice Cream

The flavor gingerbread is, for many, reminiscent of Christmas. And now, Trader Joe’s has brought it to ice cream. For just $3.79 for a full pint, you’ll get ice cream that features a sweet ginger base sprinkled with bite-size gingersnap cookie bits. It’s a dessert item you can enjoy on its own or atop a warm brownie or blondie.

The nice thing about Trader Joe’s is that it frequently rotates its grocery lineup to align with the season. But if these items sound appealing to you, don’t wait to visit your local Trader Joe’s. Believe it or not, some of these might be gone by mid-December, so this is one situation where you’ll really want to stock up in advance.

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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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Open enrollment is typically the only time each year that you can choose health insurance. Navigate the maze using these tips. 

Just like Christmas, open enrollment comes but once a year. For the uninitiated, open enrollment is a limited period (typically a few weeks in the fall) when you can enroll in health insurance and make changes to your plan.

If you have employer-sponsored healthcare, your employer will set open enrollment dates; for most companies, it’s a few weeks during the fall. If you get health insurance through the Health Insurance Marketplace, open enrollment is typically Nov. 1 to Jan. 15, though the dates vary by state.

Sitting through an open enrollment presentation or comparing the fine print of health plans certainly aren’t exciting tasks, but taking time to vet your options can result in huge savings. Follow these tips to get the most out of open enrollment.

1. Don’t just look at the monthly premium

You may be tempted to simply pick the plan with the cheapest monthly premiums, but it’s essential to consider the total cost of healthcare. Lower premiums mean higher out-of-pocket costs — and a resulting hit to your checking account. So be sure you know what your health insurance copays are for primary care and specialist visits, as well as for any prescription medications you regularly take.

Factor in the value of any discounts you’ll receive, too. Insurers frequently offer discounts for enrolling in a gym membership, for example. (Fun fact: Insurers don’t do this in hopes of transforming couch potatoes into gym rats, but rather to entice more already-healthy people to enroll in their plans.)

2. Think about the worst-case scenario

You need your health insurance most when something goes wrong. So it’s vital to consider your deductible, which is the amount you’ll pay before your insurance kicks in (though many preventive services are free), as well as any plan’s out-of-pocket maximum costs. Think about how prepared you are to shoulder these expenses should a health disaster strikes.

On that note, a word of caution on health savings accounts (HSAs). HSAs are accounts you use to save for health-related expenses. They have plenty of terrific benefits, including a triple tax advantage: You invest pre-tax money, your money grows tax-free, and health-related distributions are tax-free. Plus unspent money rolls over from year to year.

But to contribute to an HSA, you need a high-deductible health plan (HDHP). Deductibles for HDHPs can run as high as $8,100 for self-only coverage and $16,100 for family coverage in 2024. In fact, a recent Urban Institute report cited the popularity of high-deductible health plans as a factor in America’s staggering medical debt.

HSAs can be a great tool for if you’re relatively healthy and have a decent emergency fund — provided that you’ll actually contribute to your HSA. But if you tend to have high healthcare costs or you’d struggle to pay a relatively minor health bill, consider a plan with higher monthly premiums so you’re better protected. If you opt for an HSA, budget for your monthly contributions on top of your premiums.

3. Consider having a checkup before choosing plans

Has it been a while since you last paid your doc a visit? Consider booking a checkup before you choose a plan.

If you get a clean bill of health, you may be OK with a plan that has high deductibles and lower premiums. But if your doctor identifies any potential issues, choosing the plan with lower deductibles could be the best bet.

4. Don’t assume the whole family should be covered under a single plan

About two-thirds of married couples have the same health insurance, but sticking to a single plan isn’t always the same move. Employers often cover a much larger share of health premiums for employees than they do for spouses and dependents. If you and your spouse both work for companies that offer health insurance, it may be cheaper to each stick with your own company’s plan.

Previously, a loophole in the Affordable Care Act made it difficult for spouses and dependents to qualify for Health Insurance Marketplace subsidies if they were eligible for a family member’s workplace plan. But because of new “family glitch” rules implemented earlier this year by the Biden administration, family members may qualify for subsidies if job-based health care doesn’t meet the affordability standards spelled out in the ACA.

How to compare health plans

If you’re covered by workplace health insurance, comparing plans is relatively easy. You’ll often only have two or three plans to choose from, and your HR department will likely provide a summary of benefits.

It gets a bit more complicated if you’re purchasing coverage on your own or you’re trying to compare your employer’s plan against alternatives. The best way to get started is to go to HealthCare.gov and enter your ZIP code. You’ll then be able to compare premiums, deductibles, and out-of-pocket maximums. You can also look for plans that your doctor accepts and find out whether specific medications are covered.

Virtually no one looks forward to open enrollment. But doing your homework now can help you stay physically and financially healthy.

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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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Some holiday gifts cost money after the fact. Read on to learn more. 

U.S. consumers expect to spend an average of $654 on holiday gifts this year, reports the Conference Board. And if you have kids, you might easily end up with that high a credit card tab — or more, depending on what’s on their wish lists.

There are certain gifts you may be super excited to present to your kids this Christmas. But do be aware that these three in particular are going to come with added costs for your personal finances.

1. A bike

A bike is a great gift to give a child. It promotes exercise and fresh air, after all. But a bike might end up costing you more than expected because you really should purchase safety gear to go along with it. And the cost of a helmet, knee pads, and elbow pads can really add up.

In fact, you might spend $30 on a kids bike helmet alone at Target. And remember, your kids might outgrow their gear faster than they outgrow their bikes. So you might have to replace that gear a few times over.

2. A gaming system

Your kids may be itching for a gaming system this Christmas. And that certainly makes for a nice gift. But remember, a gaming system is pretty useless without actual games to play. And the cost of those can be significant.

The New Super Mario Bros U Deluxe game for a Nintendo Switch, for example, is available at Target right now for $49.99. But chances are, your kids are going to want more than just one game if you buy them a Switch. So you may be looking at an additional $100 or more to actually “complete” that gift.

3. A pet

Imagine the joy on your kids’ faces to get an adorable kitten or puppy for Christmas. But aside from the work and commitment involved, you should know that adopting a pet means taking on a world of expenses.

The ASPCA says it costs about $800 a year to own a cat and about $900 a year to own a medium-sized dog. But that assumes your pet doesn’t run into health issues that increase the cost of your care.

Also, you might spend extra to own a pet if you need a dog-walker because you’re at the office all day, or if you travel a lot and need to hire someone to look after your pet while you’re away. And you should highly consider a pet insurance policy to protect yourself from potentially astronomical costs in the event of an injury or illness, which is another expense to bear year after year.

It’s natural to want to surprise your kids with awesome gifts during the holidays. But some of the gifts you may have in mind could end up coming with added costs — and in the case of a pet, a whole lot of added work for you. Be mindful of that as you make your decisions. You may want to think about sticking to gifts where you make a single purchase and are all set, especially if money is tight.

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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 positions in Target. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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