Money Management

Some prices are increasing at the Central Florida mega-resort. But some unpopular policies are coming to an end as well. Find out more. 

If you’re a fan of the Walt Disney World resort in Central Florida, there is some good news and some bad news. On one hand, some of the most unpopular policies from the COVID-19 pandemic era are finally coming to an end. But on the other hand, Disney is increasing prices on certain tickets and parking. Here’s a rundown of what you need to know and what it could mean for your next Disney vacation.

Disney’s annual passes are more expensive

Standard Walt Disney World tickets aren’t increasing in price. They still start at $109 for a one-day ticket and can be significantly more during busy times of the year.

However, Disney World’s annual pass prices just increased:

I won’t go into too much detail about the passes themselves here. But they’re listed in order of least restrictive to most restrictive. The Incredi-Pass is available to whoever wants to buy one and has no blackout dates. On the other end of the spectrum, the Pixie Pass is only available to Florida residents to use on weekdays during non-peak times of the year. And Florida residents can buy annual passes with 12-month 0% APR financing.

It’s worth noting that these price changes are coming on the heels of Disney’s announcement that the company will be investing $60 billion in its parks and experiences over the next decade.

The cost of parking has increased

Standard parking at Disney World has increased to $30, a $5 increase from the previous price. That’s something to keep in mind before you whip out your favorite travel credit card to cover incidental vacation costs. This increase brings it in line with other Orlando theme parks, specifically SeaWorld Orlando and Universal Orlando Resort. Annual passholders and guests staying at Disney hotels still get free standard parking.

Park hopping is back

Although it’s not technically a pricing change, there is some good news to report. Disney is officially bringing back all-day park hopping, starting on Jan. 9, 2024. Since the COVID-19 pandemic, park hopping has only been allowed after 2 p.m., a notable change from the prior all-day policy, and one that made buying park-hopping tickets much less attractive.

In addition, the need to make park reservations (another COVID-19 policy) is going away for date-based tickets, but not for annual passes. And the prepaid Disney Dining Plan is coming back for the first time since before the pandemic.

Could these changes make your Disney World trip less expensive?

Annual passholders are certainly going to end up paying a little more with the new changes. But for families that are taking a trip to Disney World, these new policy changes could potentially make it more affordable to enjoy all four theme parks — particularly the changes to the park-hopping and reservations policies.

Let’s say that you want to experience all four Walt Disney World theme parks but you don’t want to have to plan which park to start at each day and where to “hop” to after 2 p.m. So, you buy a standard 4-day ticket to visit one park per day, and the price (as of Oct. 13) is $546.89.

On the other hand, once you can freely show up to any park where you want to start your day and come and go between the parks as you please, it could be more practical to experience everything you want to in all four parks in fewer days. A 3-day park hopper ticket costs $510.94 on the day of this writing, so it could end up saving a family of four about $140 — not to mention you could spend one fewer night in a hotel.

Of course, this is just one hypothetical example, but the point is that these new rule changes make it possible to get more value out of Disney World park hopper tickets than has been available for the past few years.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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 

Buying a house can feel like an impossible dream these days. Here are some practical steps to take to make it a reality. 

Buying a home has reached a level of unaffordability not seen in several decades. Mortgage interest rates are the highest in more than 20 years, and the average cost of a new home has jumped 29% over the past three years.

So that’s the bad news. But the good news is that people buy homes in all sorts of economic situations, and the steps that have helped get people into homes have mostly stayed the same; it may just take more time to get there.

If you’re planning to buy a home by age 30, here are some tried-and-true steps you should follow, according to Chase Bank.

1. Get your credit in good shape

Having good credit is an important factor in getting a mortgage loan and securing the best rate possible.

Repairing bad credit can take some time, so it may be best to get your credit in good shape as soon as possible. Chase Bank says improving your credit score takes at least six months.

You may be able to get a mortgage with bad credit, but improving your score will make it much easier. To get your credit score in the best shape possible, you should pay your bills on time, pay off any past bills that have gone into collections, and don’t apply for any new credit if you’re getting close to closing on your house.

If you have credit card debt, it’s crucial to pay it down. Mortgage lenders will look at your debt-to-income ratio, so the lower your monthly debt payment, the better your chances of getting a mortgage loan and better interest rate.

2. Decide on location for your needs

This may change depending on how long it takes you to save up to buy a home, but having a location in mind is a good way to help set a budget for buying a home.

There’s no set formula for figuring out where to live, but it may help to determine why people are currently considering moving to help you decide whether these things matter to you. For example, here are the top five reasons people consider moving, according to Redfin:

To have more spaceTo be closer to familyFor a lower cost of livingTo get a better deal on a homeTo be in an area that shares their social values

According to the U.S. Census Bureau data, the average American moves about 12 times in their lifetime, so it’s statistically unlikely that you’ll pick a location, buy a house, and stay there forever. Still, it’s worth spending some time figuring out what’s important to you right now and the possible locations to meet those needs.

3. Save up for a down payment

This may be the hard part. The general rule is to try to put 20% down when buying a house, which will allow you to avoid paying private mortgage insurance (PMI), but that may not be possible for everyone.

The good news is that there are several different types of mortgage loans, with varying down payment requirements. Here are a few you want to consider.

Conventional mortgages

According to Rocket Mortgage, these typically require a down payment of 3% or more of the price of your home to get the loan. You also need a credit score of 620 or higher and may have to pay private mortgage insurance if you put down less than 20%.

FHA mortgages

FHA mortgages are backed by the Federal Housing Administration (FHA) and allow you to buy a home with as little as 3.5% down. You’ll need a credit score of at least 580 and have to pay a monthly mortgage insurance premium.

VA mortgages

This type of mortgage is only available to eligible veterans and is guaranteed by the Veterans Administration. The great news for veterans is that there’s no minimum down payment requirement for VA mortgages, and you don’t need to pay for mortgage insurance. But you will most likely have to pay a funding fee, which is a one-time payment that offsets some of the costs associated with the VA guarantee. The amount of the fee depends on how much your down payment is and if you’ve had a VA loan before. You can view current funding fee percentages here.

USDA mortgages

And finally, there are loans backed by the U.S. Department of Agriculture. USDA

mortgages are for home buyers looking for homes in rural areas and generally don’t

have a down payment requirement. USDA loans can sometimes have lower interest

rates than conventional loans, and don’t have PMI requirements, though you may

need to pay a 1% fee upfront.

There’s a lot to consider when planning to buy a home. Buyers often have different needs and financial situations, which makes each home-buying situation unique. No matter where you are in the process, just remember that planning ahead will help put you in the best position possible to find the right home for you.

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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

 Read More 

Autopay can make your life significantly easier, but there are some drawbacks to consider before enrolling your credit cards. See what you should know. 

More than three-fourths of people use autopay for at least one of their bills. The percentage of credit card users who enrolled their accounts in autopay doubled from 2015 to 2020, and there’s no reason to believe it hasn’t increased even more since then. To be fair, there are some good reasons to enroll in autopay. But it isn’t the right move for everyone, and there are potential drawbacks to consider.

In this article, we’ll discuss why autopay can be a smart move, and why credit card users still might want to be cautious about enrolling.

Reasons to set your credit cards to autopay

There are some clear benefits to setting your credit cards to autopay. For one thing, it’s convenient. You won’t have to take time out of your day to log in to your credit card’s payment portal and manually schedule a payment.

You’ll also ensure that you’ll never forget to make your payment on time, assuming there is sufficient money in your checking account to cover the automatic payment. Missed credit card payments can be devastating to your credit score, so this can be a smart way to avoid the possibility entirely.

Could autopay actually cost you money?

As mentioned, enrolling your credit cards in autopay has some pretty big benefits. However, there is a big difference to keep in mind between other bills you might have on autopay, such as your cable or cellphone bills, and credit cards. While most other bills eligible for autopay are fairly consistent from month to month, credit card bills can fluctuate dramatically.

I mentioned earlier that the share of credit cards enrolled in autopay doubled in the five-year period from 2015 through 2020. Well, during that same period, the total fees and interest paid by credit card users increased by 19%, despite interest rates remaining relatively flat during that time.

RELATED: How Does Credit Card Interest Work?

One big problem is that people on autopay tend to pay less than those who pay their bills manually. One former Consumer Financial Protection Bureau (CFPB) economist recently told The Wall Street Journal that most borrowers choose either “minimum payment” or “pay in full” when setting up autopay. And people who choose the latter often change their setting within the first 10 months, while those who choose the minimum payment tend to keep it that way, according to a 2022 National Bureau of Economic Research study. In fact, the study found that borrowers who use autopay end up paying 8% to 17% less of their balances per month compared with people who don’t enroll.

This certainly makes sense — after all, if you spend extra on your credit card and manually log in to your account, you’re more likely to pay more toward the debt since you’re actually seeing it on your screen.

In addition, it’s worth noting that if you generally don’t keep a ton of cushion in your checking account, autopay might not be for you. If you have an automatic payment returned for non-sufficient funds, you could get hit with fees from both the credit card company and your bank account. And having a rejected payment is a quick way to become flagged as a riskier borrower.

The bottom line

Autopay certainly has its convenience factors, but before you enroll, it’s important to make sure you’re paying enough on your credit card that you aren’t accumulating debt. Under no circumstances should you simply choose to autopay the minimum payment and forget about your credit card for a while.

In fact, if you can’t commit to paying your entire balance each month (like you probably do with most other auto-paid bills like utilities), credit card autopay might not be a good fit for you.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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 

Medication costs can be burdensome. Read on to see how a key Amazon program can help. 

We all have expenses that are unavoidable. We need to make our rent or mortgage payments, cover the cost of utilities, and put food on the table.

But it’s certainly reasonable to call medication an unavoidable expense, too. Without the right medication, your quality of life might deteriorate.

Worse yet, depending on the pills you take, you might be putting your health in danger by cutting back or skipping doses. So if financial constraints have been forcing you to skimp on medication, you may want to find ways to make yours more affordable. And one solution could be to turn to Amazon.

Your Prime membership includes savings on medication

The $139 annual Amazon Prime fee you pay might seem like a luxury if money has gotten tight. But in many ways, that fee has the potential to pay for itself.

If that $139 saves you $5 on gas purchases every week by allowing you to have goods delivered to your door instead of having to drive a distance, you’re talking about $260 in savings. So you’re still coming out ahead financially even after paying that membership fee.

Meanwhile, it’s not just apparel and electronics that you can order from Amazon. You can also take advantage of a program called Prime Rx that could help you save big time on medication.

The way it works is simple. First, you search for your medications. Then, you can review prices and compare your options at different pharmacies.

From there, you can order your medication through Amazon Pharmacy and have it shipped to your door with free two-day delivery. Or, you can fill your prescription in person at one of more than 60,000 pharmacies.

Best of all, with Amazon Pharmacy, certain medications start at only $1 per month. And if you’re a Prime member using Prime Rx, you can save up to 80% on the cost of your medications when paying without insurance.

Does Prime Rx make sense for you?

If you have really good health insurance, then the cost of your medication may be lower if you present your insurance card at a local pharmacy. But it pays to use Prime Rx when:

Your insurance co-pay for medications is higher than your cost through Amazon.You’re taking medication that isn’t covered by your insurance.You have a deductible to meet that’s higher than your cost through Amazon.You don’t have health insurance at all.

Remember, Prime Rx isn’t a separate service you have to pay for (other than the cost of the specific medications you choose to buy). Rather, it’s included with your Prime membership. So if you’re already paying that $139 annual fee, it makes sense to look into Prime Rx and see if it helps you lower the cost of obtaining the medications you need to stay healthy.

Of course, there are other steps you can take to lower the cost of your medications, like switching to generics and asking your providers for free samples. But it also pays to look into Prime Rx if you’re reaching the point where you’re considering not taking your meds just to save money.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

 Read More 

There’s no way to know for sure what interest rates will do. But here’s what the latest projections say. 

Your credit card interest rate is a combination of two key factors, in most cases. When you apply for and get approved for a credit card, the issuer will evaluate your creditworthiness and assign you a credit rating, which determines your initial interest rate for purchases.

However, your initial interest rate isn’t set in stone. Virtually all credit cards have variable interest rates that are tied to a benchmark rate. As an example, one of my credit cards has a 23.99% APR on purchases, but it is tied to the prime rate. The prime rate is based on the federal funds rate, which is the benchmark interest rate set by the Federal Reserve. When you hear that the Fed “raised rates,” the federal funds rate is what that usually refers to.

Here’s what it means for you. If the Fed raises or lowers interest rates and your credit card has a variable interest rate (most do), your credit card interest rate will rise or fall by the same amount. With my 23.99% APR on one of my credit cards, if the Fed were to raise the federal funds rate by a quarter of a percentage point, my interest rate would become 24.24%.

In a nutshell, your credit card interest rate depends on your credit card issuer’s assessment of your creditworthiness. But it also moves up and down based on economic forces outside of your (and your credit card issuer’s) control. So, what will happen to credit card rates in 2024?

What is the Fed expected to do in 2024?

Four times a year, Federal Reserve board members and bank presidents release a summary of their economic projections.

According to the latest (September 2023) Summary of Economic Projections, the policymakers see the federal funds rate falling to 5.1% by the end of 2024 and to 3.9% by the end of 2025. Currently, the federal funds rate is set to a target range of 5.25% and 5.50%, so this implies that rates are expected to fall. And this would mean that your credit card interest rates would be lower in 2024 than they are now.

However, keep in mind that not even these expert policymakers have a crystal ball that predicts the future, and the actual outcome can be very different. In fact, as of the June projections, the members were calling for rates to fall to 4.6% by the end of 2024 and have since tightened their expectations.

Will your credit card interest rate be higher or lower in 2024?

To be clear, there is no way to predict with accuracy what will happen with inflation or the economy in general, and therefore there’s no way to know for sure what interest rate moves the Fed will make. If inflation proves to be harder than expected to control, we could certainly see further interest rate hikes later this year and into 2024. But if the economy plunges into recession or inflation gets close to the Fed’s 2% target, rates could fall even faster than the latest projections.

Regardless of what happens with your credit card interest rate in 2024, it’s fair to assume that carrying a credit card balance will still be an expensive way to pay for purchases. If you have credit card debt, it could be a smart idea to check out the 0% intro APR balance transfer offers that are still abundant despite rising rates. You can also look into a personal loan to consolidate your credit card debt and potentially lower your interest rate.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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